The World Bank Report No: ISR7617

Implementation Status & Results North East Local Services Improvement Project (NELSIP) (P113036)

Operation Name: North East Local Services Improvement Project (NELSIP) Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Archive Date: 16-Dec-2012 (P113036)

Public Disclosure Authorized Country: Sri Lanka Approval FY: 2010 Product Line:IBRD/IDA Region: SOUTH ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Economic Development Key Dates Public Disclosure Copy Board Approval Date 13-May-2010 Original Closing Date 31-Dec-2015 Planned Mid Term Review Date 16-Dec-2012 Last Archived ISR Date 05-Jun-2012 Effectiveness Date 15-Dec-2010 Revised Closing Date 31-Dec-2015 Actual Mid Term Review Date

Project Development Objectives Project Development Objective (from Project Appraisal Document) The primary development objective of the project is to improve the delivery of local infrastructure services by local authorities in the Northern and Eastern in an accountable and responsive manner. Has the Project Development Objective been changed since Board Approval of the Project?

Public Disclosure Authorized Yes No

Component(s)

Component Name Component Cost Component 1: Infrastructure Service Delivery 76.00 Component 2: Institutionalizing Accountabilities 2.00 Component 3: Building Capacities 4.00 Component 4: Assessments and Evaluation 1.00 Component 5: Project Management 3.00

Overall Ratings Previous Rating Current Rating Public Disclosure Authorized Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate

Public Disclosure Copy Implementation Status Overview This ISR is based on the progress realized to date since the implementation review and support mission in June 2012. Twenty two months since project effectiveness, NELSIP

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continues to be on track to achieve its PDO. The concept of the project has been accepted by the Government through allocation of enhanced grants to Local Authorities in its 2013 Budget. The project continues to serve as a vehicle in engaging the citizens in the reconstruction and rehabilitation efforts of the LAs. Citizens continue to play vital roles in: (i) participation in the preparation of Local Authority Participatory Development Plans (LAPDP) with investment choices; (ii) monitoring the implementation of the LA investments; (iii) and contributing resources (in-kind/labor) to the establishment of these investments. In addition, LAs are provided with capacity enhancement in participatory planning and budgeting, financial management, procurement and local area economic development. More importantly, the project is crystalizing the role of LAs in the rebuilding efforts of Northern and Eastern Provinces. As a consequence, key stakeholders, including development partners are increasingly getting involved in NELSIP activities. Empowering LAs is continuously seen as a threat in implementing their individual agenda by few district level politicians, while His Excellency The President has reconfirmed the Government’s increased support to LAs in his budget speech on November 08, 2012.

Component One: The task team reviewed the overall implementation progress of the activities under component one and found it Satisfactory. It was noted that by October 2012, LKR 3,442 million of the total allocated fund of LKR 8140 million was spent by 79 LAs to implement 593 sub-projects cleared for 2010, 2011 and 2012, which were derived from the LAPDPs. 208 subprojects out of 593 have been completed and the balance is at various stages of completion. The team was informed that the balance subprojects would be completed by December 2012. It is worthwhile to note that the stakeholders especially the beneficiaries and the elected members are happy and proud of the quality of the works Public Disclosure Copy completed so far.

Component Two: It is noted that there is continued progress made in the implementation of activities under component 2 and thus rated Satisfactory. The task team is pleased to note that all 34 LAs in the Northern Province and all 45 LAs in the Eastern Province achieved eligibility to obtain the capital block grant for 2012 denoting the improvement in the performance of LA systems and processes. The Social Audit Committees (SAC) are continued to be accepted by the citizens such as school teachers, technical officers, masons, retired skilled persons, women, and youth. It is reported that all SACs are functioning in the Northern and Eastern Provinces. Grievance Redressal Mechanism (GRM) is functional in all LAs and a PRO is managing the GRM in each LA. The PROs have acquired adequate skills to analyze and respond to citizen complaints about LAs’ activities. Ledger books for receiving complaints and requests are in place in all LAs. Information Education and Communication (IEC) campaigns are disseminating information to the community on the NELSIP project in addition to effective local governance of the LAs. LAs continue to exhibit the relevant information at the site of each of the sub projects through notice boards.

Component Three: There is continuous progress made in the implementation of activities under component 3 and thus rated Satisfactory. The training plan for NELSIP is successfully conducted at the Provincial level and it is monitored at the national level. In line with the previous agreed action plan, the PCU has conducted 28 training programs in the Northern Province and 22 training programs in the Eastern Province. The training programs have focused on procurement, financial management, environment, applying participatory techniques, social auditing, GRM, preparation of LAPDP and project management. Overall, there is improvement in LAs’ performance as evidenced by the quality of reports, final accounts, and sub-project management.

Component Four: This component comprises of: (i) establishment of a comprehensive monitoring system, including a baseline assessment; (ii) assessments, which include social accountability assessment, capacity assessment, technical and social audits and preparation of citizen score cards, and (iii) any other just-in-time policy related assessments undertaken to inform project implementation and policy development at the national level. The monitoring system at the PCU and the provincial level is capturing key project data. Overall, project management continues to perform in accordance with the project design and thus rated Satisfactory.

Component Five: Overall, project management continues to perform in accordance with the project design and thus rated Satisfactory. The PCU continues to function as planned. There is further positive improvement in the performance of PCU with the change of PC. The offices of the CLG and ACLGs in the North and East are functioning with adequate staff under the leadership of CLGs as Provincial Project Directors. Support provided by the two Provincial Councils is commendable. Regular meetings are held to review project implementation progress at the central, provincial, district and LAs levels. The Project Appraisal Teams (PAT) established at the district level is functioning as envisaged. Notable areas of LA improvement in financial management and participatory planning will be looked at the next mission. The PCU and the PMUs have made tremendous achievements in monitoring and reporting of the project progress. On a regular basis, the LAs report to the ACLGs and CLGs and in turn the PCU is maintaining up to date implementation progress of the project. Automating a simple monitoring Management Information System (MIS) to capture real time expenditure and service delivery data is yet to be established.

Locations Public Disclosure Copy

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Country First Administrative Division Location Planned Actual Sri Lanka North Eastern Province Verukal

Sri Lanka North Eastern Province Velanai

Sri Lanka North Eastern Province Vavuniya

Sri Lanka North Eastern Province Valvedditturai

Sri Lanka North Eastern Province Uhana

Sri Lanka North Eastern Province Trincomalee District

Public Disclosure Copy Sri Lanka North Eastern Province Thirukkovil

Sri Lanka North Eastern Province Sammanturai

Sri Lanka North Eastern Province Puthukkudiyiruppu

Sri Lanka North Eastern Province Pottuvil

Sri Lanka North Eastern Province Pooneryn

Sri Lanka North Eastern Province Point Pedro

Sri Lanka North Eastern Province Periyakinniya

Sri Lanka North Eastern Province Padiyatalawa

Sri Lanka North Eastern Province North Eastern Province

Sri Lanka North Eastern Province Nintavur

Sri Lanka North Eastern Province Nanaddan

Sri Lanka North Eastern Province Namal Oya

Sri Lanka North Eastern Province Nallur

Sri Lanka North Eastern Province Musali

Sri Lanka North Central Province Morawewa

Sri Lanka North Eastern Province Mantai

Sri Lanka North Eastern Province Mannar

Public Disclosure Copy Sri Lanka North Eastern Province Manmunai

Sri Lanka North Eastern Province Maha Oya

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Country First Administrative Division Location Planned Actual Sri Lanka North Eastern Province Lahugala

Sri Lanka North Eastern Province Kuchchaveli

Sri Lanka North Eastern Province Koralai Forest Reserve

Sri Lanka North Eastern Province

Sri Lanka North Eastern Province

Sri Lanka North Eastern Province Karamunai Karachchi

Public Disclosure Copy Sri Lanka North Eastern Province Karaitivu

Sri Lanka North Eastern Province

Sri Lanka North Eastern Province Kantalai

Sri Lanka North Eastern Province Kalmunai

Sri Lanka North Eastern Province District

Sri Lanka North Eastern Province Jaffna

Sri Lanka North Eastern Province Gomarankadawala

Sri Lanka North Eastern Province Eravur Town

Sri Lanka North Eastern Province Delft Island

Sri Lanka North Eastern Province Damana

Sri Lanka North Eastern Province Cheddikulam

Sri Lanka North Eastern Province Chavakachcheri

Sri Lanka North Eastern Province Batticaloa District

Sri Lanka North Eastern Province Batticaloa

Sri Lanka North Eastern Province Ampara

Sri Lanka North Eastern Province Ampara District

Sri Lanka North Eastern Province Akkaraipattu

Public Disclosure Copy Sri Lanka North Eastern Province Kattankudy

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Results

Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Construction/rehabilitation of rural and other Kilometers Value 0.00 282.94 1000.00 village roads (kilometers) Date 31-Mar-2012 30-Jun-2015 Comments Accurate data not available Out of 1000 Kms of access roads, 865 Kms are expected to be tarred and 135 Kms to be concrete. An estimated 369,727 people are expected Public Disclosure Copy to benefit from construction/ rehabilitation of rural and other village roads. Construction of drainage systems Meter(m) Value 0.00 16150.00 245000.00 Date 13-May-2010 30-Mar-2012 30-Jun-2015 Comments Accurate data not available An estimated 216,719 people are expected to benefit from construction of drainage systems. Construction and rehabilitation of water points Number Value 0.00 6.00 439.00 Date 13-May-2010 30-Mar-2012 30-Jun-2015 Comments Accurate data not available An estimated 198,178 people are expected to benefit from construction and rehabilitation of water points. Percentage of capital grants released against Percentage Value 0.00 164.55 8140.00 allocation Date 13-May-2010 31-Mar-2012 30-Jun-2015 Comments

Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of LAs preparing annual financial Number Value 28.00 67.00 60.00 statements with 3 months after closing of Date 13-May-2010 18-Oct-2011 31-Dec-2015 financial year Comments Number of LAs whose revenues, expenditures, Number Value 0.00 20.00 40.00 and procurement decisions are publicly Date Public Disclosure Copy 13-May-2010 18-Oct-2011 31-Dec-2015 disclosed Comments

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Data on Financial Performance (as of 27-Nov-2012)

Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P113036 IDA-47280 Effective 13-May-2010 08-Nov-2010 15-Dec-2010 31-Dec-2015 31-Dec-2015

Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P113036 IDA-47280 Effective XDR 33.00 33.00 0.00 24.54 8.46 74.00

Disbursement Graph Public Disclosure Copy

Key Decisions Regarding Implementation Considering the continued progress and performance of the project as well as the ratings assigned for major project performance indicators, the PDO and IP ratings continue to be rated Satisfactory. Generally, all project components are ongoing smoothly and hence the rating for the implementation progress remains Satisfactory. The project is on track to achieve its PDO. The project continues to enhance the capacity of the LAs to deliver their mandated basic services. Progress reports from the PMU indicate retardation in approval and commencement of subprojects for 2012 in a few LAs and this matter has been discussed with the Ministry of Economic Development and the two Provincial Councils. A positive response and quick improvement in this matter is anticipated. Co-financing by AusAID is yet to be concluded and the team hopes that this will be completed very soon by the Government.

Restructuring History Public Disclosure Copy There has been no restructuring to date.

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Related Projects There are no related projects. Public Disclosure Copy Public Disclosure Copy

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