The proposed project will build upon and further develop from the project design of the ongoing Local Government Infrastructure Improvement Project. In order to better cater to the needs of the lagging local authorities of the country and ensure higher effectiveness, adjustments in the implementation and financing modality are required. There are needs to analyze lessons from LGIIP and satisfy the requirements under the Safeguard Policy Statement (2009). Project preparatory support to local authorities in the lagging regions will help enhance immediate start-up of the project after the approval of the loan. The TA's outcome is to prepare the project design including the financial and institutional arrangements that the government and ADB have agreed upon.
|Project Name||Lagging Local Authorities Infrastructure Development Project|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
|Sector / Subsector||
Water and other urban infrastructure and services / Other urban services - Urban policy, institutional and capacity development - Urban sewerage - Urban water supply
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The proposed project will build upon and further develop from the project design of the ongoing Local Government Infrastructure Improvement Project. In order to better cater to the needs of the lagging local authorities of the country and ensure higher effectiveness, adjustments in the implementation and financing modality are required. There are needs to analyze lessons from LGIIP and satisfy the requirements under the Safeguard Policy Statement (2009). Project preparatory support to local authorities in the lagging regions will help enhance immediate start-up of the project after the approval of the loan. The TA's outcome is to prepare the project design including the financial and institutional arrangements that the government and ADB have agreed upon.|
|Project Rationale and Linkage to Country/Regional Strategy||
The government's 10-year development plan (2006-2016), the Mahinda Chintana, prioritizes investment in developing basic infrastructure and services, including supply of drinking water and access roads. It further emphasizes the need to re-design the development programs to give the larger share of development benefits to the poor, through the provision of improved infrastructure and market facilities, among others. Local service deficiencies in local authorities include deteriorated roads, inadequate supplies of potable water, poor drainage and domestic sanitation, and inadequate health and market facilities. Local authorities in the North and East also face severe constraints in their capacities to effectively discharge their responsibilities. Other local authorities are likewise incapable of providing public health and environmental infrastructure services to keep pace with the increasing economic productivity of households. As the income inequality is rising and the poor areas tend to have poorer quality of and access to basic facilities and services, there is an urgent need to cater to the needs of lagging areas in the country.
ADB approved the Local Government Infrastructure Improvement Project (LGIIP) in 2005 to respond to the needs of local authorities in improving basic infrastructure and services. In alignment with the government's devolved structure, local authorities are implementing subprojects in the areas of water supply, roads, drainage and sewerage, and other municipal facilities including public libraries, health centers, and office buildings, through financing from the Local Loans and Development Fund (LLDF). While local authorities were at first reluctant to contribute 7% and borrow 33% to 53% of subproject costs, demands have gradually increased and already surpassed the allocation under the LGIIP. The LGIIP has adopted a bottom-up and demand-driven approach, where the local authorities are responsible for identifying, preparing, proposing, and implementing subprojects. As against the common practice of grant-based financing for basic infrastructure improvement, a partial-debt financing even to small local authorities has brought a paradigm shift, providing local authorities with higher ownership and strong incentives to increase revenue collection and improve the financial management, while a revolving fund from repayments created in the LLDF would enable further financing to local authorities. There are additional financing needs to respond to growing needs of basic infrastructure and services for people s better livelihood.
While lessons from the LGIIP will be analyzed in depth during project preparation, one limitation found was that some pradeshiya sabhas are unable to benefit due to their financial constraints. The loan amount is capped at two times the local authority s annual own revenue in order to ensure repayment, but this makes many poor pradeshiya sabhas ineligible to obtain financing from the LGIIP. The Ministry of Local Government and Provincial Councils (MLGPC) is going to finalize by September 2010 a set of indicators to define lagging local authorities, and the project would mainly support infrastructure development of the lagging local authorities satisfying the criteria.
The cessation of military confrontation in May 2009 brought to an end nearly three decades of internal armed conflict. A large number of development projects with significant financial resources will be or are being implemented in the North and East, including the North East Local Services Improvement Project (NELSIP) financed by the World Bank. There is a need to see the performance of local authorities under NELSIP to ensure they have the adequate absorption capacity to take up additional projects, while provision of vital social and economic infrastructure and services in these provinces remains a major challenge. Other provinces such as Sabaragamuwa and Uva recording high provincial poverty rates face a similar challenge of providing vital infrastructure and services to their citizens. Geographic focus of the project will be further discussed during project preparatory technical assistance (PPTA) implementation.
The project is in line with the second pillar'achieving socially inclusive development' and the urban sector road map of ADB's Sri Lanka country partnership strategy, by helping the government provide greater access to economic and social services for the poor and those living in conflict-affected areas.
|Description of Outcome||tbd|
|Progress Toward Outcome|
|Description of Project Outputs||tbd|
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Focus group discussions and workshops will be held during project preparation. Representatives of nongovernment organizations and community-based organizations will be invited to the workshops.|
|During Project Implementation|
|Consulting Services||Consultant will be recruited in line with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). The TA will require about 11 person-months of inputs from international experts and 55 person-months of inputs from national experts. Three individual consultants will be engaged to review the lessons from the ongoing Local Government Infrastructure Improvement Project and develop the project design. A team of consultants through a firm(s) will also be recruited, mainly to strengthen the capacity of the provincial councils and local authorities for project preparation and implementation, in particular with respect to preparation and implementation of financial and local improvement plans (FLIPs), using the quality- and cost-based method of selection with a standard quality-cost ratio of 80:20. A bio-data technical proposal will be used for the selection of a firm.|
|Responsible ADB Officer||Saito, Norio|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Urban Development and Water Division, SARD|
|Fact Finding||04 Aug 2010 to 10 Aug 2010|
|Approval||23 Nov 2010|
|Last Review Mission||-|
|PDS Creation Date||08 Sep 2010|
|Last PDS Update||02 Aug 2011|
|Approval||Signing Date||Effectivity Date||Closing|
|23 Nov 2010||17 Dec 2010||17 Dec 2010||31 Dec 2011||31 Aug 2012||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|0.00||700,000.00||125,000.00||0.00||0.00||0.00||825,000.00||23 Nov 2010||599,393.89|
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.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
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|Title||Document Type||Document Date|
|Lagging Local Authorities Infrastructure Development Project: Final Project Report||Consultants' Reports||Dec 2011|
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.
Evaluation Documents See also: Independent Evaluation
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