INTEGRATED SAFEGUARDS DATA SHEET RESTRUCTURING STAGE Note: This ISDS will be considered effective only upon approval of the project restructuring Report No.: ISDSR21723 Date ISDS Prepared/Updated: 29-Apr-2017 I. BASIC INFORMATION 1. Basic Project Data Country: Sri Lanka Project ID: P122735 Project Name: Metro Colombo Urban Development Project (P122735) Task Team Leader(s): Yoonhee Kim, Shenhua Wang Estimated Board Date: 15-Mar-2012 Managing Unit: GSU12 Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 No (Rapid Response to Crises and Emergencies)? Project Financing Data (in USD Million) Total Project Cost: 320.60 Total Bank Financing: 213.00 Financing Gap: 0.00 Financing Source Amount Borrower 107.60 International Bank for Reconstruction and Development 213.00 Total 320.60 Environmental Category: A - Full Assessment Is this a Repeater project? No Is this a Transferred No project? 2. Current Project Development Objectives The project development objective (PDO) is to support the Borrower to (i) reduce flooding in the catchment of the Colombo Water Basin, and (ii) strengthen the capacity of local authorities in the Colombo Metropolitan Area (CMA) to rehabilitate, improve and maintain local infrastructure and services through selected demonstration investments. Proposed New PDO (from Restructuring Paper) PDO remains unchanged. 3. Project Description The three project Components are: Component 1: Flood and Drainage Management. This supports priority improvements to flood and drainage management infrastructure in the Colombo water basin, as well as the development of an integrated flood management system and complementary interventions to enhance the economic value and aesthetic qualities of the water bodies. Sub-Component 1.1 Enhancement of drainage capacity in Colombo water basin including enhancement of runoff from the southeastern upper section of the basin, creation of lakes/retention areas in the central section of the basin, removal of bottlenecks in the downstream reaches of the canals, improvement of the outflow capacity and improvement/ construction of canal bank protections. Sub-Component 1.2 Rehabilitation and upgrading of the micro-drainage systems in priority flood prone areas under the jurisdiction of the Colombo Municipal Council. Sub-Component 1.3 Development of an integrated flood management system for the Colombo water basin, including carrying out selected investments to improve public usability of canals and lakes and acquisition of maintenance machinery. Sub-Component 1.4 Rehabilitation and construction of embankments and developing a linear park along a selected segment of Beria Lake, and establishing a natural park around degraded wetlands in Beddagana. Component 2: Urban development, infrastructure rehabilitation, and capacity building for Metro Colombo local and central authorities. This component aims to (i) support local authorities in the CMA to rehabilitate and manage their streets and drainage infrastructure, and improve local public facilities, solid waste collection, and other urban services, and (ii) strengthen strategic planning processes at the metropolitan level. Sub-Component 2.1 Enhancing the capacity of the PLAs to deliver sustainable, high quality local services and to coordinate delivery of services at the metropolitan level through implementing select high-priority infrastructure improvements in areas within the jurisdiction of the PLAs, including rehabilitation and improvement of drainage and roads, upgrading of local public facilities, and acquisition of equipment to improve local public services. Sub-Component 2.2 (i) Strengthening the capacity of the PLAs in the areas of road asset management, development and implementation of technical standards, preparation of road rehabilitation and maintenance works (including quality control), solid waste collection and management; and the operation of an integrated metro-level geographic information system platform and (ii) Supporting metropolitan development strategies and planning, including preparation of a city development strategy for the Colombo metropolitan region, an integrated master plan and a solid waste management feasibility study and action plan for the CMA. Component 3: Implementation Support. Strengthening the capacity of the Borrower to carry out Project activities, including (i) provision of technical support and training to the PMU in the areas of project management, monitoring and evaluation, procurement, financial management, and environmental and social safeguards; (ii) public awareness and communications support regarding Project interventions, public expectation, behavior changes and resettlement; (iii) provision of technical support to the SLLRDC, UDA, and the PLAs in construction, supervision and compliance with environmental and social safeguards; (iv) acquisition of vehicles, office furniture and IT equipment for the PMU. Project Restructuring. The proposed project restructuring includes: (i) extend the Project’s closing date by thirty months from December 31, 2017 to June 30, 2020; (ii) include support for a proposed emergency solid waste management project following the April collapse of the Meethotamulla dump site; (iii) change in implementing agency in line with the changes resulting from the August 2015 elections which created the Ministry of Megapolis & Western Development; (iv) revise the Results Framework accordingly; (v) change the project description in the Loan Agreement; and (iv) change the disbursement projections to realign the project. The revised ISDS addresses changes made to the Project as a result of the inclusion of SWM and subsequent project restructuring, including the addendum to the EMF and SMFs. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) Project activities with respect to flood control, drainage and waterfront management will be implemented in the Colombo Metropolitan Area which comprises of the Colombo Municipal Council and the peripheral local authorities. The support to Local Authorities sub-component will be implemented in the local authorities of Colombo Municipal Council (CMC), Sri Jayawardenapura Kotte Municipal Council (SJKMC), Dehiwala Mount Lavinia Municipal Council (DMLMC) and Kolonnawa Urban Council (KUC). The stabilization and closure work of the Meethotamulla dump site will be conducted within the existing footprint of the closed dump site, which is isolated from the surrounding area and on Urban Development Authority land. The Meethotamulla dumpsite is in the KUC area in Colombo. 5. Environmental and Social Safeguards Specialists on the Team Bandita Sijapati (GSU06 ) Nadeera Rajapakse (GEN06 ) Mokshana Wijeyeratne (GEN06) 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/BP 4.01 Yes Environmental Assessment (OP/BP 4.01) was triggered as the project supports flood and drainage improvement and municipal infrastructure upgrading work that will involve medium/large scale earth work, civil construction work, road re- surfacing, dredging, pond creation, canal rehabilitation etc. The policy will remain triggered for the restructuring and the existing Environmental Management Framework (EMF) will remain applicable for the remaining period of the project as the project interventions under this purview will continue. As a Category A project, the project has a strong EMF which is under implementation. While the document includes guidance on soft interventions with regards to SWM it does not provide guidance on the management of impacts in relation to physical interventions for SWM implementation. No additional safeguards policies will need to be triggered as per these interventions. Based on the project interventions proposed, which will be predominantly environmentally beneficial as the activities focus on mitigating environmental risks associated with the dump site, the focus will be on mitigating potential risks associated with worker and public health and safety, sourcing, transport and storage of material for the ET covering process as well as other construction phase impacts associated to the physical interventions indicated in the previous section. The client has prepared an Addendum to the exiting EMF focused solely on the Environmental Closure of the Meethotamulla dumpsite. The addendum includes a baseline assessment, identification of risks and proposed mitigatory actions, including an Environmental Management Plan based on the World Bank Group’s General and SWM Sectoral Environmental Health and Safety Guidelines and international best practice in relation to the proposed activities, implementation arrangements and short and long term monitoring requirements. The addendum to the EMF has been disclosed both by the client and the Bank. Natural Habitats OP/BP 4.04 No The policy will remain untriggered as the project will not involve the significant conversion or working in close proximity to critical natural habitats and protected areas. Forests OP/BP 4.36 No No activities in forests or in close proximity to forest areas are expected. The policy remains untriggered. Pest Management OP 4.09 No Not Applicable as no project interventions are made where significant use of pesticides and other such substances are utilized. Physical Cultural Resources OP/BP 4.11 Yes Physical and Cultural Resources (OP/BP4.11) will remain triggered as the project proposed to upgrade and restore the historic flood management structures at the end section of the Colombo Water Basin, around the Beira Lake system. Measures focused on PCR management and procedures on safeguard chance finds have been included as part of the measures taken under Environmental Assessment OP/BP 4.01 in the EMF. Indigenous Peoples OP/BP 4.10 No There is no conclusive evidence/information available that establishes the presence of indigenous people in the project area. Involuntary Resettlement OP/BP 4.12 Yes Involuntary Resettlement OP/BP 4.12 will remain triggered. The World Bank’s OP 4.12 on Involuntary Resettlement, and the GoSL’s policies on land acquisition and resettlement, namely the Land Acquisition Act No 9 of 1950, Land Acquisition Regulations of 2008, and the National Involuntary Resettlement Policy (NIRP) will be used to guide the preparation and implementation of the Social Management Plan (SMP) or if required, the Abbreviated Resettlement Action Plan (ARAP) developed for Meethotamulla. Safety of Dams OP/BP 4.37 No There will be no project interventions focused on dams or rehabilitation of existing dams, therefore the policy will remain untriggered. Projects on International Waterways OP/BP No The proposed project activities do not 7.50 have any impacts on international waterways and therefore this policy is not triggered. Projects in Disputed Areas OP/BP 7.60 No There are no disputed areas in Sri Lanka and therefore this policy is not triggered. II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts: The project triggered three safeguard policies as indicated above- OP 4.01: Environmental assessment, OP 4.11: Physical Cultural proprieties and OP 4.12: Involuntary Resettlement. OP/BP 4.10 has not been triggered based on Social Assessment results. Environment: Solid waste management (SWM) and water quality improvement in waterways in the Metro Colombo area are two key complementary challenges linked to the project with implications on the sustainability of project outcomes in the long-term. Haphazard disposal of garbage in the city that gets washed into waterways and informal disposal of sewage are the main reasons contributing to poor drainage and poor water quality in the city's canals and drains. The poor state of SWM in the country reflects chronic underinvestment with regards to operations and maintenance and appropriate technologies, inadequate information and community education and lack of environmentally acceptable disposal facilities. While solutions to these challenges go beyond the scope of the MCUDP, the Project will benefit from ongoing initiatives by the Solid Waste Management Center at the Ministry of Local Authorities and Provincial Councils and by parallel programs by the Ministry of Environment. The project will complement these on-going efforts by specifically investing in selected physical interventions to help (i) improve the operational efficiency of waste collection in the project area and (ii) intercept sewer discharges to Beira Lake, which are a main source of pollution to the nutrient rich lake. The project will also support feasibility studies to find practical and economical solutions for the treatment and disposal of municipal waste and sewerage which will pave the way for potential follow-on projects on solid waste and sewerage management in the Metro Colombo area. The Addendum to the EMF focuses on the Environmental Closure of the Meethotamulla dumpsite. Steps towards the closure of Meethotamulla pursue the following objectives: Stabilization of the waste mound; Minimization the risk of fires; Prevention of people and animals from scavenging; Control of infiltration of rainwater/surface water and thus reducing leachate generation; Control of odor and gas migration; Reduction of waste exposure to wind and vectors; The in-place closure cap system will serve as a growth medium for vegetation and, also support suitable post-closure passive end-use activities in the future. Thus, via project activities, the existing environmental impacts on site will be mitigated. Impacts associated with the sub-project will be mostly focused during the reclamation works and application of the cover, including the need for large quantities of material for earth works and worker health and safety that needs to be stringently managed during the closure works. The proposed project interventions have and will generate many positive environmental and public health impacts through improved flood/drainage management and local services in the Colombo metropolitan area. Achieving the desired outcomes and sustaining them in the long-term will depend upon how the project addresses environmental risks and challenges when planning and implementing sub-projects, which have been the focus of the safeguards documents prepared hitherto and include: an (i) Environmental Management Framework (EMF) to which an addendum has been made capturing the proposed expanded work scope under restructuring, (ii) Environmental Assessment (EA) and (iii) environmental screening reports to supplement the EA As revealed by the safeguards assessments and screening carried out so far, the environmental footprint of a majority of investments are associated with construction impacts that include air pollution, noise, debris disposal, public safety, inconvenience, restricted access, traffic congestion, removal of vegetation in the work sites, extraction of construction material, etc. which would be localized and temporary in nature and mitigatable with good construction, housekeeping, public safety and debris disposal practices. Currently, the water quality in the canal network show high levels of pollution, especially in the lower part of the basin which is slow-flowing and receives a considerable load of wastewater and sewage from domestic and commercial establishments. Therefore, impacts on water quality from canal rehabilitation work will be insignificant and temporary. Since drainage and wastewater discharge are the main functions of the canal network there will be no impacts resulting from restriction on other uses due to construction work. Improving water quality in the rehabilitated canals and waterways will be considered part of the overall canal rehabilitation. However, given the nature of technical, regulatory and institutional intervention and co-ordination required to address the issue in its entirety, the project will only be able to provide support on a demonstration scale (e.g. sewer collector line to capture informal sewerage discharges in the Beira Lake, improved solid waste collection at municipal level) that would trigger longer-term water quality maintenance activities by the implementing agencies. The terrain of the project area being flat, there will be no major concerns of soil erosion and sedimentation. Of the project sites, the only ecologically important areas are the remaining wetlands in the Colombo basin, which at present exists as several blocks of inter-connected marshes covering an area of approximately 286 ha. Protecting these wetlands from further shrinking has been identified as an absolute priority for effective flood management within the city and its suburbs. In addition to flood detention, the wetlands offer great potential for nature conservation, recreation, and education which the project seeks to optimize through investments such as the Beddagana and Kotte Ramparts park. Other parts of the basin are highly modified and urbanized and as such, there will be no serious ecological impacts. As part of improving the macro-drainage network in the Colombo basin, dredging have been undertaken in selected canals and lakes to increase the water conveyance and storage capacity. This could give rise to the most potentially significant adverse environmental impact under the project in case it is determined that the dredge material is contaminated with hazardous chemicals. Haphazard disposal of potentially contaminated dredge material can lead to many irreversible environmental and public health risks, and as such the project have adopted a cautious approach and undertaken adequate assessment of sediment quality prior to the commencement of dredging activities. Given the level of urban/industrial activity, the risk of pollution by hazardous elements could particularly be relevant in lake/canal sediments in the lower part of the Colombo basin while the risk of contamination should diminish from lower to upper catchment areas. In addition, the periodic cleaning and desilting carried out by the Sri Lanka Land Reclamation and Development Corporation (SLLRDC) and Colombo Municipality Council (CMC) on the main/secondary canal network and the storm water drainage system reduces the likelihood of sediment contamination resulting from long-term accumulation of chemical substances in these waterways. Social: Under the proposed restructuring, the proposed project interventions for the stabilization and closure of Meethotamulla are envisaged to be socially beneficial with its focus on mitigating safety risks associated with further collapse of the dump site, reducing the potential for infectious diseases and other hazards, improving the quality of living for communities, reducing public health risks, and availing the area for reuse for commercial and recreational purposes in the future. As per the conceptual proposal, the stabilization and closure is expected to follow the ‘in-place reclamation’ approach with construction works limited to the existing footprint of the dumpsite, and the existing entry/exist points used for the access. Thus, the need for additional land taking is envisaged to be minimal, if any. The in-place closure cap system is currently envisaged to serve as a growth medium for vegetation and, also support suitable post-closure passive end-use activities such as a park. However, there are other potential risks associated with acquisition of private land following the waste spillage that has occurred in the aftermath of the collapse; possible permanent and/or temporary relocation of private houses and other establishments for site preparation; worker and public health and safety risks especially during sourcing, transport and storage of material for the covering process; localized and temporary impacts relating to access and mobility; livelihoods impacts on waste collectors, recyclers and scavengers; and construction phase impacts, remain. The nature and scope of the precise impacts can only be ascertained after the exact design of the engineering work at the site has been determined, and the social assessment conducted. The key social issues associated with this Project, including after restructuring which are addressed in the Social Management Framework and the Addendum to the Social Management Framework are: (i) assessing and mitigating social safeguard risks due to land acquisition (LA) and involuntary resettlement (OP/BP 4.12) and likely impact on physical and cultural resources (OP/BP 4.11); (ii) promoting social inclusion and accountability to enhance the implementation quality and outcomes; (iii) sustainable self-management of the multi-story resettlement buildings and sites with effective and affordable estate management arrangements; (iv) assessing and managing social issues and concerns relating to solid waste management interventions. The Project includes flood control measures which may involve minimal land acquisition and some involuntary resettlement impacts. However, the majority of the works, chiefly improvement of existing infrastructure such as canals, micro/storm drainage, streets, recreation areas, and similar works will have only temporary impacts relating to access, mobility, health, and safety. The key social risks and issues identified for the project are associated with: (i) mitigating potential involuntary resettlement (OP/BP 4.12) and any adverse impacts on physical and cultural resources (OP/BP 4.11), (ii) promoting social inclusion and accountability, and (iii) supporting sustainable management for resettlement sites developed to re-house displaced households. In fact, it is estimated that about 1,500 squatter households living in underserved settlements (USSs) along the Beira Lake and canal banks will be relocated to permanent housing. In addition, the Project authorities will resettle some 200 squatter families earlier living on government plots identified for the construction of resettlement sites. Key social risks and impacts associated with the activities have involved private land acquisition required for infrastructure works and the resettlement of vulnerable households living in informal settlements on low-lying lands, as part of the flood and drainage management investments under Component 1. A few works proposed by the participating Local Authorities under Component 2 have involved involuntary resettlement impacts on account of land acquisition or resumption of occupied public lands in the Metro Colombo area. Land acquisition is now nearly complete for all sub-projects and have affected residences and businesses in the area, especially those located in low lying areas, community facilities and physical and cultural properties. The long-term impacts of relocation of people from the low lying areas are expected to be positive. The positive impacts identified in the Social Assessment are: prevention of loss of assets and economic activities due to flood risks, avoidance of public inconvenience due to reduction in water logging in some residential areas, improved mobility for the city dwellers due to rehabilitation of walkability infrastructure, provision of formal ownership of house for squatters likely to be affected by the project, social recognition and security associated with formal tenure, improvement in living conditions in new condominiums, integration of the younger generation in the middleclass mainstream of the capital region, enhanced credit-worthiness, and poverty alleviation. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: Environment: The anticipated future activities would be very similar to current activities proposed to be carried out by this project and related to urban upgrading, disaster management, improvement to urban transportation, etc. As such, the net cumulative impact from better urban planning and disaster risk mitigation is expected to be positive. The negative environmental impacts from these anticipated future activities will be similar to this project and could be mitigated with early planning and implementation of appropriate mitigation measures. Social: The anticipated future activities will be mostly related to maintenance of infrastructure created by this project. Expansion of activities of similar nature as proposed in this Project may involve long term impacts including temporary impacts as in case of Stage-I investments and permanent impacts as in case of Stage-II activities. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. The project implementation timeline has been prepared to allow adequate time for the preparation of sub-projects that may trigger adverse impact, so that the necessary investigations, alternative analysis and mitigation can be planned and completed in support of project implementation. Some of the other measures taken to avoid or minimize adverse environmental and social impacts include (i) use of the existing right of way in case of rehabilitation/upgrading existing infrastructure; (ii) avoidance of design alternatives that may affect heavily built up areas; and (iii) works along existing canal and drainage paths with required section corrections. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. Project Restructuring EMF and SMF Addendums: An Addendum to the project’s EMF has been prepared by the borrower that includes an assessment of the likely environmental impacts of the proposed scientific closure of the Meethotamulla open dumpsite and mitigation strategies to be adopted. The Addendum also carries an EMP prepared based on the conceptual plan and rehabilitation methodology, which will be updated and finalized once detail designs have been developed. The addendum carries comprehensive guidelines focused on the environmental closure works. The addendum includes a baseline assessment, identification of risks and proposed mitigatory actions, including an Environmental Management Plan based on the World Bank Group’s General and SWM Sectoral Environmental Health and Safety Guidelines and international best practice in relation to the proposed activities, implementation arrangements and short and long term monitoring requirements. Under the current restructuring, the client has prepared an addendum to the Social Management Framework (SMF). The objective of the addendum is to provide guidance for the successful implementation of social safeguards issues during the stabilization and closure of Meethotomulla dump site to be supported immediately under the proposed project restructuring of MCUDP. Specifically, the addendum is intended to ensure sufficient guidance to the implementation of social safeguards within the context of the possible interventions at Meetotamulla to close the dump site. Additionally, a comprehensive social assessment of the entire value chain of the municipal waste, including the closure of Meethotamulla dumpsite, will be undertaken to evaluate the project’s potential positive and adverse social impacts, and provide inputs on preparation of site specific social impacts management plans, including resettlement action plans, if required. Environmental: Sri Lanka has a comprehensive regulatory framework for the protection of its environment and natural resources. By and large, it is consistent with the safeguards polices of the World Bank. Under the NEA, the country’s basic national decree for environmental management, all development projects that fall into prescribed categories are required to go through a comprehensive environmental screening and mitigation planning process (EIA or IEE). The Central Environmental Authority (CEA), which is the country’s key environmental regulatory agency, has demonstrated technical expertise and a good track record of evaluating environmental impact assessments. It was determined that the NEA will not apply to the list of 8 sub-projects which are ready for implementation at project onset and is unlikely to apply to any of the sub-projects in the pipeline. As such, the safeguards assessment and documentation carried out at project approval so far meets primarily the requirements of OP/BP 4.01. In the event NEA becomes applicable for projects in the pipeline, EIA requirements under the NEA and OP 4.01 will be harmonized. Although the CEA will be little involved in the approval of sub-project, as a member of the project Steering Committee its expertise and guidance is expected to be available. Furthermore, some of the key stakeholders of the project such as the Urban Development Authority, Colombo Municipal Council have experience in EIA related work required by GoSL regulations as well as those of multi-national donors. Implementation Arrangements: The main responsibility of ensuring compliance with environmental safeguards requirements of the project is borne by the PMU which is supported by a full-time environmental specialist who is suitably qualified and experienced in managing urban environmental issues. Among its key tasks, the PMU is responsible for providing the overall policy direction, technical assistance, review and endorsement of screening reports, environmental assessment and management plans, capacity building for effective safeguards management to the implementing agencies, monitoring of environmental compliance and progress reporting to the World Bank. In addition, the SLLRDC, UDA, CMC and the 3 local authorities have appointed an Environmental Officer as the nodal point directly responsible for the day-today implementation and monitoring of the safeguards at the agency level. While the SLLRDC and the UDA are regularly staffed with Environmental Officers and the project is expected to benefit from the available expertise, Environmental Officers have been appointed to assist the CMC and the other local authorities. They are primarily responsible for sub-project screening, preparation of environmental assessments/plans, ensuring EMPs are reflected in bid documents, implementation of EMPs at the site level together with site engineer and the Environmental focal point of the contractor and progress reporting to the PMU. In order to ensure safeguard procedures, instruments and monitoring needs of the MCUDP are well understood by its implementing partners, the capacity of PMU and project units in the partner agency were strengthened with resources available under the institutional capacity component. The PMU has hired consultants to aid the implementing agencies in carrying out sub-project specific screening for the first 5 sub-projects under each agency. The respective environmental officers of each agency worked closely with the consultants in order to receive an on-the-job training. The technical assistance thus provided ensured the necessary understanding, standards and capacity within the agencies to carry out screening for subsequent sub-project independently. Where stand-alone Environmental Assessments and Management Plans are required as screening outcomes, the PMU have hired independent consultants. All screening reports, EAs and EMPs will be prior reviewed and cleared by the PMU. In addition, screening reports, EAs and EMPs for all Category A type of sub-projects and a sample of Category B type sub-projects will be prior reviewed by the World Bank. For contracts such as dredging in sites proven to be contaminated and for the subsequent disposal of such dredged material, the PMU hired specialist services who will prepare disposal plans, carry out additional sampling (if needed) and site monitoring, conduct awareness for implementing agencies and contractors of disposal plan, monitor compliance and ensure control measures are adequately implemented. The project has also explored the possibility of building long-term capacity, especially within the participating local authorities, on the management of urban environmental issues, with a focus on solid waste management and environmental monitoring, through training programs and procurement of necessary equipment. Environmental Monitoring: The MCUDP will focus strongly on effective environmental monitoring. While day-to-day monitoring will be largely confined to compliance monitoring based on a monitoring checklist and is expected to take place through regular site supervision by the responsible officers, monitoring of environmental parameters (such as air, water, salinity, sediment quality, etc.) will be conducted based on the requirements specified in the EMPs. Most importantly, the project will support independent environmental audits on an annual basis throughout project implementation. Project Restructuring: There have been various challenges in implementing environmental safeguards under the project including ones that stem from inadequate staff capacity, however, procedures stipulated in the EMF have largely been complied with. Currently the PMU has an Environmental Specialist and two Environmental Officers supporting the remaining program. While the current capacity of the PMU is assessed to be adequate to provide safeguards support to the remaining works under MCUDP, it would be necessary to enhance the capacity to support the extended scope of work after restructuring. This is especially important given rehabilitation of an open dump site will require specialized expertise and understanding of the nature of safeguards risks. The capacity assessment conducted deduced that specific expertise on Environmental Engineering and Solid Waste Management does not exist within the current PMU to manage the interventions that will be specific to these specific sectors and require sound technical expertise. Thus, additional capacity will be brought in the form of a consultant Environmental Engineer, assignment to work in parallel to the existing PMU Environmental Specialist and team. Social: Policy and Regulatory Environment: The Government of Sri Lanka (GoSL) has a well- developed Land Acquisition (LA) Act with latest administrative regulation of 2008 and a National Involuntary Resettlement Policy (NIRP, 2001) to deal with land acquisition and involuntary resettlement risks. The NIRP (2001) provides for payment of compensation at replacement cost along with adequate resettlement and rehabilitation benefits. The LA Regulation of 2008 provides detailed guidelines for calculating land and structure value at replacement cost and current market value and compensation for damage and injurious affection as well as associated expenditures to the affected people. The government has managed several projects involving LA and IR applying safeguards policies acceptable to external donors such as ADB, JICA, and IDA/IBRD. The capacity and experience of application safeguard legislations and policies have been diverse across projects including some widely acknowledged best practices such as in case of the Lunawwa Project and the Southern Highway Project. Workshops on urban resettlement have been organized over the course of project preparation for the PMU and the stakeholder agencies to strengthen their understanding of social safeguards issues and build their capacity for safeguards management. The stabilization and closure of the Meethotamulla dump site does not require triggering additional World Bank’s operational policies. As per the Social Management Framework (SMF) developed for the MCUDP, the World Bank’s OP 4.12 on Involuntary Resettlement, and the GoSL’s policies on land acquisition and resettlement, namely the Land Acquisition Act No 9 of 1950, Land Acquisition Regulations of 2008, and the National Involuntary Resettlement Policy (NIRP) will be used to guide the preparation and implementation of the Social Management Plan (SMP) or if required, the 1 Abbreviated Resettlement Action Plan (ARAP) developed for Meethotamulla. There are also provisions for providing compensation and resettlement and rehabilitation assistance under the Land Acquisition and Payment of Compensation Regulations, 2013 that designated MCUDP as a ‘specified project’ to establish LARC system. The MCUDP can also provide resettlement assistance via Entitlement Assessment Committee (EAC) to mitigate non-land acquisition related resettlement impacts for persons affected by the project. Additionally, an addendum to the SMF has been prepared for Meethotamulla to provide guidance to the implementation of social safeguards within the context of interventions at Meetotamulla to close the dump site which among others could include livelihood impacts, particularly on vulnerable groups like the scavengers, rag pickers, informal recyclers, etc. Social Management Framework: The Social Management Framework was prepared with sample field survey and a two-stage consultations with the stakeholders including the people likely to be affected. The SMF was finalized through community, technical stakeholder, public consultation and 1 The likelihood of more than 200 people being affected by the stabilization, closure and reclamation of the dumpsite is not expected thus the need to prepare a full Resettlement Action Plan (RAP) is not deemed necessary. with the government approval and disclosed. The SMF sets out principles and procedures for: (i) social screening and IR impact survey; (ii) procedure for preparing and implementing RAPs; (iii) legal framework; (iv) entitlement matrix; (v) framework for stakeholder consultation and community participation including of NGOs; and (vi) implementation arrangements (for paying compensation and assistance, relocation and post-resettlement support, grievance resolution, coordination of LA and R&R with civil work, monitoring and evaluation and indicative budget). The SMF also provides guidelines for promoting social accountability/demand side governance measures in the implementation process. The Entitlement Matrix provides the following entitlements: compensation at replacement cost for land and structures, alternative houses to the displaced squatters, shops on lease to relocated commercial units, rental allowance to the tenants, income restoration assistance to shops, property owners, and residences losing employment or income, reconstruction of affected community facilities and mitigation measures for temporary impacts. Gender considerations have been taken into account both at the general level of project design and specifically embedded in the proposed in the SMF. In particular, both women and children are expected to greatly benefit particularly from subprojects of urban scale implemented in the CMC and other local authorities aimed to deliver easy-to-access, open and safe public spaces and playgrounds, with plenty of public lighting along highly frequented streets, parks and beach fronts. The public convenience sub-project will provide separate facilities for women, benefitting especially working women, students and visitors to the city from other parts of the country. Specific gender considerations in the SMF include: (i) provision of title of the alternative house in the joint name of spouses, and in the name of the mother in case of deceased husband; (ii) special attention to women headed households with livelihood restoration support; (iii) equal provision of employment training opportunities for male and female youths; and (iv) gender sensitive provision of facilities in resettlement sites including women and day care centers; (v) and ensuring women’s participation in condominium management process. Resettlement Sites: The Government of Sri Lanka has been implementing a pro-poor housing program, under which it has commissioned construction of new multi-story buildings with flats of 400sft. each in several locations in the Colombo area to re-house people living in USS. Of these, the GoSL earmarked 1,500 flats and a proportional number of commercial units and social facilities to meet the potential resettlement requirements for the MCUDP. The flats are available in condominiums, in two government sites closest to the MCUDP project areas. The Bank oversight in this regard shall be limited to the relocation of the project affected households in such condominiums. Social Accountability and Inclusion: Specific guidelines for addressing social inclusion and accountability in the resettlement process included information disclosure, consultation, grievance redress, community civil society participation in R/R implementation, special support for displaced vulnerable households to restore livelihoods (e.g. credit access and skill training support for youths from vulnerable resettled families, continuation provision of government welfare poverty alleviation schemes (samrudhi, old age pension) for eligible resettled families, extending housekeeping assignments at resettlement sites and employment in project related works, and opportunity to avail of a shop at the resettlement site on long term lease. Resettled families losing livelihood will receive cash assistance to enable re-establishment of their income Implementation Arrangements: The PMU has identified UDA as the nodal agency for coordinating LA and R&R activities for the Project. The PMU appointed a senior officer of the UDA managing the urban resettlement scheme as the director of its social unit. UDA has a large social survey team and has established database management systems for planning and implementing the urban resettlement scheme. In Sri Lanka, land acquisition is undertaken by Ministry of Land through their divisional secretaries, and the PMU will appoint a special officer for coordinating LA activities. Each major PPA such as the SLLRDC, CMC, and UDA has special land acquisition cells. Key institutional arrangements for implementing SMF/RAP include: (i) establishment of Social Management Cell at the PMU and, as necessary, and establishment of Land Acquisition and R&R cells in each project partner agency (PPA) to carry out/coordinate social screening and impact survey; (ii) prepare and implement RAPs for the Stage-II activities (with the help of external consultants if needed); (iii) unified mechanism at UDA to address and monitor post-resettlement sustainability issues; (iv) a multi-stage Grievance Resolution Mechanism; and (v) Independent Safeguard Monitoring and Review Mechanisms. A Steering Committee of relevant government departments was established to review progress and ensure implementation coordination at the highest level. These bodies meet periodically, in which the designated officers or their representatives participate. Specifically, the institutional arrangements for the closure activities at Meethotamulla will involve the following: (i) Social Safeguard Unit of MCUDP will carry out preparation works of the SMP and/or ARAP through external consultant. Internal and external monitoring will be done accordingly; (ii) PMU of MCUDP will be responsible for implementation of the ARAP and any relevant provisions in the SMF; (iii) contractor(s) will be responsible for the implementation of construction related issues in the SMP/ARAP; and (iv) communications unit at the Ministry of Megapolis and Western Development will be responsible for developing a communication and stakeholder engagement strategy and implementing the same along with the PMU of MCUDP; Ministry of Megapolis and Western Development will provide overall oversight for the project, review progress and ensure implementation coordination at the highest level. Key safeguards compliance arrangements will involve instituting systems and capacity for safeguards management at the PMU and sub-project implementing agencies. This will include: the establishment of an inclusive Land Acquisition and Resettlement Committee (LARC) for the Project, hiring social development specialists for PMU and social development officers (SDOs) to assist implementing agencies handling resettlement activities; mobilizing community development officers (CDO) from the social welfare department field level operations and hiring Consultants for resettlement planning and NGO for implementation support; and establishing Land Acquisition and R/R capacity in implementing agencies. The PMU established mechanisms for independent monitoring and quality audit of the safeguards management including land acquisition, R/R and EMP. For the purposes of Meethotamulla closure, the PMU will hire an additional social development specialist to support the implementation and monitoring of project interventions. The safeguards monitoring and review consultants will provide quarterly implementation progress reports (QPR) and yearly Safeguard Review Reports. Social accountability measures proposed include information disclosure, civil society participation in planning and monitoring of the project; and grievance resolution mechanisms. Linking Social Management Actions to Civil Works: Social Screening has been carried out for each activity and based on the magnitude of impacts and scale of resettlement required, SIAs will be commissioned through independent consultants or will be carried out by the Social Development Specialists with the help of Social Development Officers. Based on the SIA, RAPs has been prepared in consultation with the affected communities and disclosed. The eligibility lists will be disclosed at the community and at the implementing agency level for objections before finalizing the same. Eligibility will be determined on the basis of census survey and once the beneficiary list is finalized, the affected families will be issued Family Identity Cards. The LA and R&R benefits will be provided before handing over the site for civil work. The Chief Engineer from the concerned implementing agency will certify that the necessary actions have been completed as per the RAP for handing over encumbrance free land for civil work. The SMF provides for giving rental allowance to the affected families till final relocation in permanent buildings in the case of emergency shifting. A multi-stage Grievance Redress Mechanism has been established, with clear procedures for handling PAP complaints at local, sub-project implementing agency, PMU, and department levels. SMF requires holding consultations during resettlement planning and implementation to discuss risks, entitlements, RAPs, and relocation and site handover schedules; and disclosure of relevant documents on project website, in newspapers, and public project outreach centers established at the PMU and implementing agency levels. Monitoring and Evaluation: The PMU has hired external consultants/NGO for providing need-based implementation support to the PPAs and for carrying out independent monitoring and quality assurance. The Project has established a participative implementation monitoring system established at the bottom, which will enable the local resettlement committee to participate in the implementation process in planning and monitoring roles. The PMU has established quality monitoring reports with yearly safeguard reviews. These has formed the basis for any improvements to be brought about in the safeguard policy framework and implementation arrangements. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Environment: During preparation of the EMF, EA and screening reports for the 8 selected sub- projects for implementation in year 1, the public/communities in project sites have been consulted to hear their concerns about the projects’ environmental impacts and the outcomes have been documented. In general, public opinion of the project from an environment perspective is largely positive and welcomed. In addition, consultations with other primary stakeholders such as the implementing partners (SLLRDC, UDA and the 4 LAs) and regulatory agencies (CEA) have been carried out during this time and documented. Similarly, for all types of environmental analyses conducted subsequently, affected communities have been consulted, process documented and account taken of the results of consultation, including any actions agreed resulting from the consultation. Public disclosure of the relevant safeguards documentation has been a pre-requisite for bidding of works contracts. The contract documents for each contract package mandatorily includes the relevant environmental mitigation provisions stipulated in the EMPs for the given sub-projects in order to ensure contractor compliance with the safeguards requirements. Project Restructuring: The addendum to the EMF and the original EMF has been disclosed by the client August 4, 2017 and by the Bank on August 6, 2017. Social: Primary stakeholders include the affected persons, the beneficiaries of the project, the host population of the transit and resettlement sites, the project partner agencies such as SLLRDC, UDA, LAs and more importantly the project proponent and the Ministry of Defence & Urban Development (the original implementing agency) and Ministry of Finance. The secondary stakeholders are the others who have an interest on the project such as the National Government, the political authority, policy-makers, advocacy groups, NGOs and other private and public sectors which have indirect involvements with the project. Consultation and Disclosure: The SMF provides a framework for holding consultations during planning and implementing the RAPs. Consultations will be carried out and documented while preparing and designing the sub-projects to discuss alternatives, during Screening/SIA to discuss risks and impacts, and while preparing the RAP to discuss entitlements, disseminate the implementation process and time schedule for disbursement of compensation and benefits. During implementation, consultations will be held to plan actual relocation to the condominiums and to help with income restoration support. All the relevant safeguard documents will be disclosed at the Ministry of Megapolis (the current implementing agency) website, and on the websites of the implementing agencies, whereas key information will be disclosed through the newspapers depending on the requirement. The eligibility lists, entitlements, implementation schedule, etc are disclosed at the level of settlements affected by the project. Project Restructuring: The addendum to the SMF and the original SMF has been disclosed by the client on August 4, 2017 and at the World Bank’s Infoshop on August 8, 2017. B. Disclosure Requirements Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank 11-Oct-2011 Date of submission to InfoShop 16-Nov-2011 For category A projects, date of distributing the Executive Summary of the 15-Feb-2012 EA to the Executive Directors "In country" Disclosure Sri Lanka 16-Nov-2011 Comments: The addendum to the EMF has been disclosed in country on August 4, 2017 and by the Bank on August 6, 2017. Resettlement Action Plan/Framework/Policy Process Date of receipt by the Bank 04-Nov-2011 Date of submission to InfoShop 16-Nov-2011 "In country" Disclosure Sri Lanka 16-Nov-2011 Comments: Project Restructuring: The addendum to the SMF and the original SMF has been disclosed by the client on August 4, 2017 and at the World Bank’s Infoshop on August 8, 2017. If the project triggers the Pest Management and/or Physical Cultural Resources policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes [ X ] No [ ] NA [ ] If yes, then did the Regional Environment Unit or Practice Manager Yes [ ] No [ ] NA [ ] (PM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in Yes [ x ] No [ ] NA [ ] the credit/loan? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process Yes [ X ] No [ ] NA [ ] framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Yes [ ] No [ ] NA [ ] Practice Manager review the plan? Is physical displacement/relocation expected? Yes [ x ] No [ ] TBD [ ] Is economic displacement expected? (loss of assets or access to Yes [ x ] No [ ] TBD [ ] assets that leads to loss of income sources or other means of livelihoods) The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Yes [ X ] No [ ] NA [ ] Bank's Infoshop? Have relevant documents been disclosed in-country in a public Yes [ X ] No [ ] NA [ ] place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional Yes [ X ] No [ ] NA [ ] responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in Yes [ X ] No [ ] NA [ ] the project cost? Does the Monitoring and Evaluation system of the project include Yes [ X ] No [ ] NA [ ] the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with Yes [ X ] No [ ] NA [ ] the borrower and the same been adequately reflected in the project legal documents? III. APPROVALS Task Team Leader(s): Name: Yoonhee Kim, Shenhua Wang Approved By: Safeguards Advisor: Name: Date: Practice Manager/Manager: Name: Date: