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Democratic Socialist Republic of Sri Lanka: Delivering Natural Resource and Environmental Management Services Sector Project (Financed by Japan Special Fund)

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Democratic Socialist Republic of Sri Lanka: Delivering Natural Resource and Environmental Management Services Sector Project (Financed by Japan Special Fund) Technical Assistance Consultant’s Report Project Number: 33255 September 2005 Democratic Socialist Republic of Sri Lanka: Delivering Natural Resource and Environmental Management Services Sector Project (Financed by Japan Special Fund) Prepared by: ANZDEC Limited, New Zealand in association with Infotechs Ideas (Pvt) Limited, Sri Lanka For: Ministry of Environment and Natural Resources, Sri Lanka This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. SRI LANKA DELIVERING NATURAL RESOURCE AND ENVIRONMENTAL MANAGEMENT SERVICES SECTOR PROJECT ADB TA NO. 4059–SRI Final Report Volume I – Main Report September 2005 Prepared for the Ministry of Environment and Natural Resources, Sri Lanka and the Asian Development Bank by ANZDEC Limited, New Zealand in association with Infotechs Ideas (Pvt) Limited, Sri Lanka ADB TA 4059-SRI: Delivering Natural Resource and Environmental Management Services Sector Project ANZDEC Ltd Final Report: Volume I – Main Report i CONTENTS VOLUME I – MAIN REPORT LIST OF APPENDIXES .................................................................................................................................................ii LIST OF TABLES ......................................................................................................................................................... iii LIST OF FIGURES .......................................................................................................................................................iv ABBREVIATIONS AND ACRONYMNS.........................................................................................................................v EXECUTIVE SUMMARY..............................................................................................................................................ix I. INTRODUCTION ..................................................................................................................................................1 A. Objective....................................................................................................................................................1 B. Reporting Outcomes..................................................................................................................................2 C. Decisions taken during the TA Process .....................................................................................................4 II. BACKGROUND ....................................................................................................................................................5 A. Sector Goals ..............................................................................................................................................5 B. Persistent Policy Failure - Policy As An Output .........................................................................................7 C. Sector Performance.................................................................................................................................11 D. NREM System – Meaning and Understanding ........................................................................................14 E. The Role of Subsidiarity – The Major NREM Challenge ..........................................................................15 F. Livelihood and NREM ..............................................................................................................................16 G. Overview of Proposed NREM Framework – Collaborative Resource-Based Ecologically Sustainable Livelihood.............................................................................................................................21 H. Establishing the Process..........................................................................................................................31 I. Plan Implementation Functions................................................................................................................34 J. Financing .................................................................................................................................................36 K. NREM Reporting and Information Systems .............................................................................................42 L. Risks and Assumptions............................................................................................................................50 M. Applications of the NREM Framework .....................................................................................................51 III. SOLID WASTE MANAGEMENT PROGRAM .....................................................................................................52 A. Background..............................................................................................................................................52 B. Scope and Rationale for SWM Investment ..............................................................................................63 C. SWM Program Description ......................................................................................................................71 D. SWM Investment Financial and Economic Justification...........................................................................96 IV. INTEGRATED NATURAL RESOURCE MANAGEMENT .................................................................................108 A. Overview................................................................................................................................................108 B. Pilot Case Study - Aranayake Integrated Nrem .....................................................................................113 C. Ecologically Sensitive Areas – Koggala Wetlands Management Case Study........................................118 D. The National Wetlands Policy ................................................................................................................119 E. Management Guidance..........................................................................................................................120 F. Strategy for Ecologically Sensitive Areas...............................................................................................121 G. Koggala Wetlands Case Study ..............................................................................................................122 V. PROGRAM DESCRIPTION..............................................................................................................................128 A. Program Goal........................................................................................................................................128 B. Component One: Collaborative Landscape Management of Natural Resource and Environment-Based Sustainable Livelihood...........................................................................................128 C. Component Two: Collaborative Management of Ecologically Sensitive Areas ......................................133 D. Component Three: Support for National Capacity to Monitor and Report Sector Performance .............138 E. Cost Estimates.......................................................................................................................................138 F. Implementation Arrangements...............................................................................................................138 G. Expected Benefits..................................................................................................................................146 H. Risks and Assumptions..........................................................................................................................147 ANNEX 1: POVERTY AND SOCIAL ASSESSMENT ................................................................................................163 ADB TA 4059-SRI: Delivering Natural Resource and Environmental Management Services Sector Project ANZDEC Ltd ii Final Report: Volume I – Main Report LIST OF APPENDIXES VOLUME II – SOLID WASTE MANAGEMENT Appendix 1 Background Review Paper Appendix 2 Review of Solid Waste Management Issues Appendix 3 Provincial Solid Waste Management Strategic Planning Process Appendix 4 Strategic Management Planning Concepts for Solid Waste Management Appendix 5 Public-Private Partnership Planning Guidelines in Solid Waste Processing and Disposal Appendix 6 Public-Private Partnership in Municipal Solid Waste Collection Appendix 7 Public-Private Partnership – Structural Options in Final Disposal of Solid Waste Appendix 8 Legal Mandates for Solid Waste Management Appendix 9 Solid Waste Management Environmental Regulation Options and Assessment Appendix 10 Final Disposal – Indicative Clusters Appendix 11 Participatory Solid Waste Management – Waste Reduction and Livelihood Appendix 12 Preliminary Final Disposal Concept Design and Costing Appendix 13 Solid Waste Management – Financial Costings and Economic Analysis Appendix 14 Initial Environmental Examination VOLUME III – MULTI-STAKEHOLDER LIVELIHOOD AND NATURAL RESOURCE MANAGEMENT Appendix 1 Proposed Decentralized Natural Resource and Environment Planning Appendix 2 Institutionalizing Decentralized Natural Resource and Environment Planning Appendix 3 Community-based Natural Resource Management: A Review Appendix 4 Community as a Legal Identity Appendix 5 Legal Mandates for Natural Resource Planning and
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