Announcement of Sri Lanka Receives IDA Credit for Construction Industry on May 4, 1981

J• f OR 1MMEDIATE RELEASE •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 81/75 May 4, 1981 SRI LANKA RECEIVES IDA CREDIT FOR CONSTRUCTION INDUSTRY The I nternat i ona l Development Association (IDA), has approved a credit of SDR 10.9 mill ion ($13.5 mill ion) to Sri Lanka for a project which aims to increase the supply of trained manpower in the construction industry. ID~ is the World Bank 1 s affiliate for concessionary lending. The $25 mill ion project will provide training in the principal skills which are now in short supply in the country's construction trades. This goal will be accom- plished by establishing a modular training system designed to give basic trade skills to about 45,000 unskilled workers and upgrade the existing skills of some 9,600 ex- perienced construction workers. The program provides also for the training of about 1,800 mechanical equipment operators and of some 900 works supervisors who will acquire onsite experience in the basic techniques of supervision and quality control. In • addition, about 80 senior works managers will be trained in works planning and maaage- ment. The labor supply in Sri Lanka 1 s construction industry has been lacking both in numbers and in quality due in part to widespread emigration of skilled workers and to the informal, unstructured nature of the current apprentice system. It is estimated that training output under this project will supply about 60% of the cumulative in- crease in the work force up to 1984. Proceeds from the IDA credit will supply technical assistance to establish and run the training programs and advise the government on technical and pol icy issues concerning the construction industry; equipment and materials for training will also be provided. The Ministry of Local Government, Housing and Construction will implement the project, which involves the efforts of five other ministries. The IDA credit is for 50 years, including 10 years of grace. It bears no interest, but will carry a service charge of 3/4 of 1% per annum to cover the Association's administrative costs. The credit will be committed when funds are available. NOTE: lDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The lLS. dollar equivalent of the SOR amount of the IDA credit reflects the exchange rates existing • at the time of negotiation of the credit . FORM NO. 1121 (5-76) T ECHN I CA L DATA PROJECT: COUNTRY: TOTAL COST: Construction Industry Sri Lanka $25 mill ion • IOA FINANCING: SOR 10.9 mill ion ($13.5 mil 1 ion), standard IDA terms OTHER FINANCING: Government of Sri Lanka, $11 .5 mill ion IMPLEMENTING ORGANIZATION: Ministry of Local Government, Housing and Construction Lower Chatham Street Colombo, Sri Lanka PROJECT DESCRIPTION: The project wi l 1 increase the supply of trained manpower and improve the level of technical management expertise in the construction industry by the fol lowing means: (i) training of about 45,000 unskilled workers up to a 11 basic skilled 11 level; (ii) upgrading of skills of about 9,600 skilled w~rkers;. (!ii) training of ~bo~t 1,800 mechani~al equipment_o~erators and ~echan~cs; • (1v) tra1n1ng of about 900 Junior works superv1sors;(v) tra1n1ng of about 80 senior works managers;(vi) provision of equipment and training materials; and (vii) technical assistance. PROCU.REMENT: Purchase of equipment and tools for training will be on the basis of competitive bidding limited to international sup- pliers of models and types which are representative, to the extent possible, of those currently in use in the country. Where no specified type of tool or equipment exists, international competitive bidding wil 1 be used and a preference of 15% or the import tariff amount, whichever is lower, will be allowed on locally assembled items in accord- ance with World Bank/I DA guidelines. Procurement of training materials wil 1 be carried out either by shopping or by local competitive bidding. For shopping, quotations will be received from at least three suppliers. · CONSULTANTS: The Government of Sri Lanka proposes to enter into a con- tract with the British Council, which will undertake the recruitment of expatriate experts on the international market. ESTIMATED COMPLETION DATE: 1985 - 0 - •