PROJECT INFORMATION DOCUMENT (PID)
APPRAISAL STAGE
Project Name
Region
Sector
Project ID
Borrower(s)
Implementing Agency
Environment Category
Date PID Prepared
Date of Appraisal
Authorization
Date of Board Approval
Report No.: AB6450
Second Additional Financing for the Community Livelihoods in
Conflict Affected Areas Project
SOUTH ASIA
General agriculture, fishing and forestry sector (40%);Other social
services (30%);Irrigation and drainage (20%);Agricultural
marketing and trade (10%)
P125855
GOVERNMENT OF SRI LANKA
Ministry of Finance
Secretariat
Sri Lanka
Tel: +94 11 2484510 Fax: +94 11 2449823
st@treasury.gov.lk
Ministry of Economic Development
Ministry of Economic Development
464, PB Jaya Mawatha
Colombo 10
Sri Lanka
Tel: 94- 11 2669096 Fax: 94- 11 2669091
nihalsomaweera@sltnet.lk
[ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined)
March 8, 2011
April 15, 2011
June 02, 2011
1.
Country and Sector Background: In November and December 2010, Sri Lanka was hit
by the heaviest rains in almost one hundred years, which caused devastating destructions and
landslides. According to the Disaster Management Center (DMC) of the Ministry of Disaster
Management, more than 1.1 million (284,000 families) were affected by the flood with 27 deaths
and 12 people reported missing. Around 363,000 people were displaced in some 630 temporary
relocation centers. In total, 12 out of 25 districts were affected by the flood mostly located in
Eastern, Northern and Central Provinces. All three districts of the Eastern Province - Batticaloa,
Ampara and Trincomalee - suffered the most representing 94% of total population affected by
flood.
2.
Although flood water started receding and the displaced people began to return to their
homes in January 2011, the new floods of late January / early February 2011 has exacerbated the
problems. Government estimates and the reports of UN agencies indicate enormous levels of
destruction. According to World Food Program, around 500,000 people have become foodinsecure needing immediate food assistance to avoid hunger and malnutrition. Widespread
destruction of houses, roads, agricultural land, livestock, livelihood assets, and other
infrastructure have been reported, which have dramatic impacts on the livelihoods of the
population especially those just recovering from long-period of military conflicts.
3.
The November 2010 to February 2011 floods are considered the worst flood disaster in
the last 30 years in Sri Lanka and were declared national calamity by the Government of Sri
Lanka (GOSL). Emergency rescue operations were immediately launched in December 2011 and
again in February 2011 with the help of the Sri Lankan Army, Navy, Air Force, Disaster
Management Centre and Non-Governmental Organizations. About 1.2 million people were
displaced at the peak times of the floods and the floods had a devastating impact on the
livelihoods of the displaced. As the water from various upstream districts entered the plain areas
Eastern Province, some of which had already had heavy rains, the major rivers began to expand
into its immediate flood plain and subsequently overflowed its banks and flooded the
surrounding areas leading to huge devastation. Massive damage occurred to rural infrastructure
in all three districts (Ampara, Batticaloa and Trincomalee) of the Eastern Province, three districts
(Vavuniya, Mannar and Kilinochchi) in the Northern Province, two districts (Anuradhapura and
Polonnaruwa) in the North Central Province, three districts (Kandy, Nuwara Eliya and ) in the
Central Province, and one district (Badulla) in the Uva Province.
4.
The floods have greatly increased the vulnerability of the population in the above
affected districts. The floods had a devastating effect on crops. The force of flowing water
uprooted, or caused lodging, in standing crops. Other plants destroyed due to the thick layer of
silt deposited or because they were covered by murky waters, and did not receive light or air, for
several days. The adverse weather conditions and severe floods have affected almost 200,000
hectares of paddy cultivation out of 700,000 estimated cultivated land area during the Maha
season and damaged over 800 small scale irrigation schemes affecting the basic infrastructure for
agriculture. The loss of paddy production is estimated at 900,000 MT and hence the expected
Maha harvest is likely to be about 1.7 million MT compared to initial estimation of 2.6 million
MT. Agricultural road networks in severely affected districts have been destroyed. Several
school buildings, drinking water facilities and nearly 17,000 houses have been fully or partially
damaged. An estimated 124,000 neat cattle, 33,400 buffalos, 46,500 goats and 319,500 poultry
have been washed away during the floods.
5.
The Bank has a long standing engagement in the flood affected area through various
investment operations and programs. Floods are becoming annual phenomenon in Sri Lanka and
this project is an important part of the Bank’s strategy to support GOSL’s response for the floodaffected areas of Sri Lanka. It is targeted at the flood victims who have returned to their villages
to rehabilitate their land, restore village infrastructure and re-establish their livelihoods. It is fully
consistent with the objectives of the CAS in its support for the generation of economic
opportunities in the country’s most lagging region. The project objectives are also fully aligned
with the government’s development strategy, the Mahinda Chintana, which aims at accelerating
growth, with particular emphasis on equitable development. The activities to be supported under
the Additional Financing have been designed to offer economic opportunities to the flood
affected people in a way that is adapted to the hard realities of the post-flood context
6.
The flood has destroyed assets, possessions and livelihoods of more than 1.2 million
people. According to preliminary official estimates of the MOF, the cost of the flood impact
stands at US$ 172 million for rehabilitation of the rural infrastructure such as small scale
irrigation, rural roads, drinking water supply, housing, electricity, health and schools as well as
cost of livelihood production damage in crops, livestock and fisheries.
7. The objective of the proposed Additional Financing is to help conflict and/or flood affected
communities and villages in North, East and the adjoining areas by restoring their livelihoods,
enhancing agricultural production and income, and building their capacity for sustainable social
and economic reintegration. It is consistent with the CAS objective to support the generation of
economic opportunities in the country’s most lagging regions. Its expected outcomes are (i)
recovery of agriculture through rehabilitation of irrigation schemes, (ii) enhanced connectivity of
affected communities by repairing rural roads, (iii) restoration of drinking water facilities by
repairing drinking water schemes, and (iv) restoration of livelihoods through short-term
employment and supporting farmers to be ready for their next cultivation.
8. The Additional Financing activities would focus on the twelve conflict-affected districts
where the Project is already working, while scaling up to four adjoining districts where flood
damages occurred. The project would build on the community institutions already established
through the RaP for supporting the recovery to pre-flood conditions. While the existing RaP
credits will help recovery in currently supported villages, this additional finance would provide
support to an additional 400 villages across these sixteen districts. The recovery of poor people’s
livelihoods and rehabilitation of social and economic infrastructure would be achieved through
two of the existing project components: (i) village rehabilitation and development, and (ii)
rehabilitation of major irrigation schemes.
9.
Rationale for Bank Involvement: The Government has requested the Bank's urgent
assistance to implement immediate rehabilitation programs particularly in the restoration of
agricultural roads and irrigation schemes in the flood affected areas. The estimated cost of these
interventions is around US$ 300 million and specific measures are being examined by the
Ministry of finance to address the issue while continuing with other development activities. This
is an extra burden to the GOSL and is a challenge in the background of its commitment to further
consolidate fiscal and economic achievements in recent years particularly in the context of
volatile global economic trends and rising oil prices.
10.
As an immediate response to GOSL’s request for rapid and speedy rehabilitation
initiatives, IDA is developing this Additional Financing emergency response package. This
Emergency Additional Financing is sought, as the undisbursed balance of the Original Project
and the first Additional Financing has already been committed to ensure satisfactory completion
of project activities within the Project implementation period.
11.
After considering various possibilities, the Bank’s scoping mission in January/February
2011 proposed a phased approach for immediate assistance which was discussed and agreed with
GOSL. This Additional Financing will respond to those immediate post-flood needs by restoring
agricultural roads, small scale irrigation schemes, drinking water facilities and marketing
facilities in the Project area affected by floods and also by extending such activities in the
adjoining flood affected districts. The design considerations behind this approach include (i) fast
delivery of reconstruction assistance which is particularly important as considerable time has
lapsed after the floods and (ii) focusing on initiatives for a quick impact, wherever applicable, in
order to comprehensively address targeted sectors such as agricultural productivity,
infrastructure gaps and flood management contributing to overall economic development of the
country.
12. The Additional Financing will allow a geographic expansion to assist flood-affected
communities through the rehabilitation of irrigation and rural infrastructure and the restoration of
their livelihoods. The project would build on the community institutions already established
through the RaP for supporting the recovery to pre-flood conditions. While the existing RaP
credits will help recovery in currently supported villages, this additional finance would provide
support to an additional 400 villages across the sixteen districts. The original Credit has four
components: (i) village rehabilitation and development; (ii) rehabilitation of major irrigation
schemes; (iii) cluster level livelihood activities; and (iv) project implementation support. The
recovery of flood affected people’s livelihoods and rehabilitation of social and economic
infrastructure would be achieved through first two of the existing project components. The
second component is expanded to cover rural infrastructure activities also.
14.
Village Rehabilitation and Development (US$ 13 million) - Under this component, the
project will work through community based institutions to restore livelihoods and enhance
incomes of village inhabitants by rehabilitating key village-based small economic infrastructures
(including minor irrigation and agricultural roads) and providing essential support to vulnerable
groups for the recovery of livelihoods. This would include the provision of greenhouse
interventions through the Government’s Divi Neguma flagship scheme and support economic
activities for people whose livelihoods (farm and non-farm) were affected by the floods.
Communities would be responsible to plan, design and implement small scale-infrastructure and
livelihood activities with support from Community Resource Persons.
15.
Rehabilitation of Irrigation Schemes and Rural Infrastructure (US$ 25 million) –
Under this component, to restore key economic and social infrastructure, the project would
rehabilitate the key irrigation and water supply schemes, roads, and other infrastructures
damaged by flood. Restoration of irrigation schemes would include repairs of breaches in
embankments and canals, removal of debris deposited in the canal prisms, control structures,
canal cross drainage structures and outlets. Restoration of water supply schemes will include
repair to water source, damaged pipelines and pumping equipment. The restoration of roads will
encompass the reconstruction/repair of damaged embankments, culverts, bridges and retaining
walls. The project would also support the recovery of productive infrastructure such as
agricultural and market facilities, milk collection centers etc and services that had been damaged
by the flood.
16. Financing
Source:
BORROWER/RECIPIENT
International Development Association (IDA)
Total
($m.)
0
38
38
17.
Implementation: Implementation arrangements under the Additional Financing will
continue to be the responsibility of the existing Executing Agency, the Ministry of Economic
Development (MED). The same Ministry is implementing many other similar programs in the
region and it ensures streamlined and effective coordination.
18.
Sustainability: In terms of sustainability of the damaged rural infrastructure rehabilitated
under the project, maintenance and continued use and upkeep of these assets would be the
responsibility of the community and their institutions whose capacity has been built on local
level planning, operation and maintenance.
19.
Lessons Learned from Past Operations in the Country/Sector: The context of post-flood
situation in which the Project would be working is a complex one. There had been multiple
waves of displacement in the flood affected area. All agencies are facing practical constraints in
coordinating the relief and rehabilitation activities. In this situation, several important lessons
learned in terms of delivering inclusive and effective rural development programs, in this region,
are worthwhile to mention: (i) involvement of whole community is essential to ensure
maintenance of ownership and commitment to development efforts; (ii) leadership by
experienced community members in the development of procedures and transfer of knowledge to
other communities is a highly effective and efficient method of scaling up; (iii) provision of
basic infrastructure would enable restitution of livelihoods; (iv) employ resettles in the
reconstruction of basic infrastructure to bridge income until agricultural production and other
livelihoods can be resumed; (v) provide avenues of access to credit to enable expansion of
livelihoods; (vi) a very hands-on top management approach and high staff commitment results in
close monitoring; and (vii) an information and communication strategy is useful to inform
beneficiaries and the general population on the Project’s support strategy, benefits, steps of
implementation, work plans and complaint redressal mechanism. Lessons learned during
implementation of the on-going original Credit and first Additional Financing Credit also inform
the design of this second Additional Financing Credit in terms of (i) demarcating the flood
affected villages located within a radius of 4 – 5 km into clusters and assigning an existing well
performing project village development organization (VDO) to lead the project implementation;
(ii) strengthening the above said VDOs into ICT centers for easy communication; (iii) appointing
more qualified civil engineers at district project offices to assist implementing agencies
whenever required to achieve targets; (iv) involving provincial and local authority field staff in
subproject appraisals; and (v) appointing an Additional Project Director to direct implementation
activities in the four new districts.
20.
Safeguard Policies (including public consultation): This Additional Financing will apply
the social and environmental safeguards policy, Environmental Assessment (OP/BP 4.01) and
Safety of Dams (OP/BP 4.37) as restructured during the first Additional Financing. OP 4.10 on
Indigenous People and BP 4.12 on Involuntary Resettlement are not triggered. But, the team will
assess them during implementation. The environmental classification remains “B”, but
collaboration with the Gama Neguma program will likely require some modifications to the
processes, which the team will address during appraisal. The Environmental Guidance Note will
be completed by May 31, 2011.
21.
Contact point
Contact: Seenithamby Manoharan
Title: Senior Rural Development Specialist
Tel: 5723+322 / 94-11-556-1322
Fax:
Email: smanoharan@worldbank.org
Location: Colombo, Sri Lanka (IBRD)
22.
For more information contact:
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