Sri Lanka: Wastewater Management Improvement in Colombo Municipal Council

Sovereign Project | 47255-001

Summary

The proposed TA will enhance the management of the wastewater facilities. Specifically, the TA will help develop a wastewater tariff structure, and assist CMC to enter into a PPP for the two new wastewater treatment plants to be constructed under the MFF. The TA will also further enhance the tariff introduction in CMC area and PPP target set by the MFF.

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Project Name Wastewater Management Improvement in Colombo Municipal Council
Project Number 47255-001
Country Sri Lanka
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8733-SRI: Wastewater Management Improvement in Colombo Municipal Council
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector Water and other urban infrastructure and services - Urban policy, institutional and capacity development - Urban sewerage
Gender Equity and Mainstreaming No gender elements
Description The proposed TA will enhance the management of the wastewater facilities. Specifically, the TA will help develop a wastewater tariff structure, and assist CMC to enter into a PPP for the two new wastewater treatment plants to be constructed under the MFF. The TA will also further enhance the tariff introduction in CMC area and PPP target set by the MFF.
Project Rationale and Linkage to Country/Regional Strategy The Government's wastewater sector objective is to increase sewerage coverage from 2.5% to 7% in the country by 2020. The target for sewerage coverage in Colombo city is from 25% to 100% by 2020. The Country Partnership Strategy (CPS) 2012 -2016 will focus on three pillars: (i) inclusive and sustainable economic growth, (ii) catalyzing private investment and enhancing the effectiveness of public investment, and (iii) human resource and knowledge development. The proposed TA is in the COBP 2014-2016 to support CMC in: (i) institutional reforms and financial sustainability of CMC operations; (ii) capacity enhancement in the CMC to manage the wastewater services; (iii) PPP in wastewater service provision; and (iv) improved sustainability of the Colombo city wastewater services. The proposed TA is also linked to MFF Tranche 3, which is included in the COBP.
Impact Improved financial sustainability and operations of wastewater services in Colombo city.
Project Outcome
Description of Outcome Improved capacity to operate and maintain wastewater services in Colombo city.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Wastewater tariff scheme prepared.

2. Public- private partnership (PPP) modality identified and prepared.

3. Information campaign and training program implemented.

Status of Implementation Progress (Outputs, Activities, and Issues) Recruitment of individual consultants ongoing.
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The CMC, which is the main beneficiary of the TA, has taken action in 2013 to maintain separate accounts for the wastewater services, and is examining the necessary changes to municipal by-laws that may impede introducing a wastewater tariff. The Mayor of CMC has agreed in principle, to the introduction of a wastewater tariff, but emphasizes the need to conduct an intensive awareness-raising campaign to apprise residents of the need for the action. Further discussions are necessary to agree on the tariff structure and its application.
During Project Implementation The CMC, which is the main beneficiary of the TA, has taken action in 2013 to maintain separate accounts for the wastewater services, and is examining the necessary changes to municipal by-laws that may impede introducing a wastewater tariff. The Mayor of CMC has agreed in principle, to the introduction of a wastewater tariff, but emphasizes the need to conduct an intensive awareness-raising campaign to apprise residents of the need for the action. Further discussions are necessary to agree on the tariff structure and its application.
Business Opportunities
Consulting Services

The TA will be implemented over 2 years from October 2014 to September 2016. Consulting services totaling 30 person-months (15 person-months international and 15 personmonths national) will be required. The international consultants will provide expertise in the fields of water sector utility finances, wastewater tariff, and PPP. The national consultants will provide support on technical issues, public communications, and legal aspects.

The consultants will be engaged by ADB in accordance with its Guidelines on the Use of Consultants (2013, as amended from time to time) on an individual basis.

Procurement not applicable.
Responsible ADB Officer Mingyuan Fan
Responsible ADB Department South Asia Department
Responsible ADB Division Urban Development and Water Division, SARD
Executing Agencies
Ministry of Prov'l Councils & Regional Development330 Union Place, Colombo 2
Sri Lanka
Timetable
Concept Clearance 15 May 2014
Fact Finding 10 Jun 2014 to 15 Jun 2014
MRM -
Approval 03 Oct 2014
Last Review Mission -
Last PDS Update 20 Mar 2015

TA 8733-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Oct 2014 10 Dec 2014 10 Dec 2014 30 Sep 2016 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 50,000.00 0.00 0.00 0.00 550,000.00 03 Oct 2014 42,269.37

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