This component consists of the following two subcomponents: a) Capacity building of national, provincial and local government agencies; and b) Project management, implementation support and oversight.

This subcomponent would support: a) the enhancement of equipment and facilities required to carry out the project activities; b) the improvement and establishment of regional laboratories for testing construction materials, quality assurance of civil works construction, and testing agricultural soil; c) support for the establishment of the groundwater monitoring network in Jaffna district; d) short-term training and study tours to selected staff to improve implementation of the project and other long-term community-based reconstruction programs; e) the provision of essential office equipment and facilities; and f) technical assistance for special studies and research.

This subcomponent would support hiring: a) consultants and staff for the project management unit and district project offices; and b) hiring partner organizations, NGOs and consultancy firms and consultants for external technical, social and financial auditing and project-impact monitoring.