Piloting urban environmental change in Sri Lanka : Metropolitan Environmental Improvement Program (MEIP) 1990 -1998

24559 December 1998 Ufbam MiMM Omrf Lm MJ   PILOTING URBAN ENVIRONMENTAL CHANGE IN SRI LANKA: METROPOLITAN ENVIRONMENTAL IMPROVEMENT PROGRAM 1990-1998 Metropolitan Environmental Improvement Program (MEIP) An initiative of the World Bank, executed in Sri Lanka in partnership with the Ministry of Plan Implementation and Parliamentary Affairs December 1998 This publication was written by Tanvi Nagpal and Illangovan Patchamuthu, The World Bank and Ravi Pereira and Mookiah Thiruchelvam, MEIP, Colombo.   Contents Foreword Acronyms Acknowledgments Summary: MEIP in perspective I. Brief History of MEIP-Colombo II. Strategies and Investment Planning III. Investment Program and Pilot Projects IV. Moving to Secondary Cities V. Lessons Learned   Foreword As one of the first environmental initiatives funded by the World Bank in Sri Lanka, the Metropolitan Environmental Improvement Program or MEIP, as it is commonly called, has lived up to high expectations. MEIP played a pioneering role in the evolution of the World Bank's dialogue with Sri Lankan stakeholders on environmental issues. It provided a venue for the government, civil society including nongovernmental organizations, the private sector, and the media to engage in constructive dialogue. Environmental policy, legislation and institutional reform in Sri Lanka have benefited from MEIP programs. MEIP has also assisted in mobilizing resources for environmental investments, including the World Bank-funded Colombo Environmental Improvement Project. Through its pilot and community demonstration projects, MEIP has not only made a difference in the lives of people, it has created structures that will enable communities to improve their own environment in the future. This publication and a series of issue papers that will emerge from the MEIP workshop in Colombo in December 1998, will highlight MEIP achievements, some of its innovations and the general lessons that were learned. We hope that these documents will be a useful guide for communities, nongovernmental organizations and other policy makers committed to solving the array of environmental problems that face urban areas every day. MEIP is a true team effort and we would like to extend our thanks to the Government of Sri Lanka and its officials, members of the private sector, representative of nongovernmental organization, community members, and MEIP staff. Roberto Bentjerodt Richard Ackermann Country Director, Sri Lanka Sector Manager, Environment South Asia Region South Asia Region The World Bank The World Bank November 20, 1998 iii   Abbreviations and Acronyms CDC: Community Development Council CEA: Central Environment Authority . CEIP: Colombo Environmental Improvement Program CIEDP: Committee for the Integration of Environment into the Development Process CMC: Colombo Municipal Council CMRSP: Colombo Metropolitan Regional Structural Plan EMS: Environmental Management Strategy GOSL: Government of Sri Lanka IDA: International Development Association IPM: Industrial Pollution Management KfW: Kreditanstalf fur Wiederanfban (Reconstruction Credit Agency, Germany) MEIP: Metropolitan Environmental Improvement Program M/HUD: Ministry of Housing and Urban Development NDB: National Development Bank NESC: National Environmental Steering Committee NGO: Nongovernmental Organization NWSDB: National Water Supply and Drainage Board PACE: Public Awareness Campaign on Environment PCAF: Pollution Control and Abatement Fund SMI-IV: Small and Medium Industries - IV SCOPE: Scheme for the Pollution of Control from Existing Industries UDA: Urban Development Authority UNDP: United Nations Development Programme USAID: United States Agency for International Development  Acknowledgments In addition to the Staff, Consultants, Associates and NPCs - Past and Present of MEIP - Colombo, the staff of the World Bank field office and the NPCs of other regional MEIPs the following persons were closely associated with various phases of MEIP: Abayawardana, Dr. S. A. K. Kotagaama, Prof. S. Ailapperuma, W. D. Kuruppu, R Algama, R. Kuruppu, Ms. S. Allahakone, Ms. N. Madugalle, Deshabandu T. B. Amarasinghe, Cecil Maliyadde, C. Amarasinghe, Patrick Marikkar, Ms. Neela Amaratunga, G. K. Mathes, Dr. J. A. P. Ambalavanar, Dr. V. McCauley, Dr. D. Amirthalingamn, A. Mendis, Prof W. Anandagoda, A. Mohamed, Akiel Arudpragasam, Prof. K. D. Mohideen, Faiz Baldwin, M. Mohottala, Dr. A. W. Bandarathilake, K. G. D. Mohottala, Ms. N. Basnayake, H. Mubarak, Dr. A. M. Bassnayake, Dr. B. F. A. Nanayakkara, E. A. Batuwitage, Ms. P. Nanayakkara, V. K. Bulankulame, S. W. P. Nesiah, Dr. D. Chandrasekera, D. Nilaweera, Dixon Chanmugam, Ms. Shenuka Obeysekera, Dr. Sarath Chularathna, H. M. U. Paskaralingain, R. de Mel, Sathis Peiris, Tilney de Silva, Dr. N. R. Perera, G. L. de Silva, Lalanath Perera, G. V. S. de Tissera, C. H. Perera, M. A. V. Dias, Ms. Visakha Perera, S. S. Dissanayake, Leonard Perinpanayagam, T. Dissanayake, T. K. Premachandra, D. G. Dixon, N. D. Ramanujam, Dr. P. Ellepola, Ms. Ramnani Ranaweera, K. A. H. Femando, R. M. S. Ratwatte, Charitha Fermando, Austin Samarakody, Priyantha Femando, Tissa Sapukotana, U. Gunapala, R. D. Scott, Ed Gunasekara, K. A. S. Selvanathan, Mano Gunashanhar, G. J. Seneviratne, Asitha Gunawardena, Vas Senevirtne, S. L. Gunawardene, Prasanna Silva, Prof N. Guneratne, A. W. Silva, Prasanna Hewage, Ari Sirivardana, Vasantha Jayamaha, J. H. J. Sivagnansothy, V. Jayamanne, Ms. Manel Siyambalapitiya, Dr. J. T. Jayaratne, K. A. Speldewinde, Ms. K. P. M. Jayasekera, Lakshman Weerasekera, D. Jayasinghe, Roy Weerasinghe, Ms. Sandhya Jayasinghe, Lionel Weragoda, N. V. K. K. Jayasundara, Shantha Wickremaratne, L Jayatilake, K. A. K. Wijewantha, N. W. E Jayawardena, C. D. R. A. Yasaratne, Ms. Shirani Jayawardena, A. R M. Jayawardena, A. S. Jayawardena, H. M. K. S. Jayaweera, D. S. Jinadasa, S. A. Junaid, M. N. Kanagasingam, T. Karunaratne, Ms. Malika Keerthiratne, J. G. vi  World Bank Staff Colombo Development Council Department of Meteorology Abedin, Ms. E. Department of Motor Traffic Ackerman, R. Development Finance Corporation of Ceylon Bentjerodt, R. Extemal Resources Department Davis, Ms. Gloria Federation of Charnbers of Commerce and Industries of Sri Hafeez, Rohil Lanka Hulugalle, Ms. S. Galle Municipal Council Illangovan, P. Industrial Technology Institute (formally CISIR) Kim, Ms. K. Industrial Association of Sri Lanka Kitamori, Ms. K. Kandy Municipal Council Koch-Wesser, Ms. M. Legal Draftsmen's Department Nagpal, Ms. T. Marine Pollution Prevention Authority Nangia, Rakesh Ministry of Finance Ramankutty, R. Ministry of Forestry and Environment Shah, J. Ministry of Housing and Urban Development Stem, S. Ministry of Industrial Development Vanjani, Ms. S. Ministry of Plan Implementation & Parliamentary Affairs Walton, T. E. Ministry of Provincial Council and Local Government Williams, D. Ministry of Science and Technology Zao, N. Ministry of Transport and Highways National Aquatic Resources and Research and Development MEIP Staff Agency National Building Research Organization de Silva, Shamali National Development Bank Fernando, Bernadette National Housing and Development Authority Hiripitya, Chandana National Planning Department Illangovan, Patchamuthu National Water Supply and Drainage Board Pereira, Ravi Nuwara Eliya Municipal Council Perera, Tamara Sri Lanka Association for Advancement of Science Pakeer, Zuhura Sri Lanka Land Reclamation and Development Corporation Pilapitiya, Sumith Sri Lanka Ports Authority Ramachandran, Easha Sri Lanka Standards Institution Thiruchelvamn, M. Transport Study and Planning Centre Veliah, Mankesh University of Moratuwa Wanniarachchi, Malrak i University of Peradeniya Wijeratne, Danny Urban Development Authority Wijeratne, Danny Urban Program Unit Nongovernmental Organizations Westem Provincial Council Sevanatha Donor Organizations Environmental Foundation Ltd Asia Foundation ArtEacharya Foundation Canadian Intemational Development Agency EMACE Foundation Government of Belgium Evergreen Foundation Nuwara E1liya Tourism and Trade Services Association Government of the Netherlands Norwegian Agency for Development Cooperation (NORAD) United Nations Development Program Companies United States Agency for Intemational Development Andropogan Associates, USA Associated Engineering Intemational Ltd, Canada BKH Consulting Engineers, the Netherlands Engineering Consultants Ltd, Sri Lanka Environmental Engineering Consultants, Sri Lanka Environmental Resources Management, UK Grannt-McCann- Erickson, Sri Lanka Resource Development Consultants, Sri Lanka Roche Intemational, Canada Soil and Water Ltd, Finland Govermment and Private Institutions Board of Investment Central Environmental Authority Ceylon National Chamber of Industries Ceylon Petroleum Corporation Coast Conservation Department vii   MEIP in Perspective In the eight years of its operation in Colombo, the Metropolitan Environmental Improvement Program (MEIP) has made a lasting impression on policy makers and communities in the way they perceive urban environmental issues. MEIP has brought new ideas and innovative approaches to the table. It has partnered with local governments, the private sector, nongovernmental organizations (NGO) and communities to pilot projects, programs and approaches that have often, but not always, been success stories. Many of the ideas originated by MEIP have been adopted by the Government of Sri Lanka. Private enterprises have embraced good environmental practices; communities have demonstrated their ability to effectively address environmental problems; and NGOs have forged links with local governnents and authorities enabling creative problem solving. From its inception, MEIP was viewed as a pilot program that would introduce and test concepts and innovative practices in urban environmental management in Sri Lanka. Its establishment coincided with the Government's own foray into environmental protection, and thus the program was able to play a pioneering role in the evolution of interventions for environmental improvement. In the policy arena, MEIP assumed a leadership role in the formulation of strategies for overall environmental management in Colombo, and especially for industrial pollution and air quality management. On the investment front, MEIP facilitated the preparation of the Colombo Environment Improvement Project (CEIP) and establishment of the Pollution Control and Abatement Fund (PCAF). Through its role in community-based pilot projects, MEIP has been able to make a direct impact on the lives of the poor, and has also demonstrated that empowered communities can invest in and improve their living environment. MEIP has been only marginally successful at reforming institutions to make them function more effectively. While in the initial years it played a direct role and often substituted for a government entity, in later years MEIP increasingly took a back seat, allowing state agencies to carry forward the process it had begun. CEIP and PCAF are today independently managed by the Ministry of Housing and Urban Development (MIHUD) and the National Development Bank (NDB), respectively. MEIP has been successful because of strong govemment comrnitrnent. However, not unlike many donor-fimded projects, the commitment has tended to wane over a period of time, especially after there has been internalization of the concepts and processes. Clearly, some MEIP initiatives will last long, and those elements of the MEIP approach which have been internalized by its partners will continue to effect the way in which environmental issues are handled in metropolitan areas in Sri Lanka. MEIP performance has been independently assessed by the Program Evaluation and Monitoring Unit of the Ministry of Plan Implementation and Parliamentary Affairs in the Govermment of Sri Lanka (GOSL), and by the Environmental Foundation Limited, an NGO. The Government evaluation team was of the opinion that MEIP interventions had  been timely and relevant, and had positive impacts in improving the environment of the metropolitan area. However, given the worsening of the general urban environment, the report also concluded that MEIP should have been expanded and its activities continued. The NGO evaluation was also supportive of overall MEIP contributions but added reasons why the program's goals had not been more fully realized. These included the following: * Action plans and policies have not been implemented with sufficient speed and efficiency; * Implementing agencies and available mechanisms are not sufficiently developed or geared toward dealing with the program's requirements; * Lack of funds or delays in obtaining funds for project implementation; and * Lack of sustained political will and interest. This report describes MEIP and its lessons in Sri Lanka. The first section of this publication briefly describes the history of MEIP-Colombo; the second section discusses the formulation of different strategies and the preparation of investment plans, as well as the move to secondary cities; the third section discusses the investment program and pilot projects; the fourth section explains the move to secondary cities; and the final section contains the lessons learned. 2  Box 1: Snapshot of MEIP achievements Environmental Strategy * Clean Air 2000 Action Plan * Industrial Pollution Management Policy, Strategy and Action Plan * Environmental Management Strategy for Colombo * Secondary City Profiles and Action Plans - Galle & Kandy * Hazardous Waste Management Capacity Building * Training Environmental Agencies, NGOs and Financial Institutions * Laboratory Equipment for CEA, CISIR and NBRO * Hazardous Waste Regulations * Model Environmental Statute for Western Provincial Council * Curriculum Development for Environmental Education * Cleaner Production Audit for over 50 industrial units * Information, Education and Communication with NGOs and Private Sector Investment Planning and Resource Mobilization * Colombo Environmental Improvement Project: Beira Lake Restoration, Common Industrial Wastewater Treatment Facilities at Ekala and Ratmalana and Sanitary Landfill . Pollution Control and Abatement Fund (PCAF) * Air Quality Monitoring Network * CleaNet - Information Clearing House Community Empowerment * Clean Settlements Program - Bo-Sevana and Stadiumgama * Integrated Environment Improvement Projects - Galle & Kandy * Sanitation & Water Supply Project - Galle * Solid Waste Management Project - Galle Knowledge Exchange * Envirolanka'92 . MEIP Inter Country Workshops * International & National Workshops * Sector Specific In-country Workshops . Participation in Government Environmental Committees Pilot Innovation * Private-Public- University collaborated Composting Plant at Kandy * Community Based Water Supply/Drainage Schemes Galle and Kandy * Community Based Solid Waste Management Projects - Galle and Kandy * Community Based Urban Greening Project - Nuwara Eliya . Coastal Zone Monitoring - Schools Project - Galle 3  I. Brief History of MEIP-Colombo In 1989, responding to the environmental challenges of urban growth in Asian cities, the World Bank and the United Nations Development Program (UNDP), initiated the Metropolitan Environmental Improvement Program in five Asian cities. The defining feature of this approach is its commitment to improving the institutional basis of environmental management and devising locally anchored and sustainable solutions to the environmental challenges of urban growth. Specific objectives include the following: * Assist urban metropolitan areas develop environmental management strategies and action plans in the context of urban and industrial development; * Strengthen the institutional and legislative framework for environmental planning, monitoring and enforcement; * Help identify and prepare high priority investment projects and mobilize the resources necessary to implement these; * Promote community-led efforts to improve the living environment; and * Initiate a process of cross country dialogue to share information and lessons. The World Bank procured funding from European and Australian donors in 1995 to continue and expand MEIP operations. Currently MEIP offices are active in Metro Manila, Jakarta and Colombo. Secondary cities such as Cebu and Davao (the Philippines), Semarang and Surabaya (Indonesia), and Kandy and Galle (Sri Lanka), have also entered the program.' New programs are commencing in Haiphong, Vietnam and Thailand. MEIP was endorsed by GOSL in 1990, and placed under the Ministry of Policy Planning and Implementation which worked closely with the Ministry of Environment and Parliamentary Affairs.2 An inter-ministerial National Environmental Steering Committee3 (NESC) was constituted to provide policy guidance and direction to MEIP, as well as to review progress periodically. A National Program Coordinator was appointed to coordinate and manage MEIP in Sri Lanka. Technical Working Groups were appointed to examine relevant issues when they emerged. In the eight years since MEIP was first constituted many political changes have taken place in Sri Lanka. From the perspective of MEIP, however, environmental issues have continued to gain increasing recognition. The NESC became defunct in 1994, and its place was taken by the Committee to Integrate Environmental Concerns in Development in 1998. This committee is jointly chaired by the Secretaries to the Ministry of Finance & Planning, and the Ministry of Forestry and Environment. I Between 1989 and 1993, MEIP also functioned in Beijing (China), Mumbai (India), and Kathmandu (Nepal). 2 These ministries have since been reorganized and MEIP is no longer under their purvey. 3 National Environmental Steering Committee (1990-1994) jointly chaired by Secretaries to the Ministries of Finance and Policy Planning & Implementation, and Environment & Parliamentary Affairs, and including Secretaries of key development Ministries. 4  Environmental protection and natural resources management have been a part of Sri Lanka's constitution for two decades. The Central Environment Authority (CEA), created in 1980, has been granted increasing powers of regulation. In early 1990, a cabinet-level Ministry of Environment was created, giving higher visibility to environmental issues. Although these mechanisms and legislation were in place, they were unable to respond adequately to the environmental challenges that Sri Lanka was facing because of limited financial resources and technical manpower. The cornerstone of the MEIP approach in Colombo was the preparation of the Environmental Management Strategy (EMS). The objective of the EMS was to provide a city-wide strategic framework within which public and private agencies and community groups could implement planned environmental improvement and investment activities. The EMS not only established environmental priorities but also the actions needed to achieve them. Equally importantly, the priorities and strategies were established through a consultative process involving local governments, nongovernmental organizations, the private sector, environmental experts and World Bank representatives. An environmental survey highlighted the fact that, in Colombo, the greatest challenges lay in domestic wastewater and industrial and air pollution management. The initial MEIP workshops served as a catalyst for the formation of a broader environmental network, and laid the groundwork for the development of an EMS for Greater Colombo. II. Strategies and Investment Planning Environmental Management Strategy and Action Plan Stemming from the Government's National Environmental Action Plan, the preparation of an EMS was the first MEIP initiative. Funded by UNDP and Dutch Trust Funds, the World Bank and GOSL jointly developed the terms of reference for consultants and selected them. The Urban Development Authority (UDA) functioned as the key government counterpart agency responsible for overseeing EMS and Action Plan development. At each stage, the UDA took the lead in clarifying policy options, with policy guidance from the NESC and technical consultants' consortium. Completed in 1994, the EMS now serves as the framework for the Colombo Environment Improvement Project (CEIP) which became a major MEIP investment program. The restoration of Beira Lake, central effluent treatment plants at Ekala/Ja-Ela and Ratrnalana/Moratuwa, municipal solid waste collection and disposal, and community environmental management and infrastructure development were all part of CEIP. The EMS has also been integrated into the broader National Environmental Action Plan. The UDA established its own Environmental Management Unit to integrate EMS into land use and infrastructure planning. The recently published Colombo Metropolitan Regional Structure Plan (CMRSP) embraces EMS principles such as landuse and natural resource planning. The UDA will use the CMRSP as a framework to guide Colombo's future growth. EMS development was divided into three phases. The first phase of environmental assessment identified the following priorities for the Colombo urban 5  area: loss of natural resources; deterioration of groundwater and surface water quality; flooding and stagnation of water courses; solid waste pollution; deteriorating ambient air quality; environmental degradation in low income areas; and traffic congestion. In phase two, environmental objectives were defined and strategies to meet these objectives were outlined. Costs and benefits of alternative strategies were estimated in order to make judgments regarding their financial feasibility. Six sectoral strategies were created. They included environmental structure planing, overall water management, storm water management, wastewater management, infrastructure development, and the emergence of new growth patterns that respond to the natural ecological systems of the larger metropolitan area. Phase three included the preparation of a ten-year Action Plan for implementing the EMS and proposing investment plans for specific sectors. The Action Plan covered public, private and NGO activities, including economic, fiscal and legal measures; investment projects, spatial plans, monitoring, institutional strengthening, community awareness and education. Issue-specific plans were created for air, water and land management. Remedial and preventive actions were separated. The original environmental survey and Box 2 - EMS Outcomes,and Priorities'.-- Outcome X ' ' ; - '- ~- '~~' . ' ' - - EMS development helped to clarify . Quantified-extent of-environmental -- specific issues. MEIP-Colombo played degradation -- - a pivotal role in policy issues involving -- EstablisbedJ a realistic set of environmental i - industrial pollution management, air -' quality goals and improvement targets p " Illt-in n q.^ pollution, and solid waste maniagement. - Form ulated a'least-cost strategy and action - - --plan fior environmental inpro've'en't- ': Equally important, although not sector specific, were water-pollution issues Priorities'. - - and the cross-cutting aims of Qg-based land use planning . ' -. . community development and upgrading. . ~,Flooding an'd r'eclamation of wetlands ''; '=Pilot projects were identified under each ~ Solid~waste management of these headings. . Wastewater management (domesitic and' -- industrial sources) * Vehicular air pollution control Industrial Pollution Management MEIP-Colombo organized its first workshop on industrial pollution management (IPM) in April 1991. The event drew representatives from national government agencies and local authorities, the private sector, NGOs, financial institutions, and the media. Stakeholders discussed the nature and extent of the problem, and the technical, legal and regulatory issues surrounding IPM. As a direct consequence of the workshop, GOSL obtained technical assistance from the World Bank through MEIP in 1992. The objective was to develop a strategy and action plan for IPM, including regulatory actions and incentives needed to promote compliance with the National Environmental Act and Regulations. The IPM strategy that emerged from this project was consequently endorsed by Ministers of Industry, Science and Technology and Environment, and the private 6  sector, including the Chamber of Commerce and Industry in September 1996. The main principles of the strategy are articulated in Box 3. Box 3 -Indus trial Pollution Management. Policy and Straitegy- Principles . Pollution prevention at the.source * Central wastewa6terltreatment :-; Polluter pays for the waste gen'erated.:-, - -';--- .. - ; Clustering industrial units-in estates and parks . Providing incentives and strengthening en'forcement .-. Three-way partnership involving'govenment community and private sector - Following an endorsement by the governnent, CEA assumed responsibility for the implementation of the IPM Action Plan. The pace of implementation has been slow and the dates no longer coincide with those outlined in the original plan. This is largely due to the weak institutional capabilities of CEA. Some of the fundamental problems identified by the strategy remain unresolved. Air Quality Management/Clean Air 2000 Projected rates of economic and vehicular growth show that air pollution in Colombo will become critical in the next decade unless preventive measures are adopted now. Firewood used in homes for cooking and high sulfur and leaded fuel used by the expanding vehicle fleet are the main culprits. In August 1991, MEIP organized an Air Quality Management workshop and invited policy makers, government officials, researchers, representatives from NGOs and academics. Participants agreed that in the absence of reliable data it would not be possible to create strategies to control air pollution in Colombo. As a follow up, MEIP organized training on air quality management, drawing on the knowledge of experts from Beijing and Bombay who had created air quality management plans. Important issues such as setting standards, monitoring techniques and instrumentation, air quality modeling, fuel pricing, pollution abatement and control and various regulatory and other measures were discussed at this meeting. Based on these discussions, participants designed a draft action plan for air pollution management - the Clean Air 2000 Action Plan (see Box 4.). In 1993, the Clean Air Plan was endorsed by GOSL through a decision of the cabinet of ministers. 7  Bbxi4 - Key