Local Government Enhancement Sector Project - Additional Financing (ADB-42459-014)

  • Sri Lanka
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Sep 27, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
  • Agriculture and Forestry
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 60.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS Jun 26, 2020

Disclosed by Bank Nov 9, 2016

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.


The additional financing will scale up the project that is performing well, by supporting water supply systems improvement in chronic kidney disease-affected areas, and improving local infrastructure and basic services delivery and advancing local government policy reform and capacity strengthening in Pradeshiya Sabhas not supported previously.


Sri Lanka has three types of local authorities under nine provincial councils: (i) municipal councils constituted in cities and large towns, (ii) urban councils for less urbanized areas, and (iii) Pradeshiya Sabhas (local authorities) in peri-urban and rural areas. To respond to the need to improve basic infrastructure and services provided by local authorities, the Asian Development Bank (ADB) approved the Local Government Infrastructure Improvement Project in 2005. The infrastructure improvement project supported subprojects for water supply, roads, drainage and sewerage, and other municipal facilities such as public libraries, health care centers, and office buildings, under a bottom up, demand-driven approach that follows the priorities set out by local authorities, and improves the financial management capacity of these authorities. One limitation of the infrastructure improvement project was that financial constraints prevented participation by poor and financially weak Pradeshiya Sabhas, which thus were unable to benefit. The current project, which was approved in 2011, expanded the infrastructure improvement project's interventions by targeting poorer Pradeshiya Sabhas to improve basic service delivery in less-developed areas in seven of the nine provinces (excluding the Northern and Eastern provinces). The subprojects selected under the current project reflect the needs of the local people and are implemented by local authorities, who will remain responsible for operation and maintenance (O&M;) of the assets that are being built.


Local authorities' capacity financially and technically strengthened in less-developed areas of seven provinces in Sri Lanka (defined by project).


All consultants will be recruited according to ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). An estimated 711 person-months (24 international, 687 national) of consulting services are required to (i) facilitate project management and implementation, (ii) carry out feasibility studies, detailed engineering designs, and construction supervision, and (iii) undertake validation and entry of local authorities' data with respect to tax and licenses. Two packages of consulting firms (36 person months) will be engaged using the quality- and cost-based selection (QCBS) method with a standard quality:cost ratio of 80:20 under the current loan and to be extended to Additional Financing. Another 5 Packages (4 DSC and 1 PMC, 675 person-months including 651 national and 24 international) will be recruited through single source selection (SSS) method, since the additional financing project is continuing with the original project activities in non-stop nature and the present consultants has satisfactory performance. A few individual consultants (114 person months) will also be engaged to support project management.


All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2015, as amended from time to time). International competitive bidding (ICB) procedures will be used for civil works contracts estimated to cost $ 15 million or more, and supply contracts valued at $2 million or higher. National competitive bidding (NCB) procedures will be used for civil works contracts worth less than $15 million, and supply contracts worth less than $2 million. Shopping will be used for contracts for procurement of works and equipment worth less than $100,000. All contracts will be less than the above threshold for ICB. No contracts under the project are expected to be above the NCB threshold. Post review (sampling) will apply to contracts for works less than $2.0 million and those for goods less than $0.4 million

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Loan 3431-SRI: Local Government Enhancement Sector Project - Additional Financing
Concessional ordinary capital resources / Asian Development Fund US$ 60.00 million

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.


The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main


Responsible ADB Officer Huang, Jingmin
Responsible ADB Department South Asia Department
Responsible ADB Division Sri Lanka Resident Mission
Executing Agencies Ministry of Provincial Councils & Local Government
330 Union Place, Colombo 2
Sri Lanka

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