SRI LANKA PARTICIPATORY COASTAL ZONE RESTORATION AND SUSTAINABLE MANAGEMENT IN THE EASTERN PROVINCE OF POST-TSUNAMI SUPERVISION REPORT

The International Fund for Agricultural Development For Official Use Only SRI LANKA PARTICIPATORY COASTAL ZONE RESTORATION AND SUSTAINABLE MANAGEMENT IN THE EASTERN PROVINCE OF POST-TSUNAMI SUPERVISION REPORT Asia and the Pacific Division Programme Management Department REPORT No 2995-LK December 2012 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without the authorization of the International Fund for Agricultural Development (IFAD). Sri Lanka: Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami

Supervision and Implementation Support Mission: 12-24 November 2012 Table of Contents Appendices 1. Summary of grant status and ratings 2. Financial: Actual financial performance by financier; Disbursements by category and by component 3. Compliance with Grant agreement covenants: Status of implementation 4. Supervision mission schedule and persons met Currency Equivalents Currency Unit = Sri Lankan Rupees USD 1.00 = Rs 130 (Nov 2012) Weights and Measures Metric System FISCAL YEAR 1 January 31 December ABBREVIATIONS AND ACRONYMS AWPB CBO CCD CEA CEA DECC DFAR DMC DS DSD DWLC EARU ERD FD GA GEF GOSL IDAR IUCN KM MDUD ME MOFA MOU NGO PFS PIU PMU PSC PTCRReMP SAP Annual Work Plan and Budget Community Based organization Coast Conservation Department Central Environmental Authority Central Environmental Authority Environmental Coordinating Committee Department of Fisheries and Aquatic Resources Disaster Management Centre District Secretary Divisional Secretary Division Department of Wild Life Conservation Ecosystem Restoration and Adaptation Unit Department of External Resources (Ministry of Finance and Planning) Forest Department Government Agent Global Environmental Facility Government of Sri Lanka Institute of Development Alternatives and Reconciliation (Pvt) Limited The World Conservation Union Knowledge management Ministry of Defence and Urban Development Micro-enterprise Ministry of Fisheries and Aquatic Resources Memorandum of Understanding Non Governmental Organisation Project Financial Statement Project Implementation Unit Project Management Unit Programme Steering Committee Post-Tsunami Coastal Rehabilitation and Resource Management Programme Special Area of Management 2

SOE SPA TCC UDA WA Statement Of Expenditure Special Programme Account Technical Coordinating Committee Urban Development Authority Withdrawal Application A. Introduction 1 1. Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka (referred as the Project) was designed to address the needs of restoring tsunami affected coastal ecosystems in Ampara, Batticaloa and Trincomalee districts of the Eastern province. The Project was effective from 10 September 2009 and the completion would be six years after effectiveness which is 31 December 2015. Total project cost is USD 14, 839,365. The GEF Secretariat, through IFAD has provided grant financing of USD 6,919,915 as GEF contribution. The Government of Sri Lanka contributes USD 430,300 which finances the tax component and other contributions in kind, and IUCN contributes USD 50,000. The Project, with a global environmental dimension, complements the activities of Loan Programme of Post Tsunami Costal Rehabilitation and Resource Management (IFAD Loan No. 664-LK). The Ministry of Defence is the Lead Project Agency and the Costal Conservation Department (CCD) under the same ministry overseas implementation of the Project. 2. The goal of the Project is to rehabilitate tsunami affected ecosystems in the country to provide full ecosystem services including adaptation against extreme climatic events. The development objective is to mainstream restoration and management conservation of globally important ecosystems affected by the tsunami into the reconstruction process to support sustainable livelihoods and reduce vulnerability to climate change along the East Coast of Sri Lanka. While the short-term emphasis of the Project is on developing a scientifically-based, low-cost, and community-based approaches to rehabilitating three key coastal ecosystems namely mangroves, coastal lagoons, and sand dunes at specific sites, facilitating replication of these techniques all along the East Coast in the long run is equally emphasised. The Project has four components (outcomes as named in the design) which are listed under output and outcome section below. 3. The first implementation support mission was fielded during April 2009. This is the second supervision mission managed by IFAD as the GEF fund administrator. It commenced with a meeting at the Project Implementation Unit (PIU) and Project Management Unit (PMU) in Colombo on the 12 th November 2012 followed by meetings with the Additional Secretaries of the Ministry of Defence and Ministry of Environment, and the staff of IUCN. The mission team was in the field from 15 th to 19 th inclusive in Ampara and Batticaloa districts. It did not visit Trincomalee since the project activities on the ground are yet to commence. However the operational structures that are there have been reviewed. The mission team met with all the key government staff, community organizations, and other beneficiaries (list attached) and visited all the sites with project activities in Ampara and Batticaloa. The initial draft of the Aide Memoire was shared with the PIU and PMU staff and comments incorporated before presenting it at the wrap-up meeting held on 28 th November 2012 which was well attended. 1/ Mrs Dammika Dasanayake, Gender and Poverty Analyst; Mrs Sevvandi Jayakodi, Costal Zone Conservation and Management Specialist; Mr Amar Mishra, Financial and Procurement Specialist; Mr Bodhi Wanniarachchi, M&E and Knowledge Management Specialist; and Mr Anura Herath, Country Programme Officer, IFAD, Mission Leader and Institutional Specialist. Mr Justin Premathilaka, Project Manager was with the mission from 12 th to the 19 th and participated fully in all field visits with the district project staff. Mr Anil Premaratna, the Project Director participated in key meetings, and guided and facilitated the mission activities. 3

4. The team wishes to thank all the staff members of the MDUD, CCD, PIU, Project Manager and the Project Director and the district administrative staff including the Government Agents, and the community for their support and hospitality extended for the mission team. 4

B. Grant Performance I. Assessment of grant implementation progress 5. The Project had a late start. The initial deposit came in July 2011. The Ministry of Fisheries and Aquatic Resources (MFAR) was the Project Lead Agency at the inception and PMU was placed in CCD which was under MFAR. CCD was taken out of MFAR and put under the administrative control of the Ministry of Ports and Aviation in April 2010 and then in the Ministry of Defence and Urban Development (MDUD) in November 2010. The Project was inactive during the transition period without a leadership. MDUD has established the National Project Steering Committee (NPSC) in January 2011, and currently active. Both the PIU and PMU have been established in the CCD in Colombo. Due to non-availability of space in the PTCRReMP district offices in Ampara, Batticaloa and Trincomalee, the Project is maintaining its own district offices in three districts. During the year 2012, the Project was able to commence most of the critical grant activities with the able support of the current NPSC. Even though it was a late start, the project staff is commended for initiating many activities which are complex in nature, orienting coastal communities to participate with the Project and mustering the support from local government institutions and other stakeholders. 6. The Project has disbursed USD 382,714.78 which is 5.53% of the total grant financing of USD 6,919,915 as at 1 st November 2012, after nearly 50% laps of project period. The key activities initiated so far include (i) establishing NPSC, PIU, PMU, district project coordinating offices, Special Area Management Committee at Pottuvil and Panama, Vakarai and Nelaweli and Project Coordinating Committees; (ii) initiating participatory coastal resource management programmes in Komari and Pottuvil lagoons and surrounding mangroves in Ampara district, Nasivanthive and Kayankerni mangroves ecosystems in Batticaloa district, Kinnya mangrove forest in Trincomalee district; (iii) commencement of socio-economic and technical information collection for the preparation of vulnerability maps; (iv) initiating construction of 12 beach access roads; (v) initiating National Coastal Zone and Costal Resources Management Plan preparation; (vi) strengthening District Environmental Coordinating Committees in all three districts; (vii) initiating the establishment of Ecosystem Restoration and Adaptation Unit at the CCD; (viii) creating awareness among the coastal community to a satisfactory level for co-management of coastal natural resources (10 GNDs for Vakarai lagoons, for the sustainable management of mangrove ecosystem, Puttuvil and Panama sand dune and pigeon island coral reef ecosystems); (ix) very initial stages of boundary demarcation of Vakarai lagoon and Panama Pottuvil sand dunes; (x) supporting few income generating activities among women in Panama and Pottuvil DSDs in Ampara and Komanthalamadu and Amanthanavel DSDs in Batticaloa; (xi) and establishing one bio-shield in Kallady and one wind break in Ampara and commencing one eco-forest park in Batticaloa. The mission observed that the steps of implementing these sensitive and critical activities could be better organised and sequenced to achieve efficiency and effectiveness if better technical input is available. These steps are proposed with required changes to the approaches under relevant outputs in this aide memoire. 7. It is expected in the Project as an outcome that coordinated actions are needed at three levels community, local, and national to upscale and replicate restoration activities in a coordinated approach within the Eastern Province and mainstreamed within the national policy framework. The Project has initiated operational / administrative structures which is in line with this outcome, but needs improvements, which are focused in this aid memoire. 8. As recognised in the design, there are three key barriers limiting the restoration of coastal ecosystems, namely (a) technical knowledge for low-cost restoration methods; (b) low priority given to environmental issues during the tsunami relief and reconstruction programmes; and (c) the processes leading to ecosystem degradation prior to the tsunami must be changed if the rehabilitated ecosystems are to provide the functions and services envisaged on a sustainable long-term basis. The mission noted that the Project has still not found sound solutions to (a); environmental issues are now given considerable priority at all three levels resolving the issues mentioned in (b); but still there are practices such as destructive solid waste management, encroachments, building construction etc which 5

degraded costal ecosystems, addressed in (c). However the mission reckon that the Project will be able to achieve the main targets of signing at least nine new community comanagement agreements for the East Coast; and rehabilitating 1000 ha of coastal lagoons, 75 ha of sand dunes and 250 ha of mangroves. Based on such observations the Grant performance is rated as moderately satisfactory (4) 2. II. Outputs and Outcomes 9. Component 1: Develop and demonstrate best practices for effective restoration and sustainable management of key coastal ecosystems with integration of adaptation to climate change vulnerabilities. The implementation of activities under this component has started in 2011. In Ampara this Project covers Komari Lagoon SAM area, Panama sand dune SAM extending up to Puttuvil and surrounding coastal zone. In Batticoloa Kallady beach area, Nasivanthive island and Kayankerni lagoon associated mangrove and salt marsh ecosystems including Vakarai SAM area are the main targets. In Trincomalee, Pigeons Island SAM area is to be restored under the Project. In summary three key coastal ecosystems are being covered namely, sand dunes, mangroves and corals. Since the ethnic composition, level of community interaction and current status of habitat and pressures for the natural capital varies from site to site, CCD has initiated various activities considering the needs of the people and eco-systems such as initiation of community meetings and community mobilization, facilitating and strengthening the district level environmental coordinating committees, attempts to win the participation of communities through provision of cash crops, establishment of back yard level nurseries and regional nurseries, attempting a participatory approach for boundary demarcation of SAM areas, replanting at home garden level, and women empowerment. Yet the full contribution of some activities to achieving the final goal needs revisiting. Those involved livelihood development activities which perhaps could be done through some other projects where CCD could facilitate, and perhaps lopping some activities such as forest park in Vakarai town and increasing the attention to some of the sites which have a greater potential for restoration such as Komari, Panama, Pigeons Island and Nasivanthiv. Outcomes of this component were to be achieved through three subcomponents. The mission observations, critical issues and agreed actions are organised by the sub-components. 10. Subcomponent 1.1: Development and demonstration of best practices for community-led restoration of globally important ecosystems. The Project is expected to develop scientifically-based and low-cost approaches to restore / rehabilitate costal ecosystems to be practiced by the community. This is to be facilitated with baseline inventories of flora and fauna, and socio-economic baseline data of the communities. While secondary data on the latter is available without a proper analysis, EML consultancy firm is collecting the technical data to cover the former. The communities would be expected to select successful restoration options. Such are still not available for the Project except relevant types of planting material for mangrove restoration. The Project is expected to provide incentive mechanisms for communities to participate. However the targeting of such interventions with limited financing is an issue and as such incentives were not provided except those for livelihood activities. 11. Community awareness has been raised on their vulnerabilities to climate change and role of healthy ecosystems to reduce such impacts. The mission observed that sections of the community who depend on the systems (fishers etc) have responded more positively. For instance in Komari lagoon, CCD has used a mutually beneficial approach where some urgent needs of the community such as opening the lagoon mouth and construction of an evacuation road in case of disasters were met. This has lead to community being positive for restoration and has willingness to demarcate the SAM area. There is community commitment to protect SAM areas once demarcated. 2 In the IFAD supervision guidelines performance is rated as: (6) highly satisfactory (targets/requirements are met or exceeded and considered as best practice); (5) satisfactory (targets are met with only slight delays); (4) moderately satisfactory (most targets are met but delays or set-backs experienced); (3) moderately unsatisfactory (some targets / requirements met but issues / constraints have negatively affected implementation; (2) unsatisfactory (few targets/requirements met, but issues/constraints remain unresolved and delays have seriously undermined implementation; and (1) highly unsatisfactory (almost no targets/requirements met and consideration should be given to cancellation/suspension). The same terminology is used in this aid memo. 6

12. Another observation was in Nasivanthiv Island where the CCD has the advantage of demonstrating natural rehabilitation rather than replanting which the Forest Department was practicing. It is one location with a very strong community that has received disaster awareness, equipments such as life jackets etc as well as knowledge on mangroves which are incentives to mobilise the community. The mission realised that marking the boundaries of ecosystems is a key pre-requisite for restoration. 13. The main issues concerning demonstrating best practices include delay in boundary demarcation which is to be urgently implemented while the community has the interest; lack of understanding of the availability of relevant data / information with different organizations, needing harnessing of these information; resolving land encroachments in sand dunes in Panama SAM area; and creating proper understanding of the concept of restoration by other parties including Forest Department so that they would raise correct plant species for planting. Delay in resolving the issue of land acquisition for a visitor centre in Pigeon Island is also a critical issue. At present both organic (including human faeces) and inorganic pollution is a threat to the coral reefs. In order to monitor the visitors, their activities and to create awareness on coral ecosystems, acquiring the right to operate the land is a must. 14. Subcomponent 1.2: Publication of best practices and policy guidelines on practical restoration and conservation management of globally important ecosystems. The Project is expected to develop technical guidelines for local communities on best practice of restoration techniques and providing step-by-step instructions to enable easy replication. Preparation of a set of policy guidelines is also expected which will advice on the effective involvement of communities, and how best to motivate them to manage what is restored. The current progress involved production of a laymen friendly booklet highlighting the recent changes to CCD Act; and conducting a workshop including about 72 participants representing Police Department, UDA, DS, Additional GA, Local authorities elected personnel, DWLC, FD, and CEA in Ampara to create an awareness regarding the CCD act and its provisions. One outcome of the workshop is the local authority and police taking keen interest in sand dune protection. It is recommended that such awareness sessions are held in other two districts as well, and for new recruits too. Since lessons and best practices from ecosystem restoration activities are not matured enough, expected publications / guidelines are currently not available. 15. Sub-component 1.3: Establishment of central information base in CCD as repository for all work on ecosystem restoration and coastal adaptation to climate change. The expectation is collating and managing base line information including flora and fauna, vulnerability mapping, scientific data from the pilot study trials, the scaling-up processes, and the monitoring and evaluation measurements. These would be used, with digital maps, to identify vulnerable ecosystems and associated human settlements. Socio economic data collected by the Project, once systematically organised and technical data once completed by EML, would partly fulfill this need. However the Project lacks a systematic M&E system which could facilitate the information harnessing process. That needs to be developed with technical assistance on urgent basis. The overall performance of the component, which is based on these observations, is rated as moderately unsatisfactory (3). The following agreed actions are proposed for the improvement. Agreed action Responsibility Agreed date 1) Elicit activities with expected outcomes that are in line with project PMU and CCD Jan 2013 objectives for implementation. Also identify the coherence within sub-components through a brainstorming session at the CCD with the participation of other stakeholders. Using the results, remove / revise any activity that is inconsistent or likely to be unsustainable. The list of activities with budget allocation needs to be developed for balance of the Project period. 2) Regional technical institutes (universities, consultancy firms etc) PMU Jan 2013 would be contracted to monitor the site to assess whether restoration and development of best practices are taken place as planned 3) Prepare detail list of activities that the partner government PMU with TCC Dec 2012 institutions are expected undertake and establish a system to monitor these activities being implemented. The institute mentioned above could undertake this role among others. 4) Improve district level communication with peer parties such as PMU with the Jan 2013 7

Disaster Management Center (DMC) to share resources and information. This will be facilitated by conducting 3 workshops in three districts and proposing officials responsible for land, natural resources, cultural heritage, urban development and women affairs etc to participate regional MU 16. 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. The five sub-components would contribute achieving the outcomes of this component. 17. Sub-component 2.1: Revision of policy framework to support the restoration and sustainable use of coastal natural resources and adaptation to climate change. The Project is to undertake a review of relevant policies, legislations, and investment guidelines so that these will facilitate ecological restoration and adaptation / mitigation to climate change. 18. The Project has not selected other policies or regulations either at the district (or provincial) or national level to consider for the targeted revision. The Project is facilitating awareness creation among stakeholders about the recently amended Costal Conservation Act. The Project however could not contribute to the amendment process because of unavailability of ground level lessons and experiences at the time of revision. The mission recommends that the Project should identify by-laws and regulations that could be emphasized at the district level to facilitate the enforcement of costal conservation and management laws once the demarcated resources are declared as strictly conserved areas. Examples of such by-laws are implementable activities within the jurisdiction of amended Cost Conservation Act. Also the Project has the opportunity to declare some important marine protected areas under the amended act and formally run the general management of coastal SAM areas. The proposed TCC could play a vital role in this sub activity by appointing an appropriate working committee. 19. Sub-component 2.2: Introduction of requirements to incorporate restoration of coastal ecosystems and adaptation measures for climate change vulnerabilities into central planning system for all tsunami-reconstruction projects. Under this, GEF funding will be used to support the national ministries to draft a Cabinet memorandum so that the central planning system can be established with a Cabinet Decision. With this an intervention of physical ecosystem restoration is essential in any costal activity. 20. The interventions are needed at the national, provincial and district levels to support the planning system. One national workshop was held in 2012 to create awareness of the need. At present DMC is well equipped with maps and projections of future coast line disasters in the region, which can be used for planning. These information needs to be shared at both national and district level. CCD officers need exposure to such projections which will assist in deciding how coastal zone could be managed at local level including fund disbursement for managerial activities. At the district level, strengthening the environmental committees will ensure the sustainable input for planning activities. 21. Sub-component 2.3: Support to the incorporation of coastal ecosystems restoration into the Eastern Province Planning System. At present there is no provincial level coordination or monitoring structure to coordinate with the Project. This is acceptable because the targeted coastal eco-systems are under the jurisdiction of the Forest Department and CCD which are central government institutions. It is therefore necessary to address the district level planning system in covering planning issues. The most suitable platform to focus on inclusive-planning is the district planning unit lead by the Government Agent (GA) who coordinates all district development activities. In order to facilitate the inclusion of ecosystem restoration into the district planning process, the mission recommends that the Environmental Coordinating Committee (DECC) to be further strengthened and to abolish the District Project Coordinating Committee. DECC, chaired by the GA with membership of all district level institutions (cost conservation, forestry, environment, land use planning, disaster management, archeology, survey, etc) would be met quarterly and allocate sufficient time and interest to discuss all Project related activities among other environmental issues on the agenda. With the next three years experience of such discussions, the Committee would be in a comfortable position with adequate understanding to incorporate costal ecosystem restoration interests in the regular planning and budgetary 8

process. Critical technical issues that would arise and unresolved at this committee would be conveyed to the national level Technical Coordinating Committee (TCC) that the mission is proposing to constitute comprising national level senior technical staff who attend at the DECC. The Project Manager through committee board papers would submit such issues to TCC. The NPSC would oversee the TCC and chaired by the DG of CCD. The TCC would be gradually transformed to the Ecosystem Restoration and Adaptation Unit which is now at the embryonic stage. The Project will finance the sitting allowance of the TCC. 22. The mission also recommends that the TCC with the overall supervision of the NPSC should provide the leadership to prepare the Climate Change Adaptation strategy for the Eastern Province. Strategy would include some project activities such as declaration of SAM areas and restoring their natural vegetation; improvement of alternative livelihoods of communities to reduce their dependence on ecosystems; and identification of key sites for natural barriers such as wind shields and community forestry. The process of preparation and the strategy once prepared should be discussed at the regular DECC and assess whether the district planning system has needed capacity to implement the strategy. The mission proposes that the Project will assist meeting such capacity gaps through appropriate means such as training or providing financial resources. 23. Sub-component 2.4: Creation of an Ecosystem Restoration and Adaptation Unit (ERAU) within CCD to provide facilitation and supervision services to post-disaster reconstruction projects. This is to assume responsibility for promoting, facilitating, and supervising ecosystem restoration, Climate Change Adaptation strategy and dissemination of lessons learnt to other relevant parties. In this effort, close liaison will be sought with the Climate Change Unit of the MOE and necessary capacity building with respect to adaptation to climate change vulnerability will be provided by the Project. 24. ERAU has been established but is at an embryonic stage. It needs official sanctioning to operate with authority. The mission reckons that the unit should be evolved over time with lessons and experiences of the Project achievements and therefore recommends that TCC should be transformed to form this unit with the Project playing a coordinating role. The Project will finance the operations of the unit and overseen by the Ministry which leads the CCD. 25. Sub-component 2.5: Replication of ecosystem restoration and sustainable use through community-based co-management of coastal ecosystems and adaptation to climatic change by the Eastern Provincial Council. On-the-ground replication of ecosystem restoration will be the critical indicator for project performance. The Project and the committees will have a district focus due to the involvement of the central government agencies, and as such the mission proposes that replications or any up-scaling of ecosystem restoration will be supported at the district level instead of the provincial level. The overall performance of the component is rated as moderately unsatisfactory (3) due to several unfinished activities. Agreed actions Responsibility Agreed date 5) Initiate and apply the by-laws and regulations that could be implemented at the district level to facilitate the enforcement of costal conservation act and management practices. DDC assistance can be obtained. PMU with the assistance of DECC Start Jan 2013 6) Abolish the District Project Coordinating Committee and further strengthen District Environmental Coordinating Committee (DECC) through regular meetings, inviting experts to address issues, maintaining up-ward and down-ward coordination and linkage with the TCC. For legal issues concerning land matters in particular, maintain a close linkage with the DDC. 7) Gradually transform the TCC to the Ecosystem Restoration and Adaptation Unit and strengthen the unit 8) Replication of ecosystem restoration and sustainable use of coastal resources should be addressed at the district level, provided district level capacity is in place, and if not central level institutions will be used. PMU with the assistance of the GA PIU and CCD PMU with the assistance of DECC Start Jan 2013 Start Jan 2013 Start Jan 2013 26. Component 3: Empowerment of coastal communities for local natural resources management, enhancing sustainable livelihoods and adaption to climate change vulnerabilities. This component is supported by 4 sub-components. 9

27. Sub-component 3.1: Facilitation of enabling environment for community co-management of natural resources and adaptation to climate change vulnerability. This was achieved by community awareness programmes, discussions with stakeholders including divisional level government agencies, and preparation of user friendly documents on new amendment of the Coast Conservation Act. The mission observed that the community, mainly those who are benefiting from ecosystems, is adequately sensitive to conserve costal resources and responsive to external threats to preserve rehabilitated natural resources. The examples are active participation of the community in the Komari lagoon conservation in Ampara, Nasivanthivu mangroves conservation in Batticaloa, Panama - Pottuvil sand dune conservation. It was interesting to note that the community was able to recognize the importance of conservation of coastal resources which was a positive development as the community mentioned. This awakened awareness is a result of bitter experiences with death and property loss due to tsunami, hence the Project could capitalize on community alertness. Where possible community should decide the activities that would assist them in facing disasters and in deciding the areas for protection. The mission also recommends that extra facilities such as life jackets for children would be provided. 28. Sub-component 3.2: Promotion of mangroves and coastal lagoon co-management at Vakarai to improve local livelihoods, foster sustainable land management and to minimize climate change impacts. The main activities that will support the lagoon co-management are in sequence community consultation, hypothetical boundary identification through a participatory process with local communities and other key stakeholders, surveying of the boundaries using the hypothetical boundary, boundary marking with boundary posts, preparing a scientifically and evidenced based management plan identifying different type of interventions balancing political, socio-economic and technical needs, and declaring and gazetting the conserved areas with legal enforcement. These steps have not been sequentially followed in Vakarai. After the community consultation in 10 GNDs, the survey requests have been issued. Without other steps being followed this might not bring about required results. The mission recommendation therefore is to adopt a phased out approach. Vakarai lagoon is approximately 500 ha in extent itself and is a fairly large area that could be phased out. Since there is an area in the lagoon which is severely affected by human disturbance, phase 1 can concentrate on disturbed areas. Also doing a rapid assessment will be beneficial to demarcate other areas in the lagoon that need immediate attention. Since DS of Vakarai is committed but has limited resources, such phased-out approach will be easy to handle and lessons learnt could be applied to the rest of the lagoon. It is important that EML is aware about the urgency in baseline data for Vakarai and their quarterly reports should be received in parallel to demarcation. Mission recommends that in future any contracts given for ecological studies should emphasize the need to submit all raw data to CCD as they could be used in future to verify the impacts of management. 29. Establishment of Forest Park at Vakarai has commenced which will indirectly demonstrate land management through natural forest. Forest Department (FD) implements it with the project financing of Rs 3.6 million. An agreement has been signed, a part of the existing natural forest has been identified by the FD, and fencing was completed. The main purpose of the park is to use it as an extension tool to demonstrate natural forest conservation. The mission recommends, on the basis of the strong request by the FD and the Divisional Secretary, Vakarai, rather than on the technical basis, to continue with the activity, but to amend the agreement to the effect that once the park is established, at least one Forest Field Assistant to be stationed at the park on full time basis to carry out extension activities. 30. The Project has supported planting coconut in common lands in coastal areas as wind shield. The Coconut Cultivation Board has provided plants. Provision of 500 plants to Navy and 750 plants to Army as well as to local community is commendable. Since cash crops could be the starting point to win the community, the next step would be encouraging natural vegetation among the cash crops and changing of attitudes of people responsible for safeguarding that with time the plantations need to be evolved into wind shields. Also future activities could be aimed at extending the shields thereby creating one uniform barrier along the coast. As the mission observed, the effectiveness of the belt could be improved if a contiguous land has been allocated for the belt. Due to the unavailability of land this was not achieved with the exception of coconut cultivation managed by the navy in Kallady (500 plants). The mission recommends that such interventions should be financed only if a contiguous stretch of land is available with other technical requirement be fulfilled. 10

31. Replanting of coastal vegetation of about 10 ha in Ampara and Batticaloa districts and about 4 ha of fruit plants in home gardens have been observed. The mission s opinion is that some of the home gardens have not adopted required agricultural practices such as soil and moisture conservation, fertilizing / composting, irrigation and protection from animal damages. It is recommended that household willingness to undertake such practices should be carefully assessed and assist accordingly. Also visits to local sites that are operating in a good condition will improve community interaction. 32. The Project has initiated several programmes to support livelihood development and income generation. In Ampara, two types of livelihood activities developed (shoe making 9 women in Panama and mushroom 7 women in Pottuvil etc.) and initiatives taken to develop milk products by giving training to 20 women and identifying 20 women for training in dry fish making in Pottuvil. In Batticaloa, two types of livelihood activities developed (fruit processing 6 women in komathalamadu and dry/maldives fish 5 women in Amanthanaveli). 33. Required skill training has been provided through state institutions (Industrial Development Board in Ampara and Vidatha in Batticaloa) and tool kits worth, LKR 18,700 for shoe making and LKR 7,500 for mushroom, have been provided to all been trained in Ampara. In Batticaloa, two livelihood groups have been financed with equipment (LKR 170,000 for dry/maldives fish and LKR 125,000 for fruit processing). As the mission noted, less than 50% of those who have been trained and assisted with tool kits in Ampara are being selfemployed currently and only about 10-15% of them are actively occupied. Two livelihood groups in Batticaloa have commenced the production only few weeks back and yet to make an impact. The mission visited shoe making entrepreneur in Ampara and two livelihood groups in Batticaloa. All involved in livelihoods are women and women headed households have been the main target. The design emphasizes that targeting should also ensure that the pressure on eco-systems for livelihood activities should be minimized which has not been considered in targeting. 34. The mission recognized that the level of skill training given is not adequate for beneficiaries to be self-employed and sustained. Apart from skill training (which was limited to 3 days) no entrepreneurship / market orientation training being given or planned. The programme needs a broader outlook to make it a success which looks an extra burden to the limited project staff who needs to focus on conservation activities. The mission, therefore, recommends that project s livelihood programme be linked with the Post Tsunami Coastal Rehabilitation and Resources Management Program (PTCRReMP), which is currently implementing a successful microenterprise programme in seven coastal districts including three project districts. PTCRReMP has contracted with prominent business development service provider, Institute of Development Alternatives and Reconciliation Ltd (idar), to run the programme in Ampara and Batticaloa and the current contract expands until 31 August 2013. 35. PTCRReMP microenterprise development programme involved in mobilizing groups (mainly women) and inculcating saving habits among them and on maturity developing microfinance between group members. Deserving entrepreneurs emerge from groups are being linked to low interest micro-credits through identified commercial banks. A similar programme in group mobilization, targeting only women, is also being implemented with a partnership of the Women s Bank in parallel. This has laid an ideal platform for the project to run its livelihood programme by mealy identifying its target groups and linking them with PTCRRMP. No project financing neither direct staff involvement is recommended if not for monitoring. 36. As a climate change adaptation measure, DS Vakarai has given a leadership to establish a greenhouse at the DS Office compound with a cost of rupees half a million. This has been used by the community once with the management of Rural Development Society. The mission noted that the usage is sub-optimal and there is hardly an equal distribution of the resources among the community. The ground space of the greenhouse should be allocated on a fare share basis among the vulnerable community giving the priority to women farmers. The Provincial Department of Agriculture should be involved to provide technical guidance to allocate space among optimum number of farmers to cultivate suitable seasonal and high value crops. 37. Sub-component 3.3 Promotion of co-management of sand resources at Panama /Pottuvil to improve local livelihoods, foster sustainable land management and to minimize climate 11

change impacts. The same sequential procedure that was recommended for lagoon needs to be adopted for sand dune conservation. The process of co-management for Panama / Pottuvill sand dune which is 200 km length is at the very initial stage. One of the main issues that the Project faces is evacuation or re-demarcation of the private lands which are located in the sand dune conservation areas. The DS of Pottuvill has identified 80 households who have encroached into the reservation of the sand dune. The issue of clearing the encroachments is pending. As similar incidences are common, the mission recommends undertaking an assessment before commencing the boundary demarcation process to identify such encroachments and the strategies that could be adopted to clear the encroached areas with a minimum disturbance to the community. The assessment should pay special attention to the women headed households and their vulnerabilities in possible relocation. Required safeguard measures for them should be implemented. 38. The Project needs to develop community co-management plans and institutional mechanism for conservation management of the dunes at Panama / Pottuvil which is on-going. The issue should be taken up at the DECC and initiate the process of developing plans. While ensuring the community occupation as important, that itself is linked with the sustainable use of dunes. These dunes are the key for ground water recharging as well as the natural barrier preventing erosion. The institutional support for the planning should come from the DS and the district planning unit. The mission recognized capacity gaps in terms of identifying optimum species of plants to establish vegetative covers for sand dunes, mechanisms for controlling sand extraction, and identifying appropriate co-management models for different part of the dunes. Technical assistance needs to be provided in such cases which also include developing co-management plans through a consultancy input. 39. Preparing plans to cope with emergencies and disasters, and create social infrastructures like safe places to be used in the events of floods and cyclones are important to minimize losses. It was noted that DMC is currently involved at the provincial level in preparing communities against natural disasters. Inputs can be taken from both parties to provide a better service to communities. Therefore conducting awareness workshops for DMC officials on natural barriers could be helpful as well as this would improve the communication. The project should immediately use the resources available at DMC and avoid repetition of work. 40. Sub-component 3.4: Promotion of coral resources co-management at Pigeon Island. The project intervention in the Pigeon Island site would facilitate minimizing man induced stress on the reef system through better management enhancing the reefs ability to withstand climate change related stresses. Ministry level intervention is needed to secure a suitable land to establish visitor facilities and an awareness centre at Pigeon Island. This should be given high priority and land acquisition could happen in the next 6 months. Failing which, funds should be withdrawn by GEF. As most of the activities of the component has commenced, the performance is moderately satisfactory (4). Agreed actions Responsibility Agreed date 9) a sequence of steps involving community sensitization, hypothetical boundary mapping, survey requisition including maps, parallel continuity of community sensitization and negotiation for boundary marking, assessment of encroachments, procedure for managing encroachments, surveying, boundary marking, endorsing the boundaries at the EDCC, and declaration of boundaries should be adopted for all eco-system boundary marking. 10) Amend the agreement between the PIU and FD to ensure that once the eco-forest park is established, at least one Forest Field Assistant to be stationed at the park on full time basis to carry out extension activities 11) For green village programme households who are willing and also have suitable land and soil should be supported with plants. Liaise with the Provincial Department of Agriculture and provide training on good management practices to raise plants - irrigation, soil conservation, organic fertilising etc are needed. 12) Identifying appropriate co-management models for different parts of the dunes with expert advice. The Project should support only those models. A technical assistance through a consultancy input should be obtained. 13) Ground space of the greenhouse established in the compound of DS office, Vakarai should be allocated among selected group of vulnerable farmers with a priority given to women. The Provincial Department of PIU with the assistance of DS PIU & FD to comply District Managers PIU with CCD District Manager, DS, PDOA Start in Dec 2012 Complete by Feb 2013 Start in Dec 2012 Start in Dec 2012 Start in Dec 2012 12

Agriculture, as a member of DECC, should provide technical advice to divide the floor areas taking equity and technical factors into account and recommend suitable crops / cropping patterns. 14) Technical assistance through consultancies should be obtained to identify best plant varieties, plant management practices and also comanagement requirement to rehabilitate the vegetation of all ecosystems in the project areas. 15) Prepare TORs of future recruits of consultants by a competent technical institute / team of experts 16) The Project should make linkages with PTCRReMP to initiate and support livelihood and micro-financing activities. The Project should not provide financing for this purpose. 17) The Project will initiate requesting the intervention of MOD to clear the land issue constraining the development of coral reef in the Pigeon Island. PIU with CCD Start in Dec 2012 PMU Jan 2013 District Manager, PIU Start in Dec 2012 PIU, CCD Dec 2012 41. Component 4: Learning, evaluation and adaptive management increased in both tsunami restoration and climate change adaptation activities. The expected outcome of this component is establishing the Project management structures both at national and district levels; establishing project monitoring and evaluation systems; and initiating a reporting mechanism covering regular project management and technical issues related to the restoration methodologies and process. The details of project management, and monitoring and evaluation are presented in Section C below. III. Assessment of progress on targeting and gender focus 42. Targeting. The targeting strategy of the Project needs to cover both technical and socioeconomic targets. The Project has identified a number of critical sites to be managed under Special Area Management (SAM) plans with the active participation of coastal communities and other stakeholders. SAM areas are core conservation areas that are focused by CCD regular programmes and the Project is supporting that process. As such the technical targeting has been achieved effectively. It has initiated expected activities in all the targeted costal ecosystems in the three districts. The community, government and non-governmental organizations have been made aware of the project interventions in these eco-systems. 43. With regard to the socio-economic targeting, the Project s main beneficiaries and stakeholder groups will be the primary users and managers of coastal ecosystem services. The mission noted that these actors have been contacted at various forums and informed about the needs, importance and benefits of conservation of costal ecosystems. The Project has paid a special attention to the more vulnerable rural population mainly women through it livelihood development activities as target groups. Specific awareness creation programmes were conducted for the fisher communities, school children, and local authorities who are also the beneficiaries. The following table summarises the number of beneficiaries who have been already contacted as target groups. The performance of targeting is rated as satisfactory (5). Type of targets Ampara Batticaloa Trincomalee SAM areas 01 PAP SAM (Pottuvil, 2 Nilaweli Coral Arugambay, Panama) reef Non SAM, but ecosystems Kumana estuarine Lagoon Halawa Lagoon Nasiwanthivu Kinnya mangroves Coastal Community CBOs RDS - 13 Fishermen - 9 Farmers - 12 Environmental - 2 Lagoon Management authority -1 Women Women s Organization - 19 Widows Organization - 1 Beneficiaries Organizations -2 Coastal Grama Pottuvil D.S. Division - 14 Niladaries Lahugala D.S. Division - 5 NGOs Seva Lanka 5 51 Boat operators organization Fishery organizations Women-headed members - 852 Women Societies - 16 11 13

UNDP Green Monument Local Government Staff 17 30 44. Gender strategy. There is no project specific gender strategy developed in the Project design. However women involvement is expected in implementation of conservation activities. Site specific Community involvement in ecosystem restoration in the project area identifies undertaking community-led rehabilitation of mangroves and coastal lagoon at Vakarai, and rehabilitation of sand dunes at Panama. The women involvement in this process is encouraged purposively and there are plans to track gender disaggregated differences, accomplishments and impacts. Although there is a keen interest among the women to participate in the conservation process through awareness creation, the Project has not started tracking women involvement. The mission recommends that a tracking system should be included into the M&E system and reporting to be done accordingly. At present there is no gender disaggregated information on the conservation related activities. Also the project staff needs detailed orientation to develop a gender strategy. Performance is rated as moderately unsatisfactory (3). 45. The livelihood activities are focused particularly on women. The type of interventions, women involvement and the progress of the activities are summarised under sub-component 3.2 above. C. Grant Management I Implementation Arrangements 46. The Grant management is organised at three levels, namely national, district and community levels. The NPSC, chaired by the Secretary, MOD coordinates and steer the Project. It meets regularly and met three times in 2012 since its establishment. The mission noted that the NPSC is carrying out its policy related and national level coordination functions effectively. However, as mission noted, committee agenda and focus do not strictly address all the detailed technical matters which need lengthy technical discussions, and guidance, instructions and advice to the Project staff. In order to take the technical role more effectively, the mission is proposing to set-up a technical coordinating committee (TCC). This can be staffed by the director level staff of all the technical departments that are partners of the Project. DG, CCD will chair the committee. The responsibilities would be to address and coordinate all technical issues regarding conservation, policy matters and later transforming into the ERA Unit and it will meet quarterly and also in need basis. TCC is reporting to the NPSC. 47. At the operational level the Project Coordinating Unit (PCU) and Project Management Unit have been established at the CCD in Colombo. The former is staffed only with the Project Director who is the Director General of the CCD, and the latter is with a part-time Project Manager, a part-time Accountant and a Project Assistant. The three district offices in Ampara, Batticaloa and Trincomalee, housed in the project rented or CCD owned buildings, have been established with the essential district staff. Contrary to the design expectation, IFAD funded PTCRReMP could not provide room for these officers due to lack of space. The Grant financing is not foreseen to meet the office rent, and as such the GOSL counterpart funding should be provided for the purpose. 48. With a view to supporting the district / local level operations, implementations and comanagement of ecosystems, there is the Project Coordinating Committee and the project invigorated Environmental Coordinating Committee, both are chaired by the Government Agent (GA) and attended by almost all the district level technical institutions. In place of PCC which the mission is proposing to abolish, DECC should be strengthen by the Project as the district level coordinating committee. GA would invite as many relevant institutions as required to address all technical, social and political issues that may arise during implementation. It would meet quarterly and in addition as required. Unresolved issues would be communicated to the TCC at the national level and then if needed to the NPSC. 14