CRes MPA Aide Memoire – May 2024 AIDE MEMOIRE Sri Lanka: Climate Resilience Multi-Phase Program (CRes MPA) (P160005) Phase I - Flood Early Warning and Kelani Climate Resilience Project Pre-Mid Term Review Mission May 13–17, 2024 I. INTRODUCTION 1. Representatives of the Government of Sri Lanka and the World Bank (WB) mission team1 jointly reviewed the project implementation progress of the Climate Resilience Multiphase Program (CRes MPA) Phase I Project during May 13–17, 2024. The objectives of the mission were to: (i) evaluate the CRes MPA implementation progress and the achievement of the targets set forth in December 2023, (ii) review the compliance with the legal covenants, and (iii) discuss and agree with government counterparts on how to process project restructuring, based on the progress achieved. The full list of government counterparts met is presented in Annex 1. 2. The Bank team would like to express its appreciation to the counterpart staff of the Ministry of Finance (MoF), the Ministry of Irrigation (MI), and Disaster Management Division of the Ministry of Defense, and the Project Coordination Team (PCT) for the cooperation extended. This Aide Memoire (AM) documents the key findings and agreements reached during the mission and discussed at the wrap-up meeting held at the Ministry of Finance on June 5, 2024. II. SUMMARY OF PROJECT STATUS AND KEY AGREEMENTS Key Project Data- CRes MPA Phase I Project Project Number P160005 IBRD Loan Number 8996-LK Closing Date 31 Dec 2026 Total IBRD Financing US$92 m Counterpart US$1 m Total US$5.8 m Financing Disbursements Board Approval 25 June Date of Last Mission Dec. 2023 Mission Start Date May 13, 2024 Date 2019 Effectiveness Date 12 Oct 2021 Site Visit Date May 14, 2024 Mission End Date May 17, 2024 3. Implementation Progress: Project Implementation pace has improved since the February mission. Cumulative commitments increased by around 45% (US$7 million) and total US$15 million, and disbursements have reached US$5.8 million. Key achievements include (i) signing of Salinity Barrier design review and supervision contract in March, (ii) effective use of the Hands-on Expanded Implementation Support (HEIS) which has facilitated finalizing critical procurement packages, and (iii) progress on Component 5 commitments and implementation. The project is still lagging behind the financial targets agreed during the December mission. However, it was agreed to extend the due date for the financial targets in view of the recent progress and potential adverse impact of the 1 The World Bank team was led by Jolanta Kryspin-Watson (Lean Disaster Risk Management Specialist and Task Team Leader [TTL]), and included Priyanka Dissanayake (Disaster Risk Management Specialist and Co-TTL), Amparo Samper Hiraldo (Senior Disaster Risk Management Specialist and Co-TTL), Heenaben Doshi (Senior Procurement Specialist), Anula Harasgama (Senior Financial Management Specialist), Mokshana Wijeratne (Senior Environmental Specialist), Kristine Schwebach (Senior Social Development Specialist), Sophie Devnosadze (Operations Officer), David Rogers (Senior Hydromet Advisor), Nihal Fernando (Consultant Senior Engineer), Chris Cameron-Hann (Hydrological Consultant), Lalith Chandrapala (Senior Hydromet Consultant), Tjark Gall (consultant) and Prabuddha Boralugoda (Consultant Engineer). Ayoni Rangala (Team Assistant) assisted the project team throughout the mission. 1 CRes MPA Aide Memoire – May 2024 monsoon2. It is expected that cumulative commitments and disbursements under the project will reach at least US$51 million and US$19 million respectively, before August 31, 2024. The progress will be assessed in September 2024. 4. The Bank team and counterparts discussed the need to restructure the project. Proposed adjustments include reallocation between components and revisions to the Results Framework (RF). The details are in Annex 3. 5. Achievement of Project Development Objectives (PDO): Due to continued implementation delays, there is no sufficient progress to report under any of the PDO-level indicators. However, there is a notable progress under the Intermediate Results Indicators (IRI) measuring Component 5. The current status is presented in Annex 4. It was discussed and agreed that the RF needs to be adjusted to better capture the results of the project interventions. The proposed project restructuring will address this adjustment, as explained in Annex 3. 6. Project Management: The PCT is now fully staffed and carrying out its responsibilities. The PCT has recently shared with the Bank some of the overdue documents, including Project Procurement Strategy for Development (PPSD), and updated Procurement Plan. However, the PPSD requires revisions to reflect the changes in the procurement plan. The Bank team reminded the PCT about the requirement of submitting the Annual Workplans and Progress Report which have been overdue. The Progress Report for the semester ending on December 31, 2023, is overdue since mid-February, its submission may no longer be worthwhile. Hence, it was agreed that the PCT will submit Project Reports not later than six weeks after the end of each calendar semester, starting from the semester ending in June 2024. In addition, the PCT is expected to submit for the Bank’s approval, a proposed annual work plan and budget for the Project and the updated Procurement Plan for each subsequent fiscal year, not later than November 30 of each year during Project implementation (as stipulated in the Loan Agreement, schedule 2, section 1, E.). The Status of the actions agreed upon during the February mission is in Annex 2. 7. Procurement: We have observed notable progress in the procurement pipeline, with the effective use of the Hands-on Expanded Implementation Support (HEIS) provided by the Bank. Areas for attention: o Procurement Implementation Arrangement: The Loan Agreement (LA), Project Operations Manual (POM) and Project Appraisal Document (PAD) mention that PCT is the only procuring entity for Component 1. The Bank requests that the Borrower strictly adheres to stipulations in these documents to ensure the PCT is the only entity to implement procurement process. Other involved departments shall provide technical inputs. o Confidentiality during procurement process: There is concern relating to recent evaluation processes, particularly for a post review package for which PCT has received complaint/request for clarification immediately after a draft TER was prepared. The Bank team strongly suggest following stipulations of the LA and POM. o Post-Procurement Review: The Bank will be conducting post-procurement review for the contracts awarded under the post-review category after August 31, 2024. PCT agreed to provide a list of awarded contracts under the post review category to enable the bank to select the sample contracts to conduct the PPR. o Project should hire a consultant to prepare the report on procurement performance audit for community procurement under component 5. 8. Financial Management: The Financial Management (FM) performance is satisfactory. Audit reports and Interim unaudited financial reports (IUFRs) are up to date. The PCT has an FM Specialist and an internal auditor. Areas for attention: (i) operationalization of the procured FM software by May 31, 2024; (ii) submission of annual audit report for the FY23, by June 30, 2024; and (iii) submission of internal audit report for the quarter ended March 2 There is consensus among forecasters and experts from the European Centre for Medium-Range Forecasts (ECMWF), the UK Met Office, the Department of Meteorology in Sri Lanka and related organizations that warmer-than-average sea surface temperatures in the western Indian Ocean will contribute to a severe 2024 South West Monsoon season. The onset of the monsoon in the third week of May is likely to trigger above average rainfall, which will increase in severity during subsequent waves in June, July, and August. The highest rainfall is expected to exceed 100% of normal based on the latest predictions resulting in severe flooding, landslides, and other weather-related hazards with risk to lives, livelihoods and property. The impact is expected to be comparable or worse than the 2017 season, which resulted in loss and life and had a major economic impact. 2 CRes MPA Aide Memoire – May 2024 31, 2024, by May 30, 2024. The detailed review is presented in Annex 5. 9. Safeguards: The project’s compliance with the Bank’s Environmental Safeguard Policies and Environmental Assessment and Management Framework (EAMF) has been downgraded to Moderately Unsatisfactory. This decision follows the Mission's evaluation of safeguard implementation and monitoring under Component 5, which revealed significant lapses in adhering to Environmental and Social Codes of Practice (ESCOPs). Key issues identified include site management, debris management, potential labor influx impacts, public and occupational health and safety, and poor Grievance Redress Mechanism recording and reporting. To address these, the PCT has been advised to implement corrective actions, such as targeted training, simplified monitoring processes, and increased staffing support. Additionally, the Bank team reviewed Environmental and Social Screening Reports (ESRRs) for Component 1 and emphasized the need for detailed technical information to enhance report accuracy. For Component 2, the detailed design consultancy for Ambatale Salinity Barrier will result in significant changes to the intervention’s design. Therefore, PCT needs to update Environmental and Social Impact Assessments (ESIA) TORs for the Ambatale Salinity Barrier and develop a first draft ESIA for Wee Oya. The detailed review and action plan of the Environmental and Social Safeguards is presented in Annex 6. 10. Potential Livelihood Risk: There is a risk that this season’s cultivation at the Jamburewela canal may be delayed if irrigation works are not completed by the end of May. This may impact livelihoods and raise safety concerns due to the potential for Human-Elephant Contact. Improvements to the Vaikaladichenai anicut in the Unnichchai Scheme are limited to the main structure and do not include water control gates. Without the needed gates, the irrigation system cannot function, which would also impact farmers’ cultivation season. A delay in cultivation could impact the livelihoods of all farmers, families, and workers who rely on the irrigation systems. If the irrigation systems are not functioning due to project activities, the project must consider mitigation measures to address resulting impacts. One option is for the Irrigation Department to determine an alternate way for farmers to access irrigation, as well as to determine temporary gate options. If farmers cannot access irrigation water and therefore must delay cultivation, the project will need to consider compensating all impacted persons for the loss of livelihood. 11. Compliance with Legal Covenants: Two legal covenants are overdue: (i) Project’s financial management software should have been operational not later than 9 months from the project effectiveness (overdue since July 2022); and (ii) independent Dam Safety Panel of experts should have been established no later than 12 months from the project effectiveness (overdue since October 2022). Their status as of the mission period is as follows: • Financial Management Software was purchased, and the Bank’s Financial Management Specialist will assess the status in June, 2024. • The Dam Safety Panel was appointed on March 21, 2024; however, composition of the panel is not acceptable to the Bank due to inadequate skills and expertise of the members relative to the Terms of Reference (ToR). 12. Monitoring and Evaluation (M&E): As the project implementation advances, it is essential that the PCT strengthens its M&E capacities, devises an M&E plan, and take necessary steps (including hiring consultants for independent assessments and surveys) to be able to report on results before the Mid-Term Review (MTR). 13. Summary of the key actions agreed during the mission: (in addition to the actions related to Procurement, FM, and Safeguards which are listed in the respective annexes): o WMO-WB Technical Assistance (TA) Agreement (US$8 million) to be signed by June 15, 2024, by PCT and the Ministry of Irrigation (MI) o Meet pending legal covenants: • Financial Management software operational by PCT, by May 31, 2024 • Competitive Selection of the Dam Safety Panel initiated by MI, July 15, 2024 o The government Mid-Term Review report to be submitted to the Bank by December 31, 2024, by PCT/IAs. 3 CRes MPA Aide Memoire – May 2024 o Project progress report for the semester ending on June 30, 2024, submitted to the Bank by August 11, 2024, by PCT o Annual Workplan for 2025, along with the updated Procurement Plan submitted for Bank approval by November 30, 2024, by PCT o Revised PPSD to be submitted by May 31, 2024, by PCT. o Request for project restructuring to be sent to the Bank by the Ministry of Finance, by June 17, 2024 o Access to Risk Info and other databases granted by DMC to the Bank team by June 6, 2024 III. DETAILED PROJECT STATUS AND AGREED NEXT STEPS Component 1: Forecasting and Early Warning of High Impact Weather, Floods and Landslides (US$45.5 million) 14. Component 1 current commitments amount to only US$0.86 million. This component was significantly delayed, but procurement of most activities began after the work plan was finalized in March 2024. The procurement process is expected to accelerate in the coming weeks. Several large packages are expected to be awarded in the coming weeks (around US$12 million), and over 50 goods packages for all 4 agencies, including Digital Elevation Model, Hydrogen Generators, IT hardware and software packages, are in various procurement processes. 15. Given the expected severity of the upcoming monsoon season, it is recommended to prioritize and, where possible, accelerate all activities that would support those at risk to take anticipatory action to reduce harm. Project results indicators would reflect the expected increase in dissemination and communication of impact-based warnings and recommended actions during the season. DoM (US$11.5 million) 16. No commitments as of the May mission. Around US$7 million is allocated for modernizing the DoM, while the balance is for expanding the observational network, including refurbishing and expanding regional DoM offices. The hiring of the design firm for DoM modernization (US$3 million) is at the RFP evaluation stage, with the evaluation expected to be submitted to the Bank before the end of May 2024. The hiring of the architectural firm to refurbish the regional office is initiated, and most of the goods packages are at an advanced stage in the procurement process. 17. The RFP evaluation process for the design of DoM modernization has taken almost two months since March 18, 2024, due to disagreements within the procurement committee and between the PCT and the procurement committee. It is crucial to minimize the time taken for evaluations for other contracts in the procurement pipeline. ID (US$18.4 million), including US$2 million for capacity development 18. Current commitments amount to US$0.46 million. Finalizing the ToRs for the consultancies on LIDAR and Bathymetric Survey, Flood Modelling, Investigation for new Hydrological Stations, and the WMO contract was significantly delayed. The Bank team urges the MI to expedite the procurement process and internal approvals required to award these contracts. 19. WMO Agreement (US$8 million): Finalizing the scope took almost 4 months and includes: Strengthening flash flood guidance and warning system; Developing dam breach modelling for assessing downstream risks; Developing flood hazard maps for high-risk areas in 22 river basins; Conducting an impact-based forecasting pilot study for expanding to 22 river basins and conducting a comprehensive catchment study to develop a dam breach model and to prepare inundation maps and emergency action plans. The MI and WMO are finalizing the framework agreement. The cabinet paper for the agreement was approved by the cabinet of ministers on June 3, 2024. Therefore, the PCT should proceed with the agreement finalization and signing by June 20, 2024. 20. Areas for attention include the following: o The Bank agreed with the PCT and MI to proceed with one package and three lots for the LIDAR and 4 CRes MPA Aide Memoire – May 2024 Bathymetric Survey contract (US$3.8 million) and one ICB package for the flood modeling (US$1 million) contract which are expected to be signed by July 31, 2024. o It was agreed to go ahead with ICB for Satellite High-Resolution Digital Elevation Model (DEM) for entire Sri Lanka. o The Satellite High-Resolution DEM and the results of the LIDAR and Bathymetric Survey are required for flood modeling; therefore, the timing of these activities needs to be planned accordingly. o The delays in committee decisions and disagreements within procurement committees and between PCT and procurement committees have significantly delayed the finalization of technical specifications, ToRs, and evaluations. o The server that contains information from the Climate Resilience Improvement Project (required to access models for Component 1 and Component 2) has failed. It must be replaced as a matter of urgency, using the CResMPA financing. This is a critical path item for the detailed design review and revisions for the Ambatale Salinity Barrier. NBRO (US$9.1 million) 21. Current commitments reached US$0.4 million. NBRO has managed to move forward with the high value goods packages and the contracts on Automatic Rain Gauges (US$0.75 million) and air quality sensors (US$1 Million) are expected to be awarded by end of May 2024. The US$3 million initially allocated for mini radars is now reallocated for the Landslide Resilience.. NBRO has also initiated the procurement process for US$1.5 million allocated for the Decision Support System (Analytical and Advisory System implementation for Landslides). Also, the Bank team agreed that US$1 million can be allocated for the development of the building code to provide the reference data to address systematically the vulnerability of structures in the Multi Hazard Early Warning System (MHEWS), while bringing broader benefits to the built environment. 22. Areas for attention: The mission recommended that the planned work on Analytical and Advisory System for Landslides to be implemented by NBRO includes decision support for the upcoming monsoon which is likely to have severe impacts. However, the package is estimated at US$0.75 Million hence, the Cabinet approval and subsequent evaluation by Cabinet Approved Procurement Committee is required. DMC (US$4.5 million) 23. No commitments as of the May mission. The consultancy on Upgrading the Emergency Preparedness and Response Capacity is behind schedule, with Expression of Interest at the evaluation stage. It is expected that this contract will be awarded in June 2024 to ensure the design of the Emergency Operation Center (EOC) is completed on time, allowing the actual modernization to commence and to be completed before the project’s closing date. It is important that the procurement of the Decision Support System is accelerated so that it is available for the upcoming monsoon season which is likely to have severe impacts. Therefore, DMC should propose a plan to speed up procurement and implementation of this package, given the high risk to the population during the monsoon. 24. The Bank team has requested the DMC to grant them and the Cres MPA IAs access to Riskinfo and other data bases to ensure that the vulnerability data are readily available for flood modeling and decision support systems. This request has been outstanding for over 12 months. The Bank team also requested DMC to launch the damage and loss system which was developed by Asia Disaster Preparedness Center with GFDRR funding in 2021. 25. Areas for attention: o Once the design is completed, it will take at least 24 months for the actual modernization works to be completed. Any delay in awarding the contract for design will push the modernization works beyond the project closing date. o The DSS ToR should be finalized as soon as possible and the procurement process move forward. o Restore online access to Riskinfo and other databases. 5 CRes MPA Aide Memoire – May 2024 o Launch Damage and Loss system already developed. Component 2: Construction of Salinity Barrier and Studies (US$28.5 million) 26. Overall, Component 2 implementation is progressing well. Current commitments amount to US$2.36 million. 27. Salinity Barrier Design Review: The Consultant has submitted the draft Inception Report, which is being reviewed by the PCT and the Bank team. The Bank team discussed key design concepts and aspects that warrant careful attention and close follow-up with the Consultant to ensure the final design’s appropriateness, reliability, safety, operational efficiency, and cost effectiveness. The Bank team emphasized, and the PCT agreed, to closely monitor the Consultant’s inputs and deliverables and ensure the design review is completed and bid documents are produced on time, allowing the procurement process for hiring a construction contractor to commence. The Bank team recommends PCT and ID to strengthen their contract management capacities for supervising the Ambatale Salinity Barrier Design Review contract. The PCT should hire a Contract Management Specialist as soon as possible, preferably a Senior Engineer with extensive experience in design and construction of complex hydraulic infrastructure and strong communications skills. 28. Detailed Designs of Wee Oya Multipurpose Reservoir: The Bank has cleared the Technical Evaluation Report (TER) for selecting a consultant for detailed designing. The PCT is now conducting the combined evaluation of proposals, with the goal of awarding the contract by the end of June 2024. The Contract Management Specialist could assist the PCT and ID in managing the consulting contract for Detail Desing for Wee Oya reservoir too. 29. The Bank has agreed in principle for PCT to engage the NBRO to conduct a Landslide Susceptibility Assessment at the proposed location of the Wee Oya Reservoir and its surrounding areas. The recommendations from this assessment for landslide risk mitigation will inform the Wee Oya Detail Design. Moreover, land slide mitigation measures detail designs will be developed under the above-mentioned design contract. This task must be completed as soon as possible to ensure the timely completion of the detailed designs. 30. Dam Safety Panel of Experts (PoE): The Bank confirmed that the World Bank’s OP/BP 4.37 on Dams Safety will apply for both the design and construction of the Salinity Barrier and the detailed designs of Wee Oya Reservoir. While the PCT proposed a PoE and submitted the CVs of the panel members to the Bank, the CVs do not demonstrate sufficient expertise and experience to provide review and advise on design and construction of the two complex hydraulic structures. The PCT agreed to appoint a new PoE with qualifications and experience satisfactory to the World Bank by July 15, 2024. The Bank also emphasized the need to ensure that PoE is fully represented with all the key technical areas associated with the design and construction of these hydraulic structures. The ToR of the PoE was revised to integrate the recommendations provided by the World Bank Lead Dam Specialist. The Bank recommends initiating a competitive and transparent selection process to form the Panel as soon as possible. Component 3: Project Management (US$3 million) 31. This component has committed US$1.61 million. Component 5: Improving Climate Resilience and Maintenance of Irrigation and Stormwater Infrastructure (US$15 million) 32. The activities under Component 5 have significantly accelerated since the last mission, with commitments reaching US$10 million. It is expected that the remaining US$5 million will be fully committed by June, 2024. To date, US$2.2 million has been disbursed for works under this component. Around 16 kilometers of irrigation and storm- water infrastructure is improved, benefitting around 90,000 community members. Both indicators have overachieved original targets (15 kilometers, 25,000 beneficiaries) as these targets were underestimated at the project preparation. The proposed restructuring will address this inaccuracy by revising the targets. Disbursements are anticipated to increase in the coming months. The Bank team and ID discussed the potential reallocation of US$2 million from Component 1 to Component 5 as part of the proposed project restructuring. The Bank team agrees for the National Competitive Bidding (NCB) contracts to be completed beyond December 2024 if deemed necessary. 6 CRes MPA Aide Memoire – May 2024 33. As ID progresses with the implementation of irrigation rehabilitation works, the Bank team strongly urges ensuring proper supervision and quality control, particularly for NCB contracts. Maintenance plans should be developed for the completed rehabilitation works to ensure the medium- and long-term safe operation. Additionally, the Bank team requests ID to implement the agreed corrective actions to monitor and address environmental and social safeguards monitoring (see Annex 6). Finally, given the anticipated high level of precipitation during the monsoon season, the Bank team recommends completing as much work as possible before July, with careful attention to quality. 7 CRes MPA Aide Memoire – May 2024 Annex 1: List of Key Government Staff Who Participated Mission Meetings Ministry of Irrigation Mr. Saman Pandikorala Secretary Ms. Tharani Gamage Additional Secretary Eng. (Ms.) P.M. Jayadeera Additional Secretary Eng. (Ms.) Namalie Madawalagama Additional Secretary Presidential Secretariat Mr. Faleel Mubarak Additional Secretary Disaster Management Division, Ministry of Defense Mr. K.G. Dharmathilake Additional Secretary Mr. Nalaka Priyashantha Director Planning Ministry of Finance Department of External Resources Mr. Ajith Abeysekera Director General Mr. Samantha Bandara Additional Director General Ms. Himali Bogodagedera Director (Acting) Mr. Ranjith Garusinghe Deputy Director Mr. Sachith Fernando Deputy Director Department of National Planning Mr. R.H.W.A. Kumarasiri Director General Ms. Sumanawathie Yapa Additional Director General Mr. Rohitha Wickramarathna Director Irrigation Department (ID) Eng. Ajith Gunasekera Additional Director General / Deputy Project Director in-charge of all the studies to be carried of Comp. 2 Eng. S.P.C. Sugeeshwara Director of Irrigation (Hydrology & Disaster Management) / Deputy Project Director in- charge of the ID related works Eng. L.S. Sooriyabandara Director of Irrigation (Hydraulics)/Deputy Project Director Salinity Barrier National Building Research Organization (NBRO) Dr. Asiri Karunawardena Director General 8 CRes MPA Aide Memoire – May 2024 Dr. Wasantha Senadheera Senior Scientist, Deputy Project Director in charge of the NBRO related works Department of Meteorology (DOM) Mr. Athula Karunanayake Director General Mr. Ajith Wijemannage Director of Meteorology, Deputy Project Director in- charge of the DoM related works Disaster Management Centre Maj Gen Udaya Herath Director General Mr. J.M.A.R. Jayarathna Deputy Director (Early Warning)/ Deputy Project Director for DMC activities Mr. Thushitha Waidyarathne Assistant Director (Communication) CRes MPA Project Coordination Unit Mr. Bandula Sirimal Project Director Mr. Dhanushka Meegaswaththa Environmental Specialist Mr. Sisira Kumara Senior Social Safeguards and Resettlement Specialist Mr. S.Piranavan Procurement & Contract Management Specialist Mr. I.R.H.M.A. Bandara Project Accountant Eng. Wayangi Lakshani Weerasekera Project Engineer (Procurement) Eng. Siriwardena Senior Project Engineer (Procurement) 9 CRes MPA Aide Memoire – May 2024 Annex 2: Status of the actions agreed during the February 2024 mission Agreed Action Responsible Timeline The Current Entity Status 1. Compliance with the legal covenants: 1.1 Financial Management Software PCT Immediately Not met Operational Revised date: May 31, 2024 1.2 Establish Dam Safety Panel PCT, MoI Immediately Not met (Appointed Panel not acceptable to the Bank) 2. Activate the WMO-WB Technical PCT, MoI March 31, 2024 Not met Assistance Revised date: June agreement. 15, 2024 3. Contract for salinity barrier design PCT, MoI January 31, Met with delay, in review signed 2024 March 2024 4. Award all contracts for irrigation ID May 31, 2024 Partially met schemes Revised deadline: rehabilitation and disburse 50% June 15, 2024 5. Submit to the Bank all required PCT Immediately Partially met documents immediately (e.g., Annual PPSD and Workplans, updated Procurement Plan, Procurement Project Procurement Strategy for Plan submitted. Development (PPSD) and Progress PPSD requires Report revision by May 31, 2024 10 CRes MPA Aide Memoire – May 2024 Annex 3: Proposal for Restructuring 1. Reallocation Between Components: US$2 million will be reallocated from Component 1 to Component 5, for additional civil works. 2. Revisions to the Results Framework: o Addition of a new corporate results PDO-level indicator (CRI) to retrofit the project to the Bank’s new corporate scorecard requirements. o Revisions to Intermediate Results Indicators (IRIs) to better capture the results of the interventions and adjust targets with the recent and proposed changes in the activities. Added New PDO indicators: 1. People with enhanced resilience to climate risks (CRI) (Number of people, disaggregated by Gender and Youth), Baseline: 0, Target: 4.530 million. 2. Community members benefiting from irrigation and storm water irrigation improvement (Number of people), Baseline: 0, Target: 250,000 New IRIs: 1. Flood hazard maps developed for river basins (Number), Baseline: 0, Target: 10 2. Regional observations and monitoring offices refurbished and equipped (Number), Baseline: 0, Target: 40 Revised IRIs: 1. Old: Government professionals trained for flood forecasting and early warning (Number), Baseline: 0, Target: 50. New: Government professionals trained on decision support systems, forecasting software, and impact- based forecasting. (Number), Baseline: 0, Target: 50. 2. Old: National flood forecasting center established (Yes/No). New: Operation centers modernized at IAs (Number), Baseline: 0, Target: 4. 3. Old: Disaster analytics and information center established (Yes/No). New: Decision support system established (Yes/No). 4. Old: Disaster and emergency preparedness plans developed by Grama Niladhari Divisions (GND, lowest level government administration) in Kelani Basin (Number), Baseline: 0, Target: 10. New: Disaster and emergency preparedness plans developed for Divisional Secretariats (Number), Baseline: 0, Target: 20. 5. Old: Detailed designs and studies for the construction of one upstream reservoir in Kelani River basin completed (Number), Baseline: 0, Target: 2. New: Detailed design for the construction of Wee Oya reservoir in Kelani River basin completed (Yes/No). 6. Old: Length of irrigation and storm-water infrastructure improved (Kilometers), Baseline: 0, Target: 15 11 CRes MPA Aide Memoire – May 2024 New: Length of irrigation and stormwater infrastructure improved (Kilometers), Baseline: 0, Target: 100 Dropped IRIs: 1. National hydromet data portal established (Yes/No). [related activities are ongoing, but outside of the project scope] 2. Community members benefiting from irrigation and storm-water irrigation improvement (Number). [IRI is moved to PDO level] 12 CRes MPA Aide Memoire – May 2024 Annex 4: Current Results Framework PDO Indicators by PDO Outcomes Improved warnings of high impact weather and hydrological hazards Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 1. People who can take 15,000.00 Dec/2021 15,000.00 15-Dec-2023 15,000.00 16-May-2024 3,500,000.00 Dec/2026 action to protect their lives, Comments on This indicator measures the increased accessibility to improved flood forecasting and livelihood and property achieving targets warning information that help citizens take necessary mitigation actions. based on early warnings (Number) Females who can take 7,650.00 Dec/2021 7,650.00 15-Dec-2023 7,650.00 16-May-2024 1,785,000.00 Dec/2026 action to protect their Comments on This indicator collects disaggregated information of indicator #1. lives, livelihood and achieving targets property based on early warnings (Number) 10.00 Feb/2019 10.00 15-Dec-2023 10.00 16-May-2024 66.00 Sept/2024 2. Improved performance Comments on This indicator measures the improved quality of early warning systems based on three of risk-based warning achieving targets elements: accuracy of estimated level of the impact, appropriateness of timing, and (Percentage) accuracy of targeted location. The indicator is evaluated based on the percentage translated from the scoring system defined (1-9) in the CONOPS. Improved Kelani Basin multi-purpose water infrastructure for climate resilience Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 3. People benefiting from 0.00 Dec/2021 0.00 15-Dec-2023 0.00 12-May-2024 1,000,000.00 Dec/2026 new Salinity Barrier Comments on This indicator measures the flood risk reduction benefit as number of people who are (Number) (Number) achieving targets protected from the risk in Kelani river basin. 13 CRes MPA Aide Memoire – May 2024 PrDO: Improved warnings and multi-purpose water infrastructure for climate resilience Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year PrDO Outcome 1: People 15,000.00 Dec/2021 15,000.00 15-Dec-2023 15,000.00 16-May-2024 3,500,000.00 Dec/2030 who can take action to Comments on Baseline has not changed, therefore, baseline is reported as actual. protect their lives, achieving targets livelihood and property based on early warnings (Number) PrDO Outcome 2: People 0.00 Dec/2021 0.00 15-Dec-2023 0.00 16-May-2024 1,800,000.00 Dec/2030 benefiting from multi- purpose water infrastructure for flood and climate resilience in Kelani River Basin (Number) (Number) PrDO Outcome 3: 0.00 Dec/2021 0.00 15-Dec-2023 0.00 16-May-2024 78,000,000.00 Dec/2030 Reduction in average annual flood damages in Kelani River Basin (Amount(USD)) Intermediate Results Indicators by Components Not Categorized Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 1. National hydromet data No Dec/2021 No 30-May-2023 No 16-May-2024 Yes Dec/2026 portal established Comments on This indicator will monitor the establishment status of the national hydromet data portal. (Yes/No) achieving targets 14 CRes MPA Aide Memoire – May 2024 0.00 Dec/2021 40.00 15-Dec-2023 40.00 16-May-2024 50.00 Dec/2026 Comments on This indicator will measure the number of government staff who received capacity 3. Government achieving targets building on the impact-based flood forecasting and early warnings. professionals trained for flood forecasting and early warning (Number) Two IBF training were conducted in January 2023 and May 2023 4. National flood No Dec/2021 No 15-Dec-2023 No 16-May-2024 Yes Dec/2026 forecasting center Comments on This indicator will measures the progress of establishment of National flood forecasting established (Yes/No) achieving targets center including construction of its building. 5. Disaster analytics and No Dec/2021 No 15-Dec-2023 No 16-May-2024 Yes Dec/2026 information center Comments on This indicator will measures the progress of establishment of Disaster analytics and established (Yes/No) achieving targets information center center including construction of its building. 0.00 Dec/2021 0.00 15-Dec-2023 0.00 16-May-2024 10.00 Dec/2026 6. Disaster and emergency Comments on This indicator will measure the level of citizen engagement through the development of preparedness plans achieving targets community disaster management plans with clear role of the communities. The plans will developed by Grama help communities to equip themselves with flood risk mitigation capacity leveraging Niladhari Divisions (GND, improved early warning information become available for the community . Therefore, lowest level government this activity will be started upon the completion of the forecasting early warning delivery administration) in Kelani system. This is a Beneficiary Feedback indicator which responds to the Bank's Citizen Basin (Number) Engagement approach. 0.00 Dec/2021 0.00 15-Dec-2023 0.00 16-May-2024 100.00 Dec/2026 8. Ambatale Salinity Barrier Comments on This indicator will measure the construction progress of salinity barrier with gated constructed (Percentage) achieving targets structure that will will enable smooth water discharge during the flood events. 9. Detailed designs and 0.00 Dec/2021 0.00 15-Dec-2023 0.00 16-May-2024 2.00 Dec/2025 studies for the construction Comments on This indicator will measure the progress of the design of upstream reservoirs that will of one upstream reservoir achieving targets increase the level of flood protection for Kelani river basin. in Kelani river basin (Number) 15 CRes MPA Aide Memoire – May 2024 12. Grievances addressed 0.00 Dec/2021 0.00 15-Dec-2023 100 16-May-2024 100.00 Dec/2026 (Percentage) Number of community 0.00 Jan/2023 1,235.00 15-Dec-2023 90000 16-May-2024 25,000.00 Dec/2023 members benefitting from Comments on While the indicator is "overachieved", this is due to inaccurate targets set which need to irrigation and storm-water achieving targets be revised. irrigation improvement activities (Number) Length of irrigation and 0.00 Feb/2023 0.42 15-Dec-2023 16 16-May-2024 15.00 Dec/2023 storm-water infrastructure Comments on While the indicator is "overachieved", this is due to inaccurate targets set which need to improved (Kilometers) achieving targets be revised. 16 CRes MPA Aide Memoire – May 2024 Annex 5: Financial Management (FM) Financial Management (FM) Performance: Financial management performance is rated as ‘satisfactory’, and the risk remains ‘moderate’ based on the review carried out during the mission. There are no outstanding audit reports or IUFRs as at mission date. It is noted that internal controls and systems are in place for budgeting, accounting, and financial reporting. FM Staffing: A full time FM specialist and four support staff have been appointed to the project. FM Specialist will manage and coordinate overall FM arrangements related to the Project and the project FM Manual has been developed by the PCT and shared with the WB. Detailed FM arrangements are reflected in the FM Manual. Budgeting: the fund requirement for the project will be budgeted with a separate budget line under the Ministry of Irrigation (MI) in the GoSL annual estimates. Mission notes that a budgetary allocation of LKR 6,966mn (FA) and LKR 153mn (CF) has been allocated for the year 2024. PCT informed the mission that the allocated budget will be adequate to meet the requirement of the year 2024. The availability of budgetary provision is essential to incur expenditure from the credit proceeds when the project continue to progress implementation. Disbursements, Fund Flow and Financial Reporting: the project operates a US dollar denominated Designated Account (DA) at the Central Bank of Sri Lanka. An advance of US$5.58mn has been disbursed to the DA of which US$2.4mn has been documented as expenditure in the system as at mission date. Submission of IUFRs is up to date and the next IUFR for the quarter ending June 30, 2024, is due by August 15, 2024. In addition, MI operates an LKR account at a state commercial bank to deposit funds from the DA to be utilized for eligible expenditure. Accounting System: It is required to implement a computerized accounting system which will facilitate the generation of accounting reports by budget classification/components and subcomponents for effective monitoring of expenditure. PCT informed the mission that the project has procured the “Busy� accounting software, which is acceptable to the Bank. The operationalizing of the system is in progress. Internal Audit: Project is subjected to internal audit. It is required as per the financing agreement of the project to hire an internal auditor not later than six (6) months after the effective date. The internal auditor for the project has been recruited, and internal reports up to December 31, 2023, have been shared with the Bank. The report for the quarter ended March 31, 2024, will be submitted before the due date of May 31, 2024. External audit. The annual financial statements of the project will be prepared by the PCT and audited by the National Audit Office of Sri Lanka. The external audit will cover project activities carried out by all agencies and all payments made from project funds. The external audit will be conducted every financial year, and the final audit report will be submitted to the World Bank within six months of the end of the financial year. First such audit report for the project for the FY22, was submitted with some delays and however, there were no FM or accountability issues observed by the AG in the FY22 audit. PCT informed that financial statements for the FY23 have been submitted to the Auditor General before the due date and it is expected to submit the audit report before the due date of June 30, 2024. Agreed Actions • PCT to operationalize FM software by May 31, 2024 • PCT to submit an Internal audit report for the Q1, 2024 by May 31, 2024 • PCT to submit the audit report for FY23 by June 30, 2024 17 CRes MPA Aide Memoire – May 2024 Annex 6: Environmental and Social Safeguards Compliance with the Bank’s Environmental Safeguard Policies and the Project’s Environmental Assessment and Management Framework (EAMF) has been downgraded to Moderately Unsatisfactory. This is predominantly due to the Mission’s assessment of safeguards implementation performance and lapses in monitoring of interventions under Component 5. Compliance with the World Bank’s Social Safeguard Policies remains Satisfactory as the project has been conducting consultations, engaging with citizens and stakeholders, establishing GRM systems including Grievance response committees, and has not involved activities causing land acquisition or impacting livelihoods. However, this may be downgraded if the ongoing irrigation works are not appropriately completed, or if proper mitigation measures are not put in place, potentially causing a delay in cultivation. The team has worked closely in planning activities of the Ambatale Salinity Barrier to provide input to further reduce impacts on site access and on individuals residing in the area of future works. The Bank team conducted field visits to several sites under implementation via Component 5. It was noted that site level implementation of the Environmental and Social Codes of Practice (ESCOPs) in most contracts were not up to the expected level of compliance. Issues on site management, debris management, public and occupational health and safety were noted from these sites. While these are small scale subprojects, if not stringently managed they can cause nuances to farmers and local communities, therefore the Mission reiterates the need for the ID as the key implementing agency to ensure compliance is improved. ESCOP implementation is backed with a provisional sum which allows NCB contractors and FOs/CBOs to maintain compliance by adequately financing the activities needed to maintain site management, public and occupational health, and safety. It was also noted that in NCB contracts, while the type of subproject was in line with what was agreed under Component 5, the scale and technical capacity of some contracts would warrant more stringent management from the environmental and social side. Therefore, the PCT has been asked to undertake a review of all NCB contracts to capture any that are of more complex nature and scale to ensure via variation strong safeguard management is introduced. In addition, due to the capacity and staffing constraints of the ID, monitoring requirements were simplified to an excel based sheet and photo documentation. The mission has reviewed two sets of district wise monitoring reports that have only included ad-hoc photographs and no information filled out, which prevents site issues and impacts from being rigorously identified. It was noted that the main issues include a combination of communication issues between the ID and PCT team as well as a lack of clear understanding of the nature of ESCOP implementation on the ground and the importance to adhere to monitoring requirements, further augmented with limited staffing to provide field level support to the ID. The mission discussed with the ID management team and the PCT on a rapid plan of action to be implemented to improve Compliance on Component 5. The PCT Senior Environmental Specialist (SES) will be responsible for ensuring the following measures are implemented in collaboration with the ID: i) Develop and implement a plan of trainings and visits (for the next 3 months) for all ID departments focusing on the ESCOP implementation and monitoring (The Bank Team has done a set of standard slides which the PCT has that can be used and translated as they require), by 17, May 2024 and the trainings should be completed by mid-June 2024. ii) Develop a guidance note (2-pager) explaining in local languages how to establish ESS monitoring and how to fill in the excel based monitoring sheet (e.g., how to take photos and how to answer Y/N questions), the first draft should be shared with the Bank Team by 25, May 2024 and iii) The PCT to publish and hire three environmental and social officers (ESOs) to support overall monitoring and reporting on a consultancy basis, a standard TOR for theses specialists should be submitted to the bank for review and concurrence by 25, May 2024. On Component 1, five Environmental and Social Screening Reports (ESRRs) have been shared over the last two months. The Bank team has reviewed these and the process of addressing initial comments is underway by the PCT. The updated ESSRs will be shared with the World Bank’s Regional Safeguards Advisor (RSA) for concurrence. The mission recommends that prior to the ESRRs being prepared it is essential to ensure all technical details on what the physical interventions will be on the associated civil works, preliminary designs and site plans are made available 18 CRes MPA Aide Memoire – May 2024 to ensure the ESRRs capture the requisite information clearly. It is also recommended that the PCT hires a specific ESO to assist the SES on the associated tasks on Component 1 and monitoring that will have to subsequently be carried out when the contractors are mobilized. On Component 2, implementation has been slow. The TOR for the update for the Environmental and Social Impact Assessment (ESIA) for the Ambatale Salinity Barrier has been upgraded with the current delivery timeline of the detailed design consultancy. During the mission, it was noted that the detailed design consultancy will result in significant changes in the design of the intervention. Therefore, the SES should revisit the TORs timeline in line with the agreed timeline in the Inception Report once it is approved by the ID and PCT, this should be completed before 30, June 2024. Once this is done the TOR should be submitted for clearance to the Bank Team. For the Wee Oya Reservoir, the first draft of the ESIA TOR should be prepared and submitted for Bank review with a timeline of the detailed design consultancy for Wee Oya by 15, June 2024. The ESS should carefully review the Strategic Environmental Assessment for the Kelani River Basin done under the CRIP project and the Pre-Feasibility study for Wee Oya when preparing the TOR. The Environmental and Social Tracking sheet should be updated with the timelines of these tasks and resubmitted by 1, June 2024. The Bank team also joined the consultation with the Central Environmental Authority (CEA) on the national Environmental Impact Assessment (EIA) process. While it was explored if the same ESIA being done for the Bank can be used by the CEA, they explained the challenges they face in line with their mandate to review an ESIA vs an EIA report on the scope of the TOR they issue. Thus, for Wee Oya and the Ambatale Salinity Barrier they confirmed that a separate EIA report should be submitted to the CEA for national concurrence. Therefore, the Bank team advised the PCT that while the reports will be separate deliverables, the process can be aligned as much as possible on content and robustness of analysis by hiring one consulting firm to provide two reports as deliverables via one aligned TOR. This method has already been incorporated to the Ambatale Salinity Barrier TOR. A focused PCT and Implementing Agency Safeguards and Environmental Assessment and Management Framework (EAMF) and Social Management Framework (SMF) process training was conducted during the Mission on 14, February 2024. Members of all IAs and the PCT attended the training with Q and A sessions built in. In addition, the PCT team will join a virtual Deep Dive Training on the World Bank’s Environmental and Social Framework focusing on Occupational Health and Safety, Involuntary Resettlement and Biodiversity Assessment, virtually May 21–22, 2024. Agreed Action Due Date Responsible Develop and implement a plan of trainings and visits (for the next 3 months) for 17 May 2024 PCT SES all ID departments focusing on the ESCOP implementation and monitoring. ESCOP trainings for all ID Divisions 15 June 2024 PCT Submit first draft of developed guidance note (2-pager) on ESCOP 25 May 2024 PCT SES Implementation and Monitoring. Circulate ESCOP Guidance Note to all ID Divisions 31 May 2024 PCT TOR for Environmental and Social Officers to be hired to PCT 25 May 2024 PCT SES Complete Hiring of 4 ESOs- 3 for Component 5 and 1 for Component 1 30 June 2024 PCT ESIA TOR for WEE OYA 30 June 2024 PCT SES Updated TOR for Ambatale Salinity Barrier ESIA update 15 June 2024 PCT SES Environmental and Social Tracking Sheet 1 June 2024 PCT SES Biannual Safeguards Monitoring Report for the whole project. (Report format 30 July 2024 PCT SES should be agreed with Bank Team Prior) 19 CRes MPA Aide Memoire – May 2024 Agreed Action Due Date Responsible Component 5 Monitoring Reports- Every 2 Months Next due 30 PCT SES June 2024 Social Safeguards: Staffing: Two officers have joined the Social and Resettlement (S&R) team, including a land officer, to conduct field-level consultations. These officers have begun individual consultations with affected parties. Establishing a field-level information center, staffed to facilitate future consultations and address grievances, is in progress and expected to be completed by the end of May. There is an urgent need to recruit a social officer at the PCT level as the current staffing level cannot adequately monitor various activities currently under implementation. Potential Livelihood Risk: Site visits observed and reported a risk that this season’s cultivation may be delayed if current irrigation works are not completed by the end of May. At another site completion of irrigation rehabilitation works was reported however the system has not yet installed gates. Without the needed gates the irrigation system cannot function which would impact farmers’ cultivation season. A delay in cultivation would result on impacting livelihoods of all farmers, families, and workers which rely on the irrigation system. If the irrigation systems are not functioning due to project activities, the project must consider how to address the resulting impacts on persons who depend on that irrigation system. One option may be that the irrigation department determine an alternate way in which farmers have access to irrigation and determine temporary gate options. The project will need to consider compensating all impacted persons for the loss of livelihood if farmers cannot access irrigation water thus forced to delay cultivation. Farmers Organization members have reported that the rehabilitation of the Jamburewela canal has delayed the paddy cultivation on 220 acres belonging to 71 farmers. The ID and the contractor have committed to completing the canal section by May 25th to enable water supply to the fields. However, there is no backup plan or alternative measures in place should the project fail to meet this deadline. The farmers' concern is that extended delays in cultivation could result in increased wild animal attacks, as neighboring fields will have completed their harvest cycles. Additionally, postponing the cropping cycle will result in damage to the harvest during the forthcoming rainy season. These impacts have the potential of directly impacting on the livelihoods of farmers, households, and workers who rely on the irrigation system. The Bank team noted that improvements to Vaikaladichenai anicut in the Unnichchai Scheme (Rugam Division) is limited to the main structure and does not include water control gates. While farmers have consented to operate the anicut using sandbags as a temporary measure, which places an extra burden on farmers despite the funds invested in the new structure. Labor Risks: Site visits also noted that works being implemented under Comp. 5 appear to be of a larger scale than proposed. Social impacts and risks include: 1) An influx of labor which needs to be mitigated to ensure local communities and residents are not negatively impacted, and 2) impact on road use, safety, and flow of traffic along roads adjacent to irrigation systems which are blocked by civil works equipment. It is recommended that the project: 1) determine number of local and non-local persons hired, 2) assess the risks and impacts of labor influx on neighboring communities, 3) implement mitigation measures to prevent negative impacts. 20 CRes MPA Aide Memoire – May 2024 Worker Safety Standards and Welfare: During recent site visits of ongoing projects, it was observed that basic worker health and safety requirements, such as sanitation and accommodation facilities, are not meeting acceptable standards. Grievance Redress Mechanism (GRM), Recording and Reporting: The WB team has observed that project and contact information are not displayed at civil works sites, especially in the Polonnaruwa ID division. It is recommended that informational boards be displayed at project sites which includes information on implementing agencies, relevant contact phone numbers, web sites, and email addresses, and information on the Grievance Redress Mechanism and associated contact information. Wee Oya Project: The PCT has stepped in to operationalize the agreed-upon GRM process under Component 2. The establishment and operation of GRCs at Grama Niladari (GN), Divisional Secretariat, District Secretariat and National levels have marked a significant milestone in the Salinity Barrier and Wee Oya projects which included presenting a GRM orientation program for Yatiyanthota’s Divisional Secretariat. Grievance recording registries have been established in GN and DS offices. The project has facilitated induction sessions for the GRCs with the involvement of the Bank team. Since the last mission, 17 cases have been reported, of which 16 were requests for information concerning the proposed development activities. The Project Coordination Team (PCT) reported one grievance related to the potential livelihood impact on an individual involved in sand mining. To date a total of 101 cases have been reported, of which 99 were requests for information while 2 cases were actual grievances associated with impacts on livelihoods which have been resolved. The PCT has conducted various consultation sessions for the community and key stakeholders. Salinity Barrier Project: The divisional-level GRC has been established and is operational, yet no grievances have been reported so far. PCT held an awareness session to inform the surrounding community about the proposed development needs upon their request. Component 5: Although PCT has provided initial guidance, formats, and instructions concerning the GRM process, Component 5 activities have not maintained not grievance registries at the site level. Even though there is no proper recording of the GRM and associated resolution actions, field-level grievances have been promptly addressed by the ID. WB site visits noted grievance resolution included slightly altering the scope of civil works in order to accommodate the public's complaints/grievances. It is suggested that implementing agencies receive proper training on maintaining a proper GRM registry, monitoring of GRM resolution measures, and reporting on status of GRM cases. Citizen Engagement Multiple consultations and awareness meetings have been conducted. To date, the PCT has conducted 70 consultation sessions with 1,385 individuals participating across all project components. These sessions have seen representation from community members, key stakeholders, and political authorities. Since the last mission, the PCT has held 38 consultation sessions involving 525 participants. This table shows all consultations conducted prior to previous mission, consultations conducted between previous mission and current mission, and the cumulative number of consultations undertaken to date. 21 CRes MPA Aide Memoire – May 2024 Due to the expected impacts that will be caused by Wee Oya, which includes physical relocation of households, the team has also conducted several door-to-door consultations to provide information to individual households. This table provides information on number of women and men that have been consulted during from January to May 2024. Number of Consultations Number of Number of (Jan – May 2024) Women Men Component 1: Regional Hydro-Met tSation, ID 6 4 22 Component 1: Meteorological Bldg 7 9 34 refurbishment Component 2.1: Ambatale Salinity Barrior 1 - 9 Component 2.2: Wee Oya Reservoir 21 179 194 Component 5: Repurposing sub-project 4 15 62 Site Visits: The Bank team conducted a field visit to several sites earmarked for rehabilitation under Component 1, which involves the refurbishment of Micrometeorology Regional Offices. This was done alongside officials from the Department of Micrometeorology (DOM) and PCT safeguards specialists. It was noted that all proposed rehabilitation and new construction projects must undergo thorough screening during the design phase to address various land-related issues, social concerns, health and safety risks, and to secure prior approvals and consents from relevant authorities. The project's target is to hire a qualified design consultant to plan the sub- projects under Component 1, ensuring that the Terms of Reference (TOR) also incorporate social considerations. PCT safeguard specialists, with the active involvement of DOM officials, have carried out preliminary screenings for the proposed Hydro Met Station Rehabilitation program. These screenings uncovered that the land designated for the Holombuwa Met Station re-construction is on privately owned land. However, the current location has been operating under a lease agreement for the past 25 years, and the owner has agreed to a new 30-year lease. The PCT’s S&R unit has initiated the consultation process and drafted the due diligence report. The 22 CRes MPA Aide Memoire – May 2024 World Bank recommends that the lease agreement ensures that the land, and associated re-constructed station, cannot be claimed by the land-owner prior to the end date of the lease. The earmarked land parcels for the proposed Hydro Met Station in Magura and Kalawellawa are presently allocated to the GoSL’s Road Development Authority (RDA). Following a request from the DoM, the land vesting process has commenced such that the RDA land will be handed over to DoM. The PCT S&R unit is diligently overseeing the land vesting process and the impacts related to the subprojects. The Bank team carried out field visits to multiple sites being developed under Component 5, accompanied by officials from the Irrigation Department (ID) and PCT safeguards specialists. It was observed that the adherence to the Environmental and Social Codes of Practice (ESCOPs) at the site level in most contracts did not meet the expected compliance standards. The team identified shortcomings in the initial environmental and social screenings, leading to an inadequate identification of potential impacts and risks, and consequently, effective mitigation measures were not established prior to the hiring of construction contractors. These oversights in the initial screenings have led to livelihood impacts, with no effective solutions integrated into the construction plans. Additionally, delays in subproject implementation were noted, attributable to the lack of initial screenings. Proper initial screenings could have prevented or lessened many of the implementation and livelihood issues by allowing for adjustments in the construction schedule and modifications to the scope of work. Agreed Action Due Date Responsible Complete the due diligence report for the Holombuwa Met June 30, 2024 DOM/ PCT S&RS Station construction, and prepare a legal lease agreement, ensuring the sustainability and security of the government’s investment. Categorize the information inquiries, currently logged as May 31,2024 PCT S&RS grievances, received by the PCT. (Information requests vs Complaints) Recruit a consultancy firm to conduct the social impact September 30, 2024 MI assessment for the proposed Wee Oya project. Develop and implement a plan of trainings and visits (for the May 17, 2024 PCT SES next 3 months) for all ID departments focusing on the ESCOP implementation and monitoring and the GRM process which includes registering, monitoring, and reporting GRM cases. ESCOP and GRM trainings for all ID Divisions June 15, 2024 PCT Streamline the GRM process with all ID Divisions (Awareness July 30, 2024 and PCT/ID creation, proper recording and handling grievances timely) continue Display subproject’s details and contact persons’ information, and Immediate ID GRM contact information at all project sites. Meet with construction contractor to ensure the completion of May 20, 2024 ID canal rehabilitation, specifically the Jamburewela canal in the Polonnaruwa ID division, to ensure access to irrigation system by May 25. Concurrently, devise and execute a contingency plan should the contractor fail to meet the agreed-upon deadline to ensure no delay in cultivation. 23 CRes MPA Aide Memoire – May 2024 Agreed Action Due Date Responsible Determine the time frame on gate installation and operation of Immediate ID/PCT Vaikaladichenai anicut in the Unnichchai Scheme, Rugam Division- Batticaloa to ensure no delay in cultivation. Contact Department of Archaeology, the chief priest of the nearby June 30, 2024 ID/ PCT SES Devala, and Divisional Secretary to obtain consent for the Rehabilitation of the Canal Bank in Orubendisiyabalawa (Elahera Irrigation Engineer division of Polonnaruwa Irrigation Department division). Maintain records related to the meeting minutes and approval process. Record and manage gender disaggregated database for Start immediate and PCT S&RE participants in consultation sessions. continue 24