Appendix 11 Initial Environmental Examination Document Stage: Update Project Number: P47037-005(SRI) October 2016 SRI: Green Power Development and Energy Efficiency Improvement Investment Program – Tranche 2 (Transmission Infrastructure Enhancement) Prepared by Ceylon Electricity Board, Ministry of Power and Renewable Energy, Democratic Socialist Republic of Sri Lanka for the Asian Development Bank. This is an updated version of the draft originally posted in July 2016 available on https://www.adb.org/projects/documents/sri- gpdeeiip-t2-transmission-infrastructure-enhancement-jul-2016-iee i CURRENCY EQUIVALENTS (as of 26 October 2016) Currency unit – Sri Lanka rupee/s (SLRe/SLRs) SLRe1.00 = $0.00678 $1.00 = SLRs147.55 ABBREVIATIONS ADB – Asian Development Bank CCD – Coast Conservation Department CEA – Central Environment Authority CEB – Ceylon Electricity Board DC or D/C – Double Circuit DPR – Detailed Project Report DSD – Divisional Secretariat Divisions EA – Executing Agency EARF – Environmental Assessment and Review Framework EIA – Environmental Impact Assessment EMoP – Environmental Monitoring Plan EMP – Environmental Management Plan EHV – Extra High Voltage GHG – Green House Gas GND – Gram Niladhari Divisions GoSL – Government of Sri Lanka GRC – Grievance Redress Committee GRM – Grievance Redress Mechanism GSS – Grid Sub Station IA – Implementing Agency IEE – Initial Environmental Examination LILO – Line – in- Line- out MFF – Multi-tranche Financing Facility MPRE – Ministry of Power and Renewable Energy PAA – Project Approving Authority PCB – Poly Chlorinated Biphenyl PMU – Project Management Unit GSS – Power Sub Station REA – Rapid Environment Assessment ROW – Right of Way RP – Resettlement Plan SC or S/C – Single Circuit SF6 – Sulphur Hexafluoride SPS – Safeguard Policy Statement WEIGHTS AND MEASURES ha (hectare) – Unit of area km (kilometer) – 1,000 meters kV – kilovolt (1,000 volts) kW – kilowatt (1,000 watts) MW – Mega Watt NOTE{S} In this report, "$" refers to US dollars. “SLRs” refers to Sri Lankan rupees This Initial Environmental Examination is a document of the borrower. 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Table of Contents EXECUTIVE SUMMARY 1 1.0 INTRODUCTION 3 1.1 Background 3 1.2 Scope of Work and Methodology Adopted 5 2.0 POLICY, LEGAL, AND ADMINSTRATIVE FRAMEWORK 7 2.1 Applicable Environmental and other Legislations 7 2.2 Assessment of Legal and Institutional Framework 9 2.3 Applicable International Environmental Agreements 16 2.4 Asian Development Bank’s Safeguards Policies 17 2.5 Other documents relevant to ADB’s Safeguard Policy Statement, 2009 17 3.0 DESCRIPTION OF THE PROJECT 19 3.1 The Project 19 3.2 Type of Project 20 3.3 Justification of the Project 21 3.4 Location 24 3.5 Size and Magnitude of the Operation 38 3.6 Implementation Plan 47 4.0 DESCRIPTION OF ENVIRONMENT (BASELINE DATA) 49 4.1 Kegalle District 49 4.2 Ratnapura District 52 4.3 Nuwara Eliya District 57 4.4 Monaragala District 60 4.5 Hambantota District 65 4.6 Polonnaruwa District 71 4.7 Batticaloa District 75 4.8 Gampaha District 79 4.9 Puttlam District 84 4.10 Colombo District 89 4.11 Kalutara District 93 5.0 ANTICIPATED ENVIRONMENTAL IMPACT AND MITIGATION MEASURES 97 5.1 Environment Impacts and Mitigation Measures 97 6.0 ANALYSIS OF ALTERNATIVES 109 6.1 CEB’S Approach for Route Selection 109 6.2 Alternatives for Subproject Components 109 7.0 INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION 116 7.1 Consultation Findings 118 8.0 GRIEVANCE REDRESS MECHANISM 122 8.1 Awareness of Stakeholders 122 8.2 The Grievance Redress Mechanism and PUCSL 122 9.0 ENVIRONMENTAL MANAGEMENT PLAN 126 9.1 Environmental Management Plan 126 9.2 Environmental Management Plan Budget Costs 131 9.3 Monitoring of Environmental Management Plan (EMP) 131 9.4 Implementation arrangements 132 9.5 Critical Environmental Review Criteria 135 9.6 Associated Facilities 136 10.0 CONCLUSIONS AND RECOMMENDATIONS 137 Annexure 1 System Design Standards Followed by CEB for Setbacks etc. 139 Annexure 2 Alternative Site Analysis for Grid Substations 144 Annexure 3 Alternative Route Analysis for Transmission Lines 151 Annexure 4 Inventorisation along the Transmission Lines 156 Annexure 5 Environment Management Plan (EMP) 190 Annexure 6 Environmental Parameters and Periodicity for Environmental Monitoring Plan 200 Annexure 7 Environmental Safeguard Monitoring Report 205 Annexure 8 Granting of Necessary Wayleaves for Electricity Networks in Sri Lanka - Guidelines for Licensees, Divisional Secretaries and Landowners and/or Occupiers 207 EXECUTIVE SUMMARY 1. ADB is proposing to extend USD 150 million loan (with UDS 30 million cofinancing from AFD) to Sri Lanka’s power sector for Green Power Development and Energy Efficiency Improvement Investment Program (Tranche 2) with a focus to support wind-power development and identify the transmission and distribution projects for evacuation of renewable energy (wind) parks/ projects and overall improvement of energy efficiency and capacity development. 2. The subprojects of Transmission Infrastructure Enhancement of the Green Power Development and Energy Efficiency Improvement Investment Tranche 2 Program include: T-1 Construction of Polpitiya-Hambantota 220 kV Transmission Line T-2 Construction of Colombo B 132/11 kV Grid Substation (GSS) T-3 Augmentation of 220/132/33 kV Biyagama and Kotugoda, 132/33 kV Kolonnawa, 220/33 kV Mannar, Colombo C, and Kolonnawa Stanley Old Grid Substations T-4 Construciton of Padukka – Horana 132 kV Transmission Line T-5 Construction of 220/132/33 kV Hambantota, 220/33 kV Nadukuda and Biyagama Grid Substations T-6 Augmentation of 132/33 kV Ko Padukka, Horana, and Dehiwala Grid Substation T-7 Second Circuit Stringing of Habarana - Valachchenai132 kV Transmission Line T-8 Augmentation of 132/33 kV Madampe Grid substation 3. The Polipitya GSS, Habrana GSS and Padukka GSS were funded under previous ADB projects. The construction of substation involves utilisation of existing CEB lands for 220/33 kV Biyagama, 132/33 kV old Biyagama, Kotugoda and Kolonnawa Old GSSs, 32/11 kV Colombo B GSS, 132/33 kV Madampe GSS. The proposed 220/33 kV Hambantota GSS will be built on 10 acres government land (owned by Mahaweli Authority as shown in the New Zoning Map of the Greater Hambantota Development Area - 2030). The GSS land in Gonnoruwa, Hambantota is within the Managed Elephant Range (MER) and the line is located outside as shown in Figure 11. Very small numbers of trees have to be removed from the land at Hambantota GSS. For any sub-project, acquisition of land will not be required from any surrounding communities. 4. In case of construction of new transmission line, the project would involve survey work, forest work and clearance, design and engineering of plant equipment, floating tenders for procurement, civil work related to 220 kV line and 220/132/33 kV GSS testing and commissioning. Total project work is expected to be completed in 36 months. 5. Impacts are manageable and can be managed cost effectively - environmental impacts are likely to result from the proposed project development. Careful mitigation and monitoring, specific selection criteria and review/assessment procedures have been specified to ensure that minimal impacts take place. The detailed design would ensure inclusion of any such environmental impacts, that could not be specified or identified at this stage, are taken into account and mitigated where necessary. Those impacts can be reduced through the use of mitigation measures such as correction in work practices at the construction sites, or through the careful selection of sites and access routes. 6. The proposed project will have number of positive impacts and negative impacts to the existing environment as follows: Significant improvement in the quality and reliability of the electricity supply to the project affected area according to current demand is the main positive impact. 1 Removal of trees for the transmission line is the main negative impact to the proposed project area. Environment pollution due to cut and fill operations, transportation of construction materials, disposal of debris, disturbance to the farming activities, nuisance from dust, noise, vehicle fumes, black smoke, vibration etc. due to construction activities are the short term negative impacts due to proposed project. There will be loss of agricultural productivity due to obstruction and reduce the land of paddy fields as well as cutting of home gardens of coconut and timber trees which will be compensated based on established rates by CEB. 7. Benefits far outweigh negative impacts - The proposed project will improve operational efficiency and quality of power, reliability of the system and at the same time will reduce system losses. Supply of power to both the local areas and regions will boost economic development of the area by strengthening the power transmission infrastructure. Overall, the major social and environmental impacts associated with transmission projects are limited to the construction period and can be mitigated to an acceptable