E830 November 10, 2003

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized E830 November 10, 2003 SRI LANKA: COMMUNITY DEVELOPMENT AND LIVELIHOOD IMPROVEMENT PROJECT Environment Assessment and Management Framework Prepared by Project Management Unit Community Development and Livelihood Improvement Project Ministry of Rural Economy November 10, 2003

2 SRI LANKA: COMMUNITY DEVELOPMENT AND LIVELIHOOD IMPROVEMENT PROJECT Table of Contents Environment Assessment and Management Framework 1.0 Purpose Project Description Preliminary Environmental Assessment of Activities that may be included in Village Development Plans Government of Sri Lanka Environmental Regulations and Procedures... I Environment Review Annexes 1. List of the Projects falling under the "Prescribed Projects" by the Central Environmental Authority Negative List - Projects not eligible for Funding Checklists for Rapid Environmental Assessment of Community Projects Potential Environmental Issues and Mitigation Measures Pest Management Plan Dam Safety Plan.48 2

3 COMMUNITY DEVELOPMENT AND LIVELIHOOD IMPROVEMENT PROJECT ENVIRONMENTAL ASSESSMENT AND MANAGEMENT FRAMEWORK 1.0 Purpose The Community Development and Livelihood Improvement Project (the Project), to be financed by IDA, aims to enable the rural poor to improve their livelihood and quality of life. The main objective of the project is to support GOSL' s strategy of reducing rural poverty and promotion of sustainable and equitable rural development through better access of the poor to basic social and economic infrastructure and services and support for productive activities, using the CDD approach. The empowerment activities under the project seek to deepen the partnership with civil society, increase the role of local governments to allocate resources for community development in the context of strengthened accountability, enhance financial transparency, and mainstream gender considerations in all anti-poverty efforts. The experiences of the community-driven development approach will be used to scale up the role of poor communities participating in the growth process. The projects development objectives will be achieved through: (a) empowering communities to manage sustainable investments and build accountable and self-governing local institutions; (b) working with local governments which have proved to be more responsive and accountable to increase the size and quality of public expenditures that would be delivered in a community driven and accountable manner; and (c) working with federations of village organizations, private sector and NGOs on economic empowerment to increase size and diversity of livelihood, increased-credit flow, private sector investment in community activities and value added in agriculture. 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). The proposed project is classified as Category B by the World Bank, which means that the project is not expected to have any significant and/or irreversible adverse environmental impacts. In fact, it is expected to be beneficial from an environmental and social perspective. Further, investments are expected to be small, very localized, labor intensive and largely of a rehabilitation or small rural enterprise development nature. No significant impacts are expected on any critical ecosystems or culturally or socially sensitive areas. Any potential impacts are expected to be readily manageable with proper planning and oversight arrangements. World Bank policies and guidelines, pertaining to environmental safeguards, that may require consideration under this project are as follows: 3

4 * OP/BP/GP 4.01 Environmental Assessment * OP/BP 4.37 Safety of Dams * OP 4.09 Pest Management However, based on the experience of the on-going VSHLI initiative upon which this project is based, and the sub-project eligibility criteria agreed with the Government of Sri Lanka (GOSL), the most likely safeguard policy to be triggered under this project will be OP/BP/GP 4.01 on Environmental Assessment and OP 4.09 Pest Management. The Safety of Dams safeguard policy listed above will considered to ensure minimal adverse environmental impacts due sub-projects, that may involve rehabilitation of existing tanks that include a dam. Particular attention is needed during preparation of village development plans to ensure that the Forestry and Natural Habitats safeguard polices are not triggered since the Southern and Uva Provinces contain large extents of land that are under forestry and natural habitats. However, all such environmentally sensitive areas have been declared as "protected areas" under the Fauna and Flora Protection Ordinance and the Forestry Ordinance. Therefore, development activities are not permitted under protected areas in Sri Lanka, except under exceptional circumstances with the prior concurrence of either the Director General of the Department of Wildlife Conservation (DWLC) or Conservator General of Forests. There will be no activities supported under this project that will be within designated protected areas, therefore, the forestry and natural habitats safeguard policies are not being triggered under the project. Considering the demand driven nature of the project, specific sub-projects to be funded under the Project will be identified by rural communities as part of their village development plans. Therefore, specific environmental assessments on village development plans cannot be conducted at this stage. However, an environmental assessment was conducted on all possible sub-projects that could be undertaken in the two provinces. The list of sub-projects was comprehensive. Thereafter, based on a survey of the development needs participating communities, activities most likely to be funded under the project have been identified from the general environmental assessment conducted. Activities that were identified in the EA to have significant environmental issues and/or above the financial threshold for funding a village development plan, are listed as activities that will be ineligible for funding under the Project. A list of activities that are ineligible for funding is identified in Annex 2. An Environmental Assessment and Management Framework (EAMF) has been prepared, based on potential sub projects that will most likely be included in village development plans by the respective rural communities in the two selected provinces. The EAMF will be used to identify potential environmental impacts of activities/sub-projects identified in the respective village development plans and be used to integrate mitigatory measures into the sub-project designs. Therefore, the resulting village development plan would have integrated environmental mitigatory measures into the designs of sub-projects. A plan for monitoring environmental conditions will be developed for each village development plan as part of developing indicators for overall project monitoring. This document describes the Environmental Assessment and Management Framework, which will be used as a template, for identification and mitigation of environmental impacts for 4

5 activities/sub-projects that will be included in village development plans. These documents have been prepared in lieu of a project specific EA to appraise the environmental aspects of the project. It has also been made available for public review and comment in appropriate locations in Sri Lanka and in IDA's Public Information Center in accordance with BP requirements of disclosure. The EAMF will be used by respective rural communities with technical assistance from service providers of the communities' choice, to integrate environmental concerns and include mitigatory measures in the village development plans. The service providers could be Government Officials, Non Governmental Organizations (NGOs), academia or the private sector. 1.0 Project Description The Sri Lanka Community Development and Livelihood Improvement Project will include the following four components: (A) Village Development; (B) Institutional Strengthening; (C) Innovation Seed Fund; and (4) Project Management. Component A - Village Development: This component consists of the following three sub-components: (i) Formation, development and strengthening of community based organizations; (ii) Community Sub-projects; and (iii) Inter-village Roads. Al: Formation, Development And Strengthening Of Community Based Organizations: The goal of this subcomponent is to develop self reliant, self managed and sustainable people's organizations for community development and livelihood improvement in the rural areas. Activities to be financed under the sub-component will include: (a) facilitation support by the Divisional Facilitation Team; (b) support by resource persons, NGOs and other institutions with expertise in CBOs' capacity building; (c) Workshops and trainings to community members, CBOs, and facilitators on institutional building, preparation of Village Development plans, preparation and appraisal of sub projects, community monitoring, general principles of financial management, environmental management and community procurement and so on; (d) Capacity building of para-professionals; (e) Support to set up and manage Community Learning Centers; (f) support to set up and manage companies. A2. Community Sub Projects: This sub-component will finance four main activities: (i) Capacity Building Fund; (ii) Community and Social Infrastructure Activities and Services; (iii) Income Generating Activities, and (iv) Incentive Fund. (i) Capacity Building Fund. The Fund consists of 10% of the amount for community sub projects. Funds are transferred directly to CBOs on receipt of the proposals. The objectives of this sub-component are to encourage a paradigm shift from supply driven to demand driven capacity building inputs and to ensure communities' access to financial resources to actively plan and manage their development plans (including partnerships with the private sector). It is designed for communities to maintain a cadre of facilitators to assist them in developing participatory and inclusive Village Plans and in managing their own organizations; to secure services from a wide range of service providers, to ensure technical soundness and feasibility by accessing technical services; to access 5

6 experts in the field of enterprise development and market linkages, and to enhance the skills base of para-professionals and CBOs' office bearers in areas like book keeping, financial management, community procurement, environmental management, sub-project planning and implementation. (ii) Community and Social infrastructure Activities and Services. The objectives of this sub-component are to ensure inclusive and participatory processes in the identification, prioritization and planning of community infrastructure and social services; to empower the communities to manage execution of the identified infrastructure activities; and to expand the scope of social services already accessible to the communities. It is designed to facilitate communities to identify their priority needs for improving quality of their lives. This process of identification and prioritization calls for community cohesion, participation of all the members and sensitivity to the needs of the poorest and the vulnerable. The communities will also be made aware of the project appraisal process so that their sub- projects will meet appraisal criteria. Communities will also be assisted in assessing environmental impacts of sub projects. This sub-component will finance identification of priority needs through a participatory approach and selection of interventions which meet the principle of equity, sustainability and productivity; formulation of sub projects on community and technically and financially feasible social infrastructure activities and services; appraisal of sub projects by the provincial appraisers; and execution and monitoring of sub projects by CBOs. (iii) Income Generating Activities. The objective of this component is to develop sustainable micro-finance institutions at the community level able to meet their members' credit requirements and to assist them in taking up a wide range of income generation activities. The sub-component will finance the following activities: (a) preparation by CBOs and appraisal by the Provincial Appraisal Teams of sub projects for accessing the community investment fund for building micro finance institutions; (b) technical support by the National Core Team to expand income generation opportunities; and (c) the establishment by the District Coordination Committee and the National Core Team of linkages with formal financial institutions (Commercial banks in the Government and private sector) to meet the growing credit demand of the rural poor. (iv) Incentive Fund. This Fund is assigned to those villages that follow truly participatory and inclusive processes in their identification and prioritization of development activities. The objective of this component is to ensure that communities do not exclude the most vulnerable and voiceless groups(members of lower castes, womensupported households, refugees, alcohol-addicted, disabled, and so on) from the development process. A3. Inter-village Roads (Rural Roads). The objective of this subcomponent is to improve the network of inter-village roads to secure better access of project villages to main roads and market places. Main activities to be financed by the sub-component include the following: (i) Identification of the inter-village roads to be taken up; (ii) Work estimates by Pradeshiya Sabha Technical Officers; (iii) Appraisal of proposals; (iv) 6

7 Agreement between Pradeshiya Sabhas and the Project on works' execution and release; and (v) Roads' execution and maintenance by Pradesiya Sabhas. Component B: Institutional Strengthening: The objective of this component is to encourage the establishment of highly sensitized and pro poor and responsive Project teams, Government agencies, Pradeshiya Sabhas, NGOs and Private sector, with capacities to promote community driven development. This component consists of the following three sub-components: (i) Capacity Building of National, District and Divisional Project teams; (ii) Capacity Building of Support Organizations and Service Providers; and (iii) Monitoring and Learning. Bi. Capacity Building of National, District and Divisional Project Teams. The objective of this sub-component is to develop a shared vision and build required competences among project teams at national, district and divisional levels to enable them to perform their respective roles. This will be achieved by promoting experiential learning, exposure to the organized communities to demonstrate their strength and develop sensitivity to their needs. The project will identify the mix of skills, attitude, and orientation required for the project teams, the line agencies, Pradeshiya Sabhas, NGOs and private sector to respond to the needs of the rural communities. The focus shall be on the role these agencies can meaningfully play to nurture and empower rural communities. Project teams will receive intensive training on social mobilization, community participation, social capital, community based organizations, micro finance institutions, village development plans, environment management and Monitoring and Evaluation. The line departments will receive training on how to give space to the CBOs in the development agenda and on improving the quality of services to be provided to the rural poor. The Pradeshiya Sabhas will be facilitated to actively participate in the program and their capacities will be built to gradually replace the project teams and take over management of the program ( 2 nd phase). B2. Capacity Building of Support Organizations and Service Providers. The objective of this sub-component is to facilitate the active participation of NGOs and the private sector to expand livelihoods options of the poor. The project would invest in building their capacities to so as mould them to forge linkages with the rural communities. The project will identify the NGOs with considerable experience in nurturing community driven development and organize their exposure to project initiatives and facilitate their interaction with CBOs to establish linkages. Similarly, the private sector will be exposed to CBOs. B3. Monitoring and Learning. The objective of this sub-component is to monitor performance (including implementation of the Environmental Management Plans) and progress of the project and to disseminate it among all stakeholders to enable them to effectively address project implementation issues. The sub-component will finance establishment and strengthening of a Monitoring and Learning system that will serve the needs of project agencies at all levels. The information will flow from community members to the Project Director through the Divisional Coordinator interfacing with Divisional Secretaries and service providers. The format for monitoring records will be 7

8 designed with the participation of various stakeholders. Participatory techniques like beneficiaries' self assessments, focus groups and key informant discussions will particularly be used for process monitoring, on issues related to the evolution of subprojects, their inclusiveness, transparency and the level of participation in project benefits and in decision-making processes. Process monitoring will be carried out by an external agency. The Monitoring and Learning Coordinator from the project team will anchor all related activities, such as Baseline survey, MIS, process monitoring, follow up studies, impact evaluation and community monitoring. Component C. Innovation Seed Fund: The objective of this component is to conduct and possibly replicate pilots on innovative ideas with the potential to expand livelihood options of the rural poor. The component consists of the following three sub-components: (i) Private Sector Linkages; (ii) Product Development/Test Marketing; and (iii) Information Technology Linkages. Cl. Private Sector Linkages. The objective of this sub-component is to promote partnership with private sector so to widen the livelihood options for the poor and to promote micro enterprises. This subcomponent will finance the promotion of: (a) partnerships with the private sector to develop innovative enterprises; and (b) demand driven vocational training facilities to link up job opportunities for educated youths. Care would be taken to ensure that these linkages do not become a channel for exploitation of the unorganized and scattered small producers. C2. Product Development/Test Marketing. The objective of this sub-component is to invest in some well-defined research studies to explore new opportunities in processing and value addition initiatives. This sub-component will finance the piloting of new micro enterprises and research in areas relating to post-harvest methodologies and nontimber forest produce and the development of new economic activities with value added products for livelihood improvement. The project's interventions include measures to reduce the risks and production costs for CBO members, improve their productivity, timely access to quality inputs, better prices for outputs, marketing tie-ups etc. Financial institutes would be encouraged to come up with special pro-poor rural credit packages with in-built insurance. Rural people need small shops set up by them with products tailored to their needs. The project would support large retail chains to train women in logistics and back and front-end operations. C3. Information Technology Linkages. The objective of this sub-component is to secure communities' access to emerging technologies to expand livelihoods options for the poor. It will finance activities leading to communities' access to Information and Communication Technologies among others. Component D: Project Management: The main objective of this component is to take care of the overall co-ordination and management of the project at national and divisional levels. 8

9 3.0 Preliminary Environmental Assessment of Activities that may be included in Village Development Plans Considering the activities to be supported under the Project, as identified in Section 2, it appears that environmental issues will arise largely under Components A and C. Under Component A, sub-components of Community and Social Infrastructure Activities and Services; Income Generating Activities; and Inter-Village Roads most likely will result in sub-projects with adverse environmental impacts. The Product Development and Marketing sub-component under Component C may comprise activities with environmental impacts. Based on a survey conducted in selected villages in all 5 districts eligible to participate in the project, six areas of likely activities were identified by the respondents. The activities were: (i) improvements in basic infrastructure in relation to services, such as connectivity through rural roads, community markets or economic centers and community halls in rural villages; (ii) improvements in basic infrastructure to ensure water availability by construction or renovation of small irrigation tanks and minor irrigations systems, rural water supply and sanitation systems; (iii) improvements in the efficiency of agricultural production with activities such as crop diversification, animal husbandry and dairy development; (iv) exploring more effective ways of income generation while utilizing existing land resources such social or community forestry and small scale aquaculture; (v) improving markets for their agricultural produce and other products which includes the construction of rehabilitation of rural roads, access to timely market information and access to new markets; and (vi) possibility of changing the existing land uses to maximize incomes such as use of poor agricultural land for low technology cottage industries. The environment and ecology in Moneragala, Hambantota and Badulla Districts are considered good elephant habitat. In its role as a megaherbivore, elephants range over a large area with home ranges. Studies conducted in Sri Lanka, have shown that the home range for a female elephant is in the range of square kilometers while the home range for a male elephant is approximately square kilometers. Of the 11,500 sq. km that comprise the Moneragala, Hambantota and Badulla districts, studies have shown that elephants were found in 7923 sq. km, which comprises approximately 69% of the total area in the three districts. Of the area with the presence of elephants, 31% or 3600 sq.km are designated protected areas. Another 5367 sq. km or 47% of the land area comprises mixed land uses which are not clearly definable as elephant or human and contains small extents of permanent cultivation, sparse human settlements, chena lands and uncultivated scrub jungle. The balance 2533 sq. km or 22% comprise exclusive human habitat with landuses such as high density human settlements, contiguous permanent cultivation and well developed areas. Therefore, in the area of elephant presence, the dominant landuse was mixed landuse where human and elephant use of the environment overlap. The result being conflicts between human and elephants, particularly in this area. Considering this, it is impossible to assume that the Project activities will not be affected by the human elephant conflict (HEC), if no preventive measures are taken. 9

10 . Mitigatory methods that can be undertaken by local communities on HEC * Communal crop protection * Employment of 'psychological' barriers * Chasing of crop raiding elephants * Use of crops that elephants do not utilize The surveys conducted during preparation of the project, indicate that probable subprojects that may be proposed by communities for funding under the Community Development and Livelihood Improvement Project would most likely be the following: * Drinking water supply projects for rural communities * Minor irrigation rehabilitation of canals and tanks * Inter-village or rural roads * Construction of community markets and community halls * Construction of small tanks and minor irrigation systems * Sanitation facilities * Cultivation of cash crops under special irrigation methods such drip irrigation * Animal husbandry and dairy development * Small scale aquaculture * Agro processing and value addition products * Community forestry * Cottage industries * Activities undertaken to prevent or reduce crop raiding by elephants and HEC As seen from the list above, the project will support small sub-projects or investments at the village level. Because of the relatively small size of the investments, most investments are not expected to have a significant impact on the environment. In the unlikely event that any potential adverse impacts are identified, its is expected that it could be readily managed with proper planning and oversight. As specific project investments will be determined through a village planning process on a rolling basis after the commencement of the project, as simple management system will be established to enable effective screening of the evolving plans for environmental conformity. The intention of this management system is to (i) prevent the execution of a sub-project that might cause significant and irreversible environmental impacts; (ii) integrate identified environmental mitigation measures through modifications to sub-project design, location or execution; (iii)prevent or mitigate cumulative impacts of small scale investments; (iv) enhance positive environmental impacts of the sub-projects; and (v) prevent additional stress on environmentally sensitive areas. Checklists for conducting rapid environmental assessments of the types of community based sub-projects that may be included in Village Development Plans (VDP) have been developed and are attached (Annex 3). 10

11 Typical environmental impacts that may arise as a result of the types of sub-projects identified above as well recommended mitigation measures are listed in Annex 4. As identified above, a negative list of projects have been identified (Annex 2). This list includes the following: (i) Projects or activities listed under Part I of the "Prescribed Projects List" and; (ii) Projects or activities listed under Part II of the "Prescribed Projects List". Any sub-project or activity that falls within designated "environmentally sensitive areas" as defined in Part III of the "Prescribed Projects List" will be required to obtain environmental clearance from the Central Environmental Authority (CEA) and the World Bank prior to being eligible for funds from under the Project. In order to obtain CEA clearance, an EIA needs to be conducted and reviewed by the CEA. For obtaining World Bank clearance, the EIA has to conform to the Bank's OP/BP 4.01 Environmental Assessment Safeguard Policy, including its public disclosure requirements. The "Prescribed Projects List" is contained in Gazette (Extraordinary) 772/ (Annex 1). A "generic" Pest Management Plan has been developed for the Project, which will be used as a guide to address issues related to pest management under Village Development Plans. The detailed plan is in the EA document, while a summary is contained in Annex 5. A Village Dam Safety Plan has been developed for the Project which will be used as a guide to address issues related to dam safety. The detailed plan in the EA document. Based on the sub-projects, if relevant, a specific dam safety plan will be prepared and included in the Village Development Plans. 4.0 Government of Sri Lanka Environmental Regulations and Procedures In 1981 GOSL passed the National Environmental Act (NEA) and in 1982, created the Central Environmental Authority (CEA) as a regulatory and enforcement agency. The CEA's statutory and enforcement powers were strengthened significantly in 1988, by an amendment to the NEA. A cabinet level ministry to handle the subject of environment was created in 1990, with the appointment of a Minister of Environment to ensure that environmental issues will be given the required attention. GOSL also developed the Environmental Protection License (EPL) Scheme, with the CEA as the enforcing agency, as a regulatory instrument to set industrial pollution standards and control their discharges. Under provisions of Part IV C of the NEA No. 47 of 1980 as stipulated in Gazette (Extra Ordinary) No. 772/22 dated June 24, 1993 GOSL made Environmental Assessment (EA) a legal requirement for a range of development projects. The list of projects requiring an EA are prescribed in the above Gazette notification. In addition, the Gazette notification includes a list of line ministries and agencies that are designated as Project Approving 11

12 Agencies (PAA). With the change of government in August 1994, and the resulting reallocation of Ministries, a new list of PAAs were specified under subject area rather than with the name of the Ministry, as listed originally in Gazette (Extra Ordinary) No. 859/14 dated February 13, The prescribed projects list is composed of 3 parts. Part I has a list of activities that have been identified based on its potential to create adverse environmental impacts as a result of its magnitude. Some examples relevant to this project are: (a) All river basin development and irrigation projects excluding minor irrigation works; (b) Reclamation of land or wetlands exceeding 4 ha; (c) All ground water extraction projects of capacity exceeding 0.5 million cubic meters per day; etc. No sub-projects that fall within this category, will be eligible for funding under this Project. Part II comprises a list of industrial activities that require EA clearance regardless of magnitude or location. Examples are (i) Iron and steel; (ii) Non ferrous basic metal; (iii) Tanneries and leather finishing, etc. Once again, no activity that falls into this category, will be eligible for funding under the Project. Part III identifies a list of environmentally sensitive areas that require EA clearance regardless to the magnitude of the activity. Examples are (i) Within 100 meters form the boundaries of or within any area declared as a sanctuary under the Fauna and Flora Protection Ordinance; (ii) 60 meters from the bank of a public stream as defined in the Crown Lands Ordinance (Chapter 454) and having a width of more than 25 meters at any point in its course; (iii) Any archeological reserve, ancient or protected monument as defined or declared under the Antiquities Ordinance (Chapter 188), etc. While the likelihood is small, there is a possibility that some sub-project activities may fall under this category. Any sub-project activity to be funded under this project that falls within Part III of the list of prescribed projects will be subject to an Environmental Impact Assessment (EIA). According to GOSL procedure, all prescribed development activities listed in Gazette (Extraordinary Ordinary) No. 772/22 dated June 24, 1993 require environmental clearance. In order to obtain such clearance, the project proponent has to fill in a Basic Environmental Information Questionnaire. The questionnaire requires information from the project proponent to enable the CEA to determine the level of environmental analysis required prior to providing approval for the project. Upon reviewing the questionnaire, the CEA determines whether the project requires an Initial Environmental Examination (IEE), or an Environmental Impact Assessment (EIA). No. 772/22 dated June 24, The EIA Procedure In the event that an EIA is required, the PAA in consultation with CEA, is responsible for subjecting the preliminary information to environmental scoping, in order to set the Terms of Reference (TOR) for the EIA. The TOR is prepared by a Technical Committee (TC) comprising experts in the relevant field, appointed by the PAA. In developing the TOR, the regulations provide for the PAA to consider the views of state agencies and the public. 12

13 Upon submission of the EIA by the proponent, the PAA is required to determine whether issues referred to in the TOR have been addressed and notify the proponent of any inadequacies within 14 days. In the event any inadequacies are identified, the proponent is required to make necessary amendments and resubmit the report. Once accepted, in addition to the EIA being forwarded to the CEA by the PAA, notice is also placed in the Government Gazette and in a national newspaper published daily in Sinhala, Tamil and English languages inviting the public to make written comments, if any, to the PAA within 30 days. The notification would specify the times and places at which the EIA would be available to the public. As a minimum the report would be available at the CEA, PAA and in a GOSL agency in the locality of the proposed project (Generally in the Divisional Secretariat of the proposed project location). The environmental regulations have provisions for public hearings on the project although it is not mandatory. The PAA is required to forward all comments, either written or raised during any public hearing, to the project proponent for review and response within 6 days of completion of the public comment period. The proponent is required to respond to all such comments in writing to the PAA. The TC appointed by the PAA would then evaluate the EIA and require the project proponent to respond to any queries raised by the TC. The TC would also evaluate the adequacy of the proponent's response to any comments raised during the public comments period. Upon completion of the evaluation of the TC, the PAA with the concurrence of the CEA, would grant approval for the implementation of the proposed project subject to specified conditions or refuse approval for implementation of the project, with reasons for doing so. The notification must be made within 30 days of the receipt of responses from the proponent. The PAA is required to specify a period within which a the approved project should be completed. In the event the proponent is unable to complete the project within the specified period, written permission for an extension has to be obtained from the PAA, 30 days prior to the expiration date. The PAA is responsible for forwarding a report which contains a plan for monitoring the implementation of the approved project, to the CEA, within 30 days from granting approval. It is also the responsibility of the PAA to publish in the Government Gazette and in one national newspaper published in Sinhala, Tamil and English languages, granting approval for the project. It is mandatory that the project proponent inform the PAA of any alterations to the project as approved and/or the abandonment of the project. The PAA shall, where necessary, obtain fresh approval in respect of any such alterations that are intended to be made to the approved project. The PAA in consultations with the CEA, would also determine the scope and the format of the supplemental report required to be submitted for such alterations. 4.2 The IEE Procedure Upon review of the preliminary information provided by the proponent, if the PAA determines that the project would have no long term adverse environmental impacts, an Initial Environmental Examination (IEE) would be considered adequate. Under such circumstances, the proponent will be required to submit a detailed IEE for review and 13

14 approval by the PAA. The IEE will identify potential environmental and social issues and the complexity of possible remedial actions. Upon reviewing the IEE, if the TC identifies any substantial environmental issues that may arise as a result of the proposed project, the proponent will be required to undertake a detailed EIA. In the event the IEE is considered adequate, then the project proponent is requested to prepare an Environmental Management Plan (EMP), to address any potential environmental and social issues as well as incorporate the PAA/CEA's approval conditions. The IEE review process is similar to the EIA review process, except for the level of detail and analysis involved, which is proportionate to the anticipated environmental and social impacts. The CEA has developed an IEE questionnaire for development activities, which is designed to capture environmental issues specific to proposed project. This answers on this questionnaire is used by the CEA/PAA to determine whether the potential project results in long term irreversible or complex environmental and social issues and if so, it warrants an EIA. If no EIA is required, the proponent is required to prepare an EMP which contains remedial measures to address adverse environmental and social issues. 4.3 Environmental Assessment and Management Review of Community-Based Development Sub-Projects that may be Funded under the Community Development and Livelihood Improvement Project All sub-projects that will be identified by communities participating in the above Project, will be included in the respective Village Development Plans. All sub-projects will be screened for environmental impacts based on checklists contained in Annex 3. Mitigation actions listed in Annex 4 will be used to integrate the mitigation measures into the sub-project design and thereafter will be included in each Village Development Plan (VDP). The VDP will contain specific environmental monitoring indicators to assess the impacts of the specific sub-projects included in the VDPs. 5 Environmental Review Any activities proposed for funding under the Project that fall under Part III of the "Prescribed Projects List" of the Gazette (Extraordinary) 772/ will require a mandatory EIA undertaken in accordance with CEA's requirements. In addition it has to satisfy the World Bank's OP/BP 4.01 on Environmental Assessment. Activities that fall under this category require prior CEA and World Bank approval prior to being considered for eligibility for funding under the Project. Sri Lanka has a history of 10 years of EIA The CEA has been taking the lead in EIA review and has developed a good track record of effective EIA evaluation. The CEA has the in-house technical capacity to undertake this task successfully. However, it must be noted that it is most unlikely that any sub-projects will fall within this requirement. All other subprojects will be subjected to the environmental checklist to identify potential environmental impacts and mitigation measures identified in Annex 4 will be used to integrate environmental concerns into the sub-project design. The service providers will be assisting the village communities in addressing environmental issues in the subprojects that will be included in Village Development Plans. Based on the guidance 14

15 provided in the EAMF, it should be possible for communities and service providers to effectively assess and mitigate environmental impacts of the sub-projects in the Village Development Plans. The Village Development Plans will be evaluated for funding eligibility by Provincial Appraisal Committee, which will have technical expertise to appraise the technical, financial and environmental soundness of the plan. The technical experts will be retained by the Project Management Unit and will be responsible with the other members of the Provincial Appraisal Committee for the quality of the plan and its eligibility for funding under the Project. The CEA has a Divisional Environmental Officer stationed all Divisional Secretariats in the country and will assist in reviewing the environmental aspects of the Village Development Plans as well. An Environmental Monitoring Plan with monitoring indicators - output and outcome - indicators will be developed for each Village Development Plan. Monitoring indicators should be identified at the Village Development Plan appraisal stage and be included as a condition for fund disbursement. The environmental staff of the PMU will be responsible for ensuring that the monitoring plan ins being adhered to by the village communities. 15

16 ANNEX 1 LIST OF THE PROJECTS FALLING UNDER 'PRESCRIBED PROJECTS' BY THE CENTRAL ENVIRONMENTAL AUTHORITY. PRESCRIBED PROJECTS: PART I 1. All river basin development and irrigation projects excluding minor irrigation works (as defined by the Irrigation Ordinance Chapter 453) 2. Reclamation of land, wetland are exceeding 4 hectares 3. Extraction of timber covering land area exceeding 5 hectares 4. Conversion of forests covering an area exceeding 1 hectare into non forest use 5. Clearing of land areas exceeding 50 hectares 6. Mining and Mineral Extraction a. Inland deep mining and mineral extraction involving a depth exceeding 25 meters b. Inland surface mining of cumulative areas exceeding 10 hectares c. All off shore mining and mineral extractions d. Mechanised mining and quarrying of aggregate, marble, limestone, silica, quartz and decorative stone with 1 kilometer of any residential or commercial areas 7. Transportation Systems a. Construction of national and provincial highways involving a length exceeding 10 kilometers b. Construction of railway lines c. Construction of airports d. Construction of airstrips e. Expansion of airports or airstrips that increase capacity by 50% or more 8. Port and harbor development a. Construction of ports b. Construction of harbors c. Port expansion involving an annual increase of 50% or more in handling capacity per annum 9. Power generation and transmission a. Construction of hydroelectric power stations exceeding 50 Megawatts b. Construction of thermal power plants having generation capacity exceeding 25 Megawatts at a single location or capacity addition exceeding 25 Megawatts to existing plants c. Construction of nuclear power plants d. All renewable energy based electricity generating stations exceeding 50 Megawatts 16

17 ANNEX Transmission lines a. Installation of overhead transmission lines of length exceeding 10 kilometers and voltage above 30 kilovolts 11. Housing and Building a. Integrated multi development activities consisting of housing, industry, commercial infrastructure covering a land area exceeding 10 ha. 12. Resettlement a. Involuntary resettlement exceeding 100 families other than resettlement effected under emergency situations 13. Water supply a. All ground water extraction projects of capacity exceeding l/2 million cubic meters per day b. Construction of water treatment plants of capacity exceeding l2 million cubic meters 14. Pipelines a. Laying of gas and liquid (excluding water) transfer pipelines of length exceeding 1 kilometer 15. Hotels a. Construction of hotels or holiday resorts or projects which provide recreational facilities exceeding 99 rooms or 40 hectares as the case may be. 16. Fisheries a. Aquaculture development projects or extent exceeding 4 hectares b. Construction of fisheries harbors c. Fisheries harbor expansion projects involving an increase of 50% or more in fish handling capacity per annum 17. All tunneling projects 18. Disposal of waste a. Construction of any solid waste disposal facility having a capacity exceeding 100 tons per day b. Construction of waste treatment plants treating toxic or hazardous waste 19. Development of all industrial estates and parks exceeding an area of 10 hectares 20. Iron and Steel Industries a. Manufacture of iron and steel products of production capacity exceeding 100 tons per day using iron ore as raw material b. Manufacture of iron and steel products of production capacity exceeding 100 tons per day using scrap iron as raw material 21. Non Ferrous Basic Metal Industries a. Smelling of aluminium or copper or lead of production capacity exceeding 25 tons per day 22. Basic Industrial Chemicals a. Formulation of toxic chemicals or production capacity exceeding 50 tons per day b. Manufacture of toxic chemicals of production capacity exceeding 25 tons per day 23. Pesticides and Fertilizers 17

18 ANNEX 1 a. Formulation of pesticides of combined production capacity exceeding 50 tons per day b. Manufacture of pesticides of combined production capacity exceeding 25 tons per day c. 24. Petroleum and Petrochemical a. Petroleum refineries producing gasoline, fuel oils, illuminating oils, lubricating oils and grease, aviation and marine fuel and liquefied petroleum gas from crude petroleum b. Manufacture of petro-chemicals of combined production capacity exceeding 100 tons per day from raw materials obtained from production processes of oil refinery or natural gas separation. 25. Tyre and tube industries a. Manufacture of tyre and tubes of combined production capacity exceeding 100 tons per day from natural or synthetic rubber 26. Sugar Factories a. Manufacture of refined sugar of combined production capacity exceeding 50 tons per day 27. Cement and Lime a. Manufacture of cement b. Manufacture of lime employing kiln capacity exceeding 50 tons per day 28. Paper and Pulp a. Manufacture of paper or pulp of combined production capacity exceeding 50 tons per day 29. Spinning, weaving and finishing of textiles a. Integrated cotton or synthetic textile mills employing spinning, weaving, dyeing and printing operations together of combined production capacity exceeding 50 tones per day 30. Tanneries and leather finishing a. Chrome tanneries of combined production capacity exceeding 25 tones per day b. Vegetable (bark) of combined production capacity exceeding 50 tones per day 31. Industries which involve the manufacture storage or use of radio active materials as defined in the Atomic Energy Authority Act NO. 19 of 1969 or Explosives as defined in the Explosives Act No. 21 of 1956 excluding for National Security reasons. 18

19 ANNEX 1 PART II (32) All projects and undertakings listed in Part I irrespective of their magnitudes and irrespective of whether they are located in the coastal zone or not, if located wholly or partly within the areas specified in Part III. (32 (a) Construction of all commercial buildings as defined by the Urban Development Authority law No. 41 of 1978 and the construction of dwelling housing units, irrespective of their magnitudes and irrespective of whether they are located in the coastal zone or not, if located wholly or partly within the areas specified in Part III The following industries if located wholly or partly within the areas specified in Part III * Iron and steel * Non-ferrous basic metal * Basic industrial chemicals * Pesticides and fertilizer * Synthetic resins, plastic materials and man-made fibres * Other chemical products * Petroleum and petro-chemical products * Tyres and tubes * Manufacturing and refining of sugar * Alcoholic spirits * Malt liquids and malt * Cement, clinker and lime * Non metallic mineral products * Paper, pulp and paperboard * Spinning, weaving and fining of textiles * Tanneries and leather finishing * Shipbuilding and repairs * Railroad equipment * Motor vehicles * Air craft 19

20 ANNEX 1 PART III 1. Within 100 m from the boundaries of or within any area declared under a. National Heritage Wilderness Act No. 3 of 1988 b. The Forest Ordinance (Chapter 451) c. Coast Conservation Act No. 57 of Within the following areas whether or not thee areas are wholly or partly within the costal zone a. Any erodable areas declared under the Soil Conservation Act (Chapter 450) b. Any Flood Area declared under the Flood Protection Ordinance (Chapter 449) and any flood protection area declared under the Sri Lanka Land Reclamation and Development Corporation Act 15 of 1968 as amended by Act No. 52 of c. 60 meters from the bank of a public stream as defined in the Crown Lands Ordinance (Chapter 454) and having a width or more than 25 meters at any point of its course d. Any reservation beyond the full supply level of a reservoir e. Any archeological reserve, ancient or protected monument as defined or declared under the Antiquities Ordinance (Chapter 188) f. Any are declared under the Botanic Gardens Ordinance (Chapter 446) g. Within 100 meters from the boundaries of or within any area declared as a Sanctuary under the Fauna and Flora Protection Ordinance (Chapter 469) h. Within 100 meters from the high flood level contour of or within a public lake as defined in the Crown Lands Ordinance (Chapter 454) including those declared under section 71 of the said Ordinance 20

21 ANNEX 2 NEGATIVE LIST - PROJECTS NOT ELIGIBLE FOR FUNDING (PARTS I AND II OF THE PRESCRIBED LIST OF THE CEA). PART I 1. All river basin development and irrigation projects excluding minor irrigation works (as defined by the Irrigation Ordinance Chapter 453) 2. Reclamation of land, wetland are exceeding 4 hectares 3. Extraction of timber covering land area exceeding 5 hectares 4. Conversion of forests covering an area exceeding 1 hectare into non forest use 5. Clearing of land areas exceeding 50 hectares 6. Mining and Mineral Extraction a. Inland deep mining and mineral extraction involving a depth exceeding 25 meters b. Inland surface mining of cumulative areas exceeding 10 hectares c. All off shore mining and mineral extractions d. Mechanised mining and quarrying of aggregate, marble, limestone, silica, quartz and decorative stone with 1 kilometer of any residential or commercial areas 7. Transportation Systems a. Construction of national and provincial highways involving a length exceeding 10 kilometers b. Construction of railway lines c. Construction of airports d. Construction of airstrips e. Expansion of airports or airstrips that increase capacity by 50% or more 8. Port and harbor development a. Construction of ports b. Construction of harbors c. Port expansion involving an annual increase of 50% or more in handling capacity per annum 9. Power generation and transmission a. Construction of hydroelectric power stations exceeding 50 Megawatts b. Construction of thermal power plants having generation capacity exceeding 25 Megawatts at a single location or capacity addition exceeding 25 Megawatts to existing plants c. Construction of nuclear power plants d. All renewable energy based electricity generating stations exceeding 50 Megawatts 10. Transmission lines a. Installation of overhead transmission lines of length exceeding 10 kilometers and voltage above 30 kilovolts 11. Housing and Building 21