Sri Lanka : Greater Colombo Water and Wastewater Management Improvement Investment Program - Tranche 2

Project Name

Greater Colombo Water and Wastewater Management Improvement Investment Program - Tranche 2

Project Number

45148-007

Country / Economy

• Sri Lanka

Project Status

Active

Project Type / Modality of Assistance

• Loan

Source of Funding / Amount

Loan 3029-SRI: Greater Colombo Water and Wastewater Management Improvement Investment Program - Tranche 2

Source	Amount
Ordinary capital resources	US$ 70.00 million

Loan 3030-SRI: Greater Colombo Water and Wastewater Management Improvement Investment Program - Tranche 2

Source	Amount
Asian Development Fund	US$ 18.00 million

Loan 8282-SRI: Greater Colombo Water and Wastewater Management Improvement Investment Program - Tranche 2

Source	Amount
Agence Francaise de Developpement	US$ 70.00 million

Strategic Agendas

• Environmentally sustainable growth
• Inclusive economic growth

Drivers of Change

• Gender Equity and Mainstreaming
• Governance and capacity development
• Partnerships

Sector / Subsector

• Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban water supply

Gender

Effective gender mainstreaming

Description

On 25 October 2012, Asian Development Bank (ADB) approved a multitranche financing facility (MFF) of $300 million, envisaged to be funded from ADBs Ordinary Capital Resources (OCR) and Asian Development Fund (ADF), for the Greater Colombo Water and Wastewater Management Improvement Investment Program (the Investment Program). Tranche 1 ($84 million) under the Investment Program was approved by the President on 22 November 2012. The MFF is envisaged to comprise three additional tranches as follows: $88 million (Project 2 in 2013); $90 million (Project 3 in 2015); and $38 million (Project 4 in 2016). Tranches 1 and 2 focus on reducing non-revenue water (NRW) and improving water service efficiency in Greater Colombo. Tranches 3 and 4 will support improvement of wastewater collection and treatment facilities and management services in Greater Colombo. The Framework Financing Agreement (FFA) for the Investment Program was signed on 12 September 2012.

The Government submitted to ADB a periodic financing request (PFR) for Project 2, on 3 June 2013 (Appendix 1). The proposed Project 2 will continue investments in water supply, NRW reduction in the south part of Colombo city, and water supply service improvements for National Water Supply and Drainage Board (NWSDB). The proposed Project 2 will also support the Colombo Municipal Council (CMC) to complete the project preparation activities for the wastewater investments under Projects 3 and 4. The proposed Project 2 will include: (i) $80 million ADB loan from both OCR and ADF for investments in water supply improvements and NRW reduction; and (ii) $8 million ADB loan from ADF support for the CMC for advance action on wastewater investments. The ADB's Country Operations Business Plan, 2013-2015, for Sri Lanka includes a firm provision for Project 2 in 2013.

Project Rationale and Linkage to Country/Regional Strategy

The Government of Sri Lanka (Government) targets for 2015, according to the Water and Sanitation Sector Assessment Strategy and Roadmap are to increase the proportion of: (i) households with sustainable access to safe drinking water to 86%; and (ii) the population with access to improved sanitation to 93%. Significant progress has been made towards achieving these targets. During the period 1990-2004: (i) the population with access to improved water sources increased from 91% to 98%, and from 62% to 74% in urban and rural areas , respectively; and (ii) the population with access to sanitation countrywide, increased from 69% to 91% . However, the overall coverage of piped water supply is still very low at about 30%, and only 3% of the total population is connected to a piped wastewater system. About 95% of Colombo is covered by a piped water supply system. However, the system has low and fluctuating system pressure; some areas of the city receive water for an average of only 610 hours a day. Many parts of the distribution network were built more than 100 years ago. NRW remains around 49%. The Investment Program responds to the urgent need to rehabilitate and expand water supply and wastewater facilities in Greater Colombo and to improve the operational efficiency of service and management in water supply and wastewater sectors. The MFF will fund about 20% of the $1.5 billion financing needed by the Government for its investment plan for water and sanitation in Greater Colombo.

Impact

Improved water supply and wastewater service and management in Greater Colombo

Project Outcome

Description of Outcome

Improved system, efficiency and financial sustainability of water supply and wastewater services in Greater Colombo

Progress Toward Outcome

The two major contracts and minor contracts were awarded and overall progress is satisfactory. As of 13 December 2022, under L3029 out of loan amount of $67.00 million, Contract awarded for $64.08 million (96%) and disbursed $66.88 million (99.9%); and under L3030 out of loan amount of $16.03 million, contracts awarded $11.61 million (72%) and disbursed $10.75 million (67%).

Implementation Progress

Description of Project Outputs

1. Rehabilitated and expanded water supply system, and reduced NRW, in Greater Colombo

2. Completed designs and improved preparedness for wastewater investments

3. Strengthened institutional structure and capacity of service providers

4. Project 2 successfully managed and implemented

Status of Implementation Progress (Outputs, Activities, and Issues)

designs completed

NWSDB approved decentralized proposal. No action taken yet to decentralize.

System development is in progress with delays.

Both offices are established and functional.

Training program was conducted for ALC team

Awareness program are being conducted.

Consultants have prepared the tariff structure. This has been approved by CMC council and has submitted to Provincial Council for approval.

Training program for NWSDB staffs are completed.

WASH program are completed.

Contract package 3 (CW3) for Colombo west area system rehabilitation was awarded to China Geo China Habor JV and commenced work in March 2017. This contract is scheduled to be completed by February 2021. The total contract amount is equivalent to $54.31 million. Physical progress is 83% and financial progress is 54%. Pipe laying of 105km length out of planned 116km has been completed. Out of 29,000 service connection transfers targeted, 4,915 have been completed. Contract package 4 (CW4) for Colombo south area system rehabilitation was awarded to Sinohydro Corporation and work commenced in July 2017. This contract is scheduled to be completed by July 2021. The total contract amount is equivalent to $60.90 million. Physical progress is 59% and financial progress is 48%. Pipe laying of 150km length out of planned 186km has been completed. Out of 30,000 service connection transfers targeted, 4,562 have been completed. As per the PMU assessment, this contract will be completed in March 2023. PMU has proposed that the identified savings from Package-04 (ICB/04) be used to extend the Transmission line from Colomabage Mawatha to Jubilee reservoir by installing a 3.5 km pipe. ADB has granted no objection to do the activity as a variation to the existing Contract (ICB/04) up to the loan availability period.

Implementation is ongoing.

Implementation is ongoing.

being implemented

252.2km water supply lines have been completed.

42 DMAs established, 19 DMAs completed and work is in progress at 21 DMAs

15,549 water meters have been replaced. Target exceeded.

Geographical Location

Ambatale, Borella, Cinnamon Gardens, Colombo Division, Dematagoda, Fort, Gotatuwa, Grandpass, Havelock Town, Kirulapone, Kollupitiya, Kolonnawa, Kotahena, Maligakande Reservoir, Maligawatta, Maradana, Mattakkuliya, Modara, Narahenpita, Slave Island, Timbirigasyaya, Union Place, Vishaka Vidyalaya, Wellawatta, Yakbedda

Safeguard Categories

Environment

B

Involuntary Resettlement

B

Indigenous Peoples

C

Summary of Environmental and Social Aspects

Environmental Aspects

Project 2 is classified as category B for environment. IEE was prepared for investment under proposed Project 2 in accordance to ADB's Safeguard Policy Statement (SPS), 2009. The IEE shows that the net environmental benefits to the population is positive and large, as a result of improved water efficiency and security through the implementation of NRW reduction programs and expansion and rehabilitation of water supply infrastructure. The IEE outlines a grievance redress mechanism to ensure easy and quick redress of any complaints or concerns during project implementation. The EMP provides adequate mitigation measures for any foreseen temporary construction impacts, including traffic management to ensure limited disruption to traffic flow and access. Support from the consultants is ensured that the PMUs have adequate capacity to manage any environmental impact during detailed design and construction. The EMP contained within the IEE is form part of the bidding and contract documents. The EARF prepared under the Investment Program is used to guide the assessment, implementation and monitoring of environmental safeguards.

Involuntary Resettlement

Project 2 is classified as category B for involuntary resettlement in accordance with ADB's Safeguard Policy Statement (2009).

Indigenous Peoples

Project 2 is classified as category C for indigenous peoples in accordance with ADB's Safeguard Policy Statement (2009).

Stakeholder Communication, Participation, and Consultation

During Project Design

Consultations with stakeholders and communities in project areas were conducted during project design.

During Project Implementation

During Project Implementation Consultations with stakeholders and communities in project areas are an ongoing process

Business Opportunities

Consulting Services

Four consulting firms and a non-government organization (NGO) will be engaged, namely: (i) Management Advisory and Supervision Consultants (MASC) , (ii) Design, Supervision and Institutional Development Consultants (DSIDC) for Greater Colombo Wastewater Management, (iii) Manpower Development and Training Division Training System Modernization Consultants (TSMC), (iv) Awareness Generation and Media Consultants (AGMC), and (v) Community Mobilization and Behavioral Change NGO (the NGO). All consultants will be recruited according to ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). It is estimated that the total consulting inputs under Project 2 under the 5 contract packages as outlined above will be1,787 person months (100 international, and 1687 national).

Consulting servicesQCBS1,643 person-months$ 9.529

CQS 144 person-months$ 0.280

Procurement

All procurement of goods and works, including the AFD subprojects, will be undertaken in accordance with ADB's Procurement Guidelines (2013, as amended from time to time).

International competitive bidding5 contracts $ 86.124

National competitive bidding8 contracts $ 4.612

Shopping 12 contracts $ 0.437

Contact

Responsible ADB Officer

Dahanayake, Kamal P.S.

Responsible ADB Department

Sectors Group

Responsible ADB Division

Water and Urban Development Sector Office (SG-WUD)

Executing Agencies

Ministry of Water Supply (formerly Ministry of City Planning and Water Supply)

The Ministry of Public Administration, Home Affairs, Provincial Councils & Local Government

Timetable

Concept Clearance

-

Fact Finding

-

MRM

12 Jul 2013

Approval

26 Sep 2013

Last Review Mission

-

Last PDS Update

13 Dec 2022

Funding

Loan 3029-SRI

Loan 3030-SRI

Loan 8282-SRI