The World Bank RESTRUCTURING ISDS Climate Resilience Multi-Phase Programmatic Approach (P160005) Integrated Safeguards Data Sheet Restructuring Stage Restructuring Stage | Date ISDS Prepared/Updated: 21-Oct-2020| Report No: ISDSR30734 Regional Vice President: Hartwig Schafer Country Director: Faris H. Hadad-Zervos Regional Director: John A. Roome Practice Manager/Manager: Abhas Kumar Jha Task Team Leader(s): Asmita Tiwari, Thalyta Ernandya Yuwono The World Bank RESTRUCTURING ISDS Climate Resilience Multi-Phase Programmatic Approach (P160005) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. . I. BASIC INFORMATION 1. BASIC PROJECT DATA Project ID Project Name P160005 Climate Resilience Multi-Phase Programmatic Approach Task Team Leader(s) Country Asmita Tiwari, Thalyta Ernandya Yuwono Sri Lanka Approval Date Environmental Category 25-Jun-2019 Full Assessment (A) Managing Unit SSACD PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 317.00 Total Financing 317.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Bank for Reconstruction and Development (IBRD) 310.00 Non-World Bank Group Financing Counterpart Funding 7.00 Borrower/Recipient 7.00 2. PROJECT INFORMATION The World Bank RESTRUCTURING ISDS Climate Resilience Multi-Phase Programmatic Approach (P160005) PROG_INF O Current Program Development Objective The Project Development Objective of the first phase is to enhance the capacity of the Government to deliver improved weather and climate forecasting and early warning; and to reduce flood risks in the lower Kelani basin (between Hanwella and Kaduwela). Proposed New PDO To improve: (i) warnings of high impact weather and hydrological hazards; and (ii) Kelani Basin multi-purpose water infrastructure for climate resilience. . Note to Task Teams: End of system generated content, document is editable from here. 3. PROJECT DESCRIPTION Context On the Government of Sri Lanka’s request, the overall scope and budget of the CRes MPA Program and Phase I Project is being revised. The CRes MPA Program and Phase I Project budgets have been downscaled from US$781 million (IBRD US$774) to US$434 million (IBRD US$403 million), and from US$317 (IBRD US$310 million) to US$ 93 million (IBRD US$92 million) respectively with the following key changes: (i) prioritize multi-purpose water reservoirs, (ii) cancel construction of flood embankments and pumping stations in Phase 1 while continuing with their detailed engineering designs, and (iii) terminate the land acquisition process initiated by the government for the construction of embankments. These key changes were discussed during a restructuring mission conducted (virtually) in November 2020 following a formal request (dated October 20, 2020) from the Government. On May 10, 2021, the Cabinet of Ministers endorsed the revised and scaled down scope of the CRes MPA. The restructured CRes MPA will continue to consist of three distinct, inter-related and overlapping phases, but with revised scope, estimated costs, and time horizons. In summary, the following investments planned under the original three phases of CRes MPA will be dropped: a) construction of flood embankments and pumping stations between Hanwella and Kaduwela of the Lower Kelani River Basin (under original Phase I, Component 2): b) land acquisition, resettlement assistance and safeguards implementation for flood protection infrastructure in the Lower Kelani River Basin (original Phase I, Component 3); c) construction of flood embankments and pumping stations in the remaining part of the lower Kelani basin between Kaduwela and river mouth (under original Phase II); and d) construction of physical flood protection infrastructure in the downstream of Mundeni Aru basin (under original Phase III). While the construction of flood embankments and pumping stations will be dropped from revised CRes MPA, detailed engineering design for these will be retained in Phase I Project. The scope of Phase I Project will be scaled down, with the following key revisions: The construction of flood embankments and pumping stations from Hanwella to Kaduwela and the implementation of the related RAP will be dropped from the original Phase I. Accordingly, the title of the Phase I project will be revised from “ Flood Early Warning and Lower Kelani Flood Risk Mitigation Project� to “Flood Early Warning and Kelani Climate Resilience Project� to better reflect the activities to be financed and expected development outcomes. The PDO will be changed as “to improve: (i) warnings of high impact weather and hydrological hazards; and (ii) Kelani Basin multi-purpose water infrastructure for The World Bank RESTRUCTURING ISDS Climate Resilience Multi-Phase Programmatic Approach (P160005) climate resilience.� The activities to be financed, and consequently the total Phase I Project budget, will be scaled down from US$ 317 million to US$ 93 million. The expected project closing date will be extended to 31 December 2026 to compensate for the extended delay in project signing. Revised Phase I Project Components Component 1: Forecasting and Early Warning of High Impact Weather, Floods, and Landslides (US$50 million). This component including the originally planned activities, estimated cost, and the IBRD financing allocation will remain unchanged. It will include enhancing the capability and the performance of DMC, DoM, ID and NBRO to upgrade and expand the hydrological and meteorological observation networks to ensure that these networks are well-functioning and interoperable, and provide people with weather information to protect lives, livelihoods and property from the impact of meteorological and hydrological events, through inter alia, (a) strengthening the institutional arrangements and providing capacity building and training activities to DMC, DoM, ID and NBRO; (b) supporting the modernization of observing, forecasting and communication systems infrastructure, including the procurement and installation of monitoring equipment, information and communications technology equipment as well as the construction and refurbishment of operational centers and buildings; and (c) enhancing the service delivery systems, including the development of a National Framework for Climate Services which will help coordinate climate information among all sectors and governmental institutions. The scope of the planned multi-hazard impact-based early warning system will be updated to include (i) improved monitoring for future pandemic threats and to provide a decision support system to help take early actions to minimize impacts; and (ii) marine hazard impact warnings including storm surges and coastal inundation. Component 2: Construction of Ambatale Salinity Barrier and Preparatory Studies (US$39 million ). The original title of the Component 2 is revised to read as above. The originally planned activities and total estimated component cost will be reduced from US$194.25 million to US$39 million. The revised activities to be financed under Component 2 are as follows: o Sub Component 2.1: Construction of Ambatale Salinity Barrier (US$ 20 million): Replace the existing salinity barrier and carry out social and environmental impact assessments and preparation of requisite safeguards instrument. o Sub Component 2.2: Preparation of detailed engineering designs (US$ 6 million) for construction of Wee Oya reservoir in next phases of the MPA, including carrying out of related social and environmental assessments and preparation of requisite Safeguard Instrument; o Sub Component 2.3: Preparatory Studies for Phase III (US$ 7 million): Feasibility studies and detailed designs for Upper Deraniyagala Reservoir, RAP and EIA, bidding documents o Sub Component 2.4: Other Studies (US$1 million): will include (i) pre-feasibility technical and socio-economic, environmental studies for trans-basin diversions from Kelani river; and (ii) assessments and consultations with key stakeholders to identify next steps for improving local storm water management, flood plains or flood risk zone management in Lower Kelani Basin. o Sub Component 2.5: Detailed Designs of Lower Kelani Flood Protection Works (US$5 million): will include (i) detailed engineering designs for flood embankments and pumping stations; and (ii) environmental and social assessments including a Resettlement Action Plan. An emergency preparedness and action plan will be prepared to ensure improved flood preparedness. Component 3: Project Management (US$4 million). The total cost for this component will reduce from US$6.0 million to US$4.0 million of which US$3.0 million will be IBRD financing and US$1.0 million will be parallel counterpart financing. The Project Management costs will include: (i) implementation support, including training, in the areas of project management, monitoring and evaluation, procurement, fiduciary management, and environmental and social safeguards; (ii) monitoring compliance with environmental and social safeguards; (iii) establishment of grievance redress mechanisms and management information system; and (iv) all other activities as required for effective project implementation. The World Bank RESTRUCTURING ISDS Climate Resilience Multi-Phase Programmatic Approach (P160005) Component 4: Contingency Emergency Response Component (US$0 million). This component will remain unchanged to provide immediate response to an Eligible Crisis or Emergency, as needed. Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. . 4. PROJECT LOCATION AND SALIENT PHYSICAL CHARACTERISTICS RELEVANT TO THE SAFEGUARD ANALYSIS (IF KNOWN) The Kelani River Basin encompasses the Kelani River which is a 145-kilometre-long (90 mi) river in Sri Lanka. Ranking as the fourth-longest river in the country, its basin stretches from the Sri Pada Mountain Range to Colombo, and flows through or borders the districts of Nuwara Eliya, Ratnapura, Kegalle, Gampaha and Colombo, cutting across the Central, Sabaragamuwa and Western provinces. The river flows through the capital of Colombo and the main physical investments under Phase I of the MPA will focus on interventions in the lower reaches of the Kelani river in Ambatale within the Western Province. The river supports over 100 small micro-catchments and many of these streams and small tributary networks are lined by strips of riverine vegetation. The lower reaches include areas within the Colombo district which passes through Kaduwela, Sri Jayawardenapura Kotte and Kolonnawa. These areas comprise of low lying flood retention zones which are essentially marsh habitat and these lowland areas wetlands are now severely fragmented due to human habituation. Throughout the Kelani river basin, progressive expansion of human settlements, industries and the road network has resulted in the replacement of natural habitats by a anthropogenically modified environment with limited green areas remaining closer to the sea outfall from Kaduwela, in the lower catchment. The upper catchment of the basin, falls in the Sabaragamuwa Province and includes a number of of rich riverine ecosystems and micro catchments. 5. ENVIRONMENTAL AND SOCIAL SAFEGUARDS SPECIALISTS ON THE TEAM Kristine Schwebach, Social Specialist Bandita Sijapati, Social Specialist Mokshana Nerandika Wijeyeratne, Environmental Specialist SAFEGUARD_TABLE 6. SAFEGUARD POLICIES TRIGGERED Safeguard Policies Triggered Explanation The Policy remains triggered at restructuring. While the net environmental benefit of the program is expected to be positive, the project activities are Environmental Assessment (OP) (BP 4.01) Yes likely to have environmental risks in future Phases unless properly planned, assessed, and mitigated during Phase 1. The World Bank RESTRUCTURING ISDS Climate Resilience Multi-Phase Programmatic Approach (P160005) A Strategic Environmental Assessment (SEA) have been completed for the Kelani River Basin in conjunction with the Flood and Drought Mitigation Investment Plan for the Kelani Basin (FDMIP) under the CRIP. The SEA informed the flood modeling undertaken and also provided recommendations to be taken on board during detailed designs and provides guidance on the needed environmental assessments and key areas of analysis to be conducted for each of the interventions under the plan, which also includes the projects financed under the CresMPA. CIA unfortunately was not a recommendation that came from the SEA so it will be a new Bank requirement for the client. These recommendations will help guide the site-specific studies on environmental and social impacts and risk at the basin level associated with the detailed designs and physical implementation of individual investments as well as the most important environmental and natural resource-related constraints bearing on the implementation of any related structural and non-structural interventions at a broader level. The SEA has informed the preparation of a program-specific Environment Assessment and Management Framework (EAMF) for CRes MPA which outlines the processes and serve as a guideline to undertake site-specific environmental screening, preparation of environmental and social assessments (ESIAs), and/or environmental and social management plans (ESMPs), for all project investments across its Phases, as well as layout a stringent monitoring program, in line with the World Bank’s safeguard policies, World Bank Group Environmental Health and Safety Guidelines as well as National Environmental Regulations. The original EAMF was consulted and disclosed by the GoSL and by the Bank on January 9, 2019. With the restructuring, the EAMF has been updated in line with the reduced scope of the MPA program and has been updated to reflect the guidance in line with Covid-19 management as well. The World Bank RESTRUCTURING ISDS Climate Resilience Multi-Phase Programmatic Approach (P160005) Environmental and Social Impact Assessments will be completed for all interventions planned for flood mitigation infrastructure along the Kelani River and its main tributaries and are expected to guide individual project designs. Phase 1 of the MPA will mainly include key individual project designs, as well as their technical feasibility studies and environmental and social impact assessments. Physical interventions under Phase 1 only involve the construction of the Ambatale Salinity Barrier which will more environmentally beneficial due to the salinity intrusion controls and floodwater conveyance support it will bring in via design. Potential impacts will be limited to the civil works period and involve potential impacts such as dust, noise, potential sedimentation, and occupational health and safety impacts. While a draft EA is available based on the preliminary designs for this activity, it will need to be updated due to changes expected in the design of the structure. This initial ESIA will inform the detailed designing phase. Site- specific ESMPs will be part of the associated civil works contract. Performance Standards for Private Sector The IFC Performance standards are not applicable No Activities OP/BP 4.03 to this operation. The policy is triggered as many of the structures to be constructed and rehabilitated alone the two river basins are to some extent associated with natural habitats such as riverine ecosystems, tributaries, lagoons, mangrove habitats, terrestrial wetlands, etc. and may also require the conversion of such habitats this policy is triggered. Program interventions to be implemented will thus require specific measures to mitigate potential impacts to vegetation and associated fauna and flora are built Natural Habitats (OP) (BP 4.04) Yes into the EAMF. The overall project will not conduct any activities within designated or on the buffer zones of protected areas and project interventions will facilitate in mitigating the potential risks too and degradation of such ecosystems due to flooding. The EAMF includes screening for impacts on Natural Habitats and that site-specific safeguard instruments will include subproject impact assessment and mitigation measures on Natural Habitats as well. The World Bank RESTRUCTURING ISDS Climate Resilience Multi-Phase Programmatic Approach (P160005) The policy is triggered on a precautionary basis for Phase 1. In order to ensure that all technical design, feasibility, and safeguards assessments will include screening and due diligence requirements to Forests (OP) (BP 4.36) Yes identify and avoid and/or mitigate any identified impacts to forested areas. Screening criteria and assessment requirements are presented in the EAMF. The project does not include activities that would Pest Management (OP 4.09) No require pest management or lead to the increased use of pesticides, thus the policy is not triggered. The policy on Physical Cultural Resources (OP 4.11) applies given the uncertainty regarding the exact locations of activities to be carried out under the project and the presence of identified Physical cultural resources in the Kelani basin. In additional there may be the need for the relocation of cultural assets that are of interest to local communities such as cemeteries located on the edge of the Kelani River which may require relocation when the Physical Cultural Resources (OP) (BP 4.11) Yes detailed designs are finalized. The EAMF therefore includes specific provisions to assess the potential impacts on resources considered to have historical or cultural significance prior to any activities being undertaken on the ground as part of the Environmental Screening and EA process. The EAMF will also include provisions for the treatment of physical cultural resources that may be discovered during project implementation (chance finds). There are no conclusive evidence pointing to indigenous people, as defined by OP 4.10, living Indigenous Peoples (OP) (BP 4.10) No within the potential project area that would be adversely affected by project interventions. The policy on involuntary resettlement (OP 4.12) is triggered because of land acquisition and involuntary resettlement resulting from the proposed infrastructure investments under the MPA. In particular, impacts of involuntary resettlement are expected in relation to the Involuntary Resettlement (OP) (BP 4.12) Yes construction of Wee Oya Reservoir, Upper Deraniyagala Reservoir, trans-basin diversions from Kelani to dryer river basins. To manage the associated social risks and impacts, the following instruments have been prepared under the project: Strategic Social Assessment, The World Bank RESTRUCTURING ISDS Climate Resilience Multi-Phase Programmatic Approach (P160005) Resettlement Policy Framework and Social Management Framework. Together, these instruments identity the strategic social issues relevant to the entire MPA as well as provide guidelines for the identification and assessment of risks and impacts, and preparation of mitigation plans for addressing them during the implementation of the investments under the various phases of the project. The frameworks mentioned above are consistent with the requirements of the GoSL and the Bank’s Operational Policy/Bank Procedure (OP/BP) 4.12 on Involuntary Resettlement. Under the original project, the key implementing entity, Ministry of Irrigation (MI), prepared and disclosed the Resettlement Action Plan (RAP) for embankments planned under the original Phase I Project and commenced RAP implementation in June 2019 by declaring its intent to acquire affected lands in the project area under the provisions of the related legal enactments and regulations. This process, however, could not move forward due to the delay in loan signing and restructuring of CRes MPA. The process was officially terminated on May 10, 2021 following Cabinet clearance of restructuring, and notifications were sent to the affected communities by June 30, 2021. An interim GRM has been established with a social safeguards specialist designated as a focal point, and a Grievance Committee established with representatives from the Ministry of Irrigation, Divisional Secretaries, Ministry of Land, and the CRIP PMU, to address grievances that could not be resolved by the CRIP PMU focal point. While the incremental operating costs related to the implementation of these agreements will be a part of the project management costs under the Phase I Project, the settlement of claims over losses due to the issuance of Section 2 of the LAA, if any, will remain the responsibility of the Government. To address the ongoing concerns of flood risks, especially in the absence of the flood embankments, an Emergency Preparedness and Response plan will be prepared as part of the detailed engineering design of flood protection The World Bank RESTRUCTURING ISDS Climate Resilience Multi-Phase Programmatic Approach (P160005) works in lower Kelani Basin coupled with the strengthening of impact-based flood warning to improve flood preparedness in the area. OP/BP4.37 is triggered because of the connectivity and dependence on water conveyance and control of the existing hydrological systems in the basins and the links of smaller tanks with the storage and operation of upstream medium/ large dams, which is typical for Sri Lanka’s cascading tank and irrigation infrastructure. Phase 1 will engage in detailed designs for two storage reservoirs, flood embankments, dikes, stormwater drainage canals which are hydrologically connected to existing Safety of Dams (OP) (BP 4.37) Yes small and medium tanks in the basins. The later phases will include the construction of two storage reservoirs Therefore due diligence measures with regard to the Safety of Dams have been included in the EAMF. The project will engage design engineers within the ID to ensure the safety of small dams to be constructed under the project. All requirements under OP4.37 on the requirements for small dams in lieu of a dam safety panel of experts will be followed. This policy is not applicable as the project does not Projects on International Waterways (OP) No involve interventions in any areas designated as (BP 7.50) international waterways. This policy is not applicable as there are no disputed Projects in Disputed Areas (OP) (BP 7.60) No areas demarcated in Sri Lanka. KEY_POLICY_TABLE II. KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT A. SUMMARY OF KEY SAFEGUARD ISSUES 1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts. Environmental The Multiphase program under CRes will remain categorized as an Environmental Category A program based on the potential risks associated with project interventions that would involve the establishment of hydrometeorological and early warning systems, flood and drought management planning and the construction of a Salinity Barrier, and detailed technical designs and environmental and social assessments for flood mitigation infrastructure in the lower Kelani basin and two reservoirs in the upper Kelani basin. While the overall program is expected to be environmentally beneficial as the major investments aimed at improving flood warning, ensuring asset management and public safety, and providing multiple benefits reducing water-induced hazards to the physical environment and improving water supply, the planning, design, and eventual construction of new infrastructure is likely to result in significant environmental impacts that will need to be mitigated at a basin level and across the detailed design and The World Bank RESTRUCTURING ISDS Climate Resilience Multi-Phase Programmatic Approach (P160005) implementation phases of the investments. The following environmental safeguard policies are applicable under the project, Environmental Assessment OP/BP 4.01, Natural Habitats OP/BP 4.04, Forests OP/BP 4.36, Physical Cultural Resources OP/BP 4.11, and Safety of Dams OP/BP 4.37. Potential environmental impacts associated with each of the Phases of the program are presented below. This ISDS is applicable to Phase 1 of the MPA operation. Phase I Component 1 of Phase I, post-restructuring, will continue to involve interventions focused on the establishment of Flood forecasting and early warning, and Flood and Drought Modelling for priority basins to be selected during project implementation. Establishment of the flood forecasting and early warning system and associated capacity building of ID and other relevant agencies will have many positive environmental impacts on responding to incidents of intensive climate change. Overall, the process of conducting flood and drought modelling will lead be followed by the development of investment plans that will facilitate to identify investment options to mitigate flood and drought- related risks and complete the hydrological risk mapping which will be environmentally beneficial in the long run. The scope of the planned multi-hazard impact-based early warning system (MHIEWS) will be updated to include (i) improved monitoring for future biological threats and to provide a decision support system that can help decision- makers take early actions to minimize their impact; and (ii) marine hazard impact warnings related to marine contaminants as well as coastal effects such as storm surges and coastal inundation. Both these interventions will bring in benefits in terms of mitigating environmental risks associated with such disasters. Component 2 of Phase I Component 2 will include the development of the Salinity Barrier and preparatory studies and detailed designs for flood mitigation infrastructure in the Kelani Basin, which includes two multipurpose reservoirs in the upper Kelani basin. The following impacts are envisioned during the proposed project activities: Component 2.1 will undertake the replacement of the existing Salinity Barrier in Ambatale, in the lower Kelani Basin. The proposed site in Ambatale has been anthropogenically altered via the construction of a weir, used for extraction of water to the Colombo metropolitan region. The existing salinity barrier at this location consists of a pair of concrete- filled sheet pile walls across the river with a pile of moveable sandbags on top to raise the water level upstream of the barrier. The existing salinity barrier has been constructed to address the threat of salinity intrusion to the water supply intake during dry weather and low downstream river flow periods. However, the modeling results indicate that the barrier causes a sizable increase of flood water levels upstream with its impact propagating several kilometers upstream of Ambatale before reducing to zero. It is now proposed to replace this structure with a barrage with flap gates which will allow rapid river discharge during floods and arrest salinity intrusion during dry weather which will be designed in detail during project implementation. The proposed new gated barrage (new salinity barrier) will be designed to serve as a flood control structure, a salinity barrier, and a regulator to flush off salinity downstream of the intake during low flow periods. This will have positive impacts on the ecosystem as it will ensure that the impacts of salinity intrusion are managed. Potential environmental impacts due to the structure include potential hindrances to the movement of aquatic species and fish migration and require specific design measures to be incorporated. Construction stage impacts for this intervention will lead to site-specific and temporary impacts associated with construction work, such as land clearance, dust, noise, occupational and public health impacts, and impacts due to the use of construction material such as sand, gravel, and metal that can be mitigated via a robust Environmental Management Plan (EMP). The World Bank RESTRUCTURING ISDS Climate Resilience Multi-Phase Programmatic Approach (P160005) Subcomponent 2.2, 2.3, and 2.5 will finance the detailed designs for the Wee-Oya and Upper Deraniyagala reservoirs in the upper catchment of the Kelani river. The establishment of the Wee-Oya Reservoir and Deraniyagala reservoir share the positive impact in the form of relieving the flood victims downstream to a limited extent and maintain a high water table in the surrounding area making it suitable for agro-based livelihoods in the immediate surroundings. While activities financed in Phase 1 itself will not have specific Environmental impacts as they will be assessments. Environmental Screening and EAs will be undertaken for these interventions during Phase I, when preliminary designs are available under the activities specified for Component 2.2 for the Wee Oya and Upper Deraniyagala Reservoirs. Specific Terms of Reference will be developed for the studies to meet the requirements of the World Bank and National legislations. The main potential negative impacts include the following; potential impacts on biodiversity and riverine ecosystems, potential impacts on existing environmental flows, the clearance of a significant area of land, loss of limited agricultural area and the need for the resettlement of families in the area, leading to loss of livelihoods and property that will need to be systematically managed via the environmental and social due diligence process information the detailed designs to avoid and/or minimize impacts to the greatest extents possible. The subcomponent will finance all such assessments as part of the project. Sub Component 2.4 will finance pre-feasibility level technical and socio-economic, environmental studies for trans- basin diversions from Kelani river; and assessments and facilitating consultations with key stakeholders for identifying next steps for improving local stormwater management, flood plains or flood risk zone management in Lower Kelani Basin. The Terms of References for these studies will be reviewed to include the required environmental and due diligence aspects as part of the feasibility assessment. All 3 Phases of the project include CERC Components for which no specific activities are identified at this point, this component will support recovery and reconstruction activities followed by a natural disaster event. In such situations, the project will use generic ESMPs to undertake reconstruction work of the first year following the disaster event, and any activity that will be financed the second year onwards will follow the requirements laid out for the nature of interventions as per the EAMF. However, in the event a dam is breached based on the scope and complexity of the dam, the requirements described under OP 4.37 will need to be followed. Social CRes MPA, via its three consecutive but overlapping phases, is expected to bring overall positive social benefits to the programme areas ensuring a holistic and sound system for the management of floods and climate change related impacts. Specifically, under Component 1, the new weather forecast system is expected to benefit the entire nation while the flood forecasting and warning system will cater to the needs of approximately five million people living in the flood-prone areas of 25 river basins. The Project will also support community level early warning systems for severe weather-related events through user-friendly forecasting and early warning products; creation of a National Center for Climate Services (NCCS) which will provide end-users and the general public with access to a digital library containing climate information and operational products; and a drought monitoring system and enhanced agriculture and climate advisory services (ACAS) that will directly benefit sectoral working groups in the selected basins (agriculture, transport, energy, health, fishery, marine, tourism, etc.). The construction of Ambatale Salinity Barrier under Component 2 will help ease the problems of salinity intrusion and ensure unhindered drinking water supply to the Colombo Municipal Council limits and surrounding area . Likewise, the detailed designs of Wee Oya Reservoir, Upper Deraniyagala Reservoir, trans-basin diversions from Kelani to dryer river basins and lower kelani flood protection works in Phase I and their possible constructions in Phases II and III of the MPA, will help reduce flood risks in lower Kelani basin, augment drinking water supply to Colombo city, and generate hydropower. The World Bank RESTRUCTURING ISDS Climate Resilience Multi-Phase Programmatic Approach (P160005) While the overall programme is envisaged to have positive social and environmental benefits and impacts, the construction of new and upgrading of existing infrastructure, are likely to result in significant adverse social impacts that will need to be mitigated across the detailed design and implementation phases of the investments. Some of the key social dimensions critical to the project which may lead to adverse impacts include: (i) loss of land and productive assets due to land acquisition and involuntary resettlement; (ii) loss of livelihoods and income; (iii) impacts on public infrastructure (e.g., roads, bridges, electricity lines, public water supply), community assets, cultural and religious sites; (iv) risks associated with labor influx, including those related to gender-based violence; (v) political and other interferences from different stakeholders; (vi) construction related impacts such as noise and dust pollution; and (vii) insufficient community support, especially following the changes to the original scope of the CRes MPA. The cancellation of flood embankments and pumping stations from Phase I of the MPA means that the impacts associated with involuntary resettlement, are no longer as significant. In fact, under the original programme, the land acquisition process that had been initiated for the construction of flood embankments, by issuing Section 2 of the Land Acquisition Act 1950, was annulled and the affected communities informed of the cancellation in June 2021. Accordingly, project interventions under Phase I are not expected to lead to any involuntary resettlement impacts; however, the preparation of detailed designs, environmental and social assessments, and the relevant environmental and social instruments (e.g., RAP) that have been planned for the reservoirs that will be constructed in Phases II and III, will have to consider such impacts. Based on preliminary analysis, it is estimated that the construction of the proposed Wee Oya reservoir would cause total displacements of approximately 160 households while the magnitude of the resettlement issues in Upper Deranigala reservoir is yet to be estimated. In addition, there are a significant number of homesteads, plantations, agricultural land and commercial and industrial facilities in the areas earmarked for the construction of Wee Oya and Upper Deraniyagala reservoirs which would be affected by land acquisition required for the construction of the reservoirs. Land acquisition for these reservoirs may impact on these properties, crops and assets. The acquisition of land may lead to total disruption of these activities. The Project is also expected to have adverse impacts on livelihoods since there are a significant number of small- to medium-scale commercial activities, shops, kiosks, workshops, and vehicle repair centers located within the Project area and are to be directly affected by the Project. Likewise, permanent/temporary workers or hired laborers working in the plantations and paddy lands in the reservoir areas are likely to be adversely affected by the land acquisition and clearing of the reservation area. However, based on flood-risks experienced by communities along the river banks as well as the project impact analysis, safeguards management and implementation under the project has been envisaged not only as an instrument to mitigate the adverse project impacts but also to develop and improve livelihoods of the project- affected communities from the risks of floods, salinity intrusions, shortages of water supply, and other extreme weather events. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area. As per the overall project design the planned investments, the MPA will be beneficial both environmentally and socially, as the investment on climate resilience will reduce potential environmental risks, while ensuring protection for the lives and livelihoods of people. Potential long term residual impacts possible from the proposed works on strengthening flood mitigation infrastructure involve the potential arrestment of recharge to wetlands and other low- lying ecosystems in the catchment. There also lies the potential hinderance to existing storm water drainage and impacts on aquatic species and fish migration along the tributaries in the and river/stream network of the Kelani catchment, unless designs incorporate adequate design measures to ensure they are managed. The World Bank RESTRUCTURING ISDS Climate Resilience Multi-Phase Programmatic Approach (P160005) 3. Describe any potential alternatives (if relevant) considered to help avoid or minimize adverse impacts. All project interventions have been selected based on detailed flood and drought modeling and the preparation of Basin Level Flood and Drought Mitigation Investment Plans via the World Bank-funded Climate Resilience Improvement Project (CRIP). During the modeling and planning phase, a number of alternative scenarios were analyzed in relations to the salient environmental features, climate patterns, and socio-economic conditions prevalent in the project area, to deduce the most suitable flood mitigation interventions. Further, a Strategic Environmental Assessment (SEA) and Strategic Social Assessment (SSA) was carried out and completed for the Kelani Basin Level Flood and Drought Mitigation Investment Plan in June 2018. The SEA and SSA identified the potential impacts as those that can result from the proposed interventions to be financed under Component 2 of Phase I. The findings and recommendations from the SEA and SSA will be used by the Irrigation Department during the process of feasibility modeling and design of physical interventions. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. Policy and Regulatory Framework The policy and regulatory framework in Sri Lanka provide an adequate basis for the mitigation of potential impacts mentioned above. Under the National Environmental Act, administered by the Central Environmental Authority (CEA) and North-Western Province Environmental Statute, administered by North Western Provincial Environmental Authority, activities that fall into a prescribed category are required to go through a comprehensive environmental screening and planning process. Accordingly, all river basin development and irrigation projects, excluding minor irrigation works, require an environmental assessment (EA). In addition, activities in the coastal zone will be subjected to clearance from the Coast Conservation Department, as per the Coast Conservation Act. Likewise, Sri Lanka has a fair structure policy framework and regulations relating to land acquisition and resettlement which are considered to be fairly consistent with the World Bank's policy guidelines, including the Land Acquisition Act 1950, Land Acquisition Regulations 2008, and National Involuntary Resettlement Policy 2001. Environment In 2019 a SEA was carried out by the GoSL for the FDMIP to inform the subproject selection and project preparatory activities. The main thematic recommendations from the Kelani SEA that are associated with the Cres MPA financed interventions have also been incorporated to project design and included in the EAMF in the form of guidance and are summarized below: • The SEA proposed that a fully-fledged Environmental Unit is established at the Irrigation Department manned by suitably qualified environmental professionals. This recommendation has been incorporated into project implementation arrangements. • Detailed recommendations on the reduction of the length and height of the flood bunds, and potential design- related impacts, these were taken into account in the flood modeling and will be used for the detailed design phase of the project that will be undertaken at implementation. • On the Trans-basin diversions whereby the use of floodwater in drought-stricken areas, will be optimized, resulting in gainfully utilizing the floodwaters rather than simply sending it to the sea, thereby gaining maximum returns on investment to the national economy. The SEA recommended that the proposed intervention to divert Kelani Water be investigated fully for its flood reduction potential as well as for potential environmental and social The World Bank RESTRUCTURING ISDS Climate Resilience Multi-Phase Programmatic Approach (P160005) impacts, in order to decide on the most cost effective and sustainable solution. This and provisions for studies is included as part of the project. • For the embankments and two tanks the SEA specifically recommends that the processes of the National Environmental Act be followed as the proposed interventions are “Prescribed Projects� which require full scale Environmental and Social Impact Assessments. Since the study of alternatives is a prerequisite of the EIA process, the above-mentioned study of all potential alternatives for flood control in the Kelani River Basin, will also result in fulfilling this essential requirement of the ESIA process. The SEA also confirmed the initial suitability of all project locations, subject to detailed site specific ESIAs based on subproject specific designs. • For the Weeoya and Upper Deraniyagala Tanks, the needs for either the ESIA to incorporate Biodiversity Assessment Principles should be included or independent assessments should be taken to inform the ESIA process. Due to the limitation in data, maps and known sites where the presence of endemics/point endemic fish and aquatic plants can be present. • The SEA confirmed more positive benefits from the flood and drought management interventions proposed vs negative and recommended the following actions be undertaken via the program. This is as the nature of many pockets along the Kelani basin are still preserved from development due to the accessibility and nature of the river meanders and surrounding areas. The SEA has informed the preparation of a program-specific Environment Assessment and Management Framework (EAMF) for CRESMPA which outlines the processes and serve as a guideline to site-specific environmental screening, preparation of ESIAs, and subsequent Environmental and Social management plans (ESMPs), for all project investments across its Phases, as well as layout a stringent monitoring program, in line with the World Bank’s safeguard policies, World Bank Group Environmental Health and Safety Guidelines as well as National Environmental Regulations. The EAMF has been consulted and disclosed by the GoSL and by the Bank on 9, January 2019 and the update EAMF has been redisclosed as part of this proposed restructuring on 20, July 2021. All new construction, upgrading, and rehabilitation work and related activities financed under this project as well as any other activities that may lead to potentially adverse environmental impacts would be subject to Environmental Screening and need to undertake a ESIAs commensurate with the potential for environmental impacts and prepare detailed ESMPs that would be included for implementation as part of the civil works contracts. Social Based on flood-risks experienced by communities along the river banks as well as the project impact analysis, safeguards management and implementation under the project has been envisaged not only as an instrument to mitigate the adverse project impacts but also to develop and improve livelihoods of the project-affected communities from the risks of floods and other extreme weather events. Following this strategy, the following are series of instruments prepared under the project: Strategic Social Assessment (SSA), Resettlement Policy Framework (RPF) and Social Management Framework (SMF), which identity the strategic social issues relevant to the entire MPA as well as provide guidelines to develop the mitigation plans for all investments under the various phases of the project. Besides the land-related impacts, these instruments, especially the SMF also addresses other social issues, including those related to construction, gender, citizen engagement and labor influx. All the required social safeguards instruments have been updated to reflect the revised scope of the MPA, reviewed, cleared and disclosed in-country as well as on World Bank's external website: Resettlement Policy Framework (disclosed: 20 July 2021; Social Management Framework (disclosed: 20 July 2021); and Strategic Social Assessment for Kelani basin (disclosed: 22 March 2019). Borrower Capacity The World Bank RESTRUCTURING ISDS Climate Resilience Multi-Phase Programmatic Approach (P160005) The Ministry of Irrigation (MI) and the State Ministry National Security and Disaster Management (SMNSDM), Ministry in-charge of disaster management subject) will be the Implementing Ministries, with the overall responsibility of the Project under the MI. The Irrigation Department (ID) of the MI, and the Department of Meteorology (DoM), the Disaster Management Center (DMC) and the National Building Research Organization (NBRO) of the SMNSDM will implement the Component 1 collaboratively, and the ID will implement the Component 2. All these agencies have prior experience working on Bank financed operations are are familiar with the Bank's safeguards due diligence processes. The ID has over a decade of experience across multiple projects. The Project Management Unit (PMU) Bank-financed CRIP I has a qualified Environmental Specialist and a Social Development Specialist focused on the CRes MPA Program and has been overseeing the safeguards preparatory work since project implementation, including ensuring the completion of the Kelani and Mundeni Aru SEAs. However, since the potential social and environmental impacts under CRes MPA are likely to be more complex, more stringent due diligence and institutional mechanisms are required in terms of environmental and social management and supervision during project implementation. To respond to this need, the ID will establish an Environmental and Social unit, with staff that will be seconded and trained and where necessary augmented with the support of Consultant Environmental and Social Specialists to oversee project implementation in line with the processes outlines in the EAMF, SMF and RPF. This unit will be responsible for coordinating with all other project implementing agencies and units within the MI. The team will include from the Environment side a 5 member team lead by a Senior Environmental Specialist, who will lead the team within the PMU, with 4 additional Environmental Officers, assigned to oversee project interventions and conduct field-level monitoring activities during subproject implementation. On the social side, At the commencement of the Phase 1, the project coordination team of the Ministry of Irrigation will include a full time and dedicated senior and experienced social development specialist. However, as the project activities expand with the commencement of the construction activities of the Ambatale salinity barrier and social assessments, including while carrying out consultations and preparation of RAP for the flood risk mitigation interventions of the lower Kelani basin, the project coordination team will be reinforced with additional safeguard officers and support staff and will engage individual consultants and local consultant firms to handle the increased work related to social safeguards management. With the commencement of Phase II and III, a Social and Resettlement Unit (SRU) will be established under the Project Coordination team. The SRU will be responsible for social safeguards management under the Cres MPA, including land acquisition and resettlement activities. The SRU will be adequately staffed with experienced, as well as new staff, who will be responsible for co-ordination with the relevant government ministries and departments engaged in the land acquisition process and the affected parties, and managing the day-to-day activities related to land acquisition and resettlement. The Project Coordination team will be responsible for ensuring the sound implementation of all provisions outlined in the EAMF, RPF, SMF, RAP for Phase I and other sub-project-specific safeguards management plan throughout all phases of the project. 5. Identify the key stakeholders and describe the mechanism for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The key stakeholders include: Key ministries and departments, including the MI, SMNSDM, ID, DoM, DMC, NBRO Managers or engineers at the operational level - chiefly, officers of the ID; Administrators and regulators such as the offices of Divisional Secretary, Government Agents; Water resources decision makers, at the strategic level - which include line ministries with a focus on Water Resources and Disaster Management, Agriculture, Finance and Planning, Mahaweli Development and Environment and Sustainable Development and Wildlife who formulate draft policies The World Bank RESTRUCTURING ISDS Climate Resilience Multi-Phase Programmatic Approach (P160005) and programs and allocate resources, and policy makers, political functionaries, scientific and extension agencies who play a major role in promoting public safety and water resources development and planning; NGOs and civil society organizations; community members; project affected persons; etc. During the preparation of the SSA, SEA, RPF, EAMF, and the SMF and RAP for Phase I, during the original project, consultations were carried out in 21 Divisional Secretary Divisions (DSD) with representatives from eight national agencies, and the affected communities to disseminate information about the MPA, understand the socio-economic situation in the project areas, seek inputs for the safeguards management plans, and verify the roles and responsibilities of various stakeholders in the project. Additional systematic and extensive consultations with all the key stakeholders will be conducted as part of the projects overall consultative mechanisms as well and environmental and social assessments and safeguards management plans. All the main safeguards instruments, including the Strategic Social Assessment, Strategic Environmental Assessment, Environmental Assessment and Management Framework, Resettlement Policy Framework, Social Management Framework and the Resettlement Action Plan for Phase I have been reviewed and cleared by the Bank, were also disclosed in-country and the World Bank's external website as part of the original projects. As part of the restructuring and associated changes and in light of the ongoing Covid-19 Pandemic related restrictions in country. The consultations of the updated Environmental and Social due diligence instruments will be undertaken in line with an agreed staggered stakeholder engagement and consultations program that will be carried out until project implementation commences and there on wards as part of the respective EA and RPF development processes. This process has been presented in the project's EAMF and SMF accordingly. DISCLOSURE_TABLE B. DISCLOSURE REQUIREMENTS ENV_TABLE Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank Date of submission for disclosure 30-Jun-2021 20-Jul-2021 For Category ‘A’ projects, date of distributing the Executive Summary of the EA to the Executive Directors 07-Feb-2019 “In country� Disclosure Country Date of Disclosure Sri Lanka 16-Jul-2021 Comments The World Bank RESTRUCTURING ISDS Climate Resilience Multi-Phase Programmatic Approach (P160005) RESETTLE_TABLE Resettlement Action Plan/Framework Policy Process Date of receipt by the Bank Date of submission for disclosure 14-Jan-2019 23-Jan-2019 “In country� Disclosure Country Date of Disclosure Sri Lanka 23-Jan-2019 Comments COMPLIANCE_TABLE C. COMPLIANCE MONITORING INDICATORS AT THE CORPORATE LEVEL EA_TABLE OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Practice Manager (PM) review Yes and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes NH_TABLE OP/BP 4.04 - Natural Habitats PCR_TABLE OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural property? Yes Does the credit/loan incorporate mechanisms to mitigate the potential adverse Yes impacts on cultural property? IR_TABLE OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework Yes (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Practice Manager Yes review the plan? The World Bank RESTRUCTURING ISDS Climate Resilience Multi-Phase Programmatic Approach (P160005) FO_TABLE OP/BP 4.36 - Forests Has the sector-wide analysis of policy and institutional issues and constraints Yes been carried out? Does the project design include satisfactory measures to overcome these Yes constraints? Does the project finance commercial harvesting, and if so, does it include NA provisions for certification system? SD_TABLE OP/BP 4.37 - Safety of Dams Have dam safety plans been prepared? No Have the TORs as well as composition for the independent Panel of Experts (POE) No been reviewed and approved by the Bank? Has an Emergency Preparedness Plan (EPP) been prepared and arrangements No been made for public awareness and training? PDI_TABLE The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for Yes disclosure? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups Yes and local NGOs? ALL_TABLE All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been Yes prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project Yes cost? Does the Monitoring and Evaluation system of the project include the monitoring Yes of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower Yes and the same been adequately reflected in the project legal documents? The World Bank RESTRUCTURING ISDS Climate Resilience Multi-Phase Programmatic Approach (P160005) III. APPROVALS Asmita Tiwari Task Team Leader(s) Thalyta Ernandya Yuwono Approved By Safeguards Advisor Pablo Cardinale 20-Jul-2021 Practice Manager/Manager Abhas Kumar Jha 20-Jul-2021 . Note to Task Teams: End of system generated content