Following the tsunami of December 2004, the government of Sri Lanka encountered critical challenges in reducing the immediate suffering resulting from the effects of the disaster; restoring livelihoods and basic services; and starting the recovery and reconstruction process.
IDA helped the government to design the homeowner-driven housing program based on the principles of inclusiveness, equity, transparency, beneficiary participation, and the involvement of local level administrations. IDA also financed key implementing agencies such as Reconstruction and Development Agency (RADA), helping Sri Lanka jump-start the reconstruction process. In coordination with the government, other key donors for the housing sector–including the Asian Development Bank and Swiss and German development agencies–adopted the same model of the homeowner-driven housing program; and international NGOs were encouraged to co-finance the homeowner-driven housing program to complement the government's cash grant per family. The project provided cash grants for affected households to help restore their livelihoods and to rebuild their houses.
More than 100,000 Sri Lankan families benefited from livelihood cash grants, with the first installment paid within three months of the tsunami, which reduced immediate suffering, restored livelihoods, and restarted local economies.
Highlights:
- More than 80 percent of those who received IDA cash grants regained employment within one and a half years after the tsunami.
- The livelihood cash grants helped affected people get back to business in a short time and also helped children return to school as the families were able to replace school supplies and school uniforms lost by the tsunami.
- The in-situ housing reconstruction program supported by IDA engaged affected families in designing and implementing their own reconstruction projects, creating a sense of ownership and providing the hope for the future throughout the process.
- A technical audit has found that many affected families are now living in better houses than before the tsunami.
- Out of 24,072 partly-damaged houses in IDA-supported divisions, 22,417 houses (93 percent) have been fully repaired within 21 months of the tsunami. Out of 27,506 fully-damaged houses in the same divisions, 6,411 houses (24 percent) have been fully reconstructed in the same period.
- Immediately after the tsunami, IDA restructured its existing portfolio and came up with US$75 million reallocation from other projects to the Tsunami Emergency Recovery Program. In February 2005, a new credit of US$75 million was approved for the Second Phase of the program, bringing the total amount of IDA financing to US$ 150 million.
- In addition, IDA is also administering a US$25 million trust fund from the International Federation of Red Cross (IFRC) which is being used for housing reconstruction.
- IDA provided the equivalent of US$200 per family over four months to the most affected families–fishermen, the self-employed, and small-scale businesses such as trade and tourism. Among the total of 150,000 families who lost livelihoods due to the tsunami, more than 100,000 received IDA's livelihood support cash grants. Under a separate housing component, IDA has been supporting only in-situ housing reconstruction in eight tsunami-affected divisions by providing the equivalent of US$1,000 for partially-damaged houses and the equivalent of US$ 2,500 for fully-damaged houses.
The southwest region of the country is wrapping-up its housing program, but some areas of the northeast are expected to continue to experience a stalemate or very slow progress due to the deteriorating security situation. Reconstruction of houses located in coastal areas started only in the middle of 2006, and will continue until at least mid-2007. Even after completion of the project, there will be about 15,000 families in need of permanent housing. These cases are primarily landless families, and the government of Sri Lanka is seeking IDA's assistance for providing housing. Since the road and health components of the Emergency recover Program are still under implementation, it is too early to assess their impact.
RSS