Water and other urban infrastructure and services / Urban sanitation - Urban sewerage - Urban water supply

L2477

The Project has three principal thrusts to support research and data collection, institutional development, and infrastructure investment. It comprises three components: Component 1 covers the rehabilitation, expansion, and development of water and sanitation infrastructure for major towns in the northwestern dry zone (Chilaw, Mannar, Puttalam, and Vavuniya), including urban and periurban water supply, and septage management and sanitation. Component 2 provides the foundations to (i) support decentralization of service delivery functions to regional offices; (ii) improve water resource management, coordination, and planning ability; and (iii) increase public awareness. Component 3 is designed to strengthen institutional capacity for project management and implementation activities.

L2977

The proposed project (the Project) to be funded through additional financing of $40 million from ADB s special fund resources will not change the scope of the original project. The Project will supplement funding of the original project to meet cost overruns to ensure that safe drinking water and sanitation services are provided to the four urban areas of Chilaw, Mannar, Puttalam, and Vavuniya and to achieve the full impact envisaged under the original project. The reasons for the cost overruns are (i) original estimates were based on feasibility studies in 2007 and not on detailed designs, (ii) increase in cost 2008 estimates caused by price escalations between 2009 and 2011 , (iii) increase in distribution pipe diameters to cater for future population growth, and (iv) enhanced water treatment improvements for rehabilitation works at the Chilaw and Puttalam water treatment plants. There will be no changes to the sanitation infrastructure and existing arrangements under the original loan will be followed. The closing date of the Project is December 2016, which will be synchronized with the original project after extension of closing date of the original loan .

L2477

Sri Lanka's northern dry zone receives little rainfall, mostly within the short winter monsoon. Residents of the region experience income and nonincome poverty. For decades, major towns have accommodated those displaced by the civil war. Water is therefore essential to improve the lives of residents of this region and those affected by years of conflict.

Water schemes in major towns have been stretched beyond their design life and have substantial inefficiencies; coverage is limited to a reduced number of beneficiaries; and standards are often not met, which could impact the health of those served. Where piped drinking water is not available, water is extracted from other sources; however quality is often poor and seldom verified. In addition to limited access, water supplies are usually insufficient, particularly at the end of the dry season. Demand and willingness to pay for water and sanitation are nonetheless high, particularly in Mannar, and Puttalam and Vavuniya. As water supply augmentation is considered in emerging regional centers, wastewater and septage management must be addressed as an integral part of the solution.

The problem analysis reveals that (i) access to basic facilities and services, including water supply and sanitation, is restricted; and existing infrastructure is inadequate, insufficient, and/or damaged; (ii) water resource coordination and planning are weak, and essential policies for water resource management are lacking;

(iii) operation and maintenance of existing assets is suboptimal; and (iv) institutional capacity is poor, and awareness among users and beneficiaries is inadequate.

L2977

Without additional financing, the original project scope cannot be completed due to cost

overruns. Additional financing is being requested at this stage to ensure that all major civil works contracts can be awarded to complete the original project. Any delay in award of these contracts will result in significant delay of project completion.

Improved physical well-being of urban populations in Sri Lanka's northwestern urban dry zone (Vavuniya, Mannar,Puttalam, and Chilaw)

Improved water supply and sanitation infrastructure and services northwestern dry zone of Sri Lanka. To this end, the Project will (i) improve and expand infrastructure and services, (ii) strengthen institutions for service delivery and water resource management, and (iii) build project management and implementation capacity.

Progress: As of 22 October 2019, the physical progress is 99.5% and the financial progress is 98%.

Grant 130 was financially closed on 23 August 2017 and Loan 2477 was financially closed on 31 August 2017. $13.6 million was cancelled on Financial closure of L2477 and G130, mainly due to cancellation of the contract for rehabilitation of existing two water treatment plants under L2477.

Grant 129 was physically closed on 30 September 2017 and financially closed on August 2018. Cumulative contract awards and cumulative disbursements for Grant 129 are $23.219 million (99.99%) and $23.219million (99.99%) respectively.

Loan 2977 was physically closed on 31 December 2018, and financially to be closed on 31 October 2019. Cumulative contract awards and disbursement for L2977 are $36.16 million (99%) and $34.59 million (94%) respectively.

Audited Project Accounts: Audit reports for year 2018 due on 30 June 2019 received on 19 June 2019, with qualified opinion.

1.1 & 1.2 Water resources developed and water supply infrastrcture expanded and rehabilitated

2.2 Water resource management, coordination and planning ability strengthened

2.3 Public awareness increased

3. Project management and implementation capacity built

1.3 Septage management and sanitation improved

2.1 Decentralization of service delivery functions to Regional offices supported

On Going

Completed

Completed

Completed

Completed

Completed

Completed

Completed

Completed

On Going

On Going

On Going

On Going

On Going

On Going

On Going

On Going

On Going

On Going

Competed and handed over to UC.

Completed and handed over to UC.

Completed.

Completed and handed over to UC.

Completed.

Completed.

Completed.

Completed.

All contracts completed except rehabilitation of existing water treatment plant contract.

All contracts completed except rehabilitation of existing water treatment plant contract.

Construction work is in progress. Physical progress of water treatment plant is 99.6% and Transmission mains and distribution network system 71%.

Completed

Completed.

An estimated 871 person-months (86 international, 785 national) of consulting services are needed. Consulting services are

required to (i) facilitate project implementation and management; and (ii) strengthen institutional, administrative, and financial

capacities of the regional offices. NWSDB will recruit two firms, in accordance with ADB's Guidelines on the Use of Consultants

(2007, as amended from time to time). This includes (i) package A, for design and construction supervision support; and

(ii) package B, for institutional development. Package A will include 60 person-months of international expertise and 588 person-months of national. In addition, about 788 person-months of technical and support staff will be provided under package A for 9roject implementation. Package B will include 11 person-months of international expertise and 79 person-months of national; while package C, for water resource management, will include 15

person-months of international expertise and 118 person-months of national. The consulting firms will be engaged using the qualityand cost-based selection method with a standard quality-cost ratio of 80:20.

NWSDB's regional offices will carry out most of the procurement; while central and provincial irrigation departments, supported by the project implementation consultants, will take responsibility for procurement activities relating to tank rehabilitation and construction. Procurement of water supply and septage schemes will follow procedures for international and national competitive bidding. Goods and related services, and civil works to be

financed from loan proceeds will be procured in accordance with ADB's Procurement Guidelines (2007, as amended from time to time).

Civil works contracts valued over $3.0 million equivalent and equipment contracts valued over $500,000 equivalent will be undertaken through international competitive bidding procedures, while civil works contracts valued at $3.0 million equivalent or less and equipment packages valued at $500,000 equivalent or less will be procured following national competitive bidding procedures acceptable to ADB. Packages valued at $100,000 equivalent or

less will be under shopping procedures.