The World Bank Report No: ISR10221 Implementation Status & Results Sri Lanka North East Local Services Improvement Project (NELSIP) (P113036) Public Disclosure Copy Operation Name: North East Local Services Improvement Project (NELSIP) Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Archive Date: 02-Jun-2013 (P113036) Country: Sri Lanka Approval FY: 2010 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 13-May-2010 Original Closing Date 31-Dec-2015 Planned Mid Term Review Date 16-Dec-2012 Last Archived ISR Date 16-Dec-2012 Effectiveness Date 15-Dec-2010 Revised Closing Date 31-Dec-2015 Actual Mid Term Review Date 12-Mar-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) The primary development objective of the project is to improve the delivery of local infrastructure services by local authorities in the Northern and Eastern Provinces of Sri Lanka in an accountable and responsive manner. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1: Infrastructure Service Delivery 76.00 Component 2: Institutionalizing Accountabilities 2.00 Component 3: Building Capacities 4.00 Component 4: Assessments and Evaluation 1.00 Component 5: Project Management 3.00 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Low Implementation Status Overview This ISR is based on the the Mid Term Review (MTR) Mission for NELSIP which was carried out by a World Bank team between March 12 and 25, 2013. Overall, NELSIP had an Page 1 of 7 The World Bank Report No: ISR10221 excellent start in mobilizing Local Authorities (LAs), improving local service delivery and contributing to local government development. The largest expenditure item is the capital grants to LAs for infrastructure service delivery under Component 1. The capital grants have been allocated on a formula based on population, land extent, and degree of conflict damage. All 79 LAs in North and East are now qualified to receive grants based on criteria such as staff capacity, service delivery, financial management, participatory planning process, and citizen participation. Indicative total allocations for each LA had been notified to all at the commencement of the project. So far, LKR 2,475 million and LKR 1,127 million Public Disclosure Copy had been released to the LAs in 2011 and 2012 respectively for the subprojects approved till October 2012. Eastern Province had submitted documents for a grant amount of LKR 1,262 million for 2013 while Northern Province has not taken any action. But, no grants have been released for 2013 due to a decision taken by the GOSL to restructure the project as a result of delays in approving annual subproject lists and large sum of unused funds lying in LA accounts. LKR 462 million is temporarily kept at (Commissioner of Local Government) CLG project accounts to avoid accumulation of unutilized funds at LA project accounts and releases are made based on needs until a decision is taken at the national level on the future direction of the project implementation. The following are some key achievements by the projects: � NELSIP has increased the “visibility� of LAs and local government in general. Elected local governments are increasingly seen as a key element of local service delivery framework, the capacity of local governments to deliver basic services is no longer assumed to be absent, and a positive practice of constructive interaction between citizens and LAs to prioritize community needs has emerged. There is increasing confidence that the project will successfully achieve its PDOs. � LAs are demonstrating increased capacity, thanks to the ‘learning by doing’ approach of providing block grants directly to finance community infrastructure. While there is undoubtedly room for much improvement in LA infrastructure and service delivery (more technically sound planning, enhanced citizen engagement, fast implementation, etc.), NELSIP is beginning to demonstrate that LAs can, despite many constraints, deliver public goods to their constituencies. It has been noted that more than 325 public schemes have been delivered and maintained by LAs over the past 30 months. Available evidence indicates that LA performance has met the initial expectations, highlighting how well they are anchored in the standing communities. Social Audit Committees established to provide third party quality control on subproject implementation appear to be functioning well. � The introduction of annual qualifying criteria has laid the foundations for further improvements in local public financial management. LAs must demonstrate accountability in producing accounts and submitting to audits while at the same time improving planning and execution through iterations of project planning as per the LAPDPs. � Finally, the project is now making steady progress towards achieving its development objectives as set out in the PAD and in the FA. Furthermore, the performance of individual components has also improved compared to their status in June 2012. This is a notable achievement especially given the challenging context for local governance in which NELSIP was designed and implemented. Locations Country First Administrative Division Location Planned Actual Sri Lanka North Eastern Province Verukal Sri Lanka North Eastern Province Velanai Public Disclosure Copy Sri Lanka North Eastern Province Vavuniya Sri Lanka North Eastern Province Valvedditturai Sri Lanka North Eastern Province Uhana Sri Lanka North Eastern Province Trincomalee District Sri Lanka North Eastern Province Thirukkovil Sri Lanka North Eastern Province Sammanturai Page 2 of 7 The World Bank Report No: ISR10221 Country First Administrative Division Location Planned Actual Sri Lanka North Eastern Province Puthukkudiyiruppu Public Disclosure Copy Sri Lanka North Eastern Province Pottuvil Sri Lanka North Eastern Province Pooneryn Sri Lanka North Eastern Province Point Pedro Sri Lanka North Eastern Province Periyakinniya Sri Lanka North Eastern Province Padiyatalawa Sri Lanka North Eastern Province North Eastern Province Sri Lanka North Eastern Province Nintavur Sri Lanka North Eastern Province Nanaddan Sri Lanka North Eastern Province Namal Oya Sri Lanka North Eastern Province Nallur Sri Lanka North Eastern Province Musali Sri Lanka North Central Province Morawewa Sri Lanka North Eastern Province Mantai Sri Lanka North Eastern Province Mannar Sri Lanka North Eastern Province Manmunai Sri Lanka North Eastern Province Maha Oya Sri Lanka North Eastern Province Lahugala Public Disclosure Copy Sri Lanka North Eastern Province Kuchchaveli Sri Lanka North Eastern Province Koralai Forest Reserve Sri Lanka North Eastern Province Kilinochchi District Sri Lanka North Eastern Province Kayts Sri Lanka North Eastern Province Karamunai Karachchi Sri Lanka North Eastern Province Karaitivu Sri Lanka North Eastern Province Karainagar Page 3 of 7 The World Bank Report No: ISR10221 Sri Lanka North Eastern Province Kantalai Sri Lanka North Eastern Province Kalmunai Public Disclosure Copy Sri Lanka North Eastern Province Jaffna District Sri Lanka North Eastern Province Jaffna Sri Lanka North Eastern Province Gomarankadawala Sri Lanka North Eastern Province Eravur Town Sri Lanka North Eastern Province Delft Island Sri Lanka North Eastern Province Damana Sri Lanka North Eastern Province Cheddikulam Sri Lanka North Eastern Province Chavakachcheri Sri Lanka North Eastern Province Batticaloa District Sri Lanka North Eastern Province Batticaloa Sri Lanka North Eastern Province Ampara Sri Lanka North Eastern Province Ampara District Sri Lanka North Eastern Province Akkaraipattu Sri Lanka North Eastern Province Kattankudy Results Project Development Objective Indicators Public Disclosure Copy Page 4 of 7 The World Bank Report No: ISR10221 Indicator Name Core Unit of Measure Baseline Current End Target Construction/rehabilitation of rural and other Kilometers Value 0.00 303.00 1000.00 village roads (kilometers) Date 25-Mar-2013 30-Jun-2015 Public Disclosure Copy Comments Accurate data not available Out of 1000 Kms of access roads, 865 Kms are expected to be tarred and 135 Kms to be concrete. An estimated 369,727 people are expected to benefit from construction/ rehabilitation of rural and other village roads. Construction of drainage systems Meter(m) Value 0.00 16150.00 245000.00 Date 13-May-2010 25-Mar-2013 30-Jun-2015 Comments Accurate data not available An estimated 216,719 people are expected to benefit from construction of drainage systems. Construction and rehabilitation of water points Number Value 0.00 2.00 439.00 Date 13-May-2010 25-Mar-2013 30-Jun-2015 Comments Accurate data not available An estimated 198,178 people are expected to benefit from construction and rehabilitation of water points. Percentage of capital grants released against Percentage Value 0.00 70.00 8140.00 allocation Date 13-May-2010 25-Mar-2013 30-Jun-2015 Comments Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of LAs preparing annual financial Number Value 28.00 75.00 60.00 Public Disclosure Copy statements with 3 months after closing of Date 13-May-2010 25-Mar-2013 31-Dec-2015 financial year Comments Number of LAs whose revenues, expenditures, Number Value 0.00 79.00 40.00 and procurement decisions are publicly Date 13-May-2010 25-Mar-2013 31-Dec-2015 disclosed Comments Data on Financial Performance (as of 11-Mar-2013) Financial Agreement(s) Key Dates Page 5 of 7 The World Bank Report No: ISR10221 Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P113036 IDA-47280 Effective 13-May-2010 08-Nov-2010 15-Dec-2010 31-Dec-2015 31-Dec-2015 Disbursements (in Millions) Public Disclosure Copy Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P113036 IDA-47280 Effective XDR 33.00 33.00 0.00 24.54 8.46 74.00 Disbursement Graph Key Decisions Regarding Implementation Considering the continued progress and performance of the project as well as the ratings assigned for major project performance indicators, the PDO rating continue to be rated Satisfactory but the Implementation Progress rating is down graded to moderately satisfactory as a result of the implementation delays after October 2012. Generally, all project components are ongoing smoothly and once the implementation issues in the two Provinces are fixed, the rating for the implementation progress will reach Satisfactory level. The Public Disclosure Copy project is on track to achieve its PDO. The project is continues to make steady progress towards achieving its development objectives as set out in the PAD and in the FA. Furthermore, the performance of individual components has also improved compared to their status in June 2012. This is a notable achievement especially given the challenging context for local governance in which NELSIP was designed and implemented. It is agreed to prepare an action plan for the remainder of the project period in consultation with LAs, Provinces, Political Authorities, and concerned Ministries, Advisory Committee before April 30, 2013. The subprojects for 2013, based on the revised Local Authority Participatory Development Plans (LAPDPs) will be cleared before April 30, 2013. The Grant Agreement for the AusAID Co-financing will be concluded by April 12, 2013 and signed before April 30, 2013. All vacancies of key staff at the PMUs will be filled before May 15, 2013. A full time officer will be assigned to assist the Project Coordinator at Ministry of Economic Development. The MIS will be made fully operational by June 01, 2013. The grant allocation formula and mechanism will be revisited and the project will be restructured to accommodate the AusAID Grant by April 30, 2013. An independent Technical Audit will be put in place by June 30, 2013. Page 6 of 7 The World Bank Report No: ISR10221 Restructuring History There has been no restructuring to date. Public Disclosure Copy Related Projects There are no related projects. Public Disclosure Copy Page 7 of 7