BRIEF ON

PROVINCE.
NORTH EAST PROVINCE.
Reconstruction and Development Efforts
2002 -2006

1. NEP
2. Mandate
3. Impact of War and Tsunami
4. R R and D Initiatives
5. Issues
 POPULATION BY DISTRICT IN NEP
1981 & 2001- 2005
In 000

Year Ampara Batticaloa Trincomalee Jaffna Kilinochchi Mannar Mullaitivu Vavuniya Total

1981 389 330 256 739 92 106 77 95 2084

2001 589 486 340 491 127 152 122 150 2457

2002 596 522 358 532 154 98 164 146 2570

2003 605 536 377 589 140 97 141 139 2624

2004 613 544 383 596 143 97 144 142 2662

2005 618 549 388 603 145 99 141 145 2688

Source: Central Bank Report 2005

 Administrative Units - 2005

o.of.D.S.
District
o.of.G

Division
o.Of PS
o.of UC
o.of.MC
Division

Ampara 509 20 16 1 1

Batticaloa 348 14 10 1 1

Trincomalee 230 11 11 2

Mullaitivu 127 5 4

Vavuniya 102 4 4 1

Mannar 153 5 4 1

Kilinochchi 95 4 3

Jaffna 434 15 13 3 1

Total 1998 78 65 9 3

Source : Commissioner of LG - EP & Respective District Secretariat


EP Contribution to
ational GDP

2002 2003 2004

Sectors National NEP National NEP National NEP

Agriculture 20.6 2.5 19.0 3.0 17.8 2.6

Industries 26.3 1.2 26.4 2.0 26.8 1.7

Services 53.2 3.7 54.6 3.8 55.4 3.9

Socio - Economic Selected Indicators
2003 2004

Indicators National NEP National NEP

Growth Rate 6.0 5.5 5.4 5.0

Per Capita Income US $ 948 356 1,031 356

Gini Cofficient (Income Receivers) 0.50 0.53 0.50 0.53

Banking Density ** 14.9 6.1 14.9 6.1

Literacy Rate % 90.1 89.7 90.1 89.7

Male 92.5 91.8 92.5 91.8
87.9 87.7 87.9 87.7
Female
Educational Attainment (%)
No Schooling 7.9 10.7 7.9 10.7
Primary 29.9 35 29.9 35
Secondary 41.0 31.5 41.0 31.5
Tertiary 21.2 22.8 21.2 22.8

** No. of Bank Branches per 100,000

persons
 Development Issues in
EP

Poverty and Malnutrition

Unemployment - Low Growth rate

Vulnerability – Children, Widows, Women,
Elders and Disableds

Housing

Finance – Individual / Institutional inability

Marketing

Production Infrastructure

Technology

Inputs
1. Mandate
 Mandate
• 13th Amendment to the Constitution Provincial
Council Act No.42 of 1987.
• Directions issued by the Govt. from time to
time.
• All the Acts of Parliament presently in force.
• Provincial Councils Act No.12 of 1989
(Consequential Provisions).
 Working with th
13 Amendment
• NEPC functions are limited to subjects in the first list of the
ninth schedule.
• NEPC passed 6 statutes during it ’s life time, mainly pertaining
to salaries of staff, Chief Ministers Fund, Emergency Fund
etc.
• Since there are no statutes for revenue, NEPC depends 100%
on grants from the Government. No taxes.
• Even though NEPC can legislate on 37 subjects, practicably
not workable.
• Parliament can make laws under all three lists.
• All powers of council and Ministers rest with Hon. Governor at
present.
2. War and
Tsunami
Impacts
 History of Displacement
• This is a development after independence.
1956 Communal violence
1958 Communal violence Around 20,000

1977 Communal violence 40,000

1983 Communal violence Over 1.7 Million with

extrados (to India alone
180,000)
1985 - 2002 Multiple displacement 150,000 fleeing to India

2006 Multiple displacement Around 200,000

• Return, resettlement, repatriation, displacement were recurring feature.

 Cost of War
• Total Crop Low Production
Damage to Production decline
– 350,000 tons. Poverty Headcount GDP
Economic Contribution
• 30% declined in Highest
Infrastructure Livestock
Income Inequality Per Capita
• Infrastructure Production Lowest Income
• Agriculture • 40% declined in
Fish Production. Infant Mortality
• Livelihood/ Highest Life
• Unemployment Expectancy
• Skill, Micro Rate 25% Maternal Mortality
finance Highest
Child Malnutrition
• 55 Health Highest
institutions
damaged and 49 not
Damage to functioning. Primary
Social • 41% Health Posts Enrolment Educational
Infrastructure are vacant. Secondary Lowest Attainment
15000 Class rooms Tertiary Cost of
• Health damaged.
• Education • Housing 327,700
Low level living
War
units damaged
• Housing standard

Loss of Lives
IDPP in Welfare
• 1.7 Mn People
Displacement/Mu Centers Social &
affected.
ltiple Cultural
IDPP in
displacement • No of Dead – Disorder
Relative/Friends
1.Internal 65,000
Hoses
2.External • War widows – Settled in Foreign
30,000 Countries -
• Refugees –
500,000
Summary of IDPs in Sri Lanka
Pre 2006
Name of Province No. of IDPs
Northern 427,784
Eastern 246,932
North Central 15,880
North Western 56,167
Southern 159,316
Uva 58
Sabaragamuwa 114
Central 410
Western 65,872
Total 972,533
 Tsunami Displacement
District No of Affected No of Displaced No of Displaced
Families Families Persons
Jaffna 133,652 12,631 39,907

Killinochchi 2,295 318 1,603

Mullaithevu - 6,007 22,557

Trincomalee - 27,746 81,643

Batticaloa 63,717 12,494 61,912

Ampara 38,624 17,046 75,172

Source : Based on Report of DCS (01/25/05)

Internal Displacement – 2006
January - July
No District No of Displaced
01 Jaffna 47,070
02 Kilinochchi 35,357

03 Mullaitivu 10,080

04 Mannar 8,460

05 Vavuniya 9,560

06 Trincomalee 48,810

07 Batticaloa 37,738

08 Ampara 1,353

Total 198,428

Source : UNHCR – 22nd August 2006

 Tsunami Impact
• 3rd Wave
- 1st Wave - Development Deprivation
- 2nd Wave- War Impacts
- 3rd Wave – Tsunami
Impact is vertical
3. R R & D
Initiatives
 Rehabilitation , Reconstruction &
Development initiatives.

• Initiatives started during the height of

the war.
• MoU raised aspirations.
• Multilaterals are the leading donors.
 Focus of
EPC Investments
• Reactivating / improving the provision of service facilities
(Hospitals, Class rooms, etc.)
• Supporting livelihood activities of IDPs and their basic
needs. ( Micro credit, training [skills], etc.)
• Rehabilitation of rural infrastructure facilities (Roads,
drinking water, irrigation, etc.)
• Strengthening implementation capacities of implementing
/executing agencies and partner institutions (buildings,
mobility, training, etc.)
 Implementation Process
NSC National Staring Committee Policy Coordination

PCC Approval of Projects Provincial Level

DCC Conceptualization / Prioritisation District Level

CBO Need Assessment- Grass Root Level

Project Agency

Implementation
 Basic Concept adopted for RR&D
• Sustainable Livelihood.
• Capacity Development at all level
• Principle of Subsidiarity
• People Participation
• Owner Driven Strategy
• Role of CBO/NGO
• Transfer of Responsibility.
• Operational Procedures.
• Outsourcing / Private sector
• Resource Management
• Risk free Environment
• Gender Equity
 Investments by
Donor Funded Projects in NEP 1999 – 2006
Rs. In Mn
Name of Source of 1999 2000 2001 2002 2003 2004 2005 2006
Project Funding up to
now
NEAIP I World Bank - 3.5 157.4 740.0 904.0 789.0 368.0

NEAIP II World Bank - - - - - - 284.0

DERBA NORAD 56.2 39.9 2.8 18.8 139.1 - - -
NECORD ADB/Sweden/Ger - - 18.9 171.5 852.6 1156.5 928.3 224.6
many/
NECORD - ADB 34.195 115.0
Extension
NECORD - II ADB, Sweden 45.74 322.0
NEERP World Bank 1305.0 1377.0 1148.0
CAARP ADB 125.5 934.0 192.2
NECCDEP ADB/Netherlands 20.84 127.27 58.59
NEHRP World Bank/EC 116 1253 639
MANRECAP JICA 29.0 72.6 46.18
STARRT JBIC 151.5 230.1
FSCT GTZ 55.7 76.1 31.9
Food Aid European 150.0 350.0
Counterparts Commission
funds
Total 56.2 43.4 179.1 930.3 3200.7 3819.54 5772.70 1859.57
 NEIAP- I - Target & Achievement

40
30 PAD Target
US $ Mn

20
10
Annual
0
Expenditure
2000 2001 2002 2003 2004 2005
Year
 North East Housing Reconstruction Programme (NEHRP)
2004 - 2008

Phase I
Damaged Pilot Phase 2 Phase 3 Phase 4
Districts Completed Total %
Houses Project 2004 2006 2007 2008
2005

Jaffna 105,064 125 1,202 3,000 4,000 2,500 10,827 31.1%

Killinochchi 27,363 100 501 1,500 650 280 3,031 8.7%
Mullaithivu 22,871 100 513 400 700 600 2,313 6.6%
Vavuniya 7,640 120 295 400 300 380 1,495 4.3%
Mannar 20,082 100 300 400 620 650 2,070 6.0%
Trincomalee 38,310 115 666 1,750 1,000 442 3,973 11.4%
Batticaloa
57,943 100 501 2,750 2,800 1,500 7,651 22.0%
Ampara
11,342 100 309 1,000 900 500 2,809 8.1%
Puttalam / HSZ 615 615 1.8%

Total 290,615 860 4,902 11,200 10,970 6,852 34,784 100.0%

IDA 860 4,902 10,357 9,565 5,586 31,270 89.9%

EC 843 1,405 1,266 3,514 10.1%

 NEHRP- Funds Utilizations – 2006
As on 31.08.2006
2000

1860.3
1800

1600 1595.45

1400

1200
1140.3 1,116
1000

800
738
639
600 580.15
491 511
476
400

Provision available
200
Expenditure
46 58
0 ST
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 NECORD-Target & Achievement

4500
4000 Commitment
3500 Target
3000
R s:M n

2500 Commitment
2000 Achievement
1500
Disbursement
1000
Target
500
0 Disbursement
2001 2002 2003 2004 2005 2006 2007
Year
 NEERP- Target & Achievement

4500

4000

3500

3000
Target (Budget)

2500
Target (Cumulative)
Achievement (Cumulative)
2000

1500

1000

500

0
2003 2004 2005
Years
5. Issues
 Key Implementation Issues

Lack of qualified technical personnel

Social reluctance & Conflict Environment

Material Supply- Sand, Rubble, Metal, Iron,
Timber

Inadequate Capable Contractors –
Financially, Technically, Professionally

Cost of Material

Inadequate higher level manpower in
departments

Security Procedures ContiH.
 Key Implementation Issues

Delay in procurement. (technical
evaluations and tender decisions)

Capacity of the Executing and
Implementing agencies.

Land and re-settlement related issues
Pre-transition stage

• North East is a conflict emerging society

• War started in a virtual closed economy in
20th Century and ended in open market in
21st Century.
• Transition needs stable environment.
• NEP is in pre-transition stage.
Double-gap situation
• During the War time NEP suffered a
negative GDP.
• Living standards to be brought to the
present national levels (First gap)
• By that time national levels would have
gone up further.
• Accelerating strategies will be needed to
reach the new national goals (Second
gap) – probably by 2015
 Basic Rehabilitation Needs
(US$ Mn) - 2004
Sector Immediate Medium Beyond Grand
Medium Total
1.Resettlement 105.9 89.6 6.1 201.6
2.Health 7.09 132.4 125.3 328.6
3.Education 54.4 83.4 44.4 183.1
4.Housing 132.4 173.2 304.4 610.0
5.Infrastructure 233.3 608.7 646.4 1488.5
6.Agriculture 67.5 63.1 11.1 141.7
7.Livelihood,employment,Ski 30.3 53.5 12.9 96.7
ll & Micro Finance
8.Capacity development and 14.4 18.0 3.2 35.6
Institution strengthening
Total Needs 709.2 1222.9 1153.8 3085.8
 Post Tsunami Needs
(US$ Mn) - 2005
Sector Total in Mn US$

1.Road 132.3
2.Railway 53.1
3.Health 56.2
4.Education 30.2
5.Housing 317.6
6.Power 27.6
7.Water & Sanitation 87.6
8.Fisheries 62.6
9.Tourism 7.2
Total Needs 774.4
 Requirement of Funds for Basic RR
Pre 2006 Situations
• Funds Requirement - 3,086 US$ Mn
Rehabilitation & Reconstruction
• Funds mobilized (1998-2006) - 700 US$ Mn
• Average Mobilisation(1998-2006)- 100 US$ Mn
per year
• No of Years needed to
mobilise the balance - 2300 US$ Mn
• Required Years to Implement at current rate of
mobilisation - 23 years !
(Excluding National Roads, Railway, Telecom and Ports)
Thank You