Social Safeguard Monitoring Report July 2019

SRI: Clean Energy and Network Efficiency

Improvement Project

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

There are four Packages under Loan2892/2893: Clean Energy and Network Efficiency

Improvement Project. This report separately has package 1 & 3 of Social safeguard monitoring

Report.

1

Social Safeguard Monitoring Report

Reporting Period : January 2019 to June 2019

Date of Submission : 15th July 2019

ADB Loan No. 2893 - SRI (SF)

Clean Energy & Network Efficiency Improvement Project

Package 1

Prepared by Clean Energy & Network Efficiency Improvement Project – Package 1(CENEIP-P1), Ceylon Electricity Board for the Asian Development Bank.

This social safeguard monitoring report is a document of the borrower and made publicly available in

accordance with ADB's Public Communications Policy 2011 and the Safeguard Policy Statement 2009.

The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management,

or staff.

2

TABLE OF CONTENTS

NO. ITEMS PAGE

Executive Summary 3

1.0 Introduction 3

1.1 Brief Description of the Project 3

1.2 Brief Description of the Contract package 5

2.0 Current Status of Project Implementation Progress 6

3.0 Compliance to Social Covenants from the ADB Loan Agreement

7

4.0 Compliance to Social Safeguard Monitoring Activities 8

5.0 Implementation of Grievance Redress Mechanism, Complaints Received from Stakeholders and Public Consultation during the Design and Implementation

11

6.0 Social Safeguard Monitoring Checklist 12

7.0 Public Objections and Wayleave Compensation Summary 13

3

Executive Summary

This project is categorized as category "B" for the involuntary resettlement and category "C" for

impacts on the indigenous people. The Central Environment Authority has granted their

approval for the Initial Environmental Examination (lEE) of the project. Hence it can be

concluded this project has less social and environmental impact. The project complies with the

concerned laws and regulations of the country.

All Divisional Secretaries were also informed of all the social issues and mitigation measures to

be adopted and currently various complaints and issues raised by the public are inquired to

address them and find solutions for the satisfaction of every stake holder.

Project implementation has been commenced in 2015. An amendment to the contract of Lot A

has been signed on June 12, 2017, as per the scope revision initiated by CEB and the new

completion date of Lot A as per the contract amendment is April 11, 2019 and later a time

extension has been granted for Lot A contract until November 27, 2019, as per the contractor's

request considering the delays due to Power Transformer supplier change. Four time extensions

have been granted for Lot B contract as per the contractor's request considering the delays due

to adverse weather, material shortage, excessive amount of rock encountering, access restriction

issues, variation order, power outage restrictions etc. Accordingly the scheduled completion

date of Lot B was approved as May 31, 2019. This project component has been completed on

June 30, 2019.

1.0 Introduction

1.1 Brief Description of the Project

Electricity consumers in the Mannar District is provided with electricity at 230V (single

phase) and 400V (three phase) using long distance 33,000V distribution lines and

33,000/400V primary substations. Due to this reason, the electricity supply reliability and

the parameters of the supply (mainly the required voltage) are hampered substantially for

many years. The necessity of addressing this aspect was finally becomes a reality now.

Ministry of Power & Energy and the Ministry of Finance & Planning, successfully

negotiated a loan from Asian Development Bank to construct the much awaited

132,000/33,000V grid substation in Mannar and also to construct a 125km long

220,000V transmission lines from Anuradhapura via Vavuniya to Mannar by connecting

Mannar too with the national power transmission grid.

4

The second most important objective in the construction of 55km long transmission line

from Anuradhapura to Vavuniya is the replacement of already available 132,000V

transmission line which is more than forty (40) years old. This transmission line is the

major and only back bone line that carries bulk electricity energy from the central part of

the country to north. The new transmission line is constructed in 220,000V capacity for

catering the future requirements in the North and Mannar enabling the transfer of more

energy for the development activities and new settlements.

Government of Sri Lanka strongly believes the need of changing the fossil fuel

dependency on electricity generation, mainly due to two factors. One factor is the ever

increasing cost of fossil fuels, draining of hard earned foreign reserves & scarcity of

fossil fuels expected to be seriously felt in next few decades to come. The other most

important factor is the necessity of reducing the pollution of the earth atmosphere by

decreasing fossil fuel burning for power generation, and addressing the needs with

harnessing more and more clean energy resources. Mannar District is also identified as a

potential wind energy resource region. Hence it is proposed by National Electricity

Generation Planners that around 350 MW of wind energy plants shall be developed in the

Mannar District and that energy shall be evacuated to the National Power Grid 220,000V

Electricity transmission system. The transmission line constructed under this project shall

be utilized for that purpose as well.

5

1.2 Brief Description of the Contract package

Asian Development Bank provides financing of US $ 29.98 million for the Clean Energy

and Network Efficiency Improvement Project - Package 1 (Mannar Transmission

Infrastructure) under their loan 2893 - SRI (SF).

This package consists of two lots:

Lot A Lot B

Scope Construction of Mannar 220/33kV grid substation

New Anuradhapura to Vavuniya 55km, double circuit, two Zebra, 132kV transmission line and Vavuniya to Mannar 70km, double circuit, Single

Zebra, 132kV transmission line (Designed for 220kV operations)

Contractor LSIS Co., Ltd, Korea, Consortium of CEYLEX Engineering

(pvt) Ltd, Sri Lanka and LTB Leitungsbau GmbH, Germany

Contact Price US $8.08 M US $ 21.90 M

Completion Date 27.11.2019 31.05.2019

Social Aspect/Land Usage etc

No land acquisition done. Land of Mannar GSS is a government land taken over by CEB.

No land acquisition required. Land of transmission line corridor is compensated as recommended by DSs.

6

2.0 Current Status of Project Implementation Progress

Sub

Project

Description

Status

Lot A

Construction of Mannar

220/33kV grid substation

Amendment to the contract for revised scope has been signed on June 12, 2017 and initial completion date was scheduled as April 11, 2019 as the amended contract. A time extension has been granted until November 27, 2019. Overall physical progress is 67% as at June 30, 2019.

Lot B

New Anuradhapura to Vavuniya 55km, double circuit, two Zebra, 132kV transmission line and Vavuniya to Mannar 70km, double circuit, Single Zebra, 132kV transmission line (Designed for 220kV operations)

Completed as at June 30, 2019.

7

3.0 Compliance to Social Safeguard Covenants from the ADB Loan

Agreement

Product Schedule Para

No.

Description Compliance

Loan 2893

5

2

The Borrower, MOPE, CEB and SEA shall make available all counterpart funds required for the timely and effective implementation of the Project including (a) any funds required to make land or roof top spaces available for the Project; {b) to mitigate unforeseen environmental, resettlement or social impacts; and (c) to meet any additional costs arising from design changes, price escalations or other unforeseen circumstances.

Being complied

4

The Borrower shall ensure, or cause CEB and SEA to ensure, that the preparation, design, construction, implementation, operation and decommissioning of the Project, each Subproject and all Project facilities comply with (a) all applicable laws and regulations of the Borrower relating to environment, health, and safety; (b) the Environmental Safeguards; and {c) all measures and requirements set forth in the respective lEE and EMP, and any corrective or preventative actions set forth in a Safeguards Monitoring Report.

Complied

8

The Borrower shall ensure, or cause CEB and SEA to ensure, that all bidding documents and contracts for Works contain provisions that require contractors to: (a) comply with the measures relevant to the contractor

set forth in the lEE, the EMP and the RP (to the extent they concern impacts on affected people during construction), and any corrective or preventative actions set forth in a Safeguards Monitoring Report;

(b) make available a budget for all such environmental and social measures;

(c) provide CEB and SEA with a written notice of any

unanticipated environmental, resettlement or indigenous peoples risks or impacts that arise during construction, implementation or operation of the Project that were not considered in the lEE, the EMP or the RP;

Complied

8

4.0 Compliance with Social Safeguard Monitoring Activities

Project Activity Potential impact Mitigation measure Parameter to be

monitored

Measurement and

Frequency

Institutional

responsibility Compliance

Pre-construction

Selection of

Transmission

line corridor

Traversing through

protected areas,

Traversing above

houses/buildings.

Excessive

requirements for

clearance of way-

leaves.

Land use restrictions

in areas of high

population density.

Avoid traversing above

Protected and densely

populated areas as much as

possible

Avoid/minimize traversing

above houses/buildings

wherever practicable

Examine alternative routes,

and select the route causing

the minimum impacts on

long-term land-use, and

minimum possible removal

of trees

Protected areas in the

vicinity

Number of buildings

along the line route,

urban and suburban

centers of population

crossed by the line,

proportion of line route

through such areas

During preliminary route

selection, reviewed during

field visits and in final line

design survey, further

reviewed after the notices

are issued and DS’s rulings

CEB Complied

Construction

Clearance of 35m line

corridor

Loss of crops and

therefore adverse

impact on economy

and food security

Payment of appropriate

compensation

% people who received

appropriate

compensation

Monthly Along the line,

especially home gardens

CEB Complied

9

Loss of teak trees in

the Mihintale Forest

Reserve

Enrich similar areas

from the same Forest

Reserve

The extent of the land

enriched

Before the project

completion

CEB and Forest Dept. Complied

Equipment layout and

installation

Noise and vibrations

caused during

Construction activities

Construction techniques

and machinery selection

seeking to minimize

ground disturbance.

Selection of the

machinery by the

Contractor

The noise levels and

condition of the said

machineries -

according to the land

use conditions on and

around the line route

Construction techniques

and machinery creating

minimal ground

disturbance, before

commencement of site

work

CEB Complied

Mechanized

construction

Noise, vibration and

Operator safety

Construction equipment to

be well maintained, and

operated to minimize the

noise &vibrations.

Construction

equipment status, hours

of operation, noise and

vibration, maintenance

Observations during

Site visits, as frequently

as required

CEB

Complied

Operation of heavy

Machinery in night hours

to be limited to very urgent

cases only.

Use low noise mechanical

equipment or use baffles,

proper scheduling of

construction

Inspect construction

equipment and review

machinery

maintenance

Minimize the vibration

from piling and

compaction by using

suitable equipment

10

Temporary blockage,

Loss of service of

utilities

Loss of power supply

to local areas, when

distribution lines

crossing the new

transmission line are

switched off

Minimize the duration

of line shut down by

careful programming of

work

Total hours of power

shutdown

Monitored regularly

During the period of

stringing the conductors.

CEB & Contractor Complied

Provision of facilities

for construction

workers

Contamination of

Receptors (land, water,

air)

Construction work force

temporary facilities to

include proper

Amenities for

Work force facilities,

Presence of proper

Once each new facility CEB & Contractor Complied

High water

requirement leads to

more waste water

Train the work force on

environmental

management and good

practices including

optimum consumption of

water for drinking,

bathing and other

No of training

programs held for the

workforce on

environmental good

practices

Provide adequate

Drinking water to the

work force

The adequacy of

potable water supply

to the work force

Tower foundation

and stringing works

in farmlands/paddy

fields

Loss of agricultural

productivity

Avoid cultivation

& harvesting periods of

paddy fields/farmlands

wherever predictable,

payment of compensation

for any losses incurred

Land area of active

agriculture lost at

each tower footing

sand along the

transmission corridor

Monthly report of the

status

CEB & Contractor Complied

11

5.0 Implementation of Grievance Redress Mechanism, Complaints

Received from Stakeholders and Public Consultation during the

Design and Implementation

The selected line route has been carefully selected with the participation of all

concerned parties [including the Government Agent (GA), Divisional Secretaries &

relevant state organizations] and all the factors such as reserved areas clearance from

the Airport aviation air strip, communal issues etc.

Telephone numbers are available for public to contact the project officials for raising

any complaints, requesting information etc. Moreover public can make their

complaints, views, comments etc. via the official web site of CEB, www.ceb.lk.

People can raise their complaints and grievances through relevant Government

Officials in their areas; Grama Niladhari and Divisional Secretary. They can also

contact PUCSL.

Public were informed well before entering to their properties and all objections

received were handled as per the provisions in the Electricity Act.

Objections hearing meetings with the people who raised objections are completed

within all the divisional secretary areas affected by the project, with the participation

of relevant divisional secretaries. Total number of 115 objections have been received

from the public and all the objections were already resolved with the assistance of

relevant Divisional Secretaries. Accordingly wayleave estimations and compensation

payments are completed. In addition to that paying compensations for the lands

occupied by tower footings is also almost completed with the directive of relevant

Divisional Secretaries (Once CEB provide the location and extent of land occupied

by tower footing, then the DS recommends the compensation to be paid considering

ownership and commercial value of the land).

12

6.0 Social Safeguard Monitoring Checklist

Safeguard Related

requirement Status Completion Dead Line

Financing and Budget Included in the annual budget Through project completion

Compensation Rates Finalized by the respective DSs Through project completion

Disclose Project Activities to Affected Communities

As per the GRM Through project completion

Grievance Redress Records

(i) Records maintain in PMU

(ii) Approximately 100% solved

Throughout the project period and during defect liability period

Establishment of Safeguard Unit

Incorporated to PMU From the beginning of the project

Payment of Compensation.

Almost completed Estimated before starting any physical work of each site

No

. o

f O

bje

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ns

Rec

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ed

Ob

ject

ion

hea

rin

g

mee

tin

g h

eld

No

. o

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ctio

ns

Res

olv

ed

No

. o

f O

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ctio

ns

pen

din

g t

o b

e re

solv

ed

Status of Pending Objections

Co

mp

ensa

tio

n

Est

ima

ted

Co

mp

ensa

tio

n P

aid

Co

mp

ensa

tio

n P

end

ing

Reasons for Pending Compensation

Nuwaragampalatha East 1 Yes 1 0 No pending objections to be resolved 43 43 0 No pending compensations to be paid

Mihinthale 22 Yes 22 0 No pending objections to be resolved 57 57 0 No pending compensations to be paid

Rambewa 17 Yes 17 0 No pending objections to be resolved 98 98 0 No pending compensations to be paid

Medawachchiya 9 Yes 9 0 No pending objections to be resolved 145 145 0 No pending compensations to be paid

Vavuniya South 8 Yes 8 0 No pending objections to be resolved 75 75 0 No pending compensations to be paid

Vavuniya 51 Yes 51 0 No pending objections to be resolved 136 136 0 No pending compensations to be paid

Vengalacheddikulam 0 N/A N/A 0 No pending objections to be resolved 23 23 0 No pending compensations to be paid

Madhu 1 Yes 1 0 No pending objections to be resolved 40 40 0 No pending compensations to be paid

Nanattan 6 Yes 6 0 No pending objections to be resolved 35 35 0 No pending compensations to be paid

Mannar 0 N/A N/A 0 No pending objections to be resolved 7 7 0 No pending compensations to be paid

13

7.0 Public Objections and Wayleave Compensation Summary

Anuradhapura

Status of Resolving Objections Status of Wayleave Compensation

District DS Division

Mannar

Vavuniya