Sri Lanka: Local Government Infrastructure Improvement Project

Sovereign Project | 35201-013 Status: Closed

Summary

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.

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Project Name Local Government Infrastructure Improvement Project
Project Number 35201-013
Country Sri Lanka
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2201-SRI: Local Government Infrastructure Improvement Project
Asian Development Fund US$ 50.00 million
Strategic Agendas Environmentally sustainable growth
Drivers of Change Governance and capacity development
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

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.

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

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Local Government Infrastructure Improvement Project: Environmental and Social Monitoring Report (April-August 2012) Environmental and Social Monitoring Reports Aug 2012
Local Government Infrastructure Improvement Project: Road Improvement in Ganga Ihala Pradeshiya Sabha Resettlement Plans Nov 2010
Local Government Infrastructure Improvement Project-Construction of Access Road & Multi Purpose Building for Ratnapura Municipal Council Resettlement Plans Mar 2010
Local Government Infrastructure Improvement Project: Construction of Access Road & Multi Purpose Building for Ratnapura Municipal Council Resettlement Plans Mar 2010
Local Government Infrastructure Improvement Project: Library and Health Centre Building Subproject in Eheliyagoda Pradeshiya Sabawa Resettlement Plans Sep 2009
Local Government Infrastructure Improvement Project: Library and Health Centre Building Subproject in Galgamuwa Pradeshiya Sabha Resettlement Plans Sep 2009
Local Government Infrastructure Improvement Project: Improvement of Drainage System in Rambukkana Pradeshiya Sabha Resettlement Plans Sep 2009
Local Government Infrastructure Improvement Project: Local Government Infrastructure Improvement Project-Library and Health Centre Building Subproject in Galgamuwa Pradeshiya Sabha Resettlement Plans Sep 2009
Local Government Infrastructure Improvement Project: Library and Health Centre Building Subproject of Kuruvita Pradeshiya Sabha Resettlement Plans Jul 2009
Local Government Infrastructure Improvement Project: Storm Water Management Subproject in Gampaha Municipal Council Resettlement Plans Mar 2009
Local Government Infrastructure Improvement Project: Construction of New Building for Library and Health Centre in Chilaw Urban Council Resettlement Plans Mar 2009
Local Government Infrastructure Improvement Project: Community Water Supply Subproject in Ella Pradeshiya Sabha Resettlement Plans Dec 2008
Local Government Infrastructure Improvement Project: Urban Roads Improvement Subproject in Galewala Pradeshiya Sabha Resettlement Plans Oct 2008
Local Government Infrastructure Improvement Project: Rural Roads Improvement Subproject in Ukuwela Pradeshiya Sabha Resettlement Plans Oct 2008
Local Government Infrastructure Improvement Project: Environmental Assessment of the Financial Intermediation Loan (Draft) Environmental Assessment and Measures Aug 2006
Local Government Infrastructure Improvement Project Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Oct 2005
Local Government Infrastructure Improvement Project: Resettlement Framework Resettlement Frameworks Aug 2005

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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