Democratic Socialist Republic of Sri Lanka Ministry of Mahaweli Development and Environment

Mahaweli Water Security Investment Program Program Management, Design and Supervision Consultant

INCEPTION REPORT – FINAL

March 2016 Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT

© Joint Venture Lahmeyer International GmbH – GeoConsult ZT GmbH, 2016. The information contained in this document is solely for the use of the Client identified on the cover sheet for the purpose for which it has been prepared. The Joint Venture undertakes neither any duty to, nor accepts any responsibility towards, any third party who may rely upon this document. All rights reserved. No section or element of this document may be removed from this document, reproduced, electronically stored or transmitted in any form without written permission of the Joint Venture.

Program Management, Design and Supervision Consultant Page i Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT

INCEPTION REPORT - FINAL

Prepared for:

Ministry of Mahaweli Development and Environment Program Management Unit No. 493 T.B. Jayah Mawatha Colombo 10 Sri Lanka

Prepared by:

Program Management, Design and Supervision Consultant Joint Venture Lahmeyer International GmbH – GeoConsult ZT GmbH in Association with NIRAS (Denmark), Engineering Consultants Ltd. (Sri Lanka), and Infotechs IDEAS (Pvt.) (Ltd.) (Sri Lanka) No. 493 T.B. Jayah Mawatha Colombo 10 Sri Lanka

Lahmeyer International Main Office Friedberger Str. 173 61118 Bad Vilbel Germany

Distribution Register:

Distribution List: Date of Issue Number of Copies MMDE March 2016 4 ADB March 2016 2 LI March 2016 3 GC March 2016 1 InfoTechs March 2016 1 ECL March 2016 1 NIRAS March 2016 1

Revision History:

Revision Date Author Department Checked by Approved by Description

1 6 Mar 2016 MRC/BJF GW2 MRC BJF

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ABBREVIATIONS

ADB Asian Development Bank BoQ Bill of Quantities CAPC Cabinet Appointed Procurement Committee CEA Central Environmental Authority DPC Department Procurement Committee EIA Environmental Impact Assessment EOI Expression of Interest FAM Facility Administration Manual GBL Geotechnical Baseline Report GOSL Government of Sri Lanka IA Implementing Agency ICTAD Institute for Construction Training and Development ID Irrigation Department ISEWP Improving system efficiencies and water productivity km Kilometre KMTC Kalu Ganga-Moragahakanda Transfer Canal m³/s Cubic metres per second masl Metres above mean sea level MASL Mahaweli Authority of Sri Lanka MCB Mahaweli Consultancy Bureau MCM Million m3 MDP Mahaweli Development Program MIWRM Ministry of Irrigation and Water Resources Management MLBCR Minipe Left Bank Canal Rehabilitation MFF Multitranche financing facility MFP Ministry of Finance and Planning MMDE Ministry of Mahaweli Development and Environment MPC Ministry Procurement Committee MPP Master Procurement Plan MRB Mahaweli River Basin NCPCP North Central Province Canal Project NPA National Procurement Agency NWPC North Western Province Canal PD-MWSIP Program Director Mahaweli Water Security Investment Program PD-UEC Project Director –Upper Elahera Canal PMDSC Program Management, Design and Supervision Consultant PPTA Project Preparatory Technical Assistance PSC Program Steering Committee RF Resettlement Framework RIP Resettlement Implementation Plan RPC Regional Procurement Committee SBD Standard Bid Documents SIWRM Strengthening Integrated water Resources Management ToR Terms of Reference UEC Upper Elahera Canal

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Table of Contents

1 EXECUTIVE SUMMARY ...... 1

1.1 INTRODUCTION ...... 1 1.2 IMPLEMENTATION ARRANGEMENTS ...... 2 1.3 PROGRESS TO DATE ...... 3 1.4 DETAILED WORKPLAN, ACTIVITIES, STAFFING AND TASKS...... 4 1.5 PROGRAM IMPLEMENTATION PLAN ...... 5 1.6 STRUCTURE OF THE REPORT...... 7 2 INTRODUCTION...... 8

2.1 MAHAWELI WATER SECURITY INVESTMENT PROGRAM...... 8 2.2 BACKGROUND TO WATER RESOURCES IN SRI LANKA ...... 10 2.2.1 Mahaweli Ganga ...... 10 2.2.2 Mahaweli Development Program prior to the MWSIP...... 11 2.3 PREVIOUS STUDIES, SURVEYS AND INVESTIGATIONS ...... 12 3 IMPLEMENTATION ARRANGEMENTS ...... 16

3.1 INVESTMENT PROGRAM...... 16 3.1.1 Multi-Tranche Financing Facility...... 16 3.1.2 Implementation Schedule ...... 16 3.1.3 Program Outputs ...... 17 3.2 ORGANIZATIONAL SETUP ...... 21 3.2.1 Implementation Agencies...... 21 3.3 PROGRAM MANAGEMENT, DESIGN AND SUPERVISION CONSULTANT ...... 22 3.3.1 Mobilization...... 22 3.3.2 Scope of Services...... 22 3.4 SAFEGUARDS ...... 23 3.4.1 Environmental...... 23 3.4.2 Resettlement...... 25 3.5 POVERTY AND SOCIAL...... 25 4 PROGRESS TO DATE ...... 26

4.1 PMDSC OFFICE AND LOGISTICS...... 26 4.2 MEETINGS ...... 26 4.3 TASK 1 – PROGRAM MANAGEMENT ...... 26 4.3.1 Program Inception ...... 26 4.3.2 Reconnaissance...... 27 4.3.3 Continuous GIS Update...... 27 4.3.4 Terms of Reference for Improving System Efficiency and Water Productivity (ISEWP) ...... 27 4.3.5 Program Fund Disbursement Handbook...... 27 4.4 TASK 2 – DESIGN REVIEW, DETAILED DESIGNS AND PREPARING CONTRACT DOCUMENTS...... 27 4.4.1 Preparation of Tenders for Additional Surveys and Investigations...... 27 4.4.2 Designs...... 29 4.4.3 Tunnel Optimisation ...... 29 4.4.4 Commencement of Tender Design Review ...... 31 4.5 TASK 3 – CONTRACT MANAGEMENT, CONSTRUCTION SUPERVISION, COMMISSIONING AND OPERATION ...... 34 4.5.1 Tenders Floated ...... 34 4.5.2 Imminent Tenders...... 34 4.6 TASK 4 - CAPACITY DEVELOPMENT AND TRAINING IMPLEMENTATION...... 34 4.7 TASK 5 – COMMUNICATIONS...... 34

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4.8 TASK 6 – PREPARING A STRATEGIC ENVIRONMENT ASSESSMENT (SEA) ...... 34 4.9 TASK 7 - PREPARATION OF PHASE 2...... 35 4.9.1 Route Selection ...... 35 4.9.2 Modelling...... 36 5 DETAILED WORKPLAN, ACTIVITIES, STAFFING AND TASKS ...... 38

5.1 CURRENT STATUS ...... 38 5.2 PPMES AND MIS...... 38 5.3 UEC TUNNEL 3 EARLIER CONSTRUCTION START (TASKS 2 AND 3) ...... 39 5.3.1 Rationales ...... 39 5.3.2 Actions to be taken including Additional Investigations...... 39 5.3.3 Potential for an Early Start to Construction...... 40 5.4 UEC-ICB-3 (6+226 TO 17+900KM) IN TRANCHE 2...... 40 5.4.1 Rationales ...... 40 5.4.2 Implications for Resource Allocations...... 40 5.5 KMTC ADVANCEMENT (TASKS 2 AND 3)...... 40 5.5.1 Rationales ...... 40 5.5.2 Actions to be taken including Additional Investigations...... 41 5.5.3 Implications for Resource Allocation ...... 41 5.6 NATIONAL VS. INTERNATIONAL DESIGN STANDARDS (TASKS 2 AND 3) ...... 41 5.6.1 Dam Safety (ICOLD) ...... 41 5.6.2 Possible Scope Changes Relating to Existing Structures (Tasks 2 and 3) ...... 43 5.6.3 Kongetiya Level Crossing ...... 44 5.6.4 Implications for Resource Allocation ...... 45 5.7 CAPACITY DEVELOPMENT STRATEGY (TASK 4)...... 46 5.7.1 Approach ...... 46 5.7.2 Training Needs Assessment and formulation of Training and Capacity Development Program 48 5.7.3 Implementing the Training Program ...... 48 5.7.4 Preliminary Review of Water Resource Management on Sri Lanka ...... 49 5.7.5 Institutional and Staff long-term Development Plans for MMDE...... 49 5.7.6 Finalizing ToR for the SIWRM Consultancy...... 50 5.7.7 Anticipated Deliverables under Task 4...... 50 5.8 COMMUNICATIONS STRATEGY (TASK 5)...... 50 5.8.1 Approach to Stakeholder Communications ...... 50 5.8.2 Priorities and Next Steps for Implementation of the Strategic Communications Plan ...... 52 5.9 SEA STRATEGY (TASK 6)...... 52 5.10 ACCELERATION OF ROUTE SELECTION FOR PHASE 2 (TASK 7)...... 53 5.10.1 Justification for Acceleration of the Route Selection ...... 53 5.10.2 Strategy ...... 54 5.10.3 Technical Issues ...... 54 5.10.4 Actions to be Taken (Investigations, Surveys, Modelling, Stakeholder Consultations)...... 55 5.11 MODELLING ...... 57 5.11.1 Baseline Assessment...... 60 5.11.2 Model Development ...... 61 5.11.3 Model Extension ...... 64 5.11.4 Substantiation of the Approach...... 64 5.11.5 Dam Break Modelling ...... 65 5.12 RESETTLEMENT ...... 66 5.12.1 Priority Actions for Tranche 1 ...... 66 5.12.2 MLBCRP...... 67 5.12.3 NWPCP...... 67 5.12.4 For Preparation of Tranche 2 and 3...... 68

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6 PROGRAM IMPLEMENTATION PLAN ...... 69

6.1 GOVERNMENT ACTIONS ...... 69 6.1.1 PMU/PIU Staff Recruitment...... 69 6.1.2 Human-Elephant Conflict...... 69 6.1.3 MMDE and ADB Approvals ...... 69 6.2 PROCUREMENT ISSUES ...... 72 6.3 MODELLING ...... 72 6.4 REVISED STAFFING SCHEDULE ...... 72 6.4.1 Staff Replacements...... 72 6.4.2 Staff Inputs from Home Office ...... 73 6.4.3 Re-scheduling of Supervision Staffing...... 73 6.4.4 Proposed Additional Inputs...... 73 6.5 FINANCIAL ISSUES...... 75 6.5.1 Proposed Staging of Payments for LS Deliverables...... 75 6.5.2 Provisional Sums...... 75 6.5.3 New Tax Rates ...... 76 6.5.4 PMDSC Offices ...... 76 ANNEX A IMPLEMENTATION SCHEDULE...... 77 ANNEX B STAFF MOBILISATION...... 80 ANNEX C MINUTES OF MEETINGS ...... 81 ANNEX D PMDSC DETAILED WORKPLAN...... 96 ANNEX E DATA REQUIREMENTS FOR GEOTECHNICAL DESIGNS ...... 102 ANNEX F DATA REQUIREMENTS FOR MODELLING ...... 104 ANNEX G UPDATED STAFFING SCHEDULE...... 106 ANNEX H TERMS OF REFERENCE...... 109 ANNEX I LUMP SUM PAYMENT SCHEDULE...... 112 ANNEX J PROCUREMENT PLAN...... 113

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List of Figures

Figure 1: Layout Map of the Mahaweli Water Security Investment Program...... 9 Figure 2: Mahaweli Declared Areas...... 13 Figure 3: Kalu Ganga – Moragahakanda Transfer Canal and Upper Elahera Canal Project ...... 18 Figure 4: North West Province Canal Project ...... 19 Figure 5: Minipe Left Bank Canal Rehabilitation Project...... 20 Figure 6: Organizational Chart of the MWSIP...... 21 Figure 7: Typical Horseshoe Tunnel Profile ...... 30 Figure 8: The Hierarchy of Capacity Needs...... 47 Figure 9: MCA Schedule...... 56 Figure 10: Proposed Approach to Model Development for the Mahaweli System ...... 59

List of Tables

Table 1: Feasibility Studies done for the NCPCP (2012-2013)...... 14 Table 2: Status of Additional Geotechnical Investigations (12 February 2016)...... 28 Table 3: Initial Meetings with Authorities ...... 36 Table 4: PPMES Arrangement for the MWSIP...... 39 Table 5: Preliminary Classification of Embankment Dams in MWSIP ...... 43 Table 6: MCA Effects Table Structure...... 55 Table 7: Canal Lengths in the Mahaweli System ...... 58 Table 8: CEA and ADB Approval Status (12 February 2016) ...... 70 Table 9: Status of Bid Document Preparation and Review by ADB and PMU ...... 71

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1 EXECUTIVE SUMMARY

1.1 Introduction

1. The Mahaweli Water Security Investment Program (MWSIP) is the final stage of the Mahaweli Development Plan (MDP), which has been pivotal in meeting national development goals. The North Central Province Canal Project (NCPCP) is an outstanding investment component of MDP: Phase 1 of NCPCP will transfer water from the Mahaweli River Basin to existing reservoirs in the Central, North Central and North Western Provinces, and Phase 2 will extend the transfer of water from the North Central Province reservoirs to the Northern Province.

2. The MWSIP will implement Phase 1 of the NCPCP to increase agricultural production and improve drinking water supplies to households within the North West and North Central Provinces. Key elements of the program of Phase 1 include the Upper Elahera Canal Project (UECP), the North West Province Canal Project (NWPCP), and the Minipe Left Bank Canal Rehabilitation Project (MLBCRP), located in the downstream reach of the Mahaweli Ganga (River). The MWSIP will also address other key sector priorities through improving irrigation system efficiencies and water productivity and through strengthening water management institutions.

3. Phase 2 will extend the transfer of water to the North Central and North Provinces, with the extension of the Phase 1 transfer canals and tunnels, construction of new reservoirs and hydropower stations and the transfer of additional water to support drinking water supply and irrigated agriculture. On completion of the NCPCP, the total area fully or partially supplied from the Mahaweli Ganga will rise from 146,000 ha to 233,000 ha, municipal and domestic water supplies in the north of the country will have been enhanced by some 100 MCM per year, and the installed capacity within the Mahaweli Development area will have increased by 30 MW.

4. Sri Lanka’s water resources are not well distributed in time and space between the ‘wet zone’ of the central and south west districts (25% of the area and 70% of the water resource) and the ‘dry zone’ of the north and east (30% of the water but more than 80% of the water demand). Annual per capita endowment of water (ACE) in the north is predicted to decline to water scarcity levels (less than 1,000 m3) by 2025. With regard to energy production, 40% of the country’s installed capacity is in hydropower, mostly within the ‘wet zone’, and is used primarily for meeting peak daily demands.

5. The Mahaweli Ganga is the largest river basin (of 103) in Sri Lanka, with a catchment area of approximately 10,300 km2 and annual average flow volume of 5,474 MCM (more than 10% of national annual renewable water). The headwaters originate in the highlands of the wet zone, and the river flows to the northeast. It represents a large and strategically important water resource, which is being developed to meet the countries energy, water and food needs. There are estimated to be more than 30,000 tanks nationally and government has historically promoted water storage and water resources development programs. However, climate change is likely to cause increased demand and a decline in reliability of water sources, which could further exacerbate shortages and reliability of water sources within the northern dry zone and increase vulnerability of communities to food shortages.

6. The MDP, initiated in the early 1960s with the objective of developing the water and land resources of Mahaweli Basin and the dry zone areas of the northern provinces, was ambitious and included multiple storage dams, hydropower stations, transfer canals and irrigation systems. To-date completed works include the construction of the cascade of storage dams and power-stations on the Mahaweli Ganga, dams constructed on the Amban Ganga (tributary of the Mahaweli Ganga), and construction of two diversion tunnels. A further four reservoirs and power stations are under

Program Management, Design and Supervision Consultant Page 1 Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT construction, two of which would also be on one of the possible routes for water transfers from Mahaweli Ganga.

7. Development so far has largely been focused within the Mahaweli Basin and the development of the land and water resources of the northern provinces remains to be completed, largely through water transfers. This is the objective of the final stage of the MDP and aims to complete fulfilment of the plan’s goals. Previous studies, surveys and investigations were undertaken to fulfil the aims of the NCPCP, but work was suspended in the late 1970s due limitations in financial and other resources. Subsequently, several studies were conducted to update the planning for the project but these could not be implemented due to financial constraints and civil disturbances. The NCPCP has now been prioritised to address urgent socio-economic needs in the country.

8. During April to December 2014, the Asian Development Bank (ADB) supported a Project Preparatory Technical Assistance (PPTA) to conduct due diligence of Phase 1 of the NCPCP and prepare the investment program documents, comprising assessment of technical, economic, financial, governance, poverty, social, and safeguards issues. The activities under this PPTA led to the preparation of a program proposal in ADB’s format for financing an investment program. During the PPTA engineering designs and draft bid documents were prepared for three advance contract packages, feasibility-level designs were prepared for other civil works packages and a large program of geotechnical investigations was completed. In 2015 the investment program was approved by ADB and the government. 1.2 Implementation Arrangements

9. The cost of the MWSIP is estimated at $675 million and will use the ADB’s multi-tranche financing facility (MFF) modality, loaned to the government in three tranches. Tranche 1 was approved in 2015. Approval for the second tranche is scheduled for 2016 and approval for the third tranche is scheduled in 2018. Construction will be through a combination of international and national competitive bidding. Phase 2 of the Program is not financed under the current investment program; however, feasibility work for the second phase forms part of the work to be carried out by the Program Management, Design and Supervision Consultant (PMDSC), who were contracted in 2015 and mobilised in December of last year.

10. Implementation of the MFF is tentatively scheduled from 2015 to 2024 and will include 20 major works packages and three main consultancy packages and various individual consultant assignments, as well as training and capacity development of government officers and departments. Evaluation of the first tendered package is currently in progress. Program outputs include nearly 200 km of canals and tunnels, two large main earthfill dams and the heightening of an existing anicut together with the rehabilitation of the 74km of canals the irrigated areas that it will serve.

11. The executing agency (EA) for the MWSIP is the Ministry of Mahaweli Development and Environment (MMDE) under which a Program Management Unit (PMU) and three Project Implementation Units (PIUs) have been established to implement the program. A Program Steering Committee (PSC) has been established to provide overall coordination. An independent review panel (IRP) is being recruited to review outputs from the PMDSC and other consultants, and provide advice to the PMU and ADB on technical and contractual matters. At the completion of the investment program, the investments will be managed by either the ID or MASL.

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12. The Joint Venture of Lahmeyer International GmbH – GeoConsult ZT GmbH, in association with Infotech IDEAS (Sri Lanka), Engineering Consultants (Pvt) Ltd (Sri Lanka), and NIRAS (Denmark) was appointed the PMDSC in November 2015. They commenced mobilising to Colombo on 1 December 2015. The PMDSC will assist the PMU over a period of five years with designs, procurement of civil construction contracts and consulting services, supervision of construction works and preparation of Phase 2 investments. The Terms of References (ToR) of PMDSC include 7 major tasks, which are described in the following sections.

13. All three investment projects have been categorized for safeguards and assessments prepared prior to ADB Board approval and safeguard documents were prepared during the PPTA in respect of environmental and assessments and resettlement issues. Environmental Impact Assessments (EIAs) and an Initial Environmental Examination (IEE) have been completed and some approvals have been given. Environmental Management Plans (EMPs) have been prepared for each EIA and IEE. An Environmental Assessment Review Framework (EARF) was prepared by the PPTA to guide the formulation of safeguards documents for future tranches according to the government’s and ADB’s policy requirements.

14. Involuntary resettlement will be required for parts of the program and resettlement implementation plans (RIPs) were prepared for each project to ensure that there are adequate social safeguards for affected persons. The PMU/PIU will monitor the RIPs implementation to determine whether resettlement goals have been achieved. 1.3 Progress to Date

15. During the ADB inception mission, the PMDSC presented the progress to date of the MWSIP to the meeting of the Program Steering Committee (PSC) on 25 February 2016. The implementation of the program was reviewed with members of the committee along with a discussion of critical path items including (i) finalization of the Minipe Anicut design and whether to incorporate a mini-hydro power generation facility; (ii) approval of the PMDSC’s recommendation to raise the invert elevation of the UEC at the outlet from the Moragahakanda Dam; and (iii) the final selection of the route for conveyance of water transfers in Phase 2.

16. The PMDSC carried out reconnaissance visits covering the majority of the Program area and held initial meetings with PMU, ADB as well as with the Central Environmental Authority (CEA) to provide clarifications for different parts of the Program. An organisational structure was set up for the office, using temporary facilities during December and early January, and moving into the offices provided by MMDE mid-January. The Terms of Reference for the consultancy package for irrigation system efficiency improvement were updated and are submitted with this Inception Report.

17. Bid documents for additional geotechnical investigations required for finalisation of the design of the dams and tunnels have been prepared following site visits to the corresponding areas, and two sets of documents were issued with invitations to submit bids. One set has already been returned and evaluated and clarifications are being sought.

18. Design review Tranche 1 packages commenced and optimisation has begun on a range of construction contract designs. Some modifications have been recommended to both canal and tunnel designs, such as adhering to international design standards and increasing the robustness of concrete structures. A Tender Design Review Report (TDRR) will be prepared for three packages that were at an ‘advanced stage’ of completion at the commencement of services by the PMDSC. It has been determined that some packages indicated to be 100% complete during the PMDSC’s contract negotiations are in fact not construction-ready and will need further work on them before being issued. Adjustments to design packages are described in detail in this Inception Report.

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19. One tender package was floated for national competitive bidding (NCB) during December 2015 and a further NCB package, as well as one package for international competitive bidding (ICB), are to be issued during February. Other bid documents are under preparation. Preliminary work has begun on the Capacity Development and Communications tasks, and the national and international environmental team for preparation of the Strategic Environment Assessment (SEA) has been mobilised.

20. The updated ToR for the consulting services package that will prepare strategy for the improvement of cascade irrigation system efficiency and water productivity (ISEWP) was reviewed with the PMU and ADB during the inception mission. An integral part of the work is that it will be demonstrated in selected areas as the first step in scaling-up the process of addressing needed improvements in agricultural productivity, especially in light of the vulnerability to climate change that will exacerbate water shortages in the dry zone. Approval for the ToR and budget is sought from the PMU so that recruitment of the ISEWP may occur by mid-2016.

21. Work progressed on the preparation of a study of two possible alternative routes for conveying water from the Mahaweli Ganga to the Moragahakanda Reservoir. The selection of one of these is an essential pre-condition for progressing the Phase 2 investigations and feasibility study work. Literature review has been complemented by mathematical simulation of water transfers and power generation for one of the options – the other having already been previously simulated. Further, a workshop was arranged for carrying out multi-criteria analysis (MCA) of the two optional routes with the participation of a wide range of institutional stakeholders.

22. Progress was also made with planning a general approach to fulfilling the requirements of the PMDSC’s ToR in respect of general model(s) development, and key meetings were held with the Water Management Secretariat (WMS), the Ceylon Electricity Board (CEB), and others to determine planning strategies and data availability for further model development and simulation use. Strategies were formulated for the various model types to be developed under the PMDSC ToR. 1.4 Detailed Workplan, Activities, Staffing and Tasks

23. Initial focus has been on reviewing and completing bid documents for issue as early as reasonably possible, consistent with the completion of essential modifications. The PMU and ADB have indicated that priority needs to be given to the issue of bid invitations and the construction of Tranche 2 works and the PMDSC has started investigating the implications of such changes in sequence. Tranche 2 comprises a long tunnel to be constructed by tunnel boring machine (TBM) and the connection of two reservoirs by canal and tunnel sections. The long tunnel lies on the critical path for completion of the overall Program. Additional investigations are being instructed: the associated package is currently being tendered. At the present stage of investigations and subsequent design modification it is not currently possible to give assurances on an earlier start than previously envisaged.

24. The canal and tunnel connection of the two reservoirs, if moved forward to an earlier start under an accelerated program, would bring some water allocation and power benefits. However, construction supervision of these works is currently outside the scope of the PMDSC’s ToR and additional resources would be required if this work were to be included.

25. Concerns have arisen related to the adoption of international design standards for dams as required by the PMDSC’s ToR, in that these are more strict than the Sri Lankan standards adopted to date, and will be associated with higher costs than previously estimated when applied. This affects areas such as spillway capacity, dam stability, and instrumentation. Several dams in the Program are classified as ‘high dams’ under internationally recognised guidelines and pose potentially severe risks to those living downstream of them in the event of failure.

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26. A further concern is that some existing structures, including dams of significant dimensions, will become part of the NCPCP infrastructure and are not currently included in the scope of work of the MWSIP or PMDSC, though they may require stability checks and modifications to comply with international standards.1 Significant leaks and other defects were noted during reconnaissance visits at some existing level crossings in the project areas. Additional resources will be required to manage this work. We have included in this report a proposal to conduct an inventory of the existing dams and level crossings to assess them and make recommendations to the PMU about any additional works required.

27. Work on the capacity development and communications tasks will commence during February and an exchange of information as well as detailed discussion of methodologies and strategies will form part of the inception mission’s activities. Outline methodologies are included in this Inception Report.

28. Work has also started on planning of the SEA strategy, including literature review of the MDP, other ongoing and planned development programs within the MDP’s area of influence, environmental and socio-economic baseline data, previous SEAs, EIAs, ESIAs and IEEs, policies, laws and regulations, and the institutional framework that defines the responsibilities for MDP operations and the management of natural resources in its scope.

29. Progress made so far on a study of two possible alternative routes for conveying water from the Mahaweli Ganga to the Moragahakanda Reservoir has been reported in Section 1.3, where its importance for proceeding with Phase 2 investigations and studies is also described. Work on the MCA evaluation of routing alternatives, now in progress, is expected to allow earlier completion of the associated route selection report than previously planned. Simulation work for comparison of water allocations using each of the two routes is being carried out using the existing water allocation/balance model that is also used by WMS. A component of one of the route alternatives is the heightening of the Kotmale Dam by about one third of its existing height, and there would be significant risks with such work, which would need extensive study if it were to be implemented. It is unlikely that such a significant raising of this type of dam has a precedent anywhere in the world.

30. Plans and recommendations have been formulated for the development of various model types specified in the PMDSC’s ToR. Proposals for the long-term development of a “Mahaweli System Operations Model” are outlined in this report, which would comprise several different numerical models serving specific purposes as part of an integrated decision support system (DSS). A suite of models will be required, which may be linked to one another and run iteratively. A flow chart is presented, which provides an overview of the approach intended for development of an appropriate suite of models. The next stage of work will involve intensive data collection and plausibility checking followed by model setup, calibration and verification. Modelling is also required under the consultancy package to be supervised by PMDSC in respect of strengthening integrated water resources management (IWRM). A further simulation task will be that of dam break modelling, which will be carried out for dams designed under the Program. 1.5 Program Implementation Plan

31. The early recruitment of staff to the PMU and three PIUs so all critical positions all filled in the next several months, especially the safeguards specialists, will be essential for maintaining progress on the Program. The PMU will add several young engineers recruited from MASL and ID in order to build the technical and management capacity of the next generation of Sri Lanka’s water resources engineers.

1 Some but not all of the dams and level crossings in the MWSIP were previously analysed as part of the World Bank Dam Safety and Water Resources Planning Project.

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32. To comply with ADB and government environmental safeguard policies, a study related to Human Elephant Conflict (HEC) must be carried out in support of the recommendations in the EIA report; however, it has not yet been initiated. These EIAs prepared for the UECP and NWPCP have not yet been approved by the CEA, although the mobilisation of contractors cannot start until this occurs, along with the sanctioning of the contractor’s EMPs. There is a risk of some delay to the commencement of construction activities if the EIAs are not approved soon.

33. Conditional approval has already been given by ADB for some Tranche 1 packages; however, the PMDSC has identified some revisions are needed for the design and bid documents, in addition to those comments the PMU received from ADB. In some cases the MMDE’s Technical Evaluation Committee (TEC) have requested even further modifications to these packages. A detailed status of the approval status of each Tranche 1 package is given in the report.

34. The procurement of vehicles for the PMDSC has been temporarily delayed by the inability to receive price quotations from suppliers, due to uncertainty over new importation duties and taxes. Initial indications though are the Provisional Sum budget will be inadequate to purchase enough vehicles for effective supervision of the large number of civil works packages to be implemented concurrently. The PMDSC is presently obtaining quotations and will prepare an updated budget request for the PMU’s approval. The available budget for office equipment is also being reviewed in light of the needs for effectively supporting the Program.

35. The PMDSC’s staffing schedule has been revised to reflect the present status of planning, as outlined in Section 1.4. No additional resources or staffing are being requested for finalizing the designs and bid documents (Task 2) or for preparing the Strategic Environmental Assessment (SEA) Task 6, since these are both part of the Lump Sum contract. Rationales for the additional staffing inputs or re- scheduling in the Time-based tasks (Tasks 1, 3, 4, 5 and 7) include (i) the acceleration of the construction of the KMTC; (ii) the inclusion of the Kongetiya Level Crossing in the UEC-ICB-3 bid package; (iii) carrying out an assessment of the existingdams and levelcrossings that will become part of the Phase 1 constructed works in the project areas; and (iv) the requirement for additional specialists’ inputs based on our recommendations for the best ways of meeting the government’s objectives of an accelerated implementation schedule, as discussed in this report. None of these activities was included in the original scope of work in PMDSC’s Terms of Reference. It should be noted that the resources included for the supervision of the civil works packages, including the construction of KMTC, assume the same construction duration (simply moved forward) as in the contract agreement. Should this duration be longer, the supervision resources required would increase accordingly. Due to the delayed commencement of construction activities, the PMDSC has proposed re-scheduling some staffing resources to better support the extensive planning and preparation of Phase 2, which an initial assessment of the preparation of the preliminary designs has indicated will definitely be required.

36. Mobilisation to the site offices, and their being properly equipped and staffed by support personnel, will be necessary soon in order to support the supervision tasks. Concerns have been raised about the adequacy of the available work space for the planned number of PMDSC staff, which will be 20 to 25 people at peak times. Additional resources may be requested for extra running costs if the PMDSC staff are stationed at more offices than planned.

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1.6 Structure of the Report

37. This Inception Report presents the main findings of the PMDSC and includes a revised work plan for the updated implementation schedule. We report all on all the Tasks (1 to 7) in the MWSIP since there are activities and progress that has been made on each one; however, we will also prepare separate inception reports specifically for Tasks 6 and 7 at a later date according to the schedule in the ToR.

38. The report begins with a brief description (Section 2) of the MWSIP and background of the MDP, and outlines in Section 3 the objectives of, activities by, and outputs expected from the PMDSC, the authors of this report. The progress to date with activities required by the Consultant’s ToR is reported in Section 4.

39. The initial intent of the ToR was that the Inception Report would restrict its reporting to Tasks 1 (Program Management), 2 (Design Review and Preparation of Bidding Documents), 3 (Contract Administration), 4 (Capacity Development), and 5 (Communications). For some aspects of the Program, circumstances are however now different and changes in emphasis have occurred since the time at which the ToR were prepared. For example, the ToR anticipated that at the time of mobilisation of the Consultant several construction packages would have been tendered, whereas in fact the first package was issued for bidding in late December 2015 after the PMDSC’s mobilisation, and at the time of writing modifications to other sets of bid documents are being implemented prior to issue. It was also anticipated by the ToR that the PMU and PIU counter-part staff would be up to full strength at the commencement of the Program. This is not yet the case and no substantial start has been made on the Capacity Development and Communication components to-date, though the corresponding specialists are now mobilising. Further, work on Task 6 (Strategic Environment Assessment [SEA]) has begun and progress has already been made on Task 7 (Preparation of Phase 2), in particular in respect of the selection of the best route for transferring water from Mahaweli Ganga to Moragahakanda Reservoir. The final decision on the route selection is a key pre-condition for proceeding with Phase 2 work, which is intended to run in parallel with Phase 1 and to be completed within the first two years of the Program. Section 5 therefore describes progress with all Tasks and not only Tasks 1 to 5. It is considered important to report on Tasks 6 and 7 at the inception stage in view of the activities already undertaken. Nevertheless, dedicated Inception Reports will be separately prepared for the SEA and for Phase 2 as foreseen in the ToR. During the ADB Inception Mission it was agreed that the Phase 2 Inception Report and the Route Selection Report – due in Months 4 and 8, respectively – could be submitted simultaneously by Month 6. This is a rational change insofar as the Phase 2 work cannot be fully planned until the route selection has been finalised.

40. Section 6 covers the Consultant’s proposals for proceeding, in particular where circumstances have changed from those foreseen when the ToR were issued. This section also describes changes to priorities that have been requested by the Client and the ADB, and the Consultant’s initial responses to these requests. The report highlights implementation issues where action or decisions beyond the scope of the Consultant’s ToR may be required to facilitate progress.

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2 INTRODUCTION

2.1 Mahaweli Water Security Investment Program

41. The Mahaweli Water Security Investment Program (MWSIP) is the final stage of the Mahaweli Development Plan (MDP), a multi-sector development of the water and land resources of the Mahaweli Ganga (River) Basin and North Central Province. This is the end point of an investment program that has spanned more than six decades and been pivotal in meeting national development goals in food security, social development, energy production and environmental protection. The updated MDP will address the government’s sector priorities by constructing the North Central Province Canal Project (NCPCP), an outstanding investment component of MDP that is estimated to cost $1.64 billion. The NCPCP will be implemented in two sequential phases: Phase 1 will transfer water from the Mahaweli River Basin to existing reservoirs in the Central, North Central and North Western Provinces; and Phase 2 will extend the transfer of water from the North Central Province reservoirs to existing reservoirs in the Northern Province, and may eventually augment drinking water supplies to Jaffna and Kilinochchi.

42. The MWSIP will implement Phase 1 of the NCPCP. The principal objective of Phase 1 is to increase agricultural production on approximately 33,000 ha of irrigated lands and to improve drinking water supplies to households within the North West and North Central Provinces. This will be achieved through investment in water infrastructure, transfer canals and reservoirs, and in capacity building of stakeholders for improved water resource planning and management. The infrastructure will deliver approximately 130 MCM per annum of water for irrigation of about 11,500 ha of systems in the North West Province, and approximately 270 MCM per annum for irrigation of 12,400 ha of systems in North Central Province, as well as supply of 100 MCM of drinking water. Productivity on about 7,500 ha of irrigated lands in the Minipe System will also be improved. The storage capacity within the systems of the North West Province will be increased by about 26 MCM through the construction of two new storage reservoirs.

43. Key elements of the program of Phase 1 include (refer to Figure 1):

• The Upper Elahera Canal Project (UECP), consisting of two elements: (i) the Kalu Ganga- Moragahakanda Transfer Canal (KMTC) for transfer of water from Kalu Ganga reservoir to the Moragahakanda Reservoir, and (ii) the Upper Elahera Canal (UEC) for transfer of water from the Moragahakanda Reservoir north to the existing Huruluwewa, Manankattiya, Eruwewa and Mahakanadarawa Reservoirs. • The North West Province Canal Project (NWPCP), with 92 km of new and upgraded canals for transfer of water from the Dambulu Oya River and existing Nalanda and Wemedilla Reservoirs, as well as two new earth dams at Mahakithula and Mahakirula. • The Minipe Left Bank Canal Rehabilitation Project (MLBCRP), located in the downstream reach of the Mahaweli Ganga, with heightening of the existing concrete diversion weir (anicut) to add upstream storage (needed to compensate for greater daily flow variations due to peaking operation of the upstream power stations) and rehabilitation of regulating structures and desilting of the main canal.

44. The MWSIP will also address other key sector priorities through two consulting packages: (i) improving system efficiencies and water productivity (ISEWP) with recommended investments considered for inclusion in the Program; and (ii) strengthening institutions with integrated water resources management (SIWRM).

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Figure 1: Layout Map of the Mahaweli Water Security Investment Program

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45. The investment program will raise paddy production in 32,800 ha of existing command area by increasing cropping intensities from 130% to 180% and yields from about 3 to 6 ton/ha. Additional benefits will arise from increased drainage return flows within the existing cascade systems that downstream communities will use. Once NCPCP Phase 2 is completed, the irrigated area commanded by the investment program will increase to 103,400 ha. Cropping intensities, yields and command areas may be further increased through water use efficiency initiatives identified under the ISEWP package, which will also encourage diversification into less water consuming and higher value crops.

46. Phase 2 will extend the transfer of water to the North Central and North Provinces, with the extension of the transfer canals and transfer of an additional 700 MCM, to support drinking water supply and irrigated agriculture. The key elements of Phase 2 comprise: (i) the Randenigala Kalu Ganga Transfer Canal (RKTC) for transfer of water from the Randenigala Reservoir to the Kalu Ganga Reservoir (subject to confirmed route selection); along with (ii) two new reservoirs and power stations (Upper Hasalaka and Heen Ganga); (iii) the Lower Uma Oya Reservoir and power station, for transfer of water to the Randenigala Reservoir; and (iv) the North Central Province Canal (NCPC) for transfer of water from the UEC to communities and command areas to the north. The investment in infrastructure will enable delivery of approx. 700 MCM of water for domestic and irrigation use in the cascade systems of the North Central and North Provinces. It will on completion increase the total area full or partially supplied from the Mahaweli Ganga from 146,000 ha to 233,000 ha. The storage capacity and installed capacity within the Mahaweli Development area will be increased by approximately 146 MCM and 30 MW respectively, with the construction of three new reservoirs and hydropower stations. 2.2 Background to Water Resources in Sri Lanka

2.2.1 Mahaweli Ganga 47. The MWSIP is a large scale multi-faceted water resources program. As such it forms an integral part of the MDP and an extension of existing investments in water infrastructure and irrigation systems development. As outlined above the program is principally aimed at completion of the development of infrastructure for transfer of water to the northern dry zone. This section present a summary of the significance of water resources as part of sustainable development in Sri Lanka, and in particular the role of the Mahaweli Ganga, progress to date on the MDP and preparation for the MWSIP.

48. While Sri Lanka has ample water resources with an annual per capita endowment (ACE) of 2,600 cubic metres (m3), these resources are not well distributed in time and space due to topography and monsoonal climate. The country is split between the ‘wet zone’ of the central and south west districts, which comprise about 25% of the area – but with 70% of the water resource – and the ‘dry zone’ of the north and east, with 30% of the water but more than 80% of the water demand2 (predominately for irrigated agriculture) as well as a significant and growing demand for drinking water.

49. In the northern dry zone districts3 ACE is 1,200 m3 and is predicted to decline to water scarcity levels (less than 1,000 m3) by 2025 due to increasing demand for drinking water. There are also large seasonal differences, with 80% of this resource being available in the Maha season4. The districts suffer from frequent droughts, especially in the Yala season, which severely impacts on irrigated agriculture

2 IWMI. 1999. Water Scarcity Variations within a Country: A Case Study of Sri Lanka. Research Report 32, Sri Lanka 3 The districts include; Jaffna, Killinochchi, Trincomalle, Vuvaniya, Mullaitivu, Puttalam, Kurunegala, Anuradhapura 4 In Sri Lanka there are two principal monsoonal periods, the South West Monsoon (Maha season) from December- February and the North East Monsoon (Yala season) from May-September.

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50. In addition to water availability for consumptive uses, the geographical distribution of water is of importance for energy production. Some 40% of the country’s installed capacity is in hydropower, most of which is in stations located within the ‘wet zone’. While the contribution to annual production has declined in recent years due to increased production from thermal plants to meet rising demand, it is nevertheless a significant and strategic energy source, particularly during periods of peak demand. The proportion of total energy provided by hydropower is less than the proportion of installed capacity because of the use of hydropower primarily for peaking.

51. Climate change is likely to increase the vulnerability of communities to water shortages due to increased demand and decline in reliability of water sources. Rainfall in past years (1880 to 1970s) was characterised in addition to the seasonality (Maha and Yala monsoon seasons) by high annual variability, with alternate dry and wet periods as well as a general decline (MIWRM, 2010)5. Over the period 1931 to 1990 the average annual rainfall is reported to have decreased from 2,005 mm to 1,861 mm, a decline of 7% (Jayatilake et al, 2005).6

52. While projections for annual rainfall trends differ between sources (with both increasing and decreasing mean annual precipitation) there is general consensus that Maha (North East Monsoon) rainfall will decrease and Yala (South West Monsoon) rainfall will increase. This could further exacerbate shortages and reliability of water sources within the northern dry zone, and increase vulnerability of communities to food shortages.

53. Historically (over several millennia) water availability for both drinking and irrigation was improved through development of surface water resources, construction of diversion structures, canals and tanks (storage dams). There are estimated to be more than 30,000 tanks nationally. Over the past fifty years the government has been proactive in promoting water storage and development programs for multi-sector use for drinking water supply, power generation and irrigated agriculture.

2.2.2 Mahaweli Development Program prior to the MWSIP 54. The Mahaweli Ganga (River) is the largest river basin (of 103) in Sri Lanka, with a catchment area of 10,300 km2 and annual average flow volume of 5,474 MCM (more than 10% of national annual renewable water). The headwaters originate in the highlands of the wet zone, and the river flows to the northeast. It represents a large and strategically important water resource, which is being developed to meet the countries energy, water and food needs.

55. The MDP was initiated in the early 1960s with the objective of developing the water and land resources of Mahaweli River Basin and the dry zone areas of the northern provinces for irrigation and power generation. The plan was ambitious and included multiple storage dams, hydropower stations, transfer canals and irrigation systems. The reliability of water availability from the Mahaweli River Basin for the investment program is essential to assess under both current and future water demand conditions to determine supply reliability and impact of the projects on other existing and planned water uses within the MDP. It is also potentially sensitive to climate change impacts, particularly in terms of impacts on water demand due to predicted temperature increases and changes to rainfall patterns.

5 Sri Lanka Water Development Report: 2010. 6 Jayatillake, H.M., Chandrapala, L, Basnayake, B.R.S.B, Dharmaratne, G.H.P, (2005). Water Resources and Climate Change. Proceedings of the Workshop on Sri Lanka National Water Development Report, World Water Assessment Program, Paris.

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56. Figure 2 shows the principal features and declared areas of the MDP. To-date completed works include the construction of the cascade of storage dams and power-stations on the Mahaweli Ganga, comprising Upper Kotmale, Kotmale, Victoria, Randenigala and Rantambe, with a combined storage volume of about 1,800 MCM and combined installed capacity of 770 MW. The Nalanda and Bowatenna Dams have been constructed on the Amban Ganga (tributary of the Mahaweli Ganga), with a combined storage volume of 52 MCM and combined installed capacity of 40 MW. The works also included construction of two diversion tunnels: Polgolla, diverting water from the Mahaweli to Amban Ganga, and Bowatenna diverting from the Amban Ganga to the Dambulu Oya. In addition, a further four reservoirs and power stations are under construction: Upper Uma Oya (150 MW), Moragahakanda (25 MW), and Morogalla (27 MW) for a combined installed capacity of 202 MW. The Kalu Ganga Dam, which will supplement water supplies to Moragahakanda, is also currently under construction. Kalu Ganga and Moragahakanda Reservoirs would also be on the route of water transfers from Mahaweli Ganga if the diversion following the Randenigala-Kalu Ganga Transfer Canal (RKTC) is selected during Phase 2 works (see also Sections 4.9.1 and 5.10).

57. The total irrigated area is currently about 161,000 ha in 14 systems, of which six are managed by the Mahaweli Authority of Sri Lanka (MASL) with 62% of the irrigated area, and the other eight are managed by the Irrigation Department (ID).

58. Development to date has largely been focused within the Mahaweli Ganga Basin, both in terms of hydropower production and irrigated agriculture. What remains to be completed is the development of the land and water resources of the northern provinces, largely through water transfers. Some 1,000 MCM of reliably renewable water resources can be transferred to the water-short north. This is the objective of the final stage of the MDP and aims to complete fulfilment of the MDP goals. 2.3 Previous Studies, Surveys and Investigations

59. The NCPCP has been conceived by the government to serve the largest agricultural benefit area under the MDP. The original conception of the project encompassed the transfer of Mahaweli water to the North Central and Northern Provinces through a canal taking off from the Moragahakanda Reservoir built across Amban Ganga and augmented from the Bowatenna Reservoir. However, work was suspended in the late 1970s due to limitations in financial and other resources. Subsequently, several studies were conducted to update the planning for the project and proposed alternative solutions, which could not be implemented due to financial constraints and the civil disturbances that prevailed in the country from 1983 to 2009.

Construction of the Moragahakanda Reservoir and Kalu Ganga Reservoir commenced in 2012 and 2014, respectively. Under the government’s policy framework of the “Mahinda Chinthana – Vision for the Future”, the NCPCP was prioritized for implementation to address the urgent need for socio-eco- nomic development and increasing water demands in the dry zone. Subsequently, the Ministry of Irrigation and Water Resources Management undertook a major Pre-feasibility study to assess the availability of water resources in the Mahaweli and Amban River Basins and propose the optimum diversion quantities and routes for the proposed development areas with minimum impacts on the existing irrigation systems and environment. A number of other major studies and investigations were carried during 2012 and 2013 (refer to Table 1).7

7 In addition, other major studies had been carried out in previous decades including the original UNDP Master Plan Study (1968), the NEDECO Implementation Strategy Study (1979), the Electrowatt Trans-basin Diversion Study (1980), and the JICA Trans-basin Study (1989).

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Figure 2: Mahaweli Declared Areas

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Table 1: Feasibility Studies done for the NCPCP (2012-2013)

No Contract Name Contract No. Submission

Pre-feasibility Study for NCP Canal Project Water 1 Resources Development Plan for NCP, NP and TS/NCP/P-FS/88 February 2012 NWP (NCP Canal) Consultancy Services for Feasibility Studies and Detailed Design of Raising/Modifications to MIWRM/AGR/Consult/ 2 March 2013 Minipe Anicut and Rehabilitation of Minipe Left 2011/23 Bank Canal

Consultancy Services on Modification to Configuration of Moragahakanda – Kalu Ganga MIWRM/AGR/Consult/ 3 May 2013 (M-K) Projects to Integrate NCP Canal Project 2011/20 Layout Consultancy Services for Feasibility Studies for Diversion of Mahaweli Water to Upper Mi Oya & MIWRM/AGR/Consult/ 4 October 2013 Hakwatuna Oya Basins in Kurunegala District via 2011/24 Existing Bowatenna Tunnel Consultancy Services for Comprehensive Hydrological / Water Balance Study and Finalization of Configuration of Proposed MIWRM/AGR/Consult/ 5 December 2013 Randenigala – Kalu Ganga Transfer Canal Complex 2011/22 encompassing Hasalaka and Heen Ganga together with Lower Uma Oya Complexes

60. The Pre-feasibility Study (2012) recommended seven sub-projects to revive the NCPCP of MDP as detailed below. Each of these sub-projects has been the subject of further studies and investigations by relevant government agencies.8

• Kalinganuwara Pumping Complex • Randenigala – Kalu Ganga Transfer Canal • Kalu Ganga - Moragahakanda Transfer Canal • Upper Elahera Canal • North Western Province Canal Project • NCP Canal Development • Lower Uma Oya Hydropower Project • Hasalaka Oya and Heenganga Hydropower Projects • System B Right Bank Development Project • Minipe Anicut raising and rehabilitation of the Left Bank Main Canal

8 Feasibility studies and detailed designs for major projects go through a formal review process utilizing ad hoc Technical Review Committees (TRCs) comprising representatives from the MASL, ID and other relevant stakeholders or interested parties. The TRCs will also be involved with the review and approval of all civil works packages in the MWSIP. Similarly, Technical Evaluation Committees (TECs) are responsible for review and approval of bid documents, and evaluate submitted bids to make recommendations for contract award.

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61. During April to December 2014, ADB supported a Project Preparatory Technical Assistance (PPTA) to conduct due diligence of Phase 1 of the NCPCP and prepare the investment program documents, comprising assessment of technical, economic, financial, governance, poverty, social, and safeguards issues. The scope of the PPTA was to: (i) review the technical and economic viability and designs of the three investment projects under the investment program; (ii) review and update safeguard measures; (iii) review civil works contract documents and advise government engineers to ensure they meet necessary criteria; (iv) prepare the ISEWP consultancy package; (v) undertake financial and procurement assessments of the EA and IAs; and (vi) prepare all requirements to meet the processing criteria for the MFF and its first tranche. The activities under this PPTA led to the preparation of a program proposal in ADB’s format for financing an investment program.9 In 2015 the investment program was approved by ADB and the government.

62. During the PPTA detailed engineering designs and draft bid documents were prepared for three advanced contract packages.10 Feasibility-level designs were prepared for the other civil works packages. In addition, a large investigations program was carried out by the Geological Survey and Mines Bureau (GSMB), the GeoEngineering Consultancy, the Geology Department of the University of Peradeniya, and the Central Engineering Consultancy Bureau (CECB). Investigations now being specified and tendered are described in Section 4.4.1.

9 ADB. Water Resources Development Investment Program. Technical Assistance Consultant’s Report. December 2014. 10 The three advance contract packages were the UEC-ICB-1, NWP-ICB-1 and MLBCR-ICB-1.

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3 IMPLEMENTATION ARRANGEMENTS

3.1 Investment Program

3.1.1 Multi-Tranche Financing Facility 63. The investment program will implement NCPCP Phase 1 using the Asian Development Bank’s (ADB’s) multi-tranche financing facility (MFF) modality, loaned to the government in three tranches.11 The MFF will comprise three tranches: (i) Tranche 1 will implement the MLBCR, NWPC Stage 1 and certain non-tunnel segments of the UEC; (ii) Tranche 2 will implement the KMTC and the TBM tunnel segment of the UEC; and (iii) Tranche 3 will implement NWPC Stage 2 and remaining tunnel and non- tunnel segments of the UEC. The number of tranches and projects, especially those after Tranche 1 are indicative and are subject to change. Procurement to be financed from the ADB loans under the MFF will be strictly carried out in accordance with ADB’s Procurement Guidelines for goods, works, services and consultants (April 2015), as amended from time to time. To foster competition the ADB permits bidders from all eligible countries to offer goods, works and service for all ADB-financed projects.12

64. The cost of the MWSIP is estimated at $675 million, including contingencies and financing charges. Tranche 1 was approved in 2015. Approval for the second tranche is scheduled for 2017 and approval for the third tranche is scheduled in 2018. 13

65. Bid documents will be prepared following ADB’s Standard Bid Documents (SBDs). For procurement of ICB contract packages the single stage two envelope bidding procedure with Large Works Conditions of Contract will be used. For procurement of NCB contract packages the single stage two envelope bidding procedure with Small Works Conditions of Contract will be used. International competitive bidding (ICB) will be followed for civil work contracts costing $7.5 million or more in Tranche 1. Civil works contracts costing less than $15 million will be procured through national competitive bidding (NCB) procedures acceptable to ADB. Numerous small service contracts or community works (to be determined in consultation with project area community groups / civil society organizations and awarded as a community works contract) costing less than $20,000 each may be directly contracted.

66. Construction of Phase 2 of the NCPCP is not financed under this investment program, although the PMDSC will be responsible for undertaking detailed feasibility and safeguards studies, and preparing the necessary documents for ADB consideration for possible future financing.

3.1.2 Implementation Schedule 67. Implementation of the MFF is tentatively scheduled from 2015 to 2024. The MWSIP will implement approximately 20 major works packages comprising civil works construction, in addition to the ISEWP and SIWRM consultancy packages, in addition to training and capacity development of government officers and departments. These civil works packages will be constructed in stages under each tranche of the investment program.

68. An updated Implementation Schedule is included in Annex A. An accelerated version of the schedule has also been prepared for discussion purposes wherein the construction of the KMTC is

11 Additional co-financers may be involved in Tranches 2 and 3. 12 ADB. 2015. Procurement Guidelines. Manila. 13 The government seeks to expedite completion of the NCPCP as soon as practical, particularly for the UECP and Phase 2 investments. Throughout our services the PMDSC will recommend viable options for achieving these goals.

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• Revision and finalization of tender documents 1 to 18 months • Approval by the PMU and ADB 2-3 months • Bidding and contract award 6-8 months • Construction 24 to 60 months • Defects liability period 12 months

69. Tendering for the first civil works package (MLCB-NCB-1) has been initiated in December 2015 and the first construction is tentatively scheduled to begin by June 2016.

3.1.3 Program Outputs 70. The program outputs in Phase 1 are construction of new and improved water conveyance and storage infrastructure, including:

• Upper Elahera Canal (UEC); construction of approximately 82 km of canal (including 28 km of tunnel) connecting the Moragahakanda Reservoir to the existing tanks of Huruluwewa, Manankattiya, Eruwewa and Mahakanadarawa. The Kalu Ganga – Moragahakanda Transfer Canal (see below) is also a component of the UECP. • Kalu Ganga – Moragahakanda Transfer Canal (KMTC); construction of approximately 9 km transfer of canal (including 8 km of tunnel) for the transfer of water between the Kalu Ganga and Moragahakanda reservoirs. Refer to Figure 3. • North Western Province Canal (NWPC); construction of 96 km of new and upgraded canals (including 940 m of tunnel) for transfer of water from the Dambulu Oya River and the existing Nalanda and Wemedilla reservoirs to the cascade irrigation systems and Mahakithula and Mahakirula Reservoirs with a combined storage volume of approximately 26 MCM linked to the NWPC. Refer to Figure 4. • Minipe Anicut Heightening and Left Bank Canal Rehabilitation (MLBCR); the heightening of the Minipe diversion weir (downstream of the Rantambe dam) by approximately 3.5 m, construction of new intake gates to the Minipe Left Bank system, construction of emergency side spillways on both the left and right bank system canals, and rehabilitation of approximately 74 km of the left bank system to improve conveyance and reliability of service to existing irrigated lands. Refer to Figure 5. • Systems for improving water resources management and productivity developed. • Multi-disciplinary investment program management operational.

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Figure 3: Kalu Ganga – Moragahakanda Transfer Canal and Upper Elahera Canal Project

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Figure 4: North West Province Canal Project

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Figure 5: Minipe Left Bank Canal Rehabilitation Project

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3.2 Organizational Setup

71. An organization chart of the program is shown in Figure 6.

Figure 6: Organizational Chart of the MWSIP

3.2.1 Implementation Agencies 72. The executing agency (EA) for the investment program is the Ministry of Mahaweli Development and Environment (MMDE) under which a Program Management Unit (PMU) has been established to implement this investment program. The PMU is led by the Program Director (PD), Mr. Sisira Kumara, who is an Additional Secretary of MMDE. Under the Program Director are three Project Implementation Units (PIUs), each led by a Project Director, one for each investment project as follows: Mr. S.A.A. Dharmasiri, Project Director UECP (Madatugama); Mr. G.M.R.A. Perera, Project Director NWPCP (Kurunegala); and Mr. S.D. Mediwaka, Project Director MLBCRP (Hasalaka). The PMU will oversee the ISEWP and SIWRM consulting packages.

73. A Program Steering Committee (PSC) has been established to provide overall coordination of the investment program and facilitate inter-ministerial coordination. The PSC is chaired by the Secretary, MMDE, and the Program Director will be the PSC’s Secretary; all concerned ministries and agencies will be represented.

74. An independent review panel (IRP) is being recruited to review outputs from the PMDSC and other consultants, and provide advice to the PMU and ADB on technical and contractual matters. Experts will include tunnel, dam, and contract management specialists and a geologist.

75. At the completion of the investment program, the investments will be managed by the ID and the MASL. It may be noted that PD UECP comes under MASL, while the other two PDs come under the Irrigation Department.

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3.3 Program Management, Design and Supervision Consultant

3.3.1 Mobilization 76. The Joint Venture of Lahmeyer International GmbH – GeoConsult ZT GmbH, in association with Infotech IDEAS (Sri Lanka), Engineering Consultants (Pvt) Ltd (Sri Lanka), and NIRAS (Denmark) was appointed the Program Management Design and Supervision Consultant (PMDSC) in November 2015. The contract documents were signed on 25 November 2015. The consultants commenced mobilising to Colombo on 1 December 2015.

3.3.2 Scope of Services 77. The PMDSC will be responsible for assisting the PMU to: (i) finalize designs for all packages and the bid documents of the remaining contract packages to be awarded under Project 1, and all contract packages of Project 2 and Project 3; (ii) procure, mobilize, and supervise all Contractors for all projects in Tranches) 1 to 3; (iii) recruit, mobilize, and manage the consultant for the ISEWP consulting services package; (iv) finalise the ToR, and recruit and manage a consulting firm to undertake the SIWRM consulting services package; (v) manage and supervise all civil works contracts and act as the “Engineer”; (vi) prepare Phase 2 investments and necessary ADB financing documents; (vii) provide technical and management advice, as required; (viii) manage and administer the investment program; and (ix) prepare draft periodic financing requests for subsequent tranches, and routine reporting requirements of ADB. The PMDSC will also assist MMDE with preparations, logistics and reporting for missions fielded by ADB and other co-financiers, as necessary, throughout the investment program.

78. The PMDSC will initially support the PMU for a period of five years (60 months) and the contract has signed for the same period. The Contract is a Time-based contract with a Lump Sum component, having (i) a reimbursable Provisional Sums component, (ii) a reimbursable Contingency component, and (iii) a reimbursable other expenses component for the Time-based component

3.3.2.1 Staffing

79. The PMDSC consists of over 100 international and national consultants comprising the following staff:14

Lump Sum Part

International Key Experts 13 International Non-key Experts 1 National Key Experts 12 National Non-key Experts 8

Time-based Part15

International Key Experts 22 International Non-key Experts 1 National Key Experts 28 National Non-key Experts 46

14 Note some consultants are in positions in both the Lump Sum and Time-based part of the contract. 15 Additional Key Experts are for the Time-based tasks as discussed in this Inception Report.

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3.3.2.2 PMDSC Deliverables

80. The PMDSC is responsible for providing project management and technical support to the PMU and PIUs for program implementation. The PMDSC deliverables comprise 7 major tasks and are summarised as follows:

• Task 1: Program Management including; project reports (inception, monthly, quarterly, mid-term and final), periodic reports, handbooks (procurement and financial), and specific reports; MIS, PPMES, Environmental Monitoring, Resettlement, Monitoring and Evaluation, PCR and Special • Task 2: Design Review, Detailed Designs and Preparing Contract Documents including; Hydraulic Structures Design Manual, and reports for Tender Design Review, SCADA System, Detailed Design, MOM manuals and Tender Documents • Task 3: Contract Management, Construction Supervision, Commissioning and Operation in addition to periodic reports (Shifts, Claims, Contract Completion, Weekly, Monthly and Annual) contract reports and manuals for; Construction Supervision, Health and Safety and Technical Reviews • Task 4: Capacity Development and Training Implementation including Training Needs Assessment and Training Plan and Training Completion Report and assisting with implementation of training programs • Task 5: Communications including Communications Strategy and Plan, and knowledge products including website, video presentations and publications and support for safeguards • Task 6: Preparing a Strategic Environmental Assessment (SEA) including reports for inception, interim and SEA • Task 7: Preparation of Phase 2 including reports for Inception, Route Selection, Interim, and Feasibility Designs as well as PDA and ADB loan documents

3.4 Safeguards

81. All three investment projects have been categorized for safeguards and assessments prepared prior to ADB Board approval. The following safeguards documents were prepared during the PPTA for the investment program as per ADB’s SPS and the government rules:

• Environmental Assessment and Review Framework (EARF) • Initial Environmental Examination (IEE) for the MLBCRP • Environmental Impact Assessment (EIA) for the UECP, NWPCP and MLBCRP • EIA for the NWPC • Resettlement Framework (RF) • Resettlement Implementation Plan (RIP) for the UECP and NWPCP

3.4.1 Environmental 82. The NWPC and UEC are classified as Category A for environment and the MLBCR is classified as Category B in accordance with ADB’s Safeguards Policy Statement (2009). The necessary safeguards requirements have been completed and submitted to the Central Environmental Authority (CEA) including the Environment Impact Assessments (EIAs) for the NWPC and UECP and an Initial Environmental Examination (IEE) for the MLBCR, all prepared during the PPTA. The MLBCR is unlikely to cause any significant environmental impacts. The current status of environmental approvals is shown in Table 8.

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83. The potential impacts, mitigation measures, and monitoring and reporting requirements are presented in the environmental management plans (EMPs) prepared for each EIA/IEE. The EMPs set out specific environmental safeguards and mitigation measures to be incorporated into the bid documents and define institutional responsibilities and associated cost estimates.

84. The EARF was prepared by the PPTA to guide the formulation of environmental safeguards documents for future tranches according to the government and ADB’s policy requirements.

85. A safeguards cell is being established in the PMU. The safeguards cell will be responsible to oversee overall monitoring and verification of environment and resettlement activities of the investment program. Two counterpart personnel with relevant experience will be assigned to the safeguards cell which will have responsibility for ensuring compliance of the safeguards requirements including (i) environment and (ii) resettlement including gender.

86. The Project Director of each PIU will assume primary responsibility for the environmental assessment as well as implementation of EMPs for their respective components. An environmental officer will be assigned to the project teams under the Project Directors. The duties of the environmental officer will include: (i) oversight of construction contractors for monitoring and implementing mitigation measures; (ii) preparing and implementing environment policy guidelines and environmental good practices; (iii) liaising with the environmental agencies and seeking their help to solve the environment-related issues of project implementation; (iv) providing awareness training on environmental and social issues related to the program and; (v) preparation of environmental monitoring reports every 6 months for EIAs and once a year for IEEs (as required by ADB).

87. In addition, the PIU environmental officer with assistance from the PMDSC’s Environmental Specialists will: (i) update the environmental assessments including the EMPs based on detailed designs; (ii) ensure EMPs are included in bid documents and civil works contracts; (iii) provide oversight on environmental management aspects of the project and ensure EMPs are implemented by the contractors; (iv) facilitate and ensure contractors comply with all government rules and regulations regarding permits as well as any other relevant approvals required for works; (v) supervise and provide guidance to the contractors to properly carry out implementation of the EMPs; (vi) review, monitor and evaluate the effectiveness with which the EMPs are implemented, and recommend necessary corrective actions to be taken as necessary; (vii) consolidate periodic environmental monitoring reports to ADB; (viii) ensure timely disclosure of final environmental assessments in locations and forms accessible to the public; (ix) take corrective actions when necessary to ensure no environmental impacts; (x) conduct ongoing consultation with the community during implementation of the project; and (xi) establish a grievance redress mechanism and ensure it is operated satisfactorily.

88. The CEA requires that the detailed EMP prepared by the contractor, including proposed mitigatory actions for each of the identified project interventions, is submitted by the PMU for review and approval by the Monitoring Committee. Prior to giving approval the CEA’s Monitoring Committee will conduct a field visit(s) to the project area to confirm the identified mitigatory measures in the submitted EMP.

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3.4.2 Resettlement 89. The NWPC and UEC are both classified as Category B for involuntary resettlement.16 Resettlement implementation plans (RIPs) were prepared for each project to ensure that there are adequate social safeguards for person that shall be affected by permanent or temporary land acquisition including provisions for (i) replacement of assets or properties lost; (ii) rehabilitation of affected persons; and (iii) restoration of their incomes, or better, from pre-project level. The design and implementation of a robust and accessible grievance mechanism to be provided to the affected population is a key ADB requirement.

90. The PMU will have resettlement cell with a full time specialist who will assist the formulation of RIPs, resettlement due diligence reports and resettlement monitoring reports. The specialist(s) key activities include: (i) screening of proposed projects for potential resettlement impacts and risks; (ii) reviewing of project alternatives to avoid or minimize resettlement impacts; (iii) assessing social impacts of the project; (iii) formulating an appropriate strategy for public consultations and resettlement information disclosure; (iv) formulating RIPs with resettlement consultants; and (v) establishing GRM and monitoring of their effectiveness. While EA will be responsible for overall coordination, planning, and financing of resettlement program, the implementation of RIPs is the responsibility of PMU.

91. The PMU/PIU will monitor the RIPs implementation to determine whether resettlement goals have been achieved and livelihood and living standards have been restored, and to recommend how to further improve implementation. For this, each Project will elaborate specific, relevant and detailed monitoring indicators. The PMU/PIU will prepare half-yearly monitoring reports to submit to EA and ADB. The reports will focus on whether resettlement activities have complied with IR safeguard principles and loan covenants of the project. The report will also document consultations conducted with project affected persons (PAPs) and summaries of issues identified and actions taken to resolve them. It will also provide a summary of grievances or complaints lodged by PAPs and actions taken to redress them and the specific activities conducted to restore and improve income sources and livelihoods of PAPs.

92. A Resettlement Framework (RF) was prepared by the PPTA to serve to guide safeguard assessments and the preparation of relevant safeguards documents in all three projects. 3.5 Poverty and Social

93. The PPTA prepared a Poverty and Social Assessment (PSA) based on the findings of pre- feasibility socio-economic surveys, resettlement census, environmental field surveys, and academic studies that have been conducted in the project areas in the recent past to examine opportunities, constraints, and potential social impacts of the proposed projects on affected communities. The design and implementation of a robust and accessible grievance mechanism to be provided to the affected population is a key ADB requirement.

94. ADB has identified some deficiencies in the existing PSA that will need to be addressed during the processing of the Periodic Financing Request (PFR) of Tranche 2.

16 UEC Tranche 1 is category “C” for resettlement as no land or persons will be affected by the 6.2 km length of canal to be constructed during the first tranche. However, Tranche 1 investment costs will be sufficient for all resettlement activi- ties to be undertaken for the entire investment program.

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4 PROGRESS TO DATE

4.1 PMDSC Office and Logistics

95. On 1 December 2015 the PMDSC commenced operations from the temporary office facilities at MASL premises on Jawatte Road. Work commenced with gathering and reviewing available data, reports, and other information related to the MWSIP. Field visits to project sites were conducted in mid-December in conjunction with the PMU staff and Project Directors to assess prevailing site conditions.

96. The consultants were relocated to the refurbished office at 493 T.B. Jayah Mawatha during January 2016 and continued with the review of designs and contract packages and preparation of deliverables for each Task. During the period from 1 December 2015 to 31 January 2016, the experts deployed comprised 22 personnel, including both national and international staff. Details are given in Annex B. 4.2 Meetings

97. The PMDSC attended 13 meetings with the MMDE, ADB, CEA, Ceylon Electricity Board (CEB), line agencies and others, during the period from 1 December 2015 to 31 January 2016. Annex C provides the minutes of meetings.

98. Client: At the commencement of the assignment, an initial meeting was held with the Client on the 2 December 2015 followed by 3 fortnightly progress review meetings, and a post-site visit meeting. In these meetings the prevailing site status and measures to overcome constraints were discussed.

99. ADB: Two discussions were held with the Sri Lanka Resident Mission (SLRM) with ADB staff. The first discussion was on ADB contractual procedures and guidelines, and environmental assessment and clearances. The second meeting covered procurement procedures, including qualification of bidders, evaluation period, work program, bonds and securities, evaluation criteria and selection of bidders.

100. Others: The Consultants participated in two meetings with CEA for clarification of the proposals for NWPC and UEC. Clarifications included explanation of (i) measures to mitigate impacts on flora and fauna along the canal reaches through forest and wildlife reserves and on the groundwater table; (ii) encroachments into reserves; (iii) reforestation of denuded reserves; and (iv) the measures to minimise human-elephant conflicts.

101. Representatives of the PMDSC participated in the Pre-Bid Meeting for MLBCR–NCB-1 package from 0+00 to 30+00 km and assisted the PMU with the clarification of bid documents and with technical clarifications during the site visits.

102. PMDSC specialists held a series of discussions with the officials of the Water Management Secretariat (WMS), ID, MASL, Meteorological Department and CEB aimed at understanding the strategies of these institutions and collection of data needed for modelling aspects of the Program. 4.3 Task 1 – Program Management

4.3.1 Program Inception 103. Initial mobilisation at the beginning of December 2015 was followed by introductory meetings with the PMU, MMDE and ADB, and setting up an organisational structure for the PMDSC. Planning of early staffing and setting up administrative systems was partially handicapped for the initial weeks by having to shift to a temporary office setting, as work on completion of the permanent PMDSC

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4.3.2 Reconnaissance 104. During the initial weeks after mobilisation of the first staff, reconnaissance visits were made to various parts of the Program area. During the first reconnaissance, areas under Projects 1 to 3 in MLBCR, UEC and NWP were visited. Subsequently, Kotmale and Upper Kotmale Dams, Polgolla Diversion, Polgolla Tunnel and the Sudu Ganga to Bowatenna were visited to assess conditions in connection with the Route Selection Report to be prepared as part of the Phase 2 feasibility study activities under Task 7.

4.3.3 Continuous GIS Update 105. The Geographic Information System (GIS) put in place by the Mahaweli Consultancy Bureau (MCB) during the PPTA is being updated continuously based on information from reconnaissance visits and updates from recent surveys and tender document preparation.

4.3.4 Terms of Reference for Improving System Efficiency and Water Productivity (ISEWP) 106. The PMDSC has updated the ToR for the consultancy package “Improving System Efficiencies and Water Productivity” (ISEWP), the aim of which is to increase water availability to serve an expanded MDP by maximizing system efficiencies and water productivity. The scope of the ISEWP package includes measures to (i) improve water use efficiencies by reducing conveyance losses and improving distribution system controls; (ii) improve cascade system water management and scheduling to reduce percolation and drainage losses; (iii) improve on-farm application efficiencies through changes to on-farm management practices including irrigation scheduling; and (iv) reduce water demands with changes to cropping regimes and adoption higher value crops.

107. The updated ToR will be submitted to the PMU in March-April 2016.

4.3.5 Program Fund Disbursement Handbook 108. At the request of ADB and the PMU during the inception mission, the Financial Management Specialist will prepare a Program Fund Disbursement Handbook. This handbook will serve as a guide for the staff of the PMU and PIUs in designing and operating an efficient disbursement mechanism to support implementation of the MWSIP. An amended ToR is included in Annex H to include this additional task. 4.4 Task 2 – Design Review, Detailed Designs and Preparing Contract Documents

4.4.1 Preparation of Tenders for Additional Surveys and Investigations 109. The technical specifications and BoQs for additional investigations to support the final designs of the NWPC-ICB1, in particular the investigations regarding dam foundation and borrow area material for the Mahakithula and Mahakirula Dams was finalised and the associated works were tendered on 21 January 2016. Invitations to bid for the additional investigations for the design of the KMTC-ICB-1 were issued on 28 January 2016. The investigations for UEC-ICB2 are currently under preparation. Further details about the status of additional surveys and investigations are given in Table 2.

110. The data requirements for the geotechnical designs are outlined in Annex E.

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Table 2: Status of Additional Geotechnical Investigations (12 February 2016)

Status of Project / Location Type of Investigation Institute Completion Remarks Package [%] Borehole (1) Mahakirula Dam & Auger Holes (23) Borrow Area Test Pits (9) Field Tests & Sampling Borehole (1) Mahakithula Dam Auger Holes (32) & Borrow Area Test Pits (20) Field Tests & Sampling Auger Holes (7) Mahadambe Tender for investigations Test Pits (2) Borrow Area issued on 21.01.2016 Field Tests & Sampling Contractor's Quotation Nebada Pokuna Test Pit (1) NWPC- received on 03.02.2016 Tank Sampling ICB1 Auger Holes (22) Hakawatuna Oya Test Pits (8) Reservoir Sampling Standard Soil Testing Direct Shear Tests Laboratory Triaxial Tests Permeability Tests Dispersivity Tests Investigations for Dam Mahadambe Dam not yet defined Heightening, Leakage of Dam Investigations for Check of Pothuwilla Dam not yet defined Dam Stability Investigations for an approx. NWPC- Canal/ not yet defined 200m long tunnel (design ICB2 Tunnel Trace change) Aqueduct 1 Boreholes (3) Boreholes (6) Tunnel 1 KMTC- Seismic Refraction Survey Tender for investigations ICB1 Aqueduct 2 Boreholes (3) issued on 28.01.2016 Tunnel 2 Boreholes (2) Laboratory Rock Mechanics Testing UEC- Kongetiya Level Investigations for dam not yet defined ICB1 Crossing heightening

Boreholes (4) Auger Holes (3?) Tunnel 3 Outlet Test Pits (4?) Under preparation UEC- Field Permeability ICB2 Seismic Refraction Survey Will be finalised following Tunnel 3 Trace Boreholes (?) GeoConsult input Soil Testing Laboratory Rock Mechanics Testing Investigations for several UEC- Canal/ not yet defined level crossings (heightening ICB3 - 5 Level Crossings of dams) NWPC- Investigations for canal NCB2 - 6 Canal Alignment not yet defined alignment (Stage 2)

111. Investigations for the 3 existing dams that will function as level crossings along the UEC (Kongetiya, Bogahawewa, and Madthewa) and the requirements associated with raising or modifying them are not yet defined. Additional investigations were recommended by the PPTA in

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October 2015 at the partially constructed Kongetiya Level Crossing.17 If these dams are to be included in the scope of work of PMDSC (see also Section 5.6), additional investigations will need to be carried out with the aim of establishing the current stability as well as the design of any stabilisation measures to be included in the Program in addition to the foreseen heightening of the existing dams where required.

4.4.2 Designs 112. Since Program commencement in December 2015, a series of internal meetings among national and international PMDSC staff has been held, which addressed topics on potential design optimization related to the following packages:

• MLBCR-ICB-01 • NWPC-ICB-01 • NWPC-NCB-01 • NWPC-NCB-06 • UEC-ICB-01 • UEC-ICB-02 • KMTC-ICB-01

113. Separate meetings focussed on potential refinement of the hydraulic design of the UEC. Subsequent to these meetings, additional hydraulic calculations have been conducted by the PMDSC to verify the canal’s discharge capacity under conditions of increased roughness of the concrete lining surface, for instance caused by aging, and more conservative local minor losses, for instance at partially clogged trash racks. Although these calculations are not yet finalised concerning the extent of segmented lining in UEC Tunnel 3 (i.e., the TBM tunnel), which is still being investigated, they indicate that the invert of the UEC should be raised at Moragahakanda Dam by 1.5 m in order to safeguard water supply at design discharge to Huruluwewa Reservoir, and towards to the NCPC. These calculations and recommendations have been included in the PMDSC’s Special Report No. 1, which was submitted to the PMU on 9 February 2016. The PMU is now requested to contact the PD (Moragahakanda), who should then coordinate with SinoHydro, the contractor constructing Moragahakanda Dam, the necessary modifications in the area of the spillway stilling basin. No information has been received on the model testing recommended in October 2015.

4.4.3 Tunnel Optimisation 114. One of the technical meetings was dedicated to Mahakithula Inlet Tunnel (Package NWPC- ICB-01), where optimisation options were discussed in detail, with reference to BoQ Section 3.2.4 on “Tunnelling by Drill & Blast Method” and related drawings.

115. It was seen on the drawings related to tunnel excavation and rock support that there is a large number of rock classes. Instead of the currently envisaged 8 classes, 5 classes are normally sufficient for the rock conditions assumed to be encountered. Fewer rock classes will simplify procedures on site and reduce the risk of mistakes when selecting rock support items for application inside the tunnel.

116. Another identified issue relates to the cast concrete lining in the area of the water passage of the tunnel, as currently designed. This lining is considered dispensable since the discharge is moderate and the tunnel profile with 4.40 m width and height is rather small. Hence, slightly

17 Recommended field investigations include 3 boreholes on the centreline of the embankment spaced at the locations stn. 0+360, 0+560, 1+170, with depths of 10 m, 6 m and 15 m, respectively, and standard penetration tests (SPT) and percolation tests (on undisturbed samples) should be carried out in order to properly assess the geotechnical conditions of the existing embankment. These investigations have not been carried out to date.

Program Management, Design and Supervision Consultant Page 29 Page Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT enlarging the profile to compensate for the increased roughness of the unlined tunnel walls will not lead to significant additional costs, while a considerable saving is gained by omitting the lining and by shortening the construction period.

117. The increased profile will also improve conditions during construction of the tunnel, mainly with respect to the operation of machinery and vehicles and installation of ventilation ducts in the tunnel roof. If the profile is designed for a flow velocity in the order of 1.5 m/s, erosion will not occur in good rock conditions. Weak rock would require a shotcrete lining in the area of the tunnel walls, which is easily implemented with the shotcrete equipment being available already. The tunnel invert would still be designed with a cast concrete slab to reduce hydraulic losses and to facilitate tunnel maintenance. However, in contrast to the current design the invert slab would remain unreinforced.

118. Following the design approach outlined above, the BoQ can be simplified by deleting the items related to formwork and reinforcement. It is intended that shotcrete would be reinforced with steel fibres, which is quicker and easier to use than the presently envisaged welded fabric mats.

119. Omission of the concrete lining should be considered for the tunnels on the KMTC, as a cost saving measure, where the design discharge is much higher than for the NWPC, but where sufficient head is available. Under these conditions a slight increase of the tunnel gradient would be preferred, rather than an enlargement of the tunnel profile. Moreover, application of a so-called “horseshoe” excavation profile with inclined side walls (i.e., conical towards the invert – see Figure 7) instead of the “D-shaped” excavation with vertical walls as currently shown on the drawings is recommended for unlined drill and blast tunnels with a diameter of more than 5 m. The invert width should not be less than 4 m. Measurement facilities also need to be incorporated in KMTC.

Figure 7: Typical Horseshoe Tunnel Profile

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120. Horseshoe profiles are advantageous compared with D-shaped profiles because they reduce stress concentrations in the rock around the lower corners and the entire profile, which potentially reduces rock support requirements (quantities) in poor rock conditions. This is of particular importance for tunnels with high overburden, i.e., high in-situ rock stresses.

121. The ToR for the Rock Mechanics Engineer and Senior Mechanical Engineer (TBM) have been revised as proposed in Annex H to properly reflect the responsibility of the Consultant and the Contractor(s), such as preparing method statements for the use of explosives.

4.4.4 Commencement of Tender Design Review 122. Design review has commenced for most of the civil works packages, including:

(i) MLBCR-ICB-01: Heightening of Minipe Anicut including Water Control & Measurement Facilities for Left Bank & Right Bank Canals (ii) MLBCR-NCB-01: Rehabilitation of Minipe LBC, Stage 1 from 0+000 km to 30+140 km (iii) MLBCR-NCB-02: Rehabilitation of Minipe LBC, Stage 2 from 30+140 km to 49+820 km (iv) MLBCR-NCB-03: Rehabilitation of Minipe LBC, Stage 3 from 49+820 km to 63+650 km (v) MLBCR-NCB-04: Rehabilitation of Minipe LBC, Stage 4 from 63+650 km to 73+960 km (vi) NWPC-ICB-01: Construction of Mahakithula Inlet Tunnel, Mahakithula & Mahakirula Reservoirs, Feeder Canal of Length 3.66 km from Mahakithula to Mahakirula Reservoir (vii) NWPC-NCB-01: Improvements to Wemedilla LB Main Canal up to Nebadagahawatta from 0+000 km to 5+250 km (viii) NWPC-NCB-06: Main Canal from Dambulu Oya to Wemedilla (ix) UEC-ICB-01: Construction of Upper Elahera Canal from 0+000 km to 6+226 km (x) KMTC-ICB-01: Kalu Ganga - Moragahakanda Transfer Canal

123. Packages (ii), (vi) and (ix) have already obtained conditional approval from ADB and will be included in the Tender Design Review Report (TDRR), which is currently under preparation. All subsequent packages will be reviewed and then completed, and will not form part of the TDRR. The most important topics identified in the course of the tender design review are listed below.

124. It is noted that the ToR indicated the status of design preparation for three of the Project 1 packages was “Advanced,”18 and further, that feasibility-level designs were prepared for the packages comprising Projects 2 and 3. As explained in the technical proposal for Task 2, the PMDSC logically expected that the advanced status of the Project 1 packages meant that the detailed designs that had been prepared by MMDE would therefore be construction-ready, except for marginal improvements and enhancements to be identified in the TDRR. The PMDSC prepared their work plan on the basis that the available feasibility-level designs for Projects 2 and 3 would not have substantial critical errors or deficiencies that would preclude the preparation of the detailed engineering designs and contract packages without extensive re-designing. It is noted that bidders were invited to inspect the status of the bid packages during preparation of the PMDSC proposal, and our staff did participate in the pre-bid meeting and site inspections of project sites. Design work and finalization of the Tranche 1 packages continued after the bidding period for the PMDSC. It was confirmed by the PMU during contract negotiations that the Detailed Design Report, bid documents and tender drawings for the Tranche 1 packages were 100% completed. In fact, the status of preparation for the designs and bid documents for some packages have not met these criteria. This has significant implications for the level of additional resources that will be required by the PMDSC for Tasks1, 2 and 3 compared to duration of activities planned for finalization of the bid documents.

18 According to Table 2 in the RfP “Advanced” means the detailed engineering designs are near completion, tender documents have been prepared, and the tendering process is underway.

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4.4.4.1 Package MLBCR-ICB-01

125. At Minipe Anicut, a new silt ejector will be designed in the centre of the anicut. Access to the ejector for operation (opening and closing of the gate) and maintenance was foreseen by boat from the upstream side. Since access by boat is considered unsafe for the operations personnel, an access walkway (“passerelle”) will be introduced, leading from the left bank retaining wall to the silt ejector. The walkway will be arranged as a cantilever on the vertical upstream face of the heightened weir, sufficiently deep to prevent undue hydraulic interference with weir overflow. The walkway will be 80 cm wide and will be protected on the reservoir side by a 1 m high wall.

4.4.4.2 Package UEC-ICB-01

126. One important issue identified is modification of the design of the first reach of the UEC downstream of the Moragahakanda Dam. It will be necessary to eliminate the risk of overtopping of the river banks into the canal during floods, and to ease space constraints for access roads and power lines. Subsequent to a site meeting held on 8 December with PD Moragahakanda, modifications were proposed to the initial reach of UEC to resolve the site issues. This will be achieved by a new cut-and-cover section of the canal between chainages 0+100 km and 0+592 km. To control the inflow into this canal section, a head regulator (currently not foreseen) will be designed.

127. As noted in Section 4, Section 4.4.2, modifications will be needed to the stilling basin downstream of the Moragahakanda UEC outlet in order to assure maximum head availability for conveying UEC water to the NCPC. The stilling basin is not in the scope of the PMDSC and close coordination will be needed with the PD Moragahakanda about interface issues.

4.4.4.3 Package UEC-ICB-02

128. The final position of the outlet portal of Tunnel 3 (i.e., the TBM tunnel) is presently under discussion. It would be desirable to prolong the tunnel and to shift the portal downstream, towards the north, to avoid paddy fields in the area of the deep construction pit for the TBM. However, the results of geoelectric soundings conducted in August 2015 are rather unfavourable in the area of the extended tunnel and the construction pit. Currently, a small-scale geotechnical investigation program has been initiated to confirm the results of the geoelectric soundings. The final location of the portal will be fixed depending on the results of the new investigations.

129. As indicated in Section 4.4.2, the type and extent of tunnel lining is not yet confirmed for Tunnel 3. Being a very long tunnel with rather low rock cover, a number of partly contradictory factors play a role in the definition of the tunnel lining, these are

• TBM design and construction aspects • Geological, hydro-geological and geotechnical boundary conditions • Material handling aspects • Civil design and hydraulic issues • Environmental impacts, mainly with regard to minimising adverse impacts for residents living above or close to the tunnel alignment • Economic aspects

130. From an engineering point of view, a segmental lining installed by the TBM would in many respects represent the safest solution. The PMDSC’s tunnel engineers are scheduled to arrive in Sri Lanka shortly and dealing with this subject will be one of their main tasks.

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4.4.4.4 Package NWPC-ICB-01

131. Several modifications have been identified to optimise the layout of this package. These include adjustments to the alignment of the Mahakithula Dam and the irrigation outlets on Mahakithula and Mahakirula Dams.

132. Alignment of the Dam Axis of Mahakithula Main Dam. The axis alignment of the long southeast section of the main dam is considered unfavourable in the area of the left abutment, where it connects to the topography at an acute angle, forming a small, almost isolated pond in the reservoir. Slightly rotating the dam axis with a centre at the right abutment (i.e., at the hill between both dam sections) towards the north will shorten the dam axis and allow better connection of the dam to the topography and also better approach flow conditions to the spillway, which is located in this area. This rearrangement of the dam axis requires a modification of the alignment of the Inlet Canal to Mahakithula in the area between the tunnel outlet portal and the reservoir, in order to shift the canal entrance away from the dam. Further optimisations of the dam axis are being investigated currently, which may even avoid the intermediate hill.

133. Arrangement of irrigation outlet crossing Mahakithula Main Dam. Currently the irrigation outlet is designed in the short northwest section of the main dam at chainage 1+800 km and at sill el. 188.00 masl. This layout of the irrigation outlet sluice requires:

• The downstream canal to have a number of drops to connect it to the natural stream leading to Pothuwila Reservoir • An additional short canal section to connect it to the natural stream leading towards Hakwatuna Oya Reservoir

134. If the outlet is shifted by 400 m to chainage 1+400 km (i.e., into the long southeast section of the main dam, close to its right abutment) and the sill level lowered by 6 m to el. 182.00 masl, the drops and the extra canal section could be omitted.

135. Arrangement of Irrigation Outlet crossing Mahakirula Dam. The right bank irrigation outlet (located at the right dam abutment) to Galgiriyawa is currently designed with a sill level of 170.00 masl. It may be lowered by 8 m to el. 162.0 masl. With this arrangement, the sluice can be used also for river diversion during dam construction. Moreover, the currently designed bottom outlet crossing the dam would become redundant and could be omitted.

136. The alignment of the first metres of the canal (d/s of the RB irrigation outlet) will be shifted south, i.e., closer to the river, to avoid a forested area in the wildlife reserve.

4.4.4.5 Package NWPC-ICB-02

137. Potentially beneficial modifications have been identified to optimise the canal alignment between Wemedilla and Mahakithula Inlet Tunnel.

• Ch. 8+900 km to 9+300 km: Replace open canal by tunnel and cut and cover canal • Ch. 14+000 km: Replace aqueduct by a short tunnel cutting through the rock ridge • Ch. 17+500 km: Shift canal southwards to saddle to avoid high fill and to avoid Galapitha Wewa

138. These refinements will be further investigated and implemented if benefits are confirmed and the changes are practicable.

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4.4.4.6 NWPC-NCB-06

139. A comment was received from CEA regarding river diversion not being considered properly in the design of Dambulu Oya Diversion Weir. In consequence of this justified comment, the weir structure (currently located in the river bed) will be shifted laterally by about 25 m to be located on the left bank of Dambulu Oya, where it can be constructed in dry conditions while river flow remains undisturbed. After completion of the weir structure, upstream and downstream connecting canals will be excavated and river flow will be taken through the structure. Subsequently, the Dambulu Oya will be closed with a permanent dam. An additional drawing will be provided to demonstrate the design and sequence of the river diversion. The new position of the weir structure is also advantageous in terms of straightening the river course and thereby improving approach flow conditions to the weir.

4.4.4.7 KMTC

140. A bench flume is currently foreseen just upstream of Aqueduct No. 1, at Chainage 0+800 km. It is located in a curved canal section, which is not favourable in terms of measuring accuracy. The bench flume will be replaced by a broad crested weir, which will be shifted about 100 m upstream, where the canal is almost straight.

141. The feasibility design of the KMTC includes reinforced concrete walls and a slab floor. The design will be reviewed to determine whether the wall thickness can be reduced or replaced with shotcrete, depending on rock support requirements. 4.5 Task 3 – Contract Management, Construction Supervision, Commissioning and Operation

4.5.1 Tenders Floated 142. At the time of writing the only package for which bids have been invited is MLBCR-NCB-1, which is for the rehabilitation of the first 30 km reach of the Minipe Left Bank Canal.

4.5.2 Imminent Tenders 143. The next packages for which bids will be invited are those for a section of the canal system in NWPCP, NWP-NCB-1, and for the first reach of the main UEC north of Moragahakanda, UEC-ICB-1. 4.6 Task 4 - Capacity Development and Training Implementation

144. The PMDSC formal inputs for this task had not yet commenced at time of writing, but the national and international institutional strengthening specialists were brought into contact with one another remotely to map out an initial approach to their work. The proposed approach is presented in Section 5.7. 4.7 Task 5 – Communications

145. Similarly to Task 4, formal inputs had not yet commenced at the time of writing but national/international communications specialists were introduced to one another and have exchanged views on an appropriate approach. The result is put forward in Section 5.8. 4.8 Task 6 – Preparing a Strategic Environment Assessment (SEA)

146. Work on this task has just commenced at time of writing. Early contact was arranged between the environmental specialists responsible for the SEA and the Environmental Specialist in the

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Resident Mission of the ADB in Colombo. A preliminary note on the strategy to be adopted is shown in Section 5.9. 4.9 Task 7 - Preparation of Phase 2

4.9.1 Route Selection 147. The ToR require the PMDSC to review two route options before selecting the preferred route in consultation with the PMU, and then preparing the designs for the associated investments to feasibility level. The two options are described in the ToR as follows:

• Option 1 will transfer water from the Randenigala Reservoir to the Kalu Ganga Reservoir via the planned Randenigala – Kalu Ganga Transfer Canal (RKTC) that will comprise a 40 km long series of open canals and tunnels. This includes two new reservoirs located along the RKTC route at the Hasalaka and Heenganga Rivers. The Hasalaka Reservoir will have a 70 m tall RCC dam and 28-MW HPP, and the Heenganga Reservoir will have an 80-m tall dam and 5.5-MW HPP. Other associated infrastructure is also included such as access roads and power transmission lines, etc. • Option 2 will transfer water from Polgolla Barrage to the Moragahakanda Reservoir via a new tunnel and enlarged tailrace canal to the Bowatenna Reservoir. This option also includes the heightening of the Kothmale Reservoir by 25 m to increase system storage. The existing facilities at the Polgolla Barrage and Bowatenna Reservoir will also require upgrading to manage the increase in flows.

148. Progress to date has included initiation of a review of literature of the options, as presented in previous studies, most notably as part of the World Bank Dam Safety and Water Resources Master Plan, which included a report19 on route options for water transfers to the north as part of an updated of the Mahaweli Development Plan.

149. Prior to the preparation of the PPTA, the ARSP water balance model (see Section 5.11) was used to determine transfer volumes, supply reliability and energy production. However, this work was confined to the Option 1 route, therefore during the current inception phase work has been initiated on modelling of the Option 2 route within the context of the MWSIP objectives, i.e., to meet the required levels and reliability of water transfers and sustained energy production.

150. This water balance simulation work is ongoing. To-date five scenario simulations have been prepared, based on the same time series as used for the earlier modelling work. The scenarios comprise different combinations of the two key infrastructure improvements, heightening of Kotmale Dam to increase storage volume and a second Polgolla Tunnel to increase transfer flow rate, which may have different outcomes in supply volume and reliability.

151. The simulations to be analysed are:

• Run 31A: existing Kotmale Dam and existing Polgolla Tunnel • Run 32A: heightened Kotmale Dam and existing Polgolla Tunnel • Run 33A: heightened Kotmale Dam and second Polgolla Tunnel • Run 34A: existing Kotmale Dam and second Polgolla Tunnel • Run 35A: heightened Kotmale Dam, second Polgolla Tunnel, and the proposed expansion of the Victoria installed capacity by 210 MW (for peaking generation)

19 Updated Mahaweli Water Resources Master Plan, Dam Safety Water Resources Planning Project, Multi Sector Water Resources Planning Component 3, prepared for Ministry of Irrigation and Water Resources Management by SMEC International, Nov 2013.

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152. The initial results show that Option 2 is unfavourable for the following reasons:

• Supply reliability is below critical threshold levels for all scenarios and in Yala season there would be frequent ‘supply failures’. • There would be low average annual water levels in the reservoirs on the Mahaweli Ganga downstream of Polgolla, Victoria and Randenigala, which would impact on energy production. • Peaking operation of Kotmale Power station would be limited to three hours. • Peaking operation of Victoria (with the expansion) would be limited to three hours. • There would be a need for increased duty and annual volume of the Kalinga-Nuwara Pump Station to compensate for additional diversion from the Amban Ganga (to the UEC).

153. In summary, the preliminary results obtained to date indicate that the Option 2 route is unlikely to be meet the equivalent supply reliability (of the Option 1 route) for the transfer water volumes for the program irrigated areas and drinking water supply. If this route were found for other reasons (social, environmental or financial) to be strongly preferred by MMDE and other stakeholders, consideration would need to be given to a reduction of the command area and levels of drinking water supply to ensure supply can reliably meet demand. However, this would comprise a significant change to the MWSIP objectives and would require the PMU, ADB and government approvals. It is to be noted that the results are preliminary and work is continuing on scenario modelling.

4.9.2 Modelling 154. Section 5.11 describes the proposed general approach to model development. This current section describes progress made to date. The first step in the baseline assessment was to meet with each authority able to provide substantial data input. A template list was set up and sent to each authority after an initial meeting to facilitate collection of data availability. Related activities to date are summarised in Table 2.

Table 3: Initial Meetings with Authorities

Initial Meeting and Receipt of Data Availability Authority Request List Water Management Secretariat 19 Jan 2016 (WMS), Mahaweli Authority Hydrology Division 21 Jan 2016 25 Jan 2016 (discharge) Department of Irrigation Water Management Division 21 Jan 2016 Department of Irrigation Data Archives Division 21 Jan 2016 21 Jan 2016 Department of Meteorology Agrometeorological Division 21 Jan 2016 Department of Meteorology Mahaweli Hydropower Complex 28 Jan 2016 Ceylon Electricity Board

155. In terms of current water management strategies, initial discussions revealed the following:

• WMS and CEB consider daily time-step as more appropriate for water balance and allocation modelling, as short-term decisions or events should reflected in the model, to the extent possible. For special purposes, i.e., flood management for WMS and hydropower peaking for CEB, an even shorter time step, i.e., hourly, may be introduced. However, both agree that this time step is not required for mid-term (seasonal) and short-term (weekly) planning, which is the main purpose of the water management and allocation model.

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• Present spatial resolution is deemed sufficient and adequate to understand and analyse system behaviour. • WMS reported that there is no added benefit in knowing precise water levels and flow velocities at specific locations (e.g., river, channels, and secondary branches) within the system. Thus, a high-resolution hydraulic model does not seem required, in part due to the enormous amount of field data needed to set up and calibrate such model (see also Section 5.10). • The irrigation demand model needs the capability to consider different cultivation periods/ pattern for individual crops, including staggering. • WMS would like to have remote monitoring capability for displaying real-time system conditions, but not necessarily for system operation. • Forecasting capabilities would be useful.

156. A further meeting was arranged with WMS on 27 January 2016 to focus on the existing models and modelling needs. WMS has noted that the present Mike-Customised model is not in a condition that allows for application, and it is not clear whether there is additional efforts within the dam safety planning project to rectify these deficits, which include:

• The irrigation demands cannot adequately be determined. • The rainfall-runoff model is encapsulated in the model without stand-alone capability, and therefore does not allow for flexible application (e.g. forecasting) or verification of performance. • The spatial extent of the model is fixed to the present extent of the applied Acres ARSP model and present known developments (e.g., Moragahakanda, Kalu Ganga, KMTC). Thus, any new structures cannot be integrated, and adjustments to the existing setup are also limited, if possible at all.

157. Further meetings with WMS may become necessary to ensure that formulated needs are met and development of the models is in line with WMS expectations (WMS being the responsible body for water management and allocation planning), and also with the other major stakeholder, CEB.

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5 DETAILED WORKPLAN, ACTIVITIES, STAFFING AND TASKS

5.1 Current Status

158. The PMDSC’s approach, methodology and scope of services are presented in Form Tech-3 and Tech-4 of the Consultant’s technical proposal. This Inception Report provides recommendations whereby the workplan of the PMDSC is to be modified or updated to minimize potential diversion from targeted dates of key milestones, while meeting the government’s objectives. The PMDSC’s detailed workplan is presented in Annex D.

159. As noted in Section 1, at the time the ToR were received by the Consultant in March 2014 it had been assumed that several packages would have been tendered prior to the PMDSC services being commenced, and that construction would be in progress, so that there would be a higher emphasis at inception stage on the Task 3 activities. In fact no packages had been tendered by the start of the PMDSC activities and the focus has rather been on reviewing and completing bid documents for issue as early as reasonably possible, consistent with the completion of essential modifications.

160. The PMU and ADB have indicated that priority needs to be given to the issue of bid invitations and the construction of Tranche 2 works, which comprise the TBM Tunnel 3 of the UEC and the KMTC link, currently both components of UEC-ICB-2. Although no formal Addendum or acceleration instruction has been received to date, the PMDSC has started investigating the implications of such changes in sequence compared with the planning on which the current PMDSC Agreement is based. Further details are given in succeeding sections. 5.2 PPMES and MIS

161. The start of construction activities has not happened as fast the schedule envisioned in the PMDSC’s ToR. This has temporarily delayed the need to fully deploy the Management Information System (MIS) and the Project Performance Management Evaluation System (PPMES). In close consultation with the PMU, the PMDSC will support development of an MIS that addresses among other things, individual and overall contract implementation schedules and budgets (planned and actual), project operational performance, operation and maintenance, safeguards and human resource development. The PPMES will include a participatory baseline survey to be conducted within the first year of the Program, with follow-up surveys to evaluate any changes. Surveys will target direct and indirect stakeholders and beneficiaries. The PMDSC will collect necessary data, monitor and routinely evaluate project implementation results and impacts as part of the MIS Monitoring and evaluation of pro-poor effects of the project will also be integrated into the PPMES. Manuals for the MIS and PPMES will be prepared that shows users how to update and use the system.

162. Table 1 shows typical PPMES indicators and a framework that we will expect to discuss, agree and support PMU to implement.

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Table 4: PPMES Arrangement for the MWSIP

PROJECT PERFORMANCE MANAGEMENT SYSTEM (PPMES) Criteria Performance Indicators Unit/Event Monitoring and Evaluation of Project Outcomes Increase agricultural produc- Output per unit serviced area $/ha tion, food security and con- Output per unit irrigated area $/ha tribution to economic growth Output per unit irrigation supplied $/m3 Output per unit water consumed $/m3 Infrastructure Development Construct robust infrastruc- Detailed designs confirmed for advanced projects; prepared for Target dates ture without cost overruns Tranches 2/3 by agreed deadlines Bid documents prepared, tendered and contracts awarded Target dates Construction of Tranche 1 works Annual staged or % completion Construction of Tranches 2 and 3 works Annual staged or % completion Service Delivery Performance High performing Total annual volume of irrigation water delivery m3/year Annual irrigation water delivery per unit command area m3/year Annual irrigation water delivery per unit irrigated area m3/year Annual main system water delivery efficiency: total monthly Efficiency measured water delivery to water users/total monthly meas- ured water inflow to the irrigation system PROJECT FINANCIAL/ACCOUNTING MANAGEMENT SYSTEM (PFMES) Criteria Indicator Measure/Event Accounting/Financial Statements Accountability Annual financial statements and accounts Quarterly/Annual prepared itemizing all procurement Records of funding received from all sources Quarterly/Annual Expenditures incurred by category Quarterly/Annual

5.3 UEC Tunnel 3 Earlier Construction Start (Tasks 2 and 3)

5.3.1 Rationales 163. The TBM tunnel to be constructed under UEC ICB-2 lies on the critical path for completion of the NCPCP. The planning for it currently foresees its continuation after the completion of other components of the MWSIP, so that any action taken to reduce the time of completion of this component will also shorten the time to completion of the Program.

164. Although options, including the potential for and implications of using a second TBM, were preliminarily investigated during the PPTA, these are now to be reviewed by the PMDSC with additional specialist tunnel expertise, to see whether other feasible actions can be taken to reduce the overall time to completion. These reviews will re-visit assessments made during the earlier design phases of the potential for economic use of a second TBM to speed up tunnelling time, and of opening a second heading from the upstream end using conventional tunnelling technology, taking due account of environmental constraints, such as the disturbance of wildlife by the uncontrolled use of explosives.

5.3.2 Actions to be taken including Additional Investigations 165. The additional investigations for UEC-ICB-2 focus mainly on the outlet of Tunnel 3 of the UEC. The tunnel invert is located approximately 25 m below original ground level at that location, which means that a comparatively large and deep construction pit has to be excavated to allow the erection of the TBM. Therefore, not only does the surface of fresh rock have to be investigated, but also the characteristics of the overlaying soil layers have to be determined for the design of the construction pit (e.g., slope angle, support, dewatering, etc.). Soil and rock samples therefore have to be taken and analysed to determine the corresponding properties.

166. Furthermore, the additional investigation campaign has to lay emphasis on critical areas along the tunnel alignment, which may need additional or a more detailed investigation. The areas are identified according to the results of the geo-electrical sounding (areas of low resistivity), according

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5.3.3 Potential for an Early Start to Construction 167. In view of the requirement to review options for accelerating tunnelling progress, the scale of investigations still to be undertaken, the time required for the resulting design modifications and their approval by the PMU and ADB, and a realistic allowance of time between issuing invitations to bid and commencement of construction, an earlier start to construction than envisaged at the time the FAM cannot be confirmed at this time. It is expected that the final results from the additional investigations may take 6 months. 5.4 UEC-ICB-3 (6+226 to 17+900km) in Tranche 2

5.4.1 Rationales 168. At the request of the PMU and ADB in order to expedite the construction of the UECP, a section of the canal up to chainage 17+900km will be moved into Tranche 2. The PMDSC will prioritize the preparation of the bid documents, but the actual timing for this deliverable depends on the PMU’s approval of the PMDSC’s Contract Addendum, since the Kongetiya Level Crossing is situated in this section of the canal.

5.4.2 Implications for Resource Allocations 169. This will require the splitting of the original UEC-ICB-3 bid package into two sets of tender documents (with an additional UEC ICB package in Tranche 3), and consequentially will result in additional work for the PMDSC under Task 2, as well as under Task 3 for support during tendering. However, no additional claim is being made at this time for the Lump sum component of the Contract. 5.5 KMTC Advancement (Tasks 2 and 3)

5.5.1 Rationales 170. Impounding of Kalu Ganga and Moragahakanda Reservoirs is currently scheduled to be commenced by the end 2018. The stand-alone storage of Kalu Ganga Reservoir is sufficient, after augmenting its own command area, for transferring water to Moragahakanda Reservoir. Advancing the implementation of KMTC would have the following advantages: (i) construction work would be facilitated, as the sill level of KMTC at the downstream end is below the FSL of Moragahakanda reservoir; (ii) the enhanced water availability at Moragahakanda Reservoir capacity would:

• Facilitate meeting water demands in Polonnaruwa irrigation system, including additional water supplies to Kantale Reservoir for enhancing the irrigation supplies to the proposed sugar plantation expansion • Offer the opportunity to reduce discharges from Bowatenna Reservoir to Amban Ganga and Polonnaruwa Systems, thereby allowing diversion of the saved water through Lenadora Tunnel to (a) Kala Wewa and Nachachaduwa Systems, and (b) Kandalama and Huruluwewa Systems • Enhance the power generation capacity at Moragahakanda Dam

171. The government has requested the PMDSC to accelerate the implementation of the KMTC, so it is proposed that the tunnel designs and bid documents will be finalized during 2016, so that tendering can proceed in Q1 2017.

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5.5.2 Actions to be taken including Additional Investigations 172. The additional investigations for both KMTC tunnels focus on the portal locations (inlet, outlet) and areas of low cover. Boreholes are envisaged at these locations, to be drilled down to the invert level of the tunnel. Furthermore, an area was identified in which layers, probably of calcareous gneiss, strike out to the surface will be assessed. A borehole is proposed to investigate this layer and the associated risk of a potential waterway from the surface to the tunnel.

173. In addition to the portal locations of the tunnels, the foundation conditions of the aqueducts need to be investigated, e.g., rock levels are to be determined. Further, laboratory tests on rock samples will be performed to investigate the rock mechanical properties of the different rock types. Depending on the results, the design of the KMTC may have to be adapted. It is expected that the final results from the additional investigations may take 4 months after which designs can be adjusted accordingly. This is likely to involve the citing of the portals and the extent of cut-and-cover sections as well as the support measures in the tunnel. The aqueduct designs also require input from the results of geotechnical investigations.

174. It was agreed during the ADB Inception Mission that the original civil works package UEC-ICB- 2, which included UEC Tunnel 3 and the KMTC, would be split into two separate packages: UEC-ICB- 2A (UEC Tunnel 3) and UEC-ICB-2B (KMTC). This will involve preparation of separate sets of bidding documents and foresees the completion of construction of the second package (previously programmed for the period after completion of Tunnel 3 and after the period covered by the current PMDSC Consulting Services contract) to be commenced as soon as possible.

5.5.3 Implications for Resource Allocation 175. The construction supervision of KMTC is beyond the current scope of PMDSC’s work plan (see paragraph 174) and, now that it should be included in PMDSC’s responsibilities, it will require corresponding staffing resources to be added to those already provided for in the consultancy budget. For example, the ToR require continuous presence of the Senior Design Engineer (Dams and Tunnels) during tunnel construction. These provisions have been included in the revised staffing schedule in Annex G. It should be noted that the resource estimate is made on the assumption that the construction duration remains as previously planned: should this be extended the supervision resource requirement will increase accordingly. 5.6 National vs. International Design Standards (Tasks 2 and 3)

5.6.1 Dam Safety (ICOLD) 176. One important issue regarding the use of international design standards is the design discharge capacity of dam spillways. This refers both to existing dams on level crossings (see also Section 5.6.2), which are partly heightened and integrated into the canal system of the UEC, and to the new dams to be constructed on the NWPC. It is noted that the spillways of all dams on the MLBC, NWPC and UEC incorporate (or have been designed with) an ungated, free-overflow weir, which is an intrinsically safe configuration because it eliminates potential mechanical and electrical failures related to spillway gates.

177. However, these dams have been designed according to a Sri Lankan standards using design flood values with a modest return interval. In the understanding of the PMDSC spillways of small dams in Sri Lanka are currently designed for a flood with a return period of 1:200 years, if they are up to 9.1 m (or 30 ft) high, while higher dams are designed for 1:500 years. This design approach was originally based on the Sri Lankan design standard “Design of Irrigation Headworks for small Catchments” by A.J.P. Ponrajah, published by the Irrigation Department Colombo in May 1984. However, the return periods stated in Section 5.2 “Design Flood of Reservoirs” of this standard (1:50 years for dams smaller than 9.1 m and 1:100 years for dams higher than 9.1 m) have been increased in recent years as noted above in order to provide additional safety.

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178. Following this approach, a flood with a recurrence interval of 1:500 years was previously also selected for the MCB detailed design of the spillways on the new high dams on the NWPC (i.e., Mahakithula and Mahakirula Dams).

179. Of particular relevance to fulfilling a requirement to design to international standards is the requirement of the International Committee on Large Dams (ICOLD) in their Bulletin 82: “Selection of Design Flood” (1992). Its Section 4.9 “Design Flood Standards and Regulations” refers to guidelines of the Australian National Committee on Large Dams (ANCOLD) and of the US Army Corps of Engineers (USACE). Under both guidelines, one decisive criterion is the downstream flood hazard category, which is to be classified as “high” if loss of life is to be expected in case of dam failure. This category defines the return period of the spillway design flood, which then has to be selected using between 1:10,000 years and PMF for ANCOLD guidelines, and using PMF under USACE guidelines.

180. ICOLD standards classify the dams on the NWPC and UEC as “large dams”, either because of their height of more than 15 m or, if they are between 10 and 15 m high, because of their reservoir volume of more than 1.0 million m³ or their crest length of more than 500 m. For the dams pertaining to level crossings on the MLBC, these conditions are still being assessed.

181. We would propose categorizing the dams into “large” and “small”, because the large dams would receive more attention, mainly concerning any follow-on geotechnical investigations that may be required to fully assess their condition. A preliminary inventory of the dams identified in the MWSIP is shown in Table 5.

182. With regard to the selection of the spillway design discharge there are several important boundary conditions that are specific for the dams on the NWPC, on the UEC and on the MLBC:

• All these dams are earthfill embankments, which may not be overtopped. • Reservoir operation is generally not aiming for flood control, thus reservoirs have to be assumed to be at FSL when a flood wave enters. • The dams’ main purpose is provision of irrigation water, which means that farmers using their water are living immediately downstream.

183. These factors demand a safe design approach for the dams’ outlet devices, including the spillways. The spillway designs for Mahakithula and Mahakirula Dams would have to be modified to cater for a larger design flood according to ICOLD guidelines if international standards are to be met. Considering the fact that catchment areas of the reservoirs on the NWPC and UEC are generally small, no substantial increase of the spillway size is expected in order to accommodate a design flood that would satisfy the ICOLD standards addressed above.

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Table 5: Preliminary Classification of Embankment Dams in MWSIP

Classification Area Level Crossing / Dam L/S Remarks Hasalaka Wewa Large Due to reservoir volume and 28 km canal section Berabun Oya Small Minipe, 6 dams Ulpothagama Small Okirikotuwa Wewa Small Totillagasella Small Dunuweila Wewa Large Due to 22 km canal section Kongetiya Large Ponding at d/s toe and surface slips identified at site visit UEC, 3 dams plus Bogaha Wewa Small Hurulu Wewa Madeththa Wewa Large Ponding at d/s toe identified at site visit (Hurulu Wewa? No level Large Recent review done by Pöyry crossing as such) (Wemedilla- no level cross- Large Surface slips identified at ing as such) site visit Nabadagahawatta Wewa Small Nilagama Wewa Small Mahadambe Wewa Small Leak identified at site visit Jayalathgama Wewa Small Ihala Wewa Small Ulpotha Wewa Small Galketiyagama Wewa Small NWPC, 14 dams Kaduru Wewa Small plus Wemedilla Pothuwila Wewa Large Angarewa Wewa Small Edadukotte Wewa Small Wahukotuwa Small Bogolla Wewa Small Dikkanna Wewa Small Ihalawaththa Wewa Small Atawarala Wewa Small Ihala Wewa Small Konarage Wewa Small

5.6.2 Possible Scope Changes Relating to Existing Structures (Tasks 2 and 3) 184. The implications of spillway extensions are different for dams that are still in the design stage, such as the new dams in the NWPC described in the previous section, and for dams that already physically exist. A number of existing dams will be integrated into the canal system of the MLBC, the NWPC and the UEC. Some of these dams will be heightened, for instance Mahadambe Wewa on the NWPC, while others remain unchanged, for instance Pothuwila Wewa, also on the NWPC. Sri Lankan standards have been used for the selection of the spillway design flood of these dams. These standards are less demanding than the guidelines of ICOLD, which are generally invoked when meeting international standards (as required by the PMDSC’s ToR).

185. In this context, reference is made to ICOLD Bulletin 142 “Safe Passage of Extreme Floods” (2012), Section 1.1 “Importance of the Subject.” The following text appears in this reference: “A major reason for the reported cases of severe problems is overtopping, notably in earth, rockfill dams (31% as primary cause, 18% as secondary cause), and masonry dams (43%). A majority of cases of overtopping was due to inadequate spillway capacity (71%).”

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186. For existing dams on level crossings or other dams that become part of the MWSIP, ICOLD Bulletin 59B “Safety Improvements of Existing Dams” (1998), would be relevant. For these dams the validity of hydrological parameters would have to be reassessed (reconfirmation of the flood hydrograph). Reference is also made to ICOLD Bulletin 125 “Dams and Floods” (2003), Section 7.4 “Hydrological Safety of Existing Dams”, which states on page 211: “Bulletin 59B indicates that “the criteria for determination of the design flood for an existing dam are intimately linked to safety philosophy”, and, in general, the “Hydrologic deficiency of a dam requires re-analysis based on current standards.” For existing dams, irrespective of whether they are being raised or remain unchanged and are just being integrated in the canal system of the MWSIP, an increase of the spillway size would automatically lead to higher costs, which are not included in current estimates.

187. Considering the apparent incompatibility of Sri Lankan standards with ICOLD guidelines in terms of the spillway design flood, and the fact that some of the existing dams to be integrated in the MWSIP are not in a good state of repair, it seems appropriate to review basic parameters used in their design; however, this is outside the present scope of work of the PMDSC.

188. This also refers to the stability calculations, which, for older dams, have been prepared on the basis of the Sri Lankan standard “Technical Guide Lines for Irrigation Works” by A.J.P. Ponrajah, published by Irrigation Department in October 1988. Only in recent years, USACE Standard EM 1110- 2-1902 “Slope Stability” (2003) replaced the previous Sri Lankan standard. Stability analyses of Mahakithula and Mahakirula Dams have been based on the cited USACE standard, which is acceptable. Generally, dam stability should fulfil the requirements of either USACE EM 1110-2-1902 or of Eurocode 7.

189. During PMDSC’s site visit in December 2015, the majority of dams on level crossings of the NWPC and UEC were inspected, at a time when their reservoirs were at FSL due to heavy rains in the weeks before, and overflow on some spillways had started. Not all embankments were found to be in perfect condition: some have relatively steep slopes and showed very dense vegetation on the downstream side, preventing visibility and inspection. Wet spots were detected at the downstream toe of Madeththa Wewa (UEC), a localized leak of about 4 l/s was found at Mahadambe Wewa (NWPC) and a number of surface slips were observed on the downstream shoulder of the relatively new Wemedilla Dam (NWPC).

190. The conclusion of the PMDSC is that additional effort needs to be invested in examining the existing structures that will become part of the expanded Mahaweli System as described in the following sections.

5.6.3 Kongetiya Level Crossing 191. The Kongetiya Level Crossing is the first level crossing on the UEC starting at chainage 3+850 km. The embankment is designed as an earthen embankment with a length of 1,562 m and a maximum height of 12 m. The upstream side will have armouring to protect against wave erosion and a small toe drain is foreseen on the downstream side. A gated outlet on the right side of the embankment will provide irrigation supplies to downstream riparian users and an overflow spillway will be constructed on the left side of the embankment (capacity = 6.4 m3/s). The construction of the adjacent saddle dam, with a length of 581 m and a maximum height of 11 m, has not yet started.

192. Due to the prolonged period that the embankment has been under construction, severe erosion of the top layer and embankment slopes has occurred. In some places the erosion gullies are over 1 m deep.

193. Recommended follow-up actions include:

• Field investigations = 3 boreholes on the centreline of the embankment spaced at the locations stn. 0+360, 0+560, 1+170, with depths of 10 m, 6 m and 15 m, respectively. Standard penetration tests (SPT) and percolation tests (on undisturbed samples) should be

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carried out in order to properly assess the geotechnical conditions of the existing embankment. • Once the results from these field investigations are available, including a representative grain size distribution of the constructed material, they should be jointly reviewed by the PMDSC and PIU as the basis for finalizing the design. • It is already apparent though that a significant amount of the existing embankment slopes will have to be removed and reconstructed. Similarly, the top gravelly layer of the embankment will have to be removed in order to prevent a pervious layer being present at the existing elevation after construction. • The armouring needs to be extended downwards from the minimum operation level and instead go all the way down to the invert elevation of the Upper Elahera Canal where it will discharge into the level crossing.

5.6.4 Implications for Resource Allocation 194. It is proposed that the assessments recommended for dams include the following under Task 1:

Large Dams Site visit with visual inspection Geotechnical investigations (one drill hole, some in-situ and lab tests) Check of dam stability (using “Slide” software) Statement concerning spillway capacity

Small Dams Site visit with visual inspection Statement concerning dam stability Statement concerning spillway capacity

195. The estimated resources for this additional scope includes:

• Geotechnical Investigations Engineer, International (+2 MMs) • Modelling Specialist, International (+2 MMs) • Assistant Geologist, National (+ 8 MMs)

196. Re-running the stability calculations for older dams with steep slopes would require detailed information about the as-built dam geometry and about geotechnical parameters of the dam foundation and the dam embankment. If this information is not available or if there are doubts regarding the correctness of data, new surveys and geotechnical investigations would have to be initiated.

197. Since reliability of geotechnical investigation results conducted in earlier project phases is often questionable, a new small-scale (and inexpensive) geotechnical investigation program should in any case be implemented on each existing dam, if not already envisaged. The investigation program would begin with a field survey to evaluate the general condition of the dam (leakages, small slides, vegetation, etc.) and to already identify, where possible, critical areas which may need a more detailed investigation. Otherwise the investigation would mainly consist of at least one drill hole in the area of the deepest dam cross section, with undisturbed sampling for assessing the shear strength of the embankment material, accompanied by standard soil testing (particle size distribution, Atterberg limits, etc.). It is also advisable to conduct some Standard Penetration Tests (SPT) along the dam axis to evaluate the compaction along the dam axis. Furthermore, the SPT blow counts could also be used to estimate the shear strength. An inventory of all existing dams integrated in or affected by the MWSIP is currently under preparation (including the dams on the MLBC) to obtain an overview of the situation. If the condition of these dams is to be assessed and

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198. Additional resources would be required if all existing dams that will become part of the MWSIP (independently whether they are heightened or assumed to remain unchanged) are to be reassessed in terms of dam stability and spillway design flood under PMDSC’s responsibility. Assessment of the costs of these investigations could be made once the inventory of existing dams in the system is complete.

199. For the Kongetiya Level Crossing it is proposed that the PMDSC take over the responsibility for carrying out the required investigations program and finalizing the design for the heightened embankment. The additional staff resources for this have been included in the revised staffing schedule and comprise: Geotechnical Engineer, International (+1 MM), Senior Canal Designer, International (+2 MMs), and Senior Canal Designer (+1 MM). 5.7 Capacity Development Strategy (Task 4)

5.7.1 Approach 200. In order to address properly the specific needs for capacity development for program development – managerial and technical skills – the PMDSC will carry out an initial situational analysis of the institutions and stakeholders involved in the MWSIP and the approach by Potter and Brough (2004)20 using the term “system capacity” which recognises that capacity deficiencies are seldom limited to single technical, organisational, institutional or infrastructural weaknesses, but rather that in most cases a combination of several different elements contributes to a capacity limitation. This will be the optimal approach to ensure that all gaps are captured in order to ensure well founded decision making, efficient management and better productivity.

201. The systemic approach is specifically suited to explore interfaces of large broad projects, where several main stakeholders and external decision makers may influence central water resource management organisations, such as MMDE, MASL and ID in matters related to effective management and operation. The approach is also suited to the analysis of which tasks are best suited to be performed in-house and which tasks that should be out-sourced or contracted out. The situational analysis, with a subsequent detailed training needs assessment, will also provide the foundation for capacity development activities, so that outputs, expected results, impact and outcomes can be formulated, then implemented and finally monitored.

202. Potter and Brough (2004) recognise that “capacity development” or business improvement is the objective of many programs and a component of most others, however satisfactory definitions remain elusive and it is widely suspected of being too broad a concept to be useful, as they state: “Too often it becomes merely a euphemism referring to little more than training”. They argue that it is more important to address systemic capacity development, based on a combination of nine separate, but interdependent capacity components:

• Performance Capacity (tools): Are the tools, money, equipment, consumables available to do the job? • Personal Capacity (skills): Are the staff sufficiently knowledgeable (any gaps), skilled and confident to perform properly? It is probably also required to address the mind-set to operate efficiently.

20 Systemic Capacity Building: a Hierarchy of Needs; Potter, Christopher and Brough, Richard, Oxford University Press (2004). http://heapol.oxfordjournals.org/cgi/content/abstract/19/5/336

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• Workload Capacity (staff): Are there enough human resources with broad enough skills to cope with the workload? How many position is presently vacant? Are job descriptions practicable? Is the skill mix appropriate? • Supervisory Capacity (staff): Are there reporting and monitoring systems in place? Are there clear lines of accountability? Can supervisors physically monitor the staff under them? Are there effective incentives and sanctions available to keep staff employed? • Facility Capacity (infrastructure): Are offices large enough? Are equipment, vehicles, infrastructure drawings, maps, GIS databases and other needed facilities available and sufficient? • Support Service Capacity (infrastructure): Are there supply organisations, contractors, laboratories and quality control experts available? These may be provided by internal sections or by the private sector but they are required. • Structural Capacity: Are decision-making coordinated between the various institutions, are there forums where discussion may occur? • Systems Capacity: Do the flow of information, money and managerial decisions function in a timely and effective manner? Is information shared? Are proper filing and information systems in use? • Role capacity: Has sufficient authority and responsibility been given to make decisions essential for effective performance? Can purchases be made without lengthy delays for authorisation?

203. A capacity building plan should be based on the analysis of the whole hierarchy of capacity needs, following the four dimensions shown in Figure 8.

Figure 8: The Hierarchy of Capacity Needs

204. The effectiveness of one form of capacity depends and builds on the effectiveness of the other elements of capacity. Emphasising systemic capacity building would improve the diagnosis of shortcomings and lead to more effective use of scarce resources and will lead to the proposal for training on management, operation and maintenance routines for optimal program implementation and effective water resource management in according with principles of good sector governance.

205. The complete situational analysis will be conducted in close and obviously active participation of MMDE, MASL and ID and reported and presented in a wider forum to capture all comments and views on preliminary conclusions before being finalised.

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5.7.2 Training Needs Assessment and formulation of Training and Capacity Development Program 206. Based on the above situational analyses, a Training Needs Assessment (TNA) will be carried out to identify knowledge gaps and thereby key training areas, leading to proposed training and capacity development program, targeting staff of MMDE, MASL and ID. The emphasis will be on needs, since training, in order to be targeted and cost-effective, must be needs-based and demand- driven, as opposed to the supply-driven approach to training. The aim of the TNA will be to compare existing qualifications and experience of staff (both within project management and engineering and water resource management provision) with the required qualifications necessary to perform their duties in the MWSIP, and to help identifying the training interventions, developing or updating the course curriculum and identifying proper training institutions, which are needed to fill the gaps.

207. The required competencies will be derived from the overall objective of MWSIP and possible available staff specifications. Interviews will be conducted with relevant staff to assess the individual competencies and responsibilities. The TNA exercise will lead to the formulation of a detailed Training and Capacity Development Plan covering the whole range of managerial, administrative and technical tasks and duties. This plan will however need to be a “living document” that will need to be frequently updated to capture emerging capacity needs.

208. The management training will focus on practical management tools rather than the theoretical concepts of management and human behaviour often favoured by academics. To this end, training programs will include institutions and specialists who have first-hand experience of managing people, and – equally important – advocating and managing change.

209. Using the TNA and situational analysis, recommendations will be formulated for an Action Plan to transfer relevant knowledge and technology to MMDE staff regarding construction, operation and maintenance and “modernised” performance compared with internationally benchmarked practices. Recommendations will be proposed for all departments, not only the technical – also including a senior management leadership development program. Part of such an Action Plan will include Human Resources Development that must encompass: (i) organisational structure; (ii) development of a staffing plan; (iii) development of career paths; and (iv) staff training. The Action Plan assumes that the people in the organisation have reasonable powers to make the changes that they see are both necessary and within the delegated powers of that organisation. The Action Plan must provide a clear roadmap for “managers” so that they know what they have to do to meet the objectives set for their departments – and in particular introduce performance based management with visible targets (objectively verifiable performance indicators) and achievements. The action plan will highlight necessary key position to be filled, key training requirements to be conducted and priority hardware and software to be procured.

5.7.3 Implementing the Training Program 210. Upon approval of the training program, the PMDSC will assist MMDE with the implementing of the training program, including programming, budgeting, scheduling and managing logistics of the training, institutional development and awareness programs.

211. The project management training for the PMU will focus on practical management tools rather than theoretical concepts of management and human behaviour. To this end, we will strive to include institutions and specialists who have first-hand experience of managing ADB projects, but also equally important – advocating and managing change. There would be a need to dovetail the program with training initiatives that may materialize under the awareness programs. The overall aims of the project management will be to improve and develop the capability of PMU and PIU staff to execute project planning, design and management as per international state-of-the-art methods and tools but also to secure the investment made under the MWSIP through well performed and continued management, operation and maintenance.

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212. The training will be a process of creating situations to encourage participants to learn, extending their skills and knowledge and modifying attitudes in response. These situations are not restricted to formal courses but include on-the-job learning under supervision, study tours, and even self-instruction. We will consider training of the staff from MMDE, MASL and DOI both on site and in the PMU/PIU offices as a most important aspect to be incorporated through all phases of the program.

213. Our approach for knowledge and technology transfer to MMDE staff will follow requirements given in the ToR, on gaps emerging from the TNA and issues to be brought up by the PMU/PIUs "on- the-job" or arising during project implementation. The training program will be structured according to the following project implementation phases:

• Training during the review of the construction design • Training on the construction site (civil works and equipment) • Training during the approval period of equipment design • Training during the manufacturing and testing of equipment • Training during the trial operation of power generation equipment • Technical assistance after commissioning

214. For the benefit of the training of MMDE personnel, the PMDSC will advise and coordinate the training to PMU/PIUs in preparation of tender documents prepared in Task 2 and will coordinate the training provided by Contractors. Over and above the training to be provided by the Contractors, PMDSC will provide additional training in engineering design and construction design, construction site supervision, operation and maintenance as “on-the-job training”.

5.7.4 Preliminary Review of Water Resource Management on Sri Lanka 215. In continuation of the situation analysis, the PMDSC will perform a preliminary review of the prevailing policies, laws, regulations, agreements, frameworks, mechanisms and institutional arrangements within MMDE, MASL and DOI currently being used (or in place) to govern the management of water resources in Sri Lanka. The focus will be to assess strengths, weaknesses and opportunities to improve interagency coordination – and hence to improve overall management of the Mahaweli Development Program (the two phases of the NWPCP). This review will be reported by the PMDSC in a working document and will be the basis for the development of the ToR for the SIWRM consultancy promoting better (integrated) water resource management in Sri Lanka.

5.7.5 Institutional and Staff long-term Development Plans for MMDE 216. Using the TNA and situational analysis, we will formulate recommendations for institutional and staff long-term development Action Plan for MMDE that will support long-term management of the entire MDP and NCPCP. This involves transfer of knowledge and technology to MMDE staff regarding management, supervising construction of large infrastructures, operation and maintenance and “modernise” performance management as per internationally benchmarked practices. Recommendations will be proposed for all department/unit, not only the technical – but also including a senior management leadership development programme, secondments and exposure study tours to other water resource authorities. Part of such an Action Plan will include Human Resources Development that must encompass: (i) organisational structure; (ii) development of a staffing plan; (iii) development of career paths; and (iv) staff training.

217. The Action Plan will assume that the people within MMDE have reasonable powers to make the changes that they see are both necessary and within the delegated powers of MMDE. The Action Plan shall provide a clear roadmap for MMDE “managers” so that they know what they have to do to meet the objectives set for their departments – and in particular introduce performance based management with visible targets (objectively verifiable performance indicators) and achievements.

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The Action Plan will highlight necessary key position to be filled, key training requirement to be conducted and priority hardware and software to be procured.

5.7.6 Finalizing ToR for the SIWRM Consultancy 218. The SIWRM consulting services package seeks to promote the strengthening of IWRM principles both within the investment program area and nationally by benchmarking key water sector institutions and formulation of recommendations and guidelines for IWRM. The consultancy will also include updating of water resources management master plans, crop diversification, assessment of the water demands, development and implementation of IWRM decision support system and modernization of the Water Management Secretariat under the MASL.

219. Based upon the preliminary review – the PMDSC will update and finalize the TOR for the SIWRM consulting package and subsequent support the PMU with the recruitment, and provide monitoring and advising on the outputs of the SIWRM Consultant.

5.7.7 Anticipated Deliverables under Task 4. 220. To summarise –the following will be completed and delivered under Task 4:

• Initial Situation Analysis (Working Paper) • Training Needs Assessment • Training Program • Preliminary Review of Water Resources Management in Sri Lanka (Working Paper) • Institutional and staff long-term development Action Plan for MMDE • Updating and finalising ToR for the SIWRM Consultancy

221. Upon completion of the PMDSC contract, by Month 58, a Training Completion Report will be prepared summarizing the individual and institutional achievements and results from the MWSIP training program, including lessons learned and recommendations for future training efforts to be carried out in Phase 2 or other future supporting activities. 5.8 Communications Strategy (Task 5)

222. The purpose of the MWSIP communications effort is to support the PMU in a variety of ways that bring about efficient and effective engagement and two way communications with and among stakeholders of the investment program so that their views and concerns are reflected in the projects. Activities under Task 5 will be aimed at assuring public trust of institutional stakeholders and the public, so that the MWSIP is understood through the use of simple language and non- complex visuals that describe plans, show the ongoing works, dispel myths, correct misunderstandings and unrealistic perceptions, and stand ready to respond in a positive, non-threatening way in the event of problems.

223. Initial communication activities will organize a work plan that sets out a proper ranking of communication priorities based on some key challenges already identified in the Stakeholder Communication Strategy (SCS) prepared during the PPTA, with the understanding that more will be added as the program moves forward.

5.8.1 Approach to Stakeholder Communications 224. Defining MWSIP for stakeholders as the continuation of a large ongoing program: Communication of the MWSIP will need a carefully prepared set of materials that explain the program and describe the timing for execution of construction works, in the context of the customs of people who are living in the project areas. Our approach to stakeholder communications will consider stakeholders and activities at 5 levels, namely: (i) PAPs; (ii) direct beneficiaries, the wider public in

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225. Targeted communications for households/communities in impacted areas on how better to understand and participate in the program to avoid conflicts: Where land acquisition or resettlement is required, effective information-sharing and consultation with those affected is necessary to help avoid potential conflicts through misunderstandings. Communities and individuals may also be impacted by construction or downstream effects and will need clear information about the anticipated impacts, their entitlements, how to voice concerns, and how to access grievance redress mechanisms, so that issues can be identified and addressed early before they escalate.

226. Managing expectations on water delivery: Sri Lanka’s northern dry zone is marked by severe water stress, with the regional annual per capita endowment of 1,200 m3 being well below the 1,700m3 threshold that defines water stress, and this has been compounded by regular droughts. The need for water in these areas is contributing to high expectations among beneficiaries about the health and livelihood improvements expected to be associated with water transfer. However, the MWSIP has a very long time frame and benefits are unlikely to be felt in northern regions until late in the program. In addition, the expectations in some beneficiary areas may not be realistic or commensurate with likely project impacts. It will be necessary to be transparent and realistic, about both benefits and constraints of the investment program.

227. Ensuring that environmental impacts and community health are properly addressed: Human- elephant conflict (HEC) is an ongoing environmental concern in Sri Lanka. The combined investments will impact 11,600 ha of natural habitat, some of it elephant habitat, although only 1,100 ha of this falls under the investment program. The projects have the potential to increase human elephant conflict due to additional cropping in the Yala season and if the planned mitigation measures are not properly implemented. Timely and transparent information-sharing and dialogue will be important to maintain and strengthen engagement with NGOs. Addressing the issue of chronic kidney disease (CKD) is one of the aims of fresh water transfer and links to the Ministry of Health and other relevant government agencies will be necessary.

228. Dispelling misconceptions on water-sharing and use: Some communities may perceive that the diversion of water to the NCPCP will negatively impact the water rights of communities located downstream of the diversion points. This issue is complicated by the politicisation of water rights, especially in the light of inter-ethnic post-war conflicts. Misperceptions will need to be continuously clarified through reliable information dissemination and community dialogues.

229. Relevant collaboration with other donor agencies and programs in impacted areas: Proper connections with ongoing projects and the sharing of information and materials will help to achieve positive public support for the MWSIP. These groups will be identified as part of the work plan development.

230. Identifying and working with reputable non-governmental organisations (NGOs) and civil society organisations (CSOs): Along with relevant collaborating partners, a number of NGO and CSOs, both international and national, can help expand outreach for MWSIP communications. These potential partners will be identified and contacted early on to help strengthen the achievement of the aims of the SCS and input into the resulting work plan.

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5.8.2 Priorities and Next Steps for Implementation of the Strategic Communications Plan 231. The following priorities have been identified:

• Organise a communication team to include the PMU and PIUs and PMDSC • Review the SCS. Lay out broad 5 year work plan and timeline, since program needs will shift, this will be considered a living document to be updated as needed. Based on the 5 year workplan, prioritize needs and activities for inclusion in the 2016 work plan • Review and revise proposed SCS budget to align with 5 year work plan and 2016 work plan • Based on the SCS, develop a system of monitoring and evaluation (M&E) for communications. Identify a set of measurable goals/objectives for inclusion into the program M&E. Where possible, identify opportunities to streamline communications monitoring into the project monitoring systems established for the projects and/or overall investment program • Develop a set of communication objectives addressing MWSIP goals, so that measurable impacts can be reported appropriately • Develop a detailed profile of institutional and impacted stakeholders for inclusion in plan- ning targeted communications across all levels (from community-level affected people up to national public audiences) • Based on the set of anticipated “challenges,” identify a set of methodologies for addressing potential problems with tools that are adaptable for mass media dissemination • Draft a brief media plan identifying key media, ways to work with them, appropriate timing in relation to project activities; and crisis communication plan in case of negative press • Oversee communication research on various targeted stakeholders and set up and conduct further target group research (e.g., focus groups, rapid market place surveys, etc.) to assess ongoing public opinion • Continue to develop and operationalize the MWSIP’s digital marketing and outreach strategy. Establish a reporting system and supporting staff. Plan the extent to which social media will be utilized and identify which platforms are appropriate and how internet service providers can assist • Establish strong links with Colombo-based broadcasting entities, so that relevant officials and personnel can be occasional guests on national TV and radio programs, and develop appropriate tools for these officials to be effective presenters • Identity key communicators in the PMU, PIUs, ID, MASL, and other relevant agencies. Establish relevant staff training in communications for key communicators and develop aids and materials (e.g., talking points, brochures, factsheets, etc.) to support them • Complete NGO mapping to identify civil society actors with interests (positive or negative) in the MWSIP, their areas of concern, degrees of influence, and best ways to engage them

5.9 SEA Strategy (Task 6)

232. Work on the Strategic Environmental Assessment (SEA) for the NCPCP has started in February with a review of the existing information. Documents that are being collected and reviewed cover the following:

• Documents describing the MDP and how it has been evolving: − MDP’s originally envisaged scope − The infrastructure and operations as implemented to-date − The updated plans for its ultimate completion

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• Plans on other ongoing and planned development programs within the MDP’s area of influence (e.g., sector development programs, major infrastructure projects, any other plans that have the capacity to influence the status of natural resources and land use on a larger scale) • Environmental and social-economic baseline data for the MDP’s area of influence. Of particular interest will be databases, including GIS shape files, monitoring data, socio- economic statistics, etc. compiled by the MASL for the MDP area, either during previous environmental and social assessments, or for routine monitoring. • Reports on SEAs previously undertaken for the MDP or in Sri Lanka at large • EIAs, ESIAs, IEEs and any other environmental and social studies or assessments previously undertaken for projects within the MDPs’ area of influence • Policies, laws and regulations that contain information on: − The objectives and principles according to which land, water and other natural resources are to be managed − Particular requirements for the management of land, water and other natural resources in the area of the MDP • The institutional framework defining the responsibilities for: − Planning, implementation and operation of MDP systems; − Any sectoral institutions concerned with the management of land, water and other natural resources; their responsibilities for planning and implementation of plans within the MDP area.

233. The PMDSC requests that the PMU coordinate the provision of all information related to the above.

234. Based on the initial review of the above listed information, the immediate next steps for the SEA will aim at:

• Defining the details of the scope and content for the SEA to be prepared for the NCPCP • Determine procedural steps such as stakeholder consultations, consent or approval to be taken before implementing the scope of work • Identify additional information collection needs, if any • Prepare time line for carrying out the SEA for NCPCP

235. A broad outline of the proposed SEA approach is described in the Consultant’s proposal (Tech- 4, Section 4.7.2). The SEA Inception Report will describe the details of the scope and content for the SEA. It is proposed that the SEA inception report will function as scoping report for the SEA, and that this document could be shared with institutional stakeholders and their feedback integrated into the SEA study. 5.10 Acceleration of Route Selection for Phase 2 (Task 7)

5.10.1 Justification for Acceleration of the Route Selection 236. The two route options, between which selection has to be made, are described in Section 4.9. The selection of a route for Phase 2 needs to be initiated as early as possible because its conclusion is a pre-condition for commencing investigations and other work on the engineering designs and feasibility studies required for Task 7. The alternative routes include different project components and investigations/designs must focus early on the components in the selected route if the challenging timeframe for completion is to be maintained. A full feasibility study of both options is not foreseen or required by the ToR of PMDSC.

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5.10.2 Strategy 237. The PMDSC is required to apply multi-criteria analysis (MCA) to assist the PMU in the selection of the preferred conveyance route from the Mahaweli River to supply the Moragahakanda Reservoir.

238. MCA techniques have been applied for many years in sometimes controversial situations where there are alternatives that need to be prioritised – many criteria exist by which these alternatives can be compared – and where there are stakeholders with competing interests and values. Examples of MCA application include road route and pipeline selection, siting of facilities such as landfills or industries, and ranking of protected areas.

239. MCA is particularly useful as a tool for natural resource decision-making, where a complex and inter-connected range of environmental, social and economic issues must be taken into consideration and where objectives are often competing, making trade-offs unavoidable. It provides a robust and transparent decision-making structure, making explicit the key considerations and the values attributed to them, and providing opportunities for stakeholder participation.

240. MCA techniques are sometimes known as “decision-aiding” tools. They have their origins in a branch of mathematics knows as operations research, and they were originally used for business decision-aiding in the 1960s as alternatives to cost-benefit analysis. They involve stakeholders in determining alternatives, along with criteria by which to compare the options. The techniques then allow stakeholders to “weight” comparison criteria according to their own individual values. The end result is a ranking of alternatives. MCA techniques are not consensus-based. They do not result in agreement on a negotiated “best” outcome. However, if done properly, they result in a broad understanding that the ranking process is legitimate, and therefore so is the outcome.

241. In applying MCA to the selection of a preferred conveyance route, stakeholder workshops will be organized to understand the two route options, specify comparison criteria, and apply values to the criteria. The procedure will allow for sensitivity analysis to be undertaken, so that participants can analyse how ranking outcomes might (or might not) change as different stakeholder values are applied. The proposed MCA steps are outlined in the next section.

5.10.3 Technical Issues 242. The accelerated program for route selection is utilising the existing ARPS water balance model applied at the WMS. Decisions for route selection based on the existing model will not be subject to re-evaluation by any new models. This approach is considered fully legitimate since, although the existing model will eventually need replacement in order to meet future operational challenges, its results are reliable and accepted by decision-makers based on their experience with its predictive capabilities.

243. One component of the Option 2 route is the required heightening of Kotmale Dam by about 25-30 m to increase its reservoir storage volume. This dam was constructed between 1979 and 1984 as a “Concrete Face Rockfill Dam” (CFRD) with a height above foundation of 87 m. Although an eventual heightening of the dam was foreseen at that time, the lower-height dam’s precise location appears to have been selected with the aim of achieving the most economic layout for then current design. However, the Kotmale Valley opens up immediately downstream of the dam, so that any heightening (which would have to be achieved by placing embankment material on the downstream side only, in order to maintain and extend the upstream concrete slab) would require very substantial embankment volume and thus costs.

244. There is a further technical issue related to dam heightening. In principal, the CFRD is a successful dam type, with many applications in the last 35 years worldwide, and with a range of dam heights. However, some dams have suffered damage caused by insufficient compaction of the rockfill material in the central and downstream areas of the embankment, which led to excessive settlement of the dam crest and cracking of the concrete slab. In the case of Kotmale Dam, the

Program Management, Design and Supervision Consultant Page 54 Page Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT amount of the heightening would be more than a third of its present height, which would substantially increase loads on the existing embankment and could cause unexpected settlements. It will hardly be possible to predict the behaviour of a dam raised by the amount required here, which is unprecedented in global experience: to the PMDSC’s knowledge, there are no cases of CFRDs that have been raised by a significant amount after such a long time of operation.

5.10.4 Actions to be Taken (Investigations, Surveys, Modelling, Stakeholder Consultations) 5.10.4.1 Outline of the Multi-Criteria Analysis (MCA) Process

245. The Multi-Criteria Analysis (MCA) will be applied in six steps, as follows:

(i) Presentation and clarification of the conveyance route/technology alternatives (ii) Development of criteria by which to compare the route/technology alternatives (iii) “Scoring” of the route/technology alternatives against the comparison criteria (iv) Valuing (“weighting”) the criteria (v) Undertaking the ranking computation (vi) Analysing the ranking outcome through use of sensitivity analysis

246. “Scoring” in this context should not be confused with assigning ranking scores: rather it is the allocation of calculated values (e.g., absolute cost of construction, numbers of households affected, severity of environmental impact etc.).

247. Table 6 outlines the generic structure of the proposed MCA “effects table”. Note that this is only example’s sake. There could be more possible route/technology variations, and there will certainly be a longer list of comparison criteria.

Table 6: MCA Effects Table Structure

Comparison criterion Weight Randenigala- Polgolla to (some quantitative, assigned to Kalu Ganga Moragahakanda some qualitative: criterion route route units vary) a Number from Value (in original Value (in 1 to 10 units) original units) b c

248. A strength of MCA, when done properly, is that it takes all offerings from stakeholders into account. In fact, it is a stakeholder-driven process, and they are involved in all but one of the six steps. In the first step (“presentation and clarification of the conveyance route/technology alternatives”) to be undertaken in a first workshop, the PMDSC will refine and clarify the route/technology alternatives, based on previous work that has been undertaken to refine the Randenigala-Kalu Ganga route (Option 1), and the Polgolla to Moragahakanda route (Option 2). This list will be offered as a discussion starter, and stakeholders will have the opportunity to comment on its accuracy and completeness.

5.10.4.2 MCA Work Schedule

249. The proposed MCA work schedule is shown in Figure 9. The first workshop was held on 12 February 2016. In this first workshop, stakeholders were asked to do two other things. First, they were presented a complete list of comparison criteria. As long as these are not duplicative, any and all criteria were considered to be legitimate. Second, the stakeholders were asked to apply their

Program Management, Design and Supervision Consultant Page 55 Page Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT values (also known in MCA jargon as “weights”) to each of the comparison criteria. This is because stakeholders will have different understandings of how important each comparison criterion is in relation to the others. Stakeholders were asked to “self-identify” according to their different main interests, such as “environmentalist”, “power generator”, “government regulator,” etc. This will facilitate sensitivity analysis at a later stage.

250. Through these criteria-listing and weighting processes, stakeholders perceive that their interests are being fully accounted for. The outcome of the first workshop was therefore a completed “effects table”, with route/technology alternatives presented along the X axis of a matrix, and comparison criteria listed below on the Y axis, as shown in Table 6.

251. After the first workshop, the PMDSC has worked to fill out the effects table with “scores” (which are not to be confused with weights or ranking, as explained above). Depending on the nature and extent of both the route/technology alternatives and comparison criteria lists, the scoring procedure make take a full month. Scoring will be undertaken using as much quantitative data as is available, although the MCA software program works equally well with mixed quantitative and qualitative data. After scoring is completed, and the effects table is filled out, it will be possible to undertake sensitivity analysis to show how the ranking outcomes might vary depending on which weight sets are applied.

252. After the completion of scoring, the same set of stakeholders will be invited back for a second workshop, where they will be shown the computation of the route/technology rankings and the undertaking of sensitivity analysis, where interest group weight sets can be varied to see whether this has an impact on ranking.

5.10.4.3 Reporting

253. During the ADB Inception Mission it was agreed that the Phase 2 Inception Report and the Route Selection Report – due in months 4 and 8 respectively – should be submitted simultaneously by month 6. This is a rational change insofar as the Phase 2 work cannot be fully planned until the route selection has been finalised.

Figure 9: MCA Schedule

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5.11 Modelling

254. The accelerated program for route selection (see Section 5.10) necessitates the application of the existing ARPS (Acres Reservoir Simulation Package) water balance model used by WMS. Decisions for route selection can be sufficiently based on the existing model and would not be subject to re-evaluation by any new models. This current section describes the separate development of new modelling tools.

255. The ToR requires in Clause 59(i) “Developing a detailed and calibrated hydraulic model of the main conveyance systems of the fully developed Mahaweli System that will support planning, design, and management of the entire system. It should include accurate representation of all features including gates, weirs, reservoirs, and main outlets to the cascade systems. The model should extend down to the head regulators of secondary canals within each system” and Clause 59(iii) “Operating the above models for various time-steps ranging from hourly to monthly time- series. The results of these models will be used to finalize the designs of Phase 1 investments and for selecting and finalizing the Phase 2 investments. The models will also be used by MMDE and other stakeholders for routine water management.”

256. Due to the acceleration of route selection (Section 5.10), application of the new models to finalize Phase 1 and partially to confirm Phase 2 designs is no longer possible in view of the early need of modelling at the initial stage of design work. Nonetheless, we consider model development as a separate sub-task under Task 7.

257. Furthermore, the description and intended purpose for modelling appears not fully in line with the definition of a hydraulic model nor with the actual needs for water management of the Mahaweli System or its components. Rather we think what is appropriate is a tool that could be described as a “Mahaweli System Operations Model”, which would comprise several different numerical models serving specific purposes as part of an integrated decision support system (DSS).

258. Technically, a hydraulic simulation model could provide the user with the water level and flow rate at any location at any time throughout the underlying system. However, this would require very detailed knowledge of the precise locations and dimensions of all hydraulic structures, including reservoirs, rivers and primary and secondary conveyance canals. Main input would be cross-sections of all these structures at intervals between 200 m and 1000 m, which would have to be measured or derived first. A rough estimate of total length of the existing main conveyance canal networks is close to 900 km (see Table 7). This level of field data collection and verification would be unrealistically time-consuming for MMDE and ID. Besides survey of cross-sections, detailed measurements of water levels and discharges would be required at multiple locations of each structure at different times in order to calibrate the model. River sections may further be influenced by natural or artificial (e.g., sand mining) morphological changes, so annual calibration at selected sites would be required. The associated costs and overall timeline (minimum 12-18 months) to collect the required data are excessive compared to the added value, which is considered minimal in general and not appropriate for seasonal and weekly water allocation and system operation decisions.

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Table 7: Canal Lengths in the Mahaweli System

Canals (km) System Main Branch System B 53.0 72.0 System C 29.0 125.0 System G 5.0 System H 152.0 100.0 EMYE 33.0 146.0 System E 74.0 10.0 Minneriya 24.0 MKYE 32.0 Allai 30.0 Total 427.0 458.0

259. Nonetheless, the need to enhance present and future modelling capabilities for the Mahaweli System operations is clear. Technically, we would classify such system operation models as hydrological or allocation models that can sufficiently and efficiently reproduce system behaviour at an appropriate time step.

260. The Mahaweli System can be characterised as a trans-basin diversion system that conveys water from Mahaweli Ganga to the dry zone in the northern parts. Such large-scale and complex systems can only be modelled with a suite of models covering different temporal and spatial scales, sharing a common database. The models may be linked to each other and iteratively executed. Building up of the models is a stepwise approach, starting from large spatial low temporal resolution scale (regional/ macro models) to spatially constrained shorter time interval models (catchment/ micro models), depending on the relevant questions and decisions to be taken for water allocation.

261. Future modelling capabilities tentatively identified in discussions with MMDE include peak operation of hydropower plants, flood management and simulation of water allocation at micro system level, i.e., downstream of main head regulators at anicuts or irrigation reservoirs. The PMDSC considers these as specialised applications of the system models that require refinements with respect to shorter time steps and/or model extent and runtime.

262. As mentioned previously, the accelerated program for route selection necessitates the application of the existing ARSP water balance model applied at WMS. The ARSP is the principal model for water balance and allocation simulations developed in the 1980s. It represents the major reservoir and water conveyance routes of the Mahaweli System. Water allocation decisions are based on monthly evaluation of least system costs and is applied for seasonal planning and mid- term adjustments to system operation. However, the model is essentially a planning tool and cannot satisfy future needs in terms of system operations.

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263. The following flow chart provides an overview to our principal approach to model suite development for the Mahaweli System.

Figure 10: Proposed Approach to Model Development for the Mahaweli System

264. Excluded in the above model development process is the setup of dam break models. We propose to consider this task as a work package applicable to each dam subject to detailed designs carried out in Tasks 2 and 3. A description of the dam break modelling approach is presented in Section 5.11.5.

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5.11.1 Baseline Assessment 265. The baseline assessment includes three tasks that can be processed simultaneously:

• Assess data availability for model input data and system characteristics database • Evaluate existing models applied within WMS • Identify and support the formulation of needs with respect to modelling and utilisation of model output

266. The PMDSC is already working on these tasks (see Section 4.9.2 for present progress). A full list of data requirements is provided in Annex F.

5.11.1.1 Data Availability

267. The first task in the baseline assessment is to ascertain the availability of the data required for the setup and operation of Mahaweli System Operations Model and supporting models. Data concerned include:

• Reservoir characteristics (e.g., volume and surface area curves, outlet rating curves) • River and Channel characteristics (e.g., length, cross-sections, slope, roughness) • Data on Irrigation Scheme (e.g., crop pattern, demand) • Data on Hydropower Plants (e.g., head range and losses, efficiencies, operation) • Hydro-meteorological data (e.g., rainfall, discharge, evaporation, temperature)

268. Due to different spatial and administrative responsibilities, data are scattered among the following governmental authorities:

• Mahaweli Authority of Sri Lanka, Water Management Secretariat • Ministry of Irrigation and Water Resources, Department of Irrigation, Hydrology Division • Ministry of Irrigation and Water Resources, Department of Irrigation, Water Management division • Ministry of Disaster Management, Department of Meteorology, Data Archives Division • Ministry of Disaster Management, Department of Meteorology, Agro-meteorology Division • Ministry of Power and Renewable Energy, Ceylon Electricity Board, Mahaweli Hydro- power Complex

269. Due to the data being collected and archived among different authorities, we understand that the PMU would be in the best position to facilitate data collection and procurement. The PMDSC through PMU has already initiated the identification of data availability.

5.11.1.2 Assessment of Existing Models

270. Three models are available within the WMS:

• Acres Reservoir Simulation Package (ARSP) • Acres Irrigation Demand Model (AIDM) • DHI - Mike Customised (Mike)

271. The ARSP is the principal model currently being used for water balance and allocation simulations. International Consultant Acres International Limited developed the model in the course of the Mahaweli Water Resources Development Project in the 1980s. It represents the major

Program Management, Design and Supervision Consultant Page 60 Page Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT reservoir and water conveyance routes of the Mahaweli System. Water allocation decisions are based on monthly evaluation of least system costs. The model produces reliable results and is the core for seasonal planning for and mid-term adjustments to the system operation.

272. AIDM is applied to generate irrigation demand, which is the key driver for water allocation. Additionally, further tools are in use for the preparation of input data, e.g. HEC-4 to transfer gauge rainfall data to inflow series at model nodes.

273. In the course of the Dam Safety Water Resources Planning Project within MASL, SMEC in association with Danish Hydraulic Institute (DHI) has developed the Mike Customised model. This is a tailor-made suite of software provided by DHI. The model is supposed to incorporate in a numerical simulation platform (Mike) all capabilities of the models and tools presently used at WMS, i.e., rainfall-runoff generation (HEC-4), irrigation demand determination (AIDM), water balance and allocation simulation (ARPS). However, WMS reports poor performance of the model and continues to apply its old models.

274. The strengths and weaknesses of the individual models and tools will be assessed in close collaboration with the PMU and WMS. Meetings held on 19 January 2016 and 27 January 2016 have already initiated this process, and will be an important input to the subsequent step of model selection.

5.11.1.3 Identification of Modelling Needs

275. The identification of modelling needs runs simultaneously with the assessment of the existing models. Modelling needs are not restricted to the application, i.e., handling of the models. They also include the spatial and temporal resolution of the models in order to be able to reflect processes essential to system management and water allocation. This includes for example the shift from baseload to peaking operation of the hydropower plants or temporary failures of gates. Pre- processing (e.g. generation of inflow data, determination of irrigation demand) and post-processing (e.g., system operation adjustment, reporting) are also key features.

276. We propose to update and finalize a HECRAS model of the UEC and have included additional time for the international Hydraulic Modelling Specialist (+2 MMs) and the national Senior Design Engineer (Canals) (+1 MMs) to carry out this task.

5.11.2 Model Development 277. Two development paths are depicted in the flow chart. The primary development path relates to the definition, selection, setup, and result analysis of the Mahaweli System Operations Model. The secondary development path covers supporting tools for the operations model as well as additional data requirements.

5.11.2.1 Database Setup

278. Based on the available data and identification of data relevant for model setup, we will initiate data collection through the PMU. For each authority in possession of relevant data, we will prepare and provide a list of data required. We expect that data will be provided free of charge to the PMU from WMS and the ID, and other agencies as appropriate. Data from some authorities may involve a small processing cost, depending on the type of data and period covered. Costs occurred will be paid for and invoiced under the Provisional Sum for surveys and studies.

279. It is assumed that all data has been subject to extensive quality control by the responsible authorities. Nonetheless, we will perform basic checks for consistency and completeness. All data will be transferred to appropriate standard temporary formats for time series, tabulated data and scalar information. Final formats can only be established after model selection. Section 6.3 addresses potential issues on data quantity and data quality.

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5.11.2.2 Model Selection

280. Based on the requirements of WMS, the shortfalls and proven features of existing models, and the data availability, the PMDSC will identify potential software candidates for the Mahaweli System Operations Model for further evaluation. We will develop an evaluation procedure for the model selection in consultation with WMS and other relevant stakeholder identified by PMU during a workshop, considering at least the following criteria:

• Data pre-processing requirements, model preparation • (Intuitive) formulation of operation rules for water balancing and allocation • Ease of data exchange with other external model components, if applicable • Provision of (statistical) methods and (graphical) tools to analyse system performance • Automation of reporting, providing template tables and graphs • Training • Technical Support • Costs

281. An upgrade of the present ARSP water balance and allocation model is not possible. The model has already reached its limit of allowable nodes and elements, and without the full source code available this limitation cannot be lifted. Furthermore, Acres International - or Hatch, which has acquired Acres in 2005 – confirmed that they no longer maintain the model.

282. The resources required for model setup greatly depends on the specific models selected. The PMDSC will prepare a budget for the MMDE of the initial and running costs of the system operation model as part of the selection procedure subject to approval by PMU.

283. For the secondary development path for supporting models, i.e., the rainfall-runoff model and the irrigation demand model, we will largely follow the selection procedure presented above. However, the supporting models are specialised models providing input to the system operations model. Therefore, the number of candidates will be rather limited depending on the selected system operations model. We will address various aspects of the potential candidate software for the supporting models during the workshop, while final decision will be made by the MMDE to ensure the most efficient combination of tools while meeting Client’s requirements to the maximum feasible level.

5.11.2.3 Additional Data Collection

284. Spatial and temporal availability of both rainfall and streamflow data indicate a considerable deficit in particular in the northern region to cover the full range of catchment characteristics, which is to be confirmed after complete feedback from the local authorities.

285. After seeking agreement from the PMU, we will discuss together with the WMS means to compensate this data deficit. Any persisting deficit will directly affect model uncertainty due to lack of information for calibration and verification of model performance.

286. One option is the implementation of a measurement program. The WMS has equipment and staff to execute this task. The measurement campaign would at least partially cover a wet and a dry season. The PMDSC will identify respective impacts on time and cost schedules, and discuss further actions with PMU.

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5.11.2.4 Model Setup

287. Once the appropriate software has been selected, the planning and development of the Mahaweli System Operations Model may commence, and subsequently the identification of the supporting models depending on actual needs and data adequacy. As far as data availability allows, the models will be calibrated and verified against observed measurement data.

288. The Mahaweli System Operations Model is envisioned to be based on the concept of a least cost optimisation applicable at each monthly time step drives the water allocation in the present water balance and allocation model. Each release decision is associated with a penalty (cost), e.g., minimum flow requirement, maximum channel capacity, or change in storage zone, reflecting prioritisation of the allocation.

289. Another option to decide on allocation is to formulate more intuitively understandable rules that would be triggered at each (applicable) time step. The decision and requirement for the formulation of the system operation is fundamental to the selection of the model.

290. Present seasonal and short-term operation decisions rely on the output of the existing model, which has proven its applicability to capture system behaviour (although due to the operational setup, system behaviour, i.e. releases, are driven by the model output). Thus, the output of the present model will serve as a benchmark to test any new model.

291. The general modelling time step will be one day. Special attention is required for hydropower operation, which is mainly peak power generation during a few hours per day. Most models can adequately reflect such operation on a daily time step. However, at e.g. Polgolla diversion, the intra- daily hydrograph fluctuations along with limited storage capacity to absorb these fluctuations may lead to spilling and/or non-fulfilment of full diversion requirements at shorter-than-daily time intervals. It needs to be studied to which degree and probability such conditions occur and how to reflect this at daily time step. An hourly time step for the full water balance and allocation model is computationally expensive and will hardly provide any additional benefits for the seasonal to weekly planning for systems operation.

292. The spatial extent and degree of detail with respect to structures will initially be the same as for the present ARSP water balance and allocation model.

293. Irrigation Demand Model: The irrigation demand model considers assumed rainfall, irrigated area, different crops and related specific demands, and to some degree also crop pattern. Any new model will as a minimum provide the same capabilities. However, it is understood that in particular staggering, i.e., a marginal shift of cultivation steps to enable maximum use of available resources, as well as more flexibility in the type of crops considered is desired. In general, the applied model needs to be transparent also in terms of communicating and reflecting the constraints and demands of local farmer communities in order to facilitate support and acceptance of the water management decisions, which could impact on the type of crop and extent of cultivated area for the next season.

294. Rainfall-Runoff Model: The rainfall-runoff model converts rainfall data to inflow at nodes of the water balance model. Rainfall data may be spatially disaggregated from observed gauge measurements, short- to mid-term forecasts or estimates reflecting climatic change. Depending on the needs, we will establish interfaces to the respective data sources.

295. The most critical aspect in model setup is the calibration and verification of model behaviour. For large basins, model behaviour is derived at selected representative sub-catchments for interpolation to the full area.

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5.11.2.5 Data Analysis

296. Essential for any system operations decision is a good understanding and interpretation of the model result data. Together with the WMS and other relevant stakeholders identified by the PMU we will elaborate key parameter and system information and associated presentation in tables and graphs during a workshop.

297. Efficient automation of the generation of such output will shift resources from output preparation to output interpretation. Thus, different and/or more detailed operation decisions may be discussed to facilitate a more efficient and accepted water allocation amongst various stakeholders.

5.11.3 Model Extension 298. Based on the basic models development, we see further potential in the application of the models respectively in additions to enhance model capabilities.

5.11.3.1 Special Applications

299. The main water balance model may be adjusted to facilitate flood management and to study local effects of hydropower peaking. To do so, the temporal resolution (hourly), the spatial extent (e.g. hill region to Minipe) and the operation rules need to be adjusted to meet the respective requirements.

5.11.3.2 Forecasting

300. During initial meetings, several additional features have been discussed that can provide added value to the system analysis and operation. In particular forecasting capability along with stochastic modelling and analysis has been identified as key improvement. In particular the rainfall- runoff model respectively its link to input databases need to adjusted. This would also enable to study effects of potential climatic change.

5.11.3.3 Micro Models

301. Micro models are detailed models of specific irrigation areas, e.g., existing systems, NCP or NWP. These models can be implemented with the same software as the main water balance and allocation model. They will cover the main distribution channels and related tanks.

302. Integration into the main model will be an iterative process. First, the micro models will operate stand-alone with no upstream limitation in order to determine the system demand. This system demand will then be introduced at the respective downstream node of the main model to check system supply. In case of a deficit, the micro models and respective local demands will have to be adjusted. It needs to be mentioned that performance of the micro models can only be confirmed when sufficient measurement data at critical locations are available.

303. The micro models are considered an ideal point to hand-over model development to the Client but will require capacity building to ensure the long-term success of the effort. Hands-on application and implementation of the gained knowledge is the most efficient means of consolidating the experience gathered and transferred during workshops, training and discussions along the model development process.

5.11.4 Substantiation of the Approach 304. Our suggested approach for model development presented above develops further the original brief description in the PMDSC’s ToR and encompasses many details and decisions that have been arrived at collaboratively in discussions with multiple agencies. Our proposal is based on the

Program Management, Design and Supervision Consultant Page 64 Page Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT actual needs identified so far, and we are of the strong opinion that the project will benefit from the planning steps outlined here that underlie such a complex and large-scale modelling effort.

305. Together with the PMU the next step is to define which components of the modelling will be implemented under both of the following packages that will be supervised by the PMDSC:

• Strengthening Integrated Water Resources Management (SIWRM) • Mahaweli Water Management Software and Control Centre (MWMSCC)21

306. Subject to Tranche 3 proceeding (ToR Clause 11), the SIWRM is proposed as follows: “This consulting services package seeks to promote the strengthening of IWRM principles both within the investment program area and nationally, including recommending and supporting strengthening of water resources management and irrigation sector policies, legislation and institutions. This will be achieved through the review of current policy and legal frameworks, benchmarking of key water sector institutions, and formulation of recommendations and guidelines for improvements to institutionalize IWRM. This activity will also support: (i) updating of current water resources management master plans to include the completed MDP incorporating analysis of climate change impacts and water management practices for dry periods; (ii) possible crop diversification and impacts to scheme designs and management; (iii) assessment of the water demands of, and management of, other major water users including the environment; (iv) design, development and implementation of an IWRM decision support system; and (v) updating and modernizing the Water Management Secretariat under the Mahaweli Authority of Sri Lanka (MASL).”

307. We understand that the present task for the PMDSC is to define modelling needs, develop a suitable approach and prepare specifications for bid documents rather than to write software to implement new models. A revised ToR for the Modelling Specialist is proposed in Annex H reflecting the recommended approach. However, if the PMU has identified increased requirements for early implementation of new modelling tools and will provide the substantial amount of field-verified calibration data, the PMDSC is prepared and qualified to promote and undertake this development. The resource requirements of the PMDSC may need to be adjusted to accommodate the challenging program depending on the final structure of the model development and of the models selected. Due to the complexity of the task, such estimates could only be made reliably after main model setup, as it builds and relies upon work achieved.

5.11.5 Dam Break Modelling 308. Simulation of dam breach events and their resulting floods are crucial to characterizing and identifying threats due to potential dam failures, in particular for dams close to downstream settlements where there is potential for loss of life. On the other hand, following standard design guidelines and construction methods will minimize the risk of dam failure to the extent possible.

309. The dam break analysis can be split into the following tasks:

• Identification of the breach mechanism of the dam • Analysis for prediction of the flood wave initiating at the dam and travelling in downstream direction • Estimation of inundation levels and damage to downstream structures

310. There is a variety of methods and numerical models available for routing the dam break flood through the downstream valley. Normally, the dam-break flood analysis is performed by means of an appropriate hydrodynamic flood routing analysis. Standard software packages (e.g. MIKE11, HEC- RAS) are available with the Consultant to setup a respective hydrodynamic model. Usually, an

21 Comprises the UEC-ICB-6 package.

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311. The numerical model will be calibrated with the roughness coefficient. For calibration, a water level vs. discharge curve would be required, or otherwise the roughness coefficient must be estimated by visual observations and engineering experience, which should be satisfactory for a dam break analysis with its large over-bank flows. A sensitivity analysis will be conducted to address how alternative parameters for outflow discharge, time of failure, initial reservoir conditions, downstream channel and over bank roughness, calculation time-step, the cross sectional distance, etc. affect the computed flow depths in the downstream area.

312. Of particular interest for a dam break analysis is the flood routing along the downstream reach, i.e. the reduction of the peak discharge (attenuation) as it moves downstream, the travel time of the flood peak between points of interest; the maximum water stage at points of interest (bridges, temple sites), and the change in shape of the flood hydrograph as it moves downstream.

313. The output of the numerical model will be a view along the downstream river of the variation of water levels and/or water depth with time. At selected locations, the passing dam break flood will be plotted as water level versus time.

314. The inundation map will provide a description of the spatial extent of flooding that would be produced by the dam break flood. The inundation map will delineate the areas that would be flooded as a result of dam failure. 5.12 Resettlement

5.12.1 Priority Actions for Tranche 1 315. The resettlement specialists will carry out the following general tasks for Tranche 1:

• In close coordination with design team, identify changes on detailed design of all sub- projects under Tranche 1 to ensure whether the change in design will change the prepared RP, or will cause the need to prepare a new RIP. • Review whether the detailed design or/and change design on sub-projects and also the need of access road for construction works, will lead to the need to update the existing RIP; if update is needed provide detail plan on when to be done and when to be completed (bearing in mind its link between the approval and implementation plan of RIP and procurement process) • Oversee the sub-project activities under Tranche 1, to ensure its compliance with ADB’s Involuntary Resettlement (under SPS 2009)’s requirements. If it is not certain whether an RIP is needed, a due diligence report will be prepared. Based on due diligence report, prepare RIP if it is needed (e.g., for Minipe). • Oversee the implementation of the RIP and link it with procurement process to ensure when contract will be awarded an adequate clear area is available for civil work to systematically implemented by providing advices and assist PMU to expedite a process in obtaining series of approval from the government • Guide contractors to comply with RIP, in the case they will need a land for establishing a construction camp, storage for construction materials or machineries, and other needs to have temporary land to support their works • Assist the PMU in implementing the RIPs, especially in keeping record on its implementation, and preparing a progress report in implementing RP for submission to ADB • Assist PMU in implementing GRM by keeping records and reporting

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5.12.2 MLBCRP 316. The following issues related to involuntary resettlement under the MLBCRP were identified during the ADB mission:

• The reservation areas (government owned riparian areas along both sides of the canal) along this 74-km long canal have been encroached by farmers who mostly have land titles adjacent to the reservation areas. • The Farmer Organization Leaders have given an assurance that all encroached farmers will voluntary give up their agricultural activities during the construction period, if they are required to allow the Contractor’s access to the canal and works sites. However, the Farmer Organization Leaders believe it is not their responsibility to request or enforce the encroached farmers to stop their activities in related reservation areas. • The PIU has not directly approached and consulted these farmers, and has no record of the encroached farmers.

317. ADB has advised the following actions are required:

• A due diligence report should be prepared to determine whether a RIP will be needed. The due diligence report, or RIP if needed, should be submitted to ADB for approval prior to awarding civil works. • Since the first civil works package to be awarded (MLBCR-NCB-01) will be awarded in April 2016, the due diligence report for MLBCRP will be prepared as two reports: (i) the first due diligence report will cover 0 to 30+140km; and (ii) the second due diligence report will cover 30+140 to 74+000km. • The inventory of encroached farmers will be carried out with support from the Farmer Organization Leaders. • The agreed preparation schedule for the first due diligence report will be as follows: (i) an inventory data encroached farmers will be undertaken between 25 February to 15 March 2016; (ii) the PIU will hold a consultation meeting with encroached farmers by 20 March 2016; (iii) the PIU will submit a draft due diligence report to ADB by 25 March 2016; and (iv) the PIU will officially submit the final due diligence Report by 4 April 2016. The PMDSC resettlement specialists will support the PIU with completing these tasks. • The second due diligence report will be prepared and submitted to ADB in time to ensure the report is approved by ADB prior to awarding associated civil work contracts.

5.12.3 NWPCP 318. The RIP for the NWPCP will have to be updated and contracted for the first civil works package. The ADB mission has noted that in-depth consultations PAPs on the RIP should have been carried out to raise their awareness of the program. It is important the PIU now supports this consultation. The following issues are related to involuntary resettlement under the NWPCP:

• The needs of requiring access roads that involve temporary land acquisition should be taken into account with the RIP. • A cost to rehabilitate existing roads that will be used for transporting construction materials and equipment should be included under total project costs. • Detailed design is being revised and changed, for example: (i) 8+900 to 9+300km; (ii) 14+000 km replace aqueduct, and (iii) between 17+000 and 17+500 km. The RIP needs to be updated to account for these changes. • The possibility of moving the planned canal alignment should be explored between 9+300 to 17+000 km to account for a local resident who does not wish to be resettled or compensated.

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5.12.4 For Preparation of Tranche 2 and 3 319. The resettlement specialists will carry out the following tasks for Tranches 2 and 3:

• Ιn close coordination with engineering group, identify potential involuntary resettlement including land acquisition for both permanent and also temporary, and update the RIP in accordance to the government’s requirements and to comply with ADB Safeguard Policy Statement (SPS), 2009 • The RIP has to be prepared by systematically done with clear methodology for inventory of losses, socio-economic survey of project affected people to be used as basis to identify vulnerable group, livelihood improvement program, relocation or the need of resettlement site if any. The RIPs have to be updated with adequate consultations with project affected people, and consultation meeting has to be recorded, in terms of attended and subject discussed and solved • Ensure that RF for the MFF will continually cater for the issues related with resettlement due to sub-projects in Tranches 2 and 3, and revise RF if necessary to be part of submission PFR for Tranche 2

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6 PROGRAM IMPLEMENTATION PLAN 6.1 Government Actions

6.1.1 PMU/PIU Staff Recruitment 320. It will be important for the foreseen staffing build-up of the PMU and PIUs to be completed early, so that there are no negative impacts on progress resulting from staff being unavailable for fulfilling particular responsibilities. One example is the recruitment of safeguards staff, whose interventions will be essential in processing of applications for environmental approval of various components of the Program. They have a leading role to play in implementing the EMPs and the resettlement activities. For Phase 2, they also have a role to play in meeting the expectations/ requirements of CEA, because more EIAs will be submitted for the Phase 2 feasibility studies.

6.1.2 Human-Elephant Conflict 321. In the EIA reports prepared for UEC and NWP, it was recommended that the “IUCN Master Plan for Integrating Wildlife Management into the Water Resources Development: Addressing Human Elephant conflict” related to the Program should be implemented as part of the Environmental Safeguard Implementation procedure for Tranches 1 and 2. It is noted that completion of the safeguard procedures for Tranche 1 is likely to be a condition of approval of Tranche 2. However, the study has not yet been initiated and it is unlikely that the study can be completed prior to commencing Tranche 1 implementation, since implementation has in effect already started with the tendering of MLBCR-NCB-1 and the imminent tendering of more packages. Failure to implement the study could handicap MMDE’s ability to satisfy the ADB requirement on integration of Wild Life Management into the Water Resources Development under MWSIP. HEC management options have to be addressed in the implementation of the EMPs to comply with both ADB and government environmental safeguard policies.

6.1.3 MMDE and ADB Approvals 322. The environmental approval from the TEC of the CEA on the IEE for the proposed raising of the Minipe Anicut and MLBCR was given with some conditions, and the approval for the EIAs on UEC and NWP is in progress followed by the public consultation. The ADB clearances for the respective IEE and EIA reports were already given and ADB has advised that revisions be submitted as an addendum, with revised EMPs, where necessary. Appropriate design changes are required to comply with the conditions given by the DWLC for MLBCR project in relation to the position of “Environmental Flow Tube” at the existing LB canal silt excluder.

323. Table 8 shows the current status of EIA approvals. The final approval from CEA for the EIAs for the UECP and NWCP are still pending.

324. Table 9 shows the status of Tranche 1 bid documents review and approval by the PMU and ADB. For some Tranche 1 construction packages, the MMDE’s TEC reports were received after ADB approval, which led to the requirement to carry out additional review and modification work by the PMDSC to resolve differences between the recommendations and requirements of the two entities.22 It will be advantageous if all future TEC reviews can be completed prior to receiving ADB’s conditional approval so that the finalisation of tender documents can be carried out efficiently and effectively.

22 The following 5 bid packages were submitted by MMDE to ADB during 2015 for final approval: MLBCR-ICB-1, MLBC- NCB-1, NWPC-ICB-1, NWPC-NCB-1, and UEC-ICB-1. Of these only the MLBCR-NCB-1, NWPC-NCB-1 and UEC-ICB-1 were reviewed by the relevant TEC.

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Table 8: CEA and ADB Approval Status (12 February 2016)

Project CEA ADB Other Approvals Further Actions MLBCR 16.10.2015 - conditional Approval granted and Approvals for the CEA to be informed with the approval given for the IEEE. published IEE on the felling of trees dates of commencement of the The conditions laid by the ADB website. obtained from the project activities, including the DWLC as a part of CEA The updated EMP to be divisional secretariat phase implementation schedule approval to be incorporated submitted along with (DS) Minipe on (Clause 1.6 of CEA approval). into the designs. the revised technical 23/04/2015. Measures to be taken to Addendum to be sent to the details/ design changes NBRO approval demarcate the 100 m CEA addressing all the design as an addendum to the obtained for reservations from the FSL of the changes. submitted IEE. landslide hazard Minipe pool, left bank canal with verification in Oct the irrigation department. 2014. Reforestation boundary Both approvals are demarcation to be carried out in annexed to the consultation with the irrigation approved IEE. department and DWLC. Reforestation /enrichment areas to be clearly marked on a map and submitted to CEA and forest department along with the planting schedule (clause 2.4 of CEA approval letter). Preparation of a detailed EMP and monitoring plan incorporating the mitigatory actions precisely according to the work plan and any design changes, and submit to CEA for the approval of the monitoring committee appointed by the CEA prior to the commencement of construction. UEC EIA was opened for public Approval granted, and NBRO approval A survey to identify the number comments. published EIAR on the obtained for of trees to be cut down and the Addendum on the queries ADB website. landslide hazard appropriate approvals to be submitted on 12/01/16. The updated EMP to be verification and processed. CEA approval pending. submitted along with submitted to CEA as Reforestation boundary the revised technical an addendum in demarcation to be carried out in details/ design changes January 2016. consultation with the irrigation (if any) as an addendum Archaeological department Forest Dept. and to the submitted EIA department DWLC. report after receiving clearances attached the CEA approval. to the draft EIA. NWPC EIA was opened for public Approval granted, and NBRO approval A survey to identify the number comments. published EIA on the obtained for of trees to be cut down and the Addendum on the queries ADB website. landslide hazard appropriate approvals to be submitted on 29/01/16 The updated EMP to be verification and processed. CEA approval pending. submitted along with submitted to CEA as Reforestation boundary the revised technical an addendum in demarcation to be carried out in details/ design changes January 2016. consultation with the irrigation (if any) as an addendum Archaeological department Forest Dept and to the submitted EIA department DWLC. report after receiving clearances attached the CEA approval. with the draft EIA.

RKTC BIQ submitted to CEA on Not yet submitted. Phase II 21.11.2012. Request letter made to Archaeological Dept. for necessary Assessments; CEA responded on 06.12.16 stating to get the DWLC consent prior to issues the ToR.

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Table 9: Status of Bid Document Preparation and Review by ADB and PMU

Comments from No Package Description Submitted to PMU* Comments from ADB Comments from PMU/TEC Remarks TRC/PPTA 1 MLBCR-ICB-1 28 May 2015 19 December 2014 -TRC 9 February 2015 5 November 2015, PMU 5 December 2014 - PPTA 13 July 2015 instructed to carry out a design change (Ogee Weir) 2 MLBCR-NCB-1 28 May 2015 16 July 2015 30 December 2015 Bid evaluation in progress 3 MLBCR-NCB-2 28 May 2015 Not reviewed by TRC/TEC - - Design review by PDMSC 4 MLBCR-NCB-3 28 May 2015 Not reviewed by TRC/TEC Design review by PDMSC 5 MLBCR-NCB-4 28 May 2015 Not reviewed by TRC/TEC Design review by PDMSC 6 MLBCR-NCB-5 Not submitted 7 UEC-ICB-1 28 May 2015 29 October 2014 - TRC 13 July 2015 6 August 2015 - PMU Final submission by 10th 6 December 2014 5 November 2015 - PMU February 2016 27 October 2014 - PPTA 1 January 2016 - TEC 11 February 2015 - PPTA 4 May 2015 - PPTA 8 NWPC-NCB-1 28 May 2015 22 October 2014 - PPTA 12 November 2014 5 November 2015 - PMU Final submission by 12 24 July 2015 24 December 2015 - TEC February 2016 9 NWPC-ICB-1 28 May 2015 17 February 2015 - PPTA 27 July 2015 5 November 2015 Bids called for additional Geotechnical investigation 10 NWPC-ICB-2 28 May 2015 Not reviewed by TRC/TEC * By the Mahaweli Consultancy Bureau (MCB)

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6.2 Procurement Issues

325. The number of vehicles to be provided under the PMDSC’s indicative Provisional Sum budget (12 vehicles and 16 motorcycles) is inadequate for the effective supervision of the number of civil works packages that will be implemented concurrently. It has therefore been proposed to the PMU that additional vehicles for the Engineer’s use be included in bid documents. In addition, the first quotations received for vehicle purchase indicate that the actual budget has to be increased to approximately double for the planned number of vehicles. The PMU has initially indicated that government restrictions on the purchase of new vehicles mean that additional vehicles will have to be provided by renting/leasing. The impact of this decision and the calculation of associated vehicle numbers has not been fully assessed. 6.3 Modelling

326. The PMDSC will continuously follow-up with the PMU and relevant authorities for the assessment of data availability and subsequent collection of relevant data. We will require support from the PMU to enable and accelerate this process at inter-governmental level, in case we anticipate substantial impediments or delays for the progress of Task 7. We may also seek support in the procurement and negotiation of costs for data acquisition from authorities.

327. Depending on data availability for the setup of the proposed rainfall-runoff model, additional field measurements may be required. If deemed necessary, the PMDSC will elaborate a program for a measurement campaign subject to discussion and approval be PMU, including utilisation of equipment and staff available with MASL.

328. The resources required for model setup greatly depends on the specific models selected. The PMDSC will prepare an update on the time and cost budget for model development as part of the model selection procedure and after the setup period, subject to approval by PMU. 6.4 Revised Staffing Schedule

329. A revised staffing schedule for the Time-based part of the Program (i.e., Tasks 1, 3, 4, 5 and 7) is included in Annex G. An addendum to the PMDSC’s contract includes the new staffing plan. The revisions to the staffing work plan are justified on the basis of the government’s objective of accelerating the construction of the KMTC and UEC, and are a critical requirement to reduce the risks of delays in implementation. In addition the scope of the PMDSC’s services have increased as detailed in this report. These additional inputs are necessary to support the PMDSC’s assistance during tendering, supervision and management of the KMTC, plus the other tasks that have been added to the scope of the PMDSC.

6.4.1 Staff Replacements 330. Two replacements for International Key Experts have already been approved by the PMU due to medical reasons:

• Communication Specialist – Mr. Darryl Kuhnle • Environment – Dr. David Annandale

331. In addition, on 18 December 2015 the PMDSC submitted to the PMU the CVs for highly qualified replacement candidates for the following national Non-key Experts who are no longer

Program Management, Design and Supervision Consultant Page 72 Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT available for their assignment due to the delay in mobilisation of the PMDSC and further delays in the planned commencement of construction activities:23

Senior Surveyor - 1 (MLBCR) Senior Surveyor - 2 (NWPC) Senior Surveyor - 3 (UEC) Assistant Design Engineer - 7 Engineer Assistant (Construction Supervision) - 8 Engineer Assistant (Construction Supervision) - 9 Engineer Assistant (Construction Supervision) - 12 Assistant Mechanical and Electrical Engineer - 1 Survey Assistant - 4 Draftsperson – 3 and 4

6.4.2 Staff Inputs from Home Office 332. It has become apparent that the input of some specialists will be required on an intermittent “as required” advisory or short-term basis that does not justify travelling to Sri Lanka on each and every occasion where input is required. Examples are some parts of the international inputs of the Procurement and Contracts Specialist, the Modelling Specialist and some of the Design specialists. The new staffing schedule included in Annex G shows the proposed Home Office time allocations for selected International Key Experts. Corresponding reductions for the associated reimbursable costs are reflected in the contract addendum.

6.4.3 Re-scheduling of Supervision Staffing 333. As discussed previously, the number of construction contracts ready for award or already in progress was less than expected at the start of the Program, therefore, in the updated staffing schedule corresponding re-scheduling has been made to the site staff. In addition, the timing for mobilisation of some international and national Key Experts has been adjusted to reflect the planned start of construction for the civil works packages as shown in the updated Implementation Schedule. The re-scheduling also considers it more beneficial to employ site supervision staff on a full-time basis, when practical.

6.4.4 Proposed Additional Inputs 334. During the inception phase, the PMDSC has identified some additional requirements for international Non-Key Experts for the Time-based tasks in the increased PMDSC budget to be financed using the Contingency Provisional Sum. This will permit the PMDSC to optimise the work plan in accordance with the actual needs of the Program, which centres on ways to finish the construction of civil works on an accelerated implementation schedule at the request of the government (refer to Annex A). Reasons for the additional staffing inputs include (i) the acceleration of the construction of the KMTC; (ii) the inclusion of the Kongetiya Level Crossing in the UEC bid package; (iii) carrying out the assessment of the existing dams and level crossing that will be part of the constructed works in the project areas; (iv) preparation of a Program Fund Disbursement Handbook; and (v) the recommended new specialists as explained below.

335. Preparation of the Phase 2 feasibility-level NCPCP designs comprises major civil and electro- mechanical works, including three large dams and associated hydro-power stations. The proposed staffing requirements for the PMDSC were based on the perception of the likely scope of the MWSIP when the PMDSC proposal was prepared. Based on our findings during the inception phase, we have a better understanding of the government’s requirements and priorities.

23 In the ToR the original commencement date for the services of the PMDSC was June 2015.

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336. In addition to re-programming the timing and duration of some specialist’s inputs to optimise the work plan we have identified additional inputs that are required. The ToRs for additional proposed international Non-key staff include:

• Hydropower Engineer (Civil Designer): The preliminary review of the pre-feasibility level designs for the hydropower stations in Phase 2 including Lower Uma Oya (10 MW), Hasalaka (9.3 MW) and Heen Ganga (2.25 MW), indicates the need for detailed review and updating focused on their civil construction designs. This particular focus on the infrastructure designs of these power stations is not well-covered in the PMDSC’s current ToR. The proposed specialist’s ToR includes: to review the feasibility studies from the viewpoint of overall engineering aspects, design and cost; plan hydropower design works; prepare general and technical parts of the civil works in the updated feasibility-level designs. • Geotechnical Engineer (Investigations): to assess the adequacy of geotechnical investigations carried out by contractors; determine whether dam instrumentation and monitoring is consistent with bid document requirements; and prepare technical notes, as necessary, advising on the completeness and accuracy of interpretation of field investigations in the design of below ground engineering works. This is particular important for the KMTC because our close supervision of the investigation program carried out during construction will help reduce the risk of delays and cost overruns. • Mechanical Engineer (Turbine Designer): The PMDSC’s initial review of the pre-feasibility level information prepared for Phase 2 indicates that the turbine designs for the hydropower stations at Lower Uma Oya (10 MW, Francis type), Hasalaka (9.3 MW, Pelton type) and Heen Ganga (2.25 MW, Kaplan type) Reservoirs need to be reviewed and confirmed with the final design criteria, which requires a turbine engineer. This critical design task is not adequately resourced in the current ToR. The specialist’s proposed ToR includes: to review and finalize the designs for the electro-mechanical equipment as part of a detailed engineering study of turbine design and performance; examine methods of mechanical (turbine) equipment procurement, installation and testing; finalize feasibility- level cost estimates of mechanical (turbine) equipment based on the implementation schedule for detailed design, transportation and installation work of mechanical equipment; and support the Hydropower Engineer prepare technical designs for the mechanical equipment. • Senior Design Engineer (Canals): to review and finalize the designs for the UEC level crossings and update the bid packages according to the final embankment heights and modified spillway designs. The PMDSC’s current ToR does not include an international specialist for this position, but as mentioned elsewhere in this report the Consultant has determined that the national specialists need intensive support to ensure the final designs for the level crossings are robust. • Hydraulic Modelling Specialist: to analyse and update the HECRAS simulation model previously prepared for the UEC. In addition, it is proposed that this specialist carry out the dam break study for the Phase 2 dams instead of the Modelling Specialist, which include three major tasks: (a) development of dam break model; (b) defining alternative dam break schemes; and (c) risk assessment of a flood. The modelling specialist is also required for the dam assessment. • Senior Geotechnical Engineer (Dam Expert): A short input is proposed to provide specialized expertise in order to assess and investigate design alternatives for dam designs in terms of constructability and potential risks; assess the adequacy of investigations program and provide quality assurance/quality control practices for NWPCP dam construction and modification, and a determination with respect to whether designs and completed construction are completed in conformance to requirements.

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337. The input for the Social and Resettlement Safeguards Specialists is proposed to be increased by 1 MM in order to address the deficiencies in the existing PSA that were identified by ADB during the inception mission (refer to revised ToR in Annex H).

338. The input for the Communications Specialist is proposed to be increased by 2 MM. The justification for this is based on the existing capacity in the PMU for managing such a large communications program budget, along with the urgent need to support professional engagement with a multi-level assortment of stakeholders, particularly the PAP and beneficiaries. ADB has noted in their Aide Memoire that the alternative is to increase the number of communications personnel in the PMU. This increased staffing will allow the PMDSC to provide the additional support to communicate the important lessons from the ISEWP consultancy package, which is critical to the MWSIP’s objectives of increasing agricultural productivity throughout all Mahaweli systems. 6.5 Financial Issues

6.5.1 Proposed Staging of Payments for LS Deliverables 339. A tentative payment schedule has been worked out for the Lump Sum deliverables as shown in Annex I. This payment schedule is consistent with the percentages for each Lump Sum deliverable in the PMDSC’s ToR and the proposed implementation schedule.

6.5.2 Provisional Sums 340. The PMDSC budget includes Provisional Sum budgets for (i) vehicles and motorcycles; (ii) surveys and studies; (iii) office equipment; (iv) meetings, workshops and training; and (v) communications materials (refer to Table 7 of the Consultant’s ToR).

341. Vehicles and motorcycles: As mentioned in Section 6.2, the available budget is inadequate for the number of vehicles needed to properly supervise the works, and to support the deployment of staff doing field work, attending meetings and holding workshops in project areas. The Consultant’s projection is that the available budget will be sufficient for procurement of 6-7 vehicles during 2016. Therefore, the budget for procurement of vehicles must be increased or the construction contracts be amended to include vehicles for the use of the PMDSC.

342. Surveys and studies: Tenders have been floated for geotechnical investigations and bid evaluations are ongoing (refer to Table 2). The Consultant will use the shopping procurement method and obtained three quotes for each tendered package. We anticipate that the investigations necessary for finalizing the civil works packages will all be tendered during 2016. When the conveyance route for Phase 2 is confirmed, the PMDSC will prepare a proposal for the additional investigations required for the Phase 2 designs. We expect there to be some savings in this budget that may be available for re-allocation to other provisional sums to meet further requirements such as vehicles or office equipment.

343. Office equipment: This budget is for the procurement (shopping method) of office equipment (printers, servers, copy machines, computers for support staff, etc.) for the PMDSC’s offices. The Consultant has developed detailed specifications and is obtaining quotations for the supply, installation and servicing for a computer server and accessories for the Colombo office. The IT system for the Colombo office, which will be occupied by up to 50 staff at peak periods, will be a major expense and use the available budget of $50,000. Providing similarly equipped IT systems for the site offices will exceed the available budget, so the Consultant proposes to use re-allocated funds in the amount of $100,000 from the surveys and studies provisional sum.

344. Meetings, workshops and training: The PMDSC has already held the first workshop for the MCA process in February. Workshops and training sessions are a core part of Task 4 (Capacity building) and Task 5 (Communications), but they also will be a regular feature of the entire program’s

Program Management, Design and Supervision Consultant Page 75 Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT activities. It was mentioned in the PMDSC’s proposal that the available provisional sum may not be sufficient for the full five years of the contract period, but for the medium-term period no request for an increase is anticipated.

345. Communications: The PMDSC’s Communications specialists are preparing a work plan, including identification of appropriate media and channels of dissemination that will convey priority messages to key stakeholders. One priority is assisting the PMU to develop and hosting a program web site. The SCS Implementation Note will provide an updated budget to reflect the revised activities and workplan.

6.5.3 New Tax Rates 346. The rates for the Value Added Tax (VAT) and Nation Building Tax (NBT) have been revised by the Department of Inland Revenue with effect from 1 January 2016.24 All local indirect taxes are reimbursable to the PMDSC by the government, which are in addition to the ceiling amounts of the contract for consultancy services. The effect of the NBT increase (present and future) on the PMDSC and our sub-consultants represents an incalculable cost to the Program. The MMDE is advised to apply for general tax exemption of the MWSIP.

347. The MMDE has instructed that the new VAT rate (12.5%) be incorporated into the bid documents.

6.5.4 PMDSC Offices 348. The PMU initially selected locations for the Project Offices at Madatugama, Kurunegala, and Hasalaka for the UECP, NWPCP, and MLBCRP, respectively. Alternate locations at Elahera and Polpithigama have also been proposed by the PMU for the UECP and NWPCP, respectively. The offices for PMDSC staff need to consider the available accommodations in the nearby vicinity, as well as travel time to the construction works.

349. The PMDSC has informed the PMU that the Project offices for the Resident Engineers and their staff (e.g., Concrete Engineer, Surveyor, Quantity Surveyor, Assistant Design Engineers, etc.) need to accommodate 20-25 people during peak periods, taking into account regular use by the design and safeguards teams who will also be in the project areas supporting the preparation of Phase 2. As per the requirements in the ToR, the PMDSC has included provisions for running costs for four offices in their financial proposal (1 main office in Colombo and 3 site offices); however, if the PMDSC staff need to occupy additional offices due to space limitations, the amount of running costs would need to be commensurately increased.

350. A separate Project Office for the PMDSC will be have to be established for managing the construction supervision of the KMTC. We have included the establishment and running cost into the contract addendum.

24 At this time the proposed amendments to the government’s 2016 budget covering VAT and NBT have not been fully enacted.

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ANNEX A IMPLEMENTATION SCHEDULE

Program Management, Design and Supervision Consultant Page 77 Mahaweli Water Security Investment Program - Phase 1 Program Management, Design and Supervision Consultant

ACCELERATED IMPLEMENTATION SCHEDULE

Revise Tender Designs Approval by PMU and ADB Bidding and Contract Award Construction Defects Liability Period 2016 2017 2018 2019 2020 No. Package Milestones and Construction Activities 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 PMDSC - 1 TRANCHE 1 (2016 - 2021) MLBCR Minipe Left Bank Canal Rehabilitation 1 MLBCR-ICB-1 Raising of Crest of Minipe Anicut and Water Control and Measurement Facilities 2 MLBCR-NCB-1 Rehabilitation of Minipe LB Canal (0+000km to 30+140km) - Stage 1 3 MLBCR-NCB-2 Rehabilitation of Minipe LB Canal (30+140km to 49+820km) - Stage 2 4 MLBCR-NCB-3 Rehabilitation of Minipe LB Canal (49+820km to 63+650km) - Stage 3 5 MLBCR-NCB-4 Rehabilitation of Minipe LB Canal (63+650km to 73+960km) - Stage 4 6 MLBCR-G-1 Rehabilitation and Improvements to Gated Control Structures NWPC North Western Province Canal - Stage 1 7 NWPC-NCB-1 Wemedilla Sluice and LBMC from Reservoir to Nabadagahawatta (0+000 to 5+250km) 8 NWPC-ICB-1 Mahakithula Inlet Tunnel, Mahakithula and Mahakirula Reservoirs, Feeder Canal 3.66km 9 NWPC-ICB-2 Main Canal from Nebadagahawatta to Mahakithula Reservoir (5+250 to 22+500km) UEC Upper Elahera Canal - Stage 1 (0+100 to 6+226km) 10 UEC-ICB-1 Upper Elahera Canal (0+100 to 6+226km) TRANCHE 2 (2017 - 2024) UEC Upper Elahera Canal - Stage 2 (6+226 to 17+900km) and (27+509 to 54+249km) and KMTC (0+000 to 9+120km) Manufacturing, shipping, establishment and testing of TBM 11 UEC-ICB-2 Tunneling of UEC Tunnel 3 (TBM) (27+509 to 54+249km) 12 UEC-ICB-2B KMTC Tunnels 1 and 2 (0+000 to 9+120km) 13 UEC-ICB-3 Upper Elahera Canal (6+226 to 17+900km) TRANCHE 3 (2018 - 2024) UEC Upper Elahera Canal - Stage 3 (17+900km to 27+509km) and (54+249km to 65+500km) 14 UEC-ICB-4 Upper Elahera Canal (17+900 to 27+509km) 15 UEC-ICB-5 Upper Elahera Canal (54+249 to 65+500km) 16 UEC-ICB-6 Feeder Canal to Manankattiya, Eruwewa and Mahakanadarawa Reservoirs (0+000 to 19+000km) 17 UEC-ICB-7 NCPCP Water Management Software and Control Center NWPC North Western Province Canal - Stage 2 18 NWPC-NCB-2 Mi Oya RB 1 Canal, Mahakirula Reservoir to Galgiriyawa (0+000km to 13+731km) 19 NWPC-NCB-3 Mi Oya RB 2 Main Canal From Galgiriyawa to Kaduruwewa (13+731km to 21+231km) 20 NWPC-NCB-4 Mahakithula Reservoir to Potuwila (0+000 to 1+491km) and Upper Mediyawa (0+000 to 19+980km) 21 NWPC-NCB-5 Yapahuwa Canal from Mediyawa Canal (0+000 to 11+200km) 22 NWPC-NCB-6 Dambulu Oya to Wemedilla LBMC and Diversion Structure (0+000 to 8+590km)

Mahaweli Water Security Investment Program Accelerated Schedule Mahaweli Water Security Investment Program - Phase 1 Program Management, Design and Supervision Consultant

ACCELERATED IMPLEMENTATION SCHEDULE

2021 2022 2023 2024 No. Package Milestones and Construction Activities 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100101102103104105106107108109 PMDSC - 2 TRANCHE 1 (2016 - 2021) MLBCR Minipe Left Bank Canal Rehabilitation 1 MLBCR-ICB-1 Raising of Crest of Minipe Anicut and Water Control and Measurement Facilities 2 MLBCR-NCB-1 Rehabilitation of Minipe LB Canal (0+000km to 30+140km) - Stage 1 3 MLBCR-NCB-2 Rehabilitation of Minipe LB Canal (30+140km to 49+820km) - Stage 2 4 MLBCR-NCB-3 Rehabilitation of Minipe LB Canal (49+820km to 63+650km) - Stage 3 5 MLBCR-NCB-4 Rehabilitation of Minipe LB Canal (63+650km to 73+960km) - Stage 4 6 MLBCR-G-1 Rehabilitation and Improvements to Gated Control Structures NWPC North Western Province Canal - Stage 1 7 NWPC-NCB-1 Wemedilla Sluice and LBMC from Reservoir to Nabadagahawatta (0+000 to 5+250km) 8 NWPC-ICB-1 Mahakithula Inlet Tunnel, Mahakithula and Mahakirula Reservoirs, Feeder Canal 3.66km 9 NWPC-ICB-2 Main Canal from Nebadagahawatta to Mahakithula Reservoir (5+250 to 22+500km) UEC Upper Elahera Canal - Stage 1 (0+100 to 6+226km) 10 UEC-ICB-1 Upper Elahera Canal (0+100 to 6+226km) TRANCHE 2 (2017 - 2024) UEC Upper Elahera Canal - Stage 2 (6+226 to 17+900km) and (27+509 to 54+249km) and KMTC (0+000 to 9+120km) 11 UEC-ICB-2 Tunneling of UEC Tunnel 3 (TBM) (27+509 to 54+249km) 12 UEC-ICB-2B KMTC Tunnels 1 and 2 (0+000 to 9+120km) 13 UEC-ICB-3 Upper Elahera Canal (6+226 to 17+900km) TRANCHE 3 (2018 - 2024) UEC Upper Elahera Canal - Stage 3 (17+900km to 27+509km) and (54+249km to 65+500km) 14 UEC-ICB-4 Upper Elahera Canal (17+900 to 27+509km) 15 UEC-ICB-5 Upper Elahera Canal (54+249 to 65+500km) 16 UEC-ICB-6 Feeder Canal to Manankattiya, Eruwewa and Mahakanadarawa Reservoirs (0+000 to 19+000km) 17 UEC-ICB-7 NCPCP Water Management Software and Control Center NWPC North Western Province Canal - Stage 2 18 NWPC-NCB-2 Mi Oya RB 1 Canal, Mahakirula Reservoir to Galgiriyawa (0+000km to 13+731km) 19 NWPC-NCB-3 Mi Oya RB 2 Main Canal From Galgiriyawa to Kaduruwewa (13+731km to 21+231km) 20 NWPC-NCB-4 Mahakithula Reservoir to Potuwila (0+000 to 1+491km) and Upper Mediyawa (0+000 to 19+980km) 21 NWPC-NCB-5 Yapahuwa Canal from Mediyawa Canal (0+000 to 11+200km) 22 NWPC-NCB-6 Dambulu Oya to Wemedilla LBMC and Diversion Structure (0+000 to 8+590km)

Mahaweli Water Security Investment Program Accelerated Schedule Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT

ANNEX B STAFF MOBILISATION

Professional experts deployed from 1 December 2015 to 31 January 2016.

Name Int/Nat Position Arrival Key Staff Mr. M.R. Chegwin I Team Leader 2 December 2015 Mr. S. Schmitt I Chief Design Engineer 2 December 2015 Mr. K. Thermann I Senior Geotechnical Engineer 7 December 2015 Mr. U.N.S. Wickramaratchi N Deputy Team Leader 2 December 2015 Mr. P.W.C. Dayaratne N Procurement Specialist 2 December 2015 Mr. J. Jochimthasan N Design Engineer 7 December 2015 Mr. S.K. Hewadewa N Civil Engineer 7 December 2015 Mr. N.P.K.G. Jayatilake N Assistant Geologist 7 December 2015 Mr. S.S. Ranatunga N Water Resources / Irrigation Planning Engineer 9 December 2015 Mr. B.S. Liyanagama N Modelling Specialist 9 December 2015 Mr. Y.Y.V. Costa N Survey Assistant 7 December 2015 Mrs. P.I.L. Imbulana N Senior Construction Engineer 1 January 2016 Mr. I. Wijesekera N Senior Drafts Person 1 January 2016 Mr. N.N.K. Dias N Drafts person 2 2 January 2016 Mr. A.L. Buruharudeen N Hydraulic Structures Engineer 11 January 2016 Dr. Jens Moedinger I Modelling Specialist 9 January 2016 Mr. Martin Brown I Procurement Specialist 18 January 2016 Dr. Anusha P. Kasige N Environmental Specialist 18 January 2016 Mr. G. Kudaliyanage N Institutional Strengthening Specialist 21 January 2016 Mr. Herath N Communications Specialist 22 January 2016 Dr David Annandale I Environmental Specialist 23 January 2016 Mr. Joerg Weber I Hydraulic Structures Engineer 25 January 2016

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ANNEX C MINUTES OF MEETINGS

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Minutes of the Meeting (01)

Venue : Program Management Unit, Colombo Date : 2 December 2015 Subject : Inaugural Meeting of the Employer and the Consultants Present : Mr. Sisira Kumara - Additional Secretary (Technical) MMDE / Program Director (MWSIP) PMU Mr. Ariyaratne - Civil Engineer PMU Mr. Mangalagama - Procurement Engineer PMU Mr. M.R. Chegwin - Team Leader PMDSC Mr. Stefan Schmitt - Chief Design Engineer PMDSC Mr. P.W.C. Dayaratne - Procurement Specialist PMDSC Mr. U.N.S. Wickramaratchi - Deputy Team Leader PMDSC

1. Introduction After initial introductions of the MWSIP staff and PMDSC team, the Additional Secretary MMDE /Program Director MWSIP welcomed the PMDSC consultants and informed them that the government has given high priority and expect to complete the Program on schedule for early realisation of the benefits to the people. All efforts must be taken to ensure quality of work and timely completion. The TL-PMDSC informed that all endeavours would be made on the part of the consultants to ensure quality of work and timely completion. 2. Assignment and Tasks The tasks of PMDSC were briefly discussed and the TL-PMDSC clarified that after gathering the project documents and initial familiarisation site visits, the consultants will review the project documents and deploy the experts in phases to ensure the maximum benefits. 3. Office Space and Facilities for PMDSC Availability of office space and equipment were discussed and the consultants were informed that the office for PMDSC is being refurbished and will be available within 3 weeks. The PMDSC proposed using office space immediately in Mahaweli Consultancy Bureau office at Jawatta road, as a temporary measure.

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Minutes of the Meeting (02)

Venue : Program Management Unit, Colombo Date : 4 December 2015 Subject : PMDSC Working Arrangements Present : 1. Mr. Sisira Kumara - Additional Secretary (Technical) MMDE / Program Director (MWSIP) PMU 2. Mr. Vijith Kodituwakku - Procurement Specialist PMU 3. Mr. Ariyaratne - Civil Engineer PMU 4. Mr. M.D.G. Mangalagama - Office Engineer PMU 5. Mr. M.R. Chegwin - Team Leader PMDSC 6. Mr. Stefan Schmitt - Chief Design Engineer PMDSC 7. Mr. P.W.C. Dayaratne - Procurement Specialist PMDSC 8. Mr. U.N.S. Wickramaratchi - Deputy Team Leader PMDSC

1. Program Implementation PD-MWSIP informed that in view of the scheduled completion of Kalu Ganga and Moragahakanda reservoirs by end 2018, the government has changed the priorities in the implementation program to complete Kalu Ganga Moragahakanda Transfer Canal by end 2018. The PMDSC was requested modify the implementation program accordingly. The TL –PMDSC agreed to examine necessary modifications to the work program and give feedback on the implications for required activities and resources. 2. Procurement of Office Equipment and Vehicles PMDSC will arrange for the procurement of vehicles, computers, printers and the server under local shopping procedures. 3. Office Space and Facilities for PMDSC PMDSC have commenced operations from Mahaweli Consultancy Bureau office at Jawatte road, pending completion of refurbishing of the designated office. TL explained the need for additional office space by mid-February 2016 to accommodate the scheduled staff. 4. Contract Packages The invitation for bids for Minipe Left Bank Canal Rehabilitation Project (MLBCRP), NCB-1 package, has been advertised and review of the bid documents for UEC ICB-1 and NWPC ICB- 1 are in progress.

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Minutes of the Meeting (03)

Venue : Central Environmental Authority, Battaramulla Date : 4 December 2015 Subject : NWPC – EIA report

The PD - MWSIP and the staff of the PMU and PMDSC clarified for CEA staff the technical issues related to North Western Province Canal (NWPC) system, including the steps taken for the minimising the adverse impacts on, and conservation of, wild life and forest reserves.

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Minutes of the Meeting (04)

Venue : Program Management Unit, Colombo Date : 17 December 2015 Subject : Meeting of the Client and the Consultants for Review of Field Visits Present : 1. Mr. Sisira Kumara - Additional Secretary (Technical) MMDE / Program Director (MWSIP) 2. Mr. Ariyaratne - Civil Engineer –MWSIP 3. Mr. M.D.G. Mangalagama - Office Engineer – MWSIP 4. Mr. M.R. Chegwin - Team Leader PMDSC 5. Mr. Stefan Schmitt - Chief Design Engineer PMDSC 6. Mr. P.W.C. Dayaratne - Procurement Specialist PMDSC 7. Mr. U.N.S. Wickramaratchi - Deputy Team Leader PMDSC

Observations from the Field Visits 1. Minipe Left Bank Canal Repairs to office building for PIU office Minipe, at Hasalake were in progress and expected to be completed by early January. The office available for PMDSC field staff was not adequate and request was made to repair the old circuit bungalow to provide supplementary office space.

2. Upper Elahera Canal Repairs to the building for UEC PIU office at Elahera was in progress and expected to be complete by mid-January 2016. The office available for PMDSC field staff was not adequate and a request was made to relocate farmer organisation office to the adjoining building and include the space for PMDSC. PD agreed to provide alternative arrangement at Madatugama office complex from 1 January 2016 if required.

3. North Western Province Canal Construction of the new building for PIU office for NWPC, at Polpithigama is in progress and is expected to be complete by end January 2016. The office space provided was adequate for all PMDSC field staff.

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Minutes of the Meeting (05)

Venue : Program Management Unit, Colombo Date : 4 December 2015 Subject : Pre bid Meeting – MLBCR – NCB-1 Package Present : Mr. Sisira Kumara - Additional Secretary (Technical) MMDE / Program Director (MWSIP) PMU Mr. Vijith Kodituwakku - Procurement Specialist MMDE Mr. Ariyaratne - Civil Engineer PMU Mr. M.D.G. Mangalagama - Office Engineer PMU Mr. M.R. Chegwin - Team Leader PMDSC Mr. Stefan Schmitt - Chief Design Engineer PMDSC Mr. P.W.C. Dayaratne - Procurement Specialist PMDSC Mr. U.N.S. Wickramaratchi - Deputy Team Leader PMDSC Representatives from 10 Bidders

Program Director (PD): MWSIP chaired the meeting and welcomed the bidders. He emphasised the need for maintaining high quality work and timely completions of work as scheduled, as MLBCRP has been recognized by Asian Development Bank (ADB) as a pilot irrigation system rehabilitation project to be presented to executing agencies in future assignments. PD introduced the Program Management, Design and Supervision Consultant (PDMSC), who will function as the "Engineer" for Contracts of MWSIP and informed establishment of the Project Implementation Unit (PIU) office at Hasalaka, headed by Project Director MLBCRP for program implementation on behalf of the Employer

PD stated that water flow in the canal will not be stopped for construction work implementation or any other acute reason during cultivation periods. Hence he requested all bidders to carefully study the item of dealing with water included in the Bill of Quantities (BOQ) as a lump sum item 2.1.2.1, and assess sufficiently the actual dewatering requirement to complete the job without time extensions.

The Procurement and Contracts Specialist of PMDSC presented the scope of work and an overview of the work components. He emphasised the need for carrying out the construction work during water issues in the canal for completing work components within the scheduled period. Attention was drawn to the establishment of material testing laboratory, and Environmental Management and Monitoring Plan (EMMP) as described in Section 6: Employer's Requirements of the bidding document.

Project Director-MLBCRP informed the normal annual closed cultivation periods with no water

Program Management, Design and Supervision Consultant Page 86 Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT issues in the canal are from February to March and from August to November; the proposed tentative closed season for next year: 26 February to 10 March and first week of August to first week of November. The bidders were advised to make maximum use of the closed cultivation periods to expedite the work.

Project Director-MLBCRP informed about the site visit which is to be arranged on 22 December 2015 at 09:30 hours from Hasalaka Project Office. PD announced that the deadline for submission of bids is extended up to 28 January 2016, on or before 15:00 hours.

Clarifications raised by the Bidders and the Responses by the PMDSC Consultants:

No Bidder Query and Response (Company / Firm/ Contractor) 1 Access Engineering PLC Gabion mattresses are included in BOQ (Item No. 2.2.5.8) but not mentioned in the Drawings • Response: Location and thickness will be indicated in an addendum to Bidding documents Geo-textile item not in the BOQ • Response: This will be clarified later in the addendum 2 CML-MTD Construction Ltd Demolition of damaged structures are not separated for concrete and rubble masonry structures in BOQ Item No. 2.1.1.4 and difficult to quote the rate • Response: This will be clarified later by an addendum 3 Edward and Christie Civil How to measure the de-silting quantity in the canal in Engineering & Road BOQ Item No.2.1.3.2 Development Contractors • Response: Using Cross Sectional Surveys of before and after the construction 4 Hovel Construction (Pvt) Ltd Applying the rate of 5% for provisional sum not enough • Response: (i) If works executed by the Contractor – overhead & profit shall be included in the work item: (ii) if plant, materials or services purchased by the contractor – 5% shall be included as handling fee in the claim. • 1500mm long dowels are mentioned in the BOQ item No. 2.2.8.2, but in the drawings it is shown 1000mm dowels. • In BOQ item 2.2.8.1 dowel size is mentioned as 25 mm but in BOQ item 2.2.8.2 the dowel size is 20mm • Response: this will be corrected in the addendum 5 Tudawe Brothers (Pvt) Ltd. BOQ items under 2.2.6: Hydro-mechanical items to be designed by the contractor • Response Yes as per specifications and Engineer’s instructions.

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Minutes of the Meeting (06)

Venue : Central Environmental Authority, Battaramulla Date : 21 December 2015 Subject : NWPC – EIA report

The meeting was chaired by Mr. G. Jayasingha, Director General, Central Environmental Authority in attendance with his staff, present were PD-MWSIP, representatives from Irrigation Department, Mahaweli Authority of Sri Lanka, Forest Department, Wild Life Department, Agrarian Services Department, Divisional Secretaries, and PMDSC.

The PD -MWSIP and the staff of PMU and PMDSC provided further clarifications on the proposed measures for protection of flora and fauna along the canal trace, and including the following: • Presentation on water balance and water availability for NWP – Mr Liyanagama • Wildlife corridor to Hakwatuna reservoir bed including relocation of unauthorised settlers. • Dambulu Oya regulator design modifications. • Water allocation priority for current Mahaweli benefit areas over the proposed new areas.

Summary of the outcome of the discussions is as follows: • Technical Committee Members to inform early CEA any further clarification if necessary. • CEA will forward the written comments of the TEC members to the Project Proponent. • The Project Proponent should submit his responses to the public and TEC comments. • Subject to above the CEA will consider project proposals favourably.

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Minutes of the Meeting (07)

Venue : Central Environmental Authority, Battaramulla Date : 21 December 2015 Subject : Technical Evaluation Committee – Upper Elahera Canal Present : Members of the TEC, PD-MWSIP, PMDSC representatives The discussions encompassed the following: 1. Clarifications on the ADB requirements for Single Stage two-envelope bidding procedure. 2. Modification to UEC reach km 0+100 to 0+660 - replacing rectangular open canal with closed twin barrel conduit. 3. Clarifications to ITB 25.1, 19.2, 18.1 4. Bid validity period: 183 days. 5. VAT increase the amount to 12.5% 6. Name board - include specifications for size and lettering.

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Mahaweli Water Security Investment Program Program Management, Design, and Supervision Consultants Minutes of the Meeting (08) Venue : MWSIP Office Date : 4 January 2016 Subject : PMDSC Present : Mr. Sisira Kumara - Additional Secretary (Technical) MMDE / Program Director (MWSIP) PMU Mr. Ariyaratne - Civil Engineer PMU Mr. M.D.G. Mangalagama - Office Engineer PMU Mr. M.R. Chegwin - Team Leader PMDSC Mr. P.W.C. Dayaratne - Procurement Specialist PMDSC Mr. U.N.S. Wickramaratchi - Deputy Team Leader PMDSC

1. Office facilities - residual refurbishing work will be completed and furnished office will be available by 15 January 2016 for use. 2. Office space requirement: PMDSC expects to deploy about 55 persons in the design office in Colombo by late April or early May 2016 and addition office space and facilities were discussed. 3. Data - water allocation and system management data for studies could be obtained from Water Management Secretariat. PD was requested to facilitate corresponding meetings. 4. Software procurement – Sole agent for supplying GIS – Seek ADB concurrence. 5. Vehicle procurement – adopt local shopping procedure for goods; quotations to include CIF, and taxes separately. 6. Surveys and investigations – adopt local shopping procedure for services. 7. Tranche 1 contracts – MLBCR: submission extended to 28 January 2016. NWPC: needs modifications UEC: attending to TEC comments 8. Draft inception report: 12 February 2016. 9. Tranche 2: include KMTC 10. Kalu Ganga Outlet & interface: need to be coordinated with supervision consultants and finalised early. 11. UEC bed slope adjustments: PMDSC to review the design with due consideration to the design parameters and the available head between Moragahakanda and Huruluwewa.

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Minutes of the Meeting (09)

Venue : ADB Resident Mission, Colombo Date : 12 January 2016 Subject : Procurement Procedures and Environmental Issues Present : Ms. Manjula Amarasingha - Project Management Specialist ADB - Colombo Ms. Taisuke Miyao - Senior Portfolio Management Specialist ADB Colombo Mr. Sisira Kumara - Additional Secretary (Technical) MMDE / PD-MWSIP Mr. M.R. Chegwin - Team Leader PMDSC Mr. P.W.C. Dayaratne - Procurement Specialist PMDSC Mr. U.N.S. Wickramaratchi - Deputy Team Leader PMDSC

1. Environmental studies – EIA studies were conducted for MLBC, UEC and NWP; compatibility of the reports with ADB requirements to be checked and updated.

References could be made to –“Environmental Resource Book – Vietnam” and “Strategic Environmental Planning – GOSL.”

Phase 2 – requires SEA, IEE and EIA: SEA should include review of all project information, environmental development potentials, additional investigations, mitigation measures.

Tranche 2 – Human-elephant conflict – ADB will require action to have been taken on this Tranche 1 issue before approving Tranche 2.

2. Procurement – Inclusion of copies of FIDIC in bid documents is not required: bid documents should give reference only.

Meeting with ADB review mission planned for 20/2/2016

All procurement matters are dealt by ADB head office in Manila All environmental matters are dealt by the ADB office in Colombo

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Mahaweli Water Security Investment Program

Program Management, Design, and Supervision Consultants

Minutes of the Meeting (10)

Venue : Water Management Secretariat, Colombo Date : 19 January 2016 Subject : Hydrological data and information on models currently adopted for system operations Present : Eng. Ms. G.K.T. Samaratunga - Director (Water Management Secretariat) Eng. Mrs. M.L. Nimanthi Manjula - Assistant Director (Water Management Secretariat) Eng. Mr. S.D. Galappaththi - Civil Engineer - Daily Operation and Monitoring and HMIS Eng. Mr. K.L.I.C. Kariyawasam - Civil Engineer - Data base Management and HMIS Mr. D.H.M.S.M Piyathilaka - IT works in WMS and HMIS Dr. Jens Moedinger - Modelling Specialist (I) PMDSC Mr. B.S. Liyanagama - Modelling Specialist (N) PMDSC Mr. U.N.S. Wickaramaratchi - Deputy Team Leader PMDSC

1. Data: available rainfall – runoff data from some stations; the data available with the Irrigation Department and Ceylon Electricity Board need to be collected from the respective sources. 2. Models adopted – Water distribution: Acres Model; Mike Basin Model adopted for planning purposes only; the models need to be calibrated and updated to cater for the current demands. 3. WMS monitor reservoir water levels and main diversion nodes, and rainfall at some stations. 4. Irrigation Department, Mahaweli Authority and Ceylon Electricity Board have their own rainfall-runoff data bases. 5. Meteorological Department has climatic data and rainfall monitored at selected locations spread across the country. 6. WMS staff suggested improvements to make the model user-friendly and improve its flexibility for further improvements to cater for future needs.

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Minutes of the Meeting (11)

Venue : ADB Resident Mission, Colombo Date : 21 January 2016 Subject : Presentation on Procurement procedures Present : Procurements Specialist –ADB and PMDSC staff

Mr. Jagath Peththawadu Procurement Specialist–ADB, presented and outlined ADB procurement procedures and clarified the following: • Financial and progress monitoring – adopt ADB formats and models • Bid evaluations – Stage 1 - verify completeness and responsiveness, Stage 2 – verify substantial responsiveness Stage 3 – Detailed evaluation of bids – sections 2 & 6. Stage 4 – Lowest bid • CECB - Semi government institution, not registered under company act and cannot be accepted as a bidder.

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Minutes of the Meeting (12)

Venue : Program Management Unit, Colombo Date : 26 January 2016 Subject : Technical Evaluation Committee Meeting – UEC and NWPC Tranche 1

1. Present: Mr. Sisira Kumara - Additional Secretary (Technical) MMDE / PD Mr. Vijith Kodituwakku - Procurement Specialist MMDE Mr. Ariyaratne - Civil Engineer PMU Mr. M.D.G. Mangalagama - Office Engineer PMU Mr. M.R. Chegwin - Team Leader PMDSC Mr. Stefan Schmitt - Chief Design Engineer PMDSC Mr. P.W.C. Dayaratne - Procurement Specialist PMDSC Mr. U.N.S. Wickramaratchi - Deputy Team Leader PMDSC

1. Contract Packages • NWPC-NCB-1 • UEC-ICB-1 Pending observations from Cabinet Appointed Tender Board (CATB) attend all observations from the Ministry Tender Board (MTB)

2. The Bids will be on single stage two envelope system. The technical and financial proposals should be separate and any bids where the financial proposals are included in the technical proposal are to be rejected.

3. Bid document should clearly stipulate the above and be explained to the bidders at the Pre- Bid meeting.

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Minutes of the Meeting (13)

Venue : Program Management Unit, Colombo Date : 27 January 2016 Subject : General Progress and Issues Present : Mr. Sisira Kumara - Additional Secretary (Technical) MMDE / Program Director (MWSIP) PMU Mr Ariyaratne - Civil Engineer PMU Mr. M.D.G. Mangalagama - Office Engineer PMU Mr. M.R. Chegwin - Team Leader PMDSC Mr. P.W.C. Dayaratne - Procurement Specialist PMDSC Mr. U.N.S. Wickramaratchi - Deputy Team Leader PMDSC

Current status of program implementation was discussed and the outcome is given below:

1. CEB meeting to gather information – fixed at 9.30 am on 28 January 2016.

2. Kotmale as-built drawings – available at head office and the PMDSC will collect

3. SMEC Report - available and the PMDSC will collect

4. Vehicle for site staff – include in contract for hire and provide specifications

5. Monthly payments to PMDSC – PMU need clarifications of some of the field claims and requested to conform to government regulations on auditing procedures, daily attendance will be reflected in the timesheets of the consultants.

6. Route selection Phase 2 – Establish early dialogue with the stakeholders; in this regard the PD-MWSIP will make arrangements with the stakeholders.

7. Survey maps – PD-MWSIP will approve the purchase of maps from the Survey Department.

8. Web site – Single web domain was concurred.

9. Procurement of goods & services – adopt ADB guidelines and procedures, PD-MWSIP will evaluate and submit the recommendations to ADB for concurrence.

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ANNEX D PMDSC DETAILED WORKPLAN

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WORK SCHEDULE AND PLANNING FOR DELIVERABLES 2016 2017 2018 2019 2020 No. PMDSC Deliverables 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 TASK 1 - PROGRAM MANAGEMENT 1.1 Mobilization 1.1.1 Mobilize, establish project offices in Colombo and sub-project offices 1.1.2 Procure equipment and office staff 1.1.3 Identify the project management needs, planning, strategies and schedules for execution 1.1.4 Start-up meetings with PMU, PIUs and key organizations and stakeholders 1.1.5 Collect design reports, feasibility designs, data and planning information 1.1.6 Identify and scope monitoring, evaluation and reporting requirements 1.1.7 Assess the completion status of available designs, reports, drawings and bid documents 1.1.8 Conduct reconnaissance site visits to Phase 1 project areas and PIU offices 1.1.9 Review and update the implementation schedule 1.1.10 Review and update the work program and staffing schedule 1.1.11 Preparation of Inception Report 1.1.12 Confirm project implementation strategy with MMDE and ADB 1.2 Program Management 1.2.1 Assist MMDE with the establishment of the Project Steering Committee 1.2.2 Update the ToR for ISEWP Consultancy Package 1.2.3 Prepare Quality Assurance Plan (QAP) 1.2.4 Prepare the Risk Management Plan (RMP) 1.2.5 Prepare the Procurement Handbook 1.2.6 Prepare the Financial Management Handbook 1.2.7 Design the Project Performance Management Evaluation System (PPMES) 1.2.8 Scope and initiate baseline and follow-up/monitoring surveys for PPMES 1.2.9 Update and finalize the SIWRM consultancy package 1.2.10 Assist the PMU and PIUs to tender, evaluate and award contracts 1.2.11 Assist MMDE with preparation and updating of project documents for Tranche 2 1.2.12 Assist MMDE with preparation and updating of project documents for Tranche 3 1.2.13 Prepare Project Completion Report Task 1 - Deliverables/Reports Submission 1.1 Inception Report 1.2 Updated ToR and RFP for ISEWP Consultancy Package 1.3 Monitoring and Evaluation Manual (MEM) 1.3 Quality Assurance Plan (QAP) 1.3 Risk Management Plan (RMP) 1.4 Procurement Handbook 1.5 Financial Management Handbook 1.6 Management Information System (MIS) 1.7 Project Performance Management Evaluation System (PPMES) 1.8 Mid-term Reports 1.9 Final Report 1.1 Monthly Reports 1.11 Quarterly Reports 1.12 Briefing Reports 1.13 Draft Periodic Financing Requests 1.14 Environmental Monitoring Reports (semi-annual) 1.15 Resettlement Monitoring and Evaluation Reports 1.16 Project Completion Report 1.17 Special Reports 1.18 Updated ToR and RFP for SIWRM Consultancy Package

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WORK SCHEDULE AND PLANNING FOR DELIVERABLES 2016 2017 2018 2019 2020 No. PMDSC Deliverables 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 TASK 2 - DESIGN REVIEW, DETAILED DESIGN AND CONTRACT DOCUMENTS 2.1 Design Review, Planning and Assessment 2.1.1 Review design concepts, proposed implementation schedule and packaging 2.1.2 Update design criteria and standards 2.1.3 Update implementation schedule 2.1.4 Prepare Hydraulic Structures Design Manual 2.1.5 Prepare SCADA System ToR and specifications 2.2 Advanced Contract Packages 2.2.1 Assess the completion status of tendered bid packages 2.2.2 Review design reports, detailed design drawings, specifications and contract documents 2.2.3 Scope additional surveys and investigations 2.2.4 Prepare and submit Tender Design Review Report 2.2.5 Undertake any necessary additional surveys and laboratory tests, if required 2.2.6 Advise on contract packaging, procurement modality, equipment 2.2.7 Update designs, drawings, BoQs, cost estimates, and specifications, if required 2.2.8 Issue addendas as required with approvals from Client and ADB 2.3 Project 1 (Tranche 1) Contract Packages 2.3.1 Assess the completion status of Project 1 bid packages 2.3.2 Review design reports, tender documents and propose improvements 2.3.3 Scope additional surveys and investigations 2.3.4 Undertake necessary additional surveys, investigations and laboratory tests, if required 2.3.5 Advise on contract packaging, procurement modality, equipment 2.3.6 Update designs, drawings, BoQs, cost estimates, and specifications, if required 2.3.7 Provide criteria for evaluation and selection criteria 2.3.8 Finalize and submit updated tender documents 2.3.9 Prepare Detailed Design Report for Project 1 2.3.10 Prepare Draft MOM Manual for Project 1 2.4 Project 2 (Tranche 2) Contract Packages 2.4.1 Review feasibility designs and design reports 2.4.2 Scope additional surveys and investigations 2.4.3 Undertake necessary additional surveys, investigations and laboratory tests, if required 2.4.4 Update designs, drawings, BoQs, cost estimates, and specifications, if required 2.4.5 Advise MMDE on contract modalities; finalize procurement method for tunneling contract(s) 2.4.6 Finalize the design for a TBM and prepare the technical specifications 2.4.7 Assess access facilities, power requirements and contractors camp(s) requirements 2.4.8 Prepared detailed procurement plans; updated annually as required 2.4.9 Prepare draft tender documents 2.4.10 Finalize tender documents with comments from Client and ADB 2.4.11 Prepare Detailed Design Report for Project 2 2.4.12 Prepare Draft MOM Manual for Project 1 2.5 Project 3 (Tranche 3) Contract Packages 2.5.1 Review feasibility designs and design reports 2.5.2 Scope additional surveys and investigations 2.5.3 Undertake necessary additional surveys, investigations and laboratory tests, if required 2.5.4 Update designs, drawings, BoQs, cost estimates, and specifications, if required 2.5.5 Prepared detailed procurement plans; updated annually as required 2.5.6 Prepare draft tender documents 2.5.7 Finalize tender documents with comments from Client and ADB 2.5.8 Prepare Detailed Design Report for Project 3 2.5.9 Prepare Draft MOM Manual for Project 3 Task 2 - Deliverables/Reports Submission 2.1 Hydraulic Structures Design Manual 2.2 Tender Design Review Report 2.3 SCADA System Report (Terms of Reference and Specifications) 2.4 Detailed Design Report for Project 1 - Interim/Final 2.5 Detailed Design Report for Project 2 - Interim/Final 2.6 Detailed Design Report for Project 3 - Interim/Final 2.7 Draft Management, Operation and Maintenance (MOM) Manuals 2.8 Tender Documents (Projects 1-3)

Mahaweli Water Security Investment Program PMDSC WORK SCHEDULE Mahaweli Water Security Investment Program Program Management, Design and Supervision Consultant

WORK SCHEDULE AND PLANNING FOR DELIVERABLES 2016 2017 2018 2019 2020 No. PMDSC Deliverables 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 TASK 3 - CONTRACT MANAGEMENT, CONSTRUCTION SUPERVISION, COMMISSIONING AND OPERATION 3.1 Pre-Construction Phase 3.1.1 Review and updating of construction schedules 3.1.2 Prepare standard criteria and checklists for tender evaluation 3.1.3 Prepare Construction Supervision Manual 3.1.4 Prepare Health and Safety Manual 3.1.5 Prepare pre-qualification documents, prequalify contractors 3.2 Assistance during Tendering and Contracting 3.2.1 Pre-tender meetings and site visits 3.2.2 Assist during tender period 3.2.3 Assist during tender evaluation 3.2.4 Prepare bid evaluation report 3.2.5 Assist during contract negotiations 3.3 Construction Contract Management 3.3.1 Set-up construction documentation, data transfer system for all contracts 3.3.2 Check and approve the contractors' submissions 3.3.3 Check and approve the contractors' programs 3.3.4 Review and approve the contractors' method statements 3.3.5 Check and approve the contractors' interim payment statements 3.3.6 Progress meetings, measurement and cost control 3.3.7 Manage variation orders 3.3.8 Manage disputes and claims 3.3.9 Issue daywork orders 3.3.10 Prepare partial, substantial and final completion certificates 3.3.11 Assist PMU with contract management and finance related issues - defects liability period 3.3.12 Check and approve as-constructed drawings 3.4 Quality Control of Construction Materials 3.4.1 Supervise contractors' laboratories 3.4.2 Supervise borrow and spoil areas and quarry operations 3.4.3 Assist with the design of concrete mixes and technical specifications 3.4.4 Review and approve the mix designs of concrete and grout mixes 3.4.5 Monitor concrete and grout batching operations 3.5 Construction Supervision 3.5.1 Check and approve contractors' surveys and setting-outs 3.5.2 Supervise civil works 3.5.3 Design services for works during construction 3.5.4 Maintain photographic and written records of all construction activities 3.5.5 Monitor compliance with EMPs 3.5.6 Follow-up and monitoring of the progress of works 3.5.7 Health and safety monitoring 3.6 Testing and Commissioning 3.6.1 Inspect works during defects liability period; assess structural and functional performance 3.6.2 Supervise trial runs of civil works and mechanical and electrical equipment 3.6.3 Prepare an inventory of the defects/damages rectification/repair works 3.6.4 Assist the PMU with evaluation of the proposed rectification/repair works; supervise works 3.6.5 Prepare detailed MOM manuals for all works Task 3 - Deliverables/Reports Submission 3.1 Construction Supervision Manual 3.2 Health and Safety Manual 3.3 Shift Reports 3.4 Weekly Reports 3.5 Monthly Progress Reports 3.6 Annual Progress Reports 3.7 Health and Safety Reports 3.8 Claim Reports 3.9 Contract Completion Reports 3.1 Certificates 3.11 Final Reports 3.12 Technical Review Reports 3.13 Special Reports 3.14 Updated (Final) Management, Operation and Maintenance (MOM) Manuals

Mahaweli Water Security Investment Program PMDSC WORK SCHEDULE Mahaweli Water Security Investment Program Program Management, Design and Supervision Consultant

WORK SCHEDULE AND PLANNING FOR DELIVERABLES 2016 2017 2018 2019 2020 No. PMDSC Deliverables 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 TASK 4 - CAPACITY DEVELOPMENT 4.1 Institutional Development 4.1.1 Identify stakeholders for the investment program 4.1.2 Conduct training needs assessment of MMDE, MASL and DOI 4.1.3 Review of policy and governance environment related to water resources management 4.1.4 Develop training plans and programs and with the PMU formulate training courses 4.1.5 Prepare Training Needs Assessment and Training Plan 4.1.6 Assist PMU to implement training programs, study tours and demonstrations 4.1.7 Update and finalize the SIWRM consultancy package 4.1.8 Advise PMU, PIUs and relevant agencies on improving institutional capacities 4.1.9 Train MMDE and other stakeholders on Mahaweli System hydraulic and hydrological models Task 4 - Deliverables/Reports Submission 4.1 Training Needs Assessment and Training Plan 4.2 Training Completion Report TASK 5 - COMMUNICATIONS 5.1 Strategic Communications Program 5.1.1 Consult with MMDE, relevant government agencies and program beneficiaries/stakeholders 5.1.2 Update Strategic Communications Plan (SCP) 5.1.3 Prepare media publications and video presentations 5.1.4 Assist and advise MMDE to develop and manage an effective public relations plan 5.1.5 Assist MMDE in establishing a proactive informative campaign and stakeholder dialogue 5.1.6 Organize public relations events 5.1.7 Assist PMU with developing and maintaining an investment program website 5.1.8 Assist PMU to maintain and update the website 5.1.9 Prepare a photographic and video diary of the construction works Task 5 - Deliverables/Reports Submission 5.1 Updated Communications Strategy and Plan 5.2 Media publications 5.3 Investment Program Website 5.4 Video Presentation TASK 6 - STRATEGIC ENVIRONMENTAL ASSESSMENT 6.1 Preparation of the SEA 6.1.1 Review the SEA related reports and project EIAs 6.1.2 Conduct kick-off meetings with PMU, CEA and other concerned agencies and stakeholders 6.1.3 Prepare and finalize ToR for SEA and approval by MMDE and ADB 6.1.4 Identify and scope additional socio-environmental surveys 6.1.5 Prepare and submit Inception Report 6.1.6 Reconnaissance site visits and stakeholder meetings 6.1.7 Prepare and submit Interim Report 6.1.8 Prepare and submit Final SEA Report Task 6 - Deliverables/Reports Submission 6.1 Inception Report 6.2 Interim Report 6.3 SEA Final Report

Mahaweli Water Security Investment Program PMDSC WORK SCHEDULE Mahaweli Water Security Investment Program Program Management, Design and Supervision Consultant

WORK SCHEDULE AND PLANNING FOR DELIVERABLES 2016 2017 2018 2019 2020 No. PMDSC Deliverables 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 TASK 7 - PREPARING NCPCP PHASE 2 7.1 Data Collection, Design Review and Sector/System Assessments 7.1.1 Review status of available designs, reports and assess scope of Phase 2 projects 7.1.2 Compile and review available water balance data, climate change analyses and software models 7.1.3 Liaise with MASL Water Management Secretariat to obtain updated water balance data 7.1.4 Conduct reconnaissance site visits to Phase 2 project areas 7.1.5 Review current and planned monitoring and control systems 7.1.6 Identify and scope additional surveys and investigations 7.1.7 Establish Phase 2 route selection criteria with MMDE 7.1.8 Prepare Inception Report 7.2 Water Balance and Climate Change Assessments 7.2.1 Identify and scope data and information needs for hydraulic and hydrological models 7.2.2 Establish design criteria and scope for modeling MMDE and ADB 7.2.3 Review and establish operational rules and framework for modeling; select software package(s) 7.2.4 Develop, calibrate and test software 7.2.5 Hydro-agricultural modeling and computation of irrigation and DMI water demands 7.2.6 Model simulations and reporting 7.2.7 Confirm scope for Phase 2 projects with MMDE 7.3 Feasibility Designs andPlanning 7.3.1 Technical assessment of proposed designs; incorporate results from models 7.3.2 Assess and undertake additional surveys and investigations 7.3.3 Establish design concepts and update design criteria 7.3.4 Undertake additional water balance and multi-criteria analysis for Phase 2 route selection 7.3.5 Prepare feasibility-level designs, cost estimates and drawings 7.4 Safeguards Assessments 7.4.1 Identify, scope and undertake additional socioeconomic surveys and collect field data 7.4.2 Undertake environmental assessments, surveys, and prepare, EARF, EIAs and EMPs 7.4.3 Undertake social and poverty analyses; prepare SPRSS 7.4.4 Prepare resettlement framework, resettlement plans and GRM 7.4.5 Prepare and update consultations and communications plans 7.5 Economic and Financial Assessment 7.5.1 Undertake financial management assessment 7.5.2 Prepare procurement assessment and procurement plan 7.5.3 Agricultural economics analyses and project planning 7.5.4 Detailed economic and financial analyses and modeling 7.6 Project Preparation Documents 7.6.1 Refine technical designs, cost estimates, safeguards/economic/financial assessments 7.6.2 Prepare ToR for detailed engineering designs of Phase 2 projects 7.6.3 Conduct stakeholder consultations and workshops 7.6.4 Prepare feasibility study report 7.6.5 Prepare ADB loan documents; including PDA Task 7 - Deliverables/Reports Submission 7.1 Inception Report 7.2 Route Selection Report 7.3 Interim Report 7.4 Feasibility Design Report for Phase 2 7.5 Project Design Advance (PDA) Documents 7.6 ADB Loan Documents

Mahaweli Water Security Investment Program PMDSC WORK SCHEDULE Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT

ANNEX E DATA REQUIREMENTS FOR GEOTECHNICAL DESIGNS

UEC For Tunnels: - Soil and rock conditions at portal locations - Thickness of overburden, properties of overburden/soil material (shear resistance, permeability) - Rock level at low cover sections, - Occurrence of layers which pose potential waterways (groundwater, surface), permeability of such layers (Lugeon-values) - Rock mechanical parameters for each rock type that will probably be encountered during tunnel excavation (e.g. Unit Weight, UCS, Young’s Modulus, Poisson’s Ratio, estimated GSI, RMR and/or Q-values) - Orientation and shear resistance of discontinuities

NWP For tunnels: - Soil and rock conditions at portal locations - Rock level at low cover sections - Occurrence of layers which pose potential waterways (groundwater, surface), permeability of such layers (Lugeon-values) - Rock mechanical parameters for each rock type that will probably be encountered during tunnel excavation (e.g. Unit Weight, UCS, Young’s Modulus, Poisson’s Ratio, estimated GSI, RMR and/or Q-values) - Orientation and shear resistance of discontinuities

For existing dams to be heightened: - Soil and rock conditions at portal locations - Rock level at low cover sections - Occurrence of layers which pose potential waterways (groundwater, surface), permeability of such layers (Lugeon-values)

MLBCRP Rehabilitation of the existing canal. No design changes envisaged which would require geotechnical data of embankment material and foundation conditions.

KMTC For tunnels: - Soil and rock conditions at portal locations - Rock level at low cover sections - Occurrence of layers which pose potential waterways (groundwater, surface), permeability of such layers (Lugeon-values) - Rock mechanical parameters for each rock type that will probably be encountered during tunnel excavation (e.g. Unit Weight, UCS, Young’s Modulus, Poisson’s Ratio, estimated GSI, RMR and/or Q-values) - Orientation and shear resistance of discontinuities

For Aqueducts: - Foundation conditions (thickness of overburden, rock level, properties of rock and soil)

Program Management, Design and Supervision Consultant Page 102 Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT

Phase 2 (tentative)

Investigations for canals, tunnels, dams including:

Tunnels: - Geological surface mapping - Boreholes at portal locations - Boreholes at specific locations along tunnel trace (low cover areas, undercrossing of streams, roads, railways, settlements, etc.) - Geo-electric Sounding / Seismic Refraction Survey at specific locations along the tunnel trace

Dams: - Geological mapping of dam area - Foundation conditions along proposed dam axes, abutments (boreholes, test pits) - Investigation of construction materials (aggregates, borrow areas, etc.)

Canals: - Investigations of ground conditions of canal trace for quantity estimates (soil-rock)

Program Management, Design and Supervision Consultant Page 103 Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT

ANNEX F DATA REQUIREMENTS FOR MODELLING

Hydrological and meteorological data is required from all (including abandoned) stations in and surrounding the Mahaweli Development Project for the full time period available since start of operation. Stations coordinates are mandatory.

This includes (in order of priority): - River levels and discharges. Rating curves. (daily, hourly if available e.g., for storm events) - Rainfall (minimum daily, hourly if available, and gauges with only monthly data should also be provided) - Temperature (daily min/max/mean) - Evaporation (probably only monthly data available) - Evapotranspiration (daily) - Humidity (daily) - Sunshine hours (daily) - Solar radiation (daily)

Spatial data is required for the rainfall-runoff model: - Digital Elevation Model - Land use - Land cover - Soil

Updated physical data and mapping of the Mahaweli system is required, in GIS format (e.g., shapefiles). Other physical parameters required include:

For all reservoirs: - Elevation-area-volume curve - Tailwater rating curve - Discharge rating curve of individual outlets/weirs/spillways - Turbine characteristics - Operational requirements, constraints, etc. - Reservoir zones and respective penalties (driver for ACRES model)

For all rivers and channels: - Representative cross-section(s) - Length - Slope - Roughness (main, floodplain) - Losses (in-/exfiltration, small offtakes)

For all headwork structures: - Capacity (discharge rating curve) - Operational requirements, constraints, etc.

For all irrigation schemes: - Total lengths of main and secondary canals - Representative cross-section(s) of main and secondary canals - Deliveries, down to secondary canal headworks - Demand (gross, net i.e., diversion and depletion, estimated efficiencies) - Command area, both design and actual (i.e., service area) (gross, net)

Program Management, Design and Supervision Consultant Page 104 Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT

- Return flow fraction (e.g., spills, direct discharges to drains) - Seepage rates - Cropping patterns - Crop yields

Program Management, Design and Supervision Consultant Page 105 Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT

ANNEX G UPDATED STAFFING SCHEDULE

Program Management, Design and Supervision Consultant Page 106 RFP No. CS-1 Project No. 47381-002-SRI (SF) Mahaweli Water Security Investment Program Program Management, Design and Supervision Consultant TIME-BASED TEAM COMPOSITION, ASSIGNMENT AND KEY EXPERTS' INPUTS

TEAM COMPOSITION 2016 2017 2018 2019 2020 No. Name Nationality Position Home Field Total 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 KEY EXPERTS - INTERNATIONAL K-1 Michael Chegwin UK Team Leader and Chief Design Engineer 0 46 46 1.0 1.0 1.0 1.0 0.5 1.0 1.0 1.0 1.0 1.0 1.0 0.5 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.5 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.5 K-2 Martin Brown UK Procurement and Contracts Specialist 5 13 18 0.5 0.5 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-3 David Annandale UK Environment Specialist 1 8 9 0.5 1.0 1.0 1.0 1.0 1.0 0.5 1.0 1.0 0.25 0.25 0.25 0.25 K-4 Roger McIntyre Australia Social and Resettlement Safeguards Specialist 0 7 7 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-5 Darryl Kuhnle USA Communications Specialist 1 7 8 0.5 0.5 0.5 1.0 1.0 1.0 0.5 1.0 0.5 1.0 0.5 K-6 Claes Clifford Denmark Institutional Strengthening Specialist 0 6 6 0.5 0.5 1.0 0.5 1.0 0.5 0.5 0.5 0.5 0.5 K-7 Dr. Tien Hai Truong Vietnam Financial Management Specialist 0 4.5 4.5 0.5 1.0 0.5 0.5 1.0 1.0 K-8 Bernhard Stacherl Austria Chief Design Engineer (Tunnels) 0 4 4 0.5 0.5 1.0 1.0 1.0 K-9 Winfried Guth Germany Senior Design Engineer (Dams and Tunnels) 2 11 13 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-10 Dr. Adrian Kattinger Austria Rock Mechanics Engineer 1 9 10 0.5 0.5 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-11 Dr. Mikhail Rosenberg Germany Senior Structural Engineer 2 4 6 1.0 1.0 1.0 1.0 1.0 1.0 K-12 Dr. Eckhard Schnaecker Germany Senior Engineering Geologist 2 8 10 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-13 Colin Lawrenson UK Senior Mechanical Engineer (TBM) 1 11 12 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-14 Palitha Peiris Germany Mechanical Engineer (Gates/Hydropower) 0 1 1 1.0 K-15 Ralf Bucher Germany Senior Electrical Engineer (TBM) 0 2 2 0.5 0.5 0.5 0.5 K-16 Ralf Bucher Germany Senior Electrical Engineer (Gates/Hydropower) 1 3 4 1.0 1.0 1.0 1.0 K-17 Joerg Weber Germany Hydraulic Structures Engineer 1 1 2 1.0 1.0 K-18 Dr. Robert Rout New Zealand Water Resources/Irrigation Planning Specialist 1 5 6 1.0 1.0 1.0 1.0 1.0 1.0 K-19 Dr. Jens Moedinger Germany Modeling Specialist 4 5 9 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-20 Dr. A. Rajagopal India Economist 0 4 4 1.0 1.0 1.0 1.0 K-21 Werner Buerkler Switzerland Chief Resident Engineer 0 50 50 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-22 David Denman UK Tunnel Construction Engineer 2 19 21 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Sub-total 24.0 228.5 252.5 KEY EXPERTS - NATIONAL K-23 U.N.S. Wickramaratchi Sri Lanka Deputy Team Leader / Prog. Management 55 0 55 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-24 K.A.U.S. Imbulana Sri Lanka Monitoring and Evaluation Specialist 10 0 10 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-25 P.W.C. Dayaratne Sri Lanka Procurement and Contracts Specialist 54 0 54 0.5 1.0 1.0 1.0 1.0 0.5 0.5 0.5 0.5 0.5 0.5 0.5 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-26 Dr. A. Kasige Sri Lanka Environment Specialist 30 0 30 1.0 1.0 0.5 0.5 0.5 0.5 0.5 0.5 0.5 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.5 1.0 1.0 0.5 0.5 0.5 1.0 1.0 0.5 0.5 0.5 1.0 1.0 1.0 K-27 Y.G. Wijeratne Sri Lanka Social and Resettlement Safeguards Specialist 14 0 14 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.5 0.5 0.5 1.0 0.5 0.5 0.5 0.5 0.5 K-28 K. Jinapala Sri Lanka Sociologist 6 0 6 1.0 1.0 1.0 1.0 0.5 0.5 0.5 0.5 K-29 H.M.A.K. Herath Sri Lanka Communications Specialist 33 0 33 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.3 0.2 0.1 0.1 0.1 0.1 0.1 0.1 1.0 1.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 1.0 1.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 1.0 1.0 1.0 K-30 G. Kudaliyanage Sri Lanka Institutional Strengthening Specialist 12 0 12 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-31 S.H.A. Senaratne Sri Lanka Financial Management Specialist 8 0 8 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-32 R.M.P.W.K. Ratnayake Sri Lanka Senior Design Engineer (Dams and Tunnels) 56 0 56 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-33 J. Joachimthasan Sri Lanka Senior Design Engineer (Canals) 32 0 32 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 K-34 A.K.D.N. Atukorala Sri Lanka Rock Mechanics Engineer 44 0 44 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.5 0.5 0.5 0.5 1.0 1.0 1.0 0.5 0.5 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-35 D.F.M. Perera Sri Lanka Senior Structural Engineer 22 0 22 1.0 1.0 1.0 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 K-36 Dr. A. Gunasekera Sri Lanka Senior Engineering Geologist 27.5 0 27.5 1.0 1.0 1.0 1.0 1.0 1.0 0.5 0.5 0.5 0.5 0.5 1.0 1.0 1.0 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 K-37 D.E.N. Rajapakse Sri Lanka Mechanical Engineer (Gates/Hydropower) 2 0 2 1.0 1.0 K-38 H.J. WARNAKULASURIYA Sri Lanka Senior Electrical Engineer (TBM) 6 0 6 1.0 1.0 1.0 1.0 1.0 1.0 K-39 S.K. Weerasena Sri Lanka Senior Electrical Engineer (Gates/Hydropower) 2 0 2 1.0 1.0 K-40 A.L. Buruhanudeen Sri Lanka Hydraulic Structures Engineer 4 0 4 1.0 1.0 1.0 1.0 K-41 S.S. Ranathunga Sri Lanka Water Resources/Irrigation Planning Specialist 11 0 11 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-42 B.S. Liyanagama Sri Lanka Modeling Specialist 20 0 20 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-43 Dr. S. Somaratne Sri Lanka Agriculture Specialist 6 0 6 1.0 1.0 1.0 1.0 1.0 1.0 K-44 P. D. Leelaratne Sri Lanka Economist 10 0 10 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-45 P.I.L. Imbulana Sri Lanka Senior Construction Engineer 55 0 55 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-46 A.M.P.K. Bandara Sri Lanka Resident Engineer - 1 (MLBCR) 40 0 40 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-47 H.M.G. Herath Sri Lanka Resident Engineer - 2 (NWPC) 50 0 50 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-48 V.H.S. Samaratunga Sri Lanka Resident Engineer - 3 (UEC) 46 0 46 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-49 TBN Sri Lanka Resident Engineer - 4 (KMTC) 29 0 29 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-50 M.M. Wijeratne Sri Lanka Tunnel Construction Engineer 47 0 47 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 K-51 W.L.H.M.T. Bandara Sri Lanka Dam Engineer 9 0 9 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Sub-total 740.5 0.0 740.5

Mahaweli Water Security Investment Program STAFF SCHEDULE TIME BASED ACC RFP No. CS-1 Project No. 47381-002-SRI (SF) Mahaweli Water Security Investment Program Program Management, Design and Supervision Consultant TIME-BASED TEAM COMPOSITION, ASSIGNMENT AND KEY EXPERTS' INPUTS

TEAM COMPOSITION 2016 2017 2018 2019 2020 No. Name Nationality Position Home Field Total 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 NON-KEY EXPERTS - NATIONAL N-1 A.M.A.K. Seneviratne Sri Lanka Concrete Engineer - 1 (MLBCR) 26 0 26 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-2 A.D.M.S. Bandara Sri Lanka Concrete Engineer - 2 (NWPC) 32 0 32 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-3 W.M.G.S. Wickramasinghe Sri Lanka Concrete Engineer - 3 (UEC) 31 0 31 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-4 TBN Sri Lanka Concrete Engineer - 4 (KMTC) 29 0 29 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-5 B.A. Tilakaratne Sri Lanka Senior Surveyor - 1 (MLBCR) 30 0 30 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-6 A.H. Rupasinghe Sri Lanka Senior Surveyor - 2 (NWPC) 30 0 30 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-7 B.J.S. Dhas Sri Lanka Senior Surveyor - 3 (UEC) 16 0 16 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-8 TBN Sri Lanka Senior Surveyor - 4 (KMTC) 24 0 24 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-9 A.P. Karunaratne Sri Lanka Quantity Surveyor - 1 (MLBCR) 30 0 30 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-10 W.S. Senanayake Sri Lanka Quantity Surveyor - 2 (NWPC) 30 0 30 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-11 K.M.H. Dias Sri Lanka Quantity Surveyor - 3 (UEC) 16 0 16 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-12 TBN Sri Lanka Quantity Surveyor - 4 (KMTC) 24 0 24 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-13 K.D. Amarasiri Sri Lanka Health and Safety Officer 50 0 50 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-14 I. Wijesekara Sri Lanka Senior Draftsperson 54 0 54 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-15 V.K. Pulasthi Sri Lanka Assistant Design Engineer - 1 54 0 54 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-16 H.K.R. Madushanka Sri Lanka Assistant Design Engineer - 2 12 0 12 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-17 C.D. Kothalawala Sri Lanka Assistant Design Engineer - 3 18 0 18 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 N-18 B.M.D.N. Abeyratne Sri Lanka Assistant Design Engineer - 4 18 0 18 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 N-19 A.G.T.N. Jayaweera Sri Lanka Assistant Design Engineer - 5 21 0 21 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-20 M.I.M. Sabri Sri Lanka Assistant Design Engineer - 6 21 0 21 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-21 A.I. Ahmed Sri Lanka Assistant Design Engineer - 7 21 0 21 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-22 S.A.M.A.N.I. Senarathne Sri Lanka Assistant Design Engineer - 8 21 0 21 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-23 TBN Sri Lanka Assistant Design Engineer - 9 11 0 11 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-24 W.A. Leelaratne Sri Lanka Engineer Assistant (Construction Supervision) - 1 49 0 49 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-25 J.L. Hewawitharana Sri Lanka Engineer Assistant (Construction Supervision) - 2 49 0 49 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-26 W.M. Karunaratne Sri Lanka Engineer Assistant (Construction Supervision) - 3 49 0 49 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-27 E.M.R. Ekanayake Sri Lanka Engineer Assistant (Construction Supervision) - 4 50 0 50 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-28 J.A.S. Jayakody Sri Lanka Engineer Assistant (Construction Supervision) - 5 50 0 50 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-29 R.M. Ranasinghe Sri Lanka Engineer Assistant (Construction Supervision) - 6 47 0 47 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-30 K.R.H.J. Punyasiri Sri Lanka Engineer Assistant (Construction Supervision) - 7 47 0 47 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-31 M.H.A. Amarakoon Sri Lanka Engineer Assistant (Construction Supervision) - 8 42 0 42 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-32 S.M.A. Senarathna Sri Lanka Engineer Assistant (Construction Supervision) - 9 42 0 42 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-33 M.M.L.J. Kalawana Sri Lanka Engineer Assistant (Construction Supervision) - 10 42 0 42 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-34 R.M.A. Ratnayake Sri Lanka Engineer Assistant (Construction Supervision) - 11 24 0 24 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-35 U.L.S. Silva Sri Lanka Engineer Assistant (Construction Supervision) - 12 12 0 12 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-36 TBN Sri Lanka Engineer Assistant (Construction Supervision) - 13 24 0 24 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-37 TBN Sri Lanka Engineer Assistant (Construction Supervision) - 14 6 0 6 1.0 1.0 1.0 1.0 1.0 1.0 N-38 S.C. Herath Sri Lanka Assistant Mechanical/Electrical Engineer - 1 22 0 22 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 N-39 A.J.S. Jayawardane Sri Lanka Assistant Mechanical/Electrical Engineer - 2 26 0 26 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 N-40 B.A.A.I. Karunasena Sri Lanka Assistant Mechanical/Electrical Engineer - 3 23 0 23 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 N-41 S.U. Madushanka Sri Lanka Assistant Mechanical/Electrical Engineer - 4 22 0 22 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-42 TBN Sri Lanka Assistant Mechanical/Electrical Engineer - 5 2 0 2 1.0 1.0 N-43 Y.K.V. Costha Sri Lanka Survey Assistant - 1 53 0 53 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-44 P.G.J.V. Chandrakumara Sri Lanka Survey Assistant - 2 49 0 49 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-45 W.A. U. Sandakelum Sri Lanka Survey Assistant - 3 47 0 47 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-46 M.A.C. Priyadarshana Sri Lanka Survey Assistant - 4 47 0 47 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-47 A.D.A. Wijesundara Sri Lanka Survey Assistant - 5 22 0 22 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-48 T.D.P. Peiris Sri Lanka Survey Assistant - 6 22 0 22 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-49 TBN Sri Lanka Survey Assistant - 7 24 0 24 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-50 A.K.M.N. Abeywickrama Sri Lanka Draftsperson - 1 49 0 49 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-51 D.M.N.N. Dissanayake Sri Lanka Draftsperson - 2 40 0 40 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 N-52 T.M.P.M. Bandara Sri Lanka Draftsperson - 3 22 0 22 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-53 H.G.L. Jayathunga Sri Lanka Draftsperson - 4 22 0 22 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-54 TBN Sri Lanka Draftsperson - 5 7 0 7 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-55 M. P. K. G. Jayathilaka Sri Lanka Assistant Geologist 8 0 8 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 1.0 1.0 N-56 H.E. Weerawanni Sri Lanka GIS Specialist 30 0 30 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 Sub-total 1689.0 0.0 1689.0 NON-KEY EXPERTS - INTERNATIONAL N-57 Stefan Schmitt Germany Chief Design Engineer 0 8 8 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-58 Frank Negrassus Germany Hydropower Engineer (Civil) 2 2 4 1.0 1.0 1.0 1.0 N-59 Karsten Thermann Germany Geotechnical Engineer (Investigations) 2 6 8 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 N-60 Jens Rieg Germany Mechanical Engineer (Turbine) 1 2 3 1.0 1.0 1.0 N-61 Andreas Tietze Germany Senior Design Engineer (Canals) 1 1 2 1.0 1.0 N-62 Hannes Blindenhoefer Germany Hydraulic Modelling Specialist 2 2 4 1.0 1.0 1.0 1.0 N-63 Chongjiang Du China Senior Dam Engineer (RCC Dam Expert) 1 2 3 1.0 1.0 1.0 N-64 Bernd Hein Germany Senior Geotechnical Engineer (Dam Expert) 1 1 2 1.0 1.0 Sub-total 10.0 24.0 34.0 Total 2463.5 252.5 2716.0

Mahaweli Water Security Investment Program STAFF SCHEDULE TIME BASED ACC Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT

ANNEX H TERMS OF REFERENCE

Social and Resettlement Safeguards Specialist (i) Updating the approved RF of the investment program, as necessary; (ii) Updating resettlement plans for Tranches 2 and 3, as necessary; (iii) Designing, commissioning, and supervising the implementation of appropriate socio-economic surveys for Tranches 2 and 3 and Phase 2 investments; and provide all necessary inputs for the preparing the associated social and resettlement activities including the social impact assessments, safeguard planning documents such as RIPs, SPRSS, and gender action plans; (iv) Proposing practical and implementable options for improving resettlement implementation. Draw lessons to be learned from comparable projects and propose practical and implementable options for improvement in resettlement implementation; (v) Preparing MMDE's capacity assessment and involuntary resettlement training programs if gaps are identified; (vi) Assisting PMU in: (a) identifying affected persons and the impact of the project on them; (b) making a detailed inventory of assets; (c) making swift payments of compensation and the provision of other resettlement assistance, along with other relevant agencies; and (d) keeping detailed records of progress on resettlement implementation; (vii) Providing or organising training programs or other forms of support for income restoration and improvement; and (viii) Planning and implementing consultations with affected persons in accordance with the consultation plan. (ix) Updating the existing PSA to adhere to the government’s and ADB requirements.

Modelling Specialist (i) Developing the outline design, framework, application analysis and recommendations for a system operations model of the main conveyance systems of the fully developed Mahaweli System that will support planning, design, and management of the entire system; (ii) Developing a detailed and calibrated rainfall-runoff model and crop water demand model of the complete Mahaweli System that can accurately model spatially and temporally variable rainfall and crop water requirements. The model should provide upstream and downstream boundary conditions to the system operations model. Ideally the two models would be linked, however they should also operate as standalone models; (iii) Operating the model(s) for various time-steps ranging from daily to monthly time-series. This supporting model will also be used by MMDE and other stakeholders for routine water management. (iv) Assisting MMDE and other stakeholders to use the models developed for water management for at least 1 year to ensure effective handover of the tools. (v) Use the developed models to support other PMDSC specialists undertake their work, as necessary; and, (vi) Prepare user manuals for the developed models and provide training to MMDE, MASL, and PMU staff in operating and updating the models.

Environmental Specialist (Time-based contract) (i) Updating the EIAs and IEE, and the respective EMPs based on final detailed designs;

Program Management, Design and Supervision Consultant Page 109 Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT

(ii) Training and building capacity of PMU and PIU staff on environmental management, supervision, reporting, and monitoring of implementation of EMPs; (iii) Orienting contractors on implementation of the EMPs; (iv) Reviewing the environmental method statements provided by contractors and guide them on any revisions required; (v) Monitoring implementation of the EMP and recommending any corrective actions on any unforeseen environmental impacts; (vi) Taking the lead in preparing environmental monitoring reports for PMU, ADB and Central Environmental Authority (CEA); (vii) Assisting with the selection of Phase 2 conveyance options through the application of multi- criteria analysis; and, (viii) Once the Phase 2 route has been chosen, preparing separate EIAs for: (i) the North Central Province Canal Project; and (ii)thechosen southern route option (Polgolla or RKTC).

Rock Mechanics Engineers (Time-based contract) (i) Examining the tunnelling methods (TBM, drill and blast) and recommend appropriate tunnelling method to fit the program time and cost constraints; (ii) Identifying requirements for supplementary field investigations (if necessary) in close cooperation with the Senior Engineering Geologist, design, tender drawings, BOQ and cost estimates for the tunnel components; (iii) Analysing the issue of compatibility of drilling and shotcrete equipment with the tunnel cross section and suggest the most optimal solutions for drilling and shotcrete; (iv) Developing the optimal requirement of important equipment for critical activities of TBM, drill and blast; permanent support works (e.g., shotcrete); headworks; etc.; (v) Reviewing the alignment and design of the tunnels in relation to the type of rock and the thickness of the burden; comment on the geological documentation; and recommend design and construction methods as necessary; (vi) Reviewing the available investigation results on their reliability, completeness and representativeness, and recommend and oversee additional laboratory and/or in-situ tests, if deemed necessary, in close cooperation with the Senior Engineering Geologist; (vii) Reviewing the hazards for all tunnels with regard to low or insufficient rock cover, deep-seated tropical weathering, and karstification; comment on countermeasures and recommend and oversee additional investigations, if necessary; elaborate cost estimates, supervise and evaluate the findings; (viii) Assessing the relevance of elevated primary stress in tunnels with high rock cover of 100m to 370m (RKTC, KMTC, UEC); if positive, recommend in-situ tests for execution; supervise the tests and evaluate the recorded results. If the primary stress exceeds a tolerable limit, inform the PIU, PMU and the Contractor; (ix) Recommending sections for convergence measurements in all tunnels and evaluate the deformations on a graph and comment; (x) Providing continuous representation during the construction of the tunnels and dams. (xi) Checking the Contractor's equipment, all machines and respective personnel and recommend additional resources;

Senior Mechanical Engineer (TBM) (i) Reviewing the geological conditions along the tunnel alignments and the tunnelling concept for TBM drive of KMTC and UEC tunnels;

Program Management, Design and Supervision Consultant Page 110 Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT

(ii) Advising the PMU and PIU on the preferred type of TBMs, their procurement and mobilization, the costs of machines and backup/support systems, as well as possible modalities of financing; (iii) Performing acceptance tests in the course of design and manufacture of the TBMs, in the assembly as well as commissioning phase; (iv) Commenting on the staffing and equipment of the Contractor’s TBMs; and (v) Assisting the Contractor to overcome technical problems with the TBM and/or backup system.

Financial Management Specialists (i) Support the PMU in establishing and using proper project financial management and accounting systems to support financial management of the investment program and adopting the financial management improvement proposed in the FAM; (ii) Support preparation of the Phase 2 investments by: (a) updating the Financial Management Assessment of MMDE, MASL and DOI; (b) preparing the financial evaluation and analysis of the Phase 2 investments which will include both non-income generating components (irrigation and bulk water supply) and income generating components (hydropower). The formats of these as- sessments will follow ADB requirements. (iii) Prepare and revise the project cost estimates, financial monitoring and financial analysis; (iv) Prepare a Financial Management Handbook for the investment program and provide training to the PMU and PIUs as necessary on the handbook, project accounting and ADB procedures for disbursements; (v) Assist the PMU in setting up the overall financial management, i.e., disbursement of funds, re- view of withdrawal applications, monitoring of project and counterpart funds, etc.; (vi) Assist the PMU in implementing improvement measures recommended by the PPTA financial management assessment, and update the FAM accordingly; (vii) Assist PMU staff in the preparation of project accounts in a format suitable for both ADB and national requirements; (viii) Assist PMU staff in developing a system of internal control to ensure accurate and reliable fi- nancial information; (ix) Assist the Team Leader and Deputy Team Leader in timely preparation of reports; and (x) Prepare the Program Fund Disbursement Handbook.

Senior Electrical Engineers (TBM) (i) Reviewing the existing plans and designs, recommending improvements, and assessing or up- dating the cost estimates; (ii) Assisting the PMU and PIU with the supply of required power to the TBM sites; (iii) Advising on the existing capacities of transmission lines and substations, and where necessary recommending improvements and extensions along with preparing pre-feasibility designs and cost estimates; (iv) Carrying out acceptance tests with the manufacturer; (v) Advising on the construction and power distribution on the various sites in cooperation with the health and safety engineer; (vi) Advising on all matters relating to the tunnel and site lighting, air handling, ventilation, de- watering, etc. Reviewing submittals and processing accordingly; (vii) Providing support to preparing Phase 2 investments, as necessary; and (viii) The national specialist will support the international specialist.

Program Management, Design and Supervision Consultant Page 111 Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT

ANNEX I LUMP SUM PAYMENT SCHEDULE

Estimated Deliverable Task % * Month Hydraulic Structures Design Manual 2 2.5 5 Tender Design Review Report 2 5 5 SCADA System Report 2 5 12 Detailed Design Report for Project 1 - Interim/Final 2 4/2.7 8/10 Detailed Design Report for Project 2 - Interim/Final 2 4/2.7 11/13 Detailed Design Report for Project 3 - Interim/Final 2 4/2.7 20/22 Draft Management, Operation and Maintenance Manuals 2 5/5/5 10/13/22 Tender Documents MLBCR - 6 packages - 12.5% / 6 = 2.08% per package 2 2.08 3/4/7 NWPC - 8 packages - 12.5% / 8 = 1.56% per package 2 1.56 3/10/19 UEC - 7 packages - 12.5% / 7 = 1.79% per package 2 1.79 3/6/10/13/19 Inception Report 6 2.5 4 Interim Report 6 2.5 8 SEA Final Report 6 10 10 * Refer to Table 8 of the ToR.

Month % of Lump Sum Contract* 1 0.0% 2 0.0% 3 5.4% 4 8.7% 5 7.5% 6 1.8% 7 4.2% 8 6.5% 9 0.0% 10 24.4% 11 4.0% 12 5.0% 13 9.5% 14 0.0% 15 0.0% 16 0.0% 17 0.0% 18 0.0% 19 11.4% 20 4.0% 21 0.0% 22 7.7% 100% * to be based on actual approval date of Task 2 deliverables

Program Management, Design and Supervision Consultant Page 112 Ministry of Mahaweli Development and Environment Mahaweli Water Security Investment Program INCEPTION REPORT

ANNEX J PROCUREMENT PLAN

Program Management, Design and Supervision Consultant Page 113 PROCUREMENT PLAN

Basic Data Project Name: Mahaweli Water Security Investment Program - Tranche 1 Project Number: 47381-002 Approval Number: 3267/3268 Country: Sri Lanka Executing Agency: Ministry of Mahaweli Development & Environment Project Procurement Classification: Category A Implementing Agency: N/A Project Procurement Risk: Substantial Project Financing Amount: US$ 190,000,000 Project Closing Date: 31 December 2019 ADB Financing: US$ 150,000,000 Cofinancing (ADB Administered): Non-ADB Financing: US$ 40,000,000 Date of First Procurement Plan: 26 June 2015 Date of this Procurement Plan: 1 March 2016

A. Methods, Thresholds, Review and 18-Month Procurement Plan

1. Procurement and Consulting Methods and Thresholds

Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works.

Procurement of Goods and Works Method Threshold Comments International Competitive Bidding for Goods US$ 2,000,000 and Above Threshold applies to all unless propriety items are required from overseas (e.g. MLBCR Goods ICB-01). National Competitive Bidding for Goods Between US$ 100,001 and US$ 1,999,999 Shopping for Goods Up to US$ 100,000 International Competitive Bidding for Works US$ 7,500,000 and Above Except MLBCR-ICB-01 National Competitive Bidding for Works Between US$ 100,001 and US$ 7,499,999 Except MLBCR-ICB-01 Shopping for Works Up to US$ 100,000 Community Participation in Procurement for Up to US$ 20,000 Simple civil works contracts costing Works less than $20,000 each may be directly awarded to project area community groups / civil society organizations as a community works contract using existing government rates. ADB PAI 5.10 for community participation is followed. Force Account for Works Up to US$ 650,000 Includes works and goods. Total amount for entire tranche 1 is $650,000 (this amount includes all contract packages under tranche 1). Existing government rates shall be used. Utility shifting, field office works, and other works by government-owned entities (for activities which cannot be done by competitive contracting such as shifting power and telephone poles, realigning water/drainage pipes, road restoration, cables, cutting trees etc.)

Consulting Services Method Comments Consultant's Qualification Selection for Consulting Firm Least-Cost Selection for Consulting Firm Quality- and Cost-Based Selection for Consulting Firm Quality-Based Selection for Consulting Firm Individual Consultants Selection for Individual Consultant

2. Goods and Works Contracts Estimated to Cost $1 Million or More

The following table lists goods and works contracts for which the procurement activity is either ongoing or expected to commence within the next 18 months.

Review Advertisement Package Estimated Procurement Bidding General Description (Prior/ Date Comments Number Value Method Procedure Post) (quarter/year) MLBCR-IC Heightening of Minipe 6,910,000.00 ICB Prior 1S2E Q4 / 2016 Prequalification B-01 Anicut including water of Bidders: N control facilities for LB and RB canals Domestic Preference Applicable: N

Advance Contracting: Y

Bidding Document: Large Works

MLBCR-N Rehabilitation of Minipe 2,670,000.00 NCB Prior 1S2E Q4 / 2015 Prequalification CB-01 LB Canal from 0+000 of Bidders: N km to 30+140 km - stage 1 Domestic Preference Applicable: Y

Advance Contracting: Y

Bidding Document: Small Works

MLBCR-N Rehabilitation of Minipe 1,320,000.00 NCB Prior 1S2E Q3 / 2016 Prequalification CB-02 LB Canal from 30+140 of Bidders: N km to 49+820 km - stage 2 Domestic Preference Applicable: Y

Advance Contracting: Y

Bidding Document: Small Works

MLBCR-N Rehabilitation of Minipe 5,230,000.00 NCB Prior 1S1E Q3 / 2016 Prequalification CB-03 LB Canal from 49=820 of Bidders: N km to 63=650 km - stage 3 Domestic Preference Applicable: N

Advance Contracting: N

Bidding Document: Small Works

MLBCR-N Rehabilitation of Minipe 2,440,000.00 NCB Prior 1S1E Q3 / 2016 Prequalification CB-04 LB Canal from 63=650 of Bidders: N to 73+960 km - stage 4

Domestic Preference Applicable: N

Advance Contracting: N

Bidding Document: Small Works

NWPC-IC Construction of 47,970,000.00 ICB Prior 1S2E Q1 / 2017 Prequalification B-01 Mahakithula & of Bidders: N Mahakirula tanks, feeder canal of 3.66 km Domestic from Mahakitula to Preference Mahakirula and inlet Applicable: N tunnel to Mahakitula tank from Nebadagahawatta Advance diversion canal Contracting: Y

Bidding Document: Large Works

NWPC-IC Construction of Main 21,350,000.00 ICB Prior 1S2E Q1 / 2017 Prequalification B-02 Canal from of Bidders: N Nebadagahawatta Wewa to Mahakitula Domestic Wewa inlet tunnel Preference (From 5+250 Km to Applicable: N 22+460 Km)

Advance Contracting: N

Bidding Document: Large Works

NWPC-NC Wemedilla LBMC from 5,550,000.00 NCB Prior 1S2E Q1 / 2016 Prequalification B-01 0+000 Km to 5+250 Km of Bidders: N & new Sluice and tail canal Domestic Preference Applicable: Y

Advance Contracting: N

Bidding Document: Small Works

UEC-ICB- Construction of Upper 24,740,000.00 ICB Prior 1S2E Q1 / 2016 Prequalification 01 Elahera Canal From of Bidders: N 0+100 Km to 6+226 Km

Domestic Preference Applicable: N

Advance Contracting: Y

Bidding Document: Large Works

Various Office furniture, IT 1,360,000.00 SHOPPING Prior Q2 / 2014 lots-1 equipment and software

Advance Contracting: N

3. Consulting Services Contracts Estimated to Cost $100,000 or More

The following table lists consulting services contracts for which the recruitment activity is either ongoing or expected to commence within the next 18 months.

Review Advertisement Package Estimated Recruitment Type of General Description (Prior/ Date Comments Number Value Method Proposal Post) (quarter/year) CS-2 “Improving System 1,350,000.00 QCBS Prior Q2 / 2016 STP Assignment: Efficiencies and Water International Productivity” Consultants

Quality-Cost Ratio: 90:10

Advance Contracting: N

Comments: As per FAM. CS-3 Expert panel and other 450,000.00 ICS Prior Q3 / 2015 Assignment: specialist assistance as International

required Expertise: TBD

Advance Contracting: N

Comments: As per FAM.

4. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000 (Smaller Value Contracts)

The following table lists smaller-value goods, works and consulting services contracts for which the activity is either ongoing or expected to commence within the next 18 months.

Goods and Works Review Package General Estimated Number of Procurement Bidding Advertisement (Prior/ Comments Number Description Value Contracts Method Procedure Date (quarter/year) Post) MLBCR Supplying of 660,000.00 1 NCB Prior 1S1E Q4 / 2016 Prequalificati Goods-01 operation and on of maintenance Bidders: N materials Domestic Preference Applicable: N

Advanced Contracting: N

Bidding Document: Goods

Various Utility shifting and 450,000.00 1 FA Post Q4 / 2016 lots-2 deposit works by government-own ed entities

Advanced Contracting: N

Various Community works 180,000.00 1 CPP Prior Q2 / 2016 lots-3 contracts

Advanced Contracting: N

Comments: Many contracts, each contract not exceeding $20,000. Prior review for first contract. Direct contracting.

Various Field office works 300,000.00 5 SHOPPING Post Q4 / 2014 lots-4

Advanced Contracting: Y

Various Vehicles 680,000.00 1 NCB Prior 1S1E Q1 / 2016 Prequalificati lots-5 on of Bidders: N

Domestic Preference Applicable: N

Advanced Contracting: N

Bidding Document: Goods

Consulting Services Review Advertisement Package General Estimated Number of Recruitment Type of (Prior/ Date Comments Number Description Value Contracts Method Proposal Post) (quarter/year) None

B. Indicative List of Packages Required Under the Project

The following table provides an indicative list of goods, works and consulting services contracts over the life of the project, other than those mentioned in previous sections (i.e., those expected beyond the current period).

Goods and Works Estimated Estimated Package Procurement Review Bidding General Description Value Number of Comments Number Method (Prior/Post) Procedure (cumulative) Contracts None

Consulting Services Estimated Estimated Package Recruitment Review Type of General Description Value Number of Comments Number Method (Prior/Post) Proposal (cumulative) Contracts None

C. List of Awarded and On-going, and Completed Contracts

The following tables list the awarded and on-going contracts, and completed contracts.

1. Awarded and Ongoing Contracts

Goods and Works Date of ADB Awarded Advertisement Package General Estimated Procurement Approval of Contract Date Comments Number Description Value Method Contract Value (quarter/year) Award None

Consulting Services Date of ADB Awarded Advertisement Package General Estimated Recruitment Approval of Contract Date Comments Number Description Value Method Contract Value (quarter/year) Award CS-1 Program Design, 22,630,000.00 20,783,510.88 QCBS Q4 / 2014 27-OCT-15 Management and Supervision Consultants

D. National Competitive Bidding

A. Regulation and Reference Documents

1. The procedures to be followed for national competitive bidding shall conform to the provisions prescribed in the Procurement Guidelines 2006 for Goods and Works issued in January 2006 by the National Procurement Agency, and the specific procedures prescribed by the Procurement Manual issued in March 2006, with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the ADB Procurement Guidelines.

B. Procurement Procedures

1. Eligibility

2. The eligibility of bidders shall be as defined under Section I of ADB’s Procurement Guidelines (2015, as amended from time to time) (the “Guidelines); accordingly, no bidder or potential bidder should be declared ineligible for reasons other than those provided in Section I of the Guidelines.

2. Registration and Sanctioning

3. Registration is acceptable under the following conditions:

(i) Bidding shall not be restricted to pre-registered firms under the national registration system of the Institute for Construction, Training and Development (ICTAD), and such registration shall not be a condition for the submission of bids in the bidding process.

(ii) Where registration is required prior to award of contract, bidders: (i) shall be allowed a reasonable time to complete the ICTAD registration process; and (ii) shall not be denied registration for reasons unrelated to their capability and resources to successfully perform the contract, which shall be verified through post-qualification.

(iii) National sanction lists or blacklists may be applied only with prior approval of ADB.

3. Prequalification

4. Prequalification is discouraged for NCB. When used, particularly for works contracts, an individual prequalification exercise is acceptable for each contract as is the use of a registration system (or approved standing list) of contractors based on criteria such as experience, financial capacity, and technical capacity. Foreign bidders from eligible countries must, however, be allowed to register and to bid without unreasonable cost or additional requirements.

4. Advertising

5. The posting of NCB specific notices for contracts valued at less than $1 million on ADB’s website is not required but is highly recommended.

5. Preferences

6. The following shall be observed:

(i) No preference of any kind shall be given to domestic bidders or for domestically

manufactured goods.

(ii) Foreign suppliers and contractors from ADB member countries shall be allowed to bid, without registration, licensing, and other government authorizations, leaving compliance with these requirements for after award and before signing of contract.

6. Participation by Government-Owned Enterprises

7. Government-owned enterprises in the Democratic Socialist Republic of Sri Lanka shall be eligible to participate only if they can establish that they are legally and financially autonomous, operate under commercial law, and are not a dependent agency of the procuring entity, or the Project Executing Agency or Implementing Agency.

7. Rejection of Bids and Rebidding

8. Bids shall not be subjected to a test for unrealistic rates. No lowest evaluated and substantially responsive bid shall be rejected on the basis of comparison to rates, including but not limited to market, historical, or agency established rates, without prior approval of ADB.

9. Bids shall not be rejected and new bids solicited without the ADB’s prior concurrence.

8. Price Negotiations

10. Price negotiation shall be allowed only where the price offered by the lowest evaluated and substantially responsive bidder substantially exceeds costs estimates. Approval of ADB is required prior to any negotiation of prices.

C. Bidding Documents

9. Acceptable Bidding Documents

11. Procuring entities shall use standard bidding documents acceptable to ADB for the Procurement of Goods, Works and Consulting Services, based ideally on the standard bidding documents issued by ADB.

10. Bid Security

12. Where required, bid security shall be in the form of a certified check, a letter of credit or a bank guarantee from a reputable bank.

11. ADB Policy Clauses

13. A provision shall be included in all NCB works and goods contracts financed by ADB requiring suppliers and contractors to permit ADB to inspect their accounts and records and other documents relating to the bid submission and the performance of the contract, and to have them audited by auditors appointed by ADB.

14. A provision shall be included in all bidding documents for NCB works and goods contracts financed by ADB stating that the Borrower shall reject a proposal for award if it determines that the bidder recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or obstructive practices in competing for the contract in question.

15. A provision shall be included in all bidding documents for NCB works and goods contracts financed by ADB stating that ADB will declare a firm or individual ineligible, either indefinitely or for a stated period, to be awarded a contract financed by ADB, if it at any time determines that the firm or individual has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or obstructive practices or any integrity violation in competing for, or in executing, ADB-financed contract.