Sri Lanka - Community Water Supply and Sanitation Project

 ICRR 10469 Report Number : ICRR10469 ICR Review Operations Evaluation Department 1. Project Data : OEDID : OEDID: C2442 Project ID : P010409 Project Name : Community Water Supply and Sanitation Project Country : Sri Lanka Sector : Rural Water Supply & Sanitation L/C Number : Credit 2442-CE Partners involved : Prepared by : Tauno K. Skytta, OEDST Reviewed by : Helen Abadzi Group Manager : Gregory K. Ingram Date Posted : 08/13/1999 2. Project Objectives, Financing, Costs and Components : Objectives : The project was designed as a large -scale pilot with the following key objectives : (i) develop systems and institutions for community based planning, implementation, and operation and maintenance (O&M) of cost-effective and sustainable rural water supply and sanitation (RWS&S); (ii) implement such schemes in the districts of Badulla, Matara, and Ratnapura; and (ii) prepare a follow-on project that would extend the same approach, as further developed during the project, to the rest of the country . Components : The project comprised the following components : (i) Program development, including project planning and management, and promotional and training activities in participating communities; (ii) water supply schemes to provide improved service to approx . 650,000 people using a variety of appropriate technologies; (iii) sanitation provision through grant funding of household latrines in about 3,800 villages, small towns, and schools; (iv) hygiene education to fund media campaigns, hygiene training, and equipment; and (v) institutional development through project management, training, and TA for capacity building, studies, including monitoring and evaluation (M&E), and preparation of a follow-on project. Costs: The total project costs at appraisal was US$ 32.3 million vs. the actual estimated costs of US$ 33 million. Financing : The costs were financed by the IDA credit (US$24 million), GOSL (US$6 million), and participating communities (US$3 million). The IDA credit was approved in FY 93 and was closed, fully disbursed and as scheduled, on December 31, 1998. 3. Achievement of Relevant Objectives : The project substantially achieved its objectives : (i) the approach to involve beneficiary communities in the design, implementation, and O&M of new water and sanitation systems was tested on a large scale and the results so far are positive, see box 4 below; (ii) the target for the construction of water supply and sanitation schemes was exceeded so that some 950,000 people now enjoy improved water supply; 64,000 on-site toilets were constructed against 45,000 planned. In addition, sanitation facilities were improved in about 700 schools; and (iii) preparation of a follow-on project was initiated during project implementation, but it was halted due to a change in priorities in the Bank lending program to Sri Lanka . 4. Significant Achievements : Project implementation was a useful learning experience for all stakeholders . Systems and procedures for community/demand based approach were successfully developed, tested, and refined during project implementation and are now available for design of future RWS&S projects in other districts; the approach has been adopted in a recently approved Asian Development Bank funded project in six other districts . Further, GOSL is using the experience and findings from the project in developing its RWS policy . Ownership by beneficiary communities is demonstrated through a strong response to cash /labor contribution requirements of 20% (of the scheme costs) which was nearly achieved on average, but even exceeded in a number of communities . The project also trained a cadre of managers and operators at various levels, and provided important experience for a large number of NGOs who can act as small-scale contractors and facilitators in other projects . The recalculated ERR is 26% (for water schemes only), slightly higher than the appraisal estimate of 21%; the same for the whole project is estimated at 15% (appraisal estimate was about 7%). 5. Significant Shortcomings : Although progress has been made, administration, financial management, and O&M at the scheme level remain weak thus requiring further guidance and training . This results from an unfortunate decision (with Bank's agreement) to curtail funding of TA activities mid -stream, which also affected the effectivenes of health education and hygiene promotion programs, as well as the continuation of operational monitoring of the completed schemes . Less than satisfactory performance in these areas casts some doubts on the sustainability of project benefits . Some financial irregularities were identified in one of the project districts during the process of preparing the ICR, but GOSL has reportedly taken immediate corrective actions . 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Satisfactory Satisfactory Institutional Dev .: Substantial Substantial Despite significant progress made at the central and district levels, weaknesses remain at the scheme level, thus requiring further sustained effort to improve financial management and O&M of schemes. Sustainability : Uncertain Uncertain Bank Performance : Highly Satisfactory Highly Satisfactory Borrower Perf .: Satisfactory Satisfactory Quality of ICR : Exemplary 7. Lessons of Broad Applicability : The ICR presents several important findings and lessons applicable to the project and useful for many future projects in Sri Lanka and elsewhere . One which should be further highlighted is the need for rigorous M&E during project implementation, the key for achieving sustained results . Similarly, the continued funding of TA activities is the key to critical institutional improvements . 8. Audit Recommended? Yes No 9. Comments on Quality of ICR : The ICR is complete, clearly written, and overall of excellent quality . It presents the achievements convincingly in detail and analyses comprehensively the factors that affected project implementation . A specifically useful feature in the ICR is the discussion of the financial management and related irregularities, resulting corrective actions taken by the governmental authorities (including fundamental improvements in this respect ), and in general, the comprehensive review of difficulties faced in the institution building and subsequent innovations developed in this area.