ADB’s Pio leaves but not under pressure

Asian Development Bank(ADB)'s Sri Lanka Country Director, Alessandro Pio, is leaving his post in Sri Lanka and returning to ADB headquarters in Manila, Philippines to assume duties as the Director of the Strategy and Policy Management Division.

Pio said his move was not confirmed until very recently and stressed that his departure was not at his request or that of the Sri Lankan government but at the behest of ADB headquarters. "It was a surprise to me," he told the press in Colombo. His successor as Country Director for Sri Lanka is Richard Vokes, currently the Director for Country and Regional Cooperation for South Asia, who will assume duties on November 1.

Pio's tenure as head of the Sri Lanka Resident Mission began in August 2004 and he had earlier served as the ADB country economist for Sri Lanka from 1997 to 1998. During his time in Sri Lanka, the ADB was significantly involved in improving the performance of ongoing projects through closer monitoring and increased delegation to the resident mission. The ADB currently has an active portfolio of 49 loans for a total of $1.7 billion in Sri Lanka.

Pio asserts that it is essential for the Sri Lankan government to address and improve the civil unrest if it is to record and sustain any growth. Foreign investment in the country is contingent upon cessation of hostilities and implementation of peace. "Sri Lanka needs not only peace but also reconciliation," Pio said. "It cannot only address the symptoms of the conflict but it also has to address the causes." He feels the ADB's contribution to the peace process has been in bringing public opinion to the government, creating the pre-conditions for both parties to come together and create a situation which is tenable for peace to exist.

He also mentioned that the power sector is a crucial issue which the ADB feels needs a lot of attention from the government. He reiterated that the ADB has cancelled the second tranche of the Power Sector Reform Program, a $30 million project. A high level mission from Manila reviewed the project's viability in August and it was cancelled. "The reason for cancellation was to remove any pressure from the government to accept something it is not comfortable with," said Pio adding that the government must focus on issues pertaining to power generation, transmission and distribution infrastructure, reworking of the financial exposure of the Ceylon Electricity Board and improving the viability of the sector. Pio also hopes that the benefits of growth seen in Sri Lanka will be spread across the country, not predominantly concentrated in Colombo and the Western Province.

"This will provide more balanced and sustainable growth for Sri Lanka." Pio noted that the ADB's work in tsunami reconstruction in the areas of infrastructure, housing, social services and livelihood has been significant with $150 million in grants, primarily from the European Union, Sweden and the Netherlands. "Work has been done but a lot of work remains to be done," he said referring to the construction of the Southern Expressway, a $90 million project, one the ADB's most notable projects, linking Colombo to Matara. An environmental assessment has been conducted in the area and the ADB is in the process of considering expanding the highway from two lanes to four lanes.

Another noteworthy project is the expansion of the Colombo South Port. The breakwater has to be erected in order to protect the port and a concession agreement has to be prepared. "The timing of the construction of breakwater and calling for bids is important," Pio said, adding that shipping lines draw up their plans years in advance and a part of that process is choosing the hubs. Construction on the port is scheduled to begin in 2007 and is expected to take between 2 – 3 years for completion.

Pio added that he has been impressed and encouraged by the behaviour of the government staff despite the difficult conditions under which they work. He noted that delays in projects have begun to pile up over the last few months due to the escalating violence in the Northeast and some projects such as the Jaffna Water Project have been completely halted in its tracks with allocations not being made despite the technical work being completed. However, the ADB is looking to improve the implementation of its projects by reviewing its current procurement guidelines.

(NG)