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INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Date ISDS Prepared/Updated: 15-Jul-2015 Report No.: ISDSCIO64 Date ISDS Approved/Disclosed: 20-Jul-2015 I. BASIC INFORMATION A. Basic Project Data Country: SriLanka Project ID: P132833 Project Name: Task Team Leader(s): Transport Connectivity and Asset Management Project (P132833) Amali Rajapaksa Estimated 08-Feb-2016 Estimated 28-Mar-2016 Appraisal Date: Board Date: Managing Unit: GT106 Lending Specific Investment Loan Instrument: Sector(s): Rural and Inter-Urban Roads and Highways (90%), General transportation sector (10%) Theme(s): Other rural development (50%), Other urban development (50%) Financing (In USD Million) Total Project Cost: 125.00 Total Bank Financing: 125.00 Financing Gap: 0.00 Financing Source Amount Borrower 0.00 International Bank for Reconstruction and Development 125.00. Total 125.00 Environmental Category: Is this a Repeater project? B - Partial Assessment No B. Project Objectives The Project Development Objective (PDO) is to improve connectivity in target corridor(s) through the life cycle approach to asset management. C. Project Description Based on the strategy laid out by the Government of Sri Lanka (GOSL) for poverty reduction, 1000 Grama Sevaka Niladhari Divisions (GND's) that are currently under served have been identified

within a program to improve connectivity to these GND's by rehabilitating 800km of national roads, 1500km of provincial roads and 4,000 km of rural roads. O U The Road Development Authority (RDA) intends to manage its high mobility corridors on an asset management basis and aims to pilot a couple of corridors on an output and performance based contract format over a 8-10 year period to also address the issues that are currently experienced through input contracts. This project is proposed to support the concept and the program of the GOSL of providing connectivity and has two components. (i) Design, rehabilitation and maintenance of Northern and Ruwanpura corridors and (ii) Institutional capacity enhancement of the RDA. Component 1 - Design, Rehabilitation and maintenance of the Northern and Ruwanpura corridors (284 km): This entails two corridors to be developed in two phases: Phasel: Northern Corridor - Ja-ela-Puttalama section of the A003 (126 km) connects the North western and North central provinces providing easy access to the Northern Province. In addition to connecting villages within these provinces to address pockets of poverty it will also better position the Kalpitiya area for high end tourism providing quick access to the Bandaranaike International Airport as well as the cultural city of Anuradhapura. Phase 2: Ruwanpura Corridor - Awissawella-Pelmadulla-Padalangala section of the A004 and A0 18 (158 km) provides access to the Sabaragamuwa province which has limited access and high level of poverty. This component will include the cost of design, rehabilitation, maintenance as well as costs of consultants for carrying out the Monitoring, technical and financial audits. 0 a Component 2 - Institutional Capacity enhancement of the RDA: The team proposes to continue the support extended to the RDA in (i) adopting asset management principles through enhancing the capacity of the RDA in data collection, monitoring and evaluation of performance, adoption of specific standards ; (ii) modernization of the RDA through adopting efficient processors and laboratory facilities that would also be necessary in view of the increase in work load also managing a part of the provincial and rural roads on behalf of the owners; (iii) Assist in the research and adaptation low cost construction methodologies which would impact the entire economy and (iv) Incremental operating cost of the project management unit and the Road Maintenance Trust Fund. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) Phase I- (Ja Ela to Puttalam Road) section is basically composed of about 90 km of urban/semi urban and about 36 km of rural national roads, transitioning between Colombo and Northern part of the Country. The road section is located partially within the wet zone and intermediate zone running parallel and close to the sea on the west side of the country. The land is overall consists of flat terrain. The road section traverse over number of rivers including Uruwal Oya, Maha Oya, Gin Oya, Deduru Oya and Kalagamu Oya. Within the initially identified impacts area, a number of environmentally important and sensitive sites are found including Anawilundawa Wetland, which is a Ramsar Site; two tanks named Mahawewa, Muthurajawela (wetland), Negambo Lagoon, Mundal

0 Lagoon and Puttlam Lagoon. The three lagoons are important fishery areas. Towards the rural section of the road side agriculture/fishery activities such as paddy cultivation, coconut plantations and few prawn farms are present. In addition, as Christianity dominated area, there are many churches particularly on the road side of the urban/semi urban section. Awissawela to Pelmadulla Road section of Colombo Ratnapura Wellawaya Betticaloa road (A04) (CRWB) is two lane road on a rolling terrain. The CRWB road is the trunk road which provides connection to Colombo the capital city from Sabaragamuwa, Uva and Eastern provinces. The road is very important in terms of food security as it provide transport of vegetable grown in Uva province and paddy grown in Eastern province. And also road leads to several tourist destinations such as Ratnapura gem city, Bandarawela hill country, Batticaloa beautiful beaches and sea for wind surfacing. The length of the road section is about 63 km and has lane width of 3m. The road crosses over one of the major rivers in Sri Lanka, named Kalu Ganga. There are few tea and rubber plantations and paddy areas found in the vicinity of the road section. There are no significant environmentally sensitive areas that are found in the initially defined impacts area of the project. Palmadulla-Padanangala Road section, which is part of Al 8 road partially runs through a hilly terrain (Pelmadulla end) and emerge through the flat terrain in the last part of the section (Padanagala end) running through wet, intermediate and dry zones. This trunk road connects to the fast developing Hambantota Distcrict. The road runs parallel to Chandrika Lake and crosses 2 irrigation canals that connect the Chandrika Lake in 3 places. There are some tea and rubber plantations, as well as paddy and highland farming areas closer to the road section. Similar to the Awissawela and Pelmadulla Road section, there are no significant environmentally sensitive areas that are found in the initially defined impacts area of the project. E. Borrowers Institutional Capacity for Safeguard Policies The Borrower's key road agency, RDA has been engaged with the World Bank for about 10 years and developed capacity to assess, implement and monitor environmental and social safeguards. In keeping with the World Bank's Safeguard Policies, the Road Development Authority (RDA) has updated the existing Environmental and Social Management Framework (ESMF) for the proposed long-term engagement in maintaining roads. This framework provides the necessary background for environmental and social considerations to be built into the design of the project so that environmentally and socially sustainable implementation can take place. The Framework will be used as a guide and template by the RDA to undertake environmental and social analysis and ensure compliance with the World Bank's environmental and social safeguard policies and the relevant provisions under the National Environmental Act (NEA) and associated regulations. The RDA also has already commissioned the environmental assessments (EAs) and social impact assessments (SIAs) of the two road sections identified above which will result in site-specific assessments, environmental and social management plans, environmental and social standards for the Output and Performance Based Road Contract (OPRC) and resettlement action plan. This is carried out parallel to the conceptual design that is being prepared. In the absence of a detailed design during the preparation stage, it is expected that the EAs and SIAs and respective plans will be updated as part of the detailed design to be carried out by the OPRC contractor. The contractor will be expected to implement site-specific mitigation measures and ensure standards identified are maintained throughout the contract period. In addition, the contractor is required to obtain and abide by relevant GOSL licenses/approvals for extraction of material from quarries and borrow sites, extraction of sand, as well as licenses for the use of disposal sites etc. and use of sites to establish contract-specific off-site activities. The assessments are expected to review the potential long-term impacts

particularly on the hydrology, which plays a significant role in Ja-Ela-Puttalm Road, as well as future developments that would bring about long-term environmental and social impacts. O U The RDA has established an Environmental and Social Division at RDA to integrate environmental and social issues into the planning process as well as undertake environmental and social monitoring. In support of this, the project will continue to provide training for appropriate RDA staff. The EA process in Sri Lanka is well established with the environmental regulatory agency, Central Environmental Authority (CEA), having EIA review experience of over two decades. However, the weak link in the EA process is in the area of post approval monitoring. Therefore, the project shall continue its initiatives to address this weakness. F. Environmental and Social Safeguards Specialists on the Team Darshani De Silva (GENDR) Susrutha Pradeep Goonesekera (GSU06) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment Yes The project will mainly consists of road OP/BP 4.01 improvement/maintenance activities including rehabilitation, upgrading town sections from 2 lanes to 4 lanes and improving the capacity of some of the bridges. While all these activities will be carried out within the RDA ROW, some of the widening activities may require land acquisition. Therefore, the project will require environmental and social due diligence to be in place and changes to be in line with long-term disaster risk management, especially flood risk planning to be integrated. Within this context, an Environmental and Social Management Framework of RDA has been updated and sites-specific environmental and social assessments and management/action plans will be prepared prior to appraisal. Natural Habitats OP/BP 4.04 Yes One of the road sections goes through and located near number of sensitive natural habitats which requires additional due diligence when designing and implementation of the project. Likely impacts to these natural habitats will be assessed as part of the environment assessment and mitigation measures to avoid the impacts will be identified and included in the project design and implementation. Forests OP/BP 4.36 No Not applicable. Pest Management OP 4.09 No Not applicable.

Physical Cultural Resources Yes Since there are PCRs in the vicinity of one of the OP/BP 4.11 road sections, to ensure the design and implementation takes potential impact to these sites, this policy has been triggered. Similar to natural habitats, the environment assessment will review the potential impacts to each of the sites and will propose mitigation measures. Indigenous Peoples OP/l3P No Not applicable. 4.10 Involuntary Resettlement OP/ Yes Some of the rehabilitation work will involve BP 4.12 improvements such as widening lanes and shoulders, adding extra lanes in steep inclines, etc., and may have possible impacts on people where the existing roads are running through or closer to settlements, business premises, etc. There may also be social impacts in terms of loss of land and other assets/ infrastructure /livelihood located on the land, particularly if the Right Of Way (ROW) is insufficient to meet the design needs. The social assessment will provide the information on social impacts and will form the basis for the preparation of a resettlement action plan. Safety of Dams OP/BP 4.37 No Not applicable. Projects on International No Not applicable. Waterways OP/BP 7.50 Projects in Disputed Areas OP/ No BP 7.60 III. SAFEGUARD PREPARATION PLAN Not applicable. A. Tentative target date for preparing the PAD Stage ISDS: 05-Feb-2016 B. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing 1 should be specified in the PAD-stage ISDS: The ESMF for the project is already in place and site-specific environment and social assessments have already commenced. IV. APPROVALS Task Team Leader(s): Name: Amali Rajapaksa Approved By: Safeguards Advisor: Name: Maged Mahmoud Hamed (SA) Date: 15-Jul-2015 Practice Manager/ Name: Karla Gonzalez Carvajal (PMGR) Date: 20-Jul-2015 Manager: 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.