Sri Lanka: Greater Colombo Water and Wastewater Management Improvement Investment Program - Tranche 2

Sovereign Project | 45148-007

Summary

On 25 October 2012, Asian Development Bank (ADB) approved a multitranche financing facility (MFF) of $300 million, envisaged to be funded from ADB s Ordinary Capital Resources (OCR) and Asian Development Fund (ADF), for the Greater Colombo Water and Wastewater Management Improvement Investment Program (the Investment Program). Tranche 1 ($84 million) under the Investment Program was approved by the President on 22 November 2012. The MFF is envisaged to comprise three additional tranches as follows: $88 million (Project 2 in 2013); $90 million (Project 3 in 2015); and $38 million (Project 4 in 2016). Tranches 1 and 2 focus on reducing non-revenue water (NRW) and improving water service efficiency in Greater Colombo. Tranches 3 and 4 will support improvement of wastewater collection and treatment facilities and management services in Greater Colombo. The Framework Financing Agreement (FFA) for the Investment Program was signed on 12 September 2012.

Latest Project Documents

Consulting Notices

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Procurement Notices

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Procurement Documents


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Project Name Greater Colombo Water and Wastewater Management Improvement Investment Program - Tranche 2
Project Number 45148-007
Country Sri Lanka
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3029-SRI: Greater Colombo Water and Wastewater Management Improvement Investment Program - Tranche 2
Ordinary capital resources US$ 70.00 million
Loan 3030-SRI: Greater Colombo Water and Wastewater Management Improvement Investment Program - Tranche 2
Asian Development Fund US$ 18.00 million
Loan 8282-SRI: Greater Colombo Water and Wastewater Management Improvement Investment Program - Tranche 2
Agence Francaise de Developpement US$ 70.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Water and other urban infrastructure and services - Urban policy, institutional and capacity development - Urban water supply
Gender Equity and Mainstreaming Effective gender mainstreaming
Description

On 25 October 2012, Asian Development Bank (ADB) approved a multitranche financing facility (MFF) of $300 million, envisaged to be funded from ADB s Ordinary Capital Resources (OCR) and Asian Development Fund (ADF), for the Greater Colombo Water and Wastewater Management Improvement Investment Program (the Investment Program). Tranche 1 ($84 million) under the Investment Program was approved by the President on 22 November 2012. The MFF is envisaged to comprise three additional tranches as follows: $88 million (Project 2 in 2013); $90 million (Project 3 in 2015); and $38 million (Project 4 in 2016). Tranches 1 and 2 focus on reducing non-revenue water (NRW) and improving water service efficiency in Greater Colombo. Tranches 3 and 4 will support improvement of wastewater collection and treatment facilities and management services in Greater Colombo. The Framework Financing Agreement (FFA) for the Investment Program was signed on 12 September 2012.

The Government submitted to ADB a periodic financing request (PFR) for Project 2, on 3 June 2013 (Appendix 1). The proposed Project 2 will continue investments in water supply, NRW reduction in the south part of Colombo city, and water supply service improvements for National Water Supply and Drainage Board (NWSDB). The proposed Project 2 will also support the Colombo Municipal Council (CMC) to complete the project preparation activities for the wastewater investments under Projects 3 and 4. The proposed Project 2 will include: (i) $80 million ADB loan from both OCR and ADF for investments in water supply improvements and NRW reduction; and (ii) $8 million ADB loan from ADF support for the CMC for advance action on wastewater investments. The ADB's Country Operations Business Plan, 2013-2015, for Sri Lanka includes a firm provision for Project 2 in 2013.

Project Rationale and Linkage to Country/Regional Strategy The Government of Sri Lanka (Government) targets for 2015, according to the Water and Sanitation Sector Assessment Strategy and Roadmap are to increase the proportion of: (i) households with sustainable access to safe drinking water to 86%; and (ii) the population with access to improved sanitation to 93%. Significant progress has been made towards achieving these targets. During the period 1990-2004: (i) the population with access to improved water sources increased from 91% to 98%, and from 62% to 74% in urban and rural areas , respectively; and (ii) the population with access to sanitation countrywide, increased from 69% to 91% . However, the overall coverage of piped water supply is still very low at about 30%, and only 3% of the total population is connected to a piped wastewater system. About 95% of Colombo is covered by a piped water supply system. However, the system has low and fluctuating system pressure; some areas of the city receive water for an average of only 6 10 hours a day. Many parts of the distribution network were built more than 100 years ago. NRW remains around 49%. The Investment Program responds to the urgent need to rehabilitate and expand water supply and wastewater facilities in Greater Colombo and to improve the operational efficiency of service and management in water supply and wastewater sectors. The MFF will fund about 20% of the $1.5 billion financing needed by the Government for its investment plan for water and sanitation in Greater Colombo.
Impact Improved water supply and wastewater service and management in Greater Colombo
Project Outcome
Description of Outcome Improved system, efficiency and financial sustainability of water supply and wastewater services in Greater Colombo
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Rehabilitated and expanded water supply system, and reduced NRW, in Greater Colombo

2. Completed designs and improved preparedness for wastewater investments

3. Strengthened institutional structure and capacity of service providers

4. Project 2 successfully managed and implemented

Status of Implementation Progress (Outputs, Activities, and Issues)

1. Rehabilitated and expanded water supply system, and reduced NRW, in Greater Colombo :

Out of the two major packages, ICB 04 technical evaluation report has been submitted to ADB and ICB 03 IFB published and bidding documents have been issued.

2. Completed designs and improved preparedness for wastewater investments: Preliminary designs are completed

3. Strengthened institutional structure and capacity of service providers:

Yet to be implemented

4. Project 2 successfully managed and implemented:

Bidding process is ongoing

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Project 2 is classified as category B for environment. IEE was prepared for investment under proposed Project 2 in accordance to ADB s Safeguard Policy Statement (SPS), 2009. The IEE shows that the net environmental benefits to the population will be positive and large, as a result of improved water efficiency and security through the implementation of NRW reduction programs and expansion and rehabilitation of water supply infrastructure. The IEE outlines a grievance redress mechanism to ensure easy and quick redress of any complaints or concerns during project implementation. The EMP provides adequate mitigation measures for any foreseen temporary construction impacts, including traffic management to ensure limited disruption to traffic flow and access. Support from the consultants will ensure that the PMUs have adequate capacity to manage any environmental impact during detailed design and construction. The EMP contained within the IEE will form part of the bidding and contract documents. The EARF prepared under the Investment Program will be used to guide the assessment, implementation and monitoring of environmental safeguards.
Involuntary Resettlement Proposed Project 2 is classified as category B for involuntary resettlement in accordance with ADB s Safeguard Policy Statement (2009).
Indigenous Peoples Proposed Project 2 is classified as category C for indigenous peoples in accordance with ADB s Safeguard Policy Statement (2009).
Stakeholder Communication, Participation, and Consultation
During Project Design

Meaningful consultations will be undertaken with the affected persons as an ongoing excercise, their host communities, and civil society for every project identified as having involuntary resettlement impacts. The consultation process established for the project will employ a range of formal and informal consultative methods. Different techniques of consultation with stakeholders are proposed during project preparation, such as in-depth interviews, public meetings, group discussions, etc. Particular attention will be paid to the needs of the disadvantaged or vulnerable groups, especially those below the poverty line, the landless, the elderly, female-headed households, women, poor/low income households and those without legal title to land.

The key stakeholders to be consulted during project preparation, Resettlement Plan implementation and project implementation include:

(i) affected persons and beneficiaries;

(ii) elected representatives, community leaders, and representatives of community based organisations;

(iii) local NGOs;

(iv) NWSDB/CMC, RDA, PRDA, CEA, MLD, and relevant government agency representatives, including authorities responsible for land acquisition, protection and conservation of forests and environment, archaeological sites, religious sites, tourism authorities and other relevant government departments such as health and education; residents, shopkeepers and business persons who live and work alongside the roads where pipes will be laid and near sites where offices/facilities will be built;

(v) project proponents (MWSD, MLGPC, NWSDB, CMC), PMU and PIU staff,

(vi) project NGO and contractor

(vii) ADB and Government of Sri Lanka.

During Project Implementation A stakeholder communications strategy will be implemented to: (i) promote awareness on the project and water supply and wastewater projects during implementation; (ii) secure participation of the community in all stages of project planning and implementation; (iii) establish two-way flow of information and dialogue with directly involved stakeholders to integrate their concerns and increase support and involvement in the project; and (iv) secure participation of stakeholders including quality professionals and contractors in project implementation. The Communication Strategy includes a media-based awareness campaign, web disclosures and direct communication through meetings and consultations. The Consultation and Participation Plan (CPP), included in Appendix 5 of the PAM, also identifies consultation and disclosure activities to be undertaken and the institutions responsible. Budget for implementing the Communication Strategy and CPP are incorporated into the project budget.
Business Opportunities
Consulting Services

Four consulting firms and a non-government organization (NGO) will be engaged, namely: (i) Management Advisory and Supervision Consultants (MASC) , (ii) Design, Supervision and Institutional Development Consultants (DSIDC) for Greater Colombo Wastewater Management, (iii) Manpower Development and Training Division Training System Modernization Consultants (TSMC), (iv) Awareness Generation and Media Consultants (AGMC), and (v) Community Mobilization and Behavioral Change NGO (the NGO). All consultants will be recruited according to ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). It is estimated that the total consulting inputs under Project 2 under the 5 contract packages as outlined above will be1,787 person months (100 international, and 1687 national).

Consulting services QCBS 1,643 person-months $ 9.529

CQS 144 person-months $ 0.280

Procurement

All procurement of goods and works, including the AFD subprojects, will be undertaken in accordance with ADB's Procurement Guidelines (2013, as amended from time to time).

International competitive bidding 5 contracts $ 86.124

National competitive bidding 8 contracts $ 4.612

Shopping 12 contracts $ 0.437

Responsible ADB Officer Kamal Dahanayake
Responsible ADB Department South Asia Department
Responsible ADB Division Sri Lanka Resident Mission
Executing Agencies
Ministry of Prov'l Councils & Regional DevelopmentSPRIP@EUREKA.LK330 Union Place, Colombo 2
Sri Lanka
Ministry of Water Supply and DrainageSri Lanka
Timetable
Concept Clearance -
Fact Finding -
MRM 12 Jul 2013
Approval 26 Sep 2013
Last Review Mission -
Last PDS Update 20 Mar 2015

Loan 3029-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Sep 2013 03 Jun 2014 23 Sep 2014 30 Jun 2019 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 136.00 Cumulative Contract Awards
ADB 70.00 26 Sep 2013 0.32 0.00 0%
Counterpart 66.00 Cumulative Disbursements
Cofinancing 0.00 26 Sep 2013 0.07 0.00 0%

Loan 3030-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Sep 2013 03 Jun 2014 23 Sep 2014 30 Jun 2019 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 18.00 Cumulative Contract Awards
ADB 18.00 26 Sep 2013 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 Sep 2013 0.00 0.00 0%

Loan 8282-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Nov 2013 29 Sep 2014 - 30 Sep 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 70.00 Cumulative Contract Awards
ADB 0.00 14 Nov 2013 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 70.00 14 Nov 2013 0.00 0.00 0%

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Greater Colombo Water and Wastewater Management Improvement Investment Program - Tranches 1 and 2: Social Monitoring Report (January-December 2014) Social Monitoring Reports Mar 2015
Greater Colombo Water and Wastewater Management Improvement Investment Program - Tranches 1 and 2: Environmental Monitoring Report (January-December 2014) Environmental Monitoring Reports Mar 2015
Greater Colombo Water and Wastewater Management Improvement Investment Program (Tranche 2): Ambatale Water Supply System Improvements and Energy Saving Project (Draft) Initial Environmental Examination Jul 2013
Greater Colombo Water and Wastewater Management Improvement Investment Program (Tranche 2): Towns East of Colombo District Water Supply Project (Draft) Initial Environmental Examination Jul 2013
Greater Colombo Water and Wastewater Management Improvement Investment Program (Tranche 2): Ambatale Water Supply System Improvements and Energy Savings Project Resettlement Plan (Draft) Resettlement Plans Jul 2013
Greater Colombo Water and Wastewater Management Improvement Investment Program (Tranche 2): Resettlement Framework Resettlement Frameworks Jul 2013
Greater Colombo Water and Wastewater Management Improvement Investment Program (Tranche 2): Towns East of Colombo District Water Supply Project (Draft) Resettlement Plans Jul 2013
Greater Colombo Water and Wastewater Management Improvement Investment Program (Tranche 2): South Part of Colombo City Subproject (Draft) Initial Environmental Examination Jun 2013
Greater Colombo Water and Wastewater Management Improvement Investment Program (Tranche 2): Resettlement Plan (Draft) Resettlement Plans Jun 2013
Greater Colombo Water and Wastewater Management Improvement Investment Program (Tranche 2): Environmental Assessment Review Framework Environmental Assessment and Review Framework Jun 2013

Evaluation Documents

See also: Independent Evaluation

No documents found.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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