Identifier
Created
Classification
Origin
05COLOMBO1795
2005-10-12 08:27:00
UNCLASSIFIED
Embassy Colombo
Cable title:  

Post-Tsunami Housing Update: Sri Lanka and

Tags:  EAID ECON PGOV CE MV 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 04 COLOMBO 001795 

SIPDIS

DEPT FOR SA/INS FOR M.GOWER AND C.SIM; TREASURY FOR S.CHUN

E.O. 12958: N/A
TAGS: EAID ECON PGOV CE MV
SUBJECT: Post-Tsunami Housing Update: Sri Lanka and
Maldives

REF: STATE 184326

UNCLAS SECTION 01 OF 04 COLOMBO 001795

SIPDIS

DEPT FOR SA/INS FOR M.GOWER AND C.SIM; TREASURY FOR S.CHUN

E.O. 12958: N/A
TAGS: EAID ECON PGOV CE MV
SUBJECT: Post-Tsunami Housing Update: Sri Lanka and
Maldives

REF: STATE 184326


1. This cable is in response to reftel.


2. Summary: Overall, the housing process is going well in
Sri Lanka and Maldives, with the recent announcement of
relaxed buffer zone requirements in Sri Lanka possibly
improving the outlook for construction of additional
permanent housing. All IDPs who wish to be in temporary
housing in Sri Lanka and Maldives are accommodated.
Neither the Government of Sri Lanka (GSL) nor the Maldivian
Government (GORM) is seeking additional funds for either
temporary shelter upgrades. NGOs are working with donors
and the GSL to develop preparedness plans for coming
monsoons in Sri Lanka. Maldives is coming out of the
monsoon period (which will end in October) and reports no
adverse affects on the IDP community. The GORM, with
limited absorptive capacity, is making a strong effort,
trying to effectively program 10-15 times their normal
intake of foreign assistance, while simultaneously dealing
with an enormous budget shortfall, and increased welfare
needs. We are working with the GORM to identify
appropriate uses for our USD 8.7 million contribution and
will conclude an agreement identifying sectors soon. Given
that several inhabited islands were rendered uninhabitable
by the tsunami, and that impacted areas are dispersed over
1000 miles of the Indian Ocean, there will need to be an
element of patience in working with the GORM on this
rebuilding effort. End Summary

Sri Lankan Housing Situation
--------------


3. The GSL divides housing into two categories ? owner-
driven and donor-driven. Under the owner-driven housing
program, homeowners who suffered damage in the tsunami are
provided rebuilding grants and take the responsibility for
their own repairs. To date, of 45,578 tsunami affected
households in the program, 42,486 have received the initial
tranche of monies (which is to be provided in three
tranches).


4. Under the donor-driven housing program, donors are
rebuilding homes, typically outside the 100m/200m ?buffer
zone? declared by the GSL in the immediate aftermath of the
tsunami. Thus far, out of 49,273 required houses,

SIPDIS
approximately 3,000 have been completed and 20,188 have

been started. ?Started? is a loose term in Sri Lanka and
could mean, for example, that work has started on a 200
house project, even though only a few foundations are
actually underway. Task Force for Rebuilding the Nation
(TAFREN) Chairman Mano Tittawella told the Ambassador on
October 3 that he thought most permanent housing would be
finished by March 2006.


5. In an October 6 meeting with NGO partners, USAID/OFDA
sought impressions about the state of the housing
situation, both temporary and permanent. USAID has hosted
similar meetings in the past and the NGOs meet on their own
to share information twice a month - something they have
been doing since most of them arrived following the tsunami.


6. From the International NGO and GSL perspectives, most
of the people affected by the tsunami are now either living
in the temporary housing or with family and friends (Note:
surveys conducted by UN agencies and the GSL confirm this
impression). There appear to be very isolated instances of
families still in tents (not part of the USAID-assistance
program),but the GSL is actively seeking to place anyone
who remains outside the formal program. In some cases, it
is possible that families in tents are not tsunami displaced,
but simply the recipient of tsunami tents, after the initial
recipients moved into transitional shelters. Most of the USAID
Partner NGOs have moved into the "repair and maintenance"
phase of the temporary housing program. This maintenance
focuses on upkeep, as well as disaster preparedness and
mitigation.

Monsoon in Sri Lanka
--------------


7. All USAID Partners indicated they are developing and/or
reviewing disaster plans and vulnerabilities to flooding,
among other scenarios. They will stay in this phase
throughout the upcoming monsoon season in the east. Most
partners felt disaster preparedness was a major focus of
the GSL?s Transitional Accommodation Program (TAP) office
as well (this was confirmed by Task Force for Relief
(TAFOR) and TAP Chair Tilak Ranaviraja in a meeting with
the Charge on October 11).

Buffer Zone Exemptions Announced
--------------


8. While it appears that efforts are being made to
consider possible disaster scenarios for temporary housing
residents during the upcoming monsoon season, there are
additional efforts underway to jump start the permanent
housing program. Most significantly, donors were called to
a meeting with the Chair of the Task Force for Rebuilding
the Nation (TAFREN),the Secretary of Finance and the
Secretary for Urban Development on October 7 (Ambassador,

SIPDIS
USAID Director and Econchief attended for the US) in which
the GSL announced that while it intended to enforce the
100m/200m buffer zone policy, it would do so with
significant exemptions in all tsunami affected areas.
These exempted areas would, in some cases, allow people to
build as close as 40 meters to the shore. Anyone with land
in these areas would be allowed to build, once they have
obtained the appropriate permits.


9. The Urban Development Authority and the Coastal
Conservation Department (CCD) will publish exact exemption
information and NGOs and Multilateral Donors will
coordinate with the GSL to accommodate those people who
wish to move back to their previous homes, assuming they
held title to the land (Note: the Secretary of Urban
Development informed donors that if people could prove they
had been on the land for a certain amount of time, they
could be eligible for a pre-existing amnesty and possibly
entitled to land title. End Note). While this is good news
and could mean that as many as 10,000 additional permanent
units could be started almost immediately (according to
TAFREN officials),as always, the devil will be in the
details, and those have not yet been published.
Nonetheless, the GSL made a public announcement of the
relaxation of the buffer zone over the weekend and will
certainly face pressure to be expansive in the exemptions
it grants (Note: this outcome is largely the result of
excellent work by representative from FEMA, USGS and OFDA
who visited Sri Lanka in August, under USAID sponsorship,
and as follow-up to an Embassy sponsored video conference
with senior GSL officials in June. End Note).

NGO Concerns in Sri Lanka
--------------


10. With the relaxation of the buffer zone, it is possible
that the largest obstacle to permanent housing has been
resolved. Nonetheless, there remains an ongoing point of
contention between donors, the GSL and NGOs with regard to
housing: time. NGOs feel pressured to build, yet want to
ensure that they conduct proper consultations with
residents and communities. As several NGO reps have put
it, ?we don?t want to build houses people won?t live in.?
NGO reps claim the housing effort in Sri Lanka has been
extremely fast by international standards, and the fact
that significant progress has been made on the permanent
housing phase (not just the temporary housing phase, which
has been completed) is both positive and problematic.

Maldives
--------------


11. According to International Federation of Red Cross
(IFRC) reps in Maldives, no displaced IDPs are without
shelter. The majority are housed in temporary shelter
blocks constructed by the GORM and IFRC on Huhumale (the
large island next to Male, to which the GORM hopes to
entice new residents, to ease overcrowding on Male and to
begin the process of moving people off of small, remote
islands that are considered unsafe and not economically
viable). All temporary shelters are built to NGO-
established ?sphere? standards.


12. There are 7,776 IDPs in Maldives and 6,459 are
currently in temporary shelter. 1,274 are staying with
families or friends and 521 remain in their damaged homes.
80 IDPs have chosen to remain housed in tents on their
respective islands, rather than move into temporary shelter
elsewhere.


13. According to the IFRC, there are no funding gaps in
the housing sector, though the GORM Planning Department is
checking to see if there are possibly gaps repairs to
transitional housing. UNDP reports a funding shortfall of
USD 7.5 million in its shelter program.


14. Under the GORM Permanent Shelter program, 4,147 homes
will be repaired and 2,719 new houses will be built. The
GORM intends to have all housing projects completed by the
end of 2007.

Monsoon in Maldives
--------------


15. The monsoon in Maldives precedes Sri Lanka and is due
to end in October. Thus far there have been no adverse
reports of additional displacements due to the rains. The
GORM and IFRC continually monitor the temporary housing
sector and seek to ensure to that all temporary structures
remain up-to-date.

Maldivian Aid Absorption Capacity
--------------


16. Prior to the tsunami, Maldives absorbed approximately
USD 30 million in foreign assistance each year, according
to the Deputy Minister of Finance. That amount has leapt
to close to USD 300 million in the wake of the tsunami. In
addition to tsunami damage repair and replacement, Maldives
is also facing a severe downturn in its tourist arrivals
(though the pace is beginning to pick up again) and a
budget shortfall of approximately USD 100 million.


17. Maldives was organized and performed well during the
initial relief phase of the post-tsunami period. It was
quick to develop a framework for assistance in its Tsunami
Relief and Reconstruction Fund (TRRF),which immediately
won plaudits from the World Bank and ADB, who announced
that they would use that venue for much of their aid
disbursement.


18. In the transition from relief to reconstruction,
however, Maldives? small size and limited resources are
beginning to show. It has struggled to prioritize needs
and the World Bank and ADB have placed full time resident
representatives in country to assist in the reconstruction
financing arrangements. The GORM is working to implement
its framework for dealing with the huge inflow of funds it
is slated to receive.


19. The US offer of USD 8.7 million was greatly
appreciated by the GORM and the GORM desire to program that
money into specific, significant, high-return, high-need
projects has led to a delay in finalizing the agreement.
Further, US willingness to be flexible in how the money is
spent (many donors identify monies for particular sectors,
mainly housing) has given the GORM an opportunity to look
at several key areas (such as transportation infrastructure
and water and sanitation). Part of the problem in
finalizing the agreement has to do with limitations in
various GORM departments, while other challenges have been
related to external events, including a recent cabinet
reshuffle, which reorganized several of the departments
involved in the process and the beginning of Ramadan, which
includes significantly reduced work-hours. Econchief and
representatives from the GORM Department of External
Resources are working to craft a draft agreement that
identifies uses for the US contribution, a timeline for
disbursement and a framework of the selection of specific
projects, as needs assessments in the related areas are
completed. We will conclude this process soon.


20. Comment: Housing in both countries is going well,
though clearly there are challenges in each program.
USAID continues to monitor the situation on the ground
in Sri Lanka via its implementing partners, but there
are currently no GSL requests for additional assistance.
We will continue our efforts to conclude the bilateral
agreement with Maldives immediately. End Comment

ENTWISTLE