MAHAWELI RESTRUCTURI

The project was restructured in November, 2002 to include a Part Z component. Under this, IDA set aside US$ 5 million of project funds to support the US$ 36 million North East Emergency Reconstruction Program (NEERP). NEERP is intended to (i) provide income and employment generation opportunities for returning IDPs; ii) build institutional capacity in the North East to implement long-term reconstruction activities; and (iii) restore the public health program and repair peri-urban water supply schemes in the North East.Except for the Part Z component, the remainder of the Mahaweli Restructuring and Rehabilitation Project (MRRP) closed on December 31, 2003. This PSR will only review the Part Z component.The US$ 5 million under the MRRP is used to finance the livelihood support cash grants (also known as the Unified Assistance Scheme or UAS) under NEERP. Under this program, the Government offers a Rs 25,000 cash grant to returning IDP families to acquire basic tools and inputs, such as seed and fertilizer, to restart a productive livelihood. Transfer schemes to households is intended to provide the needed start up capital for sustainable income generation.