Cablegate: Sri Lanka - Advancing Us Efforts On Water and Sanitation

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FM AMEMBASSY COLOMBO
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RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE

UNCLAS SECTION 01 OF 02 COLOMBO 001595

SIPDIS

SIPDIS

STATE FOR OES/PCI AARON SALZBERG AND TEGAN BLAINE
USAID FOR TIM MILLER AND D DEELY

E.O 12958: N/A
TAGS: SENV CE
SUBJECT: SRI LANKA - ADVANCING US EFFORTS ON WATER AND SANITATION

REFERENCE: A) STATE 128229 B) STATE 128599

COLOMBO 00001595 001.2 OF 002

1. SUMMARY: A high percentage of Sri Lanka's rural population does
not have access to safe drinking water and proper sanitation. It is
estimated that over 40 percent of the rural population, or more than
6 million people, are deprived of these basic facilities.
Recognizing the scope of the issue, the Government of Sri Lanka
(GSL) has formulated a national policy for rural water and
sanitization sector to: (1) Provide safe drinking water to 85
percent of the population by 2010 and 100 percent by 2025; and (2)
Provide access to adequate sanitation for 70 percent of the
population by 2010 and 100 percent by 2025. However, the GSL does
not have the financial resources to achieve these objectives within
the stipulated time frame. End Summary.

2. According to Piyasena Wellakkage, Director General, Rural Water
Supply and Sanitation Division of the Ministry of Urban Development
and Water Supply (MUDWS), although there have been serious attempts
to address the problems of the unavailability of water supply and
sanitation facilities, successive governments have concentrated
mainly in urban areas. Rural areas were largely neglected. The
water schemes in rural areas, which have been implemented by local
authorities as well as NGOs, are devoid of proper planning. Per
Wellakkage, the rural water schemes do not provide for operation and
maintenance of the schemes and lack active community participation.
As a result, less than one percent of such schemes previously
initiated still operate.

3. In 1992, the Rural Water Supply and Sanitation Division of the
MUDWS initiated a new approach to water supply and sanitation
projects by involving communities at all stages of the project,
including design, implementation, labor, hygiene education and
management. This methodology has proven successful.

4. All of the focal areas for possible USG engagement identified in
reftels are important in the context of the water supply and
sanitation sector in Sri Lanka. Priority areas for USG activities
could be Governance, Infrastructure Investment, and Mobilization of
Domestic Resources.

GOVERNANCE:

5. The GSL wants to increase institutional capacity to strengthen
the impact and sustainability of water supply and sanitation
projects. The Minister of Urban Development and Water Supply, in a
recent media report, stressed the need for more focus on safe
drinking water for rural areas due to the high percentage of the
population lacking this basic facility. The World Bank funded a
pilot Community Water Supply and Sanitation Project (CWSSP) under
the MUDWS from 1992 to 1998 to provide safe drinking water and
sanitation facilities to rural communities in three districts of the
country. This project was launched with participation of Community
Based Organizations (CBOs) and contribution of capital cost (mainly
through labor) by the beneficiaries. Under this project, the CBOs
played a key role in identifying needs, planning, design,
constructing and ultimately owning the facilities, and taking
responsibility for operating and maintaining the facilities.

6. This CWSSP project has been favorably reviewed by the World Bank
and was ranked highest among similar projects implemented worldwide.
The success of this project resulted in several new community-based
WSS projects, including a second CWSSP funded by the World Bank and
the Japan Bank for International Cooperation (JBIC). Under the
second CWSSP, MUDWS delegated to local government authorities the
responsibility for assisting and coordinating CWSSP activities with
the CBOs.

7. A criticism of this reportedly successful project is that local
governments have not performed their responsibilities in the desired
manner due to lack of competent personnel and indifferent attitude,
as no direct benefits accrue to the local authorities due to the
manner in which the CBOs are set up. (All procurement and contracts
are decided by CBOs and not by the local authorities.)

8. To address these shortcomings, the MUDWS is considering
establishing an independent agency free of political involvement in
order to develop the established CBOs and achieve national status.
This agency would have responsibility for assisting and coordinating
CBO activities nationwide. Capital expenditure, capacity building,
rehabilitation of some water supply and sanitation schemes, action
oriented training of CBOs, IT software skills development and
providing computers to CBOs, are some of the areas which the new
agency will need to address in order to successfully develop the
CBOs. In addition, the MUDWS is focusing on providing a revolving
loan fund for sanitation projects, identifying selected CBOs in
areas most in need of sanitation facilities. Technical and
financial assistance to set up this fund will also be valuable.

INFRASTRUCTURE INVESTMENT:

COLOMBO 00001595 002.4 OF 002

9. The positive developments resulting from the two CWSSP projects
warrant replication of these projects in districts that do not have
safe drinking water and sanitation facilities (including the
northeast, where Sri Lanka's ethnic conflict is centered). This
would provide additional communities with safe drinking water,
sanitation, and protection against the water-borne diseases that are
the primary cause of poor health in rural communities.

MOBILIZATION OF DOMESTIC RESOURCES:

10. Private sector involvement in water supply and sanitation
projects has been negligible. Private sector investment should
leverage water supply and sanitation activities to complement the
activities of the GSL and donors. The expertise and commercial
approach of the private sector could assist in promoting sound
utility management and cost recovery, and will assist CBOs in
managing their schemes effectively.

11. Current US involvement in the water supply and sanitation sector
includes long-running USAID programs and post-tsunami USAID
activities to improve water supply and distribution to
tsunami-affected communities in the eastern part of the country. An

SIPDIS
assessment of water from existing reservoirs and groundwater sources
has been completed in the Pottuvil/Panama area of Ampara District.
USAID contractor CH2M Hill concluded that groundwater is the best
water supply choice for the area as it is more sustainable, higher
quality, would lower the cost of water treatment, and avoid the need
to transmit water long distances from reservoirs to population
centers. The project will also address sanitation needs of the
targeted communities through a public health education program that
includes discouraging people from using water from shallow polluted
wells. A budget of approximately $4 million has been allocated for
the project.

12. Another USAID regional project with activities in water supply
and sanitation is Environmental Cooperation-Asia (ECO-Asia).
ECO-Asia addresses improving access to water and sanitation, and
environmental governance. One pilot site will be in Nuwara Eliya,
where ECO-Asia will develop and demonstrate sustainable sanitation
systems through a participatory process for identifying priority
sanitation challenges, preparing action plans, identifying
appropriate technology and system designs and financing options and
carrying out awareness. This will involve the Local Authority,
NGOs/CBOs, and the community as stakeholders. Another pilot project
will be implemented with the National Water Supply and Drainage
Board to establish a public private community partnership to deliver
water to urban poor.

13. Comment: The water supply and sanitation sector is primarily
under government purview, with the Ministry of Urban Development and
Water Supply being the focal point for all rural water and
sanitation activities, including donor funded projects. The GSL is
committed to providing safe water and sanitation for the population.
However, lack of resources inhibits the GSL's ability to achieve
WSS objectives set out in its national policy. There is wide scope
for US assistance and the Director General and National Project
Director of the Ministry of Urban Development and Water Supply is
enthusiastic about the possibility of receiving US support in this
sector. End Comment.

BLAKE

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