Sri Lanka Early Warning Update

Asian Development Bank Business Opportunities: Volume No. 2, January 2008

Tuesday, January 29, 2008

This Bulletin is a periodic electronic update from the Bank Information Center (BIC) South Asia office to inform civil society about Asian Development Bank (ADB) projects before they are approved by the Board of Directors of the ADB. 

This Update covers project information, organized by sectors, covering Sri Lanka only.  The information is compiled directly from ADB’s Business Opportunities.

For feedback on the Early Warning Update or to subscribe, please contact:
Bank Information Center's, South Asia Office (New Delhi)
Phone: +91-11-2602 0143; Email: southasia@bicusa.org; Web: www.bicusa.org

For more information on specific projects, please contact the following at the ADB:
The Project Officer (contact details listed against each project). When emailing, also copy to: disclosure@adb.org. You may also contact the ADB Public Information and Disclosure Unit  (See: http://www.adb.org/Disclosure/contact.asp).

Project Cycle (ADB website for complete project cycle)

ADB’s Project Cycle

Project Identification/Preparation: ADB often provides grants called project/program preparatory technical assistance (PPTA) to help the government identify and prepare feasible projects. The summary is made available in the form of a project profile or project information document (PID).

During the early stage of the PPTA, an initial poverty and social assessment is conducted to identify people who may be beneficially or adversely affected. A technical assistance report is prepared as a recommendation for ADB to finance a technical assistance project.

If the project requires resettlement of people or might adversely impact the environment, or indigenous peoples, certain safeguard assessments are prepared during this stage. The results of these assessments are to be made available to affected people.  For more information on community rights under ADB safeguards and international best practices, see comparative matrices of MDB safeguard policies on BIC's website.

Project Examination: ADB examines project feasibility, first through a fact-finding mission and then through an appraisal mission. The fact-finding mission examines the project's technical, financial, economic, environmental, marketing, and management aspects and potential social impact. Detailed project risks and sensitivity analyses are carried out to assess viability of the proposed project and loan terms are discussed.

Following this, the Appraisal Mission conducts further field study, analyses and consultation, as required. The mission then prepares a loan proposal report and draws up a draft loan agreement for negotiation. After appraisal, the draft loan agreement and draft project proposal is submitted for review. Government is then called for negotiation with ADB. After negotiations with the government, the loan proposal is submitted to Board of Directors for Approval, through its Report and Recommendation of the President (RRP).

After Board approval, the document is sent to the borrowing country's Government for cabinet authorization following which the loan agreement is signed. The loan takes effect once certain conditions are met. The requirements and deadline for loan effectiveness are stipulated in the loan agreement.

ADB-assisted projects are implemented by the executing agency according to the agreed schedule and procedures as detailed out in the project administration memorandum. Implementation time generally ranges from two to five years but depends on the type and nature of the project. ADB's review missions assess the progress of project implementation by visiting it at least twice a year throughout the implementation period.

If a project has significant environmental or social issues, ADB will often require the borrower to submit regular monitoring reports, in addition to progress reports. Information on the project's implementation progress and status of development objectives and loan covenants is added to the project information document during this implementation phase.

For more information, refer to: Unpacking the ADB: A Guide to Understanding the Asian Development Bank

Commonly Used BOp Acronyms

TA:  Technical Assistance

AOTA: Advisory and Operational Technical Assistance Loans

PPTA: Project Preparatory Technical Assistance

RETA: Regional Technical Assistance

N:  New Project

EIA:   Environmental Impact Assessment

IEE:   Initial Environmental Examination

ADB Environmental Categorization

Category “A” Projects: Projects having severe environmental impacts are categorized as “A”. An EIA is required.

Category “B” Projects: Projects having some adverse environmental impacts are categorized as “B”. An IEE is required in order to determine whether an EIA also needs to be done. If not, then the IEE is the final environment document.

Category “C” Projects: Projects havening no environmental impacts are categorized as “C”. No IEE or EIA is required but environmental considerations are still reviewed.

Category “F1” Projects: Projects involving a financial intermediary or equity investment are classified as “F1”. The financial intermediary will apply an environmental management system if environmental impacts are expected.

Current Business Opportunities for Sri Lanka

Education /Education Sector Development
Project Name	(R) Education for Knowledge Society Project
Project Type and ID	Grant: SRI 39293-02
Executing Agency	Ministry of Education
TA Amount (US$ '000)	15,000.00
Date of First Listing	16 October 2007
Objectives and Scope	Within a broad sector investment framework, ESDP will help the Government develop an education system that provides a variety of learning options at the end of each cycle and equip all children with knowledge and skills that enable them to compete in and benefit from the knowledge society and economy, at each exit point of the system. ESDP will support subprojects aiming at upgrading quality of secondary education, expanding provision of non-degree private tertiary education, and expanding the use of Information and Communication Technologies (ICT) for learning. Within the subproject of secondary education, ESDP will support integration of HIV/AIDS education in the school curriculum, pre-service and in-service teacher training and teaching learning activities in secondary schools.
Environmental Assessment	Not Required
Project Processing Stage	Approved by the Bank : 26 November 2007
Project Officer	Ayako Inagaki (632-6582), Agriculture, Natural Resources and Social Services Div, SARD; ainagaki@adb.org

Education /Education Sector Development
Project Name	(R) Education for Knowledge Society Project
Project Type and ID	LOAN: SRI 39293-01
Executing Agency	Ministry of Education
TA Amount (US$ million)	65.00
Date of First Listing	4 September 2007
Objectives and Scope	The objective of the project is to improve quality, relevance, management, effectiveness and equity of access to secondary and tertiary education and training programs, in particular, in rural and disadvantaged locations. The Project components are: (i) to increase equity of access to education through secondary schools upgrading and scholarship program; (ii) to enhance quality and relevance of education through competency-based education (CBE) curriculum development, competency standards for CBE, in-service teacher training, development of center of excellent in English Language teaching, upgrading of Sri Lanka Institute for Advanced Technological Education, fund for innovative Information and Communication Technology for learning; (iii) to improve policy, governance, and service delivery through high level policy coordination and partnerships mechanism, integrated management information system, career guidance, and social marketing.
Environmental Assessment	C
Project Processing Stage	Approved by the Bank : 26 November 2007
Project Officer	Ayako Inagaki (632-6582), Agriculture, Natural Resources and Social Services Div, SARD; ainagaki@adb.org

Energy /Renewable Energy
Project Name	(R) Building the Capacity of Sustainable Energy Authority
Project Type and ID	AOTA: SRI 41662-01
Executing Agency	Ministry of Power and Energy (MOPE)
TA Amount (US$ ‘000)	600.00
Date of First Listing	15 October 2007
Objectives and Scope	The purpose of the TA is to strengthen the institutional capacity and technical capability of SEA to facilitate and coordinate the Government’s efforts to promote the sustainable development of renewable energy sources. The outcome of the TA will be building within SEA adequate capacity and technical knowledge of (i) managing a portfolio of renewable energy projects including identification, assessment, documentation and inventorying of all renewable energy resources in the country and providing quality information to project developers and (ii) creating an enabling environment to encourage investments to significantly enhance renewable energy generation through development of relevant policies, integrated resource planning and financial incentives in various economic sectors.
Environmental Assessment
Project Processing Stage	Approved by the Bank : 12 December 2007
Project Officer	Tomoyuki Kimura (632-6611), Energy Division, SARD; tkimura@adb.org

Industry & Trade /Small & Medium Scale Enterprises
Project Name	(R) Small and Medium Enterprise Regional Development Project
Project Type and ID	LOAN: SRI 36117-01
Executing Agency	Ministry of Finance and Planning
TA Amount (US$ million)	50.00
Date of First Listing	3 October 2007
Objectives and Scope	By providing access to medium-to long-term funds, a critical market gap, and encouraging the PCBs to proactively seek financing opportunities among regional SMEs, the Small and Medium Enterprise Regional Development Project (SMERDP) seeks to redress existing regional imbalances and enhance the growth and development of regional SMEs. Simultaneously, access to business development services can foster linkages to appropriate technology and target markets. Access to scale economies, equity, and skills can be facilitated through the development of SME value chain clusters.
Environmental Assessment	FI
Project Processing Stage	Approved by the Bank : 6 December 2007
Project Officer	Syed Ali-Mumtaz H. Shah (632-6290), Governance, Finance and Trade Division, SARD; sshah@adb.org

Water Supply, Sanitation & Waste Management /Water Supply & Sanitation
Project Name	(N) Institutional Strengthening for Decentralized Service Delivery in the Water Sector
Project Type and ID	AOTA: SRI 41679-01
Executing Agency	National Water Supply and Drainage Board
TA Amount (US$ ‘000)	600.00
Date of First Listing	17 December 2007
Objectives and Scope	The TA will support the Government's and NWSDB's efforts to improve its management, especially financial management and regional operations within the context of the recent sector reforms and policies, including the establishment of a public utilities commission and its operationalization. Consequently, the impact of the TA has been defined to be 'Improved Operational Efficiency and Management Performance in the Water Sector'. Its outcomes are (i) 'NWSDB's Service Delivery Functions Decentralized' and (ii) 'Inclusive Independent Regulation Introduced'.
Environmental Assessment
Project Processing Stage	Fact-Finding Mission Completed : 30 November 2007
Project Officer	Tatiana Gallego-Lizon (632-6416); Urban Development Division, SARD; tgallegolizon@adb.org

The Bank Information Center (BIC) partners with civil society in developing and transition countries to influence the World Bank and other international financial institutions (IFIs) to promote social and economic justice and ecological sustainability. BIC is an independent, non-profit, non-governmental organization that advocates for the protection of rights, participation, transparency, and public accountability in the governance and operations of the World Bank, regional development banks, and IMF. For more information about BIC, see www.bicusa.org.

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