Summary Poverty Reduction and Social Strategy for the Northern

SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY (Sri Lanka: Northern Road Connectivity Project)

Country and Project Title: Sri Lanka: Northern Road Connectivity Project

Lending/Financing Department/ South Asia Department/ Project Loan Modality: Division: Transport and Communications Division

I. POVERTY ANALYSIS AND STRATEGY A. Link to the National Poverty Reduction Strategy and Country Partnership Strategy The country was on a track to achieve the Millennium Development Goal by reducing the percentage of total population living in poverty to 15% in 2008. However, the incidence of poverty in conflict-affected regions in the northern and eastern areas is estimated at around 37% compared with the national average of 15%. About 300,000 people were internally displaced during 2008–2009. With the end of conflict in May 2009, the Government of Sri Lanka has given high priority to the resettlement of internally displaced people, and reconstruction and development of infrastructure in these two regions. The government prepared a development framework under Mahinda Chintanaya, a Vision for Sri Lanka in 2006, and a special development program, Wadakkin Wasantham or Northern Spring, from 2009 to 2012 to focus on infrastructure development, resettlement of internally displaced people, and livelihood restoration. The implementation of projects under these special development programs will strengthen the investment climate and achieve socially inclusive and regionally balanced economic growth. The development strategy of the government is aligned with ADB's country partnership strategy1, which has a major objective of developing infrastructure in the northern and eastern provinces. One of the obstacles for reducing poverty is poor infrastructure, especially the present road network that does not provide adequate transport facilities and connectivity between the conflict-affected regions and the rest of the country..

The project will improve connectivity in the road transport networks of two conflict-affected provinces: Northern Province and North Central Province (NCP). The rehabilitation of about 62 kilometers (km) of national roads in Anuradhapura district of NCP, 108 km of national roads in Jaffna and Mullaitivu districts, and about 140 km of provincial roads in Mannar and Vavunia districts within Northern Province will improve transport facilities and contribute to expanding local and export markets. Road network improvements will also support increased agricultural production and productivity by improving the supply of seeds, fertilizer, and technical services. The improved road network will reduce local travel costs and travel times, and facilitate regular and timely attendance at schools, health centers, and other social services. The rehabilitation of national and provincial roads will stimulate the attraction of investors for establishing new economic enterprises.

B. Poverty Analysis Targeting Classification: General intervention Key Issues. Sri Lanka ranks 104th of 179 countries according to the United Nations' human development index. The national poverty incidence in Sri Lanka has been reduced to 15%. Poverty reduction has been slow during the past decade in the rural and estate sectors. Poverty in rural areas is consistently higher compared with urban areas. The project will have positive impacts on economic and social development activities for the people as a result of improved transport networks and improved access to markets and other services.

The total population living adjacent to the roads identified for rehabilitation can be considered direct beneficiaries. The study team estimates that the project influence area has a total population of about 339,614 that will benefit from the project (about 74,331 people in Mannar district; 95,608 people in Vavunia district; 15,500 settled people and about 112,000 people to be resettled in Mullaitivu district; about 110,000 people in Jaffna district; and about 44,168 people in Anuradhapura district). The majority of the total beneficiary population is rural. Their main economic activities, which will be improved, include agriculture, fishing, livestock, and trade.

The causes of rural poverty are complex and reducing poverty is a challenge. The majority of the rural poor, identified by the field surveys, are subsistence farmers, agricultural laborers, poor fisherfolk, and small traders. Improved access to markets to obtain higher prices for products will increase incomes. Improved transport facilities are expected to promote market expansion, educational attainment, and the availability of basic infrastructure.

The poverty head count index statistics in the project influenced areas of candidate roads are not readily available. However, based on social assessment studies, about 42% of the total number of families in Mannar district, 36% of total families in Vavunia district (Northern Province), 23% of total families in Anuradhapura district (NCP), and 34% of total families in Jaffna district (Northern Province) live below the poverty line. These people are samurdhi recipients under the poverty reduction program. Other indicators of poverty are the small extent of lands owned and cultivated

1 ADB. 2008. Country Partnership Strategy: Sri Lanka, 2009–2011. Manila. 2 and the ability to cultivate one or two seasons. The road users of candidate roads believe that better transport facilities will enable them to get higher prices for their agricultural produce and fish production. The road rehabilitation of A34 (49 km) from Oddusudan to Mullaitivu town will largely benefit about 112,000 internally displaced people, now in welfare camps in Vavunia district. Generally, beneficiary groups are concerned with issues relating to poor road construction, possible damage to irrigation canals and drainage systems, and delays in completion of project activities.

Design Features. The project's main pro-poor design feature is the delegation of management responsibilities to the provincial authorities and provision of assistance for effective project implementation to achieve sustainable and equitable human development through consultation and participation of beneficiary groups, particularly poor groups, and good governance and administration.

II. SOCIAL ANALYSIS AND STRATEGY A. Findings of Social Analysis Key Issues. A significant number of people in farming and fishing communities in Northern Province and adjacent areas were economically displaced during conflict periods resulted in the loss of their livelihoods and basic agricultural and fishing equipment. According to a survey done in Jaffna district in 2002, the unemployment rate was 28%; the national figure is about 8%. Transport of both agricultural products and inputs, such as fertilizer and agrochemicals, to Northern Province was restricted during the last three decades. Tourism in NCP was also affected as indicated by the low number of tourists visiting the historic cities of Anuradhapura and Mihintale. Local visitors to places of religious significance were also reduced during this period.

Northern Province roads are badly damaged. Because of the conflict situation, no road rehabilitation or regular maintenance was carried out until May 2009. However, with the political stability in the northern and eastern areas, quite a number of infrastructure development activities were started. The project will enhance development of three district capitals, Jaffna, Mannar, and Vavunia. These urban centers are trading and administrative centers with some industries. In addition, the project area includes small urban centers and commercial towns that will have social and economic benefits from the project. Project beneficiaries represent major ethnic groups in the country.

Number and Percentage of Population in the Project Influence Area by Ethnicity District Sinhalese Tamils Moor Population No. % No. % No. % No. Anuradhapura 39,205 88 996 2 4,426 10 44,168 Jaffna … … 110,000 100 … … 110,000 Vavunia 15,974 16 72,887 76 6,511 7 95,608 Mannar 46 … 65,339 88 8926 12 74,331 Mullaitivu … … 15,507 100 … … 15,507 339,614 Note: Total population figures include members of other ethnic groups. Sources: Estimated population in the project influence area of project roads extracted from the relevant divisional secretaries offices in 2009.

B. Consultation and Participation 1. Provide a summary of the consultation and participation (C&P) process during project preparation. A sample of about 20% residents and other road users were selected from the immediate vicinity of each road for the social survey. This was followed by a series of community consultations with groups and interviews conducted with the grama niladharis (local village officers) and divisional secretaries during the design stage. The consultation process involved discussion of proposed project activities, benefits, and other impacts. This was also done to increase awareness of the project, to find out their needs and concerns, and to obtain suggestions for enhancing benefits and mitigating the negative impacts. All road users mentioned time savings as a potential benefit from the project.

2. What level of C&P is envisaged during the project implementation and monitoring? Information sharing Consultation Collaborative decision making Empowerment

3. Was a C&P plan prepared? Yes No The project implementation consultants will assist the respective provincial road departments and Road Development Authority offices to monitor project impacts through consultations with stakeholders and road users.

C. Gender and Development Key Issues. The project will not provide any specific gender-related benefits. However, if negative impacts on vulnerable households headed by women are identified during road rehabilitation, special support will be provided.

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Key Actions. Measures included in the design to promote gender equality and women’s empowerment—access to and use of relevant services, resources, assets, or opportunities and participation in decision-making process: Gender plan Other actions or measures No action or measure

III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS Significant/Limited/ Plan or Other Measures Issue No Impact Strategy to Address Issue Included in Design Involuntary Limited. No land A resettlement framework is Resettlement Plan Resettlement acquisition is expected. included to address unanticipated Resettlement impacts during road rehabilitation. Framework Environment and Social Management System No Action Indigenous Peoples No Imapct. Not Applicable. Indigenous Peoples Plan Indigenous Peoples Framework Environment and Social Management System No Action Labor Ensure that all civil works Plan Employment contractors comply with all Other Action opportunities applicable labor laws and No Action Labor regulations of Sri Lanka to (i) not retrenchment employ child labor for construction Core labor and maintenance activities; standards (ii) provide equal pay for men and women for similar work under the existing laws; and (ii) provide safe and healthy working conditions, including appropriate sanitation facilities for workers. The project will monitor the contractors' compliance with labor provision and facilities in the contract. Affordability Action No Action Other Risks and/or Sri Lanka has a low As a result of the priority given to Plan Vulnerabilities prevalence rate of HIV use local workers for civil works Other Action HIV/AIDS infection and no cases and possible influx of migrant No Action Human trafficking of human trafficking laborers is very low, the possible Others (conflict, were reported during spread of sexually transmitted political instability, social surveys and the diseases and HIV is unlikely. etc.) interviews conducted. However, awareness and timely This is indicated by information to construction workers statistical data available on risks and preventive measures from Sri Lanka's will be made and contractor's National HIV Control compliance with the Agency's website. implementation of existing laws and labor regulations will be monitored.

IV. MONITORING AND EVALUATION Are social indicators included in the design and monitoring framework to facilitate monitoring of social development activities and/or social impacts during project implementation? Yes No {Please place footnotes here.} Source: Asian Development Bank.