Social Safeguard Monitoring Report February 2020 SRI: Green Power Development and Energy Efficiency Improvement Investment Programme (Tranche 2) Prepared by Ceylon Electricity Board for the Asian Development Bank. This social safeguard monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. Semi- annual Social Safeguard Progress Report ADB Loan 3483/3484 SRI Reporting Period {July 01,2018 to December 31, 2018} Date {February 15, 2019} SRI: Green Power Development and Energy Efficiency Improvement Investment Programme (Tranche 2) Prepared by the Ceylon Electricity Board for the Asian Development Bank 1 ADB – Asian Development Bank CCD – Coast Conservation Department CEA – Central Environment Authority, Government of Sri Lanka 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 IA – Implementing Agency IEE – Initial Environmental Examination LILO – Line – in- Line- out MFF – Multi-tranche Financing Facility MOPE – Ministry of Power and Energy. Government of Sri Lanka PAA – Project Approving Authority PCB – Poly Chlorinated Biphenyl PMU – Project Management Unit REA – Rapid Environment Assessment ROW – Right of Way RP – Resettlement Plan SC or S/C – Single Circuit SF6 – Sulphur Hexafluoride SPS – Safeguard Policy Statement GPD&EEIIP1-2 – Green Power Development & Energy Efficiency Improvement Investment Programme (Tranche 1) Part 2 2 Table of Contents 1 INTRODUCTION ............................................................................................................................. 4 1.1 Project Background .................................................................................................................. 4 2 PROJECT STATUS ......................................................................................................................... 9 2.1 Present Status of these Transmission Infrastructure Development ........................................... 9 2.2 Project Progress Status and Implementation Schedule ...........................................................12 3 RESETTLEMENT AND COMPENSATION PROGRESS ................................................................18 3.1 Package 1: Lot B ....................................................................................................................18 3.2 Package 2: Lot A ....................................................................................................................18 3.3 Package 2: Lot B1 ..................................................................................................................18 3.4 Package 3: Lot A1, Lot A2 and Lot B .......................................................................................18 3.5 Package 04 ............................................................................................................................18 3.6 Package 05 .............................................................................................................................18 4 COMPLAINTS AND GRIEVANCE REDRESS ................................................................................18 4.1 Status of the Grievance Redress Mechanism ..........................................................................18 4.2 Summary of complaint status ..................................................................................................19 5 CONSULTATION AND PARTICIPATION .......................................................................................23 5.1 Public consultation activities ....................................................................................................23 6 CONCLUSION AND FUTURE PLAN .............................................................................................28 6.1 Plans for next monitoring period ..............................................................................................28 6.2 Conclusion ..............................................................................................................................30 7 ANNEXES ......................................................................................................................................30 3 1 INTRODUCTION This document is the Social Safeguards Monitoring Report for the period July 01 2018, through December 31, 2018 for the Green Power Development and Energy Efficiency Improvement Investment Programme - Tranche 2. Tranche 2, consists of three components, namely, Transmission infrastructure enhancement under Package 1, 2 & 3, Efficiency improvement of medium voltage network under Package 4 & 5 and Demand-side management improvement for energy efficiency under Package 6 & 7. All the provinces in Sri Lanka excluding Uva Province will be directly benefitted by the implementation of transmission, distribution and demand side management components of this program. The total investment cost of the Tranche 2 is USD 260 million. ADB will provide USD 150 million while AFD will provide USD 30 million as a loan directly to Ceylon Electricity Board (CEB) under a treasury guarantee. The loan agreement between ADB & CEB was signed on 27th December 2016. The executing and implementing agency for above packages are Ministry of Power, Energy and Business Development & Ceylon Electricity Board respectively. Social Safeguard aspects of each package of the Project is described below. 1.1 Project Background 1.1.1 Package 1: Lot A - Construction of Hambantota 220/132kV Grid Substation & Augmentation of 132/33 kV Hambantota Grid Substation & Lot B - Construction of New Polpitiya - Hambantota 220kV Transmission Line – 150km The Southern Province demonstrates visibly the Sri Lankan government’s efforts to develop regional economies. The new port and new airport in Hambantota offer significant opportunities in diverse business areas, including cargo and shipping, tourism and the service sector. No major power plant developments have been identified in Southern Province until year 2024 and therefore it finds difficulty to provide quality and reliable power supply from existing 132kV network. Further, when the Samanalaweva power station is not in operation, the system reliability in southern province area is not guaranteed under contingency situation. To mitigate above issue Long Term Transmission Development Plan 2013-2022 has identified 220kV transmission connection to Hambantota from New Polpitiya. This will operate as a transmission high way to flow hydro power generated at Mahaweli complex and Laxapana complex to southern load center and hence facilitate to provide quality and reliable power supply to Southern Province. 4 Construction of New Polpitiya-Hambantota 220kV transmission line and Hambantota 220/132kV Grid Substation and Augmentation of 132/33 kV Hambantota Grid Substation are a part of this development. According to the year 2017 transmission network, over loading of Pannipitiya-Panadura 132kV transmission line and severe voltage drops at Embilipitiya, Hambantota, Matara, Beliatta, Galle, Deniyaya grid substations can be observed without the proposed New Polpitiya-Hambantota 220kV transmission line. So, the proposed line is at the highest priority to improve the reliability and voltage profile of the Southern network. 1.1.2 Package 2: Lot B1 Construction of Mannar – Nadukuda 220kV Transmission Line & Lot A Construction of Nadukuda 220/33 kV Grid Substation & Augmentation at Mannar 220/33kV Grid Substation In the efforts to harness renewable energy in the country, wind has been identified as a source of significant potential to generate electricity. Studies carried out by both local and international experts envisaged that 375 MW of wind capacity with 35~45% plant factor could easily be developed in the Mannar island. Accordingly, the Generation and Transmission planning branch of CEB has planned to set up a 220/33kV GSS at Nadukuda in the Manna Island and a 220kV transmission line from Nadukuda to Mannar in order to evacuate the wind power generation in the Mannar Island. Accordingly, a PMU has been established to construct a 100MW Wind Power plant and a separate PMU to construct the transmission infrastructure, under the Green Power Development and Energy Efficiency Improvement Program (Tranche II) which is funded by ADB. Construction of Nadukuda GSS and Mannar Nadukuda Transmission are the important component of the project scope of the Green Power Development and Energy Efficiency Improvement Investment Program (Tranche II). This project component has an estimated cost of 36 MUSD. Under this project component, it is proposed; (1) to construct 220/33kV Grid Substation (GSS) at Nadukuda in Mannar island and the