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THE WORLD BANK GROUP
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Integrated Safeguards Data Sheet (Updated)
Date ISDS Prepared/Updated: 11/26/2002
Section I - Basic Information
A. Basic Project Data
Country: SRI LANKA                               Project ID: P058067
Project: Second Community Water Supply and Sanitation Task Team Leader: Toshiaki Keicho
Project
Authorized to Appraise Date: October 30, 2002     IBRD Amount ($m):
Bank Approval: April 17, 2003                    IDA Amount ($m): 33.70
Managing Unit: SASEI                              Sector: Central government administration (30%);
Lending Instrument: Specific Investment Loan (SIL)  Water supply (25%); Sanitation (25%); Media (20%)
Status: Lending                                  Theme: Pollution management and environmental
health (P); Other rural development (S);
Decentralization (S)
I.A.2. Project Objectives:
The Second Community Water Supply and Sanitation Project will support the Government of Sri Lanka's
(GOSL) Rural Water Supply and Sanitation (RWSS) sector program in the North Western and Central
Provinces. The Project Development Objective is to increase service coverage and achieve effective and
sustained use of water and sanitation services in rural communities in these provinces.
The above objectives will be achieved through:
(1) implementing demand-responsive and sustainable RWSS services, providing safe drinking water and
sanitation facilities in rural communities; and
(2) strengthening capacities of key stakeholders (central and local governments, communities, and
partner organizations) to deliver and manage sustainable water supply and sanitation services.
I.A.3. Project Description:
The total project cost is US$55 million, of which the Bank will finance US$33.7 million. The project will
currently cover the Central and North Western Provinces. The project components are described below:
ComponentA: Phiysical Investments (US$42.0M). The project will finance a share of the capital costs
for service improvements in water supply, wastewater drainage and on-site sanitation facilities.
Beneficiaries represented by community based organizations (CBOs) will be required to select an
affordable service level from a range of technical options and to manage and implement construction
works. In addition to contributing to capital costs, they will be fully responsible for operation and
maintenance of water supply and sanitation systems.



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Component B: Social Mobilization and Hygiene Education (US$2.5M). This component will finance
partner organizations (POs) to provide a package of assistance for community implementation of water
and sanitation works. POs will assist communities in forming CBOs and subsequently work with CBOs
to identify, plan, design, and implement water supply and sanitation schemes. To a lesser extent, they
will also assist Pradeshiya Sabhas (PSs) with subproject processing and supervision. POs will also
provide in-situ training and capacity building to CBOs to allow them to assume their project management
responsibilities, and to encourage effective use and maintenance of completed systems. This includes
health and environmental education to populations in participating communities to promote improved
hygiene and water related practices. Innovative hygiene education approaches will be developed in
partnership with the Bank-Netherlands Water Partnership (BNWP) who will co-finance this work.
Component C: Program Management and Capacity Building (US$5.5M). This component will
provide support to the GOSL and local governemnts for the implementation of the National RWSS
program. Activities that will be financed include:
(i)    Technical assistance and training to increase the capacity of implementing entities, including the
central RWSS Division, the RWSS Units at the Provincial Councils (PCs), the PSs, POs and
CBOs.
(ii)   Specialized studies and policy formulation, including strategies for refinement of the sectoral
institutional arrangements in small towns and the estate sector, improvement of monitoring and
evaluation of sector interventions, technical and financial audits, outcome-based evaluation of
progress on decentralization, and other policy reviews.
(iii)  Establishment of water quality testing regime, including water quality mapping of participating
provincial councils, independent testing of all beneficiary schemes, and provision of water
quality testing kits and other testing equipment to all participating PSs and relevant agencies.
(iv)  Incremental costs of proiect administration, including staff salaries, equipment and operating
costs.
Component D: Unallocated (US$5.OM). Finally, an unallocated fund has been established to allow for
the possibility of providing focused financing for rural water supply and sanitation schemes in another
Province. Should project activities expand into another Province, an assessment will be conducted in
order to establish whether any of the Bank's Safeguard Policies are applicable. If any of the Bank's
Safeguard Policies are triggered, the required documents will be prepared by the Borrow and sent to the
Bank for review, and clearance by SASES.
I.A.4. Project Location: (Geographic location, information about the key environmental and social
characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites
or critical natural habitats, or any other culturally or socially sensitive areas.)
The project area will be confined to rural villages and some small towns in the Central and North
Western Provinces, but the project activities may at some point be expanded to another Province. If
expansion is proposed, an assessment will be conducted in order to establish whether any of the Bank's
Safeguard Policies are applicable, and the resulting requirements met, prior to beginning activities in the
new Province. Due to the demand-responsive nature of the project, specific project sites have not been
identified yet. Therefore, the geographical details, i.e. the proximity to protected areas and natural
habitats, will be identified only during the sub-project planning stage. The sub-project environmental
framework will help avoid any works in or encroachment into environmentally or culturally sensitive
areas. Information on households within the village will be gathered as part of the village mapping
exercise during the participatory planning phase of water supply and sanitation facilities. This will help
to identify which households or groups within the village may be vulnerable, and ensure that their level



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of participation and inclusion are made a priority.
B. Chieck Environmental Classification: B (Partial Assessment)
Comments: The project is specifically designed to bring about positive health and environmental benefits
through supply of safe drinking water from sustainable sources and creation of sanitary conditions in rural
areas. As a result, the environmental and health conditions in the rural villages are expected to improve
considerably. However, minor negative impacts mainly related to water resource management and water
quality issues are likely, if appropriate mitigation strategies are not designed and implemented. For this
reason, the project has been classified as Category B, and the Sectoral Environmental Assessment has been
prepared.
C Safeguard Policies Triggered
Policy                               Applicability
Environmental Assessment (OP/BP/GP 4.01)                   * Yes C No
Forestry (OP/GP 4.36)                                      3 Yes * No
Natural Habitats (OP/BP 4.04)                              0 Yes * No
Safety of Dams (OP/BP 4.37)                                0 Yes * No
Pest Management (OP 4.09)                                  0 Yes * No
Involuntary Resettlement (OP/BP 4.12)                      0 Yes * No
Indigenous Peoples (OD 4.20)                               0 Yes * No
Cultural Property (OP 4.11)                                0 Yes 0 No
Projects in Disputed Territories (OP/BP/GP 7.60)*          0 Yes 0 No
Projects in International Waterways (OP/BP/GP 7.50)        0 Yes 0 No
*By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties'claims
on the disputed areas
Section II - Key Safeguard Issues and Their Management
D. Summary of Key Safeguard Issues. Please fill in all relevant questions. If information is not available,
describe steps to be taken to obtain necessary data.
II.D. I a. Describe any safeguard issues and impacts associated with the proposed project. Identify and
describe any potential large scale, significant and/or irreversible impacts.
In general, improvements to rural water supply and sanitation that lead to increased access to safe
drinking water, improvements in hygiene and sanitation and reduced bacterial contamination of water
sources due to controlled disposal of human wastes, are expected to generate positive health and
environmental impacts to communities. By promoting an integrated approach to water supply, sullage
drainage, sanitation, and hygiene education in each community, the project is expected to capitalize on
these potential benefits. A Project Implementation Manual has been developed to guide the
communities, non-govemmental organizations (NGOs), staff from the Provincial RWSS units, and
RWSS cells in the PS's on the precautions needed to maximize the positive and minimize the negative
health, social and environmental impacts of project interventions.
A Sectoral Environmental Assessment (SEA) for the Rural Water Supply and Sanitation Sector, prepared
by the RWSS Division of the Ministry Housing and Plantation Infrastructure identified two issues of
serious concem with implications for subproject implementation. First, growing competition for water
resources among domestic, agricultural, industrial and commercial users has resulted in substantial water
shortages in some areas of Sri Lanka, especially in the dry zones. Although rural water supply schemes
may not result in significant depletion of water resources, it is necessary to ensure that water resource



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management is addressed during the design stage of sub-projects. The GOSL has prepared a draft
National Water Resources Policy which will serve as a guideline for regulation of small scale water use
under the project. Community based enforcement of user sharing arrangements will be introduced to
beneficiary communities. Evidence from the International Development Association (IDA) financed
Energy Services Delivery Project has demonstrated that user sharing arrangements (for off-grid village
hydro power schemes) has been very effective, and this model will be replicated under the proposed
project. Watersheds will also be protected to ensure long term sustainability of water supply.
Community based watershed management initiatives will form part of the Environmental Management
Plans (EMPs) that will be developed and implemented by the beneficiary communities.
Secondly, apart from water scarcity, contamination of water resources through agricultural run-off,
fluoride contamination, improper disposal of sewage and solid waste, and industrial development has
contributed to a deterioration in the safety of traditional water sources. Therefore, water quality testing
and regular monitoring will be an integral part of sub-project development and implementation. It has
been agreed with the Ministry of Housing and Plantation Infrastructure that a phased approach will be
adopted to water quality testing. In the first phase, the National Water Supply and Drainage Board
(NWSDB) will be commissioned to undertake a water quality survey and mapping exercise in the
provinces where the project will be operational. Ground and surface water sources as well as a selection
of existing dug wells will be tested for physical and chemical parameters recommended for testing in
potable waters by the World Health Organization (WHO). In a second phase and based on the survey
data, potential pollutants will be identified for testing by the NWSDB when sub-project locations and
water sources are identified. In the final and third phase, the NWSDB will also provide training for
community members to undertake routine water sampling using simple, easy to use indicator test kits.
These test kits provide a quick positive/negative result. In the case of positive test results, water samples
will be collected by communities and transported to the nearest Regional NWSDB Water Testing
Laboratory for detailed analysis.
Other: Currently, wastewater management is not a significant issue, since in most cases piped water
(where available) is used solely for drinking purposes with insignificant levels of wastewater discharge.
Wastewater management may, however, become an issue with the provision of piped water to
communities under the project, as increased water use without adequate disposal facilities may cause
pollution, water logging, and mosquito breeding. To minimize this risk, the project will require the
inclusion of adequate measures for wastewater disposal as a pre-condition for provision of water supply
schemes, and will finance sullage drainage facilities to beneficiary communities, as needed. There is a
risk that water quality issues may arise from sullage disposal, source pollution, and potential
groundwater fecal contamination due to increased number of latrines. These issues will be studied in
each of the sub-project areas, and communities will be encouraged to develop their own solutions to
water resources and wastewater management, with technical guidance provided under the project. The
planning and design of sub-projects will also ensure that the location of latrines minimizes the risk of
pollution of aquifers and other water sources.
Haphazard disposal of garbage constitutes a potential source of surface and ground water pollution,
especially in small towns where garbage is often disposed in "open dumps" alongside water bodies.
Addressing the issue of solid waste management is beyond the scope of this project, but precautions will
be taken to include only small towns that do not dispose of garbage into or alongside water supply
sources, thereby ensuring source protection. Since improper solid waste disposal in participating rural
communities could result in adverse health impacts, the hygiene education component will include this
topic in its various activities. Moreover, the project will provide technical guidance to communities on
environmentally acceptable garbage disposal methods, including disposal at the household level in



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villages. Based on the experience of the first Community Water Supply and Sanitation Project
(CWSSP), there could be adverse environmental issues arising as a result of contamination of the spring
source during development and construction, but this has largely been temporary and confined to the
construction period. In addition, precautions will be taken to avoid excavation and pipe laying during
periods of heavy rain to minimize impacts from soil erosion.
OD 4.01 on Environmental Assessment: All sub-projects will be subject to an environmental analysis
based on the Framework contained in the SEA. The Operations Manual will contain a checklist of
potential environmental issues that will be evaluated at the subproject design stage. If substantial
environmental issues emerge during the initial analysis, a more detailed environmental analysis will be
undertaken by the RWSS Units in the (PCs).
OD 4.30 (OP 4.12) on Involuntary Resettlement does not apply since the project will not involve any
involuntary land acquisition. For both rural communities and small town schemes, all land required for
water supply installations (the source area for gravity schemes, land for storage tanks, wells, and
drainage) will either consist of government land free of claims, or of voluntary land donations. The
passage of underground distribution pipes through private land will require the permission by the owner.
The availability of such land will be a condition for participation in the project by a community or small
town, and its type and location will be described in the sub-project application. Where government land
is used for a sub-project, its availability will be certified by the PS. All voluntary donations will meet the
following criteria: (i) the land will be free of claims or encroachments; (ii) the ownership by the donor
will be verified by the local authorities, and (iii) the donated land will be vested in the community/CBO
through a deed of donation. In addition, in order to ensure that land contributions are truly voluntary, no
undue social pressure has been exerted on landowners, and that all related transactions have been
conducted in a transparent manner, the project will employ two mechanisms: (i) a Memorandum of
Understanding (MOU) between the landowner, the community/CBO, and the PS will be prepared and
signed before work can proceed; and (ii) as part of their semi-annual audit, the independent monitoring
agency will assess, on a sample basis, compliance with the principles of voluntary land donation. These
principles are in accordance with and acceptable under existing Sri Lankan law.
There is a potential for conflicting water use where sources identified for gravity schemes are already
used for other purposes. Potential sources for gravity schemes are as a rule located in upland forest areas
owned by the government, and utilization will require the consent of the Divisional Secretary. Where
potential sources are located in estates, they may be subject to prior use, and their utilization for water
supply will require the consent of the estate management. All potential sources for gravity schemes will
involve an assessment of multiple use, and flow measurements will establish whether a potential source
can accommodate both current use (e.g. for irrigation) and the planned utilization for drinking water
supply. Where multiple use can not be accommodated, the source will not be used. Where dry season
flows from a source limit the water available for multiple uses, the service hours for the piped drinking
water supply system will be limited to accommodate the earlier users (as was the practice in the first
CWSSP).
OD 4.20 on Indigenous Peoples does not apply since within the project target areas (the Central and
North Western Provinces) there are no indigenous people (i.e., Veddahs) meeting the criteria of OD 4.20.
Among the total Sri Lankan population of 19 million, there are only approximately 2,500 unassimilated
Veddahs, living in an area of Uva Province which borders the Eastern Province.
II.D. l b. Describe any potential cumulative impacts due to application of more than one safeguard policy or
due to multiple project component.



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Many of the project components will have a complimentary positive impact on the environment. For
example, community participation in identifying water supply sources, community based management of
water resources and monitoring of water quality will result in improved sustainability of water resources.
Identification of safe water supply sources, continuous water quality monitoring, provision of sanitary
facilities and hygiene education to rural communities will contribute to a reduction in water borne
diseases and lead to improved public health in the targeted communities. No cumulative adverse
environmental and/or social impacts are anticipated due to application of one or more safeguard policies.
II.D.1c Describe any potential long term impacts due to anticipated future activities in the project area.
No long-term impact from future activities is anticipated.
II.D.2. In light of 1, describe the proposed treatment of alternatives (if required)
Not required. The community consultation process to be adopted for the preparation of each sub-project
will explore alternative water supply sources and alternative technologies for water supply.
II.D.3. Describe arrangement for the borrower to address safeguard issues
The overall project design, which requires active community involvement in the planning,
implementation, and management of water supply and sanitation sub-projects, is the primary means of
ensuring that social and environmental safeguard issues are addressed. As part of the project design, the
borrower has developed and disclosed to the public (October 2002) Principles of Voluntary Land
Donation. The text of the MOU regarding Voluntary Land Donation will be drafted during the appraisal
mission, included in the Project Appraisal Document (PAD), and disclosed to the public prior to
Negotiations.
An electronic database has been established to monitor project performance and outcomes. Household
level data is being collected by the POs carrying out the information dissemination campaign. In
addition, the sub-project proposal format requires information to be provided on the existence of ethnic
minority groups in a community and their inclusion among beneficiaries of the sub-projects. These data,
together with data from the 2001 Census of Population and Housing, will establish a baseline for
subsequent internal project monitoring. The borrower has also developed a grievance redress
mechanism, to deal with all project related complaints, including voluntary land donations, competing
demands for water from scarce sources, and the exclusion of vulnerable or minority groups from access
to project benefits. This mechanism is enhanced by internal project monitoring and semi-annual audits
by an independent monitoring agency, which will include an assessment of the inclusion of vulnerable or
minority groups in community level planning and as project beneficiaries.
On the environment, all sub-projects wil be subject to an environmental analysis based on the
Framework contained in the SEA. The Operations Manual will contain a checklist of potential
environmental issues that will be evaluated at the subproject design stage. If substantial environmental
issues emerge during the initial analysis, a more detailed environmental analysis will be undertaken by
the RWSS Units in the PCs. For sub-projects without significant environmental issues, the checklist with
screening criteria and guidelines for mitigation measures will be followed as part of the community
development process. The sub-project proponent will be responsible for ensuring compliance with the
Environmental Analysis Framework and implementation of the Environmental Management Plan (EMP).
The EA information will be forwarded by the community to the Environmental Development Officer of
the Local Authority (LA) area (who is an employee of the Central Environmental Authority (CEA) and
located in the Divisional Secretariat in the respective LA areas) who will be primarily responsible for
review and clearance of the environmental analysis and subsequent monitoring of compliance. The
RWSS Division and the CEA main office will randomly monitor compliance and outcomes and refine



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strategies, as necessary. The same review and monitoring procedure will be followed for the detailed
environmental; analysis undertaken by the RWSS Units, with the CEA providing clearance and
undertaking monitoring.
Il.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on
safeguard policies, with an emphasis on potentially affected people.
The primary stakeholders are the residents of rural villages and small towns populations. As part of
project preparation, key stakeholders were consulted in November 1999 regarding their willingness to
pay for improved water supply services. In addition, a series of consultations with the PCs, PSs, NGOs
and other civil society organizations were undertaken from October 2000 to October 2002. Regarding
the development of an estate sector approach, consultations with estate stakeholders (relevent ministries,
plantation companies, plantation management, plantation workers, and NGOs, are ongoing including.
Plantation company case studies which will assist with pilot selection began at the end of October 2002.
Some examples of stakeholders consulted during preparation include:
Workshops with staff from the First CWSSP Project Management Unit to identify problems and
solutions regarding the inclusion of poor and/or marginalized groups;
Group discussions with selected CBOs in the three districts under the first CWSSP on issues related
to participation;
Discussions with NGOs involved in the First CWSSP on their role and assessment of the project; and
Workshops with plantation company management, labor unions, NGOs, and CBOs on the
development of an estate sector approach.
Consultations with NGOs and other civil society organizations will continue throughout the project
period, and are envisioned as an integral part of project implementation. These organizations will play a
key role in assisting CBOs and helping to ensure the participation of different community groups. In
addition, as part of the development and pilot implementation of the estate sector approach, NGOs, labor
unions, and estate worker cooperatives and committees will have a substantial role in monitoring and
evaluating the effectiveness of the approach.
Disclosure: The OD 4.30 (OP4.12) on Involuntary Resettlement does not apply since the project will not
involve any involuntary land acquisition. For both rural communities and small town schemes, all land
required for water supply installations will either consist of govemment land free of claims, or of
voluntary land donations. (See Sections II.D. Ia and II.D.3 above).
The OD 4.20 on Indigenous Peoples does not apply since within the project target areas (the Central and
North Westem Provinces) there are no indigenous people (i.e., Veddahs) meeting the criteria of OD 4.20.
(See Section II.D. l a above).
The RWSS Division has prepared and released to the public (October 2002) a document on the Principles
of Voluntary Land Donation. The documents have been made available in all three languages - English,
Singhalese, and Tamil - and can be reviewed by the public at the locations listed below:
RWSS Division, Ministry of Housing and Plantation Infrastructure;
Chief Secretary's Office, Central Provincial Council, Kandy;
Chief Secretary's Office, North Westem Provincial Council, Kurunegala;
Offices of the District Secretaries of Nuwara Eliya, Kurunegala, and Matale; and
Offices of the Pradeshiya Sabhas in the Districts of Nuwara Eliya, Kurunegala, and Matale.



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During appraisal, the text of the MOU regarding Voluntary Land Donation will be drafted during the
appraisal mission, included in the PAD, and disclosed to the public (at the locations listed above), in all
three languages, prior to Negotiations.
E. Safeguards Classiflcation. Category is determined by the highest impact in any policy. Or on basis of
cumulative impacts from multiple safeguards. Whenever an individual safeguard policy is triggered the
provisions of that policy apply.
[ ] SI. - Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks
in management of one or more safeguard areas
[X] S2. - One or more safeguard policies are triggered, but effects are limited in their impact and are
technically and institutionally manageable
[ ] S3. - No safeguard issues
[ ] SF. - Financial intermediary projects, social development funds, community driven development or
similar projects which require a safeguard framework or programmatic approach to address
safeguard issues.
F. Disclosure Requirements
Environmental Assessment/Analysis/Management Plan:         Expected      Actual
Date of receipt by the Bank                               8/30/2002      9/2/2002
Date of "in-country" disclosure                            10/1/2002     9/9/2002
Date of submission to InfoShop                             10/15/2002    10/28/2002
Date of distributing the Exec. Summary of the EA to the ED
(For category A projects)
Resettlement Action Plan/Framework:                        Expected      Actual
Date of receipt by the Bank
Date of "in-country" disclosure
Date of submission to InfoShop
Indigenous Peoples Development Plan/Framework:             Expected      Actual
Date of receipt by the Bank
Date of "in-country" disclosure
Date of submission to InfoShop
Pest Management Plan:                                      Expected      Actual
Date of receipt by the Bank
Date of "in-country" disclosure
Date of submission to InfoShop
Dam Safety Management Plan:                                Expected      Actual
Date of receipt by the Bank
Date of "in-country" disclosure
Date of submission to InfoShop
If in-country disclosure of any of the above documents is not expected, please explain why.
The SEA was disclosed to the public in the Provinces that will partcipate in the project as well as to the
general public through an advertisement in national newspapers where interested public could have
access to the SEA either at the Ministry of Housing and Plantation Infrastructure in Battramulla or in the
respective Provincial Councils.



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Signed and submitted by        Name                                         Date
Task Team Leader:             Toshiaki Keicho                               11/26/02
Project Safeguards Specialists 1:  Sumith Pilapitiya/Person/World Bank      11/26/02
Project Safeguards Specialists 2:  Samantha L. Forusz/Person/World Bank      11/26/02
Project Safeguards Specialists 3:
Approved by:                   Name                                         Date
Regional Safeguards Coordinator: L. Panneer Selvam                           11/26/02
Sector Manager/Director:       Sonia Hammam                                 11/26/02
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