Completion Report Project Numbers: 38111, 36601 Loan Numbers: 2084, 2168, and 2618 September 2013 Sri Lanka: North East Community Restoration and Development Project CURRENCY EQUIVALENTS Currency Unit – Sri Lanka rupee/s (SLRe/SLRs) At Appraisal At Project Completion 1 May 2004 30 September 2012 SLRe1.00 = $0.01 $0.007 $1.00 = SLRs98.85 SLRs131.03 ABBREVIATIONS ADF – Asian Development Fund AusAID – Australian Agency for International Development; BCR – borrower’s completion report CAARP – Conflict-affected Area Rehabilitation Project CPS – country partnership strategy DAPH – Department of Animal Production and Health DMF – Design and monitoring framework DOB – Department of Buildings DPD – deputy project director DPMU – deputy project management unit EA – executing agency EDO – economic development officer GAP – gender action plan GTZ – Gesellschaft für Technische Zusammenarbeit HIV/AIDS – human immunodeficiency virus/acquired immunodeficiency syndrome IA – implementing agency IDP – Internally displaced person LTTE – Liberation Tigers of Tamil Eelam MED – Ministry of Economic Development (formerly MNBEID) MIS – management information system MNBEID – Ministry of Nation Building and Estate Infrastructure Development MPCLG – Ministry of Provincial Councils and Local Government NCB – national competitive bidding NECORD – North East Community Restoration and Development NGO – nongovernment organization NPCC – national project coordination committee PCR – project completion report/review PD – project director PMU – project management unit PPCC – provincial project coordination committee PPTA – project preparatory technical assistance RDHS – Regional Director of Health Services RIA – rapid impact assessment RRP – Report and Recommendations of the President Sida – Swedish International Development Agency TA – technical assistance TAARP – Tsunami-Affected Areas Rebuilding Project TIIP – Trincomalee Integrated Infrastructure Project UAS – Unified Assistance Scheme WRDS – women’s rural development society WEIGHTS AND MEASURES t – metric ton GLOSSARY ayurvedic – traditional medical treatment chummery – hostel accommodation gramaniladhari government representative at village level gravets – littoral areas of a town pradeshyasabha – elected local council NOTE (i) In this report, "$" refers to US dollars. Vice-President X. Zhao, Operations 1 Director General J. Miranda, South Asia Department (SARD) Director R. O’Sullivan, Sri Lanka Resident Mission Team leader K. Dahanayake, Project Officer (Infrastructure), Sri Lanka Resident Mission Team members N. Gunasekera, Senior Social Development Officer (Gender), Sri Lanka Resident Mission Y.B.M. Asmi, Associate Project Analyst, Sri Lanka Resident Mission N. Salgado, Portfolio Management Officer, Sri Lanka Resident Mission D. Sinclair, Associate Project Officer, Sri Lanka Resident Mission N. Amarasekera, Associate Project Analyst, Sri Lanka Resident Mission In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. i CONTENTS Page BASIC DATA ii MAP x I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 3 A. Relevance of Design and Formulation 3 B. Project Outputs 5 C. Project Costs 8 D. Disbursements 9 E. Project Schedule 9 F. Implementation Arrangements 10 G. Conditions and Covenants 11 H. Consultant Recruitment and Procurement 11 I. Performance of Consultants, Contractors, and Suppliers 11 J. Performance of the Borrower and the Executing Agency 11 K. Performance of the Asian Development Bank 11 III. EVALUATION OF PERFORMANCE 12 A. Relevance 12 B. Effectiveness in Achieving Outcome 13 C. Efficiency in Achieving Outcome and Outputs 13 D. Preliminary Assessment of Sustainability 14 E. Impact 14 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 14 A. Overall Assessment 14 B. Lessons 15 C. Recommendations 15 APPENDIXES 1. Conflict and Tsunami Issues 16 2. Design and Monitoring Framework 24 3. Project Implementation Timeline and Schedule 37 4. Gender 39 5. Expenditure By Sector and District 53 6. Training Program 58 7. Health and Education 66 8. Socioeconomic Assessment 77 9. Cost Tables and Figures 93 10. Implementation and Management Structure 99 11. Status of Compliance with Loan Covenants 109 ii BASIC DATA A. Loan Identification 1. Country Sri Lanka 2. Loan Numbers 2084, 2168,and 2618 3. Project Title North East Community Restoration and Development Project 4. Borrower Government of Sri Lanka 5. Executing Agency L2084: MLGPC L2168: MNBEID/MED L2618: MED 6. Amount of Loans L2084: SDR 6.9 million L2168: SDR 16.9 million L2618: SDR 8.3 million 7. Project Completion Report PCR:SRI 1411 Number B. Loan Data 1. Appraisal – Date Started L2084: ... L2168: 12 February 2005a L2618: 24 August 2009a – Date Completed L2084: ... L2168: 28 February 2005a L2618: 28 August 2009a 2. Loan Negotiations – Date Started L2084: 28 April 2004 L2168: 30 March 2005 L2618: 17 February 2010 – Date Completed L2084: 29 April 2004 L2168: 31 March 2005 L2618: 17 February 2010 3. Date of Board Approval L2084: 15 June 2004 L2168: 14 April 2005 L2618: 9 March 2010 4. Date of Loan Agreement L2084: 13 September 2004 L2168: 28 April 2005 L2618: 7June 2010 5. Date of Loan Effectiveness – In Loan Agreement L2084:13 December 2004 L2168: 28 July 2005 L2618: 7 September 2010 – Actual L2084: 28 December 2004 L2168: 28 July 2005 L2618: 2 September 2010 – Number of Extensions L2084: 0 L2168: 0 iii L2618: 0 6. Closing Date – In Loan Agreement L2084: 30 June 2007 L2168: 30 June 2009 L2618: 30 June 2012 – Actual L2084: 30 June 2009 L2168: 31 December 2011 L2618: 30 September 2012 – Number of Extensions L2084: 1 L2168: 2 L2618: 1 7. Terms of Loan L2084 – Interest Rate 1% per year on the amount of the loan – Maturity (number of years) 40 years – Grace Period (number of years 10 years L2168 – Interest Rate 2% per year for the first 10 years after the grace period and 4% per year thereafter – Maturity (number of years) 40 years – Grace Period (number of years 10 years L2618 – Interest Rate 2% per year for the first 10 years after the grace period and 4% per year thereafter – Maturity (number of years) 40 years – Grace Period (number of years) 10 years 8. Terms of Relending (if any) Not applicable 9. Disbursements a. Dates L2084 Initial Disbursement Final Disbursement Time Interval 19 September 2005 9 October 2009 48.7 months Effective Date Original Closing Date Time Interval 28 December 2004 30 June 2007 30.1 months L2168 Initial Disbursement Final Disbursement Time Interval 29 August 2005 6 May 2013 92.2 months Effective Date Original Closing Date Time Interval 28 July 2005 30 June 2009 47.1 months iv L2618 Initial Disbursement Final Disbursement Time Interval 10 December 2010 19 April 2013 28.3 months Effective Date Original Closing Date Time Interval 2 September 2010 30 June 2012 21.9 months b. Amount L2084b Last Disbursed Un- Original Allocation Revised Amount Disbursed disbursed Category or Subloan (SDR) ($) Allocation (SDR) ($) Balance 1. Civil works 5,422,000 7,899,184 7,222,447 4,721,735 7,222,447 0 2. Equipment 687,000 1,000,874 1,024,636 666,224 1,024,636 0 3. Consulting services 206,000 300,117 323 212 323 0 4. Skills development and training 412,000 600,233 280,757 182,173 280,757 0 5. Interest charge 137,000 199,592 109,124 70,476 109,124 0 Total 6,864,000 10,000,000 8,637,287 5,641,822 8,637,287 0 L2168c Last Disbursed Un- Category or Original Allocation Revised Amount Disbursed disbursed Subloan (SDR) ($) Allocation (SDR) ($) Balance 1. Civil works 8,456,000 12,999,231 12,860,589 12,469,035 18,986,327 (6,125,738) 2. Equipment 2,602,000 4,000,000 3,963,964 2,856,008 4,389,176 (425,212) 3. Community-based development and shelter 4,554,000 7,000,769 6,951,499 0 0 6,951,499 4. Incremental operating cost 455,000 699,462 675,329 454,672 674,829 500 5. Interest charge 651,000 1,000,769 1,010,111 507,363 790,855 219,256 Total 16,913,000 26,000,000 25,759,152 16,287,079 24,841,187 917,965 L2618d Last Disbursed Un- Original Allocation Revised Amount Disbursed disbursed Category or Subloan (SDR) ($) Allocation (SDR) ($) Balance 1. Civil works 5,872,000 8,998,613 9,058,155 5,340,529 8,247,195 810,960 2. Equipment 1,305,000 1,999,862 1,996,348 1,852,330 2,831,825 (831,963) 3. Incremental operating cost 652,000 999,165 1,009,810 383,018 599,220 616,160 4. Interest charge 504,000 772,360 770,014 37,665 58,172 714,188 Total 8,333,000 12,770,000 12,834,517 7,613,542 11,736,412 1,309,345 v G0007 Original Amount Un- Category or Allocation Disbursed disbursed Subgrant ($) ($) Balance 1. Civil works 2,000,000 2,971,144 (971,144) 2. Community-based development and shelter 8,600,000 9,178,918 (578,918) 3. HIV/gender programs 400,000 329,597 70,403 4. Livelihood grants 1,000,000 2,370 997,630 5. Training 2,000,000 1,082,132 917,863 Total 14,000,000 13,564,160 435,840 10. Local Costs (Financed): L2084 - Amount (SDR) 2.3 million - Amount ($) 3.4 million - Percent of Local Costs 76% - Percent of Total Cost 46% L2168 - Amount (SDR) 9.5 million - Amount ($) 14.6 million - Percent of Local Costs 58% - Percent of Total Cost 40% ... = not available. ( ) = negative. a Dates for L2168 and L2618 are for fact-finding mission; no appraisal mission was conducted. b L2084: Undisbursed amount of SDR1,222,178.00 was cancelled on 9 October 2009. c L2168: Undisbursed amount of SDR625,921.00 was cancelled on 21 May 2013. d L2618: Undisbursed amount of SDR719,458.00 was cancelled on 21 May 2013.