Japanese agency to give $2.5 million grant to restore livelyhood of 2500 Sri Lankan families

The Japan Fund for Poverty Reduction, administered by ADB, is extending a $2.5 million grant to provide cash-for-work and skills training for at least 2,500 families in five conflicted-affected districts in the north of the country. The grant will rebuild about 100 kilometers of rural access roads and 200 kilometers of field irrigation canals, and will complement the separate ADB-assisted, Conflict Affected Region Emergency (CARE) Project, which is also helping to rehabilitate damaged and neglected infrastructure.

The cash-for-work program is expected to provide jobs for about at least 2,500 resettled people to restore and maintain irrigation systems and access roads in the districts of Jaffna, Killinochchi, Mannar, Mullaitivu and Vavuniya. In addition, 2,000 of these people will get training in modern sustainable agricultural production practices, the marketing of farm goods, food processing and other self-employment skills. Selection for the two activities will be limited to one eligible male, or female member of each resettled family.

The project has a number of innovative features, with those in the cash-for-work program required to open savings accounts and deposit 25% of their incomes for use in future livelihood creation activities. Community-based organizations will be set up at the resettlement villages to oversee the project, and since most villagers have no experience with banks, they will hold savings passbooks over the course of the program to ensure participants comply with the deposit requirement. At least 50% or more of those selected for the work program and skills development training will be women.

Along with the Japan Fund for Poverty Reduction Grant, the Government of Sri Lanka will provide assistance of $150,000, with communities making an in-kind contribution of $137,500 for a total project cost of $2.78 million. The Ministry of Economic Development is the executing agency for the project which will be implemented over 30 months with an expected completion date of December 2012.