Final seia report english opened for public comments new

PROPOSEDCOLOMBOPORTCITYDEVELOPMENTPROJECT,COLOMBO,SRILANKA

SUPPLEMENTARYENVIRONMENTALIMPACT

ASSESSMENTREPORT

PROJECTAPPROVINGAGENCY

CoastConservation&CoastalResourceManagementDepartment

PROJECTPROPONENTMinistryofMegapolisandWesternDevelopment

LEADCONSULTANTCENTRALENGINEERINGCONSULTANCYBUREAU

DECEMBER,2015

SUPPLEMENTARYENVIRONMENTALIMPACTASSESSMENTREPORT

PROPOSEDCOLOMBOPORTCITYDEVELOPMENTPROJECT

ProjectApprovingAgency:

DepartmentofCoastConservation&CoastalResourceManagement

ProjectProponent:

MinistryofMegapolisandWesternDevelopment

EIAConsultants:LeadConsultant:CentralEngineeringConsultancyBureauAssociateConsultants: GSMBTechnicalServices(Pvt)Ltd.

NationalAquaticResourcesandResearchAgencyLankaHydraulicInstituteLtd.UniConsultants,UniversityofMoratuwa

CDRInternationalB.V,theNetherlands

DECEMBER2015

CECBSEIAReportProposedColomboPortCityDevelopmentProjectDecember2015Pagei

TABLEOFCONTENTS

Chapter1:Introduction1.1 BackgroundoftheProject 01

1.1.1 TheWesternRegionMegapolisRegionalStructurePlanof2004 01

1.1.2 TheColomboPortCityProject:TheAdministrativeProcess 02

1.1.3 KeyTermsoftheProjectAgreement 03

1.1.4 TheEIAProcessforReclamation 04

1.1.5 SandExtraction&BasisforCommencementofReclamationWorks 05

1.1.6 OtherPermitssecured 06

1.1.7 TheSuspensionofConstructionandWayForward 07

1.2 ObjectiveandJustificationoftheProject 07

1.2.1 ObjectivesinRelationtoWesternRegionMegapolisStructurePlan(CESMAPlan) 07

1.2.2 TheStrategicObjectivesofColomboPortCity 08

1.2.3 PermissibleDevelopmentswithinColomboPortCity 09

1.2.4 ForcesthatProduceFinancialCentres:SomeTheory 09

1.3 ObjectiveoftheSEIAReport 10

1.3.1 The2StageEIAProcess 10

1.3.2 Precedenceof2stageEIAProcess 11

1.4 Extentandscopeofthestudy 11

1.5 MethodologiesandtechnologiesadoptedinSEIAreportpreparation 12

1.5.1 DeskStudies 12

1.5.2 FeasibilityDesignInvestigationsandtheirrelevancetotheEIAProcess 12

1.5.3 WaveandHydrodynamics 12

1.5.4 GeophysicalInvestigations 13

1.5.5 BathymetrySurvey 13

1.5.6 EcologicalStudies 13

1.5.7 AssessmentofSocioeconomicEnvironment 17

1.6 Mainbeneficiaries 18

1.6.1 ImportanceofWesternRegionDevelopment 18

1.6.2 KeyEconomicBenefitsfromColomboPortCity 18

1.7 Applicablelawsandregulations 19

1.7.1 SriLankaLandsOrdinanceandUDAActNo41of1978 19

1.7.2 NationalEnvironmentalActNo.47asamendedbyActNo.56of1988(NEA) 19

1.7.3 CoastConservationActNo.57of1981 20

CECBSEIAReportProposedColomboPortCityDevelopmentProjectDecember2015Pageii

1.7.4 MinesandMineralActNo.33of1992(MMA) 20

1.7.5 MarinePollutionPreventionActNo.59of1981 20

1.7.6 TheAntiquitiesOrdinanceNo.9of1940 21

1.7.7 CivilAviationAuthorityActNo14of2010 21

1.8 ConformitytoCoastalResourcesManagementPlanandanyotherdevelopment/conservationplansofthearea

22

1.8.1 TheCoastalZoneManagementPlan(CZMP) 22

1.8.2 TheMasterPlanforCoastalErosionManagement 22

1.9 Approvalsneededfromrelevantagenciesandanyconditionslaiddownbysuchagenciesforreclamation,sandandrockextraction

22

1.9.1 GeologicalSurveyandMinesBureau 22

1.9.2 UrbanDevelopmentAuthority 22

1.9.3 DepartmentofCoastConservation&CoastalResourcesManagement 22

1.9.4 ColomboMunicipalCouncil 23

1.9.5 MarineEnvironmentalProtectionAuthority(MEPA) 23

1.9.6 DepartmentofFisheries 23

1.9.7 BoardofInvestmentofSriLanka 23

1.9.8 StrategicDevelopmentAct 23

1.9.9 LandCommissionsDepartment 23

1.9.10 DepartmentofArchaeology 23

1.9.11 RoadDevelopmentAuthority 24

Chapter2:DescriptionoftheProposedProjectandReasonableAlternatives

2.1 JustificationoftheProposedProject 01

2.1.1 JustificationinrelationtotheWesternRegionMegapolisRegionalStructurePlan 01

2.1.2 JustificationforPortCityintermsofGovernmentPolicy 04

2.1.3 IndependentReportsonRealEstateMarketIndicatingPentupdemand 05

2.1.4 InternationalTrendsandExamplesofCreatingNewLandbytheSea 05

2.2 ProjectLocation 09

2.2.1 ReclamationArea 09

2.2.2 Extentofthesite 13

2.2.3 Estimatedreserves 13

2.2.4 Quantityofsandtobeextracted 13

2.2.5 Waterdepthtothesanddeposit 13

2.2.6 Proposedminingdepthfromthesurfaceofthedeposit 13

2.2.7 Mininghistoryofthesiteanditsenvirons 15

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2.3 ProjectDetails 17

2.3.1 Designofreclamationschemeanddetailandfunctioningofmarineworks 18

2.3.2 Detailsofreceptionfacilities 38

2.3.3 Supplyofquarrymaterialforconstruction 38

2.3.4 Dredgingandextractionofsand,forreclamationof269Ha.fortheproposedportcityproject

60

2.3.5 GeneralDescriptionofFutureDevelopmentActivitiesonreclaimedlandincludingtimeframes

71

2.3.5.1 ProposedDevelopmentActivitiesUnderCESMAPlan 71

2.3.5.2 Architecturalconceptplantogetherwiththelayout/masterplanforColomboPortCity

71

2.3.5.3 LandUsePlanandGrossFloorArea 73

2.3.5.4 UrbanDesign 76

2.3.5.5 Infrastructure&UtilitiesResponsibilitiesUndertheProjectAgreement 80

2.3.5.6 RoadsResponsibilitiesUndertheProjectAgreement 80

2.3.5.7 ColomboPortCityanintegratedecocycleapproachtoinfrastructuredesign 80

2.3.5.8 PowerSourceandRequirement(SubjecttoCompletionofPhase2EIA) 81

2.3.5.9 SewerageandWastewaterSource&Requirement(SubjecttoCompletionofPhase2EIA)

82

2.3.5.10 WaterSupply(SubjecttoCompletionofPhase2EIA) 83

2.3.5.11 SolidWasteCollection&Disposal(SubjecttoCompletionofPhase2EIA) 84

2.3.5.12 IT&CommunicationsInfrastructure(SubjecttoCompletionofPhase2EIA) 85

2.3.5.13 Transportation&TrafficStrategywithinPortCity(SubjecttoCompletionofPhase2EIA)

85

2.3.5.14 ExternalRoadTransportation&TrafficConnectingPortCity 86

2.3.5.15 Maintenance 89

2.4 Evaluationofalternatives 90

2.4.1 Projectlocationandpossiblealternatives 90

2.4.2 Approachtotheoverallconceptualdesign 91

2.4.3 Sitespecificlayout 95

2.4.4 Scaleofreclamation 105

2.5 WorkForce:Availabilityofworkforceduringconstruction&EmploymentofSriLankans

105

2.6 Futureexpansionofproject 105

2.6.1 Phasedimplementationschedule 105

2.7 FinancialCommitments 107

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Chapter3:DescriptionoftheExistingEnvironment

3.1 PhysicalEnvironment 01

3.1.1 Bathymetryofthereclamationarea 01

3.1.2 BathymetryoftheSandminingareaand1kmbeyondthesandminingsites 03

3.1.3 Detailsofhydrauliccirculationanddescriptionandassessmentofprevailingcurrentfieldsincludingcurrentcharacteristicssuchasvelocity,speedsanddirectionsandtides.

05

3.1.3.1 Tide 06

3.1.3.2 Current 07

3.1.3.4 Descriptionandassessmentofprevailingwaveconditionsincludingwaveheightsanddirections.

10

3.1.5 Descriptionandassessmentofcoastalmorphologyandthedominantcoastalprocesses

12

3.1.6 Coastalfeaturesincludingbeachprofile 13

3.1.7 Coastalerosionand/oraccretiontrends 16

3.1.8 Waterqualityofprojectarea 21

3.1.8.1 ReclamationArea 21

3.1.8.2 SandDredgingArea 25

3.1.9 Descriptionofexistingnaturalandmanmadedrainageoutfallsdischargingintoprojectarea

29

3.1.9.1 BeiraLakeOutfall 29

3.1.9.2 Otherdrains 37

3.1.9.3 DetailsofDrainageOutlets 40

3.2 BiologicalEnvironment 43

3.2.1 Descriptionandassessmentofpresentdistribution,biodiversityandhealthofcoralreefs.

43

3.2.2 Healthofthereefs 50

3.2.3 Descriptionandassessmentofthepresentdistributionandlivingstateofseagrassbeds.

54

3.2.4 Descriptionandassessmentofthepresentdistribution,speciescompositionandrichnessofseabottommacrozoobenthos.

55

3.2.5 Descriptionandassessmentofthepresentoccurrenceofendangeredspeciesorextraordinarynaturalresources3.2.7Descriptionofbiodiversityprofilewithinthesandborrowsites

61

3.2.6 Descriptionofthepresentconditionsconcerningnutrientdynamic,algaebloomsandwaterturbidity.

64

3.2.7 Descriptionofbreadinggrounds/spawninggroundsandmigratoryroutsforcommercialandecologicallyimportantmarineorganisms

74

3.2.8 Descriptionofbiodiversityprofilewithinthesandborrowsites 78

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3.2.9 Identificationandmappingoffishinggrounds 79

3.3 AmbientAirQualityoftheReclamationArea 81

3.3.1 AmbientAirQualityStandards 81

3.3.2 AirQualityMeasurements 81

3.4 SocioCulturalConditions 83

3.4.1 Descriptionandassessmentofresourcesintheprojectarea 83

3.4.2 Descriptionandassessmentofthepresentfisheryandaquacultureresourcesinthestudyarea

83

3.4.2.1 Numberoffishers(FishingPopulation) 83

3.4.2.2 Numberandtypesoffishingcraftsoperatedandtheirsizes 85

3.4.2.3 Numberandtypeoffishinggearsused 88

3.4.2.4 NumberofBeachseine 88

3.4.2.5 Seasonsoffishingoperations 88

3.4.2.6 Speciesdiversityandquantityoffishcaptured 89

3.4.2.7 Incomelevelofthefishers 91

3.4.2.8 No.ofdependents 91

3.4.2.9 Seasonalmigration/Movement 92

3.4.3 Descriptionandassessmentofthefishery 92

3.5 Archaeologicalandculturalaspects 93

Chapter4:AssessmentofanticipatedEnvironmentalImpacts

4.1 Physical/Chemicalconditions 01

4.1.1 Hydrauliccirculation 01

4.1.2 Waveconditions 06

4.1.3 CoastalMorphology 18

4.1.3.1 Erosionofadjacentshorelineduetochangeofcurrent,waveheightregimesattributedtothecoastalstructureswithreclamationarea

23

4.1.3.2

Erosioneffectsineithersidesofthecoastalstretchbeforeandafterconstructionaswellasinlongterm.

25

4.1.3.2 Changesinsedimenttransportpatternonbothperiods(Shorttermsandlongterms)

30

4.1.4 Suspendedsediments 31

4.1.4.1 DredgingProcess 35

4.1.4.2 DumpingProcess 39

4.1.5 Waterquality 56

4.1.5.1 BeiraLake 56

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4.1.5.2 DredgingandReclamation 64

4.1.6 Drainage 66

4.1.7 ColomboSouthPort 67

4.1.7.1 ImpactsofPortCityonthePortStructures 67

4.1.7.2 ImpactsofPortCityontheWaveatNavigationChannel 68

4.1.7.3 ImpactsofPortCityontheMorphologynearthePort 70

4.2 BiologicalEcologicalConditions 71

4.2.1 CoralReefs 71

4.2.2 Seagrassbeds 73

4.2.3 Softbottommacrozoobenthos 73

4.2.4 Endangeredspecies 74

4.2.5 Impactoffishinggrounds/breadinggrounds/spawninggrounds 75

4.3 Socioculturalimpacts 78

4.3.1 Aestheticandrecreationalvalue 78

4.3.1.1 AerialViewsofColomboPortCityinRelationtoImportantLandmarks 78

4.3.1.2 GeneralPrinciplesofMassingAesthetics 80

4.3.1.3 HeightofPortCityBreakwateranditsVisualImpact 80

4.3.1.4 TheOpenSpaceConceptofPortCity 81

4.3.1.5 TheCanal 83

4.3.1.6 Aestheticsoflandfill 84

4.3.2 FisheryandAquaculture 84

4.3.2.1 Areasoffishinggroundsandaquaculturedirectlyimpactedbytheprojectduringdredgingandreclamationandtheirimportancetothelocalandregionalsocioeconomy

84

4.3.2.2 Areasoffishinggroundandaquacultureindirectlyimpactedbytheprojectduringconstructionduetoincreasednoiselevelsinthewatercolumnsorthroughthereleaseofsuspendedsediments,increasedlevelofpollutantsorchangedcurrentpatterns.

84

4.3.2.3 Valueoffisheryandaquacultureimpactedbytheproject 84

4.3.2.4 Employmentinfisheryandaquacultureimpactedbytheproject. 85

4.3.2.5 Impactsonfoodfishandornamentalfishcatches(quantityanddiversity),fishingseasons,economicgainstofishercommunities

85

4.3.2.6 Proposedsocioeconomicbenefitsprogramduetodisturbancesoffishingactivities(ifany)

85

4.3.3 Employment 86

4.3.3.1 Descriptionandassessmentoftheeffectsoftheprojectontheemploymentopportunities.

86

4.3.3.2 Socioculturalandsocioeconomicbenefits(otherthanemployments)tothelocalpeople

87

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4.3.4 Transportationofquarrymaterial 87

4.3.5 Demandforquarrymaterial 88

4.3.6 Handlingandstockpilingofmaterial 89

4.3.7 Culturalandarchaeologicalissues 89

4.3.8 Noiseandvibration 89

4.3.9 Navigation 92

4.3.9.1 Safetyrequirementduringconstruction 94

4.3.9.2 Safetyrequirementspostconstruction 95

4.3.9.3 Postconstructionmodificationstoshippinglanesandanchorageareas 96

4.3.9.4 Safetyrequirementsforsubmergedcablesandpipelinesduringconstruction 96

Chapter5:ProposedMitigationMeasures

5.1 IntroductiontoMitigatoryMeasures 01

5.2 MitigatoryMeasuresAdoptedintheDesignPhase(MitigationbyDesign) 01

5.3 MitigationMeasuresPhysicalResources 02

5.3.1 DredgingSite

5.3.1.1 DredgingofSandandTransportation 02

5.3.2 ReclamationSite 03

5.3.2.1 MitigationontheCoastalEnvironment 03

5.3.2.2 MitigationforTransportbySeaofDredgedSandintheDredger 03

5.4 MitigationMeasures:BiologicalandSocioCulturalResourcesincludingFisheries

5.4.1 MitigationofImpactsonBiological&SocioCulturalResourcesatDredgingSites 04

5.4.1.1 ImpactsfortheSensitiveHabitats 04

5.4.1.2 ImpactsofBreadinggrounds/Spawninggrounds 04

5.4.1.3 Impactstothesoftbottommacrozoobenthos&endangeredspecies 04

5.4.1.4 Suspendedsedimenteffectsonsessile,slowmovinginvertebrates&fish 05

5.4.1.5 Suspendedsediment(turbidity)effectonphytoplankton&otheraquaticplants 05

5.4.1.6 Impactforwaterquality 06

5.4.1.7 MitigationofImpactsonfisheries 06

5.4.1.8 MitigationthroughaccesstoSLLRDCborrowarea 07

5.4.1.9 Methodologyforassessingproposedincomesupport&benefitsprogrammeforpotentialincomelossbyfisherman

07

5.4.2 ReclamationSite 08

5.4.2.1 MitigationofAccidentsduringTransportofSandforReclamation 08

5.4.2.2 MitigationofImpactsonRoadSurfaceduetoTransportationofMaterial(QuarryMaterial,ArmourRocketc.,)forProtectionWorks

08

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5.4.2.3 MitigatoryMeasuresforImpactsduetoHandlingandStockpilingofQuarryMaterials

11

5.4.2.4 Noiseandvibrationcontrolmeasures 12

5.5 MitigationMeasuresBiologicalEcologicalResources 13

5.5.1 ReclamationArea: 13

5.5.1.1 Proposedsewageandwastewatertreatmentsystems,solidwastedisposalmethods.

13

5.5.1.2 MitigationoftheImpactsonBeiraLake 14

5.5.1.3 Possiblemitigationmeasurestominimizeblockageofstormwateroutlets 16

5.6 RiskManagementandDisasterMitigation 20

5.6.1 MarinePollutionandOilSpillagearisingfromaccidents 21

5.6.2 Collisionsofvessels 22

5.6.3 Sealevelrelatedhazards 22

5.7 MechanismforimplementationoftheMitigatoryMeasures 22

Chapter6:ExtendedCostBenefitAnalysis6.1 Introduction 01

6.2 IdentificationofPotentialImpacts 01

6.3 MultipliereffectsandLongtermOutcomes 02

6.4 ExtendedCostBenefitAnalysis(CBA) 03

6.4.1 ExtendedCostBenefitAnalysisforthereclamationstage 04

6.4.1.1 BenefitStreams 04

6.4.2.1 CostStreams 07

6.4.2 ExtendedCostBenefitAnalysisfortheCPC 07

6.4.2.1 Economicbenefits 08

6.4.2.2 Economiccosts 08

6.4.2.3 Others 08

6.5 OverallAssessment 09

6.6 SummaryofCBA 11

6.7 SensitivityAnalysisNPV 12

6.7.1 Reclamationand20yearsofBusinessOperations 13

Chapters7:Environmentalmanagementplan

7.1 PurposeofanEnvironmentalManagementPlan 01

7.2 ImplementationofMitigatoryMeasures 01

7.3 ImplementationofMonitoringProcedures 01

CECBSEIAReportProposedColomboPortCityDevelopmentProjectDecember2015Pageix

7.4 InstitutionalArrangementsforComplianceMonitoringandImpactConfirmationMonitoring

01

7.5 EnvironmentalMonitoringProgramme(EMoP) 02

Chapters8:Conclusion

SEIAReportProposedColomboPortCityDevelopmentProjectDecember2015Pagex

Volume2oftheSEIAReport LISTOFANNEXES

AnnexI :TermsofReference(ToR)AnnexII :ReferencesAnnexIII :SourcesofdataandInformationAnnexIV :ListofpreparersincludingtheirworkallocationAnnexV :StructuredQuestionnaireusedforInterviewsAnnexVI :Listofpersonsandorganizationscontacted

AnnexVII :Maps,charts,tables,layoutplanandotherdetailsAnnexVIII :ApprovalsreceivedfromGovernmentAgencies.

SEIAReportProposedColomboPortCityDevelopmentProjectDecember2015Pagexi

Volume2oftheSEIAReportAPPENDICES

AppendixI :ProposedColomboPortCityMasterPlan

Appendix2 :ArchaeologicalImpactAssessmentReport

Appendix3 :AssumptionsfortheExtendedCostBenefitAnalysis

Appendix4 :CBACalculations

Appendix5 :AssumptionsApprovedEnvironmentalManagementPlan(2014)

CECBSEIAReportProposedColomboPortCityDevelopmentProjectDecember2015Pagexii

ABBREVIATIONS

ADB AsianDevelopmentBankAG AttorneyGeneralANZECC AustralianandNewZealandEnvironmentandConservationCouncilARs ArtificialReefsBOI BoardofInvestmentBRT BusRapidTransit CA ConcessionAgreementCBA CostBenefitAnalysisCBD CentralBusinessDistrictCBOs CommunityBasedOrganizationsCCA CoastConservationActCCCC ChinaCommunicationsConstructionCompanyCC&CRMD CoastConservationandCoastalResourcesManagementDepartmentCCD CoastConservationDepartmentCEA CentralEnvironmentalAuthorityCEB CeylonElectricityBoardCHEC ChinaHarbourEngineeringCompanyCMA ColomboMetropolitanAreaCMC ColomboMunicipalCouncil CMP ComplianceMonitoringPlanCMR ColomboMetropolitanRegionCPC ColomboPortCityCPCDP ColomboPortCityDevelopmentProjectCPEP ColomboPortExpansionProjectCPTU PeizoconeTestCPUE CatchperUnitEffortCRMP CoastalResourcesManagementPlanCSD CutterSuctionDredgerCSH ColomboSouthHarbourCZMP CoastalZoneManagementPlanDFAR DepartmentofFisheriesandAquaticResourcesEIA EnvironmentalImpactAssessmentEMC EnvironmentalMonitoringCommitteeEMP EnvironmentalManagementPlanEMoP EnvironmentalMonitoringProgrammeETA EstimatedtimeofArrivalFADs FishAggregatingDevicesFDI ForeignDirectInvestmentFEM FiniteElementMethodGCWMP GreaterColomboWastewaterManagementProjectGFA GrossFloorAreaGFG GalleFaceGreenGIS GalerkinInterfaceStabilization

CECBSEIAReportProposedColomboPortCityDevelopmentProjectDecember2015Pagexiii

GND GramaNiladhariDivisionGOH GrandOrientHotel GPS GlobalPositioningSystemGSMB GeologicalSurveyandMinesBureauGSMBTS GSMBTechnicalServicesGoSL GovernmentofSriLankaICT InformationTelecommunicationTechnologyIEE InitialEnvironmentalExaminationIMO InternationalMaritimeOrganizationJCT JayeContainerTerminalsJICA JapaninternationalCorporationAgencyJLL JonesLangLasalleLWOST LowWaterOrdinarySpringTideMEPA MarineEnvironmentalProtectionAuthorityMoM&WD MinistryofMegaPolisandWesternDevelopmentMMA MinesandMineralActMEPA MarinePollutionPreventionActMoU MemorandumofUnderstandingMSL MeanSeaLevelMTB MechanizedTraditionalBoastsNARA NationalAquaticResources,ResearchandDevelopmentAgencyNBRO NationalBuildingResearchOrganizationNBSB NonMechanizedBeachSeineBoatNBT NationBuildingTaxNFD NegamboFisheriesDistrictNEA NationalEnvironmentalActNTRB NonMechanizedTraditionalBoastsNWSDB NationalWaterSupplyandDrainageBoardOBM OutboardMotorODA OfficialDevelopmentAssistanceOFRP OutboardMotorFiberReinforcedPlasticBoats PAA ProjectApprovingAgencyPRDA ProvincialRoadDevelopmentAuthorityRDA RoadDevelopmentAuthoritySCARC StandingCabinetAppointedReviewCommitteeSEIA SupplementaryEnvironmentalImpactAssessmentSLLRDC SriLankaLandReclamationandDevelopmentCorporationSLPA SriLankaPortsAuthoritySLT SriLankaTelecomSp. NonidentifiedspeciesofagenusSpp. NonidentifiedspeciesofthesamegenusSPT StandardPenetrationstestSTPM SuctionTubePositionMonitoringTEC TechnicalEvaluationCommitteeTIA TransportImpactAssessment

CECBSEIAReportProposedColomboPortCityDevelopmentProjectDecember2015Pagexiv

TIWTE TianjinResearchInstituteofWaterTransportEngineeringTOR TermsofReferenceTSHD TrailingSuctionHopperDredgerTSS TotalSuspendedSolidsUAU UnderwaterArcheologyUnit UDA UrbanDevelopmentAuthorityUoM UniversityofMoratuwaVAT ValueAddedTax

CECBSEIAReportProposedColomboPortCityDevelopmentProjectDecember2015ESPage1

EXECUTIVESUMMARY

SUPPLEMENTARYENVIRONMENTALIMPACTASSESSMENTSTUDY:COLOMBOPORTCITYDEVELOPMENTPROJECT

Introduction

This Supplementary Environmental Impact Assessment (SEIA) study is carried out for theexpansionofthereclamationareaoftheColomboPortCityprojectfromanareaof200ha,whichwas approved by the Project Approving Agency, the Department of Coast Conservation andCoastalResourcesManagement,subsequenttoanEnvironmentalImpactAssessment(EIA)studythatwassubjecttopubliccommentsviaanoticeplaced innewspaperson11thJune2011,toanaltereddesigncomprisinganareaof269ha,togetherwiththeimpactsofextractionofsandfromthe identifiedborrow areas andquarrymaterial required for the entire landfill and protectiveworks. The abovementioned EIA for 200ha did not cover environmental impacts of sandextractionasaseparateand inconclusive InitialEnvironmental ImpactAssessment (IEE)processwasadoptedbytheSriLankaPortsAuthorityinthisrespect,andthislacunaisbeingaddressedviathisSEIAstudy.NotwithstandingtheEIAof2011for200habeingapprovedafterthepublicreviewprocess,thisSEIAstudycoverstheentirereclamationfootprintandtheextractionofquarrymaterialandsandrequiredfortheentireproject.TheProjectProponenttothisSEIA,theMinistryofMegapolis&WesternDevelopment,appointedtheCentralEngineeringConsultancyBureau(CECB)asLeadConsultanttoexecutethisSEIAstudy.ThisSEIAisguidedbythefollowingimportantprinciples:

(a) TermsofReferencefortheSEIAissuedbytheDepartmentofCoastConservationandCoastalResources Management (CCD) to the Ministry of Urban Development, Water Supply &Drainage on 30th August 2015 titled: Terms of Reference For the SupplementaryEnvironmental Impact Assessment Report of the Reclamation, Dredging, Construction ofProtection Structures such as Breakwaters and Revetments and Extraction of Sand andQuarryMaterial required for reclamationandprotectionworks forproposedColomboPortCityDevelopmentProject

(b) TheTermsoftheAgreemententeredintobetweentheMinistryofPortsandShipping,actingonbehalfoftheGovernmentofSriLanka(GOSL),andCHECPortCityColombo(Pvt)Ltd(theProjectCompany), signedon16th September2014 andextendedon17th September2015(hereafterreferredtoastheGOSLAgreement)andtheConcessionAgreementattachedtothe said GOSL Agreement as a binding annexure (hereafter referred to as the ProjectAgreement), stipulates inter alia that the Sri Lanka Ports Authority (SLPA)/GOSL isresponsibleforsecuringtherequiredenvironmentalpermitsandapprovals.

(c) TheDecisionoftheCabinetofMinisterson17thJune2015thatauthorizedtheUDAtostepintotheroleofSLPAand,pendingtherequiredlegalformalitiesbeingfinalized,theMinistryof Urban Development, Water Supply and Drainage would to take responsibility forimplementingmattersconnectedtothisSEIAastheProjectProponent.WiththeUDAbeingassignedunder theMinistryofMegapolis&WesternDevelopment, thisMinistryhasnowtakenoversuchresponsibilities.

(d) IntermsoftheProjectAgreement,theColomboPortCitywillbedeveloped intwodistinctphases,withrequiredenvironmentalapprovalsobtainedintwophasesaswellasfollows:


Phase1EIA:ForReclamation,sandextractionandconstructionofcoastalstructurestoprotectthelandfillandlandscapingaestheticsfortheproposedColomboPortCity.ThisSEIA is a continuation of work connected to Phase 1 and being carried out as asupplementary to theapprovedEIA for200ha.Reclamationworkswill recommenceuponthisSEIAreceivingrequiredapprovals.

Phase2EIA:Constructionofthebuildingsand infrastructureofthePortCity.ThisEIAstudy will be based on the concept master plan and infrastructure requirementssubmitted to theUDA (and described in this SEIA in Chapter 2). The construction ofpermanent structures/built environment on the landfill will take place only uponreceivingnecessaryapprovalsforthePhase2EIAstudy.

OriginsofColomboPortCityExpansion of the Colombo CentralBusinessDistrict (CBD) by reclaiming the seawas originallyproposed under the Governmentinitiated Western Region Megapolis Regional Structure Plandated July 2004, prepared by the Singapore based urban planning consultants, CESMAInternationalPte.Ltd.AccordingtotheColomboCoreAreaPlanofthePlan(referredtoastheCESMAPlan),theColomboCBDwastobeexpandedtoreleaselandsforrealestatedevelopmentby:

(a) Reclaiming145haoflandfromtheseatotheSouthoftheproposedColomboSouthPortbreakwaterby2010(i.e.thecurrentlocationofColomboPortCity)

(b) Relocating port related activities at the existing Jaye Container Terminals (JCT) to theColomboSouthPort,releasingaround76haoflandforrealestatedevelopment

(c) Creating221ha (145ha+76ha)ofnewwaterfront landsadjacent to theColomboPort,which includesamarketable landextentof139.5ha, tomeet the realestateneedsofColomboCBDupto2030

In comparison, the Colombo Port City project proposes to create a total land area of 269 haincludingamarketablelandareaof173ha.Therefore,themarketablelandenvisagedunderPortCity is24%higher than the139.5ha landextentenvisagedunder theCESMAPlan,within thesamegeographicarea.Moreover,theCESMAPlanenvisagedtheSouthPortreclamationandJCTareadevelopmentstocommence in2010andmeetthecitys landrequirementsfor20yearstill2030.TheColomboPortCitydevelopmentplan is intended to spana25yearperiodending in2040.Accordingly, under both plans, the average land extent to be released for developmentworksouttoaround7haperannum.An importantaspect that shouldbenotedwhen comparing theCESMAPlanand theColomboPortCityProject is that,under the latter, theentiretyof theproposednew landarea is tobecreatedbyreclamationwithoutanyinterferencewithand/orrelocationofexistinginfrastructure,whereasundertheCESMAPlanpartofthenew landwastobecreatedbyrelocationofexistingfacilitiesattheJayeContainerTerminalsTherefore,creatingalandfillforrealestatedevelopmentadjacenttothePortofColomboundertheColomboPortCityProject isnotanewconcept. It isan initiativethatfallswithinthebroadparameters of themaster plans developed by CESMA approximately 11 years ago,which arecurrentlybeingupdated.Ifa largescalereclamationprojectwastobeundertakenwithminimum impactto thecoasttocapitalizeontheadvantageofthesitebeinganareawheresandwouldnaturallyaccumulate,theonly locationtechnicallyandfinanciallyfeasible iswithintheshadowofthesouthernarmofthebreakwater of the newly built Colombo South Port Project. The new South Port breakwater,


fundedbytheADB,wasthemostchallengingCoastal/PortEngineeringprojectundertaken inSriLanka.Apartfromthebreakwaterextending1.5kmperpendiculartothebeach,thusactingasaprotectivebarriertoPortCity,dredgingfortheSouthPortinvolvedanareaofabout820haandthereclaimedareacoveredabout340ha.ThisSEIAreportwilldemonstrate thatColomboPortCitydevelopmentscoveredunderthisSEIAhasfarlessenvironmentalimpactsthantheColomboSouthPort.Colombo Port City A Collaboration between the Project Company and Government of SriLankaThe CPC project was initially conceived as a public sector/Government funded project to beundertakenbyTheSriLankaPortAuthority(SLPA).Consequently,theSLPAcommissionedat itsowncostanInitialTechnicalFeasibilityStudyinApril2010forthereclamationoflandSouthofthenewbreakwater.AroundJune2010,anEIAstudywascommissionedbySLPAalsoatitsowncost through theUniversityofMoratuwa (UoM) for a reclamation areaof 200ha. InOctober2010, theUDAcompletedamasterplan studybasedon theabovementioned InitialTechnicalFeasibilityStudyandsubmittedaProjectProposaltotheSLPAforconsideration.

InApril2011,basedonanunsolicitedconceptproposalsubmittedbyChinaCommunications&ConstructionCompany(CCCC),theparentoftheProjectCompany,theGovernmentofSriLanka(GOSL)decidedtonottocommitpublicfundstoconstructthePortCityProjectandproceededtonegotiatewithCCCC to implement theprojectentirelyasa foreigndirect investment,withnofinancialguaranteesbytheGovernmentontheinvestment.

After a 2 year period of negotiationwith a Standing CabinetAppointed Review Committee(SCARC) and a TEC represented by 16Government organizations, on 16th September 2014 anAgreement (referred to hereafter as the Project Agreement)was entered into between theProjectCompanyand theSecretary to theMinistryofHighways,PortsandShipping (acting forand on behalf of theGOSL). The Agreementwas signed and the projects constructionworksceremonially inaugurated on the same day in the presence of the President of the PeoplesRepublicofChinaandthePresidentoftheDemocraticSocialistRepublicofSriLanka,duringtheChinesePresidentsStatevisittoSriLanka.

DuringtheperiodleadingtothesigningoftheProjectAgreementandintermsoftheAgreementitself, the responsibility for carryingout the required environmental studies andobtaining therequiredpermitsandconsents in relation to the reclamationandsandextractionhasbeen theresponsibilityoftheSLPA,and,intermsofClause3oftheabovementionedGOSLAgreementandthe Project Agreement annexed thereto, all rights, obligations and liabilities of the SLPA aredeemedasrights,obligationsandliabilitiesoftheGOSL.

TheProjectAgreementstatesthatofthetotalmarketable landareaatPortCity(i.e. landtobesoldor leasedunderapplicable laws inSriLanka to thirdparty investors fordevelopmentafterallowingforpublicparks,roadsandbeaches)shallbenolessthan170ha.Ofthis,nolessthan62hawillbeallocated to theGOSL/SLPA (tobereplacedbyUDA)andno less than108hawillbeallocated to the Project Company. It should be noted that the allocation ofmarketable landbetween theProjectCompanyandGOSLwouldbecarriedoutonanequitablebasiswhere theProject Company will first select a marketable land extent of less than 10 ha and then theGovernmentwill select a similarextent.Thisprocessof alternative selectionswillbe repeateduntilsuch timeoneof thePartieshas reached themaximumamountofmarketable land tobeallocatedtothatParty.Therefore,themarketablelandsallocatedbetweentheGovernmentandProjectCompanywillbeinnoncontiguousblocks.Notethatthepublicareassuchasroads,parks,beacheswillbeundertheGOSL/UDA/CMC


Inconsiderationofreceivingitsshareofthecommerciallydevelopableland(63hawithacurrentmarketvalueofRs225billion),theSLPA/GOSLwouldberesponsible forensuringthesupplyofutilities(water,power,sewerage)totheboundaryofthereclamationsiteatasuitableconnectionpointandwithsufficientcapacityasandwhenneededand improvethetransport infrastructureleading to the site. This is a common arrangement in priority investment projectswhere thedevelopermeets the cost of all common infrastructureswithin the site and the Governmentagencies concerned provide infrastructure connections to the periphery (e.g. industrial parks,housingprojectshavebeenimplementedinSriLankaonthisbasis)

ObjectiveoftheSEIAReportThetwoStageEIAProcess

Several important issueswereraised in the InitialTechnicalFeasibilityStudyof2010and theEIAstudyof2011forthe200hareclamation.Theywere:(a) TheproposedPortCityhastobedevelopedintwostages.Thefirststagewillbethelandfill,

the offshore breakwater and the coast protection for the protection of the landfill. TheSecondStagewillbetheplanneddevelopmentofPortCitywithallinfrastructureandsupportservices

(b) If there is amodification to the overall design, then environmental consultantswould becommissionedtopresentanaddendumtotheEIAtoconfirmthatthechangesandresultantenvironmental impactswillnotmake a significant change to the findingsof the initialEIAcompletedfor200ha.IfchangestothedesignaresignificantthenafreshEIAwillbecarriedout.

(c) AdetailedEIAwillhavetobecarriedoutfortheinfrastructuredevelopmentplanofthePortCityandtheproposeddevelopmentsonthereclaimedland.

The objective of this Supplementary EIA is a consequence of (b) above: that is, to capture thedesignchangessincethecompletionoftheEIAof2011andtosubjecttopublicscrutinytheaspectscovered in the Addendum to the EIA of 2013 and subsequent changes. It is noted that theAddendumtotheEIAof2011wasnotopentopubliccommentsin2013.Varying approaches can be undertaken for environmental studies. It is the prerogative of theGovernmentpolicymakersledbytheProjectApprovingAgency(PAA)todecideonthescopeoftheenvironmental studies. Accordingly, the respective Government appointed review committeesevaluatingthePortCityprojectrecommendedtotheCabinetofMinisterstoadheretoa2stageEIAprocess forPortCity,andaccordinglyprovisionwasmade for suchacourseofaction in theProjectAgreementsignedbetween theGOSLandtheProjectCompany.Therefore,asmentionedearlier,ColomboPortCitywillbedeveloped in twodistinctphases,with requiredenvironmentalapprovalsobtainedviatworelatedEIAstudies.ThisSEIAisthereforetobereadasaSupplementarytotheapprovedEIAof2011.ThePhase2EIAfor the constructionof thebuildings and infrastructureof thePortCity, including traffic impactassessmentwillcommenceinparallelorimmediatelyaftercompletingthisSEIAstudy.EnvironmentalApprovalsleadingtothecurrentSEIATheDepartmentofCoastConservation&CoastalResourcesManagement (CCD),as theProjectApproving Agency (PAA), made the EIA report of April 2011 for 200ha available for publiccommentsasrequiredunderSection16Subsection2(b)oftheCoastConservationActNo57of1981.Inthisrespect,theCCDplacedadvertisementsinmajornewspaperson21stJune2011inall


three languages informing theavailabilityof the report for reviewat11 locations including theCEA,UDA,CMC,GSMBetc.Publiccommentsreceivedwererespondedtoasnecessary.InviewoftheinvestmentproposalsubmittedbyCCCC,in2012proposingareclamationareaof233ha,anAddendumreporttothe2010EIAwaspreparedbyUoMandsubmittedviatheSLPAtotheCCDinSeptember2013.ThemainobjectiveoftheAddendumreporttotheEIAwastoinformthePAAofadeviationwhichhastakenplacetoexpandtheprojectfrom200hato233ha.Thiswasacceptedandon23rdOctober2014,theCCDissuedaPermitforaDevelopmentActivityunderPartIIISection14oftheCoastConservation&CoastalResourceManagementActNo57of 1981, for reclamation, dredging and construction of breakwaters, revetments. This permitcontained42conditionsofwhichconditionNo40statesASeparateapprovalshouldbeobtainedfromtheCEAforextractingsandfromtheoffshoretobereclaimedtheproposednearshoreareaandsubmittedtothisdepartmentpriortothecommencementoftheconstruction.Inparalleltotheaboveprocess,theSLPAcommissionedNARAtocarryouttwoIEEstudiesfor2sand borrow areas for which the GSMB issued exploration licenses to SLPA for purposes ofsecuringsandforthereclamationworkstobecarriedoutunderthePortCityProject.TheCEAasthe PAA for this study provided the Terms of Reference for the IEE. Obtaining the requiredconsentsforthefishermenscompensationprogramwasaprerequisitefortheCEAtograntthenecessarypermits todredge sand.Despitealmostayearofattempting toobtain the requiredconsents,theSLPAencounteredseveralroadblocksinfulfillingthistask.Inthecircumstances,theSLPA could not obtain the required sand extraction permits from the CEA for the identifiedborrow areas as stipulated in thedevelopmentpermitof theCCD and in termsof theProjectAgreement,whichassignedthisresponsibilitytotheGOSL/SLPA.The Project Company commenced sand extraction and reclamationworks on 16th September2014consequenttotheGOSLswishtoinauguratetheprojectatthetimeoftheStatevisitbythePresidentofChinaandintermsofClause4.1oftheProjectAgreement,whichstatesthatonandfromthedateofthisAgreement,theProjectCompanyshalldesignandcarryoutthereclamationworks in accordance with the Concession Agreement. In addition, the Project Company wasgranted written permission by the SLPA to dredge the Colombo Harbour navigation channelpending(asunderstoodbytheProjectCompany)thefinalizationofthetwoIEEstudiesbyNARAforidentifiedsandborrowareas.

Under the above circumstances,where in terms ofArticle 12.1 of the ProjectAgreement theobligation to obtain the necessary/applicable licenses and permits is a responsibility of theSLPA/GOSL, the ProjectCompanyhas taken theposition that sand extraction and reclamationworkscommencedon16thSeptember2014onthebasisofprovisionscontainedintheAgreementitselfandonthebasisofwrittenclearancesprovidedbytheSLPA.Subsequently, the new Government elected on 8th January 2015 appointed an EvaluationCommittee to review the Port City project on 30th January 2015. On the basis of certainconclusionsreachedbythisCommittee(withoutanyconsultationwiththeProjectCompany),on4thMarch2015,theCabinetofMinistersmadeadecisiontosuspendtheconstructionworksofthePortCityProject.ThisdecisionwascommunicatedtotheProjectCompanybytheSecretaryMinistryofPorts,Shipping&Aviationon6thMarch2015.Thesaidsuspension isoperative todate.During theperiodofsuspension, theGovernmenthasmadethefollowingdecisions,inconsultationwiththeProjectCompanywherenecessary:


(a) TheGOSLAgreementof16thSeptember2014wouldbeamendedtointeraliapermittheUDAtostepintotheroleoftheSLPAandtheenddateofthesaidGOSLAgreementwouldbeextendedby6monthstointeraliafacilitatethesaidtransition

(b) Thenecessaryamendments to theProjectAgreement shallbeeffectedviaa tripartiteagreement between theGOSL represented by theMinistry in charge of theUDA (theMinistryofMegapolisandWesternDevelopment),theUDAandtheProjectCompany.

(c) A Supplementary Environmental Impact Assessment (SEIA) shall be carried out forexpansionofthereclamationarea from200hatoanaltereddesignof269hatogetherwith the impacts of extraction of sand from the identified borrow areas and quarrymaterialrequiredforthealtereddesign.

ThisSEIAisaconsequenceoftheaforesaiddecisionstakenbytheGovernment.

ObjectiveandJustificationoftheProject

ThelocationofPortCitytakesadvantageoftwinattractionsofproximitytotheColomboCBDandoceanfront living in a carefullymasterplanned area. This is a tried and tested formulaby citycentres thataspire toposition themselvesasdestinations for tourism, living,working,shoppingand entertainment. Also, the Colombo CBD has limited oceanfront lands available fordevelopment, especially in view of the land area facing Galle Face, formerly occupied by theDefenceforces,nowbeingallocatedtoShangriLaandITCHotels.Presently,Colombo isnotaDestination,butprimarilyatransitpointfortourists.Theaveragestayby tourists is roughly1.6nights forColombo,which is too lowby internationalnorms. (Incomparison,averagestayatabeachlocationofatypicaltouristtoSriLankaisaround5.5nights).ThelackofvibrancyofColombointermsofshoppingandentertainmentisasignificantdeterrenttoattractingSouthandEastAsiantouriststoSriLanka.SriLankastouristarrivalsbeingimpactedby cyclicality (withhigher arrivalsbeing recordedduring the traditionalwinter season) canbelargelyattributedtoColombonotbeingasoughtaftertouristdestination.

InvestmentDetails&StrategicObjectivesofColomboPortCityTheobjectivesofColomboPortCityasformulatedbytheProjectCompanyareasfollows:

TofosterintegratedoceanfrontlivingwithintheCBDtoprovidehighqualityoflifethroughworldclass office, residential and recreational spaces that will attract tourists,professionals,entrepreneurs,managersandretirees.

PositionColomboasthemostliveablecityinSouthAsia To create a regional business hub, a citywith a distinct brandwith high quality public

spaces and infrastructure facilities, attractive to local and international developers andinvestors

Tocreatea tourismhubwithauniquecharacter thatreflects thedistinctive localcultureandtheexistingurbanfabric

Todesignandbuildasustainableurbancityspace thatadapts to localclimate,createsacomfortablemicroclimateandmakeefficientuseofenergyresources

Colombo cannot become a destination that appeals to the international business travellers ortouristswithadhocand fragmenteddevelopmentsandwithoutdistinctpositioning.Therefore,Colombo Port City provides an opportunity for the old and historic part of Colombos centralbusinessdistricttoseamlesslyinterfacewithamodernplannedmetropolislikenootherinSouthAsia.


TheinvestorinPortCity,CCCC,isaFortune500(No187)andpubliclistedcompanyinHongKongandamongtheworlds largestconstructionandrealestatecompanieswithassetsofover$100billion.ItisalsotheworldslargestdredgingcompanyhavingundertakeniconiclandreclamationprojectsinChinaandthemaindredgingcontractorfortheworlds2largestreclamationprojectsthe new airport projects atHong Kong andMacau. The total foreign direct investment in thereclamation stage of the Port City envisaged at around $1400 million. CCCC has plans toundertake further investments ina realestateproject inPortCityupon the completionof thephase1investmentinreclamationandthephase2EIA.

TheProjectCompanyhasalsohiredworldrenowned internationalconsultantsworkingtogetherwith localspecialiststoadviseonvariousaspectsconnectedtothedevelopment:Fore.g:AtkinsofUK:Masterplanreview;AecomofUSA:Utilitydesign,roaddesignand landscaping;SwecoofSweden: Overallmaster planning; Jones Lang LaSalle (JLL) and CB Richard Ellis (CBRE) of UK:financialandmarketingprefeasibilityandCDRInternationalofTheNetherlands:technicalreviewofdesignsofthecontractor.

Theinvestmentrequiredforthebreakwaterandotherprotectivestructures(bothsubmergedandabovewater)of thePortCityProject isaround$225million.Therefore, inorder torecover thecostof thebreakwaterand theallocationof63haofmarketable land togetherwith96haofcommonarea land to theGovernment (a totalof159haor59%outof269ha), thePortCityproject,ifmadesmaller,wouldnotbefinanciallyviabletotheinvestor.Statedanotherway,theProjectCompanywill retainonly41%of the reclaimed landextent formarketing todevelopers(110haofnoncontiguousland).

It isnoted thatPortCitywillhavearound45haofpublicparks (9 times the sizeofGalleFaceGreen)anchoredbya22haCentralParkandawellprotectedbeachandsocalledlagoon(waterareabetweenbreakwaterandbeach) suitable forswimmingandwater recreationalactivitiescurrentlynotavailabletoresidentsinColomboCBD.Thereclaimedlandareaisalsoafunctionofthe lengthoftheColomboSouthPortbreakwaterandtakesadvantageof the full lengthoftheshadowofthebreakwater.

FutureDevelopments

Permissibledevelopmentswithinthe269reclaimed landareawillbeInkeepingwithSriLankasplanning andbuilding regulations.Developments proposedunder the conceptmasterplan forPort City submitted to the UDA for preliminary planning clearance include commercialestablishments,residential,healthandeducational institutes,smallbusinessesandservices,artsand entertainment, community developments, marina and convention facilities. No industrialactivitieswillbeallowedwithinPortCity.Colombo Port Citywill be implemented over a 25year period. There is no future addition orexpansionenvisagedbeyondthe269haareaafterthereclamationworkscoveredunderthisSEIAstudyiscompleted.The Hon. Attorney General has opined that the UDA cannot be a signatory to the ProjectAgreementreplacingtheSLPAasitlacksthelegalcapacityundertheUDAAct.Uponcreationofnewlandbyreclamationofthesea,theentirePortCitylandwillbegazettedundertheSriLankaLandsOrdinance,a subjectmatter fallingunder thepurviewofHisExcellency thePresident intermsofthesaidOrdinance.TheUDAcouldthereforedeclarethelandreclaimedbythePortCityProject as an Urban Development Area only after the reclamation process is over and adeclarationismadeundertheLandsOrdinance.


Accordingly, thesovereignrightsof theGovernmentofSriLanka including therightofeminentdomain,isapplicablewithinthereclaimedland.

OutlineofStudiesCarriedOut

A comprehensive review of the modelling work and preliminary designs carried out for theFeasibilityStudyofPortCitywereundertakenduring thepreparationof thisSEIA.This includesseparatecomprehensive2Dand3Dphysicalmodelteststudiesandnumericalmodellingstudies,which includes interpretationof coastal evolution and siltationdue toproposeddevelopment,sediment transport modelling considering dredging and reclaiming and interpretation ofcontaminantconcentrationattheBeiraLakeoutfallwiththeproposedmitigationmeasures.

Inaddition,groundinvestigationshavebeencarriedoutoveraperiodofmorethantwoyearstobetterunderstand the technical requirements thatwouldneed tobe taken intoaccount in theimplementationoftheproject.Insummary,thefollowingengineeringstudieshavebeencarriedout and reports compiled during the feasibility and environmental study phase of this projectusingtheservicesoflocalandinternationalexperts/organizations:

WaveclimatemodellingLHICoast&Water(LHI) Hydrodynamicmodelling(LHI) Wavedisturbancemodelling(LHI) Sedimenttransportmodelling(LHI) Sedimentdispersalmodelling(LHI) Shoreprofilesurvey(LHI) 2D Stability physicalmodel Test onOffshore Breakwater and Revetment forMarina

TianjinResearchInstituteofWaterTransportEngineering(TRIWTE) 3DPhysicalModelstudyTest SouthPartandNorthPartNanjingHydraulicResearch

Institute(NHRI) Analysis(numericalmodelling)ofCoastalEvolutionandSiltationTRIWTE NumericalmodellingofWaterExchangeTRIWTEandLHI GroundInvestigationsForthHarbourDesignInstitute Waterqualitysamplingandanalysis(NARA) Assessmentof inlandquarrymaterialavailability,permits,transportationroutes, impacts

etc.(GSMBTechnicalServices) Modelandecologicalstudiesatreclamationarea(UniversityofMoratuwa) ImpactsonBeriaLakeoutfallandstormwaterdrainoutletsimpactsduetotheproposed

development,including3Dnumericalmodel(CDRInternational,Netherlands)OtherimportantstudyreportsthisSEIAbuildsoninclude:

ColomboPortEfficiency&ExpansionProject,Environmental ImpactAssessmentof2005carriedoutbyScottWilson.

EIAStudy forProposedColomboPortCity (2011)andAddendum thereto (2013)by theUniversityofMoratuwa,

SummaryofImportantFindingsonCoastalErosion

TheSouthPortProjectbreakwaterextends2km in lengthperpendicular to the coast.This canpotentiallycreateerosionnorthofColombo.However,monitoringoverthelast4yearsorsohasconfirmed erosionhasnot takenplace.This ismainlybecauseof sediment supply fromKelani


River, discharged north of the Colombo Port. The construction of Colombo South Port hadincreasedthewaveshadow,extending itnorthwards.Asaconsequencewaveconditions inthisareahadbecomecalmer,andtheshorelinebetweentheColomboSouthPortandtheKelaniRiverhaveremainedstableafterconstructionoftheColomboSouthPortThe Kelani River is believed to contribute some 100,000 to 200,000m3/year to the sedimentbudget of the area. Historically this is believed to have been much higher, perhaps 400,000m3/year, but has declined due to sandmining and development upstream.As a consequencetherehasbeenongoingerosionofthecoasttothenorthoftheKelani.Therefore,sincePortCityisintheshadowoftheColomboSouthPortbreakwater,ithasnoimpactoncoastalerosionnorthofColomboPort.ThecoastalstretchsouthofColomboisstablewithverylittleseasonalchanges.ThenetlongshoresedimenttransportalongthewestcoastofSriLankaispredominantlydirectedtowardsthenorthasaresultofthewaveclimate(SouthWestmonsoonseawavesandswell).Transportrateshavebeendominatedbyswellwaves,withseawavescontributinglittlenettransport.Mostofthenettransportoccursduring the southwestmonsoon season.Howeverduring theNEmonsoon thesedimenttransport(asaresultofwavesfromNorthWest)isusuallydirectedtowardssouthforalimitedperiod.Therefore,PortCityhasnoimpactonerosionSouthoftheColomboPortMoreover,whenconsidertheshorelinechangewiththissedimenttransportrateforlast10years,thereisnosignificantaccretionorerosioninthecoastalstretchnorthorsouthofColomboPort.Thechangesofshorelineofselectedlocationsoverthelast10yearscorroboratethisfact.Whendredging is takingplace for sand,materialmustbe takenaway from theactivedynamiczone,wherewavesdonothavean influenceon the seabed. In the caseofPortCity,dredgingareashavebeenidentifiedonthisbasis.Itmustbeemphasisedhoweverthatthechangeofwaveclimatedue tonatural reasonsmay lead tomovementof sandwhichcan takeplaceanywherearound the island.Accordingly,studiescarriedoutandextensivelydescribed in thisSEIAreportandannexesclearlyestablishthatPortCitywillnotcausecoastalerosion.Four years ofmonitoring of the Colombo South Port Project has illustrated that the turbidityrepresentedby totalsuspendedsedimentnear theKelaniRiveroutfallhasbeenalwaysgreaterthanthemobilepointsaroundthedredgingandreclamationsites(3mobilestation).Thismeansthatthenaturalenvironmenthasagreater impactontheecosystemthanarisingfromdredgingandreclamation.SedimentladenplumeoftheKelaniRivercanhaveanimpactonecosystem.ItisnotedthatthesedimentladenplumefromtheKelaniRivercoverstheSouthPortregionduringheavymonsoonrainyweather.

MaterialRequiredtoConstructPortCityTocompletethePortCityProject,atotalof2.83mncumofquarrymaterialand65mncumofdredgedseasandwillberequired.AllthequarriesidentifiedforthesupplyofquarrymaterialareeitherIMLAorIMLBgradequarries.Hence,suchlicensedquarriesareboundtocomplywiththeenvironmentalregulationsduringtheoperations.PortCitywillobtainquarrymaterialonlyfromindependentIMLAlicensedquarrysupplierswhowillindividuallyobtainrequiredlocalauthority,environmentalandtransportpermits.Sandistobeextractedfrom2areasdesignatedbyGSMBwithexplorationlicensesEL/177dated21st June 2011 (Site 1) and Exploration LicenseNo: EL/281 dated 8thNovember 2013 (Site 2)


issuedtotheSLPA.UnderthisSEIA,environmentalimpactshavebeenascertainedforthesesites,which comprisea combinedareaof100 sq. km (46 sq. km for Site1and54 for Site2) andadredgeable/availablesandquantityestimatedat112mncu.m(44mncumforSite1and68mncumforSite2)oralmostdoublethesandrequirementforcompletionofPortCity.SupplyofQuarryMaterialA total of 11 different quarry sites with required approvals, located in Kaduwela, Hanwella,Padukka,Delgoda andDivulapitiya area,havebeen surveyed forobtaining quarrymaterial forconstruction of necessary structures to protect the reclamation.According toGSMB TechnicalServices estimates, the required quantity of Port Cityworks out to around 43% of the quarrymaterialavailableatthesesites.Furthermore,the11quarrysitesrepresentaround79%ofthetotalregisteredquarriesintheColomboandGampahadistricts.Consequently,theimpactofthisprojectonthenationalquarrymaterialrequirementwouldbenegligibleandthereforenopriceimpact to the construction industryaccording to theGSMBTechnical Services. Itwas revealedduringtheGSMBstudythatmostoftheIMLAcategoryquarriesarenotoperatingduetolackofdemand.Around300sixwheeler trucksand38 tenwheelersare tobeused for transportation from thequarrysitestotheprojectsite.Transportationshallbedonethroughtwosessions,avoidingpeakhours,andviasixdifferentroutestominimizetrafficcongestion.Thetrucksshallbecoveredtoavoidanyspillingoftransportedmaterialorreleaseofdusttotheenvironment. Dust generation during the transportation via unpaved internal roads shall becontrolled by sprinkling water along the roads at regular intervals. Sprinkling water to washquarrymaterialsloadedintrucksbeforeunloadingthematthestockpilingsiteshallminimizedustgenerationduringtheunloading.ThemovementsofthewetreturningtrucksmaycauseSpittingmudalongtheroadsurfacesoutsidetheprojectsite.Washingthetiresofthetrucks,beforetheyaremovingoutoftheprojectsiteshallcontrolthisimpact.There is facility forparking forabout75 trucksaround theportgatewithoutdisturbingmovingvehiclesalongtheroad.Asthegatewillopenat7am,truckswillenterthestockpilingsitethroughtheroadinsidetheport,whichalsomitigatesroadcongestion.During the6monthperiodofconstructionofPortCity fromSeptember16th2014 toMarch6th2015, prior to entering into supply arrangementswith quarry owners, the Project CompanyscontractorensuredthatthesupplierhadavalidMiningLicenseandquantitysuppliedwaswithinallowable limits.Moreover, each quarry sitewas subject to inspection. The same practicewillcontinueupontherecommencementofconstructionofthePortCityProject.DredgingMethodologyNARA, who was commissioned by the Project Proponent to carry out the marine ecologicalstudies and socio economic impacts, and LHI, who carried out studies on shoreline/coastalimpacts,have recommendedguidelines fordredging thataredesigned tominimize impactsonthecoastalarea,ecologyandincomefromfisheries.TheimportantapplicableguidelinesforsandextractionstipulatedinthisSEIAbasedonrecommendationsbyNARAandLHIareasfollows:

1. Usemodern dredgingmethods. It is stated in the SEIA report that 4modern TrailingSuctionHopperDredgerswillbeusedinthedredging.

2. Dredging tooccur3kmbeyond theshorelineandatwaterdepthsof15mormore.The


dredgingat15mdepthswillensurethattherewillbenoimpactoncoastalerosionbasedonnearshoreactivityandthe3kmdistanceswillminimize impactsonfishingroutesandfishingactivities.Moreoverthe3kmminimumdistancewillensurenoimpactonmadalfishing.

3. Obtainnogreater than30%of totalsandrequirement (30%of65mncum) fromSLPASite1andtherestfromSite2.ThisisduetoSite1havingsensitivefishspawningareas

4. Dredgingdepthtobelimitedto2mfromthesurfaceofsedimentonSite1andfromsite2dredgingmay occur at greater depths provided 0.5m of sediment is preserved afterextraction

5. Asmuchaspossible,dredginghastobeavoidedinareashavingfishspawninganduniquehabitat.

6. DredgingtocommencefromSite2initially7. Allowfishermentoengage infishingwithintheallocateddredgingsitesbygivingproper

noticeinadvanceandafterdredgingworkisdonetorecommencefishing.(ThiswillbeinaccordancewithCOLREGregulationsissuedbytheInternationalMaritimeOrganization)

8. Implementan income supportandbenefitsprogram to fishermen (outlined indetail inChapter5ofthisSEIAreportandsummarizedbelow)

IndependentofthisSEIA,asamitigationmeasure,theProjectProponent,MinistryofMegapolis&Western Area Development, has directed the SLLRDC to enter into an arrangementwith theProjectCompanytosupplysandfromtheadjacent100sqkmborrowareaassignedtoSLLRDCforwhichenvironmentalapprovalshavealreadyobtainedfromtheCEAfordredgingsandinlimitedquantitiestomeettherequirementsoftheconstruction industry.Thisborrowarea isestimatedtohaveadredgeablesandquantityof264mncum,thoughsubjecttoexplorationstudiesbeingcarriedout. Ithas been recommended as amitigationmeasure in this SEIA thatonce SLLRDCobtainsrequiredenvironmentalclearancestodredgeitssite,dredgingactivitiesinSite1wouldbereduced even further from levelsmentioned aboveor curtailed altogether.On19thNovember2015,SLLRDChassecuredconcurrencefromtheCEAtodredge4mncumofsandbasedontheapprovedEIAofNovember2007.SLLRDCintendstomakethisquantityavailableforpurposesofPortCityreclamation,pendingcarryingoutfurtherexplorationtosecureclearancesfromtheCEAforextractionofupto70mncumforusebyPortCityandSLLRDCsownuseinthefuture.AssumingthesandavailableintheSLLRDCborrowpitisaddedasplanned,thesandrequirementforPortCityisonly17%ofthedredgeablesandavailablewithinthe3designatedborrowareas.Consideringanaveragedredgingdepthof2meters,theareatobedredgedwillbearound3040sq.kmoutofatotalareaofaround100sqkmallocatedforSLPAsites1and2(oraround3040%of area).Assuming that theborrow area allocated to SLLRDC is added, thereby increasing thedredgingareato200sqkms,thedredgingareawillreducetoonly1525%ofthetotalallocatedarea. Accordingly, themitigationmeasures suggested during sand extraction such as avoidingfishinggroundsandroutesarefeasible.SummaryofEnvironmentalImpacts&MitigationToasubstantialextent,environmentalconsiderationshavebeenincorporatedintotheplanningofthe layout and the feasibility design process from its inception. This has allowed the earlyidentification of any environmental issues, which may impose constrains on the design. Thisapproach of Mitigation by Design has reduced the need for a range of specific mitigationmeasures.ThekeyfindingsfromthisSEIAstudy,potentialimpactsandsolutionstomitigatetheseimpactsaresummarizedbelow:


1. Therewillbenoreduction infishinggrounds inthereclamationareasincethis isnotanidealhabitatforfishbreedingduetoalreadysiltedconditions.

2. Therewillbesomebeneficialeffectsofusinggranitebouldersandconcreteelementsforprotectionworks, as thesewill serve as suitablehabitats for fauna and flora. Further,thesewillprovideshelterforbenthicanimalsthatinhabitreefssuchaslobstersandsomefish. Inadditiontheseboulderswillserveashabitatsforcoralorganismsasobserved inthenewlyconstructedbreakwatersoftheHambantotaport.Therefore,thepopulationsofsuchanimalmayincrease.

3. Dredgingwilloccuratorbeyondtheminimumstipulateddepthof15mtoamaximumof30m.Suchdredgingdepthisgreaterthanthedepthofclosureandthereforenoimpactontheshoreline/coastalerosion.

4. AcomparisonwasmadeoftheworkabilityofaCutterSuctionDredger(CSD)andaTrailingSuctionHopperDredger(TSHD)workingoffshoreduringthemonsoonandintermonsoonperiods. Based on the environmental and production considerations, TSHD wasconsidered tobe themostenvironmentally friendlyequipment for thereclamation.TheproposedmethodologyoftheuseofTSHDslimitstheimpactofturbidity.

5. As andwhen necessary, silt curtainwill be installed to prevent siltmigration. The siltcurtainwillbeformedbypolyesterfibretextilesheetstobehangedfrombuoysandbeweighteddownby steel chains.Anopeningwillbeprovided to allow fornavigationofTSHDsandotherconstructionvesselsinandoutofthereclamationsite.

6. Sanddredging isexpectedtocausesometemporary impactsbyremovingbenthicfaunaand increasing turbidity as a result of an increase in suspended particles in thewatercolumn. The proposed dredging area experiences turbidity conditions and existingorganisms are likely adapted to high turbidity levels. However, the abovementionedrestrictionofthedredgedepthisexpectedtomitigateimpacts.

7. Thedominant fish resources in theareaarepelagic, transient species thatare likely toavoid unsuitable environmental conditions and return once normal conditions areestablishedinthelongterm.Theareaselectedfordredginghaspreviouslybeendredgedandassuchisnotacompletelyundisturbedhabitat.Assuchitpresentsthebestpossibleoptioncomparedtoalternatesitesthatmaybeinalessdisturbedstate.

8. Severalmodellingstudieswerecarriedout to representSouthwestmonsoon,Northeastmonsoon and nonmonsoon periods. During this period, the number of simulationsperformedwas21,whichcoversaperiodof252days.Thatis,eachsimulationwasover12daysrepresenting50dredgingcycles,carriedout21times(21daysx12days=252days).Underthismodelingfrequency,allpossibleenvironmentalconditions(monsoonaleffects,tidal effects, wind/wave pattern), dredging process & different stages of dredging,relevant dredge sediment data were taken into consideration. A significant change ofsediment transport pattern has not been observed in the vicinity of the Port Citydevelopment.Clearsedimenttransportpatternsarepresentinthesurfzoneandshallowareas. Areas where the depth exceeds 1618m do not show the existence of anysediment transport, especially under sea wave conditions. It was observed from theresults that theconcentrationofsuspendedsediments level is less than1.5x106g/m3(1.5 mg/l) for almost all cases. Although spreading is occurring up to certain extent,concentration of the suspended sediment is less than 2 mg/l, which is insignificant.Therefore,dispersionof fine sedimentdue todredgingoperations shouldnothaveanyimpactonthesurroundingenvironment.

9. Thesatelliteremotesensing imagesoftheprojectareaobtained in2002and2013weredigitally enhanced and compared.Although there have beenminor fluctuations of theshoreline, there has not been any significant change of the shoreline during these 11years, even after construction of the Colombo South Port. The construction of theColomboSouthPortdoesnotseemtohaveanysignificantimpactontheevolutionofthe


shoreline,whichhad remained stable. It shouldbenoted that thedevelopmentof thePortCitycould,fromtheperspectiveofhydrodynamics,beconsideredasanextensionofColomboSouthPort.Assuch,thedevelopmentofthePortCity isnotexpectedtocauseanysignificantchangeoftheshoreline

10. A numerical modelwas built specifically for assessing the impact of Port City on thedischargefromtheBeiraLakeoutfall.Thisassumedtheeliminationofcurrentseweragedischarge into the Lakewillnotbe finalizedby theGovernmentprior to completionofreclamationwork of Port City. The final engineering design adpoted at the Beira lakeoutfallwillnotblock theoutletbutwill streamline the continuityof thedischarge andbringwaterfurthertothesea,improvingdispersionandpreventinganyobstructiontotheBeiraoutlet.TheapporachproposedinthisSEIAhastheadditionaladvantageasitallowsfortheformationofabeachclosetoGalleFaceGreenwithoutobstructingtheoutlet.

11. Existingstormwaterdrainoutletsaroundthesitehavebeenidentifiedandsolutionshavebeenproposedtoavoidanynegativeimpactsforthesedrains.

12. Siltation intensitywithin thePortCity isstudiedusing thenumericalmodel,consideringboth the Southwest Monsoon and the Northeast Monsoon. It is concluded that theaveragecomputedsiltationintensitywithinthelagoonofthePortCitywillbearound30mm per year, and normalmaintenance dredging should be sufficient at the operationstage

13. The Colombo South Port is an enclosed water area connected to open water by thenavigation channel. Since therewill not be any change to the siltation intensity at thenavigationchannel,itisnotanticipatedthattherewillbeanychangeinsiltationintensitywithintheHarbour.

14. ThemouthoftheKelaniRiver is locatedabout4.5kmnorthoftheColomboSouthPort,anditiswithinthecomputationdomainofthenumericalmodelcarriedoutforthisstudy.Fromthechange inthesiltation intensitycomputedfromthemodel,theconstructionofPortCitywillnothaveanyimpactonthesiltationrateattheKelaniRivermouth.

15. The constructionofPortCityon the southern sideof theColombo SouthPortwillnotcauseanychanges thehydrodynamicsandsediment transportof theColomboHarbour,theKelaniriveroutfallandthenortherncoastalarea.Theimpactisconsideredaslow.

16. Since thePortCity is tobeconstructedon the southern sideand in the shadowof themain eastwestbreakwaterof theColombo South Port, itwill innoway affect coastalerosionnorthoftheHarbour.ThecoastlinenorthofthePortCity isalreadyshieldedbythebreakwaterof theColombo SouthPort,whichhaspreventedany transportationofsedimentbetweenthesouthandthenorth.Assuch,theconstructionofthePortCitywillnotchangethepatternoflittoraldriftattheshorelinetothenorth.

17. ThecoastalstretchsouthofColombo isstablewithvery littleseasonalchanges.ThenetlongshoresedimenttransportalongthewestcoastofSriLankaispredominantlydirectedtowardsthenorthasaresultofthewaveclimate(SWmonsoonseawavesandswell).Thecomparisonoftheseabedprofilebetween2008and2012indicatesthattheseabedclosetotheshorelineisstableoverthefouryearperiod.Accordingtotheresultsofthesurvey,there isnoobviousdepositionclosetotheshoreaftertheconstructionoftheColomboSouth Port. It indicates that the influence of the breakwater on longshore sedimenttransportationisnotveryobvious.Therefore,thereclamationworkandtheconstructionof the breakwater of Port City are likely to result in similar insignificant bathymetricchangetotheSouthofColomboPortandtheimpactisnegligiblecomparedtothealreadyconstructedtheSouthPort.

18. Measurements of suspended sediments of the study area shows the TSS range of 225mg/lfordifferentlocationsanddifferentperiods.Althoughspreadingisoccurringuptocertain extent, concentration of the suspended sediment is less than 2mg/l which isalmost equal to ambient concentration. Therefore dispersion of fine sediment due to


dredgingoperationsdoesntshowanyimpacttothesurroundingenvironment19. Thenavigation channelof theColombo South Port is located to thenorthwestof the

port. Since navigation of vesselsmainly depend on thewave conditions and bed levelchangesofthesurroundingarea,hydrodynamicandsedimenttransportmodellingcarriedoutinnavigationchannelshowednosignificantcurrentincreaseorimpactonthesiltationintensityandthereforenosignificantimpactonvesselnavigation.

20. The reclaimed landhasno impacton regulation and controlofmatters related to civilaviationandaviationingeneral,intermsoftheCivilAviationAuthorityActNo.14of2010

ThePortCityProjectisacollaborativeventurebetweentheGOSL/MinistryofMegapolisandtheProject Company and both parties would work together to ensure required social andenvironmentalobligationswouldbemet.ThelatterisalsoimportantinconsideringthatPortCitywillbepositionedasanecofriendlyenvironmentforlivingandrecreation.It is intended that the Project Company and the GOSL/Ministry of Megapolis & WesternDevelopment/UDA will enter into an understanding on mitigation measures and resourcerequirementsforimplementingsuchmeasures.Thistakesintoaccountthatcertaincommitmentsfor mitigation are the responsibility of the GOSL (such as the income support and benefitsprogramforthefishingcommunity).With regard to improvements in social infrastructure in the vicinityof theproject, theProjectCompanyhasalreadycommittedtothisaspectbyprovidingover45ha(around1/6thofthetotalreclaimedarea) forparksandother recreational spaceswithinPortCity foruseby thegeneralpublic.TheProjectCompany iscommittedtomaintaintheprojectsiteandundertakenecessarymitigationmeasures inkeepingwith theapprovedEIA, thisSEIAand theMinistryofMegapoliswilladheretoandensuretheconditions inthedevelopmentpermittobe issuedbytheCCDtotheMinistryuponapprovalofthisSEIAwillbeadheredbytheMinistry/UDA/SLPAandtheProjectCompany.IncomeSupport&BenefitsProgrammeforfishermenThis SEIA concludes that sanddredging is expected cause local and temporary impactson thebiologicalenvironmentduetotheremovalofbenthicfaunaandincreasingturbidityasaresultofan increase in suspended particles in water columns. Hence it is proposed that the incomesupport and benefits programmewill beworked out in detail by the relevantMinistries andorganizations/departments involved,withthe inputsofcommunitybasedorganizations(CBOs)such as the fishermens societies, churches, etc. As mentioned in this SEIA study, under theProjectAgreemententeredintobetweentheGOSLandtheProjectCompany,formulationofsuchaprogrammeandthedisbursementoffundsistheresponsibilityoftheGOSLandnottheProjectCompany.Accordingly, it isproposedthatasumofRs.500millionbeallocatedtotheMinistryofFisheriesandAquaticResourcesDevelopmentviatheMinistryofMegapolisandWesternDevelopmenttomeettherequirementsoftheproposedfishercommunityincomesupportandbenefitsprogram,withsupplementaryfundsallocatedasneeded,basedontheevaluationoftheeffectivenessandactualimpactofdredgingonfisheryandaquacultureafteraoneyearperiod.TheRs500millionwillbedepositedinadesignatedaccountininstalmentsforfundstobedisbursednolessthanona monthly basis. The Department of Fisheries and Aquatic Resources will finalize the overallbudgets and guidelines for the income support and community benefits program prior tocommencementofdredgingandinformthefishercommunityandcivicsocietyatlarge.


TheMinistryofFisheriesandAquaticResourcesDevelopment togetherwiththeDepartmentofFisheriesandAquaticResourceswillaccordinglyberesponsibleforformulatingandimplementinganacceptablecommunity incomesupportandbenefitsprogramfortheaffectedfishermen.Thekeyobjectiveofthe incomesupportandcommunitybenefitsprogrammewillbetoupliftofthesocialeconomicconditionsofthefishingcommunitiesinareassuchas:

(a) Communitydevelopmentprogrammes(b) Research&development(c) Projectstoupliftthesocialstandardsoftherelevantfishingcommunities(d) Programs to enhance themarineecology and fishbreeding grounds andother related

programmes(e) Incomesupporttofishermenwheredirectimpactscanbeestablished(f) CapacitydevelopmentofFisheriesInspectorstoimprovefisheriesmonitoring(g) EstablishmentofafisheriesmuseuminNegombo

TheimpactofthedredgingandtheimplementationofthebenefitsprogramshouldbeeffectivelyandadequatelymonitoredbytheMinistryofFisherieswithcontinuousfeedbackprovidedtotheProjectProponentinordertofinetunetheprogram.

CECBSEIAReportProposedColomboPortCityDevelopmentProjectDecember2015 Chapter1Page1

CHAPTER1INTRODUCTION

1.1 BackgroundoftheProject

1.1.1 TheWesternRegionMegapolisRegionalStructurePlanof2004ExpansionoftheColomboCentralBusinessDistrict(CBD)byreclaimingtheseawasoriginallyproposedunder the Western Region Megapolis Regional Structure Plan of July 2004, designated forimplementationbytheWesternRegionMegapolisTaskForceandtheBoardofInvestmentofSriLanka(BOI).ThePrincipalTechnicalConsultanttotheWesternRegionMegapolisMasterPlanningProjectwasCESMAInternationalofSingapore,currentlyknownasSurbanaJurongPteLtd(Surbana),appointedbytheGovernmentofSriLankain2003.SurbanaisaSingaporeGovernmentlinkedfirmofurbanplanningconsultantsestablishedaround50yearsagoformasterplanningtheurbanlandscapeofSingapore.TodateSurbanahascompletedurbanplanningstudiesinover50countries.

According to the Regional Structure Plan of 2004 (hereafter referred to as the CESMA Plan), theexpansionoftheColomboCBDhadseveralcomponents:

(a) To create new land banks for development and revitalization of thewateredges to form thewaterfrontcityimage

(b) Torelocateexisting JayeContainerTerminals (JCT)within theproposedColomboSouthHarbourandreleaselandforwaterfrontrealestatedevelopmentstoreinforcethenewCBDfabric.

(c) Figure1.1:ProposedPortExpansion

JayeContainerTerminal

Source:RegionalStructurePlanoftheWesternRegionMegapolis(2004)Volume1,page61

NorthPort


(d) Subsequent to the construction of the ADBfunded new Colombo South Harbour breakwater(nowcompleted),reclaimfromtheseaaround145haoflandasanextensionoftheCBDby2010.ThisisthesamelocationasthecurrentColomboPortCityasshowninFigure1.1

(e) ReclamationfortheNorthPortby2030forportexpansionandtoprovidelandsforportrelatedfacilities

Accordingly,thereclamationoflandborderingtheColomboSouthHarbourbreakwaterwasenvisaged11yearsagoundertheWesternRegionMegapolisRegionalStructurePlan.

The implementation of the CESMA Plan was abandoned in 2005 primarily due to a change ofGovernmentandtheconflictsituationthatprevailedinthecountry.ThePlanwillhoweverbereviewedand updated in 201516, againwith technical assistance from Surbana, assisting the newly createdMinistryofMegapolisandWesternDevelopment.

1.1.2 TheColomboPortCityProject:TheAdministrativeProcessIt isonlywiththeadventofpeace inSriLanka in2009andthecommencementofconstructionoftheADBfundedColomboSouthPortwithits5.4kmlongbreakwaterthatreclamationoflandsouthofthebreakwaterbecametechnicallyandfinanciallyfeasible.

Theadministrativeprocess followedby the formerGovernment inconceivinganddevelopingwhat isnow known as Colombo Port City (CPC) is summarized below. (Section 1.1.4 summarizes theenvironmentalapprovalprocess)

(a) The CPC project was initially conceived as a public sector/Government funded project to beundertakenbyTheSriLankaPortAuthority(SLPA).

(b) Consequently, the SLPA commissionedat itsown costan InitialTechnical Feasibility Study inApril 2010 for the reclamation of land South of the new breakwater retaining the services ofcoastalengineers(localandforeign)andurbanplanners.

(c) Concurrently, around June 2010, an Environment Impact Assessment (EIA) study wascommissioned by SLPA at its own cost for a reclamation area of 200 ha. The University ofMoratuwa (UoM) was appointed as lead consultant and the Coast Conservation & CoastalResourcesManagementDepartment(CCD)functionedastheProjectApprovingAgency(PAA)

(d) InOctober 2010, theUDA prepared a conceptmaster plan for the area to be reclaimed andsubmittedaProjectProposaltotheSLPAforconsideration.

(e) On29thApril2011,ChinaCommunications&ConstructionCompany (CCCC)submittedan initialconceptproposalforColomboPortCitytoSLPAforanenvisagedreclamationareaof200ha,withtheentirefinancialinvestmentfortheprojectcommittedbyCCCCasaForeignDirectInvestment(FDI),withoutanyGovernmentguaranteesontheinvestment.

(f) WiththeGovernmentdecidingtonottocommitpublicfundstoconstructthePortCityProject,aStanding Cabinet Appointed Review Committee (SCARC) was appointed to review the aboveconceptproposalsubmittedbyCCCC.

(g) InAugust2011,SCARC,whichcomprisedSecretariesofseveralMinistries,agreedtoproceedwiththeprojectasanunsolicitedproposaland recommended that the Secretary,MinistryofPorts,Highways& Shipping sign anoncommittalMOUbetween the SLPA andCCCC and toobtain adetailedproposalfromtheinvestor.SCARCalsorecommendedappointingaTechnicalEvaluationCommittee (TEC) comprisingmembers from SLPA, CCD, Urban Development Authority (UDA),BoardofInvestment(BOI),andCentralBank.

(h) Further to a recommendation by SCARC, the MoU between SLPA and CCCC was signed inNovember2011.


(i) InOctober 2012, CCCC submitted the detailed project proposal for a 233 ha reclamation andpreliminarydesigns to theSLPA.TheMinistryofPorts forwarded this toSCARC for reviewandnegotiationbytheTEC.

(j) TheTECthensubmittedTechnicalEvaluationReport1andTechnicalEvaluationReport2toSCARC inMarch2013andJuly2013respectively. InAugust2013,havingreviewedtheTechnicalEvaluation reports,SCARC recommended thatapprovalof theCabinetofMinistersbeobtainedforimportantcommercialtermsoftheproject.

(k) FollowingaCabinetdecisiondated13th January2014, thePortCityProjectwas identifiedasaStrategicDevelopmentProjectundertheStrategicDevelopmentProjectsActno14of2008.

(l) On4thSeptember2014, theCabinetofMinistersdecided interalia to implement theColomboPort City Project and, subject to approval by the Hon. AttorneyGeneral (AG), authorized theSecretarytotheMinistryofHighways,PortsandShippingtoenterintoanAgreementonbehalfoftheGovernmentofSriLankawithCHECPortCityColombo(Pvt)Ltd,theBOIapprovedcompanysetup to implement theproject (theProjectCompany). Itwas furtherdecided toauthorize theSLPA tocarryout the requiredobligationsunder theagreementbetweenGOSLand theProjectCompany.

(m) On16thSeptember2014anAgreementwasentered intobetweentheProjectCompanyandtheSecretarytotheMinistryofHighways,PortsandShipping(actingforandonbehalfoftheGOSL).TheAgreementwassignedandtheprojectsconstructionworksceremonially inauguratedinthepresenceofthePresidentofthePeoplesRepublicofChinaandthePresidentoftheDemocraticSocialistRepublicofSriLanka,duringtheChinesePresidentsStatevisittoSriLanka.

1.1.3 KeyTermsoftheAgreementbetweenGOSL/SLPAandProjectCompanyAnAgreementwasentered intobetween theMinistryofPortsandShipping,actingonbehalfof theGovernmentofSriLanka(GOSL),andCHECPortCityColombo(Pvt)Ltd(theProjectCompany),signedon16thSeptember2014andextendedon17thSeptember2015 (hereafter referred toas the GOSLAgreement) and the Concession Agreement attached to the said GOSL Agreement as a bindingannexure (hereafter referred to as the Project Agreement). The key terms of the GOSLAgreement/Project Agreement entered into between the GOSL and the Project Company, a fullyownedsubsidiaryofCCCC,canbesummarizedasfollows:

(a) IntermsofClause3oftheGOSLAgreement,allrights,obligationsand liabilitiesoftheSLPAaredeemedasrights,obligationsandliabilitiesoftheGOSL.

(b) TheGOSLAgreementbindsGOSL,therebymakingtheGOSLresponsible,toobtaintheapplicablepermits for the reclamationworks including environmental permits and consents.Accordingly,article12.1oftheProjectAgreementspecificallyprovidesthattheSLPA(GOSL)shallobtaininteralia the following applicable permits and consents necessary for the design, construction andcompletionofthereclamationworksensuringthatthereisnodelayordisruptiontotheexecutionofthereclamationworks: TheenvironmentalclearancespursuanttoanEnvironmentalImpactAssessment(EIA); SandMiningLicensesforsandborrowzone; ApprovalfromtheDepartmentofCostalConservationandCostalResourcesManagement Permitsforquarryoperations Approvals from theDepartment of Archaeology,Marine Environment Protection Authority

(MEPA)etcAccordingly,under theProjectAgreementsignedon16thSeptember2014and laterextendedvia an Extension Agreement signed on 17th September 2014, the obligation to obtain thenecessaryenvironmentalapprovals/permitsiswiththeGOSL/SLPA


(c) The Colombo Port Citywill be developed in two distinct phases,with required environmentalapprovalsobtainedviatwoEIAstudies.Namely:

Phase1EIA:ForReclamationofno lessthan233ha,sandextractionandconstructionofcoastalstructurestoprotectthelandfillfortheproposedPortCity

Phase2EIA:Constructionof thebuildingsand infrastructureof thePortCity, includingtrafficimpactassessment

(d) TheSLPA/GOSLwouldberesponsible forthesupplyofutilities (water,power,sewerage)totheBoundaryofthereclamationsiteatasuitableconnectionpointandwithsufficientcapacity

(e) TheProjectAgreementanticipatedthatthetotalareaofmarketable land(i.e. landtobesoldorleased to thirdparty investors fordevelopment inkeepingwithprevailing lawsof the country)afterallowingforpublicparks,roadsandbeachesshallbenolessthan170Hectares.Ofthis,theProjectCompanyshallbeallocatedno less than108Hectaresofmarketable landand theSLPAallocatednolessthan62Hectares.

(f) The allocation of marketable lands (no less than 170 ha) between the Project Company andGovernmentwillbecarriedoutonanequitablebasiswheretheProjectCompanywillfirstselectamarketable landextentof lessthan10haandthentheGovernmentwillselectasimilarextent.This process of alternative selectionswill be repeated until such time one of the Parties hasreached themaximumamountofmarketable land tobeallocated to thatParty.Therefore, themarketable lands allocated between the Government and Project Company will be in noncontiguousblocks.

1.1.4 TheEIAProcessforReclamationFromthetimetheColomboPortCityprojectwastobeimplementedasapublicinvestmentin2010andafter the submission of the investment proposal by CCCC inApril 2011, and in terms of the abovementionedGOSL/ProjectAgreement,theresponsibilityforsecuringenvironmentalandrelatedpermitsconnectedtotheproposedprojecthasbeenwiththeSLPA.

Accordingly,theSLPAatitsowncostcarriedoutenvironmentalstudiesforreclamation(withCCDasthePAA)and sandextraction (with theCentralEnvironmentalAuthorityas thePAA) inparallel.TheLeadConsultant for the environmental studieson the reclamationwas theUoM. For sand extraction, theNationalAquatic&ResearchAgency(NARA)functionedastheLeadConsultant.

Theprocess followedby theSLPA for theenvironmentalstudiesconnected to reclamation isoutlinedbelow:

(a) The CCD as the PAA appointed a Scoping Committee comprising 16Government agencies todeveloptheTermsofReference(ToR)fortheEIAstudyinJune2010.TheyincludedtheColomboMunicipalCouncil (CMC),DistrictSecretariat,Sri LankaNavy,DivisionalSecretariat,MinistryofDefence, Ministry of Economic Development, Department of Fisheries, Urban DevelopmentAuthority (UDA), Sri LankaTourismDevelopmentAuthority,CEA,RoadDevelopmentAuthority(RDA),MEPA,DepartmentofArchaeology,GeologicalSurveyandMinesBureau(GSMB)andSriLankaLandReclamationandDevelopmentCorporation(SLLRDC).

(b) InJuly2010theUoMcommencedtheEIAstudyandsubmittedthereport,coveringareclamationareaof200ha,totheSLPAinApril2011.ThiswasforwardedbySLPAtotheCCD.

(c) AsrequiredunderSection16Subsection2(b)oftheCoastConservationActNo57of1981,theEIAreportwasmadeavailabletothePublic.TheCCDplacedadvertisementsinmajornewspaperson21stJune2011 inallthree languagesto informthepublicoftheavailabilityofthereportforreviewat11locationsincludingtheCEA,UDA,CMC,GSMBandMinistryofFisheries.


(d) On20thSept2011,theCCDwrotetoSLPAforwardingthecommentsreceivedfromthepublicforclarification. Acting on behalf of the SLPA, the UoM clarified in writing the relevant publicinquiries,whichwereforwardedtotheCCDbySLPA

(e) Bywayof letterdated7thDecember2011,theCCDwrotetotheSLPAstatingthattheTEChadgrantedpreliminaryapprovaltotheEIA.

(f) Inviewofthe investmentproposalsubmittedbyCCCC in2012(aftercompletionoftheEIA for200ha)wasforareclamationareaof233ha,anAddendumreporttotheEIAwaspreparedbyUoM and submitted via the SLPA to the CCD in September 2013. Themain objective of theAddendumtotheEIAwastoinformthePAAofadeviationwhichhastakenplacetoexpandtheproject (from200hato233ha),primarilytoaccommodatethe landcomponenttobegiventotheGovernment, an internal canal system and to enhance relevant facilities and services andimproveintegrationwiththeSouthPortandCityofColombo

(g) TheSLPAsoughtapprovaloftheCCDtotheAddendumtotheEIAand,bywayofletterdated27thNovember2013, theCCDwrote to theSLPA communicatingnoobjection to themodificationsproposed to theEIAby thesaidAddendum.Akeycondition imposed in this letterwas thatanEnvironmentalManagementPlan(EMP)issubmittedforapprovalbytheCCD.

(h) On 23rdOctober 2014, the CCD issued a Permit for a Development Activity under Part III Section14of theCoastConservation&CoastalResourceManagementActNo57of1981, forreclamation,dredgingandconstructionofbreakwaters, revetments.Thispermitcontained42conditionsofwhichconditionNo40 statesASeparateapproval shouldbeobtained from theCEA for extracting sand from theoffshore tobe reclaimed theproposednear shore area andsubmittedtothisdepartmentpriortothecommencementoftheconstruction.

(i) The EnvironmentManagementPlan (EMP)was submittedby the SLPA to theCCD andon2ndDecember2014,theCCDwrotetotheSLPAstatingthattheEMPisapproved.SLPAthewrotetotheProjectCompanyregardingtheapprovalfortheEMP.

1.1.5 SandExtraction&BasisforCommencementofReclamationWorksAsstatedabovetheSLPAobtainedrequiredapprovalsfortheEIAstudyforreclamationof200haandthesubsequentAddendumthereto.ThissectionexaminestheadequacyofconsentsobtainedbytheSLPA for commencement of sand extraction by the Project Company, particularly with regard toobtainingrequiredapprovalsfromtheCEAinkeepingwithClause40oftheDevelopmentPermitissuedbytheCCD.

Sandextractioninopenseabeyondthe2kmcoastalzonerequiresenvironmentalclearancesfromtheCEAasPAA,unlesstheCEAdelegatessuchauthoritytoanotherGovernmentbodyinkeepingwiththeprovisionsof theNationalEnvironmentalAct.Theprocess followedduring the20112014period inconnectionwithenvironmentalapprovalsforsandextractionissummarizedbelow:

(a) InJune2011theDirectorGeneralofGSMB,underprovisionsoftheMines&MineralsActNo33of1992,issuedtotheSLPAanExplorationLicenseNoEL/177forasandborrowareaof46sq.km

(b) TheCEA informed theSLPA inwriting thatan InitialEnvironmentalExamination (IEE)shouldbecarriedoutforsandextractionfortheaboveborrowarea.Thereafter,theCEAissuedtheToRfortheIEEtoSLPAon9thSeptember2011

(c) TheSLPAthencommissionedNARAastheleadconsultanttopreparetheIEEreport(d) InSeptember2012NARA submitted thedraft IEE report to theSLPA stating that the identified

areaof46sqkmcontainsadredgeablesandquantityof44millioncu.m.(e) However,thisquantumofsandwasdeemedinsufficienttomeetanestimatedrequirementof65

75millioncu.m.ofsandtocompletereclamation.Furthermoreitwassuggestedthatidentifyingadditionalborrowareaswouldmitigatetheimpactonfishing.


(f) TheSLPA thereforeobtainedanotherexploration licenseNo:EL/281dated8thNovember2013fromtheGSMB,coveringanareaof54sq.km.

(g) TheSLPAthencommissionedNARAtocarryoutasecondIEEstudyforthesecondborrowsiteandcompletedthedraft IEEreport inDecember2014.Geophysical investigationscarriedoutforthesecond IEE study established that a total sand deposit of 68.3 mn cu. m. was available fordredging.Accordingly,instudiescoveringbothborrowareas,adredgeablesandquantumof112mncu.m,orarounddoublethequantityofsandrequiredbyPortCityforreclamationworks,wasidentified.

Obtaining the requiredconsents for the fishermenscompensationprogramwasaprerequisite fortheCEAtograntthenecessarypermitstodredgesand.Despitealmostayearofattemptingtoobtainthe required consents, the SLPA encountered several roadblocks in fulfilling this task. In thecircumstances,theSLPAcouldnotobtaintherequiredsandextractionpermitsfromtheCEAfortheidentified borrow areas as stipulated in the development permit of the CCD and in terms of theProjectAgreement,whichassignedthisresponsibilitytotheGOSL/SLPA.

Onthebasisoftheabove,theSLPAdidnothavetherequiredsandextractionpermitsfromtheCEAfortheidentifiedborrowareas.

TheProjectCompanycommencedsandextractionandreclamationworkson16thSeptember2014onthebasisofthefollowing:

Consequent totheGOSLswishto inauguratetheprojectatthetimeoftheStatevisitbythePresidentofChina,thereclamationworkscommencedfromthedateofthesaidGOSL/ProjectAgreement,whereandintermsofClause4.1oftheProjectAgreement,itisstatedthatonandfrom the date of this Agreement, the Project Company shall design and carry out thereclamationworksinaccordancewiththeConcessionAgreement.

Inaddition, theProjectCompanywasgrantedwrittenpermissionby the SLPA todredge theColombo Harbour navigation channel, pending (as understood by the Project Company) thefinalizationofthetwoIEEstudiesbyNARAforsandborrowareas.

Under the above circumstances, where in terms of Article 12.1 of the Project Agreement theobligation to obtain the necessary/applicable licenses and permits is a responsibility of theSLPA/GOSL,theProjectCompanyhastakenthepositionthatsandextractionandreclamationworkscommencedon16thSeptember2014onthebasisofprovisionscontainedintheAgreementitselfandonthebasisofwrittenclearancesprovidedbytheSLPA.

1.1.6 OtherPermitssecuredLeadinguptothecommencementofconstructionandsoonthereafter,inkeepingwiththeprovisionsof the Project Agreement, the SLPA obtained permits mentioned below and informed the ProjectCompanyinwriting:

(a) Letter of Approval from the Department of Archaeology dated 18th July 2012 following theArchaeological Impact Assessment of the Colombo Port City Project done by the UnderwaterArchaeology Unit of the Department of Archaeology from November 2011 to February 2012pursuanttoarequestmadebytheSLPAbyletterdated22ndJune2010.

(b) IndustrialMiningLicenseforSeaSandNo.IML/A/HO/8328dated16thSeptember2014issuedbytheGSMB

(c) SecurityClearanceandapprovalforcommencementoftheColomboPortCityProjectdated25thSeptember2014,grantedbytheMinistryofDefence&UrbanDevelopment.

(d) Approval for theOil Spill Contingency Plan submitted by the Project Company by theMarineEnvironmentalProtectionAuthoritydated18thDecember2014,issuedundertheMarinePollutionPreventionActNo.35of2008


(e) Approvaldated2ndDecember2014grantedbytheCCDfortheEnvironmentalManagementPlan(EMP)submittedbytheProjectCompanyviatheSLPA

1.1.7 TheSuspensionofConstructionandWayForwardSubsequently,thenewGovernmentelectedon8thJanuary2015appointedanEvaluationCommitteetoreviewthePortCityprojecton30thJanuary2015.OnthebasisofcertainconclusionsreachedbythisCommittee (withoutanyconsultationwith theProjectCompany),on4thMarch2015, theCabinetofMinistersmadeadecisiontosuspendtheconstructionworksofthePortCityProject.ThisdecisionwascommunicatedtotheProjectCompanybytheSecretaryMinistryofPorts,Shipping&Aviationon6thMarch2015.During theperiodofsuspension, theGovernmenthasmade the followingdecisions, inconsultationwiththeProjectCompanywherenecessary:

(a) TheGOSLAgreementof16thSeptember2014wouldbeamendedto interaliapermittheUDAto step into the role of the SLPA and the end date of the saidGOSL Agreementwould beextendedby6monthstointeraliafacilitatethesaidtransition

(b) The necessary amendments to the Project Agreement shall be effected via a tripartiteagreementbetweentheGOSLrepresentedbytheMinistryinchargeoftheUDA(theMinistryofMegapolisandWesternDevelopment),theUDAandtheProjectCompany.

(c) ASupplementaryEnvironmentalImpactAssessment(SEIA)shallbecarriedoutforexpansionofthereclamationareafrom200hatoanaltereddesignof269hatogetherwiththe impactsofextractionofsandfromtheidentifiedborrowareasandquarrymaterialrequiredforthealtereddesign.

ThisSEIAisaconsequenceoftheaforesaiddecisionstakenbytheGovernment

TheevolutionoftheProjectAreafromthetimeoftheoriginalEIAtothecurrentSEIAissummarizedinTable1.1below

Table1.1ProjectArea&ReclaimedAreaEvolution

MajorElementsofProject(inHectares)EIA*2011

Addendum**2013

SEIA**2015

Reclaimedlandarea 200 233.5 269Beacharea Notspecified Notspecified 19.79Canalarea None 23.7 15.24Waterareabetweenlandfill&breakwater 161.8 113Seabedareaoccupiedbyprotectivestructures 67.3 29.58TotalProjectArea 351.0 486.3 446.61Note:*BasedondesignscommissionedbySLPA

**Basedondesignsoftheinvestor,CCCC

1.2 ObjectiveandJustificationoftheProject1.2.1 ObjectivesinRelationtoWesternRegionMegapolisStructurePlan(CESMAPlan)

TheCESMAPlanof2004 identifiesaC

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