Sri Lanka: Passenger Transport Services Improvement

Sovereign Project | 31280-022

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Project Name Passenger Transport Services Improvement
Project Number 31280-022
Country Sri Lanka
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 4075-SRI: Passenger Transport Services Improvement
Japan Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector Transport - Road transport (non-urban)
Gender Equity and Mainstreaming No gender elements
Description

Focusing on bus transport services and with the purpose of developing a framework for a national and provincial route franchising system, which includes the complimentary bus terminal services, the consulting firm will undertake the tasks identified in the detailed TOR. Phase I of the TA will consist of an analysis of the current market structure and policy, regulatory and institutional frameworks related to the sector, and will include assessments of the operational and financial performance of the existing operators. On the basis of projected supply/demand analysis, the study will determine the optimal market, regulatory and institutional structures that will address the identified constraints and determine the reforms necessary to establish these structures. A detailed implementation plan and a regulatory framework will be drafted. Phase II of the TA will assist four provinces selected by Ministry of Transport Highways and Civil Aviation (MTHCA) in the implementation of the recommended regulatory and institutional framework structures through capacity building and training and will provide specific assistance regarding the drafting of franchise agreements.

Phase I Analysis

(i) Identify, review and analyze all existing and draft laws, regulations, decrees, policies, plans and institutional frameworks and arrangements related to the sector and the services provided by (i) private, (ii) public and (iii) public-private operators.

(ii) Review and analyze the existing market structure for all market segments, including market entry conditions such as issuance of licenses and permits and route assignments, and other factors affecting competition, including the components of the fare structure and its determination, public service obligation subsidies and driver and vehicle safety requirements.

(iii) Assess and evaluate the operational and financial performance of privately operated bus services, including urban, inter-and intraprovincial services.

(iv) Assess the operational and financial performance of publicly operated bus services, including urban, inter-and intraprovincial services.

(v) Where applicable, assess the operational and financial performance of bus services operated by public-private partnerships, including urban, inter-and intraprovincial services.

(vi) Conduct consultations with stakeholders, including a survey of public opinion on all existing services and establish ways to ensure public participation in the design of the institutional and regulatory frameworks.

(vii) For the inter-provincial services, conduct demand surveys for a minimum of ** percent [to be provided by PUC] sample routes and assess the supply level of those routes. Prepare outline demand/supply projections for the sample routes for the next 5-10 years.

(viii) For the intra-provincial services, conduct demand surveys for a minimum of 25 percent (or 15 routes which ever is higher) of four provinces selected by MTHCA and assess the supply level of these routes. Prepare outline demand/supply projections for the sample routes for the next 5-10 years.

(ix) Estimate the present and projected deficit financing requirements, including future investment needs. Evaluate the constraints of the existing structure with reference to its ability to attract and raise private investments and improve the quality, efficiency and equity of the services. Assess the capacity of local banks and other financial institutions to evaluate and fulfill the financing requirements for the private sector. Review how similar constraints have been solved according to international best practice in comparable country contexts.

(x) Determine the optimal market, regulatory and institutional structures that will address these constraints and meet the Governments objectives of improving the quality of the services, reducing the public financing requirements and attract private capital.

(xi) Determine the reforms necessary to establish these structures.

(xii) Estimate the economic benefits of implementing these reforms and the impact on the poor.

(xiii) Prepare an initial social analysis of the proposed reforms and investments in accordance with ADB's Handbook on Poverty and Social Analysis.

(xiv) Develop a detailed implementation plan for the recommended regulatory and institutional framework structures, including mechanisms for ensuring public consultation and participation, transparency and good governance.

(xv) Draft a regulatory framework defining the regulator's role, powers, appointment procedures and relationship with other central and/or provincial authorities, including the Public Utility Commission.

(xvi) Develop an implementation plan for the remaining elements of the recommended reforms, including a detailed analysis of the necessary public and private investments.

Phase II Implementation

3. Assist the four provinces selected by MTHCA in the implementation of the recommended regulatory and institutional framework structures through capacity building and training regarding: (i) analysis of demand composition and determination of adequate supply in the form of route franchises, including use and development of locally developed computer tools; (ii) drafting of franchise agreements; (iii) development of bidding procedures and evaluation mechanisms; and training in negotiation.

4. Elaborate a prioritized inventory of potential future public sector projects, including the capacity and training components identified in para. 3.

Project Rationale and Linkage to Country/Regional Strategy
Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The TA will be implemented over 5 months, with 3 months allocated under Phase I and two months allocated under Phase II. An international consulting firm in association with a domestic consulting firm will undertake the TA. It is estimated that a total of 14 and 16 person-months, of international and domestic consultant inputs, respectively, will be required with expertise in bus transport policy, institutions and regulations, project economics/finance and social development. Previous experience in development and implementation of route franchising schemes in similar country contexts is a requirement.
Responsible ADB Officer Lise Weidner
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Ministry of Highway-COLOMBO#1 Dr. Wijawardena Mawatha
Colombo 10
Sri Lanka
Timetable
Concept Clearance 10 Mar 2001
Fact Finding 10 May 2001 to 25 May 2001
MRM -
Approval 19 Dec 2002
Last Review Mission -
Last PDS Update 30 Apr 2007

TA 4075-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Dec 2002 13 Mar 2003 13 Mar 2003 31 Dec 2003 31 Mar 2005 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00 19 Dec 2002 275,776.39
Title Document Type Document Date
Passenger Transport Services Improvement TA Completion Reports Jul 2007
Road Sector Development Project Reports and Recommendations of the President Nov 2002

Safeguard Documents

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Evaluation Documents

See also: Independent Evaluation

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