Sri Lanka. Supervision report. Main report and appendices

Transcription

1 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) Supervision report Main report and appendices Mission Dates: January 2016 Document Date: 23-Feb 2016 Project No Report No: 4026-LK Asia and the Pacific Region Programme Management Department

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3 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) Contents Abbreviations and acronyms Error! Bookmark not defined. A. Introduction 1 B. Overall assessment of project implementation 1 C. Outputs and outcomes 3 D. Project implementation progress 9 E. Fiduciary aspects 11 F. Sustainability 16 G. Other 17 H. Conclusion 17 i

4 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) Appendices Appendix 1: Summary of project status and ratings 19 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs 21 Appendix 3: Summary of key actions to be taken within agreed timeframes 45 Appendix 4: Physical progress measured against AWP&B, including RIMS indicators 49 Appendix 5: Financial: Actual financial performance by financier; by component and disbursements by category 61 Appendix 6: Compliance with legal covenants: Status of implementation 63 Appendix 7: Knowledge management: Learning and Innovation 65 ii

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7 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) Supervision report - Mission dates: January 2016 A. Introduction 1 1. The Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka project was designed to achieve the development goal of rehabilitating tsunami-affected ecosystems in Sri Lanka to provide full ecosystem services including adaptation against extreme climate events. It was approved by GEF in December 2007, for a total grant of USD 6.92 million, using the IFAD-financed PTCRRMP as the baseline project. Although the Grant Agreement was signed on 23 July 2009, the project only became operational following the amendment to the Agreement in April 2012, reflecting a change in the Project Lead Agency (LPA) and related arrangements, and as a result of the Government's restructuring of central ministries; the project completion date is 31 December In 2015, the Project Lead Agency changed from the Ministry of Defence and Urban Development to the Ministry of Environment The joint IFAD-GoSL supervision mission took place from 12 to 22 January 2016, serving as the last supervision before project completion. The objectives of the mission were to: i) assess the progress made in accelerating the project and in its implementation (following recommendations of the October 2014 SM and against the 2015 AWPB/PP), especially in view of the impending completion date; (ii) identify actual and potential/emerging operational problems and challenges; (iii) propose solutions, corrective measures and provide recommendations for improved implementation, including review of 2016 AWPB/PP priorities; and (iv) provide additional guidance to the PMU in preparation for project completion. 3. The mission spent five days in the field with the PMU team, holding consultations with project stakeholders (public representatives, beneficiaries, communities, service providers and other partners) in all three districts covered by the project. In Colombo, the supervision mission met with the Secretary for Environment and other officials of the Ministry of Environment. A pre-wrap was held on 19 January with the PMU team in Colombo and the final wrap-up meeting was held on 21 January, chaired by the Director General, CCD. The IFAD Mission would like to express its gratitude to the Government of Sri Lanka, the GEF project PMU, project beneficiaries and other partners, for their cooperation and support during the mission. This Aide-Memoire reflects the main mission findings and recommendations, duly endorsed in the wrap-up meeting. B. Overall assessment of project implementation 4. Overall implementation progress (moderately satisfactory, 4). With less than one year to completion (31 December 2016), the project has so far achieved 64% financial progress (actual disbursements and commitments) over an effectively operational period of three years (the project had faced administrative delays including deferred project start and multiple changes to the lead agency) and is now challenged to disburse and commit the remaining financing of approximately USD 2.4 million in the limited time remaining. 5. The physical progress is at a corresponding similar level (approximately 70%). Although the mission recognizes that the scope of activities that has taken place in the shortened operational lifetime of the project is considerable, a stronger effort on the part of the PMU is needed to ensure that the interventions yield quality results before the project completion date, and that exit strategies are in place and implemented. 6. As a project designed for, and focused primarily on post-tsunami restoration and sustainable environment/ ecosystem management, the mission recognises the challenge posed in clearly defining, identifying and articulating the concrete measures and interventions that the nature of this 1 Mission composition: Mr Hubert Boirard, Country Programme Manager, Mission Leader; Mr Bodhi Wanniarchchi, Livelihoods Specialist; Ms Tamara Lampe, Institutional Specialist; Mr Shankar Achuthan Kutty, Procurement Specialist; and Ms Anta Sow, Financial Management Specialist 2 The mission wishes to remind the Government that a formal request to amend the Grant Agreement to reflect the change in LPA is required. 1

8 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) project requires; this is compounded further by the fact that the project only became operational eight years following the tsunami event. The mission therefore accepts that the context (physical and institutional) has evolved, and that there is difficulty in directly consigning intervention/ activity areas to the four components as they were originally designed. Subsequently, there has been flexibility applied in assessing the type, scope, appropriateness and responsiveness of the activities against the original design intentions. Although the complementary nature (and crossover) of the activities across components is acknowledged, the mission does opinion that ahead of completion, the project must better organize and consolidate the results and improve its reporting. 7. As the project nears completion, noteworthy achievements centre on the establishment of the participatory and community co-management arrangements and the joint (public) institutional collaboration that has been on-going; additional measures are however required to strengthen the sustainability of the mechanisms (discussed in following sections). As well, the project has made significant contribution to building a solid knowledge base and repository on Sri Lanka s coastal zones and the three main coastal ecosystems (lagoons; mangroves; and sand dunes); various surveys and studies have been completed including: three baseline studies of the flora, fauna and socio-economic situation of communities in the project area and around the key coastal ecosystems; seven ecological profiles; a study on invasive aquatic species; and vulnerability mapping in Trincomalee district. In addition, the project has facilitated three undergraduate research efforts on the diversity and economic potentials of aquatic resources, and other studies/ surveys are on-going, such as development of an eco-tourism development plan. In general, the mission observed that mapping of key ecosystem areas and project interventions has been systematically undertaken with good use of mapping software. 8. Ecosystem protection and restoration has also been a key feature across the three districts. Today 5828 ha of lagoons and mangroves have been demarcated, with a remaining 70% of the 320 km of demarcation in Batticaloa lagoon still to be completed and 71 ha of demarcation in Panama lagoon to commence. In addition, demarcation is on-going for 567 ha (29.5 km) of coastal sand dunes. As well, 157 ha of coastal green belts have been established. Within these areas, so-called special management areas (SMAs) have been defined for co-management with communities. 9. Finally, the project has also invested efforts to support the livelihoods diversification of 1019 vulnerable households in the project area with technical training on income-generating activities and business training, and has as well facilitated linkages to markets, and household access to financial services 66% of the beneficiaries have opened bank accounts, 37% have now submitted loan applications and 18% have received bank credit which are invested in their small and micro businesses (enterprise). 10. However, whilst there have been some credible results, there remain fundamental implementation and management issues that require a much more concerted effort and close monitoring in order for the project to deliver on its objectives. In light of the approaching completion date, the PMU must now focus on: (i) finalizing all pending (infrastructure) works and services, and ensuring their timely payment; (ii) completing all planned ecosystem protection, demarcation and restoration activities; (iii) establishing and implementing the exit strategies for the various components and types of activities supported by the project (identifying the mechanisms for transfer of responsibilities, and to whom (institutions, communities, etc.); (iv) strengthening policy advocacy and the institutionalisation of the innovative approaches and mechanisms that have been developed (as part of the exit strategy, the facilitating policy environment, legislation and Acts need to be firmly established as it will have consequence on sustainability); and (v) outcome and impact monitoring and evaluation, including documenting lessons learned and identifying credible opportunities for scalingup. In addition, communication and knowledge management products need to be upgraded. 2

9 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) Supervision report - Mission dates: January 2016 C. Outputs and outcomes Component 1: development and demonstration of best practices for effective restoration and sustainable management of key coastal ecosystems, with integration of adaptation to climate change vulnerabilities (satisfactory, 5). 11. Three key coastal ecosystems, namely sand dunes, mangroves and lagoons have been identified as priorities; under this component, their protection and restoration is the basis for the activities pursued. In Ampara, this covers Komari Lagoon Special Management Area (SMA), and the Panama sand dune SMA extending up to Pothuwil and the surrounding coastal zone. In Batticoloa, Kallady beach area, Nasivanthive Island and Kayankerni lagoon, associated mangrove and salt marsh ecosystems including the Vakarai SMA are the main coastal zones that have been targeted for restoration. In Trincomalee, Pigeon Island SMA is to be restored. 12. In summary, across the three districts, 5828 ha of lagoons and mangroves have been demarcated and 157 ha of coastal green belts have been established. On-going but yet to be completed are the 320 km of demarcation in Batticaloa lagoon (30% completed) and 567 (29.5 km) of coastal sand dune demarcations. In Panama lagoon, 71 ha of demarcations has been earmarked, though has not yet started. 13. An overview of outputs achieved since the last supervision mission in October 2014 are summarised below. 14. Baseline studies for flora and fauna. In addition to the three baseline studies on flora and fauna, and the socio-economic situation of the communities (completed for the three key coastal ecosystems in previous years), an ecological profile for Thambalagamuwa bay and six other coastal lagoons (Pudavaikkattu, Irrankkandy, Sampalthive, Komari, Panama, and Pottuvil) were established, which could serve as a source for future development initiatives. In addition, a study on the invasive aquatic species in Pottuvil lagoon, as recommended by the 2014 mission, has been completed. Also the project has facilitated three undergraduate research efforts on the diversity and economic potentials of aquatic resources in Tricomalee district. In Ampara district, establishment of an ecotourism development plan in Pottuvil lagoon has been contracted, though the Mission notes that the three-month contract has expired (on 14 January 2016), with only 50% of the work completed. The mission recommends that the contract be extended on a no-cost basis for 2 months to complete the work by mid-march. 15. Effective community-led restoration of key ecosystems. Removal of sand and debris of the Komari lagoon (driven by the Tsunami) continued through the Department of Irrigation and with the participation of the community for improving the quality of the lagoon. This work is expected to be completed in mid-2016, and will benefit 166 fishing families. In complement to the efforts to protect the sand dune ecosystem, the project has also initiated the establishment of a Research and Information centre in Arugam bay (Pottuvil); whilst works have not started, the site has been identified. The mission reminds the project that all infrastructure works must be completed by October at the latest. 16. In addition, the following protection measures have been completed: the Kottukal lagoon and the adjacent mangroves have been surveyed and demarcated with GPS coordinates so as to declare the area as a conservation ecosystem; in Trincomalee, 500 ha of mangrove area surrounding the Sampalthivu lagoon have also been surveyed and demarcated; and in Batticaloa, with the patronage of the District Secretary, the project has initiated the demarcation of Batticaloa lagoon with the intention of protecting the lagoon from detrimental human interventions - this covers a length of approximately 320 km with 12,000 pillars (about 30% of the work has been completed and the rest is earmarked for 2016). Finally, in the upper lagoon in Kinniya, four streams have been completed in order to minimize climate change impact. In terms of activity/ works still to be completed, in addition to the Batticaloa lagoon, the demarcation of Irakkandy lagoon (Trincomalee) is projected for Finally, on a pilot basis, and in order to ascertain the most effective means of restoration of key 3

10 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) ecosystems, a mangrove-learning centre has been established in Nasivanthivu, Batticaloa, run by the Department of Forestry. 17. Other activities. The project has also supported the construction of an additional 55 toilet units in order to reduce fecal pollution in the Panichankerny lagoon and wetlands, implicating 120 beneficiary households, including women-headed families in Vakarai; 80% of the construction is completed. With the intention of reducing the destruction of mangroves for firewood purposes, 1000 energy efficient stoves have been distributed mainly to women-headed vulnerable families. An outcome survey conducted by the M&E officer estimated a 25% of reduction of firewood consumption. As well, with the intention of enhancing the tourism industry and accessibility of the fishermen, six beach access roads were rehabilitated in Arugam bay during the reporting period, for a total of 12 beach access roads and to the benefit of small-scale hoteliers and 200 fisher families. 18. Vulnerability mapping of east coast to prioritize areas for adaptation. Disaster vulnerability mapping was undertaken in three identified villages (namely Thennamaravady, Senthoor and Irakkandy in Trincomalee district) in collaboration with the Disaster Management Centre (DMC); the draft maps are being finalized for digitization, to be completed in early Based on recommendations of the Hazard Vulnerability and Capacity Assessment (HVCA), the project has supported Thennamaravady village with the construction of a flood safety building. It has been noted that there are about 150 families (representing a population of approximately 500 people) living in the village, who were resettled into temporary shelters in 2008 after 24 years of displacement; since then, their conditions have worsened and the community is highly vulnerable to floods and other hazards. It is projected that the flood safety building will be equipped with hazard-related tools and accessories, and will be handed over to the community by March The mission also notes that the community while appreciative of the project interventions, appealed for assistance to develop their houses; in response to this, the Mission recommends that the PMU facilitate the linkages with the appropriate government agencies, though also recommends for the project to explore extending its livelihood development programme to this community (whose current income sources are limited to paddy cultivation and small-scale poultry). 19. Stakeholder engagement. Forty-two stakeholder meetings have been conducted in all three districts with the participation of Marine Environment Protection Authority, Disaster Management Centre, Central Environment Authority, Department of Wild Life Conservation, Department of Fisheries and Department of Forestry during the review period. Selected key officers from these agencies headed by the District Secretary, Batticaloa were taken on an exposure visit to Thailand in July 2015, organised by the Asian Institute of Technology, Thailand. 20. Community awareness programmes conducted during the review period include: (i) sustainable fishery management to fishing societies in Trincomalee; (ii) sustainable management of coral resources for the Pigeon island management committee; (iii) social conflicts and environment issues caused by the open toileting practices in the lagoon borders in Vakarai (to lagoon-border families); and (iv) an exposure visit for community forum members who are involved in disaster management activities related to the project in Nasivanthivu and those who are involved in sustainable restoration of mangrove resources of Sathurukondan. 21. Minimizing climate change impact through improvement of ecosystem quality. A Thona (natural waterway/canal) in Vakarai has been rehabilitated with a gabion wall, and which saved 28 households from the effects of flooding, and allowed for the retrieval of paddy fields in the vicinity. In partnership with the Urban Council of Kinnya (Tricomalee district), the Project has invested in a fully equipped compost yard; construction which commenced in 2014 has been completed and machinery installed. Whilst trial production commenced, it has yet to operate as a commercial venture as intended. In the meantime, the Project has initiated a similar venture in partnership with Kuchchiveli local council. It is important that both ventures operate as commercial enterprises by resolving the current solid waste accumulation problem and selling the compost to the community for use in agricultural activities. The Mission stresses that the district project team closely monitor and guide the 4

11 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) Supervision report - Mission dates: January 2016 Kinnya project operations in order for the desired results to be achieved. In another initiative, the Project raised awareness on solid waste management best practices to the local community residing along the natural canals rehabilitated in 2014 In Trincomalee district, and which has improved the quality of ecosystems by reduced solid waste accumulation. These two initiative together benefits over 9000 families in the vicinity. 22. Best practice and policy guidelines on practical restoration and conservation management of eco-systems. An important intervention area has been the project s work and promotion of a revised National Coastal Zone and Coastal Resource Management Plan (NCZ&CRMP). The revised National Plan consists of five technical clusters such as shoreline management, conservation of coastal habitats, coastal pollution control, special management areas and regulatory mechanism; this was compiled and finalized in consultation with several public institutions along the coastal districts of Sri Lanka. It is expected that the NCZ&CRMP will be submitted and passed by a Parliamentary Act, scheduled for March Other guidelines developed include the integrated solid waste management reports. 23. With the approaching completion date, the following need to be urgently addressed: (i) documentation of conservation practices that have so far been implemented, to contribute to a central data base in the CC&CRMD, and which will facilitate policy dialogue; (ii) full establishment of the district level information centres, ensuring they are fully equipped, operational and accessible to a wide population; (iii) the commercial application of project initiatives such as solid waste management systems in Trincomalee for better economic returns; and (iv) strengthening of community awareness programmes to create an minimum level of awareness about the linkages and dependency between conservation and livelihood. The mission as well reminds the project that all pending works (infrastructure) must be completed before the onset of the rainy season (by October 2016). Agreed action Responsibility Agreed date Take appropriate action to ensure the NCZ&CRMP is Ministry of Environment 30 March 2016 submitted and passed by Parliament Act Include vulnerable Thennamaravady village in the PMU and SP Immediate project livelihood development programme Complete construction and equipping of information District Coordinators 31 May 2016 centres in Batticaloa and Ampara Develop an Action Plan to commercially operate the Kinnya solid waste management system, and replicate District Coordinator (Trinco) 29 February 2016 the system in Kuchchively Establishment of a Research and Information centre in Arugam bay PMU 30 September 2016 Removal of sand and debris of the Komari lagoon PMU 15 June 2016 All demarcation works to be completed by April (with the exception of Batticaloa lagoon for July) PMU 30 April 2016 (July 2016) Kottukal lagoon declared as a conservation area with PMU 30 April 2016 official documentation available All civil works (toilet units, access roads) except for PMU 31 July 2016 Pigeon Island Information Centre to be completed Finalize and disseminate the digitization of the PMU 31 March 2016 vulnerability maps All trainings and exposure visits to be completed by end August PMU 31 August 2016 Component 2: mainstreaming effective ecosystem restoration and sustainable management, including integrated options to address for climate change vulnerabilities, into the planning and implementation of post-tsunami reconstruction (moderately satisfactory, 4). 24. The project at its initial stage, facilitated the amendment of the Coast Conservation Act and developed a number of regulations under the amended Act. As well, the project has actively promoted the revision of the NCZ&CRMP, to serve as the key document to govern coastal habitat management and towards influencing enabling policy. The process of public consultation sessions conducted while 5

12 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) revising the NCZ&CRMP, have been innovative, improving participation of the relevant stakeholders, and most notably local communities, at the decision making level. 25. Under this component, the last Mission recommended that an inventory of traditional practices for all lagoons in the project could provide information on sustainable traditional management practices and governance mechanisms. Effective co-management must begin with recognition and understanding of traditional management systems that can then be integrated into formal management practices to ensure coexistence through mutual cooperation and education. Responding to this, the Project contracted an NGO in December 2014 to develop a lagoon management committee for Kokilai lagoon in Trincomalee district. The project was completed in December 2015 and the outcome so far has been gazetting of the Fisheries Management Area. An Act by the parliament with co-governance regulations is needed to empower the lagoon fishery management; the Mission stresses that this should be achieved by March This initiative would benefit 1619 fishing families including 292 women-headed families. A similar intervention has taken place in Batticaloa (Panichenkerny lagoon), contracted to the same NGO in mid Formation of 10 lagoon management committees and co-management plans with the participation of stakeholders and the community have been achieved so far. At completion, the programme will benefit nearly 1400 fishing households. The Mission noted that the contract for the development of the Kokilai lagoon management committee has expired, though the Parliamentary Act is yet to take place, warranting PMU direct involvement. 26. Other activities during the review period under this component include: (i) an exposure visit for the members of the disaster management committee in Nasivanthivu to Sathurukondan wetland forum in order to share the lessons learned (Batticaloa); (ii) an initiative to form a bio-diversity task force in Ampara, including key stakeholders at the operational level; (iii) updating vulnerable areas mapping and the digitization of these maps; (iv) facilitating the District Environmental Law Enforcement Committees (DELEC) (three in Trincomalee and one in Batticaloa), chaired by the District Secretary; (v) an ecosystem and socio-economic status survey, with the results documented in the NCZ&CRMP; (vi) a stakeholder forum representing all relevant local councils on the importance of conserving pigeon island and the adjacent resources; and (vii) several community coordinating forums on co-management (boat societies, hoteliers and lagoon management committees). 27. These initiatives should serve to strengthen the link between stakeholders and the community on co-management, and replicate such co-management models for ecosystem restoration. Therefore, knowledge generation, documentation and dissemination in relation to mainstreaming lessons from ecosystem restoration to climate adaptation become an important and vital aspect. Agreed action Responsibility Agreed date Submit and ensure a Parliament Act is passed on the PMU 31 March 2016 co-governance regulations for empowering lagoon fishery management in Kokilai lagoon and other areas identified by the project Streamline the bio-diversity task force conceptualised in PMU/District Coordinator 30 April 2016 Ampara and replicate in other districts if feasible (Ampara) Consolidate and further disseminate the lessons and knowledge products on community co-management in ecosystem restoration/ protection restoration PMU/District Coordinators Continuous Component 3: empowerment of coastal communities for local natural resources management, enhancing sustainable livelihoods and adaptation to climate change vulnerabilities (moderately satisfactory, 4). 28. To create an enabling environment for community co-management of local natural resources, Community Coordinating Committees (CCC) continued to function in each district with the support of respective Divisional Secretaries for controversial issues such as boundary marking. The outputs delivered since the last mission under this Component include: (i) formation of lagoon management committees based on Kokilai and Panichenkerny lagoons; (ii) school level awareness programmes 6

13 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) Supervision report - Mission dates: January 2016 and competitions highlighting the importance of conserving mangrove and lagoon resources; (iii) erecting intensive demarcation pillars to fill critical gaps in vulnerable areas with human interferences, those destroyed by wild elephants (Vakarai) and establishment of a bio-fence in Sathurukondan; (iv) distribution of 1000 coconut seedlings and 6000 fruit plants to 180 families from the fisheries community; (v) compiling a co-management plan for sand dunes (Panama/Pottuvil) and demarcation of 2 km of sand dune boundaries in Komari (to be continued in 2016); (vi) maintenance of the green belt established in the year 2013 and initiatives for another 50ha of green belt through the Department of Forest with Casuarina, Pandanus, Mudilla species; (vii) Karathive Thona rehabilitation with community participation benefiting 6855 families; (viii) compiling a co-management plan for coral reefs in Pigeon Island (details below); (ix) launch of a livelihood programme through a service provider (details below); and (x) expansion of the eco-tourism programme as a livelihood (details below) measure. 29. Co-management plan and an institutional mechanism for conservation management of Pigeon Island established. Actions in 2015 include: (i) two awareness programs for 161 stakeholder members including the boat society, hoteliers and Pigeon Island committee members on conserving Pigeon island and its resources; (ii) three coordination meetings with Department of Wildlife and the Marine Environment Protection Authority to strengthen the institutional mechanism for conservation management; (iii) compilation of the Pigeon Island Management Plan; (iv) GIS mapping; and (v) biophysical monitoring of reef health through a team of Scholars from the University of Ruhuna and the implementation of the recommendations. As well, a fully-fledged information centre is planned for construction in 2016, which will be managed by the Department of Wild Life Conservation. Also a boat landing jetty, sub zoning, demarcation of the park are in the planning stage. The mission strongly reminds the project that all works must be completed by October Livelihood programme. The project hired a service provider in September 2014 for one-year period to implement a livelihood development programme for vulnerable households within the coastal ecosystems catchment area. Under this initiative, 1000 livelihoods were to be supported with the provision of technical and entrepreneurship training and facilitated market linkages. It was reported that this initiative has mobilised and reached 1019 beneficiaries, towards supporting incomegenerating activities (IGA) in 12 sub-sectors; women account for 69% of the beneficiaries. Of the total 1019 beneficiaries reached, 66% have opened bank accounts, 37% have credit applications under review, and 18% have already obtained bank credit. Those who have obtained credit have started up their small-micro businesses, whilst there are also others who having received technical training, have also initiated their businesses, pending bank credit approval. At present, the Regional Development Bank (RDD) is the only bank linked to the livelihood development initiative, providing loans with a 12% per annum interest rate. 31. The process of identification of potential entrepreneurs has started through the formation of small groups and the promotion of savings, allowing for micro loans among the group members. Fourteen Community Based Organizations (CBO) (comprising several smaller groups) have been formed and three of them have been registered at the Divisional Secretariat. In terms of sustainability, it is critical that all CBOs are registered as soon as possible. In view of the progress made, and given the importance to monitor the outcomes and results of the support provided, the mission recommends to extend the contract with the service provider to ensure that all the 1019 beneficiaries are linked to the formal banking sector, that the CBOs are registered and benefit from further capacity building, and that the impact of the interventions are monitored and reported. The mission recommends as well, that the amended contract should include additional tasks such as: (i) facilitating the operationalisation of revolving funds for CBOs (registration of CBOs with the respective Divisional Secretariats should be a condition for any financial assistance to them); and (ii) undertaking capacity building (in particular English language proficiency) to boat operators within the eco-tourism programme in Ampara and Batticaloa districts. 32. The Mission has observed that the eco-tourism intervention promoting lagoon safaris, have potential to significantly improve the livelihoods of vulnerable fishing families. The project initiated 7

14 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) activities in 2015 by supporting the construction of resting halls and jetties, with an additional fishing society to be supported in The system operates in a fairly organized manner (fixed rates for various tour packages, collective agreements between boat operators, etc.), but proficiency in the English language of the boat operators is a limiting factor in being able to retain and attract foreign tourists. 33. Finally, the mission observes that there is a very high un-met demand for credit amongst the project target group, especially to undertake economic on and off-farm activities. Therefore, the mission recommends that given that the same targeting principles apply, the project should establish cooperation with the IFAD-financed National Agribusiness Development Programme (NADeP), in order to access the line of credit and the established interest rate of 6.5% per annum. 34. The Mission is concerned with the poor level of the maintenance of the eco-park in Vakarai, which is way below expectations. The Mission stresses that the PMU should take up the matter with the Forest Department top officials and together, develop a management and development plan. Agreed action Responsibility Agreed date Complete all initiated and planned construction works PMU October 2016 for Pigeon Island Request N-O for extension of the livelihoods SP, with PMU Immediate amended TORs Ensure all CBOs are registered PMU 29 February 2016 Establish an MoU with NADeP for rural finance and PMU and NADeP 29 February 2016 access to credit Together with the Forest Department officials, develop a management and development plan for the eco-park in Vakarai PMU 12 February 2016 Component 4: Learning, evaluation and adaptive management increased (moderately satisfactory, 4). 35. A central information base as repository for interventions in eco-system restoration and climate change adaptation. An all island status report consisting of three chapters on social, economic and environment characteristics of the extended coastal zone has been produced as a component of the NCZ&CRMP through the CC&CRMD. As well, fully equipped information centres headed by the Ecosystem Restoration and Adaptation Unit (ERAU) have been established and equipped, with supportive facilities provided to the ERAU officer. Information in document and electronic formats on lessons learned from the previous similar activities implemented in Sri Lanka, conservations acts of parliament, documents produced by the project such as case studies and success stories, leaflets, video documentaries, GIS maps and other information on coastal resources are being displayed and installed to the computer system at the ERAU information centre for public reference. The centre in Batticaloa is equally equipped but still located at the district office waiting for a space at the district secretariat; the site for the centre in Ampara has been earmarked. Visitors to these centres include university students (local and few foreign), state officials, research students, teachers and entrepreneurs numbering about per month as per records in Trincomalee. 36. It is evident that the project has made a good effort to develop knowledge management (KM) products tailored to the different audiences, from the level of local communities to decision-makers. However, at this stage in the project lifetime, it is important that these products are utilised and adequately leveraged to contribute to the sustained good practices and governance of the ecosystem even after the project closes; this requires a knowledge management strategy that supports the institutionalisation of the project-promoted approaches and practices, and contributes to the policy dialogue. 37. Discussions have also been ongoing for the establishment of a complete national level database on ecosystem restoration, climate change vulnerabilities and adaptation at CC&CRMD, though a number of details are still unclear, such as the form the database will take, and the scope. The mission therefore recommends that the PMU prepare and submit a concept note for review. 8

15 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) Supervision report - Mission dates: January 2016 Agreed action Responsibility Agreed date Submit KM Action Plan for IFAD N-O PMU Immediate Submit concept note for establishing the national database/ information centre PMU Prior to NSC meeting Document conservation practices that have so far been implemented, to contribute to a national database in the CC&CRMD, and which will facilitate policy dialogue PMU Immediate and continuous D. Project implementation progress 38. Quality of project management (moderately satisfactory, 4). The recruitment and deployment of additional project staff at the district level, has improved the pace of implementation and technical functionality of the project; of note, district teams have made strong efforts to enhance the dialogue and coordination with district and divisional level government partners, and which has facilitated the participatory processes pursued by the project. However, at the level of the central PMU, the absence of full-time dedicated project staff has limited the capacity for enhanced monitoring and evaluation, and the consolidation of operational information (to-date, no M&E Officer has been recruited). As well, the mission observes that the interaction and communication between operations and fiduciary aspects (see detail of fiduciary issues under Section E) has been inadequate, which has had consequence for effective planning, efficiency in the roll-out of activities, and their monitoring. There is a need in the lead up to completion, for strong management oversight to ensure remaining activities and implementation are undertaken in a timely manner and with attention to the quality of results. 39. With the urgency to implement and complete all activities by the completion date, the mission recommends as well, to recruit temporary assistance (on assignment) in support of procurement. 40. Performance of monitoring and evaluation (moderately satisfactory, 4). Whilst an excelbased M&E system has been further developed in the interim period, the mission observes some weaknesses in the organization (information kept in multiple files without one central database) and consolidation of the data and information generated, particularly to showcase the major achievements, results and highlights from the quite considerable number of interventions that have been implemented across the three districts. 41. Following previous mission recommendations, M&E tools (survey templates, etc.) have been jointly developed and/or strengthened by the M&E team (M&E assistants at district-level and central PMU level), enabling improved output-level monitoring. Unfortunately, the data, information, findings and results obtained in the field are not yet systematically analysed and consolidated, which limits the project s ability to report on outcomes and feed key strategic and management decisions. At this final stage of implementation, the project must critically review achievements against the targets and outcomes expected (referring to the project logical framework) this requires that results are aggregated and classified by their contribution to achieving the project outcomes. As well, it is now urgent that the necessary preparations and mobilisation of beneficiaries, project partners and service provides to contribute to outcome monitoring are underway. Where applicable and where service providers have been contracted (such as is the case with the livelihood activities and support to fishing communities), the PMU must ensure that final reports are submitted on time. 42. Final impact assessment (including) RIMS final household survey. The nature of this project as per the design places emphasis on environmental considerations. Despite a development goal of tsunami-affected ecosystems in Sri Lanka to provide full ecosystem services, including adaptation against extreme climate events, the timing of the project is relatively mismatched, only becoming operational eight years following the tsunami. As a consequence, the pre-tsunami ecosystem situation is incomplete. 43. Nevertheless, the project has identified relevant and contextual interventions that were pursued over the project lifetime, and which would have direct impact on the local populations in the project 9

16 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) area; as well, the baseline situations of the selected target beneficiaries have been surveyed in cooperation with contracted service providers. In the lead up to completion, it is now urgent that the project undertake outcome and impact evaluation/ analysis, and the overall final impact assessment in particular. In terms of the project focus areas and broad benefits to be assessed, they relate to two elements: (i) the environmental/ ecosystem benefits; and (ii) the human element in terms of benefits to direct beneficiaries and the targeted local beneficiary communities. With respect to the environmental benefits, the various studies, surveys and profiling undertaken by the project (and well reflected in reports, mapping, etc.), are important references for the baseline situation it is important that the key findings and recommendations as contained in the various reports are extracted and consolidated, serving as well to support the justification behind the actual interventions and activities that have taken place (where there is some deviation from those originally envisaged at design). 44. The project is reminded that the final impact assessment is critical for feeding into the project completion report; therefore, it should also be fielded before the completion date in order to facilitate the final completion mission and the project completion report. The TORs need to be drafted and submitted for no objection. Where applicable, all service providers need to be informed that they must undertake their own surveys and provide their final reports. 45. Coherence between planned 2015 AWPB and its implementation (moderately unsatisfactory, 3). The 2015 AWPB totalling USD 2.68 million was only 47% realised, which is representative of the general trend in the implementation of the AWPBs over the lifetime of the project. This is a concern, as with less than one year to completion, the project has still to disburse more than a third of the total financing (approximately USD 2.24 million). In this final year of implementation, the PMU is urged to take into consideration the recommendations of the mission in the review and finalization of the 2016 AWPB for submission to the NSC and IFAD for no-objection. It is critical that the PMU closely monitor and regularly reports on the progress of activities (e.g. every two weeks) and ensures that there is strong discipline for timely procurement and improved contract management. 46. Gender focus (moderately satisfactory, 4). Across the interventions, the gender dimension is taken into consideration primarily through the inclusion of women in the following activities: under livelihood support activities (IGAs), where women represent 69% of the beneficiaries; in the formation and establishment of women s saving groups; in conservation/ restoration activities such as green belt development (reforestation) with women s groups undertaking the work and compensated for their labour; and in the in the provision and distribution of small environmentally-friendly implements (such as energy efficient stoves) to women-headed (vulnerable) households (preliminary results show that this has yielded a 25% reduction in the firewood consumption). Notably, through the livelihood activities, technical and basic financial training have been provided to increase women's capacities to start-up or enhance small business activities (on and off farm); as well, the project has facilitated women s access to the banking sector. 47. Poverty focus and effectiveness of targeting approach (satisfactory, 5). The project s poverty focus and targeting approach is influenced by the specificities of the priority target areas, in which the ecosystem needs are a primary consideration. Upon having identified these areas, and the special management areas (SMAs) in particular, the project has subsequently been able to target the most highly vulnerable communities, such as fishing communities; support is then provided to build capacity of their organizations. In addition, in Trincomalee district, vulnerability mapping was undertaken, and project interventions have responded to the findings of this mapping exercise by establishing flood safety buildings to the benefit of the most vulnerable communities. 48. Innovation, knowledge management and lessons learned (moderately satisfactory, 4). An important element of this project is its ability to generate the information and knowledge that could be leveraged for policy engagement and advocacy. To do this effectively, the information must be consolidated and a clear communication and knowledge management strategy should be 10

17 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) Supervision report - Mission dates: January 2016 systematically pursued, especially at this final stage of the project. Today, the repository in the information centres at the district level are a credible start and various knowledge management products have indeed been produced (publications, case studies, awareness raising pamphlets and posters, videos and social media (Facebook page) to name a few); but the challenge remains in further consolidation and dissemination of the generated products and information to a national level, and that can feed into policy dialogue. At the PMU level, the lessons learned, future opportunities, and the activities/ approaches that are primed for scaling up, must be identified. 49. In terms of innovation, an important result directly attributable to the project s efforts is the developed participatory and co-management approach for natural resources management (of the ecosystems). Through a combination of awareness-raising, training, coordination and dialogue, community involvement in identifying and managing vulnerable ecosystems has been considerable. Such an approach is ripe for institutionalisation, and the project has promoted this through revision of the National Coastal Zone and Coastal Resource Management Plan. It is critical that this National Plan is brought to Parliament for legislation, as it offers the means by which the public sector can continue to collaborate with communities (and especially, to be able to channel the necessary public funds to these communities for ecosystem protection and conservation). 50. Partnerships (satisfactory, 5). At the district and divisional levels in particular, the project has been highly active in mobilising and ensuring the close coordination and collaboration across different pubic institutions (e.g. with Department of Forestry, Department of Wildlife, District/ Divisional Secretariats and Coordination Committees, etc.). This is also reflected in the commitment by various public departments to absorb the costs for the continuation of activities beyond the project lifetime, and once project funds are no longer available. Finally, a critical partnership that is strongly in evidence, has been the public sector partnership with communities for the co-management of ecosystems. 51. Climate and Environmental focus (satisfactory, 5). The project was designed to respond to, and address climate and environmental concerns; project implementation has by and large corresponded to these objectives (as described in Sections B and C). Agreed action Responsibility Agreed date Finalize and submit the 2016 AWPB and PP for N-O PMU 31 January 2016 Develop and define the exit strategies to be pursued in the remaining timeframe of the project PMU 12 February 2016 Recruit temporary assistance (assignment basis) for PMU Immediate procurement Implement close monitoring of the AWPB with progress PMU Continuous reporting every two weeks Prepare TORs for the overall impact assessment for IFAD N-O PMU 12 February 2016 Ensure all SP impact surveys and final reports are submitted PMU 31 May 2016 E. Fiduciary aspects 52. Quality of financial management (moderately satisfactory, 4). Accounting and financial management. The financial management of the project is handled - on a part-time basis - by the CCD Finance Officer assisted by two CCD accounts assistants. The mission noted with satisfaction that the fiduciary recommendations issued by the previous IFAD supervision mission have been implemented. Additionally, the PMU has installed the Tally accounting software, and all transactions since July 2015 are now recorded in the system. Despite this significant progress, the mission has noted that (i) neither prior years data nor the annual budget have been input into the system, (ii) manual books and registers continue to be used extensively, and (iii) accounting and financial reports are still produced using Excel. The mission also considers that there is room for improvement in high-level financial analyses (such as budget monitoring, treasury management, monitoring and analysis of disbursement rates, etc.) and financial reporting, as detailed below. 11

18 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) 53. Project completion. With the project in its final year of implementation, discussions were held with the PMU regarding project completion and closing procedures, and in particular: The completion of all project activities (i.e. the delivery of all goods, completion of all works and delivery of all services) before 31/12/16 The closing of the field project offices at district level by 31/12/16 The termination of staff contracts as of 31/12/16, except for essential staff at PMU level The final inventory of project assets and, based on CCD approval, the handover of these assets to the communities and/or government implementing agencies The financial monitoring, completion report and final audit report requirements. 54. AWPB. Despite the progression, the level of execution of the project s AWPB was never satisfactory since project start, as illustrated in the table below (amounts in USD 3 ): Component 1 Component 2 Component 3 Component 4 Project Management TOTAL 2011 Budget Actual % execution 2% 34% 5% 1% 80% 19% 2012 Budget Actual % execution 8% 16% 17% 10% 104% 18% 2013 Budget Actual % execution 25% 39% 21% 15% 86% 27% 2014 Budget Actual % execution 43% 65% 34% 12% 68% 42% 2015 Budget Actual % execution 46% 54% 35% 0% 172% 47% 55. These low execution rates reflect on the one hand, the fact that budgets tend to be overambitious, and on the other hand, the difficulties in implementation due to the limited capacities/delays of implementing agencies as well as the challenges associated with community work and land issues. The draft 2016 AWPB, which still needs to be revised and finalized prior to submission to IFAD for no objection, is equally ambitious and will require full support and involvement from all implementing agencies. 56. The mission urges the PMU to implement a budget monitoring system consisting of (i) the input of the detailed consolidated annual budget in the Tally system, (ii) the generation of a budget-to-actual statement by activity on a monthly basis, and (iii) an analysis of budget variances during a monthly budget review meeting chaired by the Project Director, with the participation of the Project Manager, Finance Officer, Procurement Specialist and Field Project Coordinators. 57. Treasury management. The project operates under the revolving fund modality and has received an average of USD per year in advances from IFAD since project start; to date, no cash shortages have been experienced. According to the 6-month cash forecast prepared by the PMU at the request of the mission, no cash tensions are anticipated for the period January to June However, as the project nears completion, it is essential that this cash forecast be updated at least twice a month, taking into account both financial commitments and forecasted expenditure. It is further recommended that advances to the Special Account be carefully monitored, especially in the 2 nd half of the year, so as to progressively reduce their level and ensure full recovery prior to grant closing. 3 Converted from LKR using the average annual rates of , , , and for each year from 2011 to

19 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) Supervision report - Mission dates: January Acceptable disbursement rate (moderately satisfactory, 4). Grant disbursements. The following table shows disbursements from the GEF grant as per the IFAD status of funds as at 14/01/16 (amounts in USD): Category Disbursed DESCRIPTION Allocated WA #1-35 % Disbursed Available balance I Technical assistance & consultancies % II Ecosystem restoration % III Adaptation % IV Vehicles & equipment % V Operation & Maintenance % Advances to special account TOTAL % When cumulative disbursements are taken into account (including WA #36 in process at IFAD and December 15 disbursements not yet claimed), the actual disbursement rate at 31/12/15 is 58% (excluding advances). This low rate is due to administrative delays (deferred project start, multiple changes in the lead project agency), limited capacity/delays of certain implementing partners, and difficulties related to land issues and work with the various communities. 60. The table below shows the expected grant disbursements at closing, based on the forecasts prepared by the PMU (amounts in USD): Category Disbursements at 31/12/15 Commitments at 31/12/ AWPB Forecasted expenditure Jan-June 2017 Expected cumulative disbursements at closing Expected disbursement rate at closing I % II % III % IV % V % TOTAL % 61. As shown in the table, the project anticipates that the grant will be fully disbursed by closing date. The mission recommends the PMU to (i) revise the above table based on the approved 2016 AWPB and the finalized 2017 expenditure forecast, (ii) update the schedule of commitments on a monthly basis and (iii) update the above table monthly, based on actual data and revised/updated forecasts. Furthermore, the mission recommends that Operation & Maintenance costs be closely monitored to avoid overspending the category allocation. Finally, the equipment to be procured under the 2016 AWPB is meant for the implementation of project activities under Categories II and III (and not for the operation of the PMU); therefore, the PMU is instructed to claim the related expenditure under those categories, rather than Category IV. 62. Withdrawal applications are submitted to IFAD on a regular basis. A total of 13 WAs have been issued by the PMU and processed by IFAD since the last supervision mission, 4 of which were advance requests. The mission reviewed the 9 justification WAs, and verified the supporting documents related to disbursements under the statement of expenditure (SOE) threshold on a sample basis. The main findings include: Purchase orders are not always used for the procurement of goods and non-intellectual services; Delivery notes or other evidence of contract completion are not always available; The monthly payroll statements are not signed or approved; The complete set of supporting documents related to items purchased in the field offices is not systematically forwarded to the PMU for inclusion in the payment file; Contracts and evidence of completion of works or services could not be verified for most items selected, due to the poor filing of procurement documents. Recommendations are issued accordingly. In addition, contract monitoring forms (C11) should be prepared systematically for all on-going and new contracts. 13

20 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) 63. Special Account reconciliation. The following table shows the Special Account reconciliation at 31/12/15 (amounts in USD): Total advances issued by IFAD Less: total amount recovered by IFAD Outstanding amount advanced to the Special Account (A) Balance of the Special Account at 31/12/ Balance of the Project Account at 31/12/15 (LKR /USD) Total bank balances Amount withdrawn from the Special Account and not yet claimed (December 15 expenses) Equipment purchased in May and June 15 and not yet claimed due to overspending in Category IV Amount claimed in previous applications but not yet credited (WA #36) Total advance accounted for (B) Difference (A) (B) The difference of USD 550 is most likely due to exchange rate fluctuations, as the PMU now uses an average monthly exchange rate to convert the project account balance and the transactions incurred in local currency 4. The mission recommends that (i) the exchange rate difference be fully justified, (ii) starting in January 16, disbursements in local currency be claimed in the WAs using the correct exchange rate, and (iii) the equipment purchased for USD 4,476 be claimed in the next WA. 65. Counterpart funds (satisfactory, 5). Counterpart funding for the project covers monthly allowances for CCD staff assigned to the PMU, office rent for the 3 field offices and duties & taxes. Since project start, the government has approved all annual allocations requested by the project (totalling LKR 68.5 million at 31/12/15 - approximately USD ), and has made the funds available to the PMU on a timely basis. However, the project has only been able to spend LKR cumulatively (approximately USD ), equivalent to 35% of the appraisal amount for GoSL contribution to project costs. This low disbursement rate reflects the overall low disbursement rate of the project, as well as the fact that a significant portion of the expenditure incurred to date were not subject to VAT. 66. Compliance with grant covenants (moderately satisfactory, 4). The project has complied with most of the grant agreement covenants, with the exception of the timely submission of the AWPB and the audit report. In addition, weaknesses were noted in the procurement procedures and the M&E system, as detailed in the relevant sections of this report. 67. Procurement (moderately unsatisfactory, 3). Project implementation has been affected by delays in procurement throughout the fiscal periods of 2014 and Procurement plans are not updated, monitored and revised during the course of implementation resulting in variances and noncompliance between the approved procurement plan and actual procurement undertaken based on needs as identified by the project. The mission worked with the procurement officer and the project manager to improve the 2016 procurement plan ensuring consistency with the 2016 AWPB while linking the monitoring of procurement plan and contracts management ensuring delivery of outputs and completion of services by the Project Completion Date, 31 December The mission has identified several procedural and process lapses in the procurement of consultancy services resulting in the shortening of period of bid affecting competitiveness; the inclusion of subjective criteria's in the request for proposal affecting transparency and fairness; nonavailability of subject matter specialist in the technical evaluation panels, resulting in an unsubstantiated and inadequate evaluation of proposals in accordance with the established criteria's in the request for proposals. Consultancy contracts (firms and institutions) has not been negotiated resulting in an un-negotiated contract identifying and agreeing to changes in the consultant's core experts available during implementation of the contract The issue is specific to technical evaluation of 4 This is due to the fact that the multi-currency feature is not activated in the Tally system. Prior to July 15, all LKR disbursements were claimed in the WAs using the correct exchange rate (based on the FIFO method). 14

21 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) Supervision report - Mission dates: January 2016 consultancies proposal and has not largely affected the procurement of goods and civil works. The mission as a measure to mitigate risks in the area is recommending the prior review of all consultancy procurement by IFAD while the prior review of goods and civil works procurement remains unchanged. 69. Contract management which incorporates efficiency in the execution and analysis, for maximising operational and financial performance and minimising risk, requires significant improvement as the mission has identified a number of cases when the service provider or contracted party has delayed delivery of outputs beyond the contract expiry period without adequate contract extensions processed and managed. This also led to the project assuming significant risk as a result of non-extension of bank guarantee for advances which were not off-set against progressive payments. Contract/payments monitoring logs have not been consistently, periodically and adequately updated and used as a tool to monitor contracts identifying areas for improvement. 70. While the mission has been able to access documents, the mission has identified the need for the project to improve its records management essential to the evidencing of a transparent and auditable procurement process including effective correspondence and communications with bidders, suppliers, contractors and consultants committing or binding the contract parties to a course of action with legal, contractual or financial implications. The mission agreed that the procurement officer who is also functioning as the civil engineer for the coastal conversation department requires temporary support of one full time procurement assistant for 6-8 months (extended based on needs) to improve records management, contract management, procurement planning and monitoring. As separate annex on procurement is prepared to guide the project on the areas of improvement in procurement. 71. Quality and timeliness of audits (moderately unsatisfactory, 3). The Auditor General Trincomalee branch carries out the annual audit of the project based on the Sri Lanka standards on auditing. The audit report for the year 2014 was submitted in November 2015, more than 4 months after the deadline 5. The mission noted that the audit report is not fully in line with IFAD requirements: it does not include an opinion on the Special Account, does not mention procurement activities, and does not include all the required documents (i.e. project financial statements, statement of fixed assets, budget-to-actual statement, withdrawal application/soe schedule, cumulative status of funds by category/financier, and special account reconciliation). In addition, the Auditor General did not issue a separate management letter; the observations made in the audit report relate mainly to the implementation delays and the low disbursement rate. 72. The 2015 audit has not yet been scheduled. The mission recommends that (i) the audit TOR be in line with IFAD requirements as spelled out in the IFAD Guidelines on Project Audits, (ii) audit work take place early April at the latest and (iii) the complete audit report be submitted to IFAD before 30 June The mission also urges the PMU to plan the final audits of the project (fiscal year 2016 and six month to closing) as early as possible so as to avoid delays in the submission of the report. 73. The following summarizes the main recommendations issued for the fiduciary aspects: Agreed action Responsibility Agreed date 1. Ensure all completion procedures/requirements are followed (delivery of all goods/works/services, closing of field offices and termination of staff contracts, final inventory and handover of assets, completion and audit reports) Project Manager Finance Officer 31/12/ Implement an efficient budget monitoring system (input of 2016 AWPB in Tally, monthly generation of budget-to-actual statement and variance analysis) 3. Update cash forecast bi-monthly and monitor advances to Special Account Finance Officer Project Manager Finance Officer 15/02/2016 and monthly Continuous 5 The previous IFAD supervision mission also noted that the audit report for the year 2013 was submitted 3 months after the deadline, in September

22 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) 4. Monitoring of disbursements up to closing: finalization and monthly update of the expected disbursements table based on actual data and revised/updated forecasts 5. Closely monitor operation & maintenance costs to avoid overspending Finance Officer 15/02/2016 and monthly Finance Officer Continuous 6. Claim equipment expenditure in WAs under categories II & III (not IV) Finance Officer Continuous 7. Ensure complete supporting documentation is maintained for SOEs Finance Officer Continuous 8. Prepare contract monitoring forms (C11) for all on-going and new Finance Officer Continuous contracts 9. Justify the special account reconciliation and use the correct exchange rate in WAs. Claim USD equipment expenditure in the next WA under Category IV Finance Officer 31/01/2016 Continuous 10. Align audit TOR with IFAD requirements, start audit work by early April 16 and ensure 2015 audit report is submitted on time 11. Plan the 2016 and 2017 audits as early as possible to avoid submission delays 12. Update, monitor and revise procurement plans and submit revision to IFAD for approval. 13. Revise the procurement plan for consultancy services establishing IFAD prior review for consultancy services procurement. 14. Ensure compliance in procurement procedures and process and undertake adequate and substantiated evaluation of technical proposals with the assistance of technical experts (as needed) in the evaluation panels. 15. Negotiate consultancy contracts requiring the contracted party to confirm availability of core experts and manage changes and variations prior to contract signature. 16. Monitor, manage changes and variations in contracts when scope of work, term and conditions and delivery of outputs are revised or delayed 17. Manage and secure extensions of advance guarantee's with issuing bank on the associated contract prior to it expiry. 18. Update and monitor contract and contract payment registers and logs and submit these logs to IFAD on a monthly basis 19. Ensure procurement records and communication are managed systematically. File and manage bank guarantees and performance guarantee in separately a secured manner 20. Select and recruit a temporary procurement assistant to support the procurement officer Auditor General 29/02/2016 FO and PM 30/06/2016 AG and FO 31/12/2016 PMU Periodically PMU 29/01/2016 PMU PMU PMU PMU PMU PMU Periodically Periodically Periodically Periodically Periodically Periodically PMU 15/02/2016 F. Sustainability 74. Institutional sustainability/exit strategy (moderately satisfactory, 4). The establishment of management committees and level of divisional and district coordination with public institutions and with communities (co-management) is contributing to ensuring an enabling institutional set-up for the continuity of ecosystem conservation and protection measures. However, these activities do require funding, and although public institutions have indicated absorption of activities into their regular annual work plans, continued advocacy is needed to ensure that the related departmental funds are budgeted and channelled to these activities. More especially, communities involved in comanagement must also have access to funds in the long-run the mechanisms to ensure flow of public funds to communities have to be set in place (as yet, there is no official mechanism); as well, the capacity for communities to be able to lobby and mobilise additional financial resources from donor or supplementary funds available for natural resources management need to be enhanced. 75. With respect to CCD s proposed special management areas (3 in total) and conservation and/or reservation areas (6 identified), a strong lobbying is required by the project to ensure that the relevant department or public agency (e.g. Department of Forestry) provides formal/ official recognition (through gazette). 16

23 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) Supervision report - Mission dates: January In terms of other project intervention areas, such as livelihoods adaptation and development and eco-tourism development, the exit strategy to be pursued must now be defined and implemented. 77. Empowerment (moderately satisfactory, 4). Communities have been empowered through continuous awareness raising and trainings, to become more actively engaged in natural resource/ ecosystem management. To fully ensure the sustainability of their co-management responsibilities however, there is need for additional capacity building in terms of their ability to lobby, to mobilise financial resources and ensure good governance in decision-making and management. In other intervention areas, the formation of community-based organizations (CBOs) must also now be strengthened, with CBOs to be officially registered and/ or their legal status confirmed. 78. In terms of economic empowerment, the mission has as well proposed a closer collaboration with the IFAD-financed National Agribusiness Development Programme (NADeP) for access to its line of credit; this would serve to better enable the target group to further invest in their activities and build their assets. 79. Quality of beneficiary participation (satisfactory, 5). As was conceived, the project has been designed with the inclusion and participation of beneficiary communities in the long-term management of ecosystems as an underlying principle for. During the implementation period, there has been a strong focus of activities on community awareness programmes, community representation in district and divisional committees, and community-led restoration of ecosystems. 80. Quality/responsiveness of service providers (moderately satisfactory, 4). The quality and responsiveness of the service providers contracted to support delivery of results has been mixed. In general, the project has worked with the established public institutions to the extent possible, though service providers have been contracted for specific tasks and deliverables, mostly related to undertaking specialised studies and surveys. Where the service provider team has mobilised the specific technical skills and experience required (e.g. for some technical studies and under the livelihoods/ IGA activities), the outputs have been of satisfactory quality; in other instances, it appears that the service provider does not have the required in-house technical skills set, and this has caused delays in the expected deliverables. 81. Scaling-up (moderately satisfactory, 4). This project was specifically designed as a response to the post-tsunami situation in vulnerable coastal areas. Nevertheless, some of the approaches, processes and institutional mechanisms that have been developed under the project, such as the participatory processes and co-management concepts, have proven credible and can be scaled-up and adapted to different contexts. G. Other 82. Activities to be undertaken in view of the project completion and closing. In terms of technical activities (for fiduciary aspects, see section E above), and by 31 December 2016 (completion date), the GEF project will mainly have to ensure that: (i) on-going works are delivered and on-going services are rendered; (ii) compile, verify and analyse M&E data; (iii) document achievements and lessons learned; (iv) organize a national workshop with partners; and (v) ensure the full achievement of the 2016 AWPB. During the closure period (1 January to 30 June 2017), the project can only pursue winding-up activities; these will include: (i) organizing a stakeholders workshop; and (ii) preparation of the completion report (with IFAD support where required). To further guide the completion process, the mission will provide guidelines on the preparation needed. The sixmonth 2017 work plan and budget to cover the period between completion and closing will need to be prepared. H. Conclusion 83. After three effectively operational years of implementation, the GEF project has made relevant inroads into creating the enabling conditions for participatory and community engagement in 17

24 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) processes of natural resource management, specifically for the restoration and future protection of coastal areas. 84. With no possibility for extension, and as the project nears completion (31 December 2016), the project is however challenged to significantly accelerate its financial and physical progress (approximately 70%), making effective and efficient use of the grant financing to yield the intended results and objectives, and ensure the overall sustainability of the processes developed and efforts invested. In particular, the achievements made in enabling, defining and implementing participatory and community co-management arrangements have credibility for adoption and scaling-up. 85. At this final stage, the project should adopt a two-pronged approach as it prepares for completion: (i) finalize and complete all on-going/ pending investments and activities (especially infrastructure works), whilst implementing the exit strategy; and (ii) undertake the final impact assessment, consolidate the results, and leverage the experience and lessons learned for wider dissemination, and notably to facilitate strengthened policy engagement. 86. Further to the above, the mission recommends that given the limited remaining project life time, the project should as well focus on the following: 2016 AWPB and PP. The 2016 AWPB and Procurement Plan should be updated to ensure alignment with recommendations and priorities. Monitoring of fiduciary aspects. Timely procurement and active contract management will be critical to ensure that all works and activities are finalized and completed before the project completion date; the mission reminds the project that all non-completed works will not be eligible to be financed by the project funds and will have to be financed by the Government. Subsequently, strengthened monitoring and management is now required. 87. Finally, the mission urges the lead project agency to further champion the substantial efforts that have been invested in identifying conservation and special management areas, and in developing the processes and mechanisms for community co-management of these coastal natural resources (ecosystems); lobbying and ensuring Parliament s approval is critical. 88. IFAD and the Government of Sri Lanka endorse the findings of the supervision mission. 18

25 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) Appendix 1: Summary of project status and ratings Appendix 1: Summary of grant status and ratings A. Grant basic data Grant title: Participatory Coastal Zone Restoration and Grant No. GEF FSP-5- Window GEF Sustainable Management in the Eastern Province of LK IFAD grant sponsor Post-Tsunami Sri Lanka Grant recipient: Ministry of Environment Recipient contact Mr Premathilake Justin, Project Manager Date of update Date of approval Dec 07 Original closing date 31 Dec 16 Last amendment 04 April 2012 Date of effectiveness 23 Jul 09 Extended closing date 31 Dec 16 Last audit Sept 2014 No. of extensions Last steering committee attended Last supervision US$ million US$ million Disbursement Percentage Total financing 7.35 Cofinancier 1 IFAD grant 65 IFAD/GEF grant 6.92 Cofinancier 2 Recipient 0.43 Cofinancier 3 Target group (complete as many as applicable by providing a brief description) The Project covers the Eastern Province of Sri Lanka and, specifically, the three districts of Tricomalee, Batticalloa and Ampara. The target groups are local communities members within the ecosystems, including women and youth. Due to the nature of the Project, no specific requirement was envisaged in terms of poverty targeting. Benefiting countries: Sri Lanka Benefiting investment projects: Post-Tsunami Coastal Rehabilitation & Resource Management Programme (PTCRRMP) Grant goal and objectives (relate to strategic objectives, i.e. research and/or capacity-building) Goal to rehabilitate tsunami affected ecosystems in Sri Lanka to provide full ecosystem services including adaptation against extreme climatic events. Objective to mainstream restoration and management conservation of globally important ecosystems affected by the tsunami into the reconstruction process to support sustainable livelihood and reduce vulnerability to climate change along the East Coast of Sri Lanka. B. Grant management and performance Indicator Last Current Performance of grant recipient 5 5 The National Project Steering Committee (NPSC), under the chairmanship of Secretary MODUD and comprising key stakeholder agencies (including the three District Secretaries), is functioning well in providing policy guidance to project operations. The national Technical Coordination Committee, as recommended by the MTR and reporting to NPSC, has been established to address and coordinate all technical issues arising from project implementation. District and local level coordination has been improved, notably through strengthening the role of the District Environmental Coordination Committee as recommended by the MTR. The PMU and three district project offices are operating with key staff in place. Availability of co-financing 5 5 An adequate counterpart funds as approved in the AWPB of 2011 and 2012 and 2013 has been provided to meet expenses related to taxes, office building rent in three project districts and basic salaries of PMU staffs. Coherence between AWPB and implementation 4 3 Despite the progression, the level of execution of the project s AWPB was never satisfactory since project start, with execution levels ranging from 18% (2012) to only 47% (2015). These low execution rates reflect on the one hand, the fact that budgets tend to be over-ambitious, and on the other hand, the difficulties in implementation due to the limited capacities/delays of implementing agencies as well as the challenges associated with community work and land issues. The 2016 AWPB is equally ambitious and will require full support and involvement from all implementing agencies. Acceptable disbursement rate 4 4 When cumulative disbursements are taken into account (including WA #36 in process at IFAD and December 15 disbursements not yet claimed), the actual disbursement rate at 31/12/15 is 58% (excluding advances). This low rate is due to administrative delays (deferred project start, multiple changes in the lead project agency), limited capacity/delays of certain implementing partners, and difficulties related to land issues and work with the various communities. However, if recommendations are implemented, it is expected that at closing, the disbursement level of the grant will reach 99%. Quality and timeliness of financial reports 4 4 The financial management of the project is handled - on a part-time basis - by the CCD Finance Officer assisted by two CCD accounts assistants. The mission noted with satisfaction that the fiduciary recommendations issued by the previous IFAD supervision mission have been implemented. However, accounting and financial reports are still produced using Excel, and there is room for improvement in high-level financial analyses and financial reporting. Quality and timeliness of technical reports 4 In this final year, there is need for consolidation of results and reporting, which to-date, has not been systematically pursued. Dissemination of results 3 3 The project has produced a number of knowledge products to disseminate project results and achievements. It has also undertaken various trainings and awareness raising workshops with key project stakeholders, as well as, outreach activities to youth through art and painting competitions. These knowledge management (KM) activities and products provide a good foundation to build upon. It is evident however that a more strategic KM framework is necessary for fully benefiting from the lessons being learned from the rich set of activities being undertaken for achieving the objectives of local level behavioural change, replication and scale up of best practice and policy enhancement in support of community-based natural resource management. Linkages to investment portfolio 3 3 The Project was designed within the framework of PTCRRMP and was theoretically closely linked with investment portfolio. However, the need to change the Project Lead Agency in 2011 as a result of central government re-organization had impacted negatively on the desired 19

26 Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka Project (GEF Grant No. GEF FSP-5-LK) Appendix 1: Summary of project status and ratings linkages. Moreover, PTCRRMP completed in September 2013, when the Project started embarking on a major progress in physical implementation. C. Assessment of progress on targeting, inclusion and innovation Indicator Last Current Project activities benefit IFAD target group 3 5 Ecosystem and socio-economic status surveys have improved targeting within the project. Furthermore, the roll-out of livelihood activities is contributing to benefit the core target group. In the long run, the inclusion and participation of the target group in discussion, coordination and management forums are also serving to ensure that the target group will have long term benefits from the activities promoted through the project. Innovation 4 4 An important result directly attributable to the project s efforts is the developed participatory and co-management approach for natural resources management (of the ecosystems). Through a combination of awareness-raising, training, coordination and dialogue, community involvement in identifying and managing vulnerable ecosystems has been considerable. Such an approach is ripe for institutionalisation Gender focus 4 4 Across the interventions, the gender dimension is taken into consideration primarily through the inclusion of women in the following activities: under livelihood support activities (IGAs), where women represent 69% of the beneficiaries; in the formation and establishment of women s saving groups; in conservation/ restoration activities such as green belt development (reforestation) with women s groups undertaking the work and compensated for their labour; and in the in the provision and distribution of small environmentally-friendly implements (such as energy efficient stoves) to women-headed (vulnerable) households. Through the livelihood activities, technical and basic financial training have been provided to increase women's capacities to start-up or enhance small business activities (on and off farm). D. Grant implementation assessment Indicator Last Current Overall implementation progress With less than one year to completion (31 December 2016), the project has so far achieved 64% financial progress, with corresponding physical progress. As the project nears completion, noteworthy achievements centre on the establishment of the participatory and community comanagement arrangements and the joint (public) institutional collaboration that has been on-going; additional measures are however required to strengthen the sustainability of the mechanisms (discussed in following sections). As well, the project has made significant contribution to building a solid knowledge base and repository on Sri Lanka s coastal zones and the three main coastal ecosystems (lagoons; mangroves; and sand dunes). In terms of livelihood activities, the project has also invested efforts to support the livelihoods diversification of 1019 vulnerable households in the project area with technical training on income-generating activities and business training, and has as well facilitated linkages to markets, and household access to financial services. However, whilst there have been some credible results, there remain fundamental implementation and management issues that require a much more concerted effort and close monitoring in order for the project to deliver on its objectives.. Assessment of overall implementation progress 4 4 Progress in meeting goal and objective(s) In light of the approaching completion date, the PMU must now focus on: (i) finalizing all pending (infrastructure) works and services, and ensuring their timely payment; (ii) completing all planned ecosystem protection, demarcation and restoration activities; (iii) establishing and implementing the exit strategies for the various components and types of activities supported by the project (identifying the mechanisms for transfer of responsibilities, and to whom (institutions, communities, etc.)); (iv) strengthening policy advocacy and the institutionalisation of the innovative approaches and mechanisms that have been developed (as part of the exit strategy, the facilitating policy environment, legislation and Acts need to be firmly established as it will have consequence on sustainability); and (v) outcome and impact monitoring and evaluation, including documenting lessons learned and identifying credible opportunities for scaling-up. In addition, communication and knowledge management products need to be upgraded. Assessment of progress in meeting goal and objective(s) 4 4 E. Supervision and evaluation arrangements Description of supervision and evaluation arrangements With the approaching closing date, the project must urgently prepare for the terminal evaluation. F. Follow-up action Issue/problem Recommended action Status/timing Fiduciary Critical completion preparations: Before project The completion of all project activities (i.e. the delivery of all goods, completion of all works and delivery of all services) before 31/12/16 completion/ closing The closing of the field project offices at district level by 31/12/16 The termination of staff contracts as of 31/12/16, except for essential staff at PMU level The final inventory of project assets and, based on CCD approval, the handover of these assets to the communities and/or government implementing agencies Financial monitoring, completion report and final audit report requirements M&E At this final stage of implementation, the project must critically review achievements against the targets and outcomes expected (referring to the project logical framework) this requires that results are aggregated and classified by their contribution to achieving the project outcomes. Immediate Exit strategy/ sustainability It is now urgent that the project undertakes outcome and impact evaluation/ analysis, and the overall final impact assessment in particular. Ensure Parliament Act/ approval of key documentation, processes and procedures developed under the project 31 March

27 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Logical framework at design: Project strategy Objectively verifiable indicators Indicators Baseline Target Means of Verification Risks/Assumptions Goal Tsunami-affected ecosystems in Sri Lanka are rehabilitated to provide full ecosystem services including adaptation against extreme climatic events GEF Project Objective: Institutional Restoration and conservation management of globally important ecosystems affected by the tsunami is demonstrated for, and mainstreamed effectively into, the reconstruction process to support sustainable livelihoods and reduce vulnerability to climate change along the east coast of Sri Lanka Government requirement to incorporate ecosystem restoration and adaptation to climate change into all post-tsunami reconstruction and coastal zone management projects Ecosystem restoration is currently low priority with no such activities active, and no requirement for its integration into other projects Adaptation to climate change vulnerability in coastal areas is currently a low priority By the end the Year 2, a Cabinet Decision passed requiring ecosystem restoration to be integrated into all reconstruction and coastal zone management projects under the aegis of the Reconstruction and Development Authority (RADA) By the end of year 2, adaptation to the climate change in coastal areas is integrated into the next revision of the Coastal Zone Management Plan (CZMP) Cabinet Decision Post-tsunami reconstruction project proposals (Government and donors) Field visits to project sites CZMP Risk: Development efforts are not constrained by war or war related security activities Assumes Government s commitment to environmental restoration to provide a basis for protection of communities and the development of sustainable livelihoods as well as adaptation to climate change in coastal areas remains strong Number of tsunami-reconstruction projects, and public and private sector developments running contrary to Special Area Management (SAM) plans To be determined at the start of implementation of the project since the numbers are changing rapidly No further contradictory developments by

28 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Project strategy Objectively verifiable indicators Indicators Baseline Target Means of Verification Risks/Assumptions Number of community comanagement agreements including ecosystem restoration negotiated by Coast Conservation Department (CCD) and other relevant agencies Co management efforts have been tested in the south but not yet in the east Two community comanagement schemes are under preparation at present under North East Coastal Community Development Project (NECCDP) By end of Year 7, at least nine new community comanagement agreements have been signed under this project for the East Coast Signed agreements Project reports Assumes community co-management efforts are a successful vehicle for ecosystem restoration Land Management and Biodiversity Area of globally significant natural coastal ecosystems restored and rehabilitated along the eastern coast of Sri Lanka coastal lagoons and sand dunes Area of pre-tsunami coastal lagoons and sand dunes along the east coast estimated to cover 33,600ha and 350ha respectively Area of coastal lagoons and sand dunes damaged by tsunami along the east coast estimated to be 9,000ha and 50ha respectively 1000 ha of coastal lagoons and 75 ha of and sand dunes rehabilitated by 2011 to the pretsunami Field verifications Field surveys in areas where posttsunami reconstruction is taking place Periodic monitoring reports of the IFAD/GEF Project Implementing Agency Assumes commitment of all parties including Central, Provincial and Local Government partners and local communities for project approach and concepts Risk: tsunami reactive and responsive development priorities may lead to unsustainable coastal planning and restoration. 22

29 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Project strategy Objectively verifiable indicators Indicators Baseline Target Means of Verification Risks/Assumptions Area of nationally important natural coastal ecosystems along the eastern coast of Sri Lanka - mangroves Area of pre-tsunami mangroves along the east coast estimated to cover 3,200ha Area of mangrove damaged by tsunami along the east coast estimated to be 1300 ha 250 ha of mangroves rehabilitated by 2011 Field verifications Field surveys in areas where posttsunami reconstruction is taking place Periodic monitoring reports of the IFAD/GEF Project Implementing Agency Number of globally threatened species present along the east coast Prior to the tsunami, 23 globally threatened species and seven nearheartened species were present By 2011 no net loss of globally threatened species attributable to impact of tsunami on coastal ecosystems and its recovery process or other anthropogenic impacts Field surveys and monitoring Assumes that habitat restoration can provide high quality habitat again within the Project timeframe Number of endemic species along the east coast Three plants and six marine species were present prior to the tsunami Pre-tsunami conditions of endemism in the eastern coast is maintained or enhanced by 2011 Field surveys IUCN Sri Lanka Red List Marine species are assumed not to have been affected by the tsunami focus will be on plants 23

30 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Project strategy Objectively verifiable indicators Indicators Baseline Target Means of Verification Risks/Assumptions Outcome 1 Best practices for effective restoration and restoration of key coastal ecosystems developed and demonstrated Community led, cost-effective and practical pilot testing of key ecosystem restoration methodologies No pilot tests underway By middle of Year 3, pilot tests for restoration of mangroves, sand dunes and coastal lagoons complete Technical reports field and trip reports Participatory monitoring reports Assumes that pilot tests provide adequate basis for developing replicable models Progress reports Availability of best practice guidelines for restoration of tsunami affected coastal ecosystems including adaptation issues No best practice guidelines for ecosystem restoration as well as adaptation to climate change in coastal areas are available currently By end of Year 3 best practice guidelines for ecosystem restoration and adaptation to climate change in coastal areas developed for mangroves, sand dunes, and coral reefs Best practice guidelines for three ecosystem types 24

31 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Project strategy Objectively verifiable indicators Indicators Baseline Target Means of Verification Risks/Assumptions Area of globally important ecosystems along the east coast rehabilitated through communitybased actions None at the start of the project By end of Year 7 the following tsunamiaffected, globally important ecosystems are under full restoration using best practice guidelines: at least 5ha of sand dunes at Panama/Pottuvil at least 10 ha of mangroves at Vakarai; and at least 25ha of coastal lagoons at Vakarai. Fixed transects Best practice guidelines for three ecosystem types Physical verification Biological indicators for ecological health are recruited into the restored ecosystems % income increase from sustainable use of resources from restored ecosystems Output 1.1: Best practices developed and demonstrated for community-led restoration of globally important ecosystems Activities: Establish baseline inventories of flora and fauna in the key ecosystems and compare to pre-tsunami status Establish socio-economic baseline data for communities involved with restoration demonstration sites Undertake vulnerability mapping of East Coast to prioritise areas for adaptation Pilot test methods identified in the PDF-B study using participatory planning and community-led implementation to ascertain most effective means of restoration of key ecosystems Undertake community-led restoration of mangroves and coastal lagoon at Vakarai Undertake community-led restoration of sand dunes at Panama/Pottuvil Output 1.2: Best practices and policy guidelines published on practical restoration and conservation management of globally important ecosystems Activities: 25

32 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Project strategy Objectively verifiable indicators Indicators Baseline Target Means of Verification Risks/Assumptions Prepare and disseminate best practice guidelines in three languages on the restoration of mangroves, lagoons, and sand dunes Prepare and disseminate management guidelines on community natural resource management systems, buffer zone greening, solid waste management, sustainable tourism, land use planning, and harvesting of ornamental fish 1.2.3: Prepare and disseminate policy guidelines for the efficient restoration of key ecosystems and on the effective involvement of communities in the process to ensure that lessons learned are incorporated into post-tsunami reconstruction projects Output 1.3: Central information base established at CCD as repository for all work on ecosystem restoration and coastal adaptation to climate change Activities: Collate and document in appropriate formats, all data on ecosystem restoration arising from baseline studies, pilot study trials, scaling-up processes, monitoring and evaluation measurements In collaboration with MOE and the UNFCCC focal point, collate and document all information relating to coastal adaptive measures and vulnerability to climate change Through newly formed Ecosystem Restoration and Adaptation Unit within the CCD, maintain information base and make available to the Disaster Management Centre, other Ministries and agencies, and civil society, and link it with other relevant databases, e.g. at NARA Outcome 2 Effective ecosystem restoration and conservation management are mainstreamed into post-tsunami reconstruction planning and implementation by relevant authorities and donors National Government requirement to incorporate ecosystem restoration into all post-tsunami reconstruction and coastal zone management projects see Development Objective. Provincial Coastal Zone Management Action Plan (CZMAP) for the Eastern Province includes restoration of tsunami-affected ecosystems and adaptation to climate change as a priority CZMAP for the Eastern Province initiated recently by NECCDP, but technical expertise to incorporate ecosystem restoration and adaptation to climate change in coastal areas into the CZMP is inadequate By end of Year 1, CZMAP is completed for the Eastern Province and includes ecosystem restoration and adaptation to climate change as an integral part of the plan Coastal Zone Management Action Plan for the Eastern Province Timetable assumes scheduled progress by NECCDP in other areas of the plan is achieved 26

33 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Project strategy Objectively verifiable indicators Indicators Baseline Target Means of Verification Risks/Assumptions Environmental coordination amongst Government agencies; amongst international and local humanitarian agencies and donors; and between Government and non-government tsunami-related agencies Government: Until January 2006, no environmental coordination meetings occurred. In January 2006, Tsunami Environment Response Platform initiated to resolve environmental problems. Humanitarian agencies: No coordination to date. Meetings of the Consortium of Humanitarian Agencies (CHA) are held weekly, but only for information sharing; not empowered to make decisions By middle of Year 2, monthly environmental coordination meetings held between relevant Government agencies and international and local humanitarian agencies and donors to facilitate effective ecosystem restoration as an integral part of posttsunami reconstruction. Minutes of meetings Number of coordination meetings held Assumes meetings improve coordination on the ground Govt/NGOs: Occasional presentations by Government agencies requested at CHA meetings. Nominal environmental coordination for housing projects 6 6 Prior to the tsunami, according to the National Environmental Act 56/1988 and amendments, housing projects over a certain size had to be referred to the Central Environmental Authority for environmental clearance. Immediately after the tsunami, this requirement was not observed in the light of the emergency. However, in 2005 the Tsunami Housing Reconstruction Unit was formed to coordinate the housing reconstruction programme, and in August 2005 an Environmental Director was recruited to THRU to facilitate the legal environmental approvals of housing projects on green sites. 27

34 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Project strategy Objectively verifiable indicators Indicators Baseline Target Means of Verification Risks/Assumptions Proportion of tsunami-related and coastal zone management projects including ecosystem restoration and climate change components In 2005, no tsunamirelated project included an ecosystem restoration component By end of Year 3, 50% of projects included an ecosystem restoration component. By end of Year 4, 100% of projects included an ecosystem restoration component. Bye-laws supporting requirement for ecosystem restoration on coastal projects No bye-laws active at start of project Bye-laws passed by end of Year 3 Bye-laws. District Environmental Law Enforcement Committee (DELEC) DELECs were established as part of national policy in 1995 but operate with varying degrees of success (becoming inactive in Batticoloa in the late 1990s) according to the priority and capacity accorded to environmental issues DELEC re-activated and capacity built in Batticoloa District by end of Year 1 DELECs strengthened in Trincomalee and Ampara Districts by end of Year 3 Effective enforcement of environmental regulation in the three districts by Year 2 Minutes of DELEC meetings Capacity assessment score reports before and after capacity building Number of cases brought to the courts Assumes law enforcement with regard to biodiversity conservation is adequately delegated to the committee 28

35 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Project strategy Objectively verifiable indicators Indicators Baseline Target Means of Verification Risks/Assumptions Specialist Ecosystem Restoration and Adaptation Unit within CCD No Unit in existence at start of project Specialist Ecosystem Restoration and Adaptation Uni fully trained and operational by end of Year 3 Capacity building of local implementing agencies and participating CBOs in ecosystem restoration, adaptation and monitoring undertaken from Year 3 onwards Management records, accounts, plans, reports, training records. Capacity assessments and evaluation scores, training records, reports Assumes Treasury and Public Administration Departments provide funds and the necessary positions approved to establish the Unit Best practice at the demonstration sites replicated at other sites along the East Coast. None at the beginning of the project Restoration of the three ecosystems underway at six or more sites by end of Year 5 sites to include at least one of each ecosystem and at least one site in each of the three Districts Field verifications Periodic monitoring reports of the Project Management Unit and IFAD/GEF Project Implementing Agency Output 2.1: Policy framework reviewed and restructured to support the restoration and sustainable use of coastal natural resources Activities: Undertake review of relevant policy, legislation, and investment guidelines to identify gaps, requirements, and perverse incentives Develop a pro-poor enabling policy environment for natural resource planning, sustainable land management, and adaptation to climate change within which local interventions are recognized and rewarded Output 2.2: Central national planning system introduces requirement to incorporate restoration of coastal ecosystems into all tsunami-reconstruction projects Activities: Facilitate a process to establish national policy that requires ecosystem restoration to be incorporated into all post-tsunami reconstruction projects Provide assistance to RADA to strengthen environmental coordination between RADA, the CCD/MOE/CEA, other Ministries, and other agencies through 29

36 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Project strategy Objectively verifiable indicators Indicators Baseline Target Means of Verification Risks/Assumptions regular meetings to support ecosystem restoration Hold half-yearly briefings on key environmental issues and techniques for policy-makers, planners and managers of the different sectors and agencies involved in post-tsunami reconstruction, at national and local levels Output 2.3: Restoration of coastal ecosystems incorporated into the Eastern Province planning system Activities: Promote and support the inclusion of community-based ecosystem restoration in the CZM Action Plan for the Eastern Province Mainstream climate change adaptability into the CZMAP for the Eastern Province Support the NEPC to update the CZMAP for the Eastern Province to incorporate lessons learned from ecosystem restoration, community co-management, and coastal vulnerability and adaptation to climate change Support District Secretaries to strengthen District-level environmental coordinating mechanisms Output 2.4: Specialist Ecosystem Restoration and Adaptation Unit created within Coast Conservation Department to provide facilitation and supervision services to tsunamireconstruction projects Activities: Establish scope of operations and undertake capacity needs assessment of Ecosystem Restoration and Adaptation Unit Recruit staff and build institutional and technical capacity of the Unit and facilitate working with project team at demonstration sites Build capacity of the Unit to train other implementing agencies and participating CBOs in ecosystem restoration and monitoring, and coastal vulnerability and adaptation Output 2.5: Demonstration of replication of ecosystem restoration and community-based co-management of coastal ecosystems promoted by North Eastern Provincial Council Activities: Undertake ecosystem and socio-economic status surveys of tsunami-affected areas to prioritise potential sites for replication of ecosystem restoration Undertake consultations with local communities and other stakeholders to identify and agree participatory implementation mechanisms Initiate ecosystem restoration and monitoring using best practice guidelines, knowledge transfer from visits to demonstration sites, and training from CCD s Ecosystem Restoration and Adaptation Unit. 30

37 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Project strategy Objectively verifiable indicators Indicators Baseline Target Means of Verification Risks/Assumptions Outcome 3 Coastal communities empowered to manage local natural resources to enhance sustainable livelihoods Framework for enabling legal designation of community comanagement areas CCD s legal framework not comprehensive 7 to cover areas beyond the coastal zone leading to unregulated use of resources by communities Amendment to Coastal Conservation Act enabling co-management agreements to be made with CCD passed by end of Year 2 Amendment to Coast Conservation Act. Assumes that process already initiated by CCD does not meet hurdles from other government agencies Percentage of community members participating in the designing and implementation of co-management of selected ecosystems for sustainable land use No co-management plans at present 30% of the communities mobilized are participating in comanagement by the end of 2 nd Year 60% of the communities mobilized are participating in comanagement by the end of 4 th Year Participation records of the CBOs and community mobilisation reports 7 Coastal Conservation Act (CCA) 1981 enables co-management areas to be established only within the Coastal Zone as defined by the Act (300m from High Water Line but see paragraph 46 for full definition). However, Special Area Management sites extend landwards beyond the Coastal Zone and require an amendment to the CCA to allow establishment of community co-management agreements covering these ecologically significant sites 31

38 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Project strategy Objectively verifiable indicators Indicators Baseline Target Means of Verification Risks/Assumptions An information base on functions of, and services provided by, different coastal ecosystems of the east coast and their economic values Ad hoc and scattered information is available for some ecosystems but not related to their economic values Comprehensive information base available to stakeholders on functions and economic values of key coastal ecosystems of the eastern coast of Sri Lanka by end of the Year 1 30% of the targeted communities are aware of the economic value of the coastal ecosystems and contribute towards its conservation and sustainable use by end of the year 2 Information base Guides in Sinhala and Tamil languages 60% of the targeted communities are aware of the economic value of the coastal ecosystems and contribute towards its conservation and sustainable use by end of the year 4 32

39 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Project strategy Objectively verifiable indicators Indicators Baseline Target Means of Verification Risks/Assumptions Provide market-based incentives for ecosystems and sustainable land management targeting the local communities Insufficient incentives available at the start of project 30% of the targeted communities income is increased and dependence on un sustainable natural resources use is decreased the end of Year 2 60% of the targeted communities income is increased and dependence on un sustainable natural resources use is decreased the end of Year 4 Percentage cover of live hard coral at Pigeon Island reef** Currently healthy reef with over 70% live hard coral cover Maintain or increase present level by end of project High percentage or healthy live coral cover indicating the reefs ability to recover from a bleaching event due to climate change and preventing coastal erosion Field surveys Assumes El Nino effect or climate change does not lead to coral bleaching or mortality Assumes: live coral cover helps in adaptation to climate change and supports in coastal protection function and preventing coastal erosion 33

40 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Project strategy Objectively verifiable indicators Indicators Baseline Target Means of Verification Risks/Assumptions Number of Butterflyfish (best fish group for indicating reef health and ornamental fishing pressure) Currently 10* adult individuals per transect Current numbers increased or maintained by end of project Field Surveys Variations in natural recruitment may result in short-term population fluctuations Management plan for the Pigeon Island and its vicinity No Management plan is available for the Pigeon Island and its vicinity Management plan is completed by the end of Year 2 Detailed management plan for the Pigeon Island and its vicinity Creation of a Sanctuary for Pigeon Island Reef ensure conservation and sustainable uset Currently no marine areas under Protected Area Status nor community comanagement A 1km area around Pigeon Island is currently a buffer zone to the National Park Sanctuary/conservation area created to include X ha of marine coral reef by end of Year 2 Marine area under community comanagement is X* ha by end of Year 3 Gazettement of new Sanctuary boundaries Community comanagement agreements signed by CCD and DWC Assumes the process does not meet hurdles from the government agencies Fishing pressure Indiscriminate collection of ornamental species and destructive fishing using explosives 8 Sustainable collection of ornamental fishing according to the Comanagement plan by year 3 Physical verification of number of dives for ornamental fish collection Cessation of blast fishing in the sanctuary by year 2 Reported number of explosions 8 Number of Crown of Thorns Starfish, destructive fishing practices, and visitors will be determined by appropriate surveys to be undertaken as part of the PDF-B in the calm season March-August Since the period of the PDF-B has been reduced in order to speed initiation of a response to the tsunami, and because it commenced in August 2005, such surveys have not yet been possible. 34

41 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Project strategy Objectively verifiable indicators Indicators Baseline Target Means of Verification Risks/Assumptions Number of boats and visitors to Pigeon Island National Park and Sanctuary holding access permits No regulation of visitors or boats and no access permits are issued at start of project 2 Regulatory mechanisms in place and at least 50% of visitors hold access permits by end of Year 3 and 80% by Year 6 Physical verification by on site DWC/CCD officers Assumes willingness of DWC to implement a user fee system to the Marine National Park 35

42 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Project strategy Objectively verifiable indicators Indicators Baseline Target Means of Verification Risks/Assumptions Area of co-managed mangrove, coastal lagoons, and sand dunes along the east coast of Sri Lanka None at the beginning of the project About 9000 ha of coastal lagoons are directly affected by tsunami About 350 ha of coastal sand dunes affected by tsunami About 1300 ha of mangroves affected by tsunami Three community comanagement areas underway at the end of the Year 3 Six additional community co-management areas (at least one of each ecosystem) initiated by the end of the Year 5 Adaptation to climate change vulnerability is increased as a result of ecosystem restoration by the co-management of coastal ecosystems by Year ha of coastal lagoon restored by the end of Year 4 Community comanagement agreements signed by CCD and DWC for the east coast of Sri Lanka Progress reports and monitoring of the impact of the co-management Assume the community and local stakeholders and authorities ownership of the comanagement agreements 1,000 ha of coastal lagoon restored by end of Year 6 20 ha sand dune restored by end of Year 4 50 ha sand dune restored by end of Year ha mangrove restored by end of Year ha mangrove restored by end of Year 6 36

43 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Project strategy Objectively verifiable indicators Indicators Baseline Target Means of Verification Risks/Assumptions Lagoon fish catch per unit effort (daily catch/traditional nonmechanized craft) Fish catch is in a declining trend due to deposition of tsunami debris in lagoons, and present average is about 5-6kg/boat/day Sustainable fish catch shows gradual increase and average catch increases by at least 1kg/boat/day within 3 years of implementation of co-management Catch data from the lagoon fishers of Vakarai Natural colonization of Spinifex littoreus on the rehabilitated sand dunes None at start of project since no attempt made to rehabilitate sand dunes along the East Coast At least 10% of the rehabilitated sand dunes are coverage with Spinifex littoreus by the end of the Year 4 Field observations Project progress reports Presence of invasive alien species within co-management areas Presence and abundance of IAS in comanagement areas is currently unknown. It will be established in baseline surveys undertaken in year 1 since IAS spread extremely quickly IAS eradicated from comanagement areas of original demonstration sites by end of Year 5 and from replicated comanagement sites by end of Year 7 Field surveys Assumes that IAS are present in comanagement areas having being spread by tsunami Household incomes in comanagement areas: a) average incomes b) percentage of income derived from co-managed area Baseline to be established at commencement of comanagement of ecosystems 25% increase in average household income within 3 years of commencement of implementation of comanagement Field surveys Project progress reports 20% increase in income derived from comanaged area within 3 years of commencement of implementation of comanagement Output 3.1: Sympathetic enabling environment for community co-management of natural resources established 37

44 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Project strategy Objectively verifiable indicators Indicators Baseline Target Means of Verification Risks/Assumptions Activities: Expedite the Amendment to the Coast Conservation Act to provide a legal framework for CCD to establish co-management agreements within SAM sites Assist the Tsunami Environment Response Platform to conduct strategic environmental assessment (SEA) of the existing and proposed reconstruction programmes Design and implement an awareness/education campaign on restoration, sustainable use of coastal natural resources, and coastal vulnerability and adaptation, targeted at local communities Build capacity of CCD to introduce participatory natural resource management approaches among the relevant local communities and other stakeholders Develop and disseminate an information base on ecosystem functions and economic values Identify potential market-based incentive mechanisms for ecosystem management, and produce clear and practical How to adopt these guides for local stakeholders Output 3.2: Co-management of mangroves and coastal lagoon promoted at Vakarai to improve local livelihoods and foster sustainable land management Activities: Identify the boundaries of the co-management area in consultation with local communities including displaced farmers and other key stakeholders Develop community co-management plan and institutional mechanism for conservation management of mangroves and coastal lagoon in Vakarai in conjunction with demonstration of ecosystem restoration and control of invasive alien species Incorporate replanting of species such as Palmyra palms, Pandanus, and other species as appropriate into co-management plan to provide resources to communities and promote sustainable land management Facilitate effective implementation of community co-management plan to improve incomes with emphasis on pro-poor activities and support to households headed by women Undertake periodic monitoring and evaluation to assess the effectiveness of the management plan and to make changes where necessary Output 3.3: Co-management of sand resources promoted at Panama/Pottuvil to improve local livelihoods and foster sustainable land management Activities: Identify the boundaries of the co-management area in consultation with local communities including displaced farmers and other key stakeholders Develop community co-management plan and institutional mechanism for conservation management of coastal sand dunes at Panama/Pottuvil in conjunction with demonstration of ecosystem restoration and control of invasive alien species Incorporate replanting of species such as Casurina and other species as appropriate into co-management plan to provide resources to communities and promote sustainable land management Facilitate effective implementation of community co-management plan to improve incomes with emphasis on pro-poor activities and support to households headed by women 38

45 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Project strategy Objectively verifiable indicators Indicators Baseline Target Means of Verification Risks/Assumptions Undertake periodic monitoring and evaluation to assess the effectiveness of the management plan and to make changes where necessary Output 3.4: Co-management of coral resources promoted at Pigeon Island Activities: Identify the boundaries of the co-management area adjacent to the National Park, in consultation with key stakeholders Develop and facilitate effective implementation of community co-management plan and institutional mechanism for conservation management of Pigeon Island Coral Reef promoting sustainable livelihoods for local communities and user groups dependant on the natural resources of the reef to improve incomes with emphasis on pro-poor activities and support to households headed by women Strengthen the capacity of the Department of Fisheries and Aquatic Resources to work with the community to implement fisheries regulations effectively Strengthen the capacity of the Department of Wildlife Conservation (DWC) to manage Pigeon Island National Park effectively including establishment of a park office at Nilaveli and provision of a patrol boat Support DWC to develop a management plan for Pigeon Island and its vicinity, that meshes with the community co-management plan with the aim of establishing a Sanctuary to act as a strict conservation area for the core reef and limited resource extraction beyond Support the extension of existing biophysical monitoring conducted by the National Aquatic Resources Research and Development Agency to monitor reef health, and assess effectiveness of the project and make changes as appropriate Facilitate decision amongst enforcement agencies to identify and agree one agency to take the lead for the conservation and management of coral reefs outside of Protected Areas Outcome 4 Learning, evaluation and adaptive management increased Cognizance taken of lessons learned from demonstration activities and applied to other sites and planning systems 0 demonstration sites at start of Year 1 Lessons learned applied to at least six other sites along East Coast by end of Year 5 Project progress reports References to project activities in planning documents, project reports, press releases Assumes qualified, experienced and affordable project and technical staff are available Risk: Capacity of national institutions, already stretched by the post-tsunami reconstruction, are able to deliver on project activities 39

46 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Project strategy Objectively verifiable indicators Indicators Baseline Target Means of Verification Risks/Assumptions Positive monitoring and evaluation reports, both internal and external First evaluation report IFAD - GEF Mid-term and Terminal Evaluation reports show impact of project activities Project progress reports Monitoring and Evaluation reports by IFAD-GEF Minutes of PSC, and other advisory meetings Output 4.1 Project management structure established and operational Output 4.2 Project monitoring, evaluation, reporting and dissemination systems and structures established and operational Output 4.3 Establishment of appropriate monitoring schemes at selected sites to assess progress and impact of restoration interventions and policy and planning changes 40

47 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Updated logical framework as provided by the GEF project team (revised following the 2013 MTR): Outcome (component) Output Activities Develop and demonstrate best practices for effective restoration and sustainable management for key ecosystems and CC adaptation Develop communityled restoration practnices Baseline studies for flora and fauna Vulnerability mapping Establish/scale up guidelines for practitioners and policy makers Develop mangrove restoration guidelines Develop Guidelines for sand dunes Develop Guidelines for Fisheries Management Establish information system for practitioners and policy makers Develop Guidelines for establishment of information system Establish information Centre at District Secretariat and support activities (meetings with other agencies and schools) Provide support to the information center officers (ERAU) equipment and training Mainstream restoration and sustainable management options into planning Review and revise existing policy framework Desk study (research) policy review info (consultancy) Survey opinion and perceptions Undertake review workshop and identify gaps Ensure to incorporate disaster risk management into national planning system Empower disaster risk committee Identify safe locations and include them in national level policy Facilitate updating vulnerable areas mapping Ensure to incorporate disaster risk management into provincial coordinating mechanism Empower disaster risk committee (at district level) Identify safe locations and include them in provincial level policy Facilitate updating vulnerable areas mapping (ERAU) Supervise and facilitate postdisaster reconstruction activities to include ecosystem restoration and adaptation Train other implementation agencies Hold KM workshop Attend and influence district coordinating committees Help the provincial council to lead comanagement approach to be replicated Raising aware of provincial council authorities Pilot testing of comanagement restoration led by provincial authorities Empower communities to manage the local natural resources and enhance sustainable livelihoods and adaptation to climate change Establish community coordinating mechanism Formation of Community Coordination Committee and engage all stakeholders into consultation meetings Increase awareness of communities Provide marketbased incentives Prepare comanagement plan for mangroves and lagoons (Vakarai) Identification of boundaries Prepare comanagement plan (SAM sites) Replanting species Prepare comanagement plan for sand dunes (Panama/ Pottuvil) Identification of boundaries Prepare comanagement plan (SAM sites) Replanting species Prepare comanagement plan for coral reefs (Pigeon) Identification of boundaries Prepare comanagement plan (SAM sites) Replanting species 41

48 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Stakeholder meeting Document pilot cases SAM Pigeon Island Guidelines for solid waste management Briefings on key policy issues Develop and disseminate information on ecosystem functions and values Review and refine existing needs and assessment Capacity building of communities (to organize meetings/ facilitation/ leadership) Facilitate implementation for Comanagement Periodic monitoring and evaluation of ecosystem status Capacity building of government officers Green Belt and other infrastructure Facilitate implementation for Co-management Periodic monitoring and evaluation of ecosystem status Vegetation Belt Provide alternative income generating activities Facilitate implementation for Comanagement Periodic monitoring and evaluation of ecosystem status Capacity building of dept Fisheries and DWC Develop management plan Goal Indicator 1. (Mainstreaming) Coastal zone Management planning at national level includes ecosystem restoration at the national level planning 2. (Mainstreaming) DRM at national and provincial levels 3. (sustainable livelihoods) Education, nutrition, housing, income improved 4. (vulnerability to CC reduced) Areas of ecosystem that can mitigate the CC impacts are well established (Mangroves, Sand dunes and coral reefs) 5. (Resilience increased) the number of communities whose resilience is increased 6. (Status of ecosystem) Number of species living in the key ecosystems Outcome #1 1. (yes/no) Guidelines on restoration developed for each ecosystem 2. (yes/no) Guidelines on adaptation developed for each ecosystem 3. # of community-led and cost-effective practices are piloted in accordance with guidelines Outcome #2 1. (Yes/No) ERAU is functioning (see whether it s established institutionally, conducted trainings, and attended meetings) 2. Interministerial environment coordination committee meetings are functioning (- perhaps under the first one on ERAU check and decide whether to remove) 3. # of replication of the best practices (through provincial) 42

49 Appendix 2: Updated logical framework: Progress against objectives, outcomes and outputs Outcome #3 1. (Yes/No) Legally designated areas to integrate community co-management 2. # of community committees actually involved in design/implementation/consulted 3. (Ecosystem healthiness/status) based on the logframe: Pigeon SAM, Panama SAM, Vakaria Lagoon SAM (specific indicators to be developed by Chandra based on the current indicators and with reference to the ERNM biophysical monitoring) 4. # of women involved in income generating activities Outcome #4 1. Learn, increase adaptive management (enable adaptive management) 2. Monitoring and evaluation 43

50

51 Appendix 3: Summary of key actions to be taken within agreed timeframes Appendix 3: Summary of key actions to be taken within agreed timeframes Action Area Action Agreed Whom Date Progress Project Implementation Outputs Finalize and submit the 2016 AWPB and PP for N-O PMU 31 January 2016 Develop and define the exit strategies to be pursued in the remaining PMU 12 February 2016 timeframe of the project Recruit temporary assistance (assignment basis) for procurement PMU Immediate Implement close monitoring of the AWPB with progress reporting PMU Continuous every two weeks Prepare TORs for the overall impact assessment for IFAD No- PMU 12 February 2016 Objection Ensure all SP impact surveys and final reports are submitted PMU 31 May 2016 Take appropriate action to ensure the NCZ&CRMP is submitted and Ministry of 30 March 2016 passed by Parliament Act Environment Include vulnerable Thennamaravady village in the project livelihood PMU and SP Immediate development programme Complete construction and equipping of information centres in District Coordinators 31 May 2016 Batticaloa and Ampara Develop an Action Plan to commercially operate the Kinnya solid District Coordinator 29 February 2016 waste management system, and replicate the system in Kuchchively (Trinco) Establishment of a Research and Information centre in Arugam bay PMU 30 September 2016 Removal of sand and debris of the Komari lagoon PMU 15 June 2016 All demarcation works to be completed by April (with the exception of Batticaloa lagoon for July) PMU 30 April 2016 (July 2016) Kottukal lagoon declared as a conservation area with official PMU 30 April 2016 documentation available All civil works (toilet units, access roads) except for Pigeon Island PMU 31 July 2016 Information Centre to be completed Finalize and disseminate the digitization of the vulnerability maps PMU 31 March 2016 All trainings and exposure visits to be completed by end August PMU 31 August 2016 Submit and ensure a Parliament Act is passed on the co-governance PMU 31 March 2016 regulations for empowering lagoon fishery management in Kokilai lagoon and other areas identified by the project Streamline the bio-diversity task force conceptualised in Ampara and PMU/District 30 April 2016 replicate in other districts if feasible Coordinator (Ampara) Consolidate and further disseminate the lessons and knowledge products on community co-management in ecosystem restoration/ PMU/District Coordinators Continuous 45

52 Appendix 3: Summary of key actions to be taken within agreed timeframes Fiduciary Aspects protection restoration Complete all initiated and planned construction works for Pigeon PMU October 2016 Island Request N-O for extension of the livelihoods SP, with amended TORs PMU Immediate Ensure all CBOs are registered PMU 29 February 2016 Establish an MoU with NADeP for rural finance and access to credit PMU and NADeP 29 February 2016 Together with the Forest Department officials, develop a management PMU 12 February 2016 and development plan for the eco-park in Vakarai Submit KM Action Plan for IFAD N-O PMU Immediate Submit concept note for establishing the national database/ PMU Prior to NSC meeting information centre Document conservation practices that have so far been implemented, to contribute to a national database in the CC&CRMD, and which will facilitate policy dialogue 1. Ensure all completion procedures/requirements are followed (delivery of all goods/works/services, closing of field offices and termination of staff contracts, final inventory and handover of assets, financial monitoring and completion and audit reports) 2. Implement an efficient budget monitoring system: input of 2016 AWPB in Tally, monthly generation of budget-to-actual statement and analysis of budget variances during a monthly budget review meeting chaired by the Project Director, with the participation of the Project Manager, Finance Officer, Procurement Specialist and Field Project Coordinators 3. Update cash forecast twice a month and monitor advances to Special Account to ensure full recovery by grant closing date 4. Monitoring of disbursements up to closing: a) revise expected disbursements table based on the approved 2016 AWPB and the finalized 2017 expenditure forecast, b) update the schedule of commitments on a monthly basis and c) update the expected disbursements table each month based on actual data and revised/updated forecasts 5. Closely monitor operation & maintenance costs to avoid overspending 6. Claim equipment expenditure in coming WAs under categories II and III (not IV) 7. Ensure complete supporting documentation is maintained for SOEs: a) Use purchase order systematically b) Use an internal goods received note if delivery note is not available from supplier PMU Project Manager Finance Officer Finance Officer Project Manager Finance Officer Finance Officer Finance Officer Finance Officer Finance Officer Immediate and continuous 31/12/ /02/2016 and monthly Continuous 15/02/2016 and monthly Continuous Continuous Continuous 46

53 Appendix 3: Summary of key actions to be taken within agreed timeframes c) Payroll statements to be signed by Finance Officer and approved by Project Manager d) Ensure documentation in support of SOEs is complete (including for field office expenditure): purchase order/contract, invoice, evidence of completion, payment voucher, receipt 8. Prepare contract monitoring forms (C11) for all on-going and new contracts 9. a) Prepare schedule to justify the exchange rate difference in the special account reconciliation b) Use the correct exchange rate in WAs (FIFO method) starting January 2016 c) Claim USD equipment expenditure in the next WA under Category IV 10. a) Bank reconciliations to be signed and dated by Accounts Assistant as preparer b) Ensure clearance of reconciling items on a timely basis 11. Maintain an Excel advance schedule to facilitate monitoring and ageing of advances to FPOs 12. Ensure Auditor General s audit TOR are aligned with IFAD requirements b) Start audit work by early April 16 c) Ensure 2015 audit report is submitted on time 13. Plan the 2016 and 2017 audits as early as possible to avoid submission delays 14. Update, monitor and revise procurement plans and submit revision to IFAD for approval. 15. Revise the procurement plan for consultancy services establishing IFAD prior review for consultancy services procurement. 16. Ensure compliance in procurement procedures and process and undertake adequate and substantiated evaluation of technical proposals with the assistance of technical experts (as needed) in the evaluation panels. 17. Negotiate consultancy contracts requiring the contracted party to confirm availability of core experts and manage changes and variations prior to contract signature. 18. Monitor, manage changes and variations in contracts when scope of work, term and conditions and delivery of outputs are revised or delayed 19. Manage and secure extensions of advance guarantee's with issuing bank on the associated contract prior to it expiry. 20. Update and monitor contract and contract payment registers and Finance Officer Finance Officer Accounts Assistant Finance Officer Finance Officer Auditor General Finance Officer and Project Manager Auditor General and Finance Officer PMU PMU PMU PMU PMU PMU Continuous 31/01/2016 Continuous 15/02/2016 Continuous Continuous 29/02/ /04/ /06/ /12/2016 Periodically 29/01/2016 Periodically Periodically Periodically Periodically 47

54 Appendix 3: Summary of key actions to be taken within agreed timeframes logs and submit these logs to IFAD on a monthly basis 21. Ensure procurement records and communication are managed systematically. File and manage bank guarantees and performance guarantee in separately a secured manner 22. Select and recruit a temporary procurement assistant to support the procurement officer PMU PMU PMU Periodically Periodically 15/02/

55 Appendix 4: Physical progress measured against AWP&B, including RIMS indicators Appendix 4: Physical progress measured against AWP&B, including RIMS indicators (N/A) Cumulative outreach as reported by the Project Team (as at January 2016): S.No Activities Output/Outcome Training of Post-harvest technology for selected beneficiaries in Vakarai Garbage and compost bins distributed to the lagoon border communities with the training on organic home gardening Forming and strengthening the CBDRM Committee in Nasivanthivu 4 Establish lagoon management committees in Vakarai 5 6 Consultation with farmer organizations to introduce best organic farming practices to minimize the effect to the lagoon and mangroves with the co-management Construction of 175 toilet units to reduce fecal pollution in the Panichenkerny lagoon and wetlands 7 Renovation of Thona (canals) in Batticaloa District 8 9 Strengthen and facilitate the CBDRM committee at Sathrukondan and Sallitivu villages. Establishment of forest park for creation of awareness and as a community market 10 Livelihood support program for vakarai. Improve income with emphasis on pro-poor activities and support households headed by women Introduce climate change adaptation practices to the community Number of beneficiaries Male Female Community trained with Disaster Risk Management Practices Strengthening community members (Fishermen & women) to act as the key stakeholders for sustainable natural resource management Promote participatory planning and community-led implementation of activities aiming at minimizing climate change impacts through the improvement of the quality of the ecosystems Undertake community-led restoration of mangroves and coastal lagoon at Vakarai Promote participatory planning and community-led implementation of activities aiming at minimizing climate change impacts through the improvement of the quality of the ecosystems Promote participatory planning and community-led implementation of activities aiming at minimizing climate change impacts through the improvement of the quality of the ecosystems Provide resources to communities and promote sustainable land management Facilitate effective implementation of community co-management plan to improve incomes with emphasis on pro-poor activities

56 Appendix 4: Physical progress measured against AWP&B, including RIMS indicators Planting of economic value plants for lagoon boarder families at Vakarai Supply of energy efficient stoves to the lagoon border community in order to reduce the destruction of mangroves for firewood purposes Develop landing place with floating jetty for development of eco-tourism in Urani /Pottuvil 14 Establishment of 50ha green belt in Panama-Pottuvil 15 Establishment of 20ha of fuel wood plantation at komari 16 Re-plantation program on panama sand dune with panama school student 17 Komari lagoon demarcation 18 Fish restocking program in Komari lagoon 19 Removal of tsunami debris from the Komari lagoon 20 Arugambay beach access road development program 21 Pottuvil lagoon demarcation 22 Karathive thona rehabilitation 23 Sustainable fisheries management workshop Provide resources to communities and promote sustainable land management Undertake community-led restoration of mangroves and coastal lagoon at Vakarai Participatory planning and community-led implementation to ascertain most effective means of restoration of key ecosystems Incorporate replanting of species such as Casuarina and other species as appropriate into co-management plan to provide resources to communities and promote sustainable land management Establishment of a vegetation belt and other suitable species to protect the ecosystem and identification, drought resistant and salinity tolerant varieties of agricultural crops both to promote sustainable land management and to protect dry lands from the impacts of climate change Incorporate replanting of species such as Casuarina and other species as appropriate into co-management plan to provide resources to communities and promote sustainable land management Participatory planning and community-led implementation to ascertain most effective means of restoration of key ecosystems Participatory planning and community-led implementation to ascertain most effective means of restoration of key ecosystems Participatory planning and community-led implementation to ascertain most effective means of restoration of key ecosystems Undertake community-led restoration of sand dunes at Panama/Pottuvil Participatory planning and community-led implementation to ascertain most effective means of restoration of key ecosystems Participatory planning and community-led implementation to ascertain most effective means of restoration of key ecosystems Promote participatory planning and community-led implementation of activities aiming at minimizing climate change impacts through the improvement of the quality of the ecosystems

57 Appendix 4: Physical progress measured against AWP&B, including RIMS indicators Establishment of bio diversity task force Support the DMC for School Disaster Management Training program organized by DMC Ampara Rehabilitation of canals in Kinniya mangrove reservation area for flood mitigation and livelihood enhancement 27 School awareness on ecosystem restoration Strengthening and capacity of Kokkali Lagoon fishing community Creating awareness on best practices of SWM for local people in Kinniya UC limit & Kuchchveli Pradesha saba area Creating awareness on best practices of Solid Waste Management for local people along the rehabilitated canals in Kinniya Establishment of Lagoon Management Committee in Kokkilai lagoon Support District Secretaries to strengthen District-level environmental coordinating mechanisms Design and implement an awareness/education campaign on restoration, sustainable use of coastal natural resources, and coastal vulnerability and adaptation, targeted at local communities Participatory planning and community-led implementation to ascertain most effective means of restoration of key ecosystems Support DWC to develop a management plan for Pigeon Island and its vicinity, that meshes with the community co-management plan with the aim of establishing a Sanctuary to act as a strict conservation area for the core reef and limited resource extraction beyond Demonstration of replication of ecosystem restoration, sustainable use through community-based co-management of coastal ecosystems and adaptation to climate change Demonstration of replication of ecosystem restoration, sustainable use through community-based co-management of coastal ecosystems and adaptation to climate change Participatory planning and community-led implementation to ascertain most effective means of restoration of key ecosystems Community-based co-management of coastal ecosystems and adaptation to climate change promoted

58 Appendix 4: Physical progress measured against AWP&B, including RIMS indicators Progress as reported for the period July 2013 June 2014: Period: 01-July-2013 to 30-June-2014 Impact and Outcomes Impact level Overall Goals: Restoration and management conservation of globally important ecosystems affected by the tsunami mainstreamed into the reconstruction process to support sustainable livelihoods and reduce vulnerability to climate change along the East Coast of Sri Lanka. Outcome level Component 1 Best practices for effective restoration and sustainable management of key coastal ecosystems with integration of adaptation to climate change vulnerabilities developed and demonstrated Component 2 Effective ecosystem Restoration and Conservation management are mainstreamed into post-disaster reconstruction planning and implementation Component 3 Coastal communities and local stakeholders empowered to manage local natural resources to enhance sustainable livelihoods and adaptation to climate change vulnerabilities Output level Outputs by component Output 1.1 Best practices developed and demonstrated for community-led restoration and sustainable management of globally important ecosystems Indicator (Physical) Targets AWP&B (planned) Actual (achieved) % Establish Baseline Inventories of flora and fauna in the Identified key ecosystems in three districts Periodic Update of socioeconomic data for the communities involved with restoration demonstration sites and compiling of data and information in other selected sites for restoration a) Participatory Planning & management of Komari Lagoon, Ampara: community awareness and Mobilization, enhance natural productivity of lagoon and demarcation with concrete poles; b) Preparation of Komari Lagoon Environmental profile; c) Participatory Planning & management of Potuwil Flora and fauna inventory established, with 1 completed report available Monitoring Assistants in 03 Districts are collecting available socioeconomic data. 3 reports available. Rest will be Outsourced a) Concrete pillars- 450, area-10 km², support for Solid Waste management; b) 1 profile available; c) Complete 06 Awareness Programs and 02 Stakeholder meetings. Proposal was submitted to purchase 700 concrete a) 85 b) 25 c) 40 d) 40 e) 25 f) 60 g) 0 h) 95 i) 30 Overall Design (Global) Cumulative (so far) By middle of Year 3, 1. Baseline studies for Flora and Fauna pilot tests for The preparation of environmental profile for restoration of Periyakalappu lagoon in Ampara is in progress by mangroves, sand using the bio diversity study conducted by IUCN. dunes and coastal Basic ecological data on Sathurukondan wetland and lagoons Nasivanthivu mangrove resources in Batticaloa has complete been collected. Preparation of an Ecological profile for Thambalagamuwa Bay in Trincomalee is being progress. 2. Vulnerability mapping Thennamaravady, Senthur and Erakakandy villages in Trincomalee district were identified as vulnerable to coastal hazards. Community mapping (disaster awareness creation, training on evacuation during a disaster etc.) also completed. 3. Stakeholder meetings Ampara Nine stakeholder meetings in Batticaloa District namely District level meetings (03), Divisional level meeting (02), SAM area CCC meeting (04) were conducted. In Trincomalee four meetings as One Disaster Management, Two Solid Waste Management meetings and one education meetings were % 75 52

59 Appendix 4: Physical progress measured against AWP&B, including RIMS indicators Lagoon, Ampara: community awareness and Mobilization, enhance natural productivity of lagoon and demarcation of the lagoon reservation in critical areas; d) Study on impacts of waste water disposal into Potuwil lagoon and lake and come up with recommendations to resolve the issue; e) Establishment of Mangrove learning centre at Nasivanthive; f) Participatory management of Kinnya Mangrove forest,trincomalee: Providing assistance to Kinnya Prasheshiya Shabawa to solve the issue of solid waste dumping in mangrove areas; g) Study on kinnya mangrove ecosystem and come up with values and technical recommendation for conservation; h) Survey and demarcation of mangrove area to be conserved in Kinnya (Upparu); & i) Preparation of environmental profiles for Puduvaikattu, Erankkandy and kokilai lagoon Demarcation Lagoon reservation at Vasari by erecting Concrete pillars a) Establishment of a sand dune conservation and management awareness centre; b) Rehabilitate tsunami damaged sand dunes in Panama with using appropriate engineering techniques; & c) Design & construct a beach park and barrier wall to protect sand dunes from illegal sand removal poles; d) study Awarded to University of Ruhuna. Ongoing; e) A need assessment was awarded to Eastern University; f) ongoing g) h) 1000ha Completed i) Recruited the Consultant. Ongoing, completed only Socioeconomic data completed a) acquired suitable land b) CCD completed engineering and technical conducted. In Ampara 02 SAM area meetings, one district level meeting and three divisional meetings were held. 4. Document pilot cases Fish seedling stocking at Komari Lagoon to enhance the productivity, Demarcation and survey of Komari Lagoon and provision of drinking water for 200 families in Selvapuram, Komari were completed in Ampara District. Demarcation of Vakarai, lagoon reservation, Establishment and demarcation of Sathurukondan wetland site, Introducing salinity tolerance agricultural practices in 16 Thimilathivu village with organic farming are in progress. In Trincomalee demarcation of Upparu mangrove forest covering 359 hectares was completed. Providing assistance to UC Kinniya to complete fully equipped compost yard is in progress 53

60 Appendix 4: Physical progress measured against AWP&B, including RIMS indicators a) Beach access development in Potuwil, Arugam bay (continued from 2012); & b) Arugam bay Disaster Risk Reduction and environmental enhancement plan preparation and implementation estimations c) UDA designed a survey plan. Land issue exists a) Preparation of joint district level implementation plans with DMC for disaster risk reduction in the coastal areas of three districts and implement the identified initiatives; b) Two district level workshops for introduction of Disaster Risk Reduction Manual; c) Providing Technical training for the project staff to implement CBDRM and climate change adaptation initiatives; d) Community led implementation of climate change impact mitigation initiatives: Facilitate for community water supply project at Komari; e) Assist to Department of Forest for demarcation of Hada oya Forest reserve; f) Community led implementation of climate change impact mitigation initiatives : Providing life 20 jackets suitable for Women and Children and one motor boat for Nasivanthive community; & g) Construction of Panama -Modara Beach access to reduce vulnerability of Panama fishing community Output 1.2 Best practices and Policy guidelines on practical restoration and conservation management Development and Printing of guidelines for practical restoration of mangrove, coral, sand dunes and lagoon ecosystems By end of Year 3 best practice guidelines for ecosystem restoration in coastal Preparation of the National Coastal Zone and Coastal Resource Management Plan are in progress, the final draft is almost ready for the consultative process. National guidelines for implementing SAM plan in identified locations are being progressed. Develop 05 54

61 Appendix 4: Physical progress measured against AWP&B, including RIMS indicators of coastal ecosystems a) Preparation of a guidebook for Special Area Management Planning and Implementation; & b) Development of guidelines for solid waste disposal in coastal areas and disseminate among local authorities and other relevant agencies areas developed for mangroves, sand dunes, and coral reefs Terms of Reference to develop guidelines for mangroves, sand dunes and fisheries management. The SAM plan of Pigeon Island which covers the guidelines is in progress. Solid waste management plans for Kinniya and Kuchchaveli were prepared and ready to be implemented. Output 1.3 Central information base established at CCD as repository for all work on ecosystem restoration and coastal Adaptation to climate change Output 2.1 Policy Framework reviewed and restructured to support the restoration, sustainable use of coastal natural resources and adaptation to climate change Output 2.2 Requirement to incorporate restoration of coastal ecosystems and adaptation measures for climate change vulnerabilities introduced into the central national planning system for all tsunami reconstruction project Output 2.3 Restoration and a) Detailed island wide coastal habitat survey and mapping for use of resource conservation, disaster management and development planning; & b) Recruiting an information management expert to design a comprehensive information base, through collection and documentation of required information and design an appropriate information management system No activities scheduled for the reporting period Support CCD to prepare NCZRMP Plan for Sri Lanka to incorporate ecosystem restoration, co-management and community adaptation for climate change. a) Support District Secretaries to strengthen district level 0 By middle of Year 3, pilot tests of improvement and protection methodologies of key coastal ecosystems mangroves, estuaries and coastal lagoons complete The establishment of information centers in Batticaloa and Trincomalee are in progress. Due to the shifting situation of the District Secretariat office of Batticaloa, actions have been taken to establish the centre in the CCD office, Batticaloa. In Trincomalee the establishment of Information centre is in progress. Funds have been allocated to purchase equipment for Batticaloa and Trincomalee Districts. Information center in Ampara has not yet established. 0 None 0 By end of Year 1, CZMAP is completed for the Eastern Province and includes ecosystem restoration and adaptation to climate change as an integral part of the plan By middle of Year 2, monthly 90% of the National Coastal Zone Resource Management Plan (NZCRMP) is completed. Expect to start public consultation in the 3rd week of August to finalize the plan. The plan will ensure the disaster risk management through Disaster Risk Committee for effective utilization. Information was given to identify safe locations to the District Management Committee/ Disaster Management Ministry. District level Project coordinating Officers (DPO) participate in disaster risk reduction committees and

62 Appendix 4: Physical progress measured against AWP&B, including RIMS indicators sustainable use of coastal ecosystems incorporated in to Eastern province planning systems Output 2.4 Specialized Ecosystem Restoration and Adaptation Unit created within the coast conservation Department to provide facilitation and supervision for post disaster projects Output 2.5 Help the provincial council to management approach to be replicated environmental coordinating mechanism through providing technical and funding assistance to solve identified environmental issues; & b) Study tour to an Asian country to enhance technical know-how of environment management of key officers in district environmental coordinating committees Establishment of Technical Coordinating Committee to provide technical inputs for resolving implementation issues a) Procurement of Computers, GPS and other equipment for the ERAU; b) Build the technical capacity of the unit through local trainings; & c) Tailor made training course in a foreign institution for the ERAU and selected CC&CRMD officers Raising awareness of provincial council authorities; Pilot testing of co-management restoration led by provincial authorities environmental coordination meetings held between relevant Government agencies and international and local humanitarian agencies and donors to facilitate effective ecosystem restoration as an integral part of post-tsunami reconstruction. Specialist Ecosystem Restoration and Adaptation Unit fully trained and operational by end of Year 3 provided information on risk management during the reporting period. Safe locations were identified with the assistance of Ministry of Disaster Management and the Coast Conservation Department which helps to reduce the potential impacts of future hazards. District Disaster Management Centers have prepared risk profiles and detailed vulnerability mapping. The project has provided assistance to implement some of the identified risk reduction actions. Establishment of ERAU information centre is in progress. Three success stories have been prepared for the KM workshop. Project DPOs play a key role in influencing the decision making regarding coastal issues at DCC meetings. One workshop for provincial council authorities on ecosystem conservation at Nasivanthivu and Sathrukondan of Batticaloa District was conducted. Also an exposure visit to Vakarai SAM site also conducted during the reporting period. Raising awareness of provincial council authorities is very useful for mainstream restoration and sustainable management options in to planning. 50 Restoration of damage lagoon environment in Kinniya and restoration of damaged sand dune system in Panama were undertaken during this period with the leading role of respective local authorities. In addition, Pottuvil local authority in Ampara played a leading role in Management of lagoon resources. 56

63 Appendix 4: Physical progress measured against AWP&B, including RIMS indicators Output 3.1 Enabling environment for community comanagement of natural resources and adaptation to climate change vulnerability established Two district level workshops for Awareness creation on new legal provisions of revised CCA Amendment to Coastal Conservation Act enabling comanagement agreements to be made with CCD passed by end of Year 2 Establish community coordinating mechanism Community coordination committee forums have been established in all districts. In Batticaloa, Co-group leaders fishermen, women, farmers, rural development societies, government officers etc. are the major stakeholders in CCC while in Hoteliers and Navy are included as stakeholders in Trincomalee. In Ampara Community Coordinating Committee comprises of fishermen, hoteliers, fisheries organizations, farmer organizations, three wheel association are being the active participants. 100 Increase awareness of communities; Monthly meetings were conducted in Batticaloa district to increase the awareness in Community coordination committee members. Eco-Tourism, sanitation, micro credit for women were the major areas covered.. In Trincomalee two meetings were conducted during the reporting period. Provide market based incentives; Link to market outlets, exhibitions, sale centers, provision of food and processing equipment and micro credit facilities were the major market based incentives provided in Batticaloa District during the reporting period while facilities for ornamental fish production, crab fattening and fish processing facilities were given in Trincomalee. In Ampara home stay programme is in progress aimed at expanding tourism industry. Develop and disseminate information on ecosystem functions and values; Awareness programmes, leaflets, exhibitions, posters, speech and art competitions on mangrove and coral reef conservation were conducted during the reporting period. Capacity building of communities; Capacity building of communities contribute significantly empower communities to manage local natural resource and enhance sustainable livelihoods and adaptation to climate change. Communities comprising women societies, fisheries societies, farmer societies were participated. Output 3.2 Co management of Survey and gazette under an appropriate legal provision 30% of the communities Identification of boundaries; The survey plan of Panichankerny lagoon was handed over to the Forest 50 57

64 Appendix 4: Physical progress measured against AWP&B, including RIMS indicators mangroves and coastal lagoon promoted at Vakarai to improve local livelihoods, foster sustainable land,management and to minimise climate change impacts the boundaries of the reservation area at Vakarai Participatory planning and documentation of Comanagement plan for Vakarai a) Establishment of Forest Park( Continued from 2012) for creation awareness and as a community market; b) Replanting of coastal vegetation in 02 ha in Kinnya; c) Planting of economically important plant species like coconut, cashew, Palmyra and fruit plants; & d) Green Belt establishment as bio shields against natural hazards Livelihood development and enhancement to improve incomes with emphasis on propoor activities and support to households headed by women mobilized are participating in co management by the end of 2nd Year 30% of the targeted communities are aware of the economic value of the coastal ecosystems and contribute towards its conservation and sustainable use by end of the year 2 Department through District Secretariat to declare the area as a conservation area under the forest ordinance. Prepare Co-management plan; Data and information collected and submitted to the SAM consultant. Community organizations have been strengthened to undertake implementation of management strategies. Replanting species; Casuarina, coconut, pomogranade, mango, orange, guava, cashew and forest plants were the replanting species distributed during reporting period. The total number of distributed plant species was over Facilitate implementation for co-management; Construction of awareness hall in Vakarai, Provide toilet facilities to lagoon boarder families to minimize the fecal pollution into the lagoon, preparation of mangrove plant nursery, gap identification and restoration of mangroves, conducting world environment day programme, conducting beach cleaning in Sallitivu, preparation of video documentary for Vakarai SAM and replicates, establishment of Panichankery Lagoon management committee, Survey and gazette arrangements to conserve the mangroves as conservation forest under the forest ordinance, provide motor boat to Panichankerny Ecotourism society in Vakarai and construct boat landing strip with visitor hall and toilet unit for lagoon boat safari tourists at Panichankerny In Batticaloa District were completed during the reporting period. Periodic monitoring and evaluation of ecosystem status; ERAU officers were trained in periodic monitoring and evaluation of ecosystem status. Capacity building of government officers; One meeting on capacity building for the government officers conducted. Alternative income generating activities; Initial activities such as selection of beneficiaries, awareness programmes, technical training programme have been completed during the reporting period. 58

65 Appendix 4: Physical progress measured against AWP&B, including RIMS indicators Output 3.3 Co-management of sand resources promoted at Panama /Pottuvil to improve local livelihoods, foster sustainable land management and to minimise climate change impact Demarcate, Survey and gazette the Critical areas of the dune system as a conservation area under the CC&CRM Act a) Develop community comanagement plan and institutional mechanism for conservation management of coastal sand dunes at Panama/Pottuwil and plan documentation; b) Awareness creation and education on coastal sand dunes, conservation and management among stakeholders; & c) Promote alternative livelihoods for selected women headed families a) Replanting of coastal vegetation in 50 ha as a biopsied against natural hazards; & b) Planting of economically important plant species like coconut, cashew, Palmyra and fruit plants 30% of the communities mobilized are participating in co management by the end of 2 nd Year. 30% of the targeted communities are aware of the economic value of the coastal ecosystems and contribute towards its conservation and sustainable use by end of the year 2 Prepare co-management plan for sand dunes (Panama/Potuvil) Boundary Identification; Demarcation in Komari and Pottuvil lagoon reservations has been completed. In addition 18ha of rich and unique mangrove patch in Sasthraveli in Ampara district has been completed. 1 km of critical sand dune area identified and demarcated. Prepare the co-management plan; Data and information collected. Two stake-holder meetings conducted and handed over data and information to the SAM consultant. Replanting species; Completed the distribution of 15,000 coconut seedlings for the year 2012 and 2013 during the reporting period. Distributed 5510 orange and 9910 Mango plants during this year. Facilitate implementation for co- management; Number of identified initiatives through SAM planning process has been completed. Six beach access roads were completed in 2013 and another nine have been identified for reconstruction. Periodic monitoring and evaluation of ecosystem status; Periodic monitoring and evaluation is undertaken by the Community Coordinating Committee and the project. 60 Output 3.4 Co-management of coral resources promoted at Pigeon Island Support to households headed by women to undertake a home-stay programmed as a mean of income generating activity (Community based ecotourism) Undertake periodic monitoring and evaluation to assess the effectiveness of the management plan and to make changes where necessary a) Provide facilities foe the demarcation of Park Boundary; & b) Develop design, plans and estimates and Establish a visitor control facilities and Pigeon island management and 0% of the targeted communities for ecosystems and sustainable land management targeting the Vegetation belt; Vegetation belt of 50 hectares forest has been established. Provide alternative income generating activities; Initial activities have been undertaken during this period to implement Home stay programme in Panama area. Identification of boundaries; Boundary of the SAM area covering five GS divisions namely Erakkandi, Nilaweli, Gopalapuram, Vellure and Valaiuththu completed. Also 1 km radius of the Pigeon Island ias park boundary was identified. The demarcation of the reservation area of Sampalthivu lagoon has been 30 59

66 Appendix 4: Physical progress measured against AWP&B, including RIMS indicators information centre Support DWC to develop a Park Management Plan for Pigeon Island and its vicinity Facilitate for the comanagement process through awareness creation, coordination and consultation local communities the start of project income is increased and dependence on un sustainable natural resources use is decreased the end of Year 2 initiated. Prepare of co-management plan; Co-groups were formulated. The opinion survey and strengthening of community organizations to undertake management initiatives have been completed. Facilitate implementation for co-management; Zoning scheme identified through the SAM planning process has been initiated. Periodic monitoring and evaluation of ecosystem status; Bio physical monitoring is in progress. Capacity building of Department of Fisheries and DWC; Three awareness meetings for Department of Fisheries and one for Department of Wild life officers were conducted. Output 4.1 Monitoring, evaluation, reporting and dissemination systems established and operational a) Recruitment of a Monitoring and evaluation consultant b) Development and establishment of a Monitoring system to capture the effectiveness of project interventions c) Short-term foreign training on Project Management Monitoring and Evaluation for Project Manager and PFO Establishment of appropriate monitoring schemes at selected sites to assess progress and impact of restoration interventions and policy and planning changes and replication of best practices outside of province Develop management plan; Park management plan has been prepared with the Collaboration of Wild life Department. Consultant for the Monitoring and Evaluation and Three Monitoring Assistants for Ampara, Batticaloa and Trincomalee are working on monitoring of the project. The physical and financial reports are being prepared in monthly and quarterly base and also the issues of each activity from all the three districts are being reported to the Project Management Unit. Information and data on Output activity indicators are being collected and analyzed. OTIP plan has been prepared and collection of data and information for the OTIP plan is in progress

67 Appendix 5: Financial: Actual financial performance by financier; by component and disbursements by category Appendix 5: Financial: Actual financial performance by financier; by component and disbursements by category Table 5A: Financial performance by financier Financier Approval (USD '000) Disbursement (USD '000) Per Cent Disbursed GEF grant % Government % TOTAL % Table 5B: Financial performance by financier by component (USD 000) IFAD Government Total Component Approved Actual* % Approved Actual % Approved Actual % 1. Best practices for restoration and management of coastal ecosystems % % % 2. Mainstreaming ecosystem restoration % % % 3. Empowerment of coastal communities % % % 4. Learning, evaluation & adaptative management % % Project Management % % % IFAD Advances TOTAL % % % * Actual disbursement by component takes into account all disbursements up to 31/12/15 (including WA #37 not yet submitted to IFAD) 61

68 Appendix 5: Financial: Actual financial performance by financier; by component and disbursements by category Table 5C: IFAD grant disbursements (USD, as at 14/01/2016) Category Description Grant Allocation Cumulative Disbursement % Disbursement Available Balance USD USD USD I Technical Assistance / Consultancies % II Ecosystem restoration % III Adaptation % IV Vehicles & equipment % V Operation & maintenance % Advance TOTAL % Figure 1: IFAD loan/grant disbursement, comparisons between original and revised allocations and actual disbursement Loan Allocation Cumulative Disbursement I II III IV V Advance 62