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Sri Lanka: Sampur - Kappalthurai Transmission Infrastructure Development Project

SUMMARY

STATUS
Proposed
MEMBER
Sri Lanka
SECTOR
Energy
E&S CATEGORY
Category B
PROJECT NUMBER
000921

FINANCING

PROPOSED FUNDING AMOUNT
USD22 million
FINANCING TYPE
Sovereign

TIMELINE

CONCEPT REVIEW
January 23, 2025
APPRAISAL REVIEW/FINAL REVIEW
July 17, 2025

OBJECTIVE

To enhance power evacuation capacity by constructing a transmission network from Sampur to Kappalthurai, enabling integration of potential renewable energy sources from northeastern Sri Lanka into the national grid.

DESCRIPTION

The Project involves building a new Grid Substation (GSS) in Sampur, a 38-kilometer (km), 220-kilovolt (kV) double-circuit transmission line from Sampur GSS to Kappalthurai GSS and extending one 220kV line bay at Kappalthurai GSS. Ceylon Electricity Board (CEB) aims to create the necessary infrastructure to transmit power from the potential future renewable energy plants, including planned Sampur Solar PV plant. The Government of Sri Lanka targets at generating 70 percent of its electricity from renewable sources by 2030. The Renewable Energy Resource Development Plan 2021-2026 indicates that Sampur, Trincomalee region has the potential for around 300 MW of solar power generation. To capitalize on this potential, the CEB, with financial backing from AIIB, plans to expand the transmission network in the region.

The following activities are planned in the Project scope:

  1. Construction of 220/33 kV GSS at Sampur and 1x220 kV transmission line bay at Kappalthurai GSS; and
  2. Construction of around 38-km 220kV double circuit transmission line (initially charged at 132kV) from Kappalthurai to Sampur.

ENVIRONMENTAL AND SOCIAL INFORMATION

Applicable Policy and Categorization. AIIB's Environmental and Social Policy (ESP), including the Environmental and Social Standards (ESSs) and the Environmental and Social Exclusion List (ESEL), applies to this Project. ESS1 (Environmental and Social Assessment and Management) and ESS2 (Land Acquisition and Involuntary Resettlement) apply, while ESS3 (Indigenous Peoples) is not applicable. The Project is classified as Category B following the Environmental and Social Framework (ESF), as there are a limited number of potentially adverse impacts that are not unprecedented or irreversible and can be managed through operational best practice.

Environmental and Social Instruments. The client has prepared a national-compliant Initial Environmental Examination (IEE) which had been conducted in 2023. In addition, an Environmental and Social Impact Assessment (ESIA) report has been prepared based on requirements provided by the Bank, including an Environmental and Social Management Plan (ESMP). These instruments include measures that ensure management of the environmental and social (ES) risks and impacts of the Project, consistent with the AIIB’s ESP and ESSs.

Environmental Aspects. The ESIA has assessed and identified the possible implications of the Project. During construction stage, the potential environmental risks and impacts that are anticipated are temporary and include: i) surface and groundwater pollution, ii) air emission, including accumulation of fugitive dusts and exhaust fumes, iii) noise and vibration, iv) accumulation of waste, e.g., dredged soil, v) topsoil erosion, vi) loss of flora species and vii) disturbance to mammals and avian species. Impacts during operation include possible collision with avifauna species and disturbance to mammals e.g., Asian Elephants, among others. With this, the Project proposed conducting an avifaunal survey during the migratory season, where the necessity for additional measures will be identified based on the results. Moreover, the ESIA provided an ESMP that addresses the risks and impacts relating to the above through a physical, ecological and critical habitat assessment.

Social Aspects. The total length of the proposed transmission line from Kappalthurai GSS to Sampur GSS is approx. 38 Km. The standard width of the right-of-way (RoW) of the transmission line is 35 meters i.e., 17.5 m to either side from the center of the transmission conductor. The total land area under the RoW will be 325.2 acres (131.6 hectares). CEB requires the rights to the easement (as the RoW) of the transmission line but will not acquire this land for the RoW. CEB will allow the landowners to use the land for the same purpose for which they have been using the land, subject to certain conditions. For example, planting of trees that grow over 5 m in height will not be allowed, and the construction of any structures within the RoW requires prior approval from CEB. CEB has already obtained the wayleave clearance from the landowners, and hence no acquisition is required. Standing trees to be removed to clear the RoW for the installation of transmission towers and the conductors, and the land area required for the installation of transmission towers will be compensated by CEB to their respective owners. Damage to any crops during construction work of the Project will also be compensated by CEB to their respective farmers. CEB, as part of its corporate social responsibility, will also support a replanting program as part of restoration and rehabilitation assistance.

Associated Facility. The proposed Sampur Solar Power Park is identified as the primary associated facility to the transmission line. The power plant, proposed to be financed and implemented under a separate project under AIIB financing, is entirely dependent on the 220 kV transmission line for evacuating the generated electricity to the national grid. Only a due diligence analysis was conducted for the solar park as an associated facility, and no in-depth ES assessment was conducted under the present ESIA/ESMP. Potential ES risks associated with the solar park—such as vegetation clearance, land use change, dust and noise during construction, potential impacts on local biodiversity, and minor livelihood disturbances—will be considered as part of a standalone ESIA being planned for the Sampur Solar Park, which can also include an assessment of the cumulative impacts of other planned solar farms. While the solar park does not involve physical displacement, proper attention must be paid to temporary access restrictions and impacts on ecosystem services. The integration of this associated facility within the ESIA framework ensures that both the generation and evacuation components of both these projects are planned, assessed, and managed holistically, thereby promoting environmental sustainability, social accountability, and operational efficiency throughout the project lifecycle.

Occupational Health and Safety, Labor and Employment Conditions. The key occupational health and safety (OHS) risks of the Project include working with electricity/contact with the transmission lines, lightning risk, manual handling injuries, working at heights and working in proximity to road traffic/vehicular accidents. Workers are therefore required to have OHS training and adequate personal protective equipment to manage and prevent risks. The ESMP, along with the Hazardous Identification and Risk Assessment attached to the ESIA, identifies the key risks and measures, where CEB commits to ensure strict guidance on following the proposed measures. Based on this, the Project proposed to establish OHS plan in line with Sri Lanka’s Factory Ordinance and the World Bank Group Environmental, Health, and Safety Guidelines, following Good International Industry Practice. Overall, the ESMP has elaborated further providing measures to avoid and mitigate risks such as OHS, traffic, child abuse and gender-based violence/ sexual exploitation / sexual harassment, and risks in labor and working conditions.

Stakeholder Engagement, Consultation, and Information Disclosure. During the ESIA conducted for the Project, information related to tentative directions of the transmission line route of the Project, sites earmarked for the GSSs, land requirements, potential impacts of the Project, both positive and negative, and direct and indirect, entitlement policies and frameworks for compensation for the affected parties and grievance redress procedures were shared with affected persons during consultations. CEB has prepared a Stakeholder Consultation and Information Disclosure Plan and will continue their communications with the affected persons and other stakeholders and disclose information such as the valuation procedures, Project related impacts, specific entitlements of the affected persons, compensation procedures, grievance redress procedures and dates of the commencement of civil works. Moreover, the ESIA report has been disclosed in the official websites of the CEB[1] and AIIB[2] with summaries translated into Sinhala and Tamil languages.

Project Grievance Redress Mechanism (GRM). The Project will establish a project-based GRM which is easily accessible to the aggrieved parties, transparent and accountable in grievance handling and responding while winning the confidence of the complainants. The GRM will consist of two tiers. The first tier will be at the Project’s site level, while the second tier at the Project Management Unit (PMU)-level. The PMU of CEB will establish a clear set of procedures with specific time frames for grievance resolution at each level, including procedures for receiving and recording grievances, screening and referrals, assessment of grievances, grievance resolution, reporting and monitoring. Apart from the above described two levels of GRM, contractors will also establish a GRM at site level (Workers’ GRM) which will exclusively address the issues and grievances of the labor teams. Further, brochures and leaflets printed in Sinhala and Tamil languages covering the above information will also be distributed.

Monitoring and Reporting Arrangement. The PMU will be fully responsible for monitoring the Project's implementation and is expected to prepare progress reports semi-annually based on agreed format highlighting the progress on the implementation of ES plans. During implementation of the Project, the Bank will conduct regular supervision missions to monitor progress. The Bank will also have virtual and in-person interactions with CEB and may engage the Bank's local consultants in more frequent supervision, as required.

PROJECT TEAM LEADER

Asian Infrastructure Investment Bank

Raqib Ahmed Chowdhury

Investment Officer

raqib.chowdhury@aiib.org

BORROWER

Democratic Socialist Republic of Sri Lanka

Hemantha Pubudusiri

Director, Department of External Resources

hemantha@erd.gov.lk

IMPLEMENTING ENTITY

Ceylon Electricity Board

Ravindra Dias

Project Director

ravi_dias@yahoo.com

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