Public Disclosure Authorized Executive Summary-Environmental Assessment & Management Framework - SCDP Sri Lanka Strategic Cities Development Project-Additional Financing (P157427) Environment Management Framework 103836 This Environment Management Framework has been cleared by the Regional Safeguard Advisor and been disclosed at Info Shop and in Sri Lanka. Executive Summary Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Chapter 1 Project Description In order to achieve its urban vision and national development objective, the Government of Sri Lanka has set out the Sri Lanka Strategic Cities Program as a common platform where the Government and its development partners can undertake strategic investments in selected cities either in parallel or in phases. The World Bank will embark on the first phase of this program by investing in selected strategic interventions in the cities of Kandy and Galle where it will address a number of issues that are preventing these cities from realizing their full economic potential. The project development objective (PDO) is to contribute to the improvement of urban services and livability in selected strategic cities of Sri Lanka. This would be achieved through shaping city transformations based on the cities cultural and economic assets with strategic investments. The project comprises four components. Component 1 encompasses interventions for Greater Kandy Area. It will include investments to improve selected urban services (rehabilitation/augmentation of municipal water supply, rehabilitation of underground drainage, traffic management, Kandy lake environment improvement) and enhance public urban spaces (improving streetscapes and walkability, traffic/parking reorganization, restoring of historic buildings). Component 2 focuses on the interventions for Greater Galle Area. It will include investments for urban services improvement (drainage improvement, coastal erosion protection) and public space enhancement (improving streetscapes, walkability, land-use modifications, and public space within ancient Galle Fort). Component 3 will provide implementation support and technical assistance activities, with the objective of increasing the technical capacity of municipalities to plan and implement their own infrastructure projects. The additional financing will finance the new Component 4, which will focus on urban interventions within the Jaffna City Region. Such interventions will include priority improvements to reduce flooding and coastal erosion, and upgrade public urban spaces to improve and sustain the City Region. This component includes: Urban services improvements and public urban spaces enhancement. This will include: improvement of drainage network including rehabilitation of ponds and existing drainage infrastructure, preparation of drainage master plan; urban upgrading and cultural heritage, including the enhancement of selected streetscapes and public spaces, restoration and adaptive reuse of historic and landmark buildings; and connectivity improvements such as rehabilitation of link roads and traffic management measures. Institutional strengthening and capacity building. This will include the provision of capacity building support for Project Partner Agencies (PPAs) to plan, design and maintain urban infrastructure; and to provide municipal services. 1 P a g e
Projects and Programs financed with IDA resources need to comply with World Bank Operational Policies. Therefore, sub-projects and components eligible for funding under this project will be required to satisfy the World Bank s safeguard policies, in addition to conformity with environmental legislation of the Government of Sri Lanka (GOSL). As detail designs for a majority of sub-projects or investments under Strategic Cities Development Project (SCDP) have not been finalized at this stage, site-specific Environmental Assessments (EA) cannot be conducted. As such the preparation of an Environmental Assessment and Management Framework (EAMF) has been carried out. The main purpose of the EAMF is to: (a) carry out a generic assessment of environmental impacts from SCDP, and (b) outline a framework for environmental screening, assessment and management, giving details of potential environmental issues, screening criteria and guidelines on what type of environmental tools need to be applied for the various investments prior to commencement of activities. The EAMF will serve as the basis for carrying out safeguards due diligence for all subprojects under the SCDP. Chapter 2 Policy, Legal and Administrative Framework A detailed review of several legislative enactments in Sri Lanka with a direct or linked mandate for environmental/natural resources management and urban services has been undertaken. Of these, the National Environmental Act (NEA) No 47 of 1980 and its amendments is very important as this is an umbrella legislation that covers environmental protection within the country and is administered by the Central Environmental Authority (CEA). Under the NEA, development projects that fall within stipulated categories require Environmental Impact Assessment (EIA) /IEE approval before proceeding to implementation. Application of the NEA to SCDP has been assessed and is deemed will be limited, given that most of the investments are to do with rehabilitation work. However, activities carried out in designated sensitive areas (as prescribed in the NEA) will require CEA clearance. The other relevant legislation to SCDP are the Coast Conservation Act No.57 of 1981 amended by Act No.64 of 1988, the Antiquities Ordinance No. 9 of 1940 and subsequent amendments and the Forest Ordinance. Because Kandy, Galle and Jaffna are historic cities and UNESCO World Heritage Sites, the Antiquities Ordinance will have a strong influence on project procedures. While the Department of Archaeology will be a main counterpart of the project in historic building restoration, guidance as deemed suitable as per the World Heritage Convention will be followed for sub projects implemented in close proximity or within UNESCO World Heritage sites. The Forest Ordinance will become applicable if some projects that are implemented in close proximity to forest reserves have any impact on them. However, no major impacts are expected. Of the World Bank s safeguard policies, the following will apply. OP 4.01 on Environmental Assessment OP 4.04 on Natural Habitats OP 4.11 on Physical Cultural Resources OP 4.36 on Forests While OP 4.01 and OP 4.11 are triggered as the project: (i) is likely to cause adverse environmental impacts due to civil works (mostly localized and lasting only during the construction period); and (ii) will be involved in historic building restoration and also because there could be indirect impacts to historic sites from construction work in its proximity, respectively. OP 4.04 and OP 4.36 are triggered more on a precautionary basis (as the project takes a framework approach) as both cities and its immediate surroundings possess a good natural resource base that include forests, rivers, wetlands and marine habitats. However, none of the project activities are expected to impact any of these habitats in a significant way. 2 P a g e
The SCDP has been categorized as safeguards Category A given the sensitivity of the project locations and the World Heritage status, in addition to the resettlement and land acquisition that would need to take place. Chapter 3 Description of the Project Area Kandy: Located at the center of Sri Lanka, at an altitude of 488.6m (1629 Feet) above sea level Kandy is surrounded by a triangular mountain range, namely the Hantana and Knuckles mountain ranges. The city has been established in the Valley of the Mahaweli River, covers a land area of 1917 square Kilometers and is home to about 120,000 resident population. The Mahaweli River, which is the longest running river in Sri Lanka, flows on the edges of the city. Being the gateway to the central highlands, Kandy s geographic location has made it a major transportation and commercial hub. Almost 50% of the land area in Kandy consists of residential and commercial areas. About 15% of the land has been designated as forest reservations, which are confined to top of the mountain ranges mentioned. Kandy has become the foremost cultural city of Sri Lanka due to a rich heritage of living monument. Not only is it home to a multitude of Buddhist religious monuments, including the most revered Temple of the Tooth Relic, it played center stage for over 600 years of recorded local history. As such, Kandy city has been declared by UNESCO as a Living World Heritage Site. The city has a number of surface water bodies, namely the man-built Kandy Lake which is at the center of the city, Meda Ela that connects the lake and the Mahaweli River and two natural water reservoirs located up in the hill. Solid waste and traffic congestion are two key issues that are affecting the quality of the city environment. Solid waste is currently openly dumped and is causing pollution in the Mahaweli River. Galle: The city of Galle is the administrative capital of the Southern Province. It is a major coastal city situated on the Island s Southwestern tip and is a 120Km drive away from Colombo. It is the administrative and commercial hub for the Southern regions of the island, with major schools hospitals and administrative units being located within the city. Historically a port city, it is also a Heritage city with the Galle Fort area being demarcated a Living UNESCO World Heritage Site. Topographically, the city is situated in the South West coastal plains where most of the land is flat. Gin Ganga, a main river, flows out to sea at Gintota in Galle and the city has a few more canals and lakes. The water flowing in these canals are polluted with wastewater, solid and liquid waste coming in from the city center and residential areas. Rumassala, a forested coastal cliff, coral reefs of Hikkaduwa and Bouena Vista and some mangrove patches along the coast are some of the important natural resources within and in the immediate surroundings of the city. Solid waste management, coastal pollution and inland water pollution are some of the key environmental challenges the city is facing. Jaffna: The Jaffna Peninsula lies in the northern-most part of Sri Lanka. Jaffna is the capital city of the Northern Province of Sri Lanka. It is the administrative headquarters of the Jaffna district located on a peninsula of the same name. Jaffna's suburb, Nallur served as the capital of the four centuries-long medieval Jaffna kingdom. The 1980s insurgent uprising led to extensive damage, expulsion of part of the population, and military occupation. Since the end of civil war in 2009, refugees and internally displaced people have started to return to their homes and government and private sector reconstruction has begun. Jaffna Municipality area consist of 20.1SqKm of which 18.96SqKm are developed and1.19sqkm are undeveloped lands. Nearly 80% of the land are privately owned. JMC has 23 municipal wards with a population of 89,974, Jaffna is Sri Lanka's 12th largest city. Prior to the Sri Lankan civil war, it was the second most populated city after the commercial Capital, Colombo. The Jaffna area has experienced very rapid 3 P a g e
expansion and growth as a single-city agglomeration in the Northern part of the country. The Jaffna Peninsula is small and is generally well connected within the Peninsula, however it has suffered from poor connections with the rest of the country. The recent growth in Jaffna has occurred alongside recent increases in connectivity to the rest of the country. A greater focus on basic services improvement, including strengthening urban planning and management, improving the administrative and management capacity to deliver urban services, will help Jaffna respond more effectively to the reconciliation and development needs and challenges. Currently localized flooding, solid waste management and a lack of planned urban spaces remain areas on which the local authorities require assistance. Chapter 4 Assessment of impacts and impact management framework for management The net environmental impact of the project will be positive. However, during the construction stage, adverse impacts will take place and a preliminary assessment indicates that most of such impacts will be generic construction related impacts while some will be associated with special issues such as dredging and dredge material disposal, land slide hazard, construction near historic sites etc. The EAMF provides detail guidelines for addressing all these potential impacts. All sub-projects under the SCDP will be subjected to a detailed environmental screening at the concept design stage. This will help identify the anticipated environmental impacts, risks and benefits based on the intervention at an early stage and determine if the anticipated impacts and public concern warrant further stand-alone environmental assessments and management plans, and if so, recommend the level of analysis. As a guideline, an early assessment has been made of all proposed investments, and the recommended type of environmental analysis and/or feasibility studies to be undertaken for each type of investment commensurate with the magnitude of potential impacts and risks. Most of the subprojects belong to safeguard Category B and do not need rigorous environmental studies to be undertaken and only the screening report with a site specific EMP would be adequate. Most of the environmental impacts can be effectively mitigated with good construction planning, site management, debris disposal and public safety practices by following environmental codes of practices given in the EAMF. However, specific impacts will need specific guidelines to plan mitigation as provided in the EAMF. Any impacts to forests and natural resources will be identified at the screening stage and depending on the need will be addressed more in detail in the subsequent EAs. The proposed screening criteria has been applied effectively to year 1 projects and completed with the preparation of EMPs. The EMPs will be made part of the tender document and eventually linked to the contract document. Public consultations have been held as part of the EAMF and year 1 project EMP preparations and documented. Any impacts to Physical Cultural Resources (PCRs) as a result of infrastructure development will be identified at the screening stage and mitigated through the following mechanisms. In addition to the Environmental Screening and Management Process, which captures the presence and management of PCRs including chance finds, any proposed project intervention to be conducted either within or in close proximity to a heritage asset will follow a PCR specific procedure of due diligence. These processes have been made as per the universal guidelines of the World Heritage Convention, to which Sri Lanka is party and the ICOMOS Guidance on Heritage Impact Assessments for Cultural World Heritage Properties, as well as national laws and regulations of Sri Lanka. Potential urban upgrading projects that may involve conservation and/or adaptive reuse of heritage properties will follow a procedure which will include PCR 4 P a g e
specific screening followed by a process of impact and risk categorization and preparation of subsequent assessments, management and/or adaptive reuse plans. Chapter 5 Institutional Framework for Safeguards Management The project will be implemented and managed by a self-standing and ring-fenced Project Management Unit (PMU) which will be established under the Ministry of Megapolis and Western Development (MoMWD). The PMU will operate under the oversight of a Steering Committee, chaired by MoMWD s Secretary and composed relevant stakeholder agencies. Local PMU offices will be established in Kandy, Galle and Jaffna, headed by Project Managers. To ensure co-ordination and efficiency, project Coordination and Consultative Committees will be established in Kandy, Galle and Jaffna, chaired by the respective Mayors. The Government through the PMU will be responsible to the Bank for the overall fiduciary and safeguard aspects of the project, for monitoring the agencies compliance with the project s environmental and social safeguards and for overall project monitoring and evaluation (M&E) against results indicators. Implementation arrangements for safeguards management are summarized as follows: Planning, implementation and supervision of environmental safeguards will take place at three levels: MoMWD (through the main PMU) - The overall responsibility of ensuring compliance with environmental safeguards requirements of the project will be borne by the main PMU. It will be supported by a full-time environmental specialist and a physical cultural resources specialist, both directly reporting to the Project Director. The PMU will be responsible for providing overall policy direction, technical assistance, review and endorsement of screening reports, environmental assessment and management plans, capacity building for effective safeguards management to the implementing agencies, monitoring of environmental compliance and progress reporting to the World Bank. Project Execution Agencies (through the local PMUs) - The local PMU office will recruit an environmental specialist for each city who will ensure timely and sound application of the EAMF to the planned investments. The Project Executing Agencies will draw on his/her expertise during the design/implementation stages to complete safeguards work. He/she will work under and report to the PMU. Contractor Implementation of EMPs will largely be the contractor s responsibility (apart from those provisions relating to technical designs and other specified tasks indicated in the EMPs) and for this the contractor will nominate a site engineer as the focal person who will be directly responsible for ensuring compliance with the EMP during construction. Chapter 6: Strategic Environmental Planning The SCDP will support improved city planning and development by financing a Strategic Development and Growth Plan and subsequently an integrated Master Plan for Greater Kandy, Greater Galle and Greater Jaffna. This will be a major output and the road map for development of the three cities. It is recommended that Strategic Environmental Assessments (SEA) are carried out to enhance the city development master plan with elements of sustainability and green city planning based on natural assets and ecological carrying capacities. The role the SEA can play in lessening environmental risk and enhancing its outlook while facilitating economic development in future city development will be an important one. 5 P a g e
Chapter 7: Stakeholder Consultation and Information Disclosure For all types of environmental analyses conducted under the SCDP (including screening), communities in the project sites should be consulted in a structured and culturally appropriate manner. Further, environmental assessment documentation and EMPs should be made available to the public (in accordance with the World Bank s policy on Access to Information) by the PMU prior to tendering of works contracts through the website of the project and notices through media, as appropriate. In addition, it may be necessary to conduct discussions with the regulatory agencies (such as the CEA, Coast Conservation Department (CCD) on relevant issues) and other implementing agencies who would have a stake in the project due to various reasons. Consultation will enable the project implementing agency to understand the stakeholder s requirements and for the stakeholders to develop an understanding of the project so that potential conflicts could be eliminated or minimized. The process of consultation should be documented and account taken of the results of consultation, including any actions agreed resulting from the consultation. Public disclosure of the relevant safeguards documentation will be a pre-requisite for tendering civil works contracts. The contract documents for each contract package will mandatorily include the relevant environmental mitigation provisions stipulated in the EMPs (which would have community concerns reflected, if any) for the given sub-projects, in order to ensure contractor compliance with safeguards requirements. 6 P a g e
SRI LANKA STRATEGIC CITIES DEVELOPMENT PROJECT Resettlement Policy Framework February 2016 This Resettlement Policy Framework has been cleared by the Regional Safeguard Advisor and been disclosed at Info Shop and in Sri Lanka. Executive Summary Introduction: The Strategic Cities Development Project (SCDP) has originally three components. Component 1 deals with Greater Kandy Interventions with the key development concept to relieve traffic congestion and upgrade downtown services and livability to improve and sustain the world heritage city. Component-2 is related with Greater Galle Interventions with the key development concept to integrate coastal development and management, stimulate tourism development and integration with urban centers through urban infrastructure/services improvement. Component 3 aims to strengthen institutional capacity at metropolitan and local levels and support project implementation. Currently, the project is planning to add a fourth component which includes another city region called Jaffna in Northern Sri Lanka. This Resettlement Policy Framework (RPF), previously known as the Social Management Framework (SMF) is a revision to the one previously adopted for social safeguards compliance in respect of Kandy and Galle city region development interventions. This revised RPF responds to the need for addressing social situation in Jaffna City Region that is different to that of Kandy and Galle. Project Description: Strategic Cities Development Project (SCDP) aims to improve selected urban services and public urban spaces in the participating City Regions of Sri Lanka. The project is comprised of four components: Component 1 encompassing interventions in Kandy City Region, Component 2 covering interventions in Galle City Region, and Component 3 providing implementation support, and Component 4 covering interventions in Jaffna City Region. It targets two broad categories of strategic investments: (a) integrated urban services improvement to enhance functional aspects of the city, and (b) public urban spaces enhancement to enhance the attractiveness and livability of the city. Kandy City Region Urban Intervention supports priority investments to relieve traffic congestion and upgrade Municipal services to enhance livability and to sustain the world heritage city and the agglomeration areas. Galle City Region Interventions supports priority improvements to reduce flooding, and upgrade public urban spaces to improve and sustain the City Region. Jaffna City Region Interventions support priority improvements to relieve traffic congestion, improve drainage including storm water retention ponds and upgrade Municipal services to enhance livability and to sustain the cultural heritage city and the agglomeration areas. Potential Social Impacts: The majority of project interventions are expected to create significant social impacts by improving the urban environment and livability of the targeted city regions. However, long term adverse impacts are likely due to land acquisition and resettlement in a few sub-projects involving certain new construction for urban upgrading and road expansion. No indigenous communities are present in the project affected areas, as clarified by Social Assessment (SA). Based on SA, a RPF has been prepared to ensure sustainable resettlement of Affected Persons (APs) and recovery from adverse impacts on property and livelihoods arising from project interventions. It also provides a set of guidelines and measures to make sure that the all APs are able to improve or at least restore lost assets and livelihoods to the pre-project level. Accordingly, the necessary safeguard pg. 1
instruments such as Resettlement Action Plans (RAP) / Abbreviated Resettlement Action Plans (ARAP) and Social Screening Reports (SSR) will be prepared for the subprojects ready with engineering designs. Gender action plan, and a public consultation and participation plan will be developed to mainstream gender and public participation in project implementation. A separate communication strategy will be adopted to facilitate information dissemination, public consultation and participation. Resettlement Policy Framework: The RPF sets out principles and guidelines for assessing and mitigating social impacts caused due to the Strategic Cities Development Project activities in a manner consistent with the Sri Lankan laws, the National Policy on Involuntary Resettlement (NIRP) and the relevant World Bank Operational Policies. It lays down principles and procedures for providing entitlements, institutional arrangements for implementing social/resettlement action plans including grievance redress, consultation, participation, disclosure, monitoring and evaluation of progress and outcomes. It also stipulates supplementary guidelines for a participatory approach aligned with the principles of social inclusion and accountability. Based on the RPF, social screening and impact assessment are carried out and social action plans prepared for sub-projects. Legal Framework and Past Experience: Sri Lanka s legal framework for safeguards consists of Acts (environmental and social), Cabinet decisions, precedents created by Case Law and administrative procedures. The Land Acquisition Act (LAA) 1950 permits acquisition of private lands for public purposes, paying compensation and grievance redress. However, it does not address resettlement issues, including impacts on non-titleholders. NIRP 2001 provides for addressing resettlement and rehabilitation issues including payment of compensation at replacement cost. The Land Acquisition Regulations 2008 and 2013 incorporate many of NIRP principles and set out refined procedures including payment of compensation based on market value for land, structures and crops affected by the project. The government has previous experience in managing projects involving Land Acquisition (LA) and applying Rehabilitation and Resettlement (R&R) policies acceptable to external donors such as World Bank, ADB and JICA. Social Management and Mitigation Measures: RPF in addition to setting out the principles and guidelines, elaborates on the key steps to be taken in involuntary resettlement planning and execution. The cut-off date for eligibility for entitlement for titleholders is the date of publication of Section 2 Notice under the Land Acquisition Act (LAA); for non-titleholders, the RPF defines it as the starting date of census survey. Persons who encroach on the project affected area after the cut-off-date are not entitled to claim compensation or any other form of resettlement assistance. The Entitlement Matrix explains the category and type of loss and the eligible category for entitlements. As the LAA does not address all types of losses, the involuntary resettlement policies (NIRP and World Bank safeguards) are applied to address such issues. All losses as a result of implementation of the SCDP will be compensated. The acquired properties will be compensated at replacement cost based on the prevailing market rates. The Income Restoration Strategy suggests that those who will incur income/livelihood losses will be provided with income assistance for six months or a livelihood restoration assistance. Severely affected poor and vulnerable households will be offered vocational or skills training, income opportunities, or livelihood assistance depending on their losses they are entitled to compensation listed in the LA regulations 2008 and 2013. Information Disclosure, Consultations: The RPF provides a framework for information disclosure and consultation with and participation of the stakeholders in planning and implementing RAPs for various sub-projects. APs will be informed of their rights and responsibilities from the planning stage to the implementation process. APs are consulted during the sub-project prioritization, planning and implementation. Implementation Arrangement: The Project will be implemented by a dedicated Project Management Unit (PMU) of the Ministry of Megapolis & Western Development (MOM&WD) and the sub-projects pg. 2
will be consulted and supervised by Project Partner Agencies (PPAs) including those under the Provincial Councils, namely, Urban Development Authority (UDA), Road Development Authority (RDA), Coastal Conservation Department (CCD), Irrigation Department, National Water Supply & Drainage Board ( NSWDB), Kandy Municipal Council (KMC), Galle Municipal Council (GMC), Jaffna Municipal Council (JMC) and other local government authorities which are within the regions of Greater Kandy, Greater Galle and Greater Jaffna. The institutional arrangements for implementing RPF/RAP will include establishment / strengthening of Social Management Cell at the PMU; establishing LA and R&R teams in each PPA to carry out/coordinate social screening and resettlement impact survey; preparation and implementation of RAPs for the activities (with the help of consultants, if needed); a four stage GRM; and Independent Safeguard Monitoring and Review Mechanisms. The overall coordination of LA and Rehabilitation and Resettlement (R&R) activities will be vested with the PMU. Grievance Redress Mechanism (GRM): A multi-stage GRM will be established with the Local Resettlement Committee (LRC) working as the first stage GRC. If an AP is not satisfied with GRC s decision, the grievance could be submitted to the Project Director (PD) within a week. The PD will take a decision in consultation with the PPA concerned within 3 weeks. If PD s decision too is not acceptable to the AP, he or she can appeal to the Independent Grievance Panel (IGP). The IGP will comprise representatives from Ministry of Land, Ministry of Local Government & Provincial Councils, Department of Valuation a lawyer, a retired senior government servant and a representative of recognized Civil Society Organization and/or person proposed by the APs. If the decision given by Secretary Ministry of Megapolis & Western Development is not acceptable to the AP concerned, the AP can have recourse to Courts of Law. Thus, an AP has four internal grievance redress levels to resolve his or her grievances before seeking intervention by courts. Social Accountability, Inclusion and Gender: RPF emphasizes on the need to pay special attention on these aspects. It therefore provides principles for strengthening social accountability and inclusion through public information; citizen involvement in planning and monitoring of services. In respect of social inclusion and gender mainstreaming, RPF sets out guidelines for ensuring participation of women in resettlement planning process and special assistance to the economically weak, womenheaded and vulnerable households for restoring their livelihoods and incomes that may be affected due to resettlement. Monitoring & Evaluation: Internal as well as independent external monitoring and evaluation will be instituted for this Project. The RPF has identified monitoring indicators. The Monitoring and Evaluation consultants will provide quarterly progress reports and annual safeguards review reports. pg. 3