North East Province

S.Rangarajah
Chief Secretary,
NEP
1. Working of the Provincial Council system
2. War impact and Development issues
3. Rehabilitation and Development efforts
4. Future needs and challenges
1. Working of the Provincial Council system
 Mandate
13th Amendment to the Constitution Provincial
Council Act No.42 of 1987.
Directions issued by the Govt. by time to time.
All the Acts of Parliament presently in force.
Provincial Councils Act No.12 of 1989
(Consequential Provisions).
Establishment Code of the GOSL
Provincial F.R.
Provincial Council as part of
Three Tier Systems

• Central Government
• Provincial Council
• Local Government
 Working with th
13 Amendment
• NEPC functions are limited to subjects in the first list of the
ninth schedule.
• NEPC passed 6 statutes during it ’s life time, mainly pertaining
to salaries of staff, Chief Ministers Fund, Emergency Fund
etc.
• Since there is no statutes for revenue, NEPC depends 100% on
grants from the Government. No taxes
• Even though NEPC can legislate on 37 subjects, functionally
this will cause extreme difficulties as complementary
authorities lie with center.
• Parliament can make laws under all three lists.
• All powers of council and Ministers rest with Hon. Governor at
present.
Arrangement for Donor Funded Projects

Steps:
01. Initiation and Formulation.

02. ,egotiation and Agreement.

03. Implementation.
 1. Initiation and Formulation

Line Agency / Ministries - Informally exchange

Project concept with Donor Agencies.

Formal request made by DER to Donor Agencies.

DER officially links donor Agencies and Line

Agencies.

Formulation Process start

eg. NEPC + Donor Agencies work together and finalize
proposals.
 2. ,egotiation and Agreement

• All parties to the agreements meet and

finalize at the negotiation.
Normally two agreements are involved –

01 . Credit Agreement

02 . Project Agreement

Credit Agreement – M/F + Donor Agency + Line Agency

Project Agreement – Donor Agency + ,EPC.

2. War impact and Development issues
 Selected Economic Indicators – 2003
Indicators Sri Lanka North East
Unemployment 10% 25%
North – 2.9/100
Telephone - density 9.6/100
East – 4/100
Water Supply
Access to safe water 45% 20%
Access to sanitation 72% 25%
Agriculture
Paddy Contribution before conflict
(1983)
2,483,000 Mt 441,119 Mt
 * Current paddy production 2003 3,071,000 Mt 604,384 Mt
 Fish production before conflict (1983) 218,500 Mt 93,000 Mt
 * Current Fish production 284,960 Mt 56,000 Mt
Education
Student drop – out rate 3.80% 15%

* 1983 resource utilization levels not achieved

Source :- Respective Dept.& Assessment of needs in the conflict
affected areas - 2003
Selected Development Issues in ,EP

Poverty and Malnutrition

Unemployment - Low Growth rate

Vulnerability – Children, Widows, Women,
Elders and Disableds

Housing

Finance – Individual / Institutional inability

Marketing

Production Infrastructure

Technology

Inputs
ContiA.
Selected Development Issues in ,EP
ContiA.

Capacity constraints at all level -
Individual, Family , Institutions and
community

Lack of accessibility and Linkages

 History of Displacement
• This is a development after independence.

1956 Communal
violence
1958 Communal Around 20,000
violence
1977 Communal 40,000
violence
1983 Communal Over 1.7 Million with
violence extrados (to India
alone 180,000)
1985 - Multiple 150,000 fleeing to
2002 displacement India

• Return, resettlement, repatriation, displacement were recurring feature.

 Organizations in charge of key
welfare activities
REPIA (Rehabilitation of Compensation for Persons &
Properties, Persons & properties and Reconstruction
Industrial Authority) of common properties.
CGES (Commissioner Emergency relief, security and
General of Essential other welfare of IDPs.
Services)
Presidential Secretariat Monitoring of Programmes &
National policy.
National Steering Higher level coordination in
Committees respect of particular subject or
projects.
Provincial Coordinating Coordination of RRR related
Committees provincial programmes and
projects.
Cont…
 Organizations in charge of key
welfare activities
Districts Secretariats Identification, implementation &
monitoring of RRR projects, IDP
welfare related programmes and
integrated programmes.
Divisional Secretariats Identification, implementation &
monitoring of RRR projects, IDP
welfare related programmes and
integrated programmes at divisional
level.

Village Rehabilitation Identification, implementation &

Committees monitoring of RRR projects, IDP
welfare related programmes and
integrated programmes at village
level.
 Welfare of IDPs
1. Welfare of IDPs at Welfare Centres:
Maintenance of welfare centres – tatchery, irrection of
huts, water, toilets, electricity, etc. are provided by
Government.

2. Welfare of IDPs outside the Welfare Centres:

Welfare of IDPs outside the welfare centers are attended
through formal rehabilitation and reconstruction
programmes and projects.
 Impact of Tsunami in the
North & East
26 December 2004
Deaths 14,074
Injuries 14,651
Missing 2,207
Affected families 175,281
Affected persons 683,845
Damage/Destruction to houses 78,582
Displaced families 76,119
Displaced persons 299,103
Welfare Centres 172
Recovery Cost for RRR US$ 1455 Mn
Tsunami displaced as on 07-07-2005
District Families Persons
Jaffna 6676 6777
Kilinochchi 407 1603
Mullaitivu 6007 22602
Trincomlaee 30545 72986
Batticaloa 15113 54817
Ampara 37899 81769
Puttalam 23 66
Colombo 6702 35343
Gampaha 308 1449
Kalutara 8134 34671
Matara 2235 11666
Galle 24165 120561
Hambantota 2808 13266
Total 141022 457576
 Problems of IDPs
• Demining – around 1.5 Mn mines yet to be cleared.
• Damaged productive assets preventing livelihood activities.
• Inability of IDPs returning to High Security areas.
• Landlessness preventing IDPs to receive entitlements.
• Inability of the Muslim families to return.
• Absence of legal documents.
• Prolonged camp living leading to loss of social & family values,
health conditions and abuses – emergence of second generation
with loss of values.
Summary of IDPs in Sri Lanka
Name of Province No. of IDPs
Northern 427,784
Eastern 246,932
North Central 15,880
North Western 56,167
Southern 159,316
Uva 58
Sabaragamuwa 114
Central 410
Western 65,872
Total 972,533
UNHCR release
3. Rehabilitation and Development efforts
RR & D initiatives:
• Initiatives started during the height of
the war.
• MoU raised aspirations.
• Multilaterals are the leading donors.

(List of projects available separately )

 Focus of ,EPC Investments
• Reactivating / improving the provision of service facilities
(Hospitals, Class rooms, etc.)
• Supporting livelihood activities of IDPs and their basic
needs. ( Micro credit, training [skills], etc.)
• Rehabilitation of rural infrastructure facilities (Roads,
drinking water, irrigation, etc.)
• Strengthening implementation capacities of implementing
/executing agencies and partner institutions (buildings,
mobility, training, etc.)
Investment by Donor Funded Projects of NEPC 1998 – 2006
Rs in Mn
Cumulative
Total
Project Expenditure Provision for 2006
Provision
upto 30-11-2005
NEIAP 3110.00 3110.00 0.00
CAARP 2390.00 844.00 700.00
NECCDEP 2840.00 93.30 760.00
TAARP-B-
NECCDEP 2800.00 7.50 1200.00
NECORD 4136.00 796.00 870.57
NECORD II * 5500.00 17.00 1900.00
NECORD EXT 1430.00 23.00 1000.00
NEERP 1342.50 0.00 390.00
NEERP 4980.00 746.00 575.00
NEHRP 7700.00 1104.00 2260.23
NEIAP II 8114.00 253.00 1200.00
Total 44342.50 6993.80 10855.80

( * Including TAARP-H) Source: Provincial Treasury, NEP

Project briefs
4. Future needs and challenges
 Implementation Issues

Delay in procurement. (technical
evaluations and tender decisions)

Capacity of the Executing and
Implementing agencies.

Land and re-settlement related issues

Inadequate MIS incomplete and delayed
reporting.

Inadequate communication and
coordination among executing agencies,
Implementing agencies, donors and other
stakeholders.
ContiA.
 Implementation Issues
ContiA.

Lack of qualified technical personnel

Social reluctance & Conflict Environment

Material Supply- Sand, Rubble, Metal, Iron,
Timber

Inadequate Capable Contractors –
Financially, Technically, Professionally

Cost of Material

Capacity of higher level manpower in
departments

Security Procedures
Double-gap situation:
• During the war time NEP suffered a
negative GDP.
• Living standards to be brought to the
present national levels (First gap).
• By that time national levels would have
gone up further.
• Accelerating strategies will be needed to
reach the new national goals (Second gap)
– probably by 2015.
Inadequate Policy frames:
• National sectoral policies are inadequate
to handle the needs of conflict emerging
societies.
- Regaining Sri Lanka &
- Poverty Reduction Strategy
do not have any strategy for North East.
• RRR framework depends on
complementary measures under national
policies.
Model for Rural Development:
• North East is essentially rural at the
moment.
• Suddenly opened to market forces.
• Presence of powerful corporate sector.
• There will not be a rural economy even
though the rural development takes place.
• Leading to unknown destiny.
Frame conditions:
• Possibilities of stalemate situation
- returning to war.
- decline in socio-economic condition
• Humanitarian based rehabilitation &
reconstruction will be the key process during
stalemate situation.
• Sustaining the benefits and rural assets created
questionable.
• Private sector dormancy.
• Frame conditions for sustainable investments yet
to evolve.
• Inadequate legal and Institutional frame work.
Regional Development without
Devolution:
• Regional development needs greater
devolution.
• Partial devolution without
complementary authorities/ not
adequate.
• Devolution hostile bureaucracy.
 RRR Funding ,eeds (Us$ Million)
Beyond Grand
Sector Immediate Medium
Medium Total
A. Protection and
105.9 89.6 6.1 201.6
Resettlement

B. Health 70.9 132.4 125.3 328.6

C. Education 54.4 83.4 44.4 183.1

D. Housing 132.4 173.2 304.4 610.0

E. Infrastructure 233.3 608.7 646.4 1488.5

F. Agriculture 67.5 63.1 11.1 141.7

G. Livelihoods, Employment /
30.3 53.5 12.9 96.7
skills and Micro finance
H. Capacity development and
14.4 18.0 3.2 35.6
Institution Strengthening
Total Needs- All Sectors 709.2 1222.9 1153.8 3085.8

Source:- Assessment of Needs in the conflict affected areas - 2003

 Funding Requirements and Composition (Us$ Million)
Capacity development and institution
Strengthening
Livelihoods, employment/ Skills
and Micro finance 30.3 14.4
105.9
67.5

Protection and
Agriculture Resettlement
Immediate
Total – 709.2 70.9
(Us$ Million) Health

Infrastructure Education
54.4

233.3
Housing

132.4
 Funding Requirements and Composition (Us$ Million)

Capacity development and

institution Strengthening
Livelihoods, employment /
Skills and Micro finance
53.5 18 89.6
63.1

132.4

Medium
Total – 1222.9 Health
(Us$ Million)
83.4
Education

Infrastructure
Housing
173.2

608.7
 Funding Requirements and Composition (Us$ Million)

Capacity development and

Livelihoods, employment / institution Strengthening
Skills and Micro finance
3.2
12.9 Protection and
Agriculture
11.1 6.1 Resettlement
Beyond 125.3
Health

Medium 44.4
Education

Total – 1222.9
(Us$ Million)
Housing
Infrastructure 304.4
646.4
RRR need & Rate of resource Mobilization
Total need US $ - 3086mn
(100%)
National roads + railway + power - 733mn

General RRR need - 2353mn

Mobilized up to now
On going projects - US $ 267mn (4.9%).
(1999-2004) – NEIAP, NECORD & NEERP.

In pipe line - 377mn (12.1%)

(2004-2010) – CAARP, NEHP, NEIAP-II,
PEACE-II, NECCDEP.
To fill the First Gap Projection
(Exclusively for General RR&R)

Current rate of Mobilization - US $

104mn per year.
Required number of years to mobilize
total needs at present rate of mobilization
– 22 years.
For implementation 27 years required at
current rate.

? A worrying Factor.
 Institutionalized Impediments
• Limitation of National Policies (Recruitment,
Placement, Financing criteria, Norms, etc.)
• Inadequate constitutional arrangement under 13th
Amendment (Planning Secretariat, Regional
Inst. Of Education)
• Manpower shortage –eternal – systemic
• Devolution unfriendly centre organizations
• Inability of NEPC to have say over central
subjects
• Absence of complementary authorities at NEPC
level.
• Absence of private sector initiatives.
• Institutionalized uncertinities and intermittent
unrests disrupting normalcy.
Conclusion:
• Scenario is extremely complex.
• Successful redemption depends on
various factors other than economic.