Dry zone of Sri Lanka, being the most agriculturally productive region of the country often affects by the water shortage and has a long history of irrigation-based water management for agricultural production. The expansion of crop cultivation into the north, east, and southeast dry zones of the country was enabled through the construction of elaborate water management systems, dating back to the period between 500 BC and 300 AD. The systems are based on water capture in small reservoirs commonly known as ‘tanks’ connected through canals forming cascades. However, with the expansion of large-scale water storage and irrigation infrastructure these small tanks system in the dry zone of Sri Lanka was paid low attention. Nevertheless, with the emergence of water resource management to the forefront of the development agenda, the importance of small tank system management was highlighted. Recently, water scarcity has often been observed in the region as a result of inter-annual and inter-seasonal variability in rainfall, variations in catchment area and associated land use changes while reducing the proportion of rainfall available for capturing in downstream tanks despite the growing demand for water to meet the needs of the growing population.
Climate Smart Irrigated Agriculture Project (CSIAP), hence being developed to uplift the agriculture livelihood of the small-scale tank-based farming community living in the most climatically vulnerable farming areas of the country. The Project Development Objective is to improve the productivity and climate resilience of small holder agriculture sector in selected hotspot areas. To achieve the above development objective, the project will be implemented under four components. The project will be implemented over a period of five years (2018 – 2024).
The objective of this component is to improve agriculture productivity and increase crop diversification through the adoption of Climate Smart Agriculture (CSA) practices improved off farm and on-farm water management and developing commodity markets.
This subcomponent will support the adoption of CSA and will focus on (a) demonstrating the effectiveness of CSA practices in farmers’ fields through Farmer Business Schools (FBSs) and leveraging information and communication technology (ICT) for peer-to-peer learning and (b) supporting the uptake of CSA practices by establishing Producer Groups (PGs). The key activities of this component are (a) Technical assistance (TA) to carry out appropriate technologies relevant to each mini-watershed,; (b) TA to develop and deliver training on climate-resilient practices and technologies , including the requirements for adoption; (c) the delivery of agronomic extension services to PGs through effective extension approaches (for example, field demonstrations and training events) and ICTs to facilitate adoption of climate-resilient practices and technologies; and (d) capacity development of PGs and support to investments associated with technology transfer to PGs on a pilot basis.
This subcomponent aims to strengthen the links between PGs and the agriculture commodity markets by: (a) upgrading and/or rehabilitating critical market infrastructure and (b) supporting farmers to access markets and develop sustainable links to agribusinesses. The key activities would be (a) development of common infrastructure for agri-commodity marketing (markets, storage, and access roads) and the construction and/or upgrading of Common Service Centers (CSCs); and (b) TA to support PGs to commercialize and link with agribusinesses.
The objective of this component is to facilitate (a) planning for water and other infrastructure necessary to support climate-resilient irrigated agriculture, (b) construction of the planned infrastructure, and (c) co-management of this infrastructure by central/provincial governments and the local community.
This subcomponent will support the rehabilitation of irrigation systems based on plans derived from hydrologic modelling accounting for projected climate change in the project areas. The key activities include: (a) TA to support hydrology modelling at three levels: hot spots (about 25,000 ha); mini-watersheds within the hot spot areas (about 4,000 ha), including tank cascade systems, stand-alone irrigation systems, and rain-fed agriculture systems;; (b) rehabilitation, modernization, and repair of existing cascade tanks and individual village tanks; construction of recharge wells in the tank beds; drainages and flood protection infrastructure; and (c) Field implementation of watershed treatment and water harvesting works.
This subcomponent aims to ensure the sustainable operation and maintenance (O&M) of tank systems at the individual tank level and systemwide. The main aree to: (a) establish Cascade Management Committees (CMCs) for each of the cascades of minor irrigation tanks within the watershed-based boundary of the hot spot areas; (b) strengthen FOs that have been set up to manage each tank; and (c) design and implement a monitoring system for water use and availability.
The objective of this component is to ensure the quality of overall project management, while ensuring smooth coordination of activity implementation by various agencies and strategic partners at national and subnational levels.
This emergency response component will allow for rapid reallocation of project proceeds in the event of a natural disaster or crisis that has caused or is likely to imminently cause a major adverse economic and/or social impact.
The primary project beneficiaries will be over 470,000 smallholder farmers in hotspot areas (375,000 ha) in 11 administrative districts (Kilinochchi, Mullaitivu, Anuradhapura, Polonnaruwa, Puttalam, Kurunegala, Trincomalee, Batticaloa, Ampara, Hambantota, and Moneragala) spread across six provinces (Northern, North Central, North Western, Eastern, Southern, and Uva) in the dry zone of Sri Lanka (see Project Area in Annex 7). Smallholder farmers consist of small farmers (1.0–2.0 ha of farmland) and marginal farmers (less than 1.0 ha). They will gain knowledge through technology transfer and access to infrastructure assets to enhance climate resilience in farming resulting in increased revenue from crop diversification and participation in emerging value chains. Many technical and managerial staff of the participating agencies will benefit through training and capacity-building activities. The project will also promote the participation of youth and women in all key project interventions to ensure that they would benefit from the project activities.
The project will be financed through a six-year Investment Project Financing (IPF) Credit. The total project cost is US$140 million and will be funded by The International Development Association (IDA) Transitional Credit of US$125 million, with the Government of Sri Lanka contribution of US$10 million and the beneficiaries contributing US$5 million in kind.
The IDA Transitional Credit procedures will be used to finance eligible expenditures necessary to meet the development objectives of the project with due attention to considerations in accordance with the provisions of the Financing Agreement.
The overall project implementation is the responsibility of the Ministry of Mahaweli, Agriculture, Irrigation and Rural Development (MMAIRD). The project will draw expertise from the Department of Agriculture (DOA), Department of Agrarian Development (DAD), and Irrigation Department (ID) and acquire outside expertise, including consulting services. The project will coordinate across departments, agencies, and strategic partners involved in the implementation of project activities.
The day-to-day management and operation of the project are the responsibility of the PMU, headed by a Project Director (PD) and provincial-level DPD’s offices.. Specifically, the Project Management Unit (PMU) under the MMAIRD engage in core functions such as procurement, financial management (FM), and safeguards. The PMU is responsible for ensuring that (a) all project activities are planned, financed, and implemented according to the project annual work program and budget; (b) project implementation is in line with the Project Implementation Plan (PIP); (c) project procurement and Financial Management (FM) activities are carried out on time according to the World Bank’s Procurement Regulations, the project fiduciary manuals of the PIP, and the PP; and (d) social and environmental safeguards applicable to the project are fully complied with. The PMU is also responsible for monitoring project activities, preparing the quarterly and annual project progress reports, and ensuring that all reports (including financial reports) are submitted to the World Bank on time.
The overall project oversight is the responsibility of the National Project Steering Committee (NPSC), established in the MMAIRD. and chaired by its Secretary. The main responsibility of the NPSC is to provide strategic guidance for the implementation of the project and to act as the interface between the central and provincial institutions. The NPSC will also approve the annual work program and budget for the project, endorse the working arrangements with strategic partners, and be briefed by the World Bank (and the PD) on the outcomes of implementation support and review missions carried out with the World Bank team at least biannually.