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Initial Environmental Examination Supporting Electricity Supply Reliability Improvement Project (RRP SRI 49216) Initial Environmental Examination Document Stage: Draft Project Number: P49216-002 (SRI) June 2016 SRI: Supporting Electricity Supply Reliability Improvement Project Prepared by Ceylon Electricity Board, Ministry of Power and Renewable Energy, and National Water Supply & Drainage Board, Democratic Socialist Republic of Sri Lanka for the Asian Development Bank. This is an updated version of the draft originally posted in March 2016 available on http://www.adb.org/projects/documents/sri-supporting-electricity-supply-reliability- improvement-mar-2016-iee CURRENCY EQUIVALENTS (as of 10 June 2016) Currency unit – Sri Lanka rupee/s (SLRe/SLRs) SLRe1.00 = $0.00687 $1.00 = SLRs145.65 ABBREVIATIONS ADB – Asian Development Bank CEA – Central Environment Authority, Government of Sri Lanka CEB – Ceylon Electricity Board DC or D/C – Double Circuit DPR – Detailed Project Report DSD – Divisional Secretarial Divisions EA – Executing Agency EMoP – Environmental Monitoring Plan EMP – Environmental Management Plan EHV – Extra High Voltage GHG – Green House Gas GND – Gram Niladhari Divisions GoSL – Government of Sri Lanka GRC – Grievance Redress Committee GRM – Grievance Redress Mechanism IA – Implementing Agency IEE – Initial Environmental Examination LILO – Line-in-Line-out MPRE – Ministry of Power and Renewable Energy Government of Sri Lanka PAA – Project Approving Authority NARA – National Aquatic Resources Research & Development Agency PCB – Poly Chlorinated Biphenyl NEA – National Environmental Act NWSDB – National Water Supply & Drainage Board PIU – Project Implementing Unit PMU – Project Management Unit PRDA – Provincial Road Development Authority PUCSL – Public Utility Commission of Sri Lanka REA – Rapid Environment Assessment ROW – Right of Way RP – Resettlement Plan SC or S/C – Single Circuit SF – Sulphur Hexafluoride SPS – Safeguard Policy Statement ii WEIGHTS AND MEASURES ha (hectare) – unit of area km (kilometer) – 1,000 meters kV – kilovolt (1,000 volts) kW – kilowatt (1,000 watts) MW – Megawatt NOTES (i) In this report, "$" refers to US dollars. (ii) “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 17 E. Component 4: Reactive Power Management in the Transmission System 18 F. Location 19 G. Size and the Magnitude of the Operation 30 H. Implementation Plan 35 III. DESCRIPTION OF ENVIRONMENT (BASELINE DATA) 37 A. Jaffna District 37 B. Trincomalee District 38 C. Puttlam District 40 D. Kurunegala District 42 E. Kegalle District 45 F. Ratnapura District 48 G. Galle District 50 H. Ampara District 55 I. Matara District 58 J. Monaragala District 61 K. Badulla District 64 IV. ANTICIPATED IMPACTS AND MITIGATION MEASURES 70 A. Environment Impacts and Mitigation Measures 70 B. Route Selection 70 C. Removal of Trees 71 D. Environmental Management Plan 77 V. ANALYSIS OF ALTERNATIVES 81 A. CEB’S Approach for Route Selection 81 B. Alternatives for Line Alignment 81 VI. INFORMATION DISCLOSURE, Consultation, and participation 84 A. Consultation Findings 86 VII. GRIEVANCE REDRESS MECHANISM 92 A. Awareness of Stakeholders 92 B. Grievance Redress Mechanism and PUCSL 92 VIII. ENVIRONMENTAL MANAGEMENT PLAN 96 A. Institutional Arrangements 96 B. Monitoring of Environmental Management Plan (EMP) 97 C. Environmental Management Plan Budget Costs 99 D. Critical Environmental Review Criteria 100 IX. CONCLUSION AND RECOMMENDATIONS 102 ANNEXES 1. Applicable Environmental Policy and Procedures 104 2. Route Analysis for 33 kV lines 115 3. Locational Analysis for 33 kV Gantry based switching stations 120 5. Environment Management Plan (EMP) 155 6. Environmental Parameters and Periodicity for Environmental Monitoring Plan 164 7. Granting of Necessary Way leaves for Electricity Networks in Sri Lanka - Guidelines for Licensees, Divisional Secretaries and Landowners and/or Occupiers 168 8. Environment Monitoring Report 172 LIST OF FIGURES Figure 1: Map of Sri Lanka showing details of Subprojects in all Components 21 Figure 2: Mallawapitiya GS to Rathmalgoda 33 kV line- 16 km 22 Figure 3: Maho GS - Ma-Eliya 33 kV line (Location on topographic sheet) 24 km 23 Figure 4: Wimalasurendra GS to Maskeliya gantry (Location on topographic sheet) 10 km 24 Figure 5: Kegalle GS to Gevilipitiya 33 kV line- 11 km 25 Figure 6: Mahiyanana GS to Bibile 33 kV line - 30 km 26 Figure 7: Monaragala GS to Wellawaya 33 kV line- 34 km 27 Figure 8: Elpitiya- Mattaka 33 kV line- 11 km 28 Figure 9: Morawaka- Warukandeniya 33 kV line -18 km 29 Figure 10: Responsibility Hierarchy of PUCSL 93 Figure 11: Flow chart showing Grievance Redress Mechanism 95 Figure 12: Institutional Structures and Responsibility for Environmental Management Plan at CEB 97 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. 19 Table 10: Ownership Details Gantry Based Switching Stations 20 Table 11: Proposed RE Schemes in each CEB Distribution Division 35 Table 12: Proposed LV Extensions 35 Table 13: Overall Project Implementation Schedule 36 Table 14: Reserves in Jaffna District 38 Table 15: Name, Category and the Extent of Forest Reserves in Trincomalee District 40 Table 16: Name, Category and the Extent of Forest Reserves in Puttalam District 42 Table 17: Reserves in Kurunegala District 44 Table 18: Reserves in Kegalle District 47 Table 19: Reserves in Ratnapura District 49 Table 20: Reserves in Matara District 59 Table 21: Reserves in Badulla District 65 Table 22: Land Use Pattern in Badulla District 65 Table 23: Total Number of Trees to be felled for distribution subprojects 72 Table 24: Distance from WLS and National Parks for all subprojects 73 Table 25: Approximate distance of subprojects from sensitive receptors 73 Table 26: Environmental Impact Matrix 78 Table 27: Summary of final alternative taken for Project Consideration 82 Table 28: Public Consultations 84 Table 29: Constitution of Grievance Redress Committee 93 Table 30: Summary of Estimated Costs including for Environmental Monitoring Plan (million USD) 99 EXECUTIVE SUMMARY 1. Asian Development Bank (ADB) is proposing to extend USD 115 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. 2. The components of the Supporting Electricity Supply Reliability Improvement Project will consist of four components. Component 1: Renewable energy systems 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 micro-grid system Component 2: Reliability improvement of the medium voltage network Component 3: Rural electrification and distribution performance monitoring improvement Component 4: Reactive power management in the transmission system 3. 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. 4. Productive energy use for small isolated islands and rural communities will promote and strengthen energy-based livelihoods through access to electrical appliances and technologies,
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