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World Bank Document Document of The World Bank Public Disclosure Authorized FOR OFFICIAL USE ONLY Report No: 39708-LK PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED CREDIT IN THE AMOUNT OF SDR 41.1 MILLION (US$65.33 MILLION EQUIVALENT) TO THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FOR A DAM SAFETY AND WATER RESOURCES PLANNING PROJECT Public Disclosure Authorized February 26,2008 Sustainable Development Department Agnculture and Rural Development Unit Sri Lanka Country Management Unit Public Disclosure Authorized South Asia Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective - January 2008) Currency Unit = Sri Lankan Rupees 108.0 = US$1 FISCAL YEAR January 1 - December 3 1 ABBREVIATIONS AND ACRONYMS AEP Annual Exceedence Probability FMR Financial Monitoring Report BOQ Bill ofQuantities FO Farmers’ Organization CAS Country Assistance Strategy FY Financial Year CEB Ceylon Electricity Board GOSL Government of Sri Lanka CECB Central Engineering GPN General Procurement Notice Consultancy Bureau CFAA Country Financial HMIS Hydro-meteorological Information Accountability Assessment System CQS Selection based on Consultant’s IAS Implementing Agencies Qualification DC Direct Contracting IBRD International Bank for Reconstruction and Development DD Deputy Director ICB International Competitive Bidding DG/DGs Director GeneraVDirectors - ICOLD International Commission on Large General Dams DL Disbursement Letter ICR Implementation Completion Report DMC Director Disaster Management ID Irrigation Department Center DOM Department of Meteorology IDA International Development Association DSMC Dam safety Management Center IEC Information, Education and Communication DSRP Dam Safety Review Panel IESL Institution ofEngineers of Sri Lanka DSS Decision Support System IFC International Finance Corporation EA Environmental Assessment ISC Implementation Support Consultant EAP Emergency Action Plan ISDS Integrated Safeguard Data Sheet EAMF Environmental Assessment and IT Information Technology Management Framework ED Executive Director JICA Japan International Cooperation Agency EIA Environmental Impact Kwh Kilowatt Hour Assessment EMP Environmental Management LCS Least Cost Selection Plan EO1 Expression of Interest LSA Livelihood Support Assistance ERD External Resource Department MADAS Ministry ofAgriculture Development & Agrarian Services ERR Economic Rate ofReturn MASL Mahaweli Authority of Sri Lanka FA Financing Agreement M&E Monitoring and Evaluation FBS Fixed Budget Selection MIWM Ministry of Irrigation & Water Management FM Financial Management MOFP Ministry of Finance and Planning FMECA Failure Mode Effect and MOU Memorandum ofUnderstanding Criticality Analysis M&E Monitoring and Evaluation PRA Portfolio Risk Assessment MIS Management Information PSC Project Steering Committee .. 11 FOR OFFICIAL USE ONLY MW Mega Watt QBS Quality Based Selection NBD National Budget Department QCBS Quality and Cost Based Selection NCB National Competitive Bidding RBPM River Basin Planning & Management NGO Non-Governmental RBPS Risk Based Profile System Organization NPD National Planning Department RDI Regional Director of Irrigation NPOC National Project Oversight RPM Resident Project Manager Committee NPV Net Present Value Rs Rupees NWSDB National Water Supply and SBD Standard Bidding Document Drainage Board NWUP National Water Use Plan SDR Special Drawing Right O&M Operation and Maintenance SEA Strategic Environmental Assessment OP/BP Operational PolicyBank Policy SIUC Specific Investment Loadcredit PAD Project Appraisal Document SLK Rs Sri Lanka Rupees PD Project Director SLNCOLD Sri Lanka National Committee of Large Darns PDO Project Development Objective SPN Special Procurement Notice PHRD Policy and Human Resources SSS Single Source Selection Development PIP Project Implementation Plan tma Tons per Hectare PM Project Manager TA Technical Assistance PMC Project Management Committee TEC Technical Evaluation Committee PMU Project Management Unit TOR Terms of Reference PPF Project Preparation Facility nL Task Team Leader PRA Portfolio Risk Assessment TWG Technical Working Group PSC Project Steering Commitlee US$ United States Dollar PY Project Year WRB Water Resources Board Vice President: Prafbl C. Pate1 Country Director: Naoko Ishii Sector Director: Constance A. Bernard Sector Manager Adolfo Brizzi Task Team Leader: Nihal Fernando This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. SRI LANKA DAM SAFETY AND WATER RESOURCES PLANNING PROJECT TABLE OF CONTENTS Page STRATEGIC CONTEXT AND RATIONALE: Country and sector issues ............................................................................................................. 1 Rationale for Bank involvement ...................................................................................................3 Higher level objectives to which the project contributes ...........................................................4 PROJECT DESCRIPTION: Lending instrument .......................................................................................................................4 Project development objective and key indicators .....................................................................4 Project components ...................................................................................................................... 4 Lessons learned and reflected in the project design ................................................................... 6 Alternatives considered and reasons for rejection ...................................................................... 6 IMPLEMENTATION: Partnership arrangements ........................................................................................................... 7 Institutional and implementation arrangements .................................................................... 7 Monitoring and etaluation of outcomes/results .......................................................................... 9 Sustainability ............................................................................................................................... 9 Critical risks and possible controversial aspects ...................................................................... 10 Loadcredit conditions and covenants ...................................................................................... 12 APPRAISAL SUMMARY: Economic and financial analyses ............................................................................................. 13 . Technical.................................................................................................................................... 13 Fiduciary ....................................................................................................................................... 14 Social .........................................................................................................................................15 Environment ............................................................................................................................... 15 Safeguard policies ..................................................................................................................... 16 Policy Exceptions and Readiness .............................................................................................. 18 FOR OFFICIAL USE ONLY Annex 1: Country and Sector or Program Background................................................ 19 Annex 2: Major Related Projects Financed by the Bank and Lessons Learnt..................... 24 Annex 3: Results Framework and Monitoring............................................................ 26 Annex 4: Detailed Project Description and ImplementationSchedule ............................... 34 Annex 5: Project Costs and Financing Plan................................................................ 59 Annex 6: Implementation and Coordinating Arrangements ................................................. 61 Attachment to Annex 6: Corruption Risk Mapping and Mitigation Action Plan.................. 67 Annex 7: Financial Management and Disbursement Arrangements.................................. 74 Annex 8: Procurement Arrangements....................................................................... 84 Annex 9: Economic and Financial Analysis ................................................................ 91 Annex 10: Safeguard Policy Issues ............................................................................ 98 Annex 11: Project Preparation and Supervision ........................................................... 105 Annex 12: Documents in the Project File.................................................................... 107 Annex 13: Statement of Loans and Credits.................................................................. 108 Annex 14: Country at a Glance ................................................................................ 109 MAP(s) IBRD Map No. 35864 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization . V SRI LANKA
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