US embassy cable - 05COLOMBO646

UNCLAS SECTION 01 OF 08 COLOMBO 000646 
 
SIPDIS 
 
STATE ALSO PASS TO USAID 
USAID/W FOR A/AID ANDREW NATSIOS, JBRAUSE 
DCHA/OFDA KISAACS, GGOTTLIEB, MMARX, RTHAYER, 
BDEEMER 
AID/W FOR DCHA/OFDA 
DCHA/FFP FOR LAUREN LANDIS 
DCHA DEPUTY ASSISTANT ADMINISTRATOR WILLIAM 
GARVELINK 
ANE DEPUTY ASSISTANT ADMINISTRATOR MARK WARD 
BANGKOK FOR OFDA SENIOR REGIONAL ADVISOR TOM DOLAN 
KATHMANDU FOR OFDA REGIONAL ADVISOR WILLIAM BERGER 
GENEVA FOR USAID KYLOH 
ROME PASS FODAG 
NSC FOR MELINE 
CDR USPACOM FOR J3/J4/POLAD 
USEU PASS USEC 
 
E.O. 12958: N/A 
TAGS: EAID, AEMR, PREL, PGOV, CE, Tsunami 
SUBJECT: SRI LANKA - EARTHQUAKE AND TSUNAMIS: 
USAID/DART SITREP #18 
 
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Summary 
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1.  Organizations involved in the transitional 
shelter sector continue to encounter obstacles to 
shelter construction.  These obstacles include the 
lack of available materials, specifically timber, 
on the local market; delays in the Government of 
Sri Lanka's (GOSL) allocation and identification of 
suitable land for the construction of transitional 
shelters; reluctance of tsunami-affected residents 
to engage in reconstruction or accept transitional 
shelters due to fear of losing GOSL entitlements 
for damaged property; and the application of value 
added taxes on the purchase of local materials 
(VAT).  Some organizations involved in the shelter 
sector have been unable to begin the construction 
of transitional shelters and others have ceased 
their shelter programs due to a lack of available 
materials.  As of March 30, USAID/Office of U.S. 
Foreign Disaster Assistance's (OFDA) implementing 
partners have constructed 1,224 transitional 
shelters in Sri Lanka, and according to the U.N. 
High Commissioner for Refugees (UNHCR), as of March 
31, a total of 7,747 transitional shelters have 
been built on the island.  Figures vary on the 
number of total shelters required with GOSL 
estimates ranging from 38,588 to 41,474 shelters. 
UNHCR reports that 68,000 transitional shelters 
have been pledged.  End summary. 
 
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Donor Coordination Meeting 
--------------------------- 
 
2.  On March 29, the USAID/Disaster Assistance 
Response Team (DART) Information Officer and the 
USAID/Colombo Humanitarian Assistance Program 
Manager (HAPM) attended a donor coordination 
meeting in Colombo. In attendance were 
representatives from the Canadian International 
Development Agency (CIDA), Australian High 
Commission, European Commission, U.N. High 
Commissioner for Refugees (UNHCR), French Embassy, 
and German Technical Cooperation Agency (GTZ).  At 
this meeting the Senior Shelter Coordinator for 
UNHCR gave a presentation on the status of the 
transitional shelter sector in Sri Lanka. 
 
3.  The UNHCR representative stated that currently 
30 percent of public buildings are still occupied 
by internally displaced persons (IDPs), and there 
has been an increase in the number of host 
families, as people have started to move from self- 
settled camps and tents and to reside with host 
families.  In addition, people have started 
returning to their own land as the level of fear 
present in the aftermath of the tsunami has 
decreased. 
4.  However, the UNHCR representative reported that 
reconstruction has not been occurring as tsunami- 
affected families are worried about GOSL 
entitlements for damaged and partially damaged 
houses.  The GOSL policy is to provide 250,000 Sri 
Lankan rupees to families whose homes are more than 
40 percent destroyed and 100,000 Sri Lankan rupees 
to families whose homes are less than 40 percent 
destroyed.  However, the pace of GOSL damage 
assessments and classifications, managed by the 
Task Force for Rebuilding the Nation (TAFREN) has 
been slow, and many families are worried that if 
non-governmental organizations (NGOs) assist them 
with reconstruction and rebuilding, they will lose 
their GOSL entitlements.  [Note.  TAFREN is one of 
the three task forces set up by the President of 
Sri Lanka. It will handle issues pertaining to 
permanent housing and infrastructure 
rehabilitation.  End Note.] 
5.  In addition, according to the UNHCR Shelter 
Coordinator, another serious obstacle in the 
shelter sector is the lack of available 
construction materials, specifically timber, on the 
local market to construct transitional shelters. 
To alleviate this shortage, Oxfam-Australia has 
donated 30,000 cubic feet of timber that is en 
route by ship from Australia; however, this timber 
will not arrive until May.  Due to the shortage of 
materials locally, many organizations involved in 
the shelter sector are importing products from 
China and Pakistan, but most of these materials 
will also not arrive in Sri Lanka until May.  The 
UNHCR representative noted that many international 
NGOs have local NGOs as implementing partners, and 
until now, the local NGOs have been able to procure 
materials on the island; however, now there is no 
available timber on the market for these NGOs to 
procure.  The UNHCR representative anticipated that 
there will be significant construction of 
transitional shelters in May and June, but the 
timeline for the construction of these transitional 
shelters is now more than six months due to the 
lack of available materials. 
 
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Task Force on Relief (TAFOR) and TAFREN Meeting 
--------------------------------------------- -- 
 
6.  On March 29, the GOSL called a meeting of 
TAFOR, which handles issues related to IDPs and 
their needs, and TAFREN, along with key 
multilateral and bilateral donors, to discuss how 
plans for the construction of transitional shelters 
may be expedited given the upcoming monsoon season 
and the associated health risks to the population. 
[Note: The monsoon season is from May to July in 
southwestern Sri Lanka and November to January in 
northeastern Sri Lanka.  End Note.]  Meeting 
attendees included officials from the Urban 
Development Authority, Ministry of Finance, World 
Bank, Asia Development Bank, U.N. Development 
Program (UNDP), UNHCR, and USAID. 
 
7.  Meeting participants discussed the following 
topics: 
 
  1)   the need to update current figures on the 
     number of housing units damaged due to the tsunami 
     and how many transitional and permanent shelters 
     have been constructed to date; 
2)   problems related to displaced populations 
staying in substandard tents that were provided 
early in the relief response; 
3)   whether to focus energies on providing 
improvements to emergency shelter (such as tents 
and basic temporary structures) or whether to 
proceed further with transitional shelters; 
4)   existing obstacles to the completion of 
pledged transitional shelter units such as the lack 
of construction supplies in Sri Lanka, the 
application of duties and VAT, and constraints to 
allocating land at the district levels; 
5)   multi-lateral donors and U.N. organizations 
stressed concerns about the lack of clear and 
consistent information that is available to tsunami- 
affected populations regarding their entitlements 
for shelter and other financial assistance.  This 
is a major problem as some people are hesitant to 
accept transitional shelter as they fear they will 
lose their entitlement to permanent housing 
solutions. 
 
8.  No major decisions were taken by the GOSL 
representatives regarding these issues; however, 
TAFOR and TAFREN representatives agreed to work in 
close consultation with each other on shelter 
issues and to place staff members in each other's 
organizations to facilitate daily direct 
communications.  The head of TAFOR also agreed to 
examine the issue of communicating entitlements to 
the public and to work toward standardizing 
messages. 
 
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Status of USAID/OFDA implementing partners' shelter 
programs 
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9.  During the week of March 28, a USAID/Colombo 
Foreign Service National (FSN) assisting the 
USAID/DART spoke with representatives of CHF 
International, GOAL, Catholic Relief Services 
(CRS), and Shelter for Life (SFL) to discuss the 
status of their shelter programs and any problems 
or obstacles these organizations may have 
encountered.  As of March 30, USAID/OFDA's 
implementing partners have completed 1,224 
transitional shelters.  To date, CHF has completed 
190 transitional shelters in Galle and Matara in 
southern Sri Lanka, and 416 transitional shelters 
are currently under construction.  As of March 20, 
CRS has constructed 792 transitional shelters in 
Batticaloa and Ampara in eastern Sri Lanka. 
 
10.  In GOAL's original proposal to USAID/OFDA, the 
organization planned to construct 2,000 
transitional shelters; however, GOAL now plans to 
build 1,180 transitional shelters and provide 820 
shelter packages. [Note:  Shelter packages include 
tools and materials for reconstruction. End Note.] 
To date, GOAL has constructed 242 transitional 
shelters in Matara, Hambantota, and Ampara 
districts, and 104 transitional shelters are 
currently under construction.  GOAL has also 
identified 822 sites to build transitional shelters 
in these three districts. 
 
11.  A GOAL representative stated that the major 
constraint to the construction of shelters in 
Ampara District has been land allocation and the 
size of the plots allotted.  GOAL plans to work 
with local partners to increase its capacity to 
produce shelters.  GOAL started transitional 
shelter construction in Matara three weeks ago, and 
in Hambantota, the shelter program is on schedule 
for completion.  GOAL is examining the first 
shelters it constructed in Hambantota, at a cost of 
USD 320, to make small improvements and construct 
small kitchens to bring them in line with the 
higher specifications of those transitional 
shelters that were constructed later at an average 
cost of USD 420, per GOSL guidelines. 
12.  GOAL reported that it is necessary for TAFREN 
to provide some clarity regarding their assistance 
package and entitlements to host families and to 
those residents whose homes were damaged. 
According to GOAL, since the GOSL has been slow in 
conducting these damage assessments and reimbursing 
those families with damaged homes, there is 
currently considerable confusion in the field 
regarding this issue, and GOAL's assistance program 
to families whose homes were damaged by the tsunami 
has all but ceased.  GOAL reported that residents 
do not know when their homes will be assessed or by 
whom, and as a result many residents are hesitant 
to begin reconstruction work. 
13.  SFL is currently awaiting VAT clearance from 
the GOSL in order to commence their shelter 
program.  Initially SFL planned to construct 285 
transitional shelters in Trincomalee in 
northeastern Sri Lanka and cleared land to begin 
work.  In Ampara, SFL planned to construct between 
1,000 and 1,200 transitional shelters.  However, 
according to SFL, the unit cost per transitional 
shelter has increased from USD 350 to USD 450, and 
this may limit SFL's ability to construct the 
planned number of shelters.  In the coming days, 
SFL plans to sign Memoranda of Understanding (MOU) 
will local authorities to begin work, but actual 
construction and the purchase of materials will 
only begin once they have received the VAT 
clearance.  Upon receipt of the VAT clearance, SFL 
plans to build 285 transitional shelters within 
three weeks in Trincomalee.  [Note:  SFL planned to 
procure USD 800,000 worth of construction materials 
locally; however, they are being asked to pay more 
than USD 120,000 in VAT.  There are no clear 
procedures for the organization to obtain 
reimbursement of this tax.  USAID/Colombo has 
sought to address this issue with the Ministry of 
Finance with little success, and the U.S. 
Ambassador has now sent a letter to the President 
requesting action on this issue.  End Note. ] 
------------------------ 
Shelter Sector Meeting 
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14.  On March 31, the USAID/DART IO and 
USAID/Colombo HAPM attended a shelter sector 
meeting at the Transitional Accommodation Project 
(TAP) that included organizations operating in the 
shelter sector as well as Sri Lankan government 
officials.  According to the UNHCR Senior Shelter 
Coordinator, as of March 31, 7,747 transitional 
shelters have been constructed and 5,375 
transitional shelters are currently under 
construction in Sri Lanka.  TAP reports that 
between 9,033 and 10,415 shelters have been 
completed. 
According to divisional secretaries, 38,588 
transitional shelters are required; however, the 
Sri Lankan Census Department reports that 41,474 
transitional shelters are necessary.  UNHCR 
reported that to date, 68,000 transitional shelters 
have been pledged.  The UNHCR representative noted 
that it is difficult to provide an exact figure for 
the number of transitional shelters required or 
those that have been completed because there are 
discrepancies between the numbers provided by UNHCR 
and those provided by TAP.  Currently, GOSL, 
Government Agents (GA), and NGOs are all using 
different methods to determine the transitional 
shelter needs.  UNHCR obtains its numbers from 
organizations that participate in shelter meetings 
at the district level, and often there is not full 
attendance at these meetings.  Thus, the UNHCR 
representative noted, its numbers are often lower 
than TAP's.  Additionally, TAP often includes the 
number of emergency shelters that have been 
constructed in their transitional shelter 
estimates, which accounts for the reason that TAP's 
estimates for the number of completed transitional 
shelters are often higher than UNHCR's estimates. 
[Note:  Given the different methods used to compile 
shelter figures, it is difficult to obtain a 
concrete figure regarding the number of shelters 
completed and the number of shelters required. End 
Note.] 
 
15.  At the shelter meeting, several NGOs voiced 
various concerns about obstacles they have 
encountered in transitional shelter construction. 
USAID/OFDA implementing partner CHF stated that in 
Galle and Matara, there is a sense of desperation 
and urgency for shelters to be constructed before 
the monsoon season, and CHF has encountered 
pressure by the local government at the district 
level to build shelters without consideration for 
longer-term issues.  CHF stated that the district 
government officials are so anxious to quickly 
construct transitional shelters that they do not 
consider whether beneficiaries are involved in the 
process, water and sanitation issues, and standards 
of construction.  CHF noted that district level 
officials often do not take into account that these 
transitional shelters may be used for a year or 
two, and problems such as overcrowding and lack of 
drainage will be acute problems if not addressed at 
the outset.  The Sri Lankan government officials 
agreed that it was necessary to remember to 
consider the long-term implications of hasty 
construction.  The CHF representative stated that 
he had heard that TAP officials would be present at 
the divisional level to advise local government 
officials, and the GOSL officials present at the 
meeting stated that TAP officials are currently 
operating in most districts. 
 
16.  The CHF representative also stated that 
because of the political pressure placed on 
divisional secretaries, these officials are often 
being forced to choose between NGOs with many years 
of experience in the shelter sector who take the 
position that transitional shelters cannot be built 
in haste and should involve beneficiaries, and 
those other agencies who do not have any background 
in shelter but who advise the divisional 
secretaries that they can build shelters quickly. 
 
SIPDIS 
Faced with this choice, the divisional secretaries 
often choose the latter. 
 
17.  Sri Lankan government officials agreed that 
guidance is necessary at the divisional level, and 
UNHCR noted that in many cases, those shelters that 
were built poorly and too quickly now must be 
upgraded and improved.  [Note:  CHF is engaged in a 
clean-up exercise and is upgrading those shelters 
that were constructed improperly.  End Note.]  The 
UNHCR representative pointed out that two years 
after Hurricane Mitch, 80 percent of those affected 
by the hurricane in Central America were still 
living in transitional shelters.  Meeting 
participants agreed that GAs and divisional 
secretaries need to understand the nature of 
 
SIPDIS 
transitional shelter and expectations, and TAP must 
assist in delivering this message. 
 
18.  The lack of construction materials, 
specifically timber, was also discussed.  The CHF 
representative stated that many agencies are 
stopping their shelter programs due to the lack of 
timber.  Organizations have also tried to obtain 
timber from districts other than the areas in which 
they are working; however, they have encountered 
logistical problems transporting the timber to 
their areas of operation.  Oxfam- Great Britain is 
considering the use of plywood as a substitute for 
timber, and TAP has been examining different 
materials, such as plywood sheets, as an 
alternative. 
 
19.  The Oxfam-Australia representative stated that 
in early March, Oxfam requested that all 
organizations submit their timber requirements to 
the organization.  Oxfam-Australia then determined 
that the demand for timber was between 12,000 and 
13,000 cubic meters of timber.  The Oxfam-Australia 
representative reported that this shipment of 
timber will arrive from Australia in approximately 
seven weeks. 
 
20.  Another issue leading to a delay in the 
construction of transitional shelters is the fact 
that the GOSL has not identified land for the 
construction of these transitional shelters.  The 
CHF representative stated that there is a lack of 
coordination between the district and divisional 
level, and often the same areas that TAP has 
designated for transitional shelter have been 
designated for permanent structures.  Additionally, 
the CHF representative reported that in Galle and 
Matara, the GOSL is examining leasing land from 
private owners for the construction of temporary 
shelters.  [Note: This option may pose a problem in 
the future as the private owners have been advised 
by the GOSL that the land will only be leased for 
one year.  If permanent shelters are not available 
after one year, the beneficiary will be forced to 
move again and will be without shelter.  The GOSL 
officials at the shelter meeting are examining this 
issue.  End Note.] 
 
LUNSTEAD