ROTARY CLUB OF COLOMBO NORTH

PROJECT: RESTORATION OF LIVELIHOODS AFTER TSUNAMI – PROVIDING FISHING BOATS

1. NEED FOR THE PROJECT:

This report does not describe the tsunami as it is assumed that the readership is fully aware of the Tsunami and it’s devastation.

In case of the Livelihoods the worst affected are Fishermen with 22,940 boats and crafts destroyed by the Tsunami.

Most of those affected rank the Restoration of Livelihood as extremely important due to the following reasons:

·        Those affected are currently promised a subsistence of Rs.5000 per family. This subsistence will not be required if Livelihoods are restored.

·        The subsistence is sufficient only for the bare necessities of life. Quality of life can be improved vastly if Livelihoods are restored. Most Fishermen have had a good income in the past.

·        Restoration of Livelihood will boost the economy in the fishing villages and the income of those in related occupations, support services etc. in the village.

·        Lack of Livelihood will lead to Idle time, Depression and Crime. Restoration of Livelihood will also restore the dignity of those affected.

2. LOCATIONS FOR THE PROJECT

The number of locations will depend on the funds available.

There is a specific request from the parish priest of St.Sebestian's church, Diyalagoda (between Payagala & Maggona) for boats for fishermen in Diyalagoda and Payagala. Some funds have been collected by well-wishers of the church and they would like to channel through RCCN. We could consider this as SITE 1 of the project.

We could provide boats for two other locations - in the South and the East, and this could be SITES 2 & 3.

3. GENERAL OUTLINE OF THE INDUSRY & PROJECT

The requirements of boats will vary widely and will be specific to the SITE. A detailed requirement of SITE 1 is given in section 4. The general outline of the project is given below.

• Fishing Boats can range from Manually Operated Sea Going Canoes to Multi Day Boats.
• Cost of Manually Operated Sea Going Canoes with Nets would be around Rs.70,000 to Rs. 85,000.
• Cost of Day Fishing 19’ Fibre Glass Boat, Engine & Nets would be around Rs.325,000. This is the most common type of Boat used in Sri Lanka.
• Cost of a Multi Day Boat, Engine & Nets would be around Rs.2500,000 to Rs.3500,000.
• Details of Prices are given in Annex 1.
• Government has announced a low interest SME loan scheme to those affected by Tsunami. The extracts from Central Bank circular are given in Annex 2.
• Assistance given by RCCN can be in the form of a Grant for the boat and we could expect the recipients to finance the Engines & Nets through SME Loan. However, Boat may have to be given as security for the SME Loan.
• Ownership of Boat can be with RCCN if required, to prevent sale & misuse. All boats and Engines are registered with the Ministry of Fisheries.
• A boat is usually operated by two persons and therefore can be given to two Fishermen from two households.
• At a site we will require a reliable, responsible person to identify needy recipients. However, we need to recognise that the recipient may be a person who has not owned a boat but who is a fisherman who has worked on another boat. If boats are given on the basis of previous boats owned, most boats will be given to intermediary wholesalers (Mudalali's). In the Alternative boats can be given to the Fisheries Co-operative Society. Most beaches have such a Co-operative Society.
• Boats given by RCCN can be marked as “Gifted by the Rotary Club of Colombo North”. Boats given by RCCN using funds from other clubs can be marked as “Gifted by XX through the Rotary Club of Colombo North”.

4. FUNDING

• RCCN has received X amount for a project on the restoration of Livelihoods.
• Rs.120,000 collected by well-wishers of Site 1 who would like to channel through RCCN. Further collections expected.
• Appeal for further funds for the project from those interested in Restoration of  Livelihoods.

5. REQUIREMENTS OF SITE 1 - DIYALAGODA

• Requirements of Manually Operated Sea Going Canoes with Nets is 6 Families (3 Boats) – Cost Rs.150,000. Balance on SME Loan.
• Requirements of Day Fishing 19’ Fibre Glass Boat, Engine & Nets is initially 20 Families (10 Boats), with further 20 families on a second list. 4 Boats expected from other donors. If RCCN funds 6 Boats Cost Rs. 720,000. Balance on SME Loan.
• At the site the parish priest and Parish Council will identify the needy recipients. They are doing this for 4 other boats expected.
• Rs.120,000 collected by well-wishers of the church who would like to channel through RCCN. Further collections expected.

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Annex 1

PRICES OF BOATS

BLUE STAR MARINE LTD , HENDALA

 19’ FIBRE GLASS BOAT– 113,000 + VAT

18’ FIBRE GLASS BOAT– 111,000 + VAT

18’ SEA GOING CANOE – 43,000 + VAT

21’ SEA GOING CANOE – 55,000 + VAT

34’ MULTI DAY BOAT – 1700,000 + VAT

34’ MULTI DAY BOAT – 1700,000 + VAT

NOAH MARINE (PVT) LTD, PAYAGALA

19’ FIBRE GLASS BOAT– 98,000 (INCLUSIVE VAT)

30’ – 40’ MULTI DAY BOAT – 1600,000 + VAT

CEYNOR

19’ FIBRE GLASS BOAT– 106,000 (INCLUSIVE VAT)

PRICES OF ENGINES

ASSOCIATED MOTORWAYS

15 HP FOR NORTH & EAST – 145,000 (INCLUSIVE VAT)

25 HP FOR WEST & SOUTH  – 194,500 (INCLUSIVE VAT)

PRICES OF NETS

VARIES FROM 25,000 TO 50,000 TO OVER 100,000

EXTRACTS OF CENTRAL BANK LOAN SCHEME FOR TSUNAMI AFFECTED SME

Credit Scheme

5.1 Total Fund Allocated       :      Rs.5.0 Billion

5.2 Loan                :      85 per cent of the estimated restarting cost of the

affected project subject to a maximum limit of

Rs.100,000/- for Micro Projects and Rs.5.0 Million

for other SMEs.

      5.3            Reference                     :            The CBSL will refinance loans up to 100 per cent of

the amount disbursed by PFIs.

Fishery Sub-Loans

      12.1Fisheries Sub-projects, which are consistent with the objective of the scheme will

             be eligible for financing under the following criteria :

i.                     Payments should be disbursed direct to Suppliers of Boats, Engines and Fishing Gears on an installment basis, if appropriate;

ii.                   Sub-borrowers should be permitted to borrow for improvement of existing assets;

iii.                  The Terms of re-payment of Sub Loans should be determined by the PFI on the basis of economic life span and the capacity of the borrower subject to the maximum re-payment period of 8 years.

iv.                 The boats should be registered with the local Fisheries Authorities;

v.                   Re-payment should be linked to marketing wherever possible;