The expected impact of the Project is increased growth potential of and reduced poverty in the selected local authorities LAs) of Sri Lanka. The expected outcome is improved urban environments, long-term improvement of the economy, and improved living conditions for the LA population outside Colombo. The Project will (i) improve urban management, planning, and financing capacity of the sector institutions, especially LAs, to ensure sustainable provision of urban infrastructure services; (ii) enhance urban livelihoods; and (iii) increase Government and LA staff capacity for administering urban infrastructure supply and maintenance works.
| Project Name | Local Government Infrastructure Improvement Project | ||||
| Project Number | 35201-013 | ||||
| Country | Sri Lanka | ||||
| Project Status | Closed | ||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth |
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| Drivers of Change | Governance and capacity development |
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| Sector / Subsector |
Transport - Urban roads and traffic management Water and other urban infrastructure and services - Other urban services - Urban flood protection - Urban policy, institutional and capacity development - Urban solid waste management - Urban water supply |
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| Gender Equity and Mainstreaming | Some gender elements | ||||
| Description | The expected impact of the Project is increased growth potential of and reduced poverty in the selected local authorities LAs) of Sri Lanka. The expected outcome is improved urban environments, long-term improvement of the economy, and improved living conditions for the LA population outside Colombo. The Project will (i) improve urban management, planning, and financing capacity of the sector institutions, especially LAs, to ensure sustainable provision of urban infrastructure services; (ii) enhance urban livelihoods; and (iii) increase Government and LA staff capacity for administering urban infrastructure supply and maintenance works. | ||||
| Project Rationale and Linkage to Country/Regional Strategy | The urban population now represents about 27% of the national total and is still growing rapidly, at nearly 6% per year compared with a total national population growth rate of around 2.5% per year. The huge influx of mostly poor migrants into cities and towns has overwhelmed infrastructure systems originally designed for much smaller populations. With limited infrastructure and services, the old and new urban centers are not capable of adequately supporting the increasing economic productivity of households. Living conditions in the urban centers are poor for most residents. The urban poor suffer disproportionately from bad environmental sanitation, resulting in illness caused by waterborne and vertor borne diseases. Urban service deficiencies include deteriorated roads, inadequate supplies of potable water, poor drainage and domestic sanitation. The vast majority of urban residents still rely on septic tanks or has no sanitation facilities; only 23% of households have sewerage collections. Uncontrolled dumping and low collection levels of solid waste add to these problems. The Project is in line with the Government's development priorities and ADB's country strategy and program (2004-2008) to improve infrastructure and services provision, particularly water supply and sanitation. These constitute a basic human right; representing a crucial factor in preventing illness and raising universal health status. Following the stakeholders' discussion, wherein a detailed questionnaire was circulated to all LAs, responses were received from 189 LAs representing nearly two thirds of the eligible LAs. Based on the scores from the questionnaire and a decision by the second Steering Committee meeting, 68 priority LAs were selected. Local government capacity building is needed to prioritize and commit investment. The most critical strategic choice made by the project design is to place modest capital directly in the hands of the LAs and to allow them to decide on the subsectors and support them to enhance their powers to collect revenues, which falls under their existing rights. |
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| Impact | Provide sustainable economic growth and poverty reduction through the provision of urban infrastructure services and the promotion of urban management improvement to urban LAs in Sri Lanka. | ||||
Project Outcome
| Description of Outcome | Improved urban management and living conditions for LA population outside of Colombo. |
| Progress Toward Outcome | Subprojects in 109 local authorities with a total of 202 civil works and equipment contract packages have been/are being implemented. Out of 202 packages, 189 packages were physically completed as of 15 September 2012. |
| Implementation Progress | |
|---|---|
| Description of Project Outputs | Part A: Urban Provincial/Municipal/Urban Management Improvement Part A.1: Revenue enhancement and participatory governance Part A: Urban Provincial/Municipal/Urban Management Improvement Part A.2: Human resource development Part A: Urban Provincial/Municipal/Urban Management Improvement Part A.3: Institutional strengthening of LLDF Part B: Basic Local Government Infrastructure and Services Delivery Part B.1: Improved provision of water supply Part B: Basic Local Government Infrastructure and Services Delivery Part B.2: Improved provision of sewerage Part B: Basic Local Government Infrastructure and Service Delivery Part B.3: Improved drainage Part B: Basic Local Government Infrastructure and Services Delivery Part B.4: Improved LA roads Part B: Basic Local Government Infrastructure and Services Delivery Part B.5: Improved community health facilities Part C: Project Coordination and Administration Support Part C.1: Institutional strengthening of LLDF Part C.2: Project Management |
| Status of Implementation Progress (Outputs, Activities, and Issues) | DPRs have a provision setting apart 1% to 5% of the project cost for O&M depending on the nature of the project. 108 action plans are prepared. FLIP is being implemented in 108 LAs, and annual plans are being developed. Performance of FLIP implementation in 2009 was evaluated in each province. MLGPC issued letter of appreciation to the best-performing local authority (LA) in each province. It is encouraged that this practice continues in support to the improvement of financial management and local governance in the participating LAs. PCU designed a FLIP implementation status report to effectively monitor FLIP implementation. 32 LAs (out of total 109) increased their own-source revenues by 40% or more (from 2006-2010). Details are being collected, and will be reported. Around 200 LAs have already participated in the workshops. Around 300 staff from the Provincial Councils have already attended the workshops. A few training programs have been conducted under the Capacity Building component of the Project, and other training programs are in progress. PCU/SPCU consultants appointed to assist the Project. The D&S consultants are appointed for all the subprojects. Repayment level of LGIIP as on 12Aug2012 is 70.9%. LLDF is exerting further efforts in collaboration with the MLGPC and provincial councils to improve loan recover. Training programs conducted to LLDF staff under phase 1 of the Capacity Building program of the project through SLILG. Training on exposure in Loan Management and Banking Activities completed. At present 259 LAs are LLDF clients. Prepared Ongoing LLDF is supported by Sr. Manager (legal, admin and compliance), Finance Manager, Sr. Manager (Operation), and Compliance Officer, Deputy Manager (environment and social), Admin Asst and support staff. 2nd tier staff to support these officials have been appointed. LLDF is also assisted by two engineering expert consultants and two financial expert consultants. 1725 households have been provided for. Mission in August 2012 encouraged that additional technical support be provided to local authorities for O&M of the assets built. Support should include tariff setting and collection, technical, capacity building for O&M, and preparation of O&M manuals and guidelines. 2 LAs completed. Other 5 projects are ongoing. 2 LAs completed. Other 5 projects are ongoing. One subproject for 1000 households completed and another subproject for 400 households is in progress. projects are ongoing. Around 12 km drains are completed vide drainage projects. Construction in drainage has reduced water logging in those 5 areas where new drainage systems have been implemented. Some subprojects are still ongong. 31 LA facility projects completed. projects are ongoing. 16 libraries completed as of end-2011. Senior Manager (Operations), Manager (Accounts), Compliance Officer, Deputy Manager (Environment and Social) are functioning in LLDF. Also supported by 2 Engineering Expert Consultants and 2 Financial Expert consultants. Training conducted under Phase 1 of the capacity building program of the Project. Sub Project Coordination Units established under the provincial councils have been provided with necessry technical staff. SPCU consultants appointed at provincial levels to assist in project implementation and on-the-job training on project management. |
| Geographical Location | whole country |
Safeguard Categories
| Environment | FI |
| Involuntary Resettlement | B |
| Indigenous Peoples | B |
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 | Consulting services are required to facilitate project implementation and to strengthen the institutional, administrative, and financial capacities of the LAs and the LLDF. Consultants and a pool of technical advisors will be selected and engaged in accordance with Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers, using quality- and cost-based selection method and other arrangements satisfactory to ADB for the engagement of domestic consultants. |
| Procurement | Procurement of goods and services under the Project will be carried out in accordance with ADB's Guidelines for Procurement and the Government's tender procedures acceptable to ADB. Local procurement will be the preferred mode for all project activities. It is presently intended that none of the Project's civil works contracts will exceed $500,000 in cost. Local competitive bidding procedures will be used acceptable to ADB. Equipment and materials will be procured under international competitive bidding where the estimated cost is more than $500,000 equivalent, by international shopping where the estimated cost is between $300,000 and $500,000 equivalent and through local procurement procedures acceptable to ADB where the estimated cost is $300,000 equivalent or less. |
Responsible Staff
| Responsible ADB Officer | Fan, Mingyuan |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Urban Development and Water Division, SARD |
| Executing Agencies |
Ministry of Provincial Councils & Local Gov't Mr. K. L. Induruwage 17 A, Barnes Place, Colombo 07 Ministry of Provincial Councils & Local Government Dr. Y. D. Nihal Jayathilaka 330 Union Place, Colombo 02 |
Timetable
| Concept Clearance | 08 Mar 2003 |
| Fact Finding | 24 Mar 2005 to 07 Apr 2005 |
| MRM | 26 Jul 2005 |
| Approval | 24 Nov 2005 |
| Last Review Mission | - |
| PDS Creation Date | 01 Mar 2006 |
| Last PDS Update | 28 Sep 2012 |
Loan 2201-SRI
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 24 Nov 2005 | 19 Jan 2006 | 30 Jun 2006 | 30 Apr 2012 | 30 Jan 2013 | 12 Oct 2015 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 66.67 | Cumulative Contract Awards | |||
| ADB | 50.00 | 24 Nov 2005 | 38.78 | 0.00 | 98% |
| Counterpart | 16.67 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 24 Nov 2005 | 39.70 | 0.00 | 100% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | - | - | Satisfactory | - | Partly satisfactory |
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.
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Evaluation Documents See also: Independent Evaluation
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