Sri Lanka: Local Government Infrastructure Improvement Project

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

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.

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

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.