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The Upper
Kotmale Hydropower Project (UKHP) was conceived with the preparation of
a master plan for hydroelectric development in the Mahaweli Basin in 1968.
The concepts in the master plan were further studied in 1985-1987 when the
Government of Japan funded a feasibility study to examine Hydropower options
in the Upper reaches of Kotmale Oya (Stream). Five sites and eight alternative
development schemes were examined in the feasibility study and the report
concluded that the development of two sites were technically and economically
feasible. The two sites were a reservoir type development at Caledonia and
a run of river project at Talawakelle. The project at Caledonia involved
the displacement of 2700 families and inundation of large area of tea land.
The Government of Japan then provided further
funding for the Engineering Service Study, which included the review of
the feasibility study, selection of the optimal development plan, the
development of the detailed design and preparation of Tender Documents
and an Environmental Impact Assessment Report (EIAR). The EIAR was issued
in September 1994. The Final Design Report was completed in March 1995.
The Environmental Impact Assessment identified key issues associated with
the UKHP as, impacts on water fall aesthetics due to stream flow reductions,
social impacts due to resettlement of affected people, possible effects
on ground water due to tunnelling, impacts due to de-watering of streams
on down stream water uses and impacts on bio-diversity.
Further detailed studies on alternatives were completed
in 1996 and the Secretary of the Ministry of Forestry and Environment
granted approval for the project under the National Environment Act in
July 1998 subject to strict adoption of proposed mitigatory measures to
minimise possible environmental impacts, which included the development
of a watershed management plan, maintenance of daytime flows over the
waterfalls, monitoring of groundwater levels, an assessment of biodiversity,
management of tunnel waste and a resettlement program. This decision was
challenged in the Court of Appeal in October 1998. The Secretary of the
Ministry of Forestry and Environment gave final order in March 2000, subsequent
to the settlement of the appeal.
The Government of Sri Lanka secured financial support
in March 2002 from the Government of Japan to implement the project, signing
of Loan Agreement SL-P74 in March 28, 2002.
The decision of the Secretary in March 2000
was further strengthened with the Gazetting
of the National Environmental (Upper Kotmale Hydro-power Project – Monitoring)
Regulations No. 1, 2003.
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