Sri Lanka : Aquatic Resource Development and Quality Improvement

Project Name

Aquatic Resource Development and Quality Improvement

Project Number

34318-013

Country / Economy

• Sri Lanka

Project Status

Closed

Project Type / Modality of Assistance

• Loan

Source of Funding / Amount

Loan 1910-SRI: Aquatic Resource Development and Quality Improvement

Source	Amount
Ordinary capital resources	US$ 6.20 million

Loan 1911-SRI: Aquatic Resource Development and Quality Improvement

Source	Amount
Asian Development Fund	US$ 13.80 million

Loan: Aquatic Resource Development and Quality Improvement

Source	Amount
National Development Trust Fund	US$ 1.60 million

Strategic Agendas

• Environmentally sustainable growth

Drivers of Change

• Gender Equity and Mainstreaming
• Private sector development

Sector / Subsector

• Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development - Fishery

• Finance / Inclusive finance

Gender

Effective gender mainstreaming

Description

The Project will promote market-driven and sustainable management of inland fisheries and aquaculture through resource development and quality improvement. It will initially be implemented in nine districts in six provinces in the dry zone. Model aquaculture and fish processing enterprises will be developed, which may be replicated in other parts of the country, including the north and east, where the water resources exist.

The Project is organized in five parts: inland fisheries and aquaculture development, fish quality improvement and marketing, facilitation of access to credit, institutional strengthening, and project management. The successful implementation of these is expected to result in the

following outcomes: (i) increased production of freshwater fish and other aquatic products for the rural, urban, and export markets; (ii) improved quality and increased consumption of inland fish; (iii) improved access to credit for use in inland fisheries and aquaculture; and (iv) strengthened capacity of NAQDA and other sector institutions. Increased investment by small- and medium-scale private entrepreneurs will be encouraged, and community-based fisheries management will be strengthened.

Project Rationale and Linkage to Country/Regional Strategy

Fish are the principal source of protein for Sri Lanka?s population, and play a vital role in meeting basic nutritional and livelihood needs. Extensive water bodies constitute a potentially rich source of food and income for the rural population living in their proximity. However, in 2000, only 12% of the country?s fish production came from inland fisheries and aquaculture. The production potential of the freshwater and brackish water resources has not been optimally utilized due to

several factors, including lack of (i) fish seed for stocking, (ii) trained extension staff and outreach, and (iii) medium-term credit to finance increased production. An analysis of consumption trends shows a growing demand for fish

in both rural and urban markets. Significant opportunities are also emerging for sale of freshwater fish and aquatic products beyond traditional local markets. Both community-based and private sector initiatives and interest exist to avail of these opportunities, given appropriate support to invest in developing inland fisheries and aquaculture production and marketing.

Fish are the principal source of protein for Sri Lanka's population, and play a vital role in meeting basic nutritional and livelihood needs. Extensive water bodies constitute a potentially rich source of food and income for the rural population living in their proximity. However, in 2000, only 12% of the country?s fish production came from inland fisheries and aquaculture. The production potential of the freshwater and brackish water resources has not been optimally utilized due to several factors, including lack of (i) fish seed for stocking, (ii) trained extension staff and outreach, and (iii) medium-term credit to finance increased production.

An analysis of consumption trends shows a growing demand for fish in both rural and urban markets. Significant opportunities are also emerging for sale of freshwater fish and aquatic products beyond traditional local markets. Both community-based and private sector initiatives and interest exist to avail of these opportunities, given appropriate support to invest in developing inland fisheries and aquaculture production and marketing.

ADB?s strategy in Sri Lanka focuses on assisting the country's poverty reduction efforts through improved efficiency, more sustainable pro-poor growth, and better development opportunities for the poor. ADB's support for aquatic resource development and quality improvement will boost generation of productive employment opportunities and increase rural incomes. The intervention recognizes that both investment, and policy and institutional development are required to enhance productivity and increase employment opportunities for the poor. The Project is in line with the operations of ADB in the fisheries sector, which are steered by the objectives of resource sustainability, equity in balancing interests of various resource users, and efficiency in developing and managing aquatic resources.

Impact

Improved food security and reduced poverty, especially in rural areas.

Project Outcome

Description of Outcome

Sustainable management of market-driven inland fisheries and acquaculture. [Taken from the Project Framework.]

Progress Toward Outcome

The Review Mission in February 2010 noted continued good progress made and the management, planning and organization by the Project Director and his team will hope to complete the project as scheduled by 30 June 2010.

Implementation Progress

Description of Project Outputs

1. Inland Fisheries and Aquaculture Development

1.1 Fish Production Enhancement

1.2 Community-based fisheries management

1.3 Enterprise Development

1.4 Applied Research

2. Fish Quality Improvement and Marketing

3. Facilitating Access to Credit

4. Institutional Strengthening

5. Project Management

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

Construction completed at Anuradhapura, Monaragala,Polonnaruwa and Kurunegala RAEO.

Construction work for Ampara office is also complete

Stockings completed in 3129ha seasonal tanks (283 tanks) identified under 2008/09 programme

97 tanks covering 10,075 ha utilized under 2008/09 programme.(cumulative). About 7 million fish fingerlings stocked during 2009.

25 mini hatcheries established and fully operational and reared about 8 fingerlings during 2009.

A consignment of GIFT Tilapia, brought with the help of WorldFish Center. Negotiating with Chinese Govt. for import of Grass carp. A total of 10 fish species/varieties/stock supplied.

50 tanks selected for the introduction of community based fisheries under 2009 programme. CBOs strethened. Representives of CBO's trained in CBO's trained in CBO management and leader (50 tanks cumulative)

NGOs completed services in respect of 4 districts.

NAQDA has signed agreements with the private partner. Construction of Tissue culture laboratory is complete and equipment supplied. production is in progress.

NAQDA has signed agreements with the private partner. Broodstocks are being raised and reared and fish are maturing.

NAQDA has signed agreement with the private partner. Production of Artemia in progress. Post harvest processing and canning successful and production is introduced to the market and farming operations are continuing.

(d) Private partner identified. Agreement signed. Construction of ponds and other facilities at Pelwehera, Dambulla completed.

(e) Very poor response for the EOI.

(f) Very poor response for the EOI.

Construction of the laboratory building completed. Scientific equipment supplied; The center is in operation.

Construction of the laboratory building has been completed at battuluoya and is in operation

Two model drying/smoking units operational. Three sites for establishment of solar drier units identified and construction at Hakwatunawa is in progress.

32 fisheries organization (cumulative) have been registered as partner organization, Rs.10.13m (cumulative ) of loans disbursed.

121 loans approved amounting to Rs.72 million and Rs.67 million disbursed

The contract was awarded in 2008 and completed the construction and the building is occupied

Construction is complete and in operation

Information system handedover to NAQDA. Frame survey data analysis completed. Field officers trained on samling based on catch assesment is completed. 5 double cabs; 6 crew cabs; 50 motor bicycles; 1 tractor; 3 hand tractors procured and supplied.1 truck supplied.

Submersible/sledge pumps netting materials, office equipment, Generators, computers, scientific equipment etc. procured and supplied;

9 contracts awarded for the supply of scientific equipment.

training of fisheremen is completed..

cumulative 25 persons (9 p/m)

cumulative 3,585 offices (6,982.5 p/d)

cumulative 3050 farmers (4864 p/d)

2.89 p/m (cumulative 49.65 p/m) International and 14.08 p/m (cumulative 1540 p/m) inputs provided. Total inputs are provided.

Consultants contracted for design/construction supervision of 10 civil works contracts which was completed as of 30 June 2010.

Geographical Location

Safeguard Categories

Environment

B

Involuntary Resettlement

C

Indigenous Peoples

C

Summary of Environmental and Social Aspects

Environmental Aspects

Involuntary Resettlement

Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design

During Project Implementation

Business Opportunities

Consulting Services

A team of consultants will be engaged by Ministry of Fisheries and Aquatic Resources Development (MFOR) to support PMO in Project management and provided technical advice and assistance in the implementation of specific interventions. The consultants will be engaged through an international consulting firm in accordance with ADB Guidelines on Consultant Selection. Consulting services requirement is estimated at a total of 197 person-months, comprising 51 person-months of international; and 146 person-months of domestic consultants. The Project Management Support Specialists will assist and support PMO and the PIUs in project implementation. The Technical Support Specialists will provide technical advice and guidance to PMO and the PIUs in the following areas: (i) inland fisheries and aquaculture; (ii) mariculture; (iii) fish health management; (iv) fish processing and quality improvement; (v) marketing; (vi) community development; (vii) institutional development and training; (viii) fisheries information systems; and (ix) policy and legislation. Advance action for recruitment of consultants will be taken.

Procurement

All procurement under the Project will be done in accordance with ADB?s Guidelines for Procurement. Major items to be procured through international competitive bidding will be equipment and a small number of vehicles. Civil works will comprise many small contracts for establishing small-scale infrastructure and facilities,

which will be contracted through local competitive bidding. Nongovernment organizations and other service providers will also be contracted through local competitive bidding.

Contact

Responsible ADB Officer

Salgado, Nissanka Amila Buddhika

Responsible ADB Department

South Asia Department

Responsible ADB Division

Sri Lanka Resident Mission (SLRM)

Executing Agencies

Ministry of Fisheries and Aquatic Resources (formerly Ministry of Fisheries and Aquatic Resources Development and Rural Economic Affairs)

National Aquaculture Development Authority

Timetable

Concept Clearance

08 Mar 2002

Fact Finding

05 Mar 2002 to 15 Mar 2002

MRM

30 Apr 2002

Approval

05 Sep 2002

Last Review Mission

-

PDS Creation Date

02 Feb 2007

Last PDS Update

03 Jun 2011

Funding

Loan 1910-SRI

Loan 1911-SRI