The World Bank Report No: ISR11804 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: 7 Status: ARCHIVED Archive Date: 21-Oct-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 02-Jun-2013 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) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Low Low Implementation Status Overview This ISR is based on the findings of the joint mission which was carried out by World Bank, AusAID and Government team between July 29 - August 9, 2013. The overall Page 1 of 7 The World Bank Report No: ISR11804 implementation progress was found to continue to be Moderately Satisfactory despite tremendous improvements since the MTR. To get back to satisfactory ratings, the project coordination and management were advised to resolve the issue of submitting action plan for the balance period, complete website development, complete and streamline MIS with MLGPC, complete social impact assessment, organize exposure visits to LA members, and closely monitor work plans. Most of the issues identified at MTR have been resolved now and all project components are fully aligned for a satisfactory performance. 78 out of 79 LAs in North and East continue to be qualified to receive grants based on criteria such as staff Public Disclosure Copy capacity, service delivery, financial management, participatory planning process, and citizen participation whereas one LA is caught up with audit disputes. So far, LKR 2,492 million, LKR 3,739 million, and LKR 1,909 million had been released to the LAs in 2011, 2012 and 2013 respectively. The outputs of the components are well in line with work program targets and the outcomes are collectively contributing to the achievement of the PDO. The total cumulative disbursements as of July 31, 2013 are 75.48%. The actual total project expenditure up to July 31, 2013 stands at LKR 4,488 compared to cumulative total financial targets of the agreed work plan. This amounts to about 50% but it would rise steeply once most of the on-going subprojects are completed by December 2013. The status of fulfilling the actions agreed during the previous missions is Satisfactory. Following are some of the key achievements: � The capacity of local governments to deliver basic services is no longer absent, and a positive practice of constructive interaction between citizens and LAs to prioritize community needs has emerged. All LAs continue to revise the LAPDPs in consultation with the citizen. LAs prepare their own proposals and estimates and also implement all works. They now prepare proposals for works within their jurisdiction even though they are executed by other institutions. � LA performance has met the expectations, highlighting how well they are anchored in the standing communities and working with the established Social Audit Committees. � The introduction of annual qualifying criteria has laid the foundations for further improvements in local public financial management as evidenced by the increase in the number of LAs with acceptable audit opinions. � The performance of individual components has improved compared to their status at the MTR. This is a notable achievement especially given the challenging context for local governance. � LAs prepare their annual budgets based on revised LAPDPs and knowledge gained by implementing NELSIP. � 385 km interconnectivity rural roads, 23 km flood storm drainages, 4 rural water supply schemes, 51 common assets like markets/parks/playgrounds/cemeteries, and 9 rural electrification schemes are completed. Many such subprojects are under various stages of completion. 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: ISR11804 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: ISR11804 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: ISR11804 Indicator Name Core Unit of Measure Baseline Current End Target Construction/rehabilitation of rural and other Kilometers Value 0.00 385.00 1000.00 village roads (kilometers) Date 09-Aug-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 23000.00 245000.00 Date 13-May-2010 09-Aug-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 4.00 439.00 Date 13-May-2010 09-Aug-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. Playgrounds, markets and nurseries Number Value 0.00 155.00 405.00 Date 13-May-2010 09-Aug-2013 30-Jun-2015 Comments Percentage of capital grants released against Percentage Value 0.00 61.00 70.00 allocation Date 13-May-2010 09-Aug-2013 30-Jun-2015 Comments Public Disclosure Copy Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Rising satisfaction of Local People on LAs Percentage Value 0.00 80.00 80.00 Date 13-May-2010 09-Aug-2013 31-Dec-2015 Comments Acceptable financial audits of accounts Number Value 0.00 78.00 60.00 Page 5 of 7 The World Bank Report No: ISR11804 Date 13-May-2010 09-Aug-2013 31-Dec-2015 Comments Number of LAs preparing annual financial Number Value 28.00 54.00 60.00 Public Disclosure Copy statements with 3 months after closing of Date 13-May-2010 09-Aug-2013 31-Dec-2015 financial year Comments Number of LAs whose revenues, expenditures, Number Value 0.00 79.00 80.00 and procurement decisions are publicly Date 13-May-2010 25-Mar-2013 31-Dec-2015 disclosed Comments Data on Financial Performance (as of 03-Sep-2013) Financial Agreement(s) Key Dates 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) 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 Public Disclosure Copy Page 6 of 7 The World Bank Report No: ISR11804 Key Decisions Regarding Implementation Considering the continued performance of the project as well as the ratings assigned for major project performance indicators, the PDO is rated Satisfactory. The Implementation Progress rating continues to be Moderately Satisfactory as a result of the implementation delays after October 2012. Generally, all project components are moving smoothly. Once the implementation progress in the two Provinces reach the targets, the rating will move to Satisfactory level. The project is on track to achieve its PDO. The project continues to Public Disclosure Copy make steady progress towards achieving its development objectives as set out in the PAD and in the FA. It is agreed to complete the action plan, website development, MIS, social impact assessment, and organizing exposure visits before the next mission scheduled on October 18, 2013. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 7 of 7