Environmental Impact Assessment for the Proposed Hambanthota Sea Port

Executive Summary

EXECUTIVE SUMMARY The existing Ports in Sri Lanka will reach full capacity within a fairly short span of years. Even with the proposed development of the expansion of the Colombo Port ie. South Port Pro!ect the lack of capacity for container handling and transshipment would emerge around "#"$. Therefore the need for a new container transshipment port is of critical importance to promote Sri Lanka as a competitive south %sia shipping Centre. The development of existing ports in Sri Lanka is restricted in view of the limited space available for ports related activities. The &ambanthota region in the Southern Province of Sri Lanka has been long identified as a potential area for the development of a port mainly in view of its strategic location of being close to the international shipping lanes. 'urthermore vast areas of lands free from development activity are also available for port related development and expansions in &ambanthota. &ambanthota Sea Port is to be developed in four stages as a ma!or industrial port in the Southern Province of Sri Lanka. The immediate purpose of the pro!ect is to establish an oil import ( bunkering terminal to cater to the needs of ship bunkering at the route south of Sri Lanka and a range of port traffic re)uirements of the local community initially in a limited capacity as well as general industrial cargo for other locations in Sri Lanka. The Port is expected to enhance the export earnings of the country via improvement of maritime transportation and the establishment of export companies within a 'ree Economic *one +'E*,. The development of a new port in the &ambanthota region thus provides a tremendous opportunity to Sri Lanka in the field of Ports and Shipping leading to industrial and economic growth of the region and the nation at large. %n international seaport will certainly contribute to the economic re!uvenation of the Southern Province. -n order to implement the pro!ect on a priority basis an -nitial Phase to be implemented immediately has been identified as Stage .% which will have the Port in operation in year "#.#. The remaining stages identified as ./ " and 0 which are termed as Short Term Phase 1edium Term Phase and Long Term Phase will be Port expansions and be operative in "#.$ "#"$ and beyond "#2# respectively. This report produces the findings of the Environmental -mpact %ssessment +E-%, study conducted by the E-% Consultants. The E-% study has been carried out in accordance with the specific re)uirements of the Sri Lankan E-% process as set out in the Terms of 3eference +To3, issued by the Coast Conservation 4epartment +CC4, of the 5overnment of Sri Lanka +56SL,. The Environmental -mpact %ssessment +E-%, process promotes the systematic identification prediction and evaluation of the impacts of the proposed port pro!ect on physical chemical biological cultural and socio7economic components of the environment. The purpose is to incorporate environmentally sound development during the planning and decision making process. The Environmental aspect addresses the

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Environmental Impact Assessment for the Proposed Hambanthota Sea Port

Executive Summary

common resources to be shared and possibly protected in the area and therefore the E-% study looks beyond the immediate pro!ect interests. Stage .% represents the main body of the Pro!ect which has been given high priority for implementation by the 5overnment. The timing of the remaining stages will be dependent upon realisation of the first stage. -n view of the long term planning involved with the pro!ect this E-% report has concentrated on the impacts associated with Stage .%. &owever broader attention has also been focused on the remaining stages in particular Stage ./. This report covers the E-% for the Stages . % and ./ of the Proposed &ambanthota Port Pro!ect. The present E-% Study has considered the following five important elements of the proposed pro!ect. The existing environment of the area covered by the pro!ect and its surroundings The significance of the pro!ect in contributing at both national and regional level in ports and shipping sectors The pro!ect plan design and the implementation strategy The potential environmental impacts the ability to eliminate or minimi8e negative impacts by 91itigation by Planning and 4esign: and specific mitigatory measures. The establishment of a reliable and sustainable mechanism to monitor impacts in the short term and the long term.

The spatial distribution of the environmental impacts has been predicted for both the construction and operation phases. 4ue to the implementation of the proposed pro!ect both the positive as well as negative impacts on all the physical resources ecological resources buildings roads and other properties society economy and archaeology has been discussed. Predictions that have been made are )ualitative and are based on professional !udgement supported by field investigations meetings and discussions held with the stakeholders of the pro!ect and ( or analysis by computer models. The 'easibility Study which had been undertaken by the Consultants 1(s. 3amboll 4enmark has prepared an extensive Environmental Profile and -mpact %ssessment. Their findings have been presented in Chapter .. of the 'easibility Study report that was prepared by them which was reviewed in detail by the E-% Consultants for the present study. Throughout the pro!ect commencing from the initial planning site selection and preliminary design the approach of the E-% and engineering process has been one of ;1itigation through 4esign< whereby potential environmental impacts have been identified and measures introduced to reduce as far as is practicable through an iterative design process. This decreases the overall potential for impacts to occur as well as the need to apply mitigation measures. There are several enactments that has been passed by the 5overnment of Sri Lanka to look into environmental concerns and such enactments which are directly of relevance to the &ambanthota Port Pro!ect are=

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Environmental Impact Assessment for the Proposed Hambanthota Sea Port

Executive Summary

>ational Environment %ct. >o. 2? of .@A# as amended by %ct >o. $B of .@AA Coast Conservation %ct >o. $? of .@A. and subse)uent amendments 1ines and 1inerals %ct >o. 00 of .@@" 1arine Pollution Prevention %ct >o. $@ of .@A. 'auna and 'lora Protection 6rdinance as amended by %ct >o. 2@ of .@@0 and subse)uent amends. The %nti)uities 6rdinance >o.@ of .@2# +now %ct, and the subse)uent amendments particularly the %nti)uities +%mendment, %ct >o. "2 of .@@A is the primary %ct. -nternational Ships and Port 'acility Security +-SPS, Code

-n addition approvals from the following agencies are re)uired for the due implementation of the pro!ect. The 5eological Survey and 1ines /ureau +5S1/, The Crban 4evelopment %uthority +C4%, The 3oad 4evelopment %uthority +34%, 4epartment of -rrigation +-4, Dater 3esources /oard The 4epartment of 'isheries and %)uatic 3esources The Land Commissioners 4epartment The 4epartment of %griculture The 'orest 4epartment The 4epartment of Dild Life Conservation

Proposed harbour will be located at the mouth of Earagan 6ya within a coastal lagoon known as Earagan Lewaya. The proposed development will occupy nearly the entire area of the Earagan Lewaya which will be developed as the proposed harbour basin by dredging.

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Environmental Impact Assessment for the Proposed Hambanthota Sea Port

Executive Summary

The construction works in stage - will consist of the construction of the navigation channel of ""$ m width and .B m navigation depth. This will cater to the approach of ships up to A# ### 4DT which are fairly big li)uid and dry bulk carriers including Post Panamax Fessels and could also handle ro7ro traffic such as cars and other vehicle imports containers on trailers and general cargo ships which may need to call &ambanthota. The two /reakwaters and the )uay walls will also be constructed in stage -. The Port facilities will also include the harbour basin of app. B$# m x A## m with a Guay length of B$# m sufficient for two berths for most of the ship si8es expected. The harbour area will have an oil terminal and the installation of Single Point /uoy 1ooring dry bulk terminal break bulk terminal and a ro7ro terminal. The %dministrative and Service facilities including office facilities berths and maintenance facilities for service vessels such as tug boats pilot boats fire fighting e)uipment facilities etc. and the 1%3P6L marine pollution control facilities. -n stage ./ the Port will have expansions with a considerable increase in the ship berthing and storage capacities. The entrance channel will be deepened and the harbour basin will be expanded towards the north of Earagan Lewaya by about B## m x A## m including turning circle area and a western harbour extension a 0## m wide and .## m long harbour basin and providing more than "### m additional )uay length. The coal terminal blending and transhipment terminal will also be constructed in this stage and the area for ro7ro traffic also will be increased. Construction works of the harbour and port facilities including infrastructure would re)uire metal in large )uantities and the )uarry site for this purpose will be located in the vicinity. % separate E-% will have to be carried out for the Guarry site. The construction works will involve dredging and reclamation works to a great extent. %ll the material that is dredged will be used for reclamation works. 1ost of the impacts arising from dredging within the boundaries of the new harbour and in the proposed entrance channel and the resulting reclamation are anticipated to be short7term and confined to the areas of work. The water supply demands created by the proposed harbour and related industrial development cannot be met by Earagan 6ya basin. The most recent comprehensive proposals for supplying the general area of Earagan oya 1alala 6ya and Embilikkala 6ya basins have been formulated by the 4epartment of -rrigation and presented in the report titled ;Potential water resources for development of 3uhunapura<. This is a pre7 feasibility level study completed in 4ecember "##". The study has considered the demand due to the increased population up to "#0# and ma!or infrastructure development pro!ects such as the proposed harbour. %ccording to the above study during periods of abundance surplus flows in Eachchigal %ra Dalawe 5anga Earagan 6ya Eirindi 6ya and 1enik 5anga are to be captured and pumped into existing water storages in the upper basins. These storages could then be
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Environmental Impact Assessment for the Proposed Hambanthota Sea Port

Executive Summary

utili8ed as a source for schemes supplying industrial and domestic water to the settlements and new industrial and infrastructure development pro!ects to be set up in the areas. Total water demand expected to be supplied by this scheme is A" 1C1. 1odel studies that has been carried out shows no significant increase in the current in the approach channels for all tide and wind conditions modelled. There is a significant reduction in current immediately east and west of the &ambanthota Sea Port +&SP,. 6verall impacts from changes in current patterns are rated as low. -n the selected layout the alignment of the proposed breakwaters is such that it facilitates natural by pass of sediments over the entrance channel. Therefore there will be least disturbance to the natural movement of sediments. There are no landslides in the pro!ect area and the topographical conditions shows no potential for creation of instability naturally. The pro!ect will have negative impacts on the drainage system in the area due to the construction of the perimeter road onto the north of Earagan Lewaya which can be considered as one of most significant impacts that could arise out of the proposed development. The unfavorable drainage conditions that would develop along ".$ km long periphery of heavily populated &ambanthota town could have an impact on the life in the town and would cause social unrest. &ow ever due to the availability of a permanent outlet to the sea when the navigation channel is constructed Earagan Lewaya area will not be flooded after construction of the pro!ect. 4ue to this flood threat to &ambanthota town will be completely eliminated. This will be one of the most positive impacts of the pro!ect. 4ue to land clearing demolition works excavation works blasting and drilling works cut and fill operations spoil disposal soil stabili8ation and landscaping works erosion could take place during heavy rains. Subse)uent generation of run7off would have an impact on the water bodies. %lthough the effects of these activities are temporary it is anticipated that the effects would be significant to certain extent unless appropriate mitigatory measures are implemented. 'urther improper storage of construction material such as cement and excavated material including spoil near water bodies could result in such material being washed during periods of heavy rains hence leading to higher turbidity problems. %lso any significant oil spills from machinery and other e)uipment used for construction works would cause contamination of soil and groundwater. %ny oil and heavy metals deposited in the soil may get washed away with the run7off during heavy rainy periods thus leading to contamination of the water bodies. Guarry works related to the supply of construction materials could cause both the air pollution as well as noise pollution due to blasting of rocks. 'urther air pollution may

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Environmental Impact Assessment for the Proposed Hambanthota Sea Port

Executive Summary

occur from dust particles as a result of transporting the )uarry material for construction works in vehicles moving on unpaved roads during initial periods of the pro!ect. &igh noise generating activities include rock7blasting works and pile driving used for breakwater and !etty construction works. Similarly other e)uipment used during construction works +i.e. road connections perimeter roads and port infrastructure facilities or buildings, as well as during operation +Cranes bulldo8ers and ships patroni8ing the harbour area generators operating during power failures etc., could have significant disturbing effects. These high noise levels near the sea and lewaya environment may scare away fish from the water column and even will have some disturbing effect. 'urther the port workers as well as the nearby residential areas could be considered as potential high noise recipients who will eventually experience hearing deficiencies. Dith regard to the Ecological Environment there are no threatened plant species in the pro!ect area but only endemic species which are very common to other parts of the country. Therefore no significant adverse impacts on terrestrial flora are envisaged when the biological diversity of terrestrial plants in Sri Lanka is concerned. &owever Earagan Lewaya and its associated environs which are reported to be excellent wetland habitat sites for birds and wildlife will be lost due to construction activities. -f proper mitigation measures are not taken this reduction in habitat will have significant adverse impacts on the survival of birds and wildlife some of which are nationally and globally threatened. 4redging works and the resulting turbidity will destroy some of the ecological habitats in the sea bottom thus reducing the extent of habitats available for many species. &owever the impact on habitats would be insignificant due to the minute extent of the area that is dredged compared to vast extent of similar habitats available in the area. >o adverse impacts on marine biological environment are envisaged due to disposal of dredged material as the material will not be disposed on shore or off shore areas but used for reclamation works. Pollution of the coastal environment could take place due to possible leaks of substances such as oil fuel and lubricants from e)uipment and vessels which are not properly maintained. %lso if untreated solid waste sewage and waste7water generated during construction are disposed in the coastal areas pollution could take place. These would increase the mortality of most of the animals and plants that live in these habitats. /reakwaters will provide suitable habitats for some fauna and flora and will provide shelter for benthic animals and therefore the populations of such animals may increase. Such an increase will have beneficial effects on the fisheries too because most of the animals that take refuge among these boulders would be important as edible species. Dith the new development there will be pressure on the transport and even the road conditions will deteriorate with the increased traffic.

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Environmental Impact Assessment for the Proposed Hambanthota Sea Port

Executive Summary

Studies indicate that the probability of impact on the &ambantota coast from an oil spill in the shipping lane is very low. &owever there could be a high impact from a spill closer to the shoreline in the study area. 3isks of contamination of the Earagan Lewaya and even the sea environment from ha8ardous materials could occur due to improper transport and accidental spillage from tankers and ships or even during careless handling and unloading events. &owever such incidences of contamination are rare. -t should be noted that the significance of impacts from dangerous or ha8ardous chemical contamination may depend on the nature of material(s +i.e. C> stipulated ha8ard class and subsidiary risks, and )uantity transported and spilled. -n the event of an occurrence of an accidental oil spill from ships and SP/1 facility acute oil pollution could be expected with severe impacts on marine biota. Proposed &SP has the potential to create additional demand for agricultural output promote manufacturing and services sector activities and thereby provide wide range of economic benefits in terms of employment income generation improving living standards and poverty reduction. The most significant losses the people in the area would experience would be the loss of houses and home gardens due to the pro!ect. The affected families may be given opportunities to decide the type of compensation they prefer +alternative land and houses or compensation in cash,. %lso priority could be given to the affected families whose livelihood has been affected to provide employment in the Port. %s part of the E-% Pro!ect a detailed review has been obtained of the %rchaeological &eritage of the &ambanthota area which is likely to be affected by the proposed port development. 'rom the report submitted by the %rchaeological Consultant in the E-% study it is evident that although the region itself has a rich archaeological heritage no detailed investigations have been carried out so far. % Comprehensive 1onitoring Plan including Compliance 1onitoring and -mpact Confirmation have been presented. The E-% study has given emphasis on the establishment of a reliable and sustainable institutional mechanism to monitor the impacts which is of primary importance for 5reenfield Port pro!ects. The Port pro!ect will provide significant benefits to the regional economy of Southern 3egion because it will form part of a new road7 and sea transportation corridor and help alleviate existing transportation constraints. -t will also contribute to the development of resources and industries in &ambantota and ad!oining districts. Together these developments will create new employment. 1a!or environmental threats will include relocation and compensation of persons affected because of the seaport pro!ect and the impact of the induced development. The mitigation

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Environmental Impact Assessment for the Proposed Hambanthota Sea Port

Executive Summary

of these impacts will have to be achieved through rigorous monitoring programmes that will be implemented during and after the seaport construction. -t has been recogni8ed that valuing all potential benefits is a complex task given the direct and indirect nature of expected pro!ect benefits. 4espite these limitations an economic analysis of the Pro!ect has been carried out for the study. %s implementation progresses so will monitoring and evaluation systems to provide planners and decision makers with data to help them refine various environmental parameters assess their economic impact in more )uantitative terms and better guide implementation. -n summary the negative environmental impacts would be mitigated and offset by the benefits of the Pro!ect. -t could be concluded that the negative impact of the pro!ect activities on different components as discussed are controllable while the development and operation of the &SP will bring about significant improvements on socio7economic conditions of affected communities and others living in &ambantota as well as in the Southern province. The feasibility consultants have estimated the overall Economic -nternal 3ate of 3eturn +E-33, on the pro!ect at about .# percent. The estimated mitigatory costs are less than one percent of total capital cost and hence estimated E-33 is expected to remain around .# percent. 1oreover if pro!ect benefits are defined to include increase in land values high prices for agricultural and fisheries output regional development etc the overall E-33 may take a much higher value. -n addition to these benefits complementary investments by other development pro!ects due to the proposed pro!ect will give ma!or economic benefits to cushion pro!ect impacts. 6n the basis of the above analysis and on the assumption that the recommended mitigatory measures are duly adopted and monitored in accordance with the guidelines given in the E-% study it is concluded that there are no ma!or insurmountable environmental impacts with the proposed construction and operation of the &ambanthota Sea Port.

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