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Implementation Status & Results The World Bank Report No: ISR4892 Implementation Status & Results Sri Lanka North East Local Services Improvement Project (NELSIP) (P113036) Operation Name: North East Local Services Improvement Project (NELSIP) Project Stage: Implementation Seq.No: 3 Status: ARCHIVED Archive Date: (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 08-Jun-2011 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 Provinces of Sri Lanka 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 High Moderate Public Disclosure Copy Implementation Status Overview This ISR is based on the findings of the implementation review and support mission carried out from October 05-18, 2011. The ratings with respect to achievement of project Page 1 of 7 Public Disclosure Authorized The World Bank Report No: ISR4892 development objectives, overall implementation progress, project management, counterpart funding, financial management, procurement and social safeguards are satisfactory. The component on the Assessment and Evaluations is rated moderately satisfactory. The reason is due to the delay in the execution of the baseline survey. This delay is largely attributed to factors beyond the control of the PCU. The Department of Census and Statistics (DC&S) was supposed to provide assistance to start the baseline. However, DC&S has been heavily involved in a comprehensive census planning process and as a result, have been unable provide the required support to the PCU. DC&S has agreed to provide the required support on this issue as soon as they finalize the census enumeration in December 2011. All other contractual procedures have been finalized by PCU to commence the baseline survey. Despite the delays in the implementation of the baseline, all other project components are ongoing smoothly and hence the justification for satisfactory rating. Exactly one year in implementation since project effectiveness, there is significant progress toward achievement of the PDO. The project has been well received and recognized in both provinces as a mechanism for enhancing the capacity of the LAs to deliver their mandated basic services. In addition to the major achievements as listed below, some of the LAs have completed sub projects and are readily awaiting for the next capital grant. Component One: Infrastructure Service Delivery. The key achievements are: (i) The PCU has computed and communicated capital grant allocations to all/eligible LAs for 2010, 2011, 2012 and 2013. Hence, there is more predictability in the resource flows to LAs to allow for systematic planning and budgeting of capital investments.(ii) The 2010 capital grants have been released by the CLG to all LAs and this has boosted the amount of discretionary resources for infrastructure investments. (iii) A total of 253 sub-project proposals Public Disclosure Copy (of 121 from the North and 132 from the East) worth Rs. 2,412 million have been approved by the LA councils for rehabilitation/reconstruction of rural roads, drainages, drinking water schemes, markets, parks, libraries, and rural electrification. (iv) All LAs prepare annual budgets with clear demarcation of financing sources for the different sub-projects. (v) Building on Asia Foundation#s training activities; the project has provided focused support on participatory planning and budgeting as well as on enhancing own#source revenue mobilization. (vi) Communities are proactive in sub-project identification, selection, formulation and execution, and as a result, community contributions have been on the increase. (vii) The PCU in consultation with the Bank Team has agreed to release the 2011 capital grants to all eligible LAs by end of October 2011. Likewise, starting from January 2012 there will be alignment of the capital grant release in accordance with the Government's fiscal year (as planned in the project design). Component Two: Institutionalizing Accountabilities. The key achievements are: (i) All 77 LAs have prepared LAPDPs in 2010 and the two new LAs have prepared LAPDPs in 2011. (ii) The Auditor General (AG) of Sri Lanka is providing assurance on the annual accounts of the LAs on a regular and timely manner. (iii) All thirty four LAs in the North have received acceptable audit opinion for 2009. Of these, eighty percent have received acceptable audit opinion for 2010. Ninety three percent of LAs in the East (40 LAs) have received acceptable audit opinion for 2009 and only a few have done so in 2010. The PCU is following up on LAs with audit qualifications in the East.(iv)) Social Audit Committees (SACs) have been established at the community level for all 2010 sub-projects. Similarly, all LAs have commenced formulation of the SACs for 2011 sub-projects. (v) An Information Education and Communication (IEC) strategy on local government rules and regulations as well as on the project implementation manual has been prepared by the PCU to communicate to the citizens, elected members and local government staff. Since June 2011 the roll out of the strategy is ongoing at the national level by the PCU, at the provincial level by the CLG, at the district level by the ACLG, and at the divisional/village level by the LAs. (vi) Grievance Redressal Mechanism (GRM) (building on the GIZ model) has been revisited in all LAs. The GRM is ongoing in 46 LAs, and recently started in 31 LAs. Under the project interventions, 77 Public Relations Officers (PROs) have been appointed (effective August, 2011) and undergone training on basics in GRM. The PROs maintain compliant and request ledgers on a daily basis, with the corresponding tally sheets prepared monthly, quarterly and bi-annually. (vii) The Government has agreed to enhance the Fiscal Analysis Cell (FAC) to include planning, monitoring and evaluation of the sub-projects. (viii) The PCU has developed the criteria to access the eligibility of new LAs to participate in the project. Component Three: Building Capacities. The key achievements are: (i) Short-term on the job training activities for all stakeholders have been institutionalized within the Provincial Council system (i.e. through the Management Development and Training Units (MDTU) and Organizational Development Units (ODU)). (ii) The LAPDPs, as living documents, are undergoing revision and adjustments as per emerging needs of the community. (iii) The Project Appraisal Teams (PAT) at the district level are fully functional and they consist of government staff working in the district. (iv) During this mission a decision to establish Mini-labs (for quality assurance of civil works) at ACLG offices has been taken by the two Provincial Councils. Also, it has been agreed by the PCU to educate contractors on procurement related aspects commencing from November 2011. Component Four: Assessment and Evaluation. The key achievements are: PCU is developing a template to feed into an MIS to capture key performance indicators. Presently all LAs are gathering service delivery data (e.g. length of roads under construction, number of water supply systems established, e.t.c). LAs are also gathering data on the share of contributions by the LAs, communities and the project Public Disclosure Copy Component Five: Project Management. The key achievements are: (i) A Public Financial Management specialist at the PCU is onboard since July 2011. (ii) The LAs, ACLGs, CLGs and PCU do generate monthly and quarterly progress reports on the status of implementation of sub-projects The CLGs are able to undertake procurement of office equipment and civil works over Rs. 25 million following agreed procedures. (iii) The MED agreed to establish internal audit Page 2 of 7 The World Bank Report No: ISR4892 units at the provincial and district level by December 2011. These units will cover auditing of financial, procurement and civil works quality assurance aspects. (iv) Site specific technical supervision using OK cards record system has been established. (v) Preparation and approval of civil works estimates is carried out in accordance with accepted standards. Locations 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 Public Disclosure Copy Sri Lanka North Eastern Province Uhana Sri Lanka North Eastern
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