US embassy cable - 05COLOMBO1119

UNCLAS SECTION 01 OF 07 COLOMBO 001119 
 
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 #26 - Assessment of OFDA Funded Programs in Southern 
Districts 
 
 
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Summary 
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1.  The USAID/Office of U.S. Foreign Disaster Assistance 
(OFDA) Program Officer, USAID/Colombo Humanitarian Assistance 
Program Manager (HAPM) and USAID/Colombo Development Outreach 
and Communications Officer (DOC) traveled to Galle and Matara 
districts from June 13 through 15 to monitor USAID/OFDA-funded 
programs and review the progress of tsunami recovery efforts. 
During the visit, USAID staff met with representatives from 
Sarvodaya, Christian Children's Fund (CCF), GOAL, the 
International Organization for Migration (IOM), Community 
Habitat and Finance (CHF) and the Arthacharya Foundation. 
USAID/OFDA cash for work initiatives and micro-credit programs 
are reaching households in tsunami-affected areas and appear 
to be having a positive impact while shelter programs are 
making steady progress on the construction of transitional 
shelters on the southern coast.  Partners operating on the 
southern coast are well into their respective programs and are 
on track to meeting all program objectives by the end of 
September.  End summary. 
 
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Sarvodaya - Galle - Water/Sanitation and Cash for Work 
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2.  USAID/OFDA provided $1.7 million to Sarvodaya to implement 
a water and sanitation program in Galle, Hambantota and 
Ampara.  The USAID team visited a site in Paraliya village, 
Hikkaduwa division, Galle District where Sarvodaya is 
constructing new latrines and rehabilitating old latrines. 
Note: Paraliya village is the site of the now infamous tsunami 
train wreck that killed over 1,000 people. 
 
3.  Hikkaduwa was the hardest hit division in Galle district. 
To date in Galle district alone Sarvodaya has built a total of 
419 out of a planned 617 latrines, has repaired 20 out of a 
planned 122 wells and has repaired 39 out of a planned 49 
latrines.  To date a total of 2,000 beneficiaries in Galle 
district have benefited from this program out of a planned 
total of 2,965. 
 
4.  Sarvodaya experienced delays in getting their program 
started due to rainy conditions and the increasing prices for 
sand.  With several water and sanitation programs being 
implemented throughout the country, the cost of sand has 
increased considerably, in some areas almost doubling in 
price.  As a result Sarvodaya has had to slightly reduce 
unskilled labor wages in order to compensate for the increase 
in sand prices.  Sarvodaya is presently on track to complete 
their program by 15 September.  Note: The USAID team noticed 
several permanent shelters being constructed in Paraliya. 
Beneficiaries we talked to say their permanent shelters were 
provided by the Janatha Vimukthi Peramuna (JVP and/or People's 
Liberation Front).  The USAID team inquired as to what the 
process is for residents to qualify for a permanent shelter 
from the JVP since it was clear not everyone in the community 
was being assisted.  The team was told that community members 
provided district representatives with the names of those most 
in need and those names were given to the JVP.  As far as the 
USAID team could tell, there was no coherent process being 
followed by the JVP to select beneficiaries for permanent 
shelter assistance. 
 
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Community Habitat and Finance (CHF) - Galle - Transitional 
Shelter, Water and Sanitation and Cash for Work 
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5.  According to U.N. High Commissioner for Refugees (UNHCR) 
3,289 of the 6,534 required temporary housing units in Galle 
have been completed as of June 2 with another 1,325 currently 
under construction.  Although significant progress is being 
made in the construction of transitional shelters, UNHCR 
estimates that 20%-30% of shelters in the "completed" category 
are sub-standard or built on inappropriate sites. As a result 
many shelters that have already been constructed need to be 
"upgraded".  The Transitional Accommodation Programme (TAP) is 
planning to assess transitional shelters across the island and 
will identify all sub-standard shelters requiring upgrading. 
 
6.  USAID/OFDA provided $2.0 million to CHF for the 
construction of transitional shelters, repair of homes, 
construction of latrines and cash for work in Galle and Matara 
Districts.  CHF has completed approximately 800 shelters in 
Galle and Matara Districts out of a total of 1,500 planned. 
The CHF representative noted that initially CHF planned to 
construct 3,000 transitional shelters; however, initial 
assessments conducted days after the tsunami over-estimated 
the number of those residents who lost their homes by almost 
50 percent. 
 
7.  With the cost savings in their grant CHF is upgrading 
shelters in accordance with the transitional shelter strategy 
(TSS) developed by UNHCR and adopted by the GOSL.  The TSS is 
based, in part on UN and Sphere Project guidelines for shelter 
sector activity.  A Transitional Accommodation Programme (TAP) 
was then created by the GOSL to further guide shelter sector 
activities.  At a minimum the GOSL has requested that all 
transitional shelters be about 200sq ft, provide security and 
privacy, thermal comfort and adequate living conditions to 
carry out normal household duties and re-establish 
livelihoods.  In addition, adequate water and sanitation, 
garbage disposal, and basic electricity should be provided. 
CHF is upgrading their temporary shelters by adding kitchen 
verandas to their shelters and where family size exceeds 5, 
are doubling the size of the shelters.  CHF is also adding 
plywood to the sides of its transitional shelters instead of 
just plastic sheeting. 
 
8.  In addition to providing transitional shelter CHF is 
implementing quick impact projects through two local partners 
- Arthacharya and Project Galle.  Quick impact projects range 
from the construction of latrines, clearing existing drainage 
systems, digging new systems, road rehabilitation, and bridge 
repairs to the distribution of household goods such as lamps, 
kitchen utensils and chairs.  In Galle, the USAID team visited 
a camp where Project Galle volunteers and CHF cash for work 
workers were building a drainage system to prevent flooding in 
the camp.  Upgrades to shelters in this camp were planned 
through the addition of gutters.  CHF local partners are also 
providing training to beneficiaries on solid waste management 
and compost making.  Currently 50% of CHF's quick impact 
projects are for livelihoods support primarily through cash 
for work projects. 
 
--------------------------------- 
Arthacharya - Galle - Micro-Credit 
--------------------------------- 
 
9.   Nathan Associates, Inc. received $10 million from 
USAID/OFDA for post-tsunami recovery programs in Sri Lanka. 
One of the principal components of their program seeks to help 
tsunami-affected individuals and families regain livelihoods 
 
SIPDIS 
that were either lost of negatively-affected by the disaster. 
During the visit to the southern districts, USAID staff 
visited the Arthacharya Foundation, a local NGO that has 
partnered with Nathan Associates to provide micro-credits to 
tsunami-affected persons. 
 
SIPDIS 
 
10.  To date Arthacharya has disbursed a total of 2 million RS 
in loans and grants to 50 families through its community based 
organizations (CBO).  Loans have been used to start a number 
of small businesses such as sewing, coir weaving, wood 
carving, fishing, food stands, small boutiques, and painting. 
The loans range in value from 15,000 RS to 22,500 RS and are 
disbursed to recipients in two installments.  The first 
installment is up to 7,500 RS and then based on the 
beneficiary's pay back history they can qualify for a second 
installment of up to 15,000 RS.  Loans are currently being 
paid back by the beneficiaries with 4 percent interest. 
 
11.  As part of the vetting process, each beneficiary has to 
meet a set of conditions set by Arthacharya to ensure due 
diligence on the part of the beneficiary in managing and 
paying back their loans.  Loan beneficiaries are monitored by 
Arthacharya on a regular basis to ensure they are adhering to 
the criteria set forth.  Criteria include things such as: 
beneficiaries must have 30 percent of loan value in reserve 
prior to receiving the loan; attend weekly and monthly 
meetings; should have no other outstanding loan debt; must 
make loan payments on time; and adhere to a mandatory 
composting and solid waste management requirement.  The USAID 
team thought this was an interesting requirement and asked why 
this was necessary.  Arthacharya informed the USAID team that 
they were trying to teach their beneficiaries respect for the 
environment which would hopefully translate into 
environmentally friendly businesses.  Additionally, a side 
benefit of the mandatory composting is beneficiaries can sell 
the compost on the local market or to Arthacharya for a small 
profit. 
 
12.  The USAID team interviewed two families in the village of 
Mahamodara who received Arthcharya loans to help them in the 
fishing industry.  Hansini, the mother in the first family 
explained that three of her husband's four boats, along with 
all but two of their nets, were destroyed in the tsunami. With 
a 30,000 RS (approximately 300 USD) loan, the family purchased 
two nets, doubling their earning power to a net of 2-3 USD a 
day after expenses such as paying the crew, depending on the 
catch. The small fish they trap in their nets fetches 2.5 USD 
per kilo.  Once their loan is repaid, the family plans to 
purchase three more nets.  One boat can use as many as 10 
nets. 
 
13.  The second family the team met was Chandra and Indrani, 
husband-and-wife fish sellers. With a 20,000 RS (approximately 
200 USD) loan, they purchased a new bicycle, scale, and knife 
to replace equipment lost in the tsunami. Chandra rises daily 
at 4 a.m. to purchase 25 kg. of fish off the boats. At 7:30 he 
sets off and pedals 12 km to make deliveries to regular 
customers. He had not worked since the tsunami without the 
bicycle, but today nets approximately 3 USD per day.  His wish 
once the loan is repaid is to receive a consumer loan that 
would allow him to purchase a motorbike to access more 
customers. Indrani said her role in the partnership is to make 
sure they save enough money to meet the monthly loan payments. 
 
14.  The USAID team was impressed with the level of program 
monitoring Arthacharya had in place for its micro-credit 
loans.  Monitoring appeared to be taking place at several 
levels with all levels feeding back to Arthacharya.  Field 
monitors in each community conduct monitoring visits once a 
week, sometimes even conducting "surprise" visits to the 
beneficiary's place of business.  Field monitors then report 
any problems and/or successes back to the board of directors 
for CBO. The CBO then reports to Arthacharya.  It is the board 
of directors for each CBO who determines who qualifies for a 
loan and who does not.  In addition to the field visits, 
monthly meetings are held between the beneficiaries and 
Arthacharya to discuss their programs.  Meetings are also held 
between Arthacharya and the Committee for Loans and Recovery 
on the 15th and 30th of every month. 
 
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IOM - Matara - Transitional Shelter and Livelihoods 
Restoration 
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15.  USAID/OFDA provided $500,000 towards IOM's international 
tsunami appeal for emergency relief supplies, psychological 
 
SIPDIS 
and social support, emergency shelter and livelihoods 
restoration.  In Matara IOM has provided 352 transitional 
shelters and continues to provide emergency relief supplies on 
a small scale based on special needs and/or gaps.  The USAID 
team visited a transitional shelter camp built by IOM that 
appeared to be below the TSS requirements.  The IOM 
representative informed the USAID team that residents in this 
camp would be moved shortly to a transitional shelter camp, 
with larger shelters built on land provided by the government. 
 
16.  On June 14, the USAID team attended an IOM tool 
distribution for tsunami-affected carpenters in Matara 
District.  The tool kits distributed by IOM included hand 
saws, an electric drill, drill bits, chisels, hammers, 
measuring tape, an angle grinder, a vise grip, as well as 
other items. Other small business tools being distributed that 
day included a bike, cooking supplies and shoe making 
supplies. 
 
17.  In Matara District, with USAID/OFDA support, IOM is also 
assisting women in six camps by providing two sewing machines 
per camp as well as cutting tables, materials, and thread. 
The USAID team attended a workshop where women were receiving 
training in small business management, marketing, and 
financial management of small businesses to help them more 
effectively market and sell their goods. Workshops are also 
held to assist women in upgrading their sewing skills.  Sewers 
receive a manual machine, materials and skills and business 
management training.  All beneficiaries attend an information 
training session when they receive equipment through IOM to 
ensure that recipients understand that these goods are to 
benefit their families' incomes and should not be sold. 
 
18.  The USAID team visited one of the IOM beneficiaries, a 
seamstress, who had been provided a sewing machine and sewing 
materials through IOM. She showed the team several items she 
had made that were ready to be taken to market to be sold. 
Items she had made included mosquito nets, blankets, pillow 
covers and shoulder bags.  Another IOM beneficiary visited by 
the USAID team was a shoemaker.  He, his father and brother 
lost their shoe business through the tsunami and had been 
provided the tools and materials to make shoes through IOM. 
At the time of the visit there were several pairs of shoes on 
the floor of the beneficiary's house, which was also doubling 
as his workshop, waiting to go to market. 
 
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Christian Childrens Fund (CCF) - Matara - Psychological and 
Social and Protection Support 
--------------------------------------------- ----------- 
 
19.  USAID/OFDA provided $798,243 to CCF for psychological and 
social support through child-friendly spaces where games and 
activities are designed to help tsunami-affected children with 
emotional recovery.  On June 14, the USAID team visited a 
transitional shelter camp where CCF is reducing child 
vulnerability and promoting the recovery and functioning of 
children, youth, parents and communities through community 
based psychological and social and protection support. In the 
camp built and run by IOM, CCF has set up a camp care 
committee.  The camp care committees are made up of camp 
residents, with all committees being 50 percent men and 50 
percent women.  These committees speak on behalf of all camp 
residents. 
 
20.  The USAID team was able to participate in one of the 
committee meetings during which camp residents raised 
concerns, made suggestions and provided feedback on services 
being provided to them.  Concerns were raised on camp 
security, and transportation for kids to get to and from 
school - residents asked that transportation be provided for 
their children instead of them having to take public 
transportation.  Parents felt the distance their children had 
to travel to school was too far.  Some residents asked they be 
given gas cooking stoves instead of the kerosene stoves they 
currently have.  Residents complained that the kerosene stoves 
made the camp smell and were not as easy to use as the gas 
stoves.  Residents also inquired about bikes that had been 
promised to them, but that had still not been delivered. 
 
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Matara District - GOAL - Transitional Shelter and Livelihoods 
Restoration 
--------------------------------------------- ---------------- 
 
21. USAID/OFDA provided $1,280,423 million to GOAL for the 
construction of transitional houses, repair of homes, and 
construction of latrines in Hambantota, Ampara, and Matara 
Districts.  On June 14, the USAID team met with several GOAL 
representatives in Matara District to discuss GOAL's 
USAID/OFDA-funded transitional shelter program and livelihoods 
restoration program.  The GOAL representative stated that the 
organization initially did not intend to build transitional 
shelters in Matara District as the area was adequately covered 
by other NGOs; however, many NGOs were unable to fulfill their 
previous commitments, and GOAL started building shelters in 
Matara District in March.  As of the USAID visit GOAL had 
completed a total of 134 transitional shelters in Matara, but 
plans to complete approximately 250 shelters total in Matara 
District. 
 
22. The USAID team visited a site where GOAL had provided 
transitional shelters on beneficiaries own land.  Some 
residents constructed the shelters on the foundation of their 
old houses, while others constructed them next to the old 
foundation depending on their reconstruction plans.  This 
situation, in which residents are able to rebuild on their own 
land, is an ideal situation for transitional shelter.  Because 
beneficiaries are already on their own land, they can 
immediately begin the process of transforming and making 
investments in their shelter, integrating the transitional 
shelter into their permanent structure.  GOAL noted that the 
allocation of land for transitional shelters is a significant 
problem, and the organization has encountered many problems 
obtaining land from the Government of Sri Lanka (GOSL). 
 
23. In March, when GOAL began constructing the structures, 
housing standards required a total cost of $300 per shelter 
but that standard has since increased to $400 a shelter.  As a 
result, GOAL is now retrofitting the shelters with separate 
kitchens.  The GOAL representative reported that since USD 400 
is now the limit for the cost of shelters, after all 
transitional shelters have been constructed, as a separate 
project (not with USAID/OFDA funding) GOAL will revisit 
previously constructed transitional shelters and install 
kitchens and electrical wiring. 
 
24.  In addition to transitional shelter GOAL is implementing 
a livelihoods restoration project in Matara.  The USAID team 
observed several paddy fields in Matara that GOAL, through 
their cash for work program, had restored.  Through this 
initiative GOAL cleared acres of fields destroyed by the 
tsunami and created productive paddy fields.  GOAL brought 
 
SIPDIS 
together community members, most of who own a piece of the 
field, to clear the land, prepare the soil and sow the field. 
In a few months time the fields will be harvested and the rice 
kept for household consumption or sold for profit. GOAL also 
created an irrigation system throughout the field to help with 
proper drainage, and cleaned out the existing drainage system 
of standing debris in order to reduce the risk of water borne 
diseases.  The GOAL representative noted that one of the 
unintended benefits of this initiative is the reduction in 
mosquito breeding and dengue fever in the area.  The USAID 
team was impressed with the work GOAL had done and was happy 
with the sustainability factor of the project. 
 
LUNSTEAD