EA Progress Report Project Number: 42459-013 Loan 2790 Period covered: October to December 2015 SRI: Local Government Enhancement Sector Project (LGESP) Prepared by LGESP (Pura Neguma) Project Management Unit for the Ministry of Provincial Councils and Local Government, Colombo, Sri Lanka. The Executing Agency(EA)’s Progress Reports are documents owned by the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff. These documents are made publicly available in accordance with ADB’s Public Communications Policy 2011 and as agreed between ADB and the Democratic Socialist Republic of Sri Lanka. Government of Sri Lanka Ministry of Provincial Councils and Local Government Quarterly Progress Report Q4 – 2015 ( October - December 2015) January 2016 Local Government Enhancement Sector Project ADB Loan Number: Loan 2790-SRI Project Management Unit Local Government Enhancement Sector Project 191 A, J R Jayawardene Centre, Dharmapala Mawatha, Colombo 07, Sri Lanka Ministry of Provincial Councils and Local Government Contents Contents Executive Summary I. INTRODUCTION .......................................................................................................... 5 A. Background .................................................................................................... 5 B. Scope of the Project ....................................................................................... 5 II. PROJECT PROGRESS ............................................................................................... 6 A. Project Performance ...................................................................................... 6 1. Project rating .......................................................................................................... 6 2. Contract awards and disbursement ..................................................................... 6 3. Loan drawdown ...................................................................................................... 6 B. Government counterpart drawdown ............................................................. 7 C. Project impact, outcome and outputs .......................................................... 7 1. Impact and outcome ............................................................................................... 7 2. Output 1: Improved local infrastructure and basic services delivery ............... 7 3. Output 2: Local government policy reform and capacity building support .... 11 4. Output 3: Project management and administration support ............................ 12 5. Project performance management system ........................................................ 13 D. Financial Management ................................................................................. 13 1. Withdrawal applications and disbursement ...................................................... 13 2. Accounting and auditing ..................................................................................... 14 E. Procurement of Works, Equipment and Consulting Services .................. 14 1. Procurement of works and equipment ............................................................... 14 2. Consulting services ............................................................................................. 14 F. Safeguards .................................................................................................... 15 1. Social safeguards compliance ............................................................................ 15 2. Environmental safeguards compliance .............................................................. 15 3. Safeguards monitoring report ............................................................................. 15 G. Gender and Social Dimensions ................................................................... 15 III. COVENANT COMPLIANCE ...................................................................................... 15 Local Government Enhancement Sector Project LGESP QPR Q4 2015 ADB Loan Number: Loan 2790-SRI Page 2 Ministry of Provincial Councils and Local Government List of Tables: Table 1 Loan Drawdown in USD ............................................................................................................. 6 Table 2 Government Counterpart Drawdown in USD ............................................................................. 7 Table 3 Awards (ADB portion) ................................................................................................................ 8 Table 4 Disbursements (ADB Portion) .................................................................................................... 8 Table 5 Summary Status of Various Packages ...................................................................................... 9 Table 6 Summary Status – Provincewise Civil Works Packages ........................................................... 9 Table 7 Withdrawal Application Details: LGESP .................................................................................. 13 Appendices: Appendix 1 MAP OF PROJECT TOWNS Appendix 2 PROJECT IMPLEMENTATION PROGRESS Appendix 3 CONTRACT AWARD DETAILS Appendix 4 PICTURES OF PROGRESS Appendix 5A PROGRESS OF INFRASTRUCTURE DEVELOPMENT Appendix 5B STATUS OF WATER SUPPLY PROJECTS IN CHRONIC KIDNEY DISEASE AFFECTED AREAS UNDER PURANEGUMA PROJECT Appendix 5C DETAILS OF GOODS, EQUIPMENT AND VEHICLE PACKAGES TO BE AWARDED AS ON 31 DEC 2015 Appendix 6 PROGRESS OF REFORM PLAN AND CAPACITY DEVELOPMENT Appendix 7 IMPLEMENTATION ARRANGEMENTS – STAFFING Appendix 8 PROJECT PERFORMANCE MANAGEMENT SYSTEM Report Appendix 9 PROCUREMENT ACTIVITIES Appendix 10 SUMMARY SAFEGUARDS MONITORING REPORT Appendix 11 GAP MONITORING MATRIX Appendix 12 COVENANT COMPLIANCE Local Government Enhancement Sector Project LGESP QPR Q4 2015 ADB Loan Number: Loan 2790-SRI Page 3 Ministry of Provincial Councils and Local Government Executive Summary Executive Summary of Progress - Local Government Enhancement Sector Project (PuraNeguma) (Quarter Ending - 31 December 2015) Executing Agency: Ministry of Provincial Councils and Local Government Loan Signing: Nov 2011; Effectiveness: Nov 2011; Project Closure: June 2016; Loan Closure: Dec‟ 2016 Financing Plan (US $ million): ADB Loan - 59.0; (Current: 52.30) GoSL Funds – 9.77; Total – 68.77 Project Components: 1) Local Government Infrastructure and Service Delivery Improvement 2) Local Government Policy Reforms 3) Project Management and Administration Support Overall Status: Project Progress on track – Around 75% progress achieved with around 80 % elapsed time Project Achievements to date: 1) Local Government Infrastructure and Service Delivery Improvement (Physical Infrastructure) Project Supports 108 Local Authorities across 7 provinces (except North and East) through a Grant of around 50 million per Pradeshiya Sabha for building priority infrastructure Summary Progress - All Provinces Summary Progress - Province Wise (Civil works - excluding CKD works) Total Award to date: LKR 6650 million Total Expenditure to date: LKR 4256 million Other Progress: (i) All Loan Covenants being implemented; (ii) Project Website developed; (iii) Grievance Redressal Mechanism developed and being implemented; (iv) Gender Action Plan is being implemented; (v) Project Output targets being achieved; (vi) Safeguards being implemented and monitored continuously. 2) Local Government Policy Reform and Capacity Building (Progress as on 31 12 2015) Reform Plans prepared for all 108 PSs prepared and being implemented .(75 % Progress) Solid Waste Management Action Plan prepared for 108 PSs and being implemented. (62 % Progress) IT Solutions for improved citizen services (software installed- 107 PSs; mCash installed - 49 PSs) Guidelines for improved functioning in LAs (prepared and training to pilot LAs completed) Legal Amendments for improving LA functions (drafted. Being forwarded for Cabinet’s approval.) 3) Project Coordination and Administration Support Ministry reviews regularly. National Steering Committee and Ministerial Committee constituted for policy decisions and approvals. A Project Management Unit has been established under the Ministry to coordinate project implementation and is supported by Subproject Coordination Units at Provincial Level and Consultants at Central and provincial Level. Local Government Enhancement Sector Project LGESP QPR Q4 2015 ADB Loan Number: Loan 2790-SRI Page 4 Ministry of Provincial Councils and Local Government Main Report Ministry of Provincial Councils and Local Government Asian Development Assisted Local Government Enhancement Sector Project (Loan No. 2790 SRI) QUARTERLY PROGRESS REPORT – Progress on Quarter Ending 31 December 2015) I. INTRODUCTION A. Background 1. Loan 2790-SRI for the Local Government Enhancement Sector Project (the Project, LGESP) was approved on 29 September 2011 and became effective on 29 November 2011. The physical closing date was 30 June 2015 and loan closing date is 31 December 2015. The Project has been granted of an extension for one year and now the closing date is 31 December 2016. 2. The Local Government Enhancement Sector Project (LGESP) – Pura Neguma is envisaged to improve the effective delivery of local infrastructure and services in selected local authorities in less-developed areas of Sri Lanka. Under the project, 108 Local Authorities have been selected in seven provinces (excluding the Northern and Eastern provinces), whose reform