Sri Lanka: Conflict-affected Area Rehabilitation Project (formerly Emergency Assistance for the Rehabilitation of the North and East)

Agriculture, natural resources and rural development - Irrigation - Rural sanitation - Rural water supply services

Education - Education sector development

Energy - Electricity transmission and distribution

Health - Health system development

Public sector management - Social protection initiatives

Transport - Road transport (non-urban)

The main objective of the Project, is to support rehabilitation of essential infrastructure and restoration of community livelihoods in the most severely conflict-affected areas of the North East, predominantly in the districts of Jaffna, Mannar, Kilinochchi, Mullaitivu, Vavuniya, Trincomalee, Batticaloa, and Ampara. The Project will focus on the highest priority sectors and areas for which ADB's assistance is most appropriate, based on the needs assessment and reflecting consultations with the Government, development partners, the LTTE, communities, nongovernment organizations, and others.

The Project is being prepared and will be implemented using a sector approach, though which subprojects will be selected on the basis of pre-agreed criteria. It will include the following: component A - rehabilitation of about 500 kilometers (km) of national roads; component B - rehabilitation of power transmission, distribution, and rural electrification; component C - smaller-scale community infrastructure rehabilitation and activities, such as schools, water supplies, health centers, minor roads, renewable energy, income generation opportunities, and others, for conflict-affected communities throughout the Project area; and component D - a feasibility study for water supply and sanitation systems for the Jaffna peninsula, where the lack of such systems largely because of the conflict has resulted in a serious public health crisis.

Since 1983, the Northern and Eastern provinces of Sri Lanka have been a battleground, in which about 65,000 people have been killed, many more have been disabled, and at least 800,000 people have been displaced. The whole population of Sri Lanka has suffered from the consequences of the war, but the North East and the adjacent areas have borne the brunt of the conflict. Livelihoods, particularly for the poor in the conflict-affected areas, have been destroyed. Much of the physical infrastructure and the means of production have been damaged, destroyed, or have deteriorated over time. The conflict has been a constraint to growth and poverty reduction. It has not only caused extensive suffering and dislocation but has also sharply reduced the economic contribution of the region to national development, required defense expenditures that became unsustainable, restrained growth in social expenditures, discouraged investment, and stifled tourism.

Resumption of economic life and re-establishment of normal livelihood depend critically on rehabilitation of key infrastructure facilities and restoration of communities. The ceasefire that commenced in February 2002 and which continues to be in effect has provided the opportunity for supporting these essential activities.

1.Rehabilitate and reconstruct essential infrastructure

2.Restore community livelihood

3.Support the ongoing peace process

2.Power system rehabilitation

4.Schools and health centers rehabilitation and reconstruction

5.Irrigation, water supply, and sanitation facilities provision

6.Village livelihood restoration

1.Roads rehabilitation

3.Rural electrification

Procurement under the Project will be carried out in accordance with ADB's Guidelines for Procurement, and the Government's procedures acceptable to ADB.

For components A and C, due to the wide geographical spread of the project sites, the need for local knowledge of security and other frequently-changing matters relevant to accessing the project area, and the small scale of most packages, they are not likely to attract international contractors and suppliers. In addition, detailed designs for the works will not be prepared before bidding, rather works will be bid based on simple standard designs and quanitities to be refined during construction. Therefore, for these components, local procurement procedures acceptable to ADB will be the preferred mode. For Component B, specifically for the larger transmission line subcomponent, international procurement procedures will be adopted.