Summary Environmental Impact Assessment Project Number: 39431 July 2006

Sri Lanka: Proposed Colombo Port South Harbor Development Project

Environmental Assessment Report

Prepared by the Sri Lanka Ports Authority for the Asian Development Bank (ADB).

The summary environmental impact assessment is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

CURRENCY EQUIVALENTS (As of 30 May 2006)

Currency Unit – Sri Lanka rupee/s (SLRe/SLRs) SLRe1.00 = $0.0097

$1.00 = SLRs102.96

ABBREVIATIONS

ADB – Asian Development Bank CCD – Coast Conservation Department CEA – Central Environmental Authority CEB – Ceylon Electricity Board CPC – Ceylon Petroleum Corporation CSH – Colombo South Harbour EMC – environmental monitoring committee EMP – environmental management plan GFG – Galle Face Green PIU – project implementation unit SLPA – Sri Lanka Ports Authority TIA – traffic impact analysis TSHD – trailing suction hopper dredger

WEIGHTS AND MEASURES

dB[A] – decibels [measured in audible human range] cm/sec – centimeters per second km – kilometer km2 – square kilometer m – meter m3 – cubic meter mm – millimeter mpn/100 ml – most probable number per 100 milliliter vpd – vehicles per day

NOTE

In this report, “$” refers to US dollars.

TABLE OF CONTENTS

Page MAPS I. INTRODUCTION 1

II. PROJECT DESCRIPTION 1 III. DESCRIPTION OF ENVIRONMENTAL CONDITIONS 3 A. Geophysical Environment 3 B. Biological Environment 5 C. Socioeconomic Environment 6 IV. ALTERNATIVE ANALYSIS 7 A. Alternative Harbor Locations 7 B. Alternative Layouts for the Harbor and Key Consideration in Developing the Harbor Layout 7 V. ANTICIPATED ENVIRONMENTAL IMPACT AND MITIGATION MEASURES 8 A. Impacts on the Physical Environment 8 B. Impacts on the Marine Ecology and Fisheries 12 C. Impacts on the Socioeconomic Environment 13 VI. ENVIRONMENTAL MANAGEMENT PLAN 14 VII. ECONOMIC ASSESSMENT 15 VIII. PUBLIC CONSULTATIONS 16 IX. CONCLUSION AND RECOMMENDATIONS 17

APPENDIXES 1. List of References 18 2. Environmental Management Plan 19 3. Environmental Monitoring Plan 29 4. Additional Personnel to be Attached to the PIU for Successful

Implementation of EMP 30 5. List of Public Consultations 31

I. INTRODUCTION 1. The Government of Sri Lanka has requested the Asian Development Bank (ADB) to provide a loan to fund the Government’s project to expand the Port of Colombo by developing the Colombo South Harbour (CSH). The proposed Expansion of the Colombo South Harbour Project (the project) has been included in ADB’s pipeline as a firm project for approval in 2006. The Sri Lanka Ports Authority (SLPA) is the Executing Agency for the project. 2. The project will build breakwaters, terminals, and channels—all within SLPA port limits. The project is (i) under category A according to ADB’s Environmental Assessment Guidelines (2003), and (ii) listed as a “prescribed project” according to the National Environmental Act 47 of 1980 as amended by Act 56 of 1988. Therefore, an environmental impact assessment (EIA) was prepared. As the project is under the jurisdiction of the Coast Conservation Department (CCD) according to the Government’s Coast Conservation Act 57 of 1981, the environmental approval and the permit for development activity have been obtained from CCD. The EIA report for the project was approved by CCD on 12 December 2005. 3. This summary EIA has been prepared for ADB. It includes (i) a general project overview, (ii) a general overview of the existing environmental conditions, (iii) a brief description of potential impacts and mitigation measures, and (iv) a proposed management plan. The summary EIA is based on the EIA report and the environmental management plan (EMP) and several other technical studies as listed in Appendix 1. The EIA’s main objective is to assess the potential environmental impacts of the construction of marine infrastructure, and the associated civil works and the subsequent operation of the CSH phase-I1 development. The EIA study was carried out from January 2003 to April 2005. The EMP and monitoring plan are summarized in Appendixes 2 and 3. 4. The EIA and EMP were prepared by Scott Wilson Kirkpatrick and Co Ltd, which was engaged under Loan 1841-SRI to prepare the project’s detailed engineering study. The EIA report was prepared in accordance with the relevant laws and Government regulations. The EIA and EMP reports, in principle, cover all the requirements set out in ADB’s Environmental Assessment Guidelines (2003).

II. PROJECT DESCRIPTION 5. The project comprises a new outer basin enclosed by breakwater and served by navigation channels. The south, east, and west 1 terminals will be built,2 each with a quay length of 1,200 meters (m) and three or four berths. The project layout is in Map 2. The breakwater will provide sheltered water to allow ships to maneuver, berth, load, and unload safely. The total length of breakwater is about 5,000 m. The leeward side of the breakwater will be reclaimed to provide container storage areas with berths on the harbor side.

1 This EIA focuses on assessing the impacts of construction and operation of marine infrastructure and the

associated works for phase I. Phase 2 will not be required until 2023, and the study of its impact has been limited to hydraulic modelling. The subsea pipeline will be rerouted under a design-and-build contract, and construction of the container terminals will be part of a build-operate-transfer (BOT) concession. Although detailed designs were not prepared for these elements, the form of construction and risks were assessed during EIA preparation.

2 There is also provision for phase II to extend west 1 to form west 2 terminal. This is not necessary until 2023 but the hydrodynamic modelling has been developed to take phase II into account.

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6. The approach channel will require dredging to provide sufficient width and depth to permit safe navigation of the largest container vessels for the next 20 years. The approach channels will provide two-way passage of vessels, with a minimum width of 570 m and depth of 20 m below the low water. Dredging will be done using a trailing suction hopper dredger (TSHD) with a capacity of 6,000–8,000 cubic meters (m3), and the material will be deposited to a level of 7 m below sea level by bottom dumping. The dredging and reclamation will be a single operation, with material dredged from the access channels to be placed in reclamation areas. The dredged material (about 24.3 million m3) will be used in the core of the breakwater and provide reclamation land for the leeward side of the breakwater, which will require about 23.6 million m3. The material to be dredged is all sand or silty sand. The dredging will cover about 820 hectares (ha) and the reclamation area 340 ha. Before starting dredging work in the vicinity of pipeline, the new subsea pipeline will be installed to reroute the existing subsea pipeline, which is within the new approach channel. 7. The terminals will be developed on a build-operate-transfer (BOT) basis. The detailed designs will be developed by the concessionaire. Therefore, the environmental impacts have been assessed based on the construction of the most common facilities and operating systems used worldwide. This includes electrically operated (i) quayside gantry cranes, (ii) diesel engine rubber-tyred gantries in the storage yards, and (iii) tractor and/or trailer units for transfer between the cranes and the stacks. The project will be able to handle freight volume of about 2.4 million twenty-foot equivalent unit (TEU)/year. Each of the three 1,200 m terminals are assumed to be subdivided into four 300 m quays comprising paved stacking areas with service roads. The land behind the quays will consist of (i) a quay apron, which includes a crane back reach area, utilities corridor, and road; and (ii) the container storage yard, including areas for special containers,3 and utilities. 8. The access roads to the project will use the existing internal port roads that link to areas outside the port by the dedicated Port Access Road, which connects to National Highway A003. Some roads will be built within the port to ease movement of vehicles. This involves demolishing three buildings, two warehouses, and an SLPA office. One warehouse (T5), although not listed as a significant heritage building, has some interesting architectural features and will be carefully dismantled to conserve the roof trusses, doors, and windows. 9. Improving other utilities involves increasing electricity supply to support the operation of the new terminals, and accommodating more sewage. Total demand for energy will be about 80 megavolt-ampere (MVA). To meet this demand, a self-built energy generator will not be necessary; the Ceylon Electricity Board (CEB) will increase its supply for the CSH, including for the construction and operation of new facilities that will be established by the project. However, a new substation will be constructed within the Port Authority area (near the CSH entrance) to accommodate the CSH’s increasing demand for electricity. 10. The demand for water was calculated for each terminal, common user areas, and the small-boat harbor (large vessels entering the CSH typically have their own desalination plants on board and do not need water). The estimated demand will be a maximum of 1,220 m3 per day, with about 1,000 m3 per day required during construction. Although there is a water shortage in Colombo, the National Water Supply and Drainage Board confirms that with the completion of the Kalu Ganga project in 2008, the demand for water supply to Colombo and the

3 Special containers are those not of standard size, damaged, or leaking. The area for special containers will be

bunded to contain any leakage. However, hazardous materials are not anticipated at the container terminal.

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CSH operation, including the operation of new facilities established by the project, will be met. Therefore, the project will not involve any activity to generate clean water. 11. Sewage requirements have been designed taking into account that larger vessels will treat their sewage on board, and small vessels, without such facilities, will pump sewage into the city network. The harbor sewer network is part of the Colombo sewage system. However, the pipeline from the Queen Elizabeth Quay area to the pumping station at Kotahena is inadequate and needs to be replaced. A total of about 1.9 kilometers (km), of which 1.3 km are outside the port, needs to be replaced. The project requires that each terminal and group of buildings have a package-type sewage treatment plant (PSTP) so that only treated effluent is pumped to the city sewage system. The city sewage network is too far from the small-boat harbor and so properly treated sewage will be discharged directly into the sea. All treated sewage from the PTSPs will comply with international effluent standards because there is no country effluent standard. Waste oils are not expected from the operation of terminals apart from vehicle maintenance workshops. However, the storm-water drainage system will be completed with an oil separator before the water is discharged to the outlets. 12. The offshore single bouy mooring and subsea pipeline were installed in 1986, within the fishing restriction area and the port limits. The 36-inch-diameter pipeline crosses the north and the main channel to the harbor and is within the final approach channel of the new CSH. A study considered either lowering the pipeline in situ or rerouting it clear of all future development. However, rerouting the subsea pipeline is preferable. Therefore, the sub-pipeline will be rerouted before dredging for the channel starts. Since the pipeline belongs to Ceylon Petroleum Corporation (CPC), the works will be carried out by SLPA in close coordination with CPC. 13. The project will involve three procurement contracts: (i) rerouting the subsea oil pipeline; (ii) marine infrastructure and associated works under a public-funded contract; and (iii) container terminals, their superstructures, and buildings under a privately financed concession agreement. The subsea pipeline is expected to be completely lowered within 8 months. The marine infrastructure and associated works will require around 3.5 years, and terminal work about 3.0 years. These three types of works are expected to be carried out simultaneously; preparation and construction will require a total of about 4 years.

III. DESCRIPTION OF ENVIRONMENTAL CONDITIONS 14. The project site is in Colombo City, on the west coast of Sri Lanka, to the west of the Port of Colombo. The study area covers a radius of 2 km from the project site extended to at least 2.5 km for the assessment of impacts upon fisheries. A. Geophysical Environment

1. Climate

15. Sri Lanka has a tropical climate dominated by two monsoon periods: the southwest (SW) monsoon (May–September) and the northeast (NE) monsoon (December–February). The regional wind system is dominated by the monsoon effect and influenced locally by the daily variation of sea-to-land and land-to-sea winds. It rains mainly during the NE and SW monsoons. Average annual rainfall is estimated to be 2,000–2,500 millimeters (mm).

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2. Hydrographic Conditions 16. The site is within the area of influence of the Kelani River which also influences sea conditions at the Port of Colombo. Tides are low, ranging from 0.2 m (during the neap period) to 0.8 m (during the spring period). Average tidal current velocities are less than 10 centimeters per second (cm/sec). 17. Nearshore current speeds are generally weak. Maximum tidal currents of 10–15 cm/sec have been observed west of the harbor. These flow north on a rising flood tide and south on an ebb tide. Wind-driven currents dominate the tidal currents, and the maximum surface currents are 25–40 cm/s, and rarely about 80 cm/s because of ocean currents. As a result of the wave climate, the net long-shore sediment transport is predominantly toward the north.

3. Sediment Transport 18. The net long-shore sediment transport is predominantly toward the north as a result of the wave climate (SW monsoon sea waves and swell). However, during the NE monsoon, the sediment transport (as a result of waves from northwest) is sometimes to the south. The net movement across the CSH has been estimated at 250,000 m3/year. An important geomorphologic feature in understanding the stability of the coastline is the existence of beach rock, which fronts much of the coastline and indicates a sand deficit. 19. The beaches to the north of the site were dependant on sand feed from the Kelani River, but over-mining of river sand has resulted in a deficit. Erosion of the coastline to the north became a problem, and coast protection works were built.

4. Sediment Quality 20. Four sediment (and water quality) sampling programs have been carried out in and around the site from 1996 to 2004. Historical analysis of sediment chemistry has indicated elevated levels of heavy metals and other pollutants consistent with known land-based inputs in and around the port. The most recent surveys, in 2003/2004, indicated moderate pollution from heavy metals and organics but showed an overall decrease. The sediment in many places comprises sand to sandy clay, with a low proportion of clay. The findings of the most recent surveys (particle size and sediment chemistry) are possibly as a result of recent dredging.

5. Water Quality 21. Water quality is heavily influenced by land-based inputs, particularly the Kelani River and the Mutwal sewage outfall to the north of the port, major outfalls in the inner harbor basin of the port and the Beira Lake sea outfall, to the south of the port and the project. This is supported by data as a result of all EIA surveys. During the monsoon, the Kelani River discharges a sediment plume (with high turbidity), which extends southward beyond the port area. 22. Monitoring data from 2003/2004 indicates high levels of fecal coliforms, particularly around the sewage outfall, the inner harbor basin, and the wider project area, which generally exceed the guidelines for primary recreation of 150 most probable number per 100 milliliters (mpn/100 ml), by about threefold. This was supported by baseline modeling program MIKE-21. Modeling indicated that plume dispersal from fixed-point sources occurred in the northeast direction along the coast during the SW monsoon, thus reducing water quality of inshore waters to the north of the Kelani River. During the NE monsoon, this plume extends southwest along

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the coast, reducing water quality off the Galle Face Green (GFG),an area used for informal water recreation, immediately to the south of the proposed CSH. Other water-quality parameters were generally found to be within the Australian and New Zealand Environment and Conservation Council (ANZECC) 2000 guideline values for toxicants and recreational activities The ANZECC guidelines have been adopted by the government authorities in the absence of national standards.

6. Air, Noise, and Vibration 23. The ambient air quality around the CSH site is generally within accepted standards except for particulate matter (PM10). Heavy urban traffic and the diesel power plants in and around Colombo contribute to high PM10 levels in the area. 24. Ambient noise levels measured in and around the port indicate that road traffic is the primary contributor. Measured levels are generally within the acceptable limits for “developed land” (72dB[A]), but exceed the preferred levels (57dB[A]) at two places of worship (Chaitya and St. Anthony’s churches) just outside the port. 25. Vibration was measured at two buildings of heritage interest (the SLPA Maritime Museum and the Harbour Master’s Building) within the port to determine the effect of port-related traffic. All measured levels were well within the Government’s guideline standards. B. Biological Environment

1. Marine Ecology and Fisheries 26. Field surveys of plankton, nekton, benthos, and fisheries were carried out by the National Aquatic Resources Research and Development Agency (NARA) in February and April 2005 as part of the EIA study. Five dive surveys were carried out along transects in the project site. Of the principal habitats, only sandy seabed and open waters are affected by the project. The area has four reefs, whose species are generally of low diversity and abundance. All are significantly influenced by sediments from the Kelani River, with high turbidity as well as accumulated sediments on the reef surface. The density and diversity of colonization by corals is generally very low, typically 85% uncolonized. Only one species (damselfish) Pomacentrus proteus is endemic. However, no species were recorded to be confined to the proposed development area and no rare or endangered species were recorded. There are no protected habitats around the site. The nearest sensitive habitat is the Negombo Suda reef (25 km north and 15 km offshore), which supports 14% live coral cover and is permanently monitored by NARA. 27. Fishing in the study area is predominantly carried out in the open marine waters north of the Kelani River and in the Onagala area. There is a security zone around the port, where fishing is not allowed. A total of 53 fish species and 4 shrimp and crab species were identified in commercial catches landed at Modera Fish Harbour. In 2003, the total catch landed at Modera was estimated to be 436.15 metric tons (MT) This catch is from an area to the north, which extends beyond the 2.5 km radius from the project area. A new fish harbor is planned at Dickowita to service these fishing grounds to the north.

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C. Socioeconomic Environment

1. Land Use 28. The port development-related activity zone is Colombo City, with a population of about 642,000 in 2001. The outer periphery affected by the project is the Colombo Metropolitan Region, including the administrative area of Colombo District and the adjoining Gampaha and Kalutara districts, covering the entire Western Province. Land use in Colombo City is predominantly residential (58%). Housing areas tend to coexist with businesses, and low-income groups live alongside medium- and high-income groups. However, development immediately surrounding the port is predominantly commercial and/or industrial. It is anticipated that Colombo will see a reduction in the proportion of residential development relative to commercial.

2. Employment 29. In 2001, unemployment was 8.8%. Unemployment in Colombo Municipality is lower than the rest of the country, the area has a large unskilled youth labor force.

3. Traffic 30. The numbers of vehicles have increased rapidly over the last two decades. The roads across Colombo City are congested from different sources for most of the working day. There is no railway operation to Port of Colombo. However, there is a 1.6 km dual two-lane road (Port Access Road) linking the port with outer Colombo. There are six gates from the SLPA area connecting to the Colombo road network: (i) Gate 1 is in the SW of the port and connects to GFG. It is restricted to light vehicles with special security permits. (ii) Gate 2 connects to Leyden Bastian Road and is used as an alternative exit gate only for general cargo in small trucks. (iii) Gate 3 is the main gate for all vehicles other than container trucks. (iv) Gate 4 is an alternative gate for vehicles and general cargo in small trucks but is closed to outgoing traffic at night. This gate connects to Srimath Ramanathan Street. (v) Gate 5 is dedicated to container trucks entering and leaving the port. It connects to the Port Access Road. (vi) Gate 6 is used for transporting cement, other bulk cargo, and empty containers. Vehicles pass over the Port Access Road and along Srimath Ramanathan connecting to George R. De Silva Street near gate 4. The Road Development Authority has planned a number of high-mobility roads radiating out from the Western Province, and an outer Colombo ring road that could ease traffic congestion in the city.

4. Recreation and Heritage 31. The principal recreation facility near the development is the GFG, (about 1.0–1.5 km south of the development), which is popular with locals for informal and passive recreation. Marine-based recreation is limited and is predominantly informal swimming from beaches. Boat use is limited and does not occur within the immediate area surrounding the port because of security restrictions. 32. The oldest remaining port structures of cultural heritage date from the arrival of foreign powers, including the Portuguese in 1505, the Dutch in 1640, and the British in 1796. Principal structures include remnants of the Battenburg Battery built under the Portuguese in the 16th century, and a Dutch warehouse dating to the 17th century and has been converted into the

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SLPA Maritime Museum and the Harbour Master’s Building. These structures are within the boundary of the Port of Colombo or in the restricted area surrounding the President’s mansion and are not generally accessible to the public.

IV. ALTERNATIVE ANALYSIS A. Alternative Harbor Locations

33. The recommendation to develop additional port facilities at Colombo is the product of a number of studies, including the most recent work by Scott Wilson, the feasibility study completed in 2000, and an investigation by the Japan International Cooperation Agency (JICA) in 1996. Consequently, the project has been integrated into national plans. To fit with the development of new facilities under the project, SLPA plans to relocate some of the cargo passing through the Port of Colombo, with liquid and dry bulk cargo going to Hambantota and break-bulk cargo transferred to Galle. B. Alternative Layouts for the Harbor and Key Consideration in Developing the

Harbor Layout

34. The feasibility study developed nine layout options, with a number of sub-options to examine specific features. This process resulted in two options being put forward for detailed consideration. Subsequently, the feasibility study design concept was reviewed and developed, giving consideration to functional and operational requirements, as well as more detailed, up-to-date information. Two primary options were then developed for the harbor layouts, and one taken forward for more detailed analysis and design. 35. The design of marine structures of the project adjacent to the Port of Colombo requires careful consideration on several issues. The position of the breakwaters and channel should be as far to the south as possible to avoid interference with the entrance channel to the port. However, investigations indicated high bedrock at the southern end; therefore, the position was selected to avoid blasting. The breakwater alignment was also refined a number of times to maximize the advantages of the underlying bathymetry. By following the contour lines, the design sought to reduce the overall volume of rock needed for construction. 36. The orientation of the entrance is primarily associated with protecting the harbor from the most severe wave direction. To achieve the desired levels of wave disturbance within the harbor, the entrance width is restricted, which also restricts the penetration of sediment-laden currents, which can enter the harbor, contributing to siltation. 37. To facilitate safe navigation, a wide entrance is needed that is free of complex wave phenomena. While this helps vessels maneuver, it is at variance with the requirement for low wave penetration. The overall impact of the layout on the coastal regime has been investigated to ensure that changes to the coastline north and south of port will not be significant. 38. The preferred option minimizes constraints on the Port of Colombo and requires less rock per unit length of breakwater than earlier proposals. The layout has been tested through numerical and physical modeling to establish that the wave penetration and ship motion are such that there is no operational down time. 39. While the design was being refined, no significant difference was found between the options’ environmental impacts. The only material consideration was the opportunity to use less

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rock in the preferred option. The process of refinement was primarily for engineering and operational efficiency. 40. The most significant environmental consideration has been in the integrated design of the breakwater and reclamation. The preferred breakwater design has been developed through an iterative process of evaluation in terms of engineering, environment, and cost. It has taken into account the principles of sustainable development, resulting in a number of positive features:

(i) The design fully meets the necessary functional criteria such that it is safe and stable, so any secondary environmental impacts associated with a failure are limited.

(ii) It minimizes the volume of rock to be quarried as far as practical, reducing associated secondary environmental impacts from quarrying and transport of rock.

(iii) It avoids unnecessary disturbance of the seabed in areas not previously disturbed.

(iv) It achieves a “material balance” in that all material dredged for navigation in the basin and channels is reused in reclamation, with no need to import or dispose of materials.

V. ANTICIPATED ENVIRONMENTAL IMPACT AND MITIGATION MEASURES

41. Six construction activities could have environmental impacts: (i) transporting construction materials for the breakwater; (ii) dredging to deepen the channel as well as lower the subsea pipeline, and reclamation; (iii) upgrading the internal road; (iv) providing more power (power distribution line, lighting); (v) upgrading the water supply; and (vi) upgrading the sewage infrastructure. A. Impacts on the Physical Environment

1. Environmental Impacts Caused by Supplying Rock 42. About 450,000 tonnes of aggregates will be required over 3 years. The supply of the crushed rock for concrete aggregates and rock for breakwater armor will be determined by the contractor. Based on three seasonal construction periods of 7 months, and 6 working days per week, 550 truck movements will be needed per day. To minimize this potential impact, the rock will be transported by barge, minimizing transport through Colombo City. Since the Government approved the EIA report, a suitable source of rock has been identified at Oluvil. However, the contractors will not be obliged to use it. Should quarry rock be sourced within Sri Lanka, the contractor will complete a formal EIA and hold a separate permit for the extraction and delivery of quarried rock to the project site.

2. Environmental Impacts from Dredging and Reclamation 43. Dredging and reclamation are a single operation, with material dredged from the access channels placed in the reclamation sites. These works will physically disturb the seabed: about 340 ha for reclamation and 820 ha for the approach channel. The potential effects of these activities during construction are (i) increased turbidity, (ii) associated with geotechnical stability, and (iii) siltation in the harbor. During operation, the expected effects are (i) impact on sand and sediment transport, (ii) siltation in the harbor, (iii) change in current patterns, (iv) change to

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adjacent beaches, and (v) wave disturbance and collision hazard within the harbor (potential oil spills and fire). All these impacts have been considered in preparing the layout of the new facilities, and mitigation measures have been incorporated into the detailed engineering design. A benefit from the dredging is the removal of about 1 million m3 of material that had been dumped offshore to reinstate the natural seabed level. The overall expected impacts are summarized below.

a. Increased Turbidity

44. Dredging might increase turbidity as a result of sediment excavation, loading, overflow, transit, and placement for reclamation. To minimize increased turbidity, the use of the TSHD is being considered. Disturbance will be limited by the restricted width of the TSHD’s head through which excavated material is sucked. Turbidity will be minimized by using the right method: placement by rainbowing (high-velocity pumping of the soil and water mixture out of the discharge pipe in the bow of the vessel). The mixture is directed upward at an angle, causing fines to escape and increase turbidity. If the discharge is pumped ashore via pipeline, the fines can be contained in settling basins to lower the fines content of the runoff water.

45. The modeling study on dispersal of dredged sediment shows that fine sediments released during dredging settle quickly after being discharged. The areas impacted by dredging are expected to be limited to within 1 or 2 km of the dredge sites and, therefore, the beach and nearshore area will not be affected. The repeated cycle of dredging and reclamation will have no cumulative impact because the sediment from one dredging cycle will settle rapidly before the next. Therefore, the potential impacts of increased turbidity are considered to be temporary and localized.

b. Geotechnical Stability 46. Dredging and reclamation could cause impacts associated with geotechnical stability that could affect existing structures. The risk of geotechnical subsidence and subsoil failure can be minimized by establishing a stable transition region between the existing bed and the area to be dredged. Therefore, to avoid threat to the stability of existing structures, dredging will be carried out only at least 500 m away from the existing breakwater. The potential impacts associated with geotechnical stability are considered low. c. Siltation in the Existing Harbor 47. During construction, the placement of dredged material in the reclamation sites will not release much sediment. Given the relatively low rates of sediment release and the tendency for sediment to settle close to the release point, it is considered that dredging will have negligible effect on sedimentation in the existing harbor. 48. During operation, sedimentation is not expected to be significant. The modeling study indicates that annual rate of deposition in the outer channel is only 24 mm, so dredging the channel during construction to 20.5 m depth would mean that no maintenance dredging would be required for about 12 years. With the proposed breakwater, a calm area is expected to be established north of the proposed harbor and in the front and/or mouth of the Kelani River. The greatest change will occur during the SW monsoon, when the harbor layout will provide a wave shadow, causing a high percentage of the suspended sediment brought by the Kelani River to settle in the river mouth.

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d. Sediment Transport 49. Sediment transport from the south of the project site will be interrupted by the southern arm of the breakwater, which will act as a groyne. The sediment transport capacity across the proposed entrance channel and the harbor has been estimated using the sediment transport model. The study indicates that there is little sediment transport in the area. Almost all sediment that reaches the harbor SW breakwater does not bypass the structure and only small quantity is available for transport by littoral drift to north of the harbor. Thus, overall impacts from sand and sediment transport are considered low. e. Change in the Current Pattern 50. The hydrodynamic modeling indicates that the flow from the Kelani River does not affect the harbor’s hydrodynamics. Maximum tidal currents of 10–15 cm/sec can be seen west of the harbor, with only a marginal change in the current pattern with the introduction of the breakwater. The current south of the entrance channel and west of the breakwater increases as a result of the new development. Increases can be seen in all tide and wind conditions, with maximum increase in the northwest (NW) wind conditions followed by NE wind conditions. In all cases, the wind-driven currents dominate the tidal current, and as a result the directional changes of the tidal currents are not visible when the wind is strong. However, overall changes in the current pattern are low. f. Change in Adjacent Beaches 51. Impact on the Adjacent Beach South of the Project Area. Construction of a 2 km southern main breakwater arm will place a long groyne at the northern end of the southern coast. The seaward end of the breakwater will be about 18 m deep. A significant proportion of sediment will be captured by this groyne and will be accumulated against the breakwater. Based on the modeling, the accumulation of sand on the southern side of the project is expected to move the coastline toward the sea from 80 to 200 m by year 10 after construction. Accumulated material could be left in place if regarded as environmentally positive and removed if not. Removing the material to counter erosion would be economically advantageous. Therefore, sediment accumulation needs to be monitored continuously. Accumulation on the beach between Galle Face Hotel and the project area will improve the recreational facilities. However, the outfalls in the beach area will need to be extended, especially the outfall from Beira Lake. 52. Impact on the Adjacent Beach North of the Project Area. The CSH will create a wave shadow, causing wave conditions to become calmer. A modeling study shows that this situation will result in accretion of materials at the mouth of the Kelani River and the adjacent area to the south. A maximum of 75–150 m of accretion is projected to occur after 25 years. This build-up area is not expected to increase with flooding, considering that the flood plain of the Kelani River is so wide. However, long-term monitoring is needed to confirm the prediction as well as to ensure that mitigation measures, if needed, can be provided. The reduction in the sediment transport northward will increase erosion on the coast further north. After 25 years, maximum erosion of 50–100 m is predicted over about 10 km, assuming no protective structures are maintained. If erosion is prevented by structures, then sediment deficit will extend further north. 53. North of the mouth of the Kelani River, the coast is protected by groynes and revetments over about 1 km, and recession exists behind the Pegasus reef. Thereafter, the coast runs almost straight to Pamunugama and after a slight bend it extends to Pitipana in a convex manner. This has a severely eroding coastline. At present, the coast protection scheme is

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considered adequate. Assuming that the works are properly designed, no additional coastal protection work to the north of the port is necessary. 54. The impacts on the adjacent beaches in the north and south of the project area were predicted without reliable data, and therefore all results are highly uncertain. Overall, the impacts on adjacent beaches are considered to be moderate but a continuous and long-term monitoring program is needed.

g. Wave Disturbance 55. Both wave climate (outside the project area) and wave penetration (within the project area and port) were modeled, and the results indicate that required levels of calmness will be achieved. Therefore, the potential of environmental impacts from wave disturbance is considered low. Consequently, the potential for spills, collisions, and other accidents is also low. However, SLPA has an emergency program in place to deal with these accidents.

h. Impact on Water Quality 56. During construction, the principal source of potential water-quality impacts is from dredging marine sediments and associated reclamation activities. The model has shown that fine sediments released during dredging settle quickly. The area potentially impacted by dredging operations is expected to be limited to within 1 or 2 km of the dredging site, and nearshore and beach areas are not expected to be affected. Existing conditions include periodic, widespread, and high-turbidity events caused by sediment from the Kelani River. High levels of suspended solids in the water column are not uncommon and localized increases in turbidity are not expected to significantly impact on water quality. Still, best-practice controls on dredging operations have been recommended to minimize the risk of uncontrolled release of sediment-laden waters. 57. Existing sediments are not heavily contaminated and the potential contaminant release during dredging is not significant because of the engineering design of the reclamation methods. The sediment will be physically contained and, therefore, the seawater surrounding the project area is not expected to be contaminated. Because the reclamation will be offshore, there is no mechanism to contaminate the groundwater in the adjacent land. 58. During operation, the potential water-quality impacts associated with changes to the hydrodynamics of the area following construction of new facilities under the project are limited (based on the water quality modeled to examine the fate of new discharges associated with present operation of the harbor and the effects of the new harbor on existing discharges). The effects of existing pollution sources (e.g., the Mutwal outfall, Kelani River River, Beira Lake, and urban discharges to the existing port) are anticipated to remain the same, with the exception of the Mutwal outfall. Modeling indicates that the facilities constructed by the project will affect the dispersion of faecal coliforms. To the north, water quality is predicted to remain largely unchanged. To the south, the coastline is predicted to be pushed into a more offshore position in the area of the GFG, and, therefore, the project is predicted unlikely to alter water quality south of the port near Gale Face. 59. The project will include onsite management and treatment of wastewater generated during operations from each port facility. Wastewater from uncontrolled discharges such as general site activities can be controlled because it will go to the storm-drainage system, which will have an oil trap before disposal through any outfall. The oil spill contingency plan will be

12

developed to manage unforeseen spillage and other events. Sri Lanka is a signatory to the International Convention for the Prevention of Pollution from Ships (MARPOL Convention); therefore, discharges from vessels will be controlled under this international regulation.

i. Noise and Air Quality 60. The potential for noise and air-quality impacts during construction is limited. The design approach to deliver quarried materials for the breakwater by marine barge will significantly reduce potential vehicular-related emissions. 61. Transhipment activities (e.g., loading and unloading) are not considered likely to cause a significant impact. The predominant source of noise and air emissions during operation will be from vehicular traffic on roads within and outside the port. Predicted levels of traffic associated with the project are not likely to be significant because of the transhipment (rather than import and export) nature of port operations. B. Impacts on the Marine Ecology and Fisheries

62. The dredging and reclamation will cause permanent loss of benthic habitat over about 340 ha of seabed for the reclamation, and temporary loss of 820 ha for the approach channels and basin, the benthic habitat support mollusks, crustaceans, and fishes. Fish and shrimp spawn on the sandy sea bottom. The ecological value of benthic in these areas is not significant and similar habitats exist elsewhere. There are also two small isolated areas of limestone cap rock at the proposed entrance channel, but they do not provide a habitat for sponges, corals, and echinoderms. There are no protected habitats close to the project area, and therefore dredging and reclamation are not anticipated to have significant impacts on identified habitat in the study area. The dredging will also increase turbidity, but the spread of suspended solids is anticipated to be limited. It is necessary to note that periodic widespread high turbidity is common in the project area because of sediments from the Kelani River. The impacts related to a high level of suspended solids would not significantly reduce the primary productivity of these study areas. However, the project is expected to benefit the ecology and fisheries because the breakwater will provide about 5 km of new submarine habitat, including hard substrate for sessile organisms, as well as shelter for benthic animals. 63. Other potential activities that will affect marine habitats are blasting and disposing of dredged materials. The probability that the project will involve blasting is low, because the need to deepen the channels has been designed to avoid disturbance of the limestone cap rock. . However, in case there are boulders that cannot be removed by dredger, then blasting may be required. The amount of explosives will be carefully calculated to minimize vibration that could affect the marine environment. Similarly, there is little need to dispose of dredge materials because they can be used for reclamation. However, if dredged materials do need to be disposed of, they will likely be dumped off Onagala reef, which was recently colonized, is of low ecological value, and is periodically subject to high turbidity because of heavily silted inflow from the Kelani River. Therefore, the environmental impact will be insignificant. 64. The ecological impact of dredging and reclamation on fauna and flora is expected to be insignificant. Species in the study area are of low diversity and abundance and there are no significant coral colonies. Most of the reefs (Onagala, Kelaniganga, Kalapugala, Vatiya, and Palagala) are more than 1 km from the project area. The only endemic species found in the marine environment of study area is Pomacentrus proteus, but it is not rare and can be found in many areas of the western coastal waters.

13

65. Indirect impacts on ecology and fisheries associated with increased suspended solids are limited. Recorded species and habitats in the area are of low ecological value. Sediments are predicted to settle quickly and most likely would be carried for no more than 2 km from the project area. The high background levels of suspended and deposited sediments arising from the Kelani River have resulted in a low density and low diversity of colonization by corals. 66. Once construction is complete, the project will not materially alter the hydrodynamics or resulting sedimentation patterns in the areas of ecological or fishery interest. The potential pollution associated with uncontrolled discharges during operation can be managed through good practice. The project will be constructed entirely within the existing “no-fishing” security zone so fishing catch will not be affected. Operational impacts associated with increased port-related vessel movements are not anticipated as all vessel movements are within the offshore exclusion zone. C. Impacts on the Socioeconomic Environment 67. Jobs and related benefits are expected to increase. Jobs during construction are projected to total 1,950, including 300 for construction of the breakwater and 550 for the staged construction of each of the three terminals. Local skilled workers are expected to be hired. 68. During the operational phase, a total of 3,870 permanent jobs are estimated to be created after the breakwater is complete and as the three terminals are commissioned. The terminals will each employ 1,040 people, or 3,120 in total. Another 750 people are expected to be employed in ancillary operating facilities, including 220 in a marine operations center, 200 in the SLPA offices, 300 in customs-related work, and 30 in electrical and water supply services. Although some existing port employees are expected to be distributed or transferred to these new facilities, the additional jobs are expected to be significant. 69. More jobs will arise from quarrying and associated works, and so will benefits from increased vessel traffic and other related initiatives outside the scope of the immediate project, such as the development of a free trade zone. The direct and indirect benefits of these opportunities are subject to further investigation. 70. Land Use and Local Communities. The proposals accord with existing land-use plans for Colombo City. The works in Colombo will not require any use of existing land, so people or businesses need not be relocated. 71. The project will be visible from the passive recreation area of the GFG, south of the site. The project will change the seaward view (in the northern direction) from the GFG. During construction, barges and construction activities will be visible offshore. Following construction, the project will be particularly visible at night when operations are lit. The change in the landscape to the north of the GFG is likely to be significant. Still, it is in keeping with the nature of the site as a port activity zone, and the movement of commercial vessels in the waters off Colombo is expected. 72. Road Traffic. The potential for heavy road traffic in Colombo during construction has been significantly reduced as rock will be transported by barge, and marine sand (dredged during the digging of navigation channels) rather than land-based sources of fill material will be used in the reclamation. Construction-related road transport might not be needed at all. However, these vehicles are unlikely to add significantly to traffic.

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73. Future levels of road traffic have been analyzed through predictive modeling, with and without the project. The traffic situation in Colombo is constrained and is predicted to remain the same as baseline traffic levels continue to grow. Measures will be needed to alleviate congestion, even without the project. The traffic impact analysis (TIA) has identified key roads and junctions around the port, which will require upgrading. These include Srimath Ramanadan Mw. and George R. De Silva Mw. SLPA’s long-term plans to relocate break-bulk cargo to Galle, and liquid and dry bulk cargo to Hambantota will somewhat lessen road traffic. Geometric improvement will be required for the Srimath Ramanathan and George R. de Silva junction to improve traffic flow. No private land is required as any additional land can be acquired by moving back the SLPA boundary. The Sirimavo Bandaranaike and Port Access Road junction will require automatic signal timing adjustment to improve traffic flow. However, the transport network potentially constrains Colombo’s long-term development, and the natural growth of domestic cargo at the Port of Colombo will aggravate traffic congestion. 74. Cultural Heritage. The project will not directly affect buildings of heritage interest in Colombo City and will likely have indirect benefits. The project will also allow realignment of the port boundary wall such that existing key structures of cultural heritage interest within the port boundary (including the Harbour Master’s Building and Battenburg Battery) will be outside the port. 75. The removal of the security zone coupled with the realignment of the port boundary wall will make these structures more accessible to the public. These structures are proposed to be conserved and developed as part of a heritage area to promote Colombo’s nautical history. Within the port, one undesignated building of interest will be dismantled so the access road can be built. Structures of architectural interest will be conserved and space has been allocated within the proposed heritage area to reconstruct this building if deemed appropriate by the Department of Archaeology. 76. Geophysical surveys and dive surveys have not identified any structures of underwater cultural heritage interest in the study area. One known site of underwater cultural heritage interest (“The Drunken Sailor”) lies south of the project area. A “watching brief” will be carried out as part of the dredging operations to ensure that there are no hitherto unfound items of underwater heritage interest. No significant impacts upon cultural heritage are anticipated.

VI. ENVIRONMENTAL MANAGEMENT PLAN A. Project Implementation 77. The project’s environmental performance will be managed by implementing the EMP. Therefore, before construction, the EMP will be updated. During construction, contractors will use the updated EMP to implement the recommended mitigation measures and to achieve environmental performance standards. 78. The EMP’s effectiveness will be ensured through a monitoring program. Monitoring is expected to be overseen by an environmental monitoring committee (EMC) chaired by the CCD. The EMC membership will be determined by the CCD, but will include the proponent, contractor, and other key stakeholders. The EMC will meet regularly to review the monitoring. In case of an unforeseen or unexpected impact, the EMC will take remedial actions to mitigate it or to solve problems arising from it. The EMC will develop a mechanism to manage, investigate,

15

respond, and act upon any issues raised by the public during construction. The EMC will oversee compliance monitoring and impact monitoring. 79. The SLPA will establish within it sections for environmental and coastal engineering to ensure that all environmental and social concerns will be addressed and handled in a timely manner. The sections’ duties and responsibilities are described in Appendix 4. A project implementation unit (PIU) will be established. 80. Funding will be adequate to develop the sections’ capacity to address and handle environmental and social concerns after the project is fully operational and no longer funded by ADB. B. Compliance Monitoring 81. Compliance monitoring includes third-party verification that the EMP including mitigation measures proposed in the contracts, will be carried out effectively. An environmental specialist from the environmental engineering section will routinely monitor the project with support from the EMC. The monitoring results will be reported back to the EMC and SLPA through the PIU for follow-up actions, if needed. C. Monitoring Environmental Impacts 82. The environmental impacts will be monitored to determine the effectiveness of the mitigation measures proposed for construction and operation and to validate and confirm the assumptions made in the EIA. Monitoring will be done by an independent party. The details of location, methodology, frequency, and monitoring duration will be determined by the EMC. 83. During construction, the following will be monitored: (i) water quality during dredging, (ii) air quality at the site boundary, (iii) noise at the site boundary, (iv) vibration at the SLPA Maritime Museum and Harbour Master’s Building, and (v) presence of underwater artifacts of cultural heritage during dredging. 84. After the construction works are complete, the following will be monitored: (i) sediment accumulation in the CSH harbor basin, (ii) water quality in the CSH basin and existing Port of Colombo, (iii) coastal morphology to the north and south of the CSH, and (iv) stability of the breakwaters.

VII. ECONOMIC ASSESSMENT A. Economic Justification for the Project 85. On the basis of cargo traffic projections, the existing Port of Colombo is expected to reach capacity by around 2009. Existing ports in the region have expansion proposals, and new ports are planned. To capitalize on the projected increase in the container market, Colombo must expand its port capacity. 86. Assuming the project is implemented on time, its economic internal rate of return will be about 21%. 87. Should the project not proceed, secondary negative economic impacts have been predicted, such as the loss of container traffic revenue. The main consequences for the

16

economy would be the loss of frequent, fast, and direct shipping services used by importers and exporters. Without the project, Sri Lanka, especially Port of Colombo would almost certainly lose its transhipment traffic, and direct calls from trunk-line routes would also decrease, as local traffic would not be enough to attract direct calls. Eventually, Colombo would become a “fed port”, served by a combination of feeder ships and multi-port services with long transit times as a consequence. The effects on current and future exports have been predicted to be significantly positive. In 2002, textiles accounted for 52% of exports, a substantial proportion of these products being classified as fast-moving consumer goods with time-critical delivery. Any reduction in port efficiency could significantly harm these economic sectors. B. Environmental Cost and Mitigation Requirements 88. The project is not expected to generate significant irreversible environmental impacts. The project has been designed to minimize impacts upon the environment and obviate the need for specific mitigation of impacts arising from the project. However, mitigation costs and costs for implementing environmental management, including monitoring costs, have been included in the overall project budget. 89. Cost estimates for the project’s financial and economic viability allotted SLRs500 million to cover implementing the environmental management plan, including monitoring. Most of the mitigation costs are included in the construction contracts, and the environmental permit imposes no measures with a substantial cost implication. The environmental costs are assessed at SLRs179 million. Funding has been allocated for mitigation measures that do not form part of the (i) construction costs (Appendix 2), (ii) environmental monitoring costs (Appendix 3), (iii) enhancing environmental improvement activities such as improvement of sewage pipeline (Appendix 2), and (iv) strengthening the capacity of the environmental engineering and the coastal engineering units of SLPA, as well as for environmental emergency costs to provide remedial mitigation measures for unforeseen environmental impacts related to the project.

VIII. PUBLIC CONSULTATIONS 90. Consultations with stakeholders, including affected people, are required under the EIA procedures for Sri Lanka as well as by ADB. At project preparation, a series of meetings were held with key Government representatives, including Coast Conservation Department, Central Environment Authority, the Geological Survey and Mines Bureau, and the Marine Pollution Prevention Authority to agree on assessment methods and to establish likely public concerns. A presentation on the EIA process and investigations was held in December 2004 for CCD and the EIA steering committee to guide the scope of the EIA study. 91. As part of the program of baseline studies and throughout the design and EIA process, local fishers and representatives of the tea and garment industries were interviewed. Government bodies, including the Urban Development Authority, the Colombo Municipal Council, and the Board of Investments were consulted. The Ceylon Association of Ship Agents, representing operational stakeholders, has been consulted regularly. The consultations are listed in Appendix 5. 92. The EIA report was formally submitted to the Government for approval in April 2005 through CCD in compliance with the Coast Conservation Act 57 of 1981. The notification to the public that the EIA report was available for review was announced on 18 October 2005, and the public was given 30 days to comment on it. Based on the EIA report, the permit for the project was granted on 12 December 2005. A public hearing was not held because the public had no

17

significant inputs. However, CCD held a discussion with all stakeholders to review the EIA report before issuing an “environmental clearance” of the project.

IX. CONCLUSION AND RECOMMENDATIONS 93. The EIA examined the potential environmental impacts of construction and operation of the project. The EIA met the requirements of the Government and, in principle, has complied with ADB’s Environmental Assessment Requirements (2003). 94. The approach of the EIA and engineering process has been to “mitigate through design”, whereby potential environmental impacts have been reduced as far as practicable through an iterative design process. This has decreased the potential for impacts to occur as well as the need to apply mitigation measures. 95. Potential impacts of construction and operation have been assessed, including in inland areas as well as coastal regions to the north and south of the site, which are of socioeconomic and recreational importance. Potential impacts on the operational activities of the existing Port of Colombo were also considered. 96. An environmental management plan, including an environmental monitoring plan, has been prepared to minimize the project’s potential adverse environmental impacts and to enhance its positive impacts. Adequate funding has been allocated to implement these plans. 97. The EIA emphasizes establishing a sustainable institutional mechanism to ensure that monitoring programs recognize public concerns. The recommended functions of the environmental engineering section and coastal engineering section (of SLPA) under the PIU, as well as the EMC take cognizance of the importance of stakeholder participation in impact and compliance monitoring. 98. The EIA study considers (i) the environment of the project area, (ii) the significance and contribution of the project to national and regional development in ports and shipping, (iii) the potential environmental impacts (including their magnitude and significance) caused by the proposed development, and (iv) the ability to eliminate and/or minimize negative impacts through “mitigation by design” and mitigatory measures. 99. No major insurmountable environmental impacts are associated with the construction and operation of the proposed CSH, assuming that the recommended mitigation measures are implemented. Therefore, environmental monitoring should be carried out to ensure that the EMP is implemented and any unforeseen impacts are managed appropriately.

18 Appendix 1

LIST OF REFERENCES

1. Ministry of Ports and Aviation. 2005. Technical Report on Marine Ecology and Fisheries. Colombo.

2. Ministry of Ports and Aviation. 2005. Social Analysis Report. Colombo. 3. Ministry of Ports and Aviation. 2005. Poverty Impact Study. Colombo, 4. Lanka Hydraulic Institute. 2005. Numerical Modelling Coastal Evolution. Colombo. 5. Lanka Hydraulic Institute. 2005. Numerical Modelling Sediment Transport. Colombo. 6. Transport Engineering Division, University of Moratuwa. 2005. Traffic Impact

Assessment. Colombo. 7. University of Moratuwa. 2004. Baseline Report on Sediment Quality in the Port of

Colombo and its Surrounding Areas. Colombo. 8. National Aquatic Resources Research and Development Agency. 2004. Under Water

Ecological Survey. Colombo.

Appendix 2 19

ENVIRONMENTAL MANAGEMENT PLAN Project Activities

Potential Impacts Proposed Mitigation Timing Location Implementing Supervisor/ Monitoring

Cost

Dredging and reclamation, including breakwater construction

Impact on the hydrodynamic environment Physical disturbance of the seabed. This impact is permanent and involves 340 ha for reclamation and 820 ha for the approach channel. It will produce 24.3 million m3 of dredged materials that will be used to meet demand for initial reclamation materials of about 23.6 million m3. Increased turbidity. The dispersal dredging sediment model (April 2005) shows that fine materials settle quickly. Therefore, the repeat cycle will have no cumulative impact. The expected impact by dredging materials will be limited to 1–2 km of the dredged site. There are no sensitive receptors within that zone, and background turbidity levels from river discharge are high.

Mitigation measures have been incorporated into the detailed design by proposing the following: The dredging will be controlled and limited to the area required for the navigation channels. No blasting. The rock head is below the anticipated dredged level. No offshore disposal of dredged materials. These will be used for and contained within the reclamation. Adopting good dredging practices by selecting the right equipment (trailing suction hopper dredger [TSDH]) and the right dredging, loading, and placement methods Specify controls within construction documents that require the contractor to monitor the background level from the Kelani River and to limit increases in turbidity to 30% above background

During construction During construction

Offshore development area On-board dredging equipment

Designer: limitations defined in construction drawings Contractor: implementing contract conditions Designer: measures included in construction contract specification Contractor: implementing contract conditions

CCD Engineer’s representative, SLPA, and EMC Engineer’s representative, SLPA, and EMC

Included in construction cost Included in bill rates for dredging

20 Appendix 2

Project Activities

Potential Impacts Proposed Mitigation Timing Location Implementing Supervisor/ Monitoring

Cost

Blanket coverage of the seabed may occur, but it will be limited to the working areas (see the dispersal dredging sediment model, April 2005). Geotechnical stability. The impacts will possibly (i) cause subsidence of the adjacent areas caused by undermining, (ii) cause subsoil failure because of removal of surface soil, (iii) alter local soil characteristics because of continuous dredging, (iv) change the local flow pattern associated with scouring or siltation in the dredging and neighboring areas, and (v) potentially influence the foundation of existing structure. Siltation in the harbor during construction will be insignificant because of the low rates of sediment release and the tendency of sediment to settle quickly at the release point. The construction of the CSH will result in accretion of material to the south of the CSH 80–200 m adjacent to the south arm of the breakwater. A few outfalls may become blocked. UDA 2020 plan proposes reclamation of this area.

Adopting good dredging practices by selecting the right equipment (TSHD), and selecting the right dredging, loading, and placement methods Establish a stable transition region between the existing bed and the area to be dredged Dredging will be carried out about 500 m from the existing southern breakwater. Increase in depth adjacent to existing structures is limited to 1 m at the harbor entrance. Adopting good dredging practices by selecting the right equipment (TSHD), and selecting the right dredging, loading, and placement methods Extend the outfalls

During construction During construction During construction After construction

Limited areas adjacent to working areas Adjacent to existing structures Offshore development area Area to south of the CSH

Designer: measures included in construction contract specification Contractor: implementing contract conditions Designer: limits of dredging defined in construction drawings Contractor: implementing contract conditions Designer: measures included in construction contract specification Contractor: implementing contract conditions UDA

Engineer’s representative, SLPA, and EMC Engineer’s representative,SLPA, and EMC Engineer’s representative, SLPA, and EMC CCD and EMC

Included in bill rates for dredging Included in design cost Included in bill rates for dredging Included in 2020 development plan

Appendix 2 21

Project Activities

Potential Impacts Proposed Mitigation Timing Location Implementing Supervisor/ Monitoring

Cost

Change in the current patterns. The hydrodynamic modeling study shows that no significant increase in current is predicted in the proposed approach channels for all tide and wind conditions modeled. Reduction in current in the area between the CSH and the Kelani River The construction of the CSH will result in accretion of material at the mouth of the Kelani River and adjacent area to the south. However, any increase in frequency of flooding is unlikely as the river mouth will be cleared of any obstruction when the river is in full flow after rain. Reducing sediment transport northward will increase erosion on the coast further north. After 25 years, a theoretical maximum erosion of 50–100 m is predicted over about 10 km. Wave disturbance in the harbor could cause (i) hazards to vessel maneuvering, (ii) disruption to loading and unloading, and (iii) damage to vessel and moorings.

No mitigation, but comprehensive monitoring is required in the area to the north (in conjunction with monitoring of other hydrodynamic affects) Comprehensive monitoring is required. Seasonal surveys of river mouth Maintaining the existing coast protection and comprehensive monitoring is required. A wave disruption modeling study was done and recommendations have been incorporated into the detail design to minimize wave disturbance.

After construction One year of two monsoon seasons After construction Annual After construction Detail design stage

Area between the CSH and the mouth of the river Mouth of the river Coastline to north of the CSH CSH

SLPA to make periodic environmental measurements SLPA CCD Design consultant

EMC EMC EMC SLPA

See Appendix 3 No capital cost as flexible hybrid coast protection works already planned under Coastal Erosion Management Project monitoring cost None

22 Appendix 2

Project Activities

Potential Impacts Proposed Mitigation Timing Location Implementing Supervisor/ Monitoring

Cost

Impact on water quality by construction Release of suspended solids into water (see increased turbidity) Release of sediment bound pollutants (ammonia and heavy metal) is not expected to be significant since their concentration is low. Potential depletion of oxygen. Since sediment is mostly sandy and non-organic materials, the impacts will be localized because of rapid sediment settling. Reduced light penetration

Adopting good dredging practices: • Directing the flow lines

of the suction stream to the point of excavation

• Restricting overboard pumping of lean mixture

• Ensuring that the hopper is filled to a safe level to prevent spills

• Discharging dredged materials through bottom doors or by split hull

• Providing suitable barriers to reduce dispersion

• Ensuring that the seals on the hopper’s discharge pipes do not leak

During construction

Offshore construction areas

Consultant: preparing specification for the works. Contractor: adhering to specified requirements

EMC, SLPA, consultant, and Engineer’s representative

Included in design fee Included in cost of dredging

Increase noise and vibration caused by the following: • Delivery of construction

materials • Dredging • Pilling for quay walls • Site formation as part of

reclamation and breakwater construction

• Construction of buildings and roads

• Specify that the noise of rock delivery by sea is below 75 dB (A) during the day and 50 dB (A) at night.

• Only well-maintained and regularly serviced plants should be operated.

• Machines and plants that are used intermittently should be shut down between work periods or should be throttled down to a minimum.

• Silencers or mufflers should be used in construction equipment and maintained properly.

During construction

Offshore construction areas

Consultant: preparing specification for the works Contractor: adhering to specified requirements

EMC, SLPA, consultant, and Engineer’s representative

Included in design fee Included in construction cost

Appendix 2 23

Project Activities

Potential Impacts Proposed Mitigation Timing Location Implementing Supervisor/ Monitoring

Cost

Impact on air quality by construction will be limited to the CSH offshore site. Impacts of quarry sites. Extraction, handling, and transportation of rock may generate significant impacts.

• Mobile and temporary noise barriers should be made available onsite.

The use of explosives is not permitted. However, if localized blasting is required, it will be 3 km offshore. • Stockpiles of dusty

materials should be covered.

• Spray water to keep surfaces wet.

• Any excavated material should be backfilled or reinstated as soon as possible.

• Haul roads should be

kept clear of dusty materials or sprayed with water frequently.

• Loading and unloading bulk cements should be in a closed and vented system.

• Any vehicle carrying dusty materials should be covered

• Vehicles carrying dusty materials should be washed before leaving the site (washing facilities should be available).

Operate quarry strictly in accordance with the terms of the permit Compensate RDA and local authorities for any damage to public roads and bridges

During construction During construction

Offshore construction areas Quarry site and transport route from quarry to coastal load out point

Consultant: preparing specification for the works Contractor: adhering to specified requirements Contractor

EMC, SLPA, consultant, and Engineer’s representative GSMB and CEA

Included in design fee Included in construction cost Included in construction cost

24 Appendix 2

Project Activities

Potential Impacts Proposed Mitigation Timing Location Implementing Supervisor/ Monitoring

Cost

A quarry with sufficient resources remote from habitation and with an existing environmental permit has been nominated. If the contractor wishes to use another quarry, it will have to obtain the necessary permits. Impacts on ecological and fisheries resourcesa Permanent loss of benthic habitat under the footprint of reclamation, and temporary loss in dredged channel area. However, species using this habitat are common in Sri Lanka. Permanent loss of limestone cap rock at the entrance to the CSH. This area does not provide habitat for sponges, corals, and echinodermis. Impacts of increased turbidity are limited to the development site. This area is subjected to periodic high turbidity caused by sediment from the Kelani River. The study area has low diversity of but abundant common species. No protected habitat and no rare or endangered species are found in the study area, which is not a fishing zone. An important reef is over 1 km from the project area, so increased turbidity and sediment are not expected to reach this area.

Ensure that the dredging and reclamation as well as construction of the breakwater do not extend beyond the designated areas. Adopt good practices in dredging. Monitoring is required.

During construction During construction

Offshore development areas Offshore reef areas

Contractor SLPA

SLPA, CCD, and EMC EMC

Included in construction cost See Appendix 3

Appendix 2 25

Project Activities

Potential Impacts Proposed Mitigation Timing Location Implementing Supervisor/ Monitoring

Cost

Relocation and deepening of existing subsea oil pipeline Construction of terminals

The existing subsea oil pipeline is at risk from damage by vessels entering the port as the cover is inadequate. The rerouting of the pipeline requires two break-ins (one under water) with potential oil spills. Impacts are similar to those discussed under dredging, reclamation, breakwater, and are due to Reclamation of terminal area (loss of habitat) Construction of quay wall (noise/ emissions/traffic) Construction of paved areas and buildings (noise/emissions/ traffic) General construction activities (water quality/air quality / traffic) Potential impact on cultural heritage A number of buildings are to be demolished. None are listed, but one (Warehouse T3) dates from the 19th century. It has been substantially modified but retains some original features. Detailed offshore surveys have identified no historical wrecks.

Connection to be made when SPB shuts down for annual maintenance Pipeline to be purged of oil before break-in Concession bid documents and agreement to include performance specification requirements for construction work under BOT Carefully dismantle building T3 and save original features Have a watching brief during dredging for archaeological finds

During construction During construction During construction During construction

Pipeline connections Offshore development areas CSH entrance Dredged areas

Specialist contractor Consultant preparing terms Concessionaire/ contractor adhering to agreement SLPA SLPA

SLPA, CPC, CCD, EMC, and MPPA SLPA and EMC EMC EMC

Included in Cost of Works Included in developer’s cost Included in development cost Included in development cost

26 Appendix 2

Project Activities

Potential Impacts Proposed Mitigation Timing Location Implementing Supervisor/ Monitoring

Cost

Operation Additional sea traffic generated

by the CSH could increase the risk of vessel collision and oil discharge. Potential oil spills and other hazardous goods, fire, and disasters The CSH is established to handle containers that are generally non-hazardous. Additional sewage will overload the city sewage system.

Channels and navigation aids designed to permit safe transit Pilotage provided for all vessel simulation and risk assessment satisfactorily completed during design Establish an oil spill contingency plan The operator will be required to install a storm-water drainage system which would include oil/water interceptors prior to runoff discharge to the sea Oil storage tanks would be bunded Emergency response system for hazardous goods and oil leaks will operate Each terminal will be served by a package-type sewerage treatment plant (PSTP) Treated sewage will be pumped into the city network. 1.3 km of city sewers will be upgraded. Residents connected to the sewer line will benefit.

Operations Operation Operation

Offshore navigational waters Terminal areas Terminal areas

Consultant during design SLPA Concessionaire/ terminal operator Concessionaire/ terminal operator

SLPA, MPPA, and EMC SLPA and MPPA concessionaire SLPA and EMC SLPA and EMC

Included in design fee Covered by SLPA navigation / pilotage charges SLRs5.0 million Paid by operator Paid by operator SLRs65 million

Appendix 2 27

Project Activities

Potential Impacts Proposed Mitigation Timing Location Implementing Supervisor/ Monitoring

Cost

Potential increase of solid waste Potential noise impacts Terminal operation is offshore and there will be no noise impact in areas on the port boundary. Additional port traffic raises noise levels by 2 dB(A) above existing levels. Remain below guide level of 72 dB(A). Increase in container truck movement on roads adjoining the port is limited to domestic trade (30% of total). Additional impact above natural growth is small. Potential light pollution Terminals require bright lighting, which could be intrusive. Potential visual impact The CSH will be visible from Galle Face (amenity area).

Each terminal will be required to have a solid waste management plan. No hazardous wastes are expected, but if any, handling, storage, and disposal have to follow existing regulations. No specific measures are proposed. All noisy equipment is assumed to be maintained in good working order. No specific measures Improve George R de Silva/Srimath Ramanathan junction Apply a traffic management system to affected roads and junctions Improve clearance of containers. Spread traffic over 24 hours Install directional lights with flare guards to minimize upward spills Extensive planting adjacent to the CSH entrance road

Operation Operation Operation Operation Operation Operation Operation Operation

Terminal areas Terminal Port roads City roads City roads City roads Terminal area Harbor entrance

Concessionaire/ terminal operator Concessionaire/ terminal operator SLPA CMC CMC Customs, SLPA, operators Concessionaire/ operator SLPA

SLPA EMC EMC EMC EMC EMC EMC SLPA and EMC SLPA EMC

Paid by Operator None None SLRs75 million Included in planned upgrades No direct cost Included in development cost Included in development cost

28 Appendix 2

Project Activities

Potential Impacts Proposed Mitigation Timing Location Implementing Supervisor/ Monitoring

Cost

Siltation in the existing harbor during operation Rates are low and maintenance dredging predictions suggest time interval of 6 or 7 years.

None, as modeling showed that rate of siltation similar to that existing.

Operation

Existing harbor

SLPA annual survey of harbor area

EMC

Already included in SLPA annual budget

CCD = Coast Conservation Department, CSH = Colombo South Harbour, CPC = Ceylon Petroleum Corporation, EMC = environmental monitoring committee, GSMB = Geological Survey and Mines Bureau, m3 = cubic meter, MPPA = Marine Pollution Prevention Agency, SLPA = Sri Lanka Port Authority, UDA = Urban Development Authority. a Although blasting and offsite dumping are not anticipated, impacts on ecology have addressed these potential impacts for completeness of the report. If blasting

and offsite dumping of dredged materials are proved necessary, a supplementary study has to be prepared in consultation with CCD. Source: Ministry of Ports and Aviation. 2005. Colombo Port Efficiency and Expansion Project: Environmental Impact Assessment. Colombo.

Appendix 3 29

ENVIRONMENTAL MONITORING PLAN No. Parameter To Be

Monitored Monitoring Location

Frequency of Monitoring

Monitoring Costs

(SLRs million)

Party to Undertake Monitoring Work

Party Supervising Monitoring Work

Party Who Has to Receive the

Report 1

Air quality

Site boundary

Biannual for 5 years

0.2

SLPA

EMC

CCD

2

Vibration monitoring during construction

Maritime Museum and Harbour Master’s Office

One day every quarter during construction

1.8

SLPA

EMC

CCD

3

Noise

Site boundary

One day every quarter during construction

0.9

SLPA

EMC

CCD

4

Watching brief for underwater heritage during dredging

Offshore dredging and reclamation areas

As required during dredging

1.2

Archaeological

Department

EMC

CCD

5

Sedimentation of the CSH basin

CSH

Annual for 5 years

3.0

SLPA

EMC

CCD

6

Water quality around CSH and existing harbor

Harbor areas and north and/or south of the CSH

Biannual for 5 years

12.5

SLPA

EMC

CCD

7

Changes in coastal morphology

Coastline to the north and south of the project area

Annual (after SW monsoon for 10 years)

9.0

SLPA

EMC

CCD

8

Sedimentation at mouth of the Kelani River

Mouth of the river

Annual for 10 years

1.0

SLPA

EMC

CCD

9

Current measurements

Approach channel and near the mouth of the Kelani River

Twice in SW monsoon and twice in NE monsoon after construction

2.0

SLPA

EMC

CCD

10

Ecology and fish habitats

Onagala reef

Annual during construction

2.4

SLPA

EMC

CCD

Total

SLRs34.0 million

CCD = Coast Conservation Department, CSH = Colombo South Harbor, EMC = environmental monitoring committee, SLPA = Sri Lanka Port Authority, Source: Ministry of Ports and Aviation. 2005. Colombo Port Efficiency and Expansion Project: Environmental Impact Assessment. Colombo.

Appendix 4

30

ADDITIONAL PERSONNEL TO BE ATTACHED TO THE PROJECT IMPLEMENTATION UNIT FOR IMPLEMENTATION OF THE ENVIRONMENTAL MANAGEMENT PLAN

A. Environmental Engineer and Staff

1. Duties and Responsibilities (i) Monitoring, supervision (with National Aquatic Resources Research and

Development Agency [NARA] and Coastal Conservation Department [CCD]), and reporting of environmental impacts due to dredging and reclamation activities in new development area and in the vicinity.

(ii) Monitoring (with Central Environmental Authority [CEA]) and reporting of water and sediment quality in the work area and its surrounding.

(iii) Monitoring (with CEA) and reporting of noise, vibration, and air quality in the development area and its surroundings.

(iv) Monitoring and reporting impacts of rock quarrying and rock transportation (with the Geological Survey and Mines Bureau and CEA).

(v) Monitoring and reporting impact on ecology and fisher’s resources with the Fisheries Department, NARA and CEA.

(vi) Operation and management of existing environmental laboratory in Sri Lanka Ports Authority.

B. Coastal Engineer and Staff

2. Duties and Responsibilities

(i) Monitoring and reporting of environmental impacts caused by change in current and wave patterns in the region (hydrodynamic conditions).

(ii) Monitoring and reporting shoreline changes, accretion, and erosion caused by construction. Monitoring should be done in coordination with Coastal Conservation Department.

3. Note

1. The environmental and coastal engineer should directly report to the project director and/or deputy project director regularly and whenever necessary along with actions to be taken to prevent adverse impacts such as any remedial measures/mitigation, etc. The project director/deputy project director should take prompt action on such notice/report received from the environmental/coastal Engineer by instructing the client/consultant/contractor.

4. Capacity Building Required

2. Provide additional equipment/facilities required for the existing environmental laboratory at Sri Lanka Ports Authority and training for the technicians currently working in the laboratory.

Appendix 5 31

LIST OF PUBLIC CONSULTATIONS

Date

Third Party

Matters Discussed

September 2003

Representatives from garment and tea industries

Logistics and shipping requirements

19–24 January 2004

BOI and potential investors in port-related industries

Potential free zone, IPDs, etc.

May–July 2004

Small business adjacent to port land

Potential benefit and cascade from increased port activity

May–July 2004

Fishing community at Modera (between the port and the Kelani River)

Potential impact of CSH on fishing grounds Security area and navigation accords

20–26 September 2004

Drivers of vehicles during traffic impact assessment survey.

Origin–destination survey and traffic congestion issues

November 2004

Cabinet

Presentation and discussion on business case for CSH

18–19 February 2005

Ministry of Ports and Aviation; SLPA; shipping and logistics industry representatives

Development of port policy and need for CSH

11 August 2005

Scoping committee and leading stakeholders, including DFAR, UDA and CMC

Presentation on developments and all potential environmental issues

22 August 2005

Scoping committee (including DFAR, UDA, and CMC) Visit to project site

Container terminal and general port operations

22 October 2005

National seminar on Sethusamudaram Canal and impact on Sri Lankan ports

Presentation on CSH and strategic approach to EIA

CSH = Colombo South Harbor, CMC = Colombo Municipal Council, DFAR = Department of Fisheries and Aquatic Resources, EIA = environmental impact assessment, UDA = Urban Development Authority.

Source: Ministry of Ports and Aviation. 2005. Colombo Port Efficiency and Expansion Project: Environmental Impact Assessment. Colombo.