Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date 12 Feb 2007
PDS Updated as of 30 Mar 2009

Project Name Plantation Development
Country Sri Lanka
Project/Program Number 34023-013
Status Approved
Geographical Location The Project area covers 15 districts where the regional plantation companies are located.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector Agriculture, natural resources and rural development
Subsector Agricultural Production and Markets
Strategic Agendas
Drivers of Change
Gender Equity and Mainstreaming Categories

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Loan1913/1914-0
Loan1913/1914-0
TOTAL US$ 0

Safeguard Categories

For more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories

Environment B
Involuntary Resettlement C

Summary of Environmental and Social Issues

The purpose of social programs is to reduce conflict between the workers and management and also to alleviate problems of alcoholism, domestic violence and indebtedness. The Project is carrying out awareness programs, gender awareness programs and training in household financial management through NGOs and these programs will be continued and expanded and modified with the experience gained. Training will be provided to estate management and staff to sensitize them to the problems and needs of the workers and to improve the labor-management relationship. The developed countries are increasingly concerned over the hygiene of tea and the working, living and social conditions of estate workers. RPCs that are unable to comply with buyers social audits will ultimately be unable to sell their tea. The Project will assist the RPCs to comply with the audit terms through rectifying the shortcomings in the social and welfare facilities and obtain certification as authorized suppliers. The Project will also assist the RPCs to improve working conditions in the field and factories to meet the norms of fair trade labeling organizations. There is general uncertainty of the exact areas of fields and their locations as the estate boundaries have changed over the years. Existing maps do not provide information on the terrain and soil types to enable management planning and control of soil degradation. The Project will assist the RPCs to conduct specific area surveys initially to ensure that land for development is suitable for the purpose. Subsequent surveys will cover all the holdings of the RPCs or estates and areas for sub-leasing. The surveys will be conducted to standards applied by professional agencies in Sri Lanka utilizing GPS/GIS. Rehabilitation of estate roads was included in the scope as approved by ADB in April 2008. This required preparation of an Environmental Assessment Review Process (EARP) was preparead. Following this EARP, an Initial Environmental Exeamination is carried out for each road and reviewed by ADB.

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

All RPCs were consulted during the preparation of the Project. Representatives of estates workers from some RPCs, Workers Unions' officials in Colombo, and some Estate Workers Housing Cooperatives were consulted byt the consultants's team and the ADB team. The same sector stakeholders are regularly consultated during the yearly review missions carried out by ADB staff.

During Project Design
During Project Implementation

Description

The Project's goal is to ensure the long-term sustainability of the plantation sector without external assistance. The Project's objectives are to (i) enhance the profitability and financial position of the sector, and (ii) improve the living and working conditions of the estate workers. The Project area covers 15 districts where the regional plantation companies' estates are located. The Project components comprise (i) investment component to provide finance (in the form of credit or equity and quasi-equity instruments) core business activities in tea, rubber and coconuts, crop and non-crop diversification, factory consolidation and automation, effluent treatment plants and marketing; (ii) social and environmental component to cover self-help housing and amenities, social awareness programs, strengthening of estate workers' cooperatives and societies, and worker welfare facilities; (iii) marketing initiatives through product research and development, fair trade labeling and support for compliance with requirements of ethical trade, and (iv) institutional strengthening through support for an industry umbrella body, consulting services, training and development of outgrower models.

Project Rationale and Linkage to Country/Regional Strategy

Development Impact

Project Outcome

Description of Outcome
Progress Towards Outcome

Outputs and Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2007 Feb 12
Consulting Services
A total of 23 person-months of international and 24 person-months of domestic consulting services will be engaged individually by the PA in consultation with the PIU in accordance with the ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for engagement of domestic consultants.
Procurement
Goods and services for implementing the Project will be procured in accordance with ADB's Guidelines for Procurement. The OCR loan for credit line and Plantation Fund will follow procurement procedures applicable to ADB loans for development finance institutions. Civil works to be carried out by the RPCs may be done on a force account basis. Any civil works that are not carried out the RPCs may be undertaken through local competitive bidding in accordance with procedures acceptable to ADB.
Procurement and Consulting Notices
http://www.adb.org/projects/34023-013/business-opportunities

Timetable

Concept Clearance
Fact-finding 21 Mar 2002 to 11 Apr 2002
Management Review Meeting 22 May 2002
Approval 13 Sep 2002
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Loan 1913 13 Sep 2002 08 Nov 2002 29 Aug 2003 30 Jun 2009 30 Nov 2009 22 Feb 2010
Loan 1914 13 Sep 2002 08 Nov 2002 29 Aug 2003 30 Jun 2009 31 Jul 2009 26 Nov 2009

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
02 Sep 2014 Loan 1913 8,909 0 99.00%
02 Sep 2014 Loan 1914 4,888 0 91.00%
Cumulative Disbursements
02 Sep 2014 Loan 1913 9,032 0 100.00%
02 Sep 2014 Loan 1914 5,386 0 100.00%

Status of Covenants

Covenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.

Approval No. Category
Sector Social Financial Economic Others Safeguards Project Financial Statements
Loan 1913/1914

Contacts and Update Details

Responsible ADB Officer Marzia Mongiorgi-Lorenzo (mmongiorgi@adb.org)
Responsible ADB Department South Asia Department
Responsible ADB Divisions Environment, Natural Resources & Agriculture Division, SARD
Executing Agencies Ministry of Plantation Industries (MPI)
Raja Premadasa

Development Finance Corporation of Ceylon
Jayantha Nagendran

Links

Project Website http://www.adb.org/projects/34023-013/main
List of Project Documents http://www.adb.org/projects/34023-013/documents