Public Disclosure Authorized

INTEGRATED SAFEGUARDS DATA SHEET

CONCEPT STAGE

Report No.: 41231

Date ISDS Prepared/Updated: May 9, 2007/October 5, 2007

I. BASIC INFORMATION
Public Disclosure Authorized

A. Basic Project Data

Country: Sri Lanka Project ID: P093996

Additional Project ID (if any):
Project Name: GETAMBE MINI-HYDRO POWER PROJECT
Task Team Leader: Michael Rathnam
Estimated Appraisal Date: November 30, Estimated Board Date: Estimated Date for
2007 ERPA Signing: December 17, 2007
Managing Unit: SASEI Lending Instrument: CN- Carbon Offset
Sector: Energy and Infrastructure
Public Disclosure Authorized

Theme:
IBRD Amount (US$m.):
IDA Amount (US$m.):
GEF Amount (US$m.):
PCF Amount (US$m.):
Other financing amounts by source:
Environmental Category: B
Simplified Processing Simple [ x] Repeater [ ]
Is this a transferred project Yes [ ] No [x ]

B. Project Objectives (PID)

The development objective of the Project is to meet the demand for expansion of generation
Public Disclosure Authorized

capacity in the power sector by renewable energy resources that would otherwise be provided by
fossil fuels. In particular, the Project would assist Sri Lanka in achieving the following
objectives:

• To facilitate the commercialization of renewable energy applications and markets at

the grid-connected level;
• To catalyze local investments in energy generation to respond to increasing energy
demand and energy diversification needs;
• To provide economic and financial benefits to Sri Lanka from reduced exposure to
fluctuating costs of imported fuel; and
• To provide direct and indirect economic and social benefits from having reliable
power supply to meet growing demand.
The global environment objective of this Project is to reduce the emissions of GHG gases by
using market-based mechanisms sanctioned under the Kyoto Protocol to support clean energy
projects in Sri Lanka. To this end the Project will generate greenhouse gas emission reductions
(ERs) in the country’s power sector.

Apart from generating GHG emissions free electricity, the project also (i) Supports employment
generation during the construction and operation of the project, (ii) provides energy security and
reduces foreign exchange burden by displacing costly fuel oil/diesel imports.

C. Project Description (From PID)

The Getambe SHP will have an installed capacity of 12MW and is expected to generate on
average 56 GWh annually. The plant is likely to commence operation by end of 2009. The
current planned project life is 30 years, with essential parts replacement after 10 years and an
overhaul of the machines after 20 years. The project is located on Mahaweli Ganga River and
utilizes the natural elevation drop to harness the hydro-energy potential. There is a large
reservoir (Kothmale) upstream on the same channel and the project has the added advantage of
receiving the regulated flow from the generated power at the Kothmale Hydro-Power House
located near the reservoir. There is a smaller reservoir downstream of the proposed site. The
downstream reservoir supports water supply for irrigation purposes. As a result, a minimum
flow of water is ensured between the two reservoirs. Getambe, therefore, expects to operate with
little seasonal fluctuations in energy output.

All of the electricity generation from Getambe will be sold to the Ceylon Electricity Board
(CEB), the state-owned utility that holds a monopoly on transmission, distribution and retail.
Purchase of electricity is covered under the standard power purchase agreement (SPPA). Based
on the SPPA, CEB will pay Getambe for the actual electricity generation based on the average
avoided cost of the last three years.

Generation from the Getambe will reduce CO2 emissions by displacing thermal generation.
Thermal units are the marginal plants and serve as peaking units with no must run conditions.
The plants currently operate on fuel oil, diesel or Naptha. The share of thermal generation is
expected to increase in the future. Under the baseline view of the Long-Term Generation
Expansion Plan 2006-2020 (LTGEP), CEB forecasts that total thermal generation will increase
to 77% by 2020 from the 2004 level of 62.3% under the very wet scenario.

D. Project location and salient physical characteristics relevant to the safeguard analysis
(if known):
The project is located in the Kandy district of the Central Province. The project area falls into
two Divisional Secretariat (DS) Divisions, namely Harispatuwa DS Division on the left bank and
Gangawatakorale DS Division on the right bank. The project area has a wet climate and the
predominant land-use is homesteads. Both DS divisions have predominantly rural populations
although the areas immediately adjacent to the river are more urban in nature. The project will
not involve clearing of large areas and will not involve any construction activities in protected or
other environmentally sensitive areas. People likely to be affected will be small in number and
will be those who are in the immediate surroundings of the plant site. Within the project area a
religiously sensitive site which is used to perform religious rites for the higher ordination of
Buddhist monks is present.

E. Borrower’s Institutional Capacity for Safeguard Policies:

The policy and regulatory framework in Sri Lanka provides an adequate basis for the mitigation
of potential impacts mentioned above. A brief outline of the framework is given below
- Under the National Environmental Act (NEA), activities that fall into a prescribed category is
required to go through a comprehensive environmental screening and planning process (EIA
or IEE). Accordingly, construction of hydroelectric power stations exceeding 50 MW
requires an IEE/EIA. Similarly, installation of overhead transmission lines of length
exceeding 10 Km and voltage above 50 Kv require an IEE/EIA. Since the proposed project is
under this capacity, an EIA will not be required under the NEA. Regardless, an EIA has
been conducted for this project and approval has been obtained by the Government.
- Under the National Environmental Act, standards have been gazette for water quality, air
quality and noise levels to regulate pollution from development activity.
- Under the Local Authority Ordinances, all construction plans need to be submitted to the
local authority to obtain approval based on conformation to specified code on development
activities. Also, disposal of solid waste and spoil fall under the jurisdiction of the local
authority of the area and will need to be carried out under their guidance.
-
Sri Lanka has ample experience in carrying out EIA which spans over 15 years. The policy and
regulatory framework that is briefly defined above comprehensively addresses natural resources
management and conservation within the country. However, experience in the past years indicate
that while conducting EIAs is relatively well carried out, enforcing mitigatory measures and
monitoring of impacts in the post construction period could be strengthened. The Central
Environmental Authority (CEA) which is the key institute for introducing and managing the EIA
process has benefited from many capacity building programmes in the past which have focused
on stronger enforcement of environmental regulations. The CEA has also embarked on a
program of decentralization with regional offices in eight locations including Kandy in the
Central Province, where the project site is located. There are Divisional Environmental Officers
(DEOs) located in each Local Authority and reporting to a Deputy Director at the Regional
Office. Therefore, it is anticipated that enforcement of regulations will gradually improve in the
future with the increased capacity. Considering this is a high profile project in Kandy, there is
agreement with CEA’s Regional Office that this project will be closely monitored.

F. Environmental and Social Safeguards Specialists on the Team:

Sumith Pilapitiya, Lead Environmental Specialist
Asta Oelsen, Senior Social Development Specialist
II. SAFEGUARD POLICIES THAT MIGHT APPLY

Safeguard Policies Triggered (please explain why) Yes No TBD

Environmental Assessment (OP/BP 4.01) x

Natural Habitats (OP/BP 4.04) x

Forests (OP/BP 4.36) x

Pest Management (OP 4.09) x

Physical Cultural Resources (OP/BP 4.11) x

Indigenous Peoples (OP/BP 4.10) x

Involuntary Resettlement (OP/BP 4.12) x

Safety of Dams (OP/BP 4.37) x

Projects on International Waterways (OP/BP 7.50) x

Projects in Disputed Areas (OP/BP 7.60) x

III. SAFEGUARD PREPARATION PLAN

A. Target date for the Quality Enhancement Review (QER), at which time the PAD-stage ISDS
would be prepared: The ISDS will be updated when the Carbon Finance Memorandum
(CFM) is completed at appraisal stage

B. For simple projects that will not require a QER, the target date for preparing the PAD-stage
ISDS: Target date for preparation of CFM is December 15, 2007

C. Time frame for launching and completing the safeguard-related studies that may be needed.
The specific studies and their timing1 should be specified in the PAD-stage ISDS:

A comprehensive EMP is part of the EIA and the contractor shall be responsible for
implementing the EMP and regularly supervised by the CEA Regional Office staff. The EIA,
however, needs to be strengthened to include the following, which will form the basis for
conditions of effectiveness of the Emission Reduction Purchase Agreement (ERPA).

1 Reminder: The Bank’s Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the
InfoShop and (ii) in-country, at publicly accessible locations and in a form and language that are accessible to potentially affected
persons.
 • Assessment of social impacts. Should include an overview of the various types of impact
the Project would have on the different groups of people.
• Consultation with affected groups. Proper documentation should be included in the EIA
covering the range of consultation held with the various groups affected people including
outcome of such meetings. Record of consultations should provide evidence that
representative sample of community members participated in the consultation process.

The EIA has been supplemented with a draft Abbreviated Resettlement Plan outlining the
compensation framework for the six families to be resettled including livelihood restoration. The
final version of the ARP shall include:
• Documentation of all community consultations and of actual negotiations with individual
families to be resettled including agreements reached and mutually committed to (in writing).
All these documents should be provided with English translation
• The project will acquire/buy the land for affected families to resettle on and ensure that they
get proper title deeds.
• The Grievance Redressal mechanism will include at least one local NGO representative
• The terminology used in the ARP such as ’family’, ’household’ , ’house’/’building’ should be
defined and used in a consistent manner across the document - and be cross-checked in the
calculation of compensation.
• MOUs with affected households should include a package deal whereby e.g. local NGOs
assist and carry out technical monitoring of the house construction and ensure that
compensation be paid in installments to facilitate actual completion of houses
• The ARP shall include a review of the resettlement process towards the end of the project to
assess the resettlement and livelihood restoration

IV. APPROVALS

Signed and submitted by:

Task Team Leader: Michael Rathnam Oct. 11, 2007
Approved by:
Regional Safeguards Coordinator: Frederick Edmund Brusberg Date
Comments:
Sector Manager: Salman Zaher Date
Comments: