PROJECT DATA SHEET

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.

 

 

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

FINANCING

Type/Modality of Assistance Approval Number Source of FundingApproved Amount (US$

thousand)

Loan 2977 Asian Development Fund 40,000

PDS Creation Date –

PDS Updated as of 24 Sep 2014

Project Name Dry Zone Urban Water and Sanitation Project - Additional Financing

Country Sri Lanka

Project/Program Number 37381-023

Status Approved

Geographical Location –

Sector Water supply and other municipal infrastructure and services

Subsector Urban sanitationUrban sewerageUrban water supply

Strategic Agendas Environmentally sustainable growth (ESG)Inclusive economic growth (IEG)

Drivers of Change Gender equity and mainstreaming (GEM)Governance and capacity development (GCD)Partnerships (PAR)

Gender Equity and Mainstreaming Categories

Category 3: Some gender elements (SGE)

Type/Modality of Assistance Approval Number Source of FundingApproved Amount (US$

thousand)

– – Counterpart 10,000

TOTAL US$ 50,000

SAFEGUARD CATEGORIESFor more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories

SUMMARY OF ENVIRONMENTAL AND SOCIAL ISSUES

The project was reclassified from category B to A for environment because of the anticipated significant environmental impacts of the Vavuniya subproject. The reservoir inundation area has recently been designated part of a jungle corridor connecting two nature reserves. An environmental impact assessment was prepared for Vavuniya s reservoir subproject and disclosed for consultation on 13 July 2012. The assessment concludes that, although two plant species that are endangered and three animal species that are critically endangered have been observed in the project impact area, potential harm to them is minimal and can be mitigated by bringing an additional area with similar habitat under environmental conservation. Site-specific measures outlined in the assessment and biodiversity reports to ensure the integrity of jungle corridors and the preservation of biodiversity are in the EMP. Initial environmental examination reports with EMPs, including environmental monitoring plans, have been prepared for water supply and septage treatment subprojects in Chilaw, Puttalam, and Mannar, as well as water distribution in Vavuniya. All identified and envisaged environmental impacts can be managed with suitable mitigation measures described in the EMPs. Environmental protection measures in the EMPs will be incorporated into civil works contracts.32 The anticipated environmental impacts of the project are typical of civil works, such as dust, noise, and construction waste; temporarily disrupted traffic; and soil erosion. The project expects to use existing burrow and quarry sites. If any new burrow or quarry sites are needed, the project management unit will ensure that measures described in the EMPs are fully adopted from site selection to closure, and that required approvals are obtained from the authorities. Local communities and other stakeholders were consulted during project preparation, and consultations will continue throughout implementation as required. NWSDB and ADB will monitor contractors environmental compliance with support from the supervision consultant s team, which includes an environmental specialist. Any updates to EMPs, if required, will be made by the consultant environment specialist and reviewed and approved by NWSDB and ADB. Semiannual environmental reports will be submitted to ADB for disclosure on the ADB website in accordance with ADB s Safeguard Policy Statement and its Public Communications Policy (2011).

The original project was category B for involuntary resettlement. Following the end of the conflict, the project was upgraded to category A because of significant involuntary resettlement required for the Vavuniya reservoir subproject. Three other subprojects, in Chilaw, Mannar and Puttalam, have minor resettlement impacts.31 For the Vavuniya subproject, 66 hectares of rice land and 25 hectares of highland will be acquired. Land acquisition will economically displace 107 households. Adequate alternative rice land and highland distributed to affected people under the land-for-land compensation program, in addition to resettlement assistance provided through livelihood training programs. The project will not have any impact on indigenous peoples.

–

STAKEHOLDER COMMUNICATION, PARTICIPATION, AND CONSULTATION

Environment A

Involuntary Resettlement A

Indigenous Peoples C

Environmental Aspects

Involuntary Resettlement

Indigenous Peoples

During Project Design

–

–

DESCRIPTION

–

PROJECT RATIONALE AND LINKAGE TO COUNTRY/REGIONAL STRATEGY

Sri Lanka's northern dry zone receives little rainfall and residents of the region experience income and non income poverty. This area was also severely impacted by a 30 year conflict which prevailed in northern part of Sri Lanka and ended in 2009. Due to the conflict, public utility services in these areas are in need of urgent rehabilitation due to lack of investment and maintenance during the conflict period. Additionally, the Government of Sri Lanka (the government) has initiated major post conflict rehabilitation, resettlement and redevelopment efforts in northern Sri Lanka to improve living conditions of conflict affected people. Water schemes particularly in urban towns have been stretched beyond their design life and have substantial inefficiencies. Coverage is limited to a reduced number of beneficiaries and quality standards are often not met, adversely impacting the health of those served. Where piped drinking water is not available, water is extracted from other sources however water quality is often poor and seldom verified. An original loan L2477-SRI: for the Dry Zone Urban Water and Sanitation Project (the original project) was approved in November 2008 with a total cost of US$113.33 million including a loan of $59.78 million from ADB's Special Fund Resources (ADF), $23.22 million ADF grant financing and $2 million from the Water Financing Partnership Facility. The original project under this loan comprises three components: Component 1 covers the rehabilitation, expansion, and development of water and sanitation infrastructure for major towns in the northwestern dry zone (Chilaw, Mannar, Puttalam, and Vavuniya), including urban and peri urban water supply, and septage management and sanitation. Component 2 will (i) support decentralization of service delivery functions to regional offices; (ii) improve water resource management, coordination, and planning ability; and (iii) increase public awareness. Component 3 will strengthen institutional capacity of the Water Supply and Drainage Board the NWSDB or Executing Agency). Without additional financing, the original project scope cannot be completed due to cost overruns. Additional financing is being requested at this stage to ensure that all major civil works contracts can be awarded to complete the original project. Any delay in award of these contracts will result in significant delay of project completion.

DEVELOPMENT IMPACT

PROJECT OUTCOME

OUTPUTS AND IMPLEMENTATION PROGRESS

During Project Implementation

Improved welfare in the northern and northwestern dry zone

Description of Outcome Progress Towards Outcome

Improved urban water and sanitation service delivery in Sri Lanka s northern and northwestern dry zone towns

As of September 2014, at an elapsed loan period of 30%, the physical progress is 40% and the financial progress is 17.28%.

BUSINESS OPPORTUNITIES

TIMETABLE

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

1. Urban water supply and sanitation infrastructure in the northwestern dry zone developed 1.1 Water resources developed 2. Water institutions strengthened 2.1 Decentralization of service delivery functions to regional offices supported 3. Project management and implementation capacity built 1.2 Water supply expanded and rehabilitated 1.3 Sanitation and septage management improved 2.2 Water resource management, coordination, and planning ability strengthened 2.3 Public awareness raised

Contract Awarded Contract Awarded Contract awarded. Construction works is in progress for intake and new earth tank No response from bidders. To be readvertised. On Going On Going On Going On Going On Going On Going On Going On Going On Going On Going On Going On Going On Going Cabinet approval received for new treatment plant. Design work ongoing for rehabilitation of existing treatment plant Cabinet approval received for new treatment plant. Design work ongoing for rehabilitation of existing treatment plant WTP contract cabinet approval recieved Contract Awarded. Contract Awarded Contract Awarded Contract Awarded Contract Awarded On Going On Going On Going On Going

Date of First Listing 07 Dec 2012

Consulting Services The design and construction supervision consultancy contract includes 60 person-months of international consultancy and 588 person-months of national expertise. A 4-year contract was competitively awarded in August 2010. With the proposed project extension, an estimated additional 23 person-months of international consultancy and 411 person-months of national expertise will be required. Single-source selection through a contract variation will be used to extend design and construction supervision consultant input to project completion, subject to satisfactory performance. This is to ensure continuity. The contract variation is estimated at $1.25 million, including contingencies.

Procurement –

Procurement and Consulting Notices

http://www.adb.org/projects/37381-023/business-opportunities

Concept Clearance 21 Aug 2012

MILESTONES

Approval No. Approval Signing EffectivityClosing

Original Revised Actual

Loan 2977 18 Dec 2012 13 Feb 2013 08 Oct 2013 31 Dec 2016 – –

STATUS OF COVENANTSCovenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.

Approval No.

Category

Sector Social Financial Economic Others Safe Project Financial

Statements

Loan 2977 – – – – – – –

CONTACTS AND UPDATE DETAILS

LINKS

Fact-finding 21 Aug 2012 to 28 Aug 2012

Management Review Meeting 21 Sep 2012

Approval 18 Dec 2012

Last Review Mission –

Responsible ADB Officer Kamal Dahanayake (kdahanayake@adb.org)

Responsible ADB Department South Asia Department

Responsible ADB Division Sri Lanka Resident Mission

Executing Agencies –

Project Website http://www.adb.org/projects/37381-023/main

List of Project Documents http://www.adb.org/projects/37381-023/documents