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.

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

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.

Sector

Water supply and other municipal infrastructure and services

Subsector

Urban sanitation
Urban sewerage
Urban 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)

FINANCING
Type/Modality of Assistance
Loan

Approval Number
2977

Source of Funding
Asian Development Fund

Approved Amount (US$

thousand)
40,000

Type/Modality of Assistance

Approval Number

Source of Funding

Approved Amount (US$

thousand)

Counterpart

TOTAL

10,000
US$ 50,000

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

Environment

Involuntary Resettlement

Indigenous Peoples

SUMMARY OF ENVIRONMENTAL AND SOCIAL ISSUES

Environmental Aspects
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).
Involuntary Resettlement
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-forland compensation program, in addition to resettlement assistance provided through livelihood training programs. The
project will not have any impact on indigenous peoples.
Indigenous Peoples

STAKEHOLDER COMMUNICATION, PARTICIPATION, AND CONSULTATION

During Project Design

During Project Implementation

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
Improved welfare in the northern and northwestern dry zone

PROJECT OUTCOME
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%.

OUTPUTS AND IMPLEMENTATION PROGRESS

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

BUSINESS OPPORTUNITIES
Date of First Listing

07 Dec 2012

Consulting Services

The design and construction supervision consultancy contract includes 60 personmonths of international consultancy and 588 person-months of national expertise. A 4year 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

TIMETABLE
Concept Clearance

21 Aug 2012

Fact-finding

21 Aug 2012 to 28 Aug 2012

Management Review Meeting

21 Sep 2012

Approval

18 Dec 2012

Last Review Mission

MILESTONES
Closing
Approval No.

Approval

Loan 2977

Signing

18 Dec 2012

Effectivity

13 Feb 2013

08 Oct 2013

Original

Revised

Actual

31 Dec 2016

STATUS OF COVENANTS
Covenants are categorized under the following categoriesaudited accounts, safeguards, social, sector, financial, economic, and others.
Covenant compliance is rated by category by applying the following criteria: (i) Satisfactoryall covenants in the category are being complied
with, with a maximum of one exception allowed, (ii) Partly Satisfactorya maximum of two covenants in the category are not being complied
with, (iii) Unsatisfactorythree 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.
Category
Approval
No.

Loan 2977

Sector

Social

Financial

Economic

Others

CONTACTS AND UPDATE DETAILS

Responsible ADB Officer

Kamal Dahanayake (kdahanayake@adb.org)

Responsible ADB Department

South Asia Department

Responsible ADB Division

Sri Lanka Resident Mission

Executing Agencies

LINKS
Project Website

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

List of Project Documents

http://www.adb.org/projects/37381-023/documents

Safe

Project
Financial
Statements