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Dry Zone Urban Water and Sanitation Project – Additional Financing (RRP SRI 37381)

DEVELOPMENT COORDINATION

A. Major Development Partners: Strategic Foci and Key Activities

1. In recent years, the Asian Development Bank (ADB) and the Government of Japan have been the major development partners in water supply. Overall, several bilateral development partners are involved in this sector, including (i) Japan (providing support for , , towns north of Colombo, and Eastern Province), (ii) Australia (), (iii) Denmark (Colombo, Kandy, and Nuwaraeliya), (iv) France (), (v) Belgium (Kolonna–), (vi) the United States of America ( and Haliela), and (vii) the Republic of Korea (). Details of projects assisted by development partners are in the table below. The World Bank completed a major community water supply and sanitation project in 2010.

Details of Projects in Assisted by the Development Partners, 2003 to Present Development Amount Partner Project Name Duration ($ million) Asian Development –Killinochchi Water Supply and Sanitation 2011–2016 164 Bank Dry Zone Water Supply and Sanitation 2009–2014 113 Secondary Towns and Rural Community-Based 259 Water Supply and Sanitation 2003–2014 Greater Colombo Wastewater Management Project 2009–2015 100

Danish International Kelani Right Bank Water Treatment Plant 2008–2010 80 Development Agency Nuwaraeliya District Group Water Supply 2006–2010 45 Towns South of Kandy Water Supply 2005–2010 96

Government of Eastern Coastal Towns of , Phase III 2011–2015 90 Australia Rehabilitation and Upgrade of Southern Catchment Greater Colombo Sewerage 2006–2012 20 Government of Energy Conservation Project at Water Treatment Germany Plants 2009–2012 60 Government of the Ruhunupura Water Supply Project 2011–2014 86 Republic of Korea Government of the Augmentation of Negambo Water Supply 2007–2010 67 Government of Kolonna–Balangoda Water Supply Project 2012–2016 40 Belgium Government of Greater Trincomalee Water Supply Project 2008–2012 40 France Government of Spain Water Treatment Facilities in , , Ambatale, and Negambo 2007–2010 26 Government of the Badulla Haliela, Ella Water Supply Project 2011–2016 65 United States Japan International Kaluganga Phase I, Stage II, and Nonrevenue Cooperation Agency Water Reduction in Colombo City 2008–2012 109 Greater Kandy Water Supply, Phase II 2007–2012 40 Towns North of Colombo Water Supply Project 2007–2012 64 Eastern Province Water Supply Development Project 2010–2013 60 Greater Kandy Wastewater Management Project 2007–2017 200 Swedish International Ekala, Jaela, Rathmalana, Moratuwa Wastewater Development Agency Improvement Project 2006–2012 110 World Bank Sri Lanka North and East Pilot WASH for Post- Conflict Resettlements 2011-2014 2 2

Development Amount Partner Project Name Duration ($ million) North East Local Services Improvement Project 2010-2015 50 Community Livelihoods in Conflict-Affected Areas 2009–2014 117 Emergency North Recovery 2009–2012 65 WASH = water, sanitation, and hygiene. Source: NWSDB WEB Page

2. The United Nations and its agencies continue to provide humanitarian, rehabilitation, and livelihood assistance to returning internally displaced persons in the Northern Province. Among others, these agencies help rehabilitate and improve water supply works. Several international nongovernment organizations, such as the International Federation of the Red Cross, are also involved in post-conflict reconstruction programs which include water supply and sanitation elements.

B. Institutional Arrangements and Processes for Development Coordination

3. Consultations have been held with other development partners to (i) prevent any overlapping between ADB-assisted Dry Zone Urban Water Supply and Sanitation Project and other water supply and wastewater development projects, and (ii) share knowledge and resources. In particular, ADB often coordinates with the Japan International Cooperation Agency, which has several programs to improve water supply in Sri Lanka.

4. While project design does not strictly follow a program-based approach, special emphasis is given to development coordination and promoting Sri Lanka’s leadership in setting sectoral priorities. A formal process for development coordination and harmonizing development partner procedures is led by the Ministry of Water Supply and Drainage through a national steering committee that meets at least quarterly to coordinate and monitor development assistance.

5. Institutional coordination at project level is assured through various mechanisms. A national project implementation coordination committee has been established with senior representatives from central and provincial government agencies. Chaired by the secretary of the Ministry of Water Supply and Drainage, the committee advises and guides the project on national strategic and policy decisions. Provincial project coordination committees have been established in Northern and North Western provinces to provide provincial coordination and oversee progress in urban sanitation, tank rehabilitation, and water resource management. The committees meet as often as necessary, at least quarterly. Detailed designs are endorsed by local stakeholder committees.

C. Achievements and Issues

6. As reflected in its development program,1 the provision of water supply and sanitation services in the Northern Province is a priority the . Based on the program’s investment plan, the government has sought assistance from various development partners. ADB is currently involved in developing drinking water supply in , Colombo, Jaffna, Mannar, Muttur, , , and . In Point Pedro, ADB collaborates with the Red Cross to develop water supply in selected areas. In the Northern Province, ADB coordinates with (i) the Japan International Cooperation Agency to rehabilitate minor irrigation tanks and water supply in Killinochchi, and (ii) with the World Bank to restore and improve

1 Government of Sri Lanka. 2010. Mahinda Chintana: Vision for a New Sri Lanka. 2010-2020. Colombo. 3 irrigation schemes in the region; water, sanitation, and hygiene programs in post-conflict resettlements; and local infrastructure services delivery by local authorities and for emergency recovery. The government is reconstructing some of the smaller water supply schemes using local funds.

D. Summary and Recommendations

7. Coordination among development partners and development agencies involved in infrastructure development in the northern areas is important to avoid project overlap and duplication, fill gaps, and optimize development benefits and return on investment. Coordination mechanisms at the central and provincial level maximize impact and minimize disputes.