Sri Lanka: National Highways Sector Project

Sovereign Project | 38357-013

Summary

L2217 - The main objective of the Project is to improve transport efficiency, which will expand economic opportunities by (i) enabling RDA to manage the NH network; (ii) upgrading and increasing capacity of about 223 km of key national highways; and (iii) piloting performance based maintenance contract.

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Consulting Notices

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Procurement Notices

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Procurement Documents


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Project Name National Highways Sector Project
Project Number 38357-013
Country Sri Lanka
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
TA 4736-SRI: Capacity Building of the Environmental and Social Division of the Road Development Authority
Technical Assistance Special Fund US$ 400,000.00
Loan 2217-SRI: National Highways Sector Project
Ordinary capital resources US$ 150.00 million
Loan 8252-SRI: National Highways Sector Project
OPEC Fund for International Development US$ 8.00 million
Loan 2767-SRI: National Highways Sector Project - Additional Financing
Ordinary capital resources US$ 85.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Partnerships
Sector / Subsector Transport - Road transport (non-urban) - Transport policies and institutional development
Gender Equity and Mainstreaming Some gender elements
Description

L2217 - The main objective of the Project is to improve transport efficiency, which will expand economic opportunities by (i) enabling RDA to manage the NH network; (ii) upgrading and increasing capacity of about 223 km of key national highways; and (iii) piloting performance based maintenance contract.

L2767 - The additional financing expands the current project's output by rehabilitating and upgrading an additional 62 kilometers of national highways, comprising six link roads that provide access to the new Southern Highway in Western and Southern provinces. The Southern Highway is the country's first controlled-access expressway, and the Colombo-Galle section of 95 kilometers (km), cofinanced by the Asian Development Bank (ADB) and the Japan International Cooperation Agency. By enhancing connectivity and reducing access time for the communities served, the proposed improvement is critical to ensuring that the development impact of the Southern Highway is optimized and its benefits reaped in a timely way. Collectively, the communities served will benefit from improved, lower-cost, and faster transport services and thereby obtain improved access to economic opportunities and social services. It facilitates economic growth and contribute to reducing disparities in Sri Lanka, consistent with the government's goal of equitable economic growth.

Project Rationale and Linkage to Country/Regional Strategy

L2217 - ADB is continuing its assistance to mobilize resources to remove physical and nonphysical barriers in the road network, to support efforts to improve the policy and institutional environment, and to improve subsector efficiency and performance. Through its interventions in the road subsector in Sri Lanka, ADB is supporting the establishment of a policy and institutional framework to improve overall sector performance. This will be achieved through a medium -term sector roadmap approach with a series of interventions over the period 2002 to 2012, to support implementation of a reform program for the way in which road services are provided, and for improvement of transport services. The medium -term policy framework that was developed and agreed with the Government in 2002 will serve as a roadmap for future lending to Sri Lanka's road sector. The medium-term sector roadmap approach consists of three possible project loans. The National Highways Development Project is the second in the series of proposed interventions.

L 2767 - The additional financing scales up the L2217 loan by further expanding the highway upgrading component from 225 km to 287 km. It helps achieve the full extent of the improvements envisaged under the original financing by covering additional geographic areas in Western and Southern provinces, increasing the number of project beneficiaries, and optimizing access to the new Southern Highway. It supports the government's priority to implement improvements quickly to ensure that the development impact of the new Southern Highway is optimized and its benefits are reaped in a timely way. The project meets eligibility criteria for additional financing.

Impact Expansion of economic opportunities.
Project Outcome
Description of Outcome Improvement of National Highway transport efficiency
Progress Toward Outcome Travel time on Putalama-Nochchiyagama Road (A012), Udatenna to Mahiyangana Raod (A026), Nuwara Eliya to Badulla Road (A005), Habarana to Kantale Road (A006), Nugegoda-Homagama Road (A004), Road section from Katukurunda to Nagoda (B207) and Road section from Matara to Godagama (A024) have been reduced by more than 25% from the base year 2006.
Implementation Progress
Description of Project Outputs

1. Improved Road sector institutions and policy

2. Upgraded and maintained national highway network

Status of Implementation Progress (Outputs, Activities, and Issues)

L2217 - The overall progress of the project is satisfactory. The Project was completed on 2012.

RDA has awarded all contracts for $ 135 million from ADB and 8 million from OFID.

ICB-1:Putalama-Nochchiyagama Rd, originally planned to develop 70km, dropped to 50km due to shortage of funds. After identified loan savings from unallocated amount, a variation has given to the contractor to develop 33km including the previously dropped sections. RDA and ADB agreed to extend the road section by 3km. Completed.

ICB-2:Udatenna to Mahiyangana: Completed.

ICB-3: Nuwara Eliya to Badulla Road. Completed.

ICB-4: Habarana to Kantale Road completed in August 2010 and handedover to RDA.

ICB-5: Nugegoda-Homagama Road. Completed.

PBM: RDA has awarded the contract for maintenance of 108km of Awissawella-Hatton Rd and Awissawella-Ratnapura Rd. Main objective is to transfer casual labors into maintenance groups for whom can award the PBM contracts. The Contract price of the project is 294.0 Mn Rs and the Contract is awarded on 28.01.2012. The date of commencement is 02.03.2012 and completed on 01.09.2012.

Construction of Highway Secretariat Building: The contract was awarded on October 2010. The construction work completed in June 2014.

L2767 - Improved road sector institutions and policy and upgraded and maintained national highway network are on going

Progress of L2767

L2767 - Improvement of national highway transport efficiency - Rehabilitation is ongoing and overall progress of the project is satisfactory.

All the 6 contracts have been awarded and two are completed.

CP4 - Rehabilitation / Improvements to B207 road section from Katukurunda to Nagoda - 100%

CP1 - Rehabilitation/improvement to A 024 road section from Matara to Godagama - 100%

CP2 - Rehabilitation/improvement of B-153 road section from Hikkaduwa to Southern Express way - 66.47% as at 28 February 2015

CP3 - Rehabilitation/improvement of B-157 road section from Aluthgama to Southern Expressway - 75.40% as at 28 February 2015

CP5 - Rehabilitation/improvements to sections of Colombo-Rathnapura-Wellawaya-Batticalo road (1+000Km to 15+360Km) - 59.58% as at 28 February 2015

CP7 - Rehabilitation / improvements of B084 (north) road section from Pamankada to Kesbawa - 61.27% as at 28 February 2015

Geographical Location 223 kilometers (km) of NHs, consisting of A012 Puttalam-Anuradhapura, A006 Habarana Kantale, A026 Udatenna-Mahiyangana and A005 Nuwara Eliya-Badulla.
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

L2217 - Implementation of the environmental monitoring plan is satisfactory, no issues were idenfied

L2767 - As project roads are in settled areas for most of their length, with minimal forested or natural habitats, the project has been classified category B. Accordingly, a consolidated initial environmental examination report with road-specific environmental management plans (EMPs) and environmental monitoring plans (EMoPs) have been prepared in accordance with ADB's Safeguard Policy Statement (2009). All impacts can be managed by adopting suitable mitigation measures described in the initial environmental examination and road-specific EMPs and monitored through the EMoPs. EMPs and EMoPs for the construction stages are incorporated in bidding documents and included in contract documents. Anticipated impacts under the project are those typical of road construction such as the generation of dust, noise, and construction waste; the temporary disruption of traffic and access to living areas in and around the work areas; and soil erosion from exposed surfaces. The project envisages using borrow and quarry sites already in operation; if any new sites are to be opened, the implementing agency will ensure that measures described in the EMPs are adopted during site selection and closure, and that approvals are obtained from the authorities. Local communities and other stakeholders were consulted during project preparation, and consultations will continue throughout implementation as required. RDA is responsible for ensuring that EMPs and EMoPs are implemented. The Environmental and Social Division (ESD) under RDA monitors contractors' environmental compliance on behalf of RDA. ESD, which was established through ADB technical assistance, has been provided with the necessary training and is well experienced with ADB's safeguard requirements. However, as ESD is also responsible for managing safeguard activities for other ongoing projects under RDA, additional support for regular site monitoring and reporting is provided by the supervision consultant's team, which includes an environmental specialist. Any updates to EMPs, if required, are made by the environmental specialist consultant and reviewed and approved by ESD. Annual environmental monitoring reports are prepared and submitted to ADB for disclosure on the ADB website in accordance with ADB's Safeguard Policy Statement (2009) and Public Communications Policy (2005). An initial coordination-cum-training workshop for supervision consultants were organized by ESD before the start of construction to agree on modalities for implementing the EMPs and EMoPs and carrying out necessary monitoring and reporting.

Involuntary Resettlement

L2217 - A group of affected people in Kantale area submitted a complaint to ADB on payment of compensation for the acquired lands. SLRM discussed with the government officers and the affected people and resloved the issue

L2767 - The project is classified category A in accordance with ADB's Safeguard Policy Statement (2009). Six resettlement plans have been prepared in accordance with the Safeguard Policy Statement, resettlement framework of the original project, the Land Acquisition Act of 1950 and subsequent amendments, and the National Involuntary Resettlement Policy of 2001. The estimated total land area to be acquired is 32.61 hectares. According to the project census, 2,831 households will be physically displaced by losing all or part of their structures and/or residential land, and the livelihoods of 793 households will be partly affected. The total resettlement budget for the project is $20.6 million. Meaningful consultation with project-displaced people regarding the process of land acquisition and compensation, and information disclosure to the general public through the ADB website, was undertaken during the preparation of resettlement plans. If any modification or additional land requirement or involuntary resettlement impacts are identified during implementation, a related resettlement plan will be prepared or modified in accordance with the applicable laws referred to in the resettlement plan, and ADBs prior approval will be obtained before any further implementation.

Indigenous Peoples

L2217 - No issue

L2767 - As the poverty and social assessment found no indigenous communities present in the project influence area, no indigenous peoplesdevelopment plan has been prepared. However, special provisions have been made under the resettlement framework and resettlement plans to address impacts on indigenous people. If any significant impacts on indigenous people are identified, an indigenous peoples plan will be prepared and submitted to ADB for approval.

Stakeholder Communication, Participation, and Consultation
During Project Design L2767 - Focus group discussions were held with both men and women, and most respondents stated that the proposed road rehabilitation and upgrading will help create new economic and employment opportunities by improving links to markets, production centers, and other areas with economic opportunities.
During Project Implementation

L2217 - During the Review missions consultated all the stakeholders including Resettlement Officers, APs, RDA and relevant government offices, Traffic Police and Contractors.

L2767 - Once a year, the Road Development Authority (RDA) is holding an one-day workshop to share information on project progress, issues, lessons learned, and performance improvement measures if appropriate. Representation will include members of the national steering committee. Various information regarding the Project, including scope, general progress status, beneficiaries, invitation for bid, and consultant recruitment notices, will be provided to the general public. The information will be made available and updated through the official websites of RDA.

Business Opportunities
Consulting Services

L2217 - All consultants were selected and recruited through a firm using the quality- and cost-based selection method, in accordance with ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for engagement of domestic consultants.

URS Infrastructure & Environment UK Limited was selected as Construction Supervision Consultant.

The Project requirde consulting services to assist RDA in (i) preparing a human resources development strategy; and (ii) construction supervision.

L2767 - Construction supervision consultant for road upgrading was selected throug single-source selection of the consultant of the original project: URS Infrastructure & Environment UK Limited

Procurement

L2217 - All civil works contracts (about 5 contract packages) was procured in accordance with ADB's Guidelines for Procurement and the Government's tender procedures acceptable to ADB. Civil works procurement was carried out under international competitive bidding (ICB) procedures for contracts valued $10 million and above, and under local competitive bidding (LCB) procedures for contracts valued of less than $10 million. Prequalification was exercised for the ICB contracts, while for LCB contracts, bidders were post-qualified by applying a single stage, two-envelope bidding procedure. Supply contracts over $500,000 will be procured under ICB; $100,000-500,000, international shopping; and less than $100,000, direct purchase arrangement.

L2767 - International competitive bidding: six contracts for $73.87million

Responsible ADB Officer Aruna Uddeeptha Nanayakkara
Responsible ADB Department South Asia Department
Responsible ADB Division Sri Lanka Resident Mission
Executing Agencies
Road Development AuthorityW.K. Kodituwakkunhsppd@rda.gov.lkSethsiripaya, Sri Jayawardenapura
Kotte, Battaramulla
Sri Lanka
Timetable
Concept Clearance 08 Mar 2005
Fact Finding 21 Mar 2011 to 08 Apr 2011
MRM 09 Jun 2011
Approval 20 Dec 2005
Last Review Mission -
PDS Creation Date 01 Mar 2006
Last PDS Update 20 Mar 2015

Loan 2217-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Dec 2005 14 Dec 2006 20 Feb 2007 31 Dec 2010 31 Dec 2012 18 Jun 2013
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 150.10 Cumulative Contract Awards
ADB 150.00 15 Dec 2005 150.00 0.00 100%
Counterpart 0.10 Cumulative Disbursements
Cofinancing 0.00 15 Dec 2005 150.00 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory - - Satisfactory

Loan 2767-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
05 Aug 2011 14 Dec 2011 23 Feb 2012 30 Jun 2016 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 105.60 Cumulative Contract Awards
ADB 85.00 05 Aug 2011 80.53 0.00 95%
Counterpart 20.60 Cumulative Disbursements
Cofinancing 0.00 05 Aug 2011 61.73 0.00 73%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory - - Satisfactory

Loan 8252-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Dec 2005 04 Oct 2010 10 Feb 2011 30 Jun 2015 - 21 May 2014
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 8.00 Cumulative Contract Awards
ADB 0.00 20 Dec 2005 0.00 8.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 8.00 20 Dec 2005 0.00 8.00 100%

TA 4736-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Dec 2005 24 Apr 2006 24 Apr 2006 30 Jun 2007 31 Aug 2009 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 0.00 0.00 0.00 0.00 0.00 400,000.00 15 Dec 2005 368,676.10
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory - - Satisfactory
Title Document Type Document Date
National Highways Sector Project - Additional Financing: Procurement Plan Procurement Plans May 2015
Loan Agreement (Ordinary Operations) for National Highways Sector Project - Additional Financing between Democratic Socialist Republic of Sri Lanka and Asian Development Bank dated 14 December 2011 Loan Agreement (Ordinary Resources) Dec 2011
Project Agreement for National Highways Sector Project - Additional Financing between Asian Development Bank and Road Development Authority of Sri Lanka dated 14 December 2011 Project/Program Agreement Dec 2011
National Highways Sector Project - Additional Financing Reports and Recommendations of the President Jul 2011
National Highways Sector Project - Additional Financing Summary Poverty Reduction and Social Strategies Jul 2011
National Highways Sector Project (Additional Financing) Project/Program Administration Manual Jun 2011
National Highways Sector Project - Administration of Cofinancing TA Change in Scope, Amount, and Implementation Arrangements Dec 2010
Amendment to the Loan Agreement for the National Highways Sector Project between Democratic Socialist Republic of Sri Lanka and ADB dated 7 July 2008 Loan Agreement (Ordinary Resources) Jul 2008
Amendments to Rebate and Surcharge Provisions of Loan Agreement for the National Highways Sector Project between Democratic Socialist Republic of Sri Lanka and ADB Loan Agreement (Ordinary Resources) Aug 2007
National Highways Sector Project Project/Program Administration Manual May 2007
Loan Agreement for National Highways Sector Project between Democratic Socialist Republic of Sri Lanka and ADB dated 14 December 2006 Loan Agreement (Ordinary Resources) Dec 2006
Project Agreement for National Highways Sector Project between Asian Development Bank and Road Development Authority of Sri Lanka dated 14 December 2006 Project/Program Agreement Dec 2006
National Highways Sector Project Reports and Recommendations of the President Nov 2005
National Highways Sector Project Design and Monitoring Frameworks Aug 2005

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
National Highways Sector Project: Social Safeguard Monitoring Report (June-December 2014) Social Monitoring Reports Aug 2015
National Highways Sector Project - Additional Financing: Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Jan 2015
National Highways Sector Project - Additional Financing: Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jul 2014
National Highways Sector Project - Additional Financing: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Apr 2014
National Highways Sector Project - Additional Financing: Environmental Monitoring Report (January - June 2013) Environmental Monitoring Reports Apr 2014
National Highways Sector Project: Resettlement Monitoring Framework Social Monitoring Reports Mar 2013
National Highways Sector Project - Additional Financing: Environmental Monitoring Report (August-December 2012) Environmental Monitoring Reports Dec 2012
National Highways Sector Project - Additional Financing: Environmental Monitoring Report (January-July 2012) Environmental Monitoring Reports Aug 2012
National Highways Sector Project January to June 2011 Environmental Monitoring Reports Oct 2011
National Highways Sector Project: Resettlement Plan for Nugegoda to Homagama Section of Colombo-Ratnapura-Wellawaya-Batticaloa (A004) Road Resettlement Plans Jul 2011
Additional Financing for National Highways Sector Project: Matara-Godagama Section of Matara-Akuressa Highway (A024) Resettlement Plans May 2011
Additional Financing for National Highway Sector Project: Colombo-Horana Highway (B084) (as of Board approval) Resettlement Planning Documents May 2011
Additional Financing for National Highway Sector Project Initial Environmental Examination May 2011
Additional Financing for National Highways Sector Project: Hikkaduwa-Baddegama Section of Hikkaduwa-Baddegama-Nilhena Highway (B153) Resettlement Plans May 2011
Additional Financing for National Highway Sector Project: Kirulapana-Godagama Section of Colombo-Rathnapura-Wellawaya-Batticaloa Road (A004) (as of Board approval) Resettlement Planning Documents May 2011
Additional Financing for National Highways Sector Project: Katukurunda-Neboda (B207) Resettlement Plans May 2011
Additional Financing for National Highways Sector Project: Horana-Anguruwathota-Aluthgama Highway (B157) Resettlement Plans May 2011
Additional Financing for National Highway Sector Project: Matara-Godagama Section of Matara-Akuressa Road (A024) (as of Board approval) Resettlement Planning Documents May 2011
Additional Financing for National Highways Sector Project: Colombo-Horana Highway (B084) Resettlement Plans May 2011
Additional Financing for National Highway Sector Project (as of Board approval) Environmental Assessment and Measures May 2011
Additional Financing for National Highway Sector Project: Hikkaduwa-Baddegama Section of Hikkaduwa-Baddegama-Nilhena Road (B153) (as of Board approval) Resettlement Planning Documents May 2011
Additional Financing for National Highways Sector Project: Kirulapana-Godagama Section of Colombo-Rathnapura-Wellawaya-Batticaloa Highway (A004) Resettlement Plans May 2011
Additional Financing for National Highway Sector Project: Katurukunda-Neboda Highway (B207) (as of Board approval) Resettlement Planning Documents May 2011
Additional Financing for National Highway Sector Project: Horana - Anguruwathota - Aluthgama Highway (B157) (as of Board approval) Resettlement Planning Documents May 2011
National Highways Sector Project: Environmental Monitoring Report (July-December 2010) Environmental Monitoring Reports Mar 2011
National Highways Sector Project: Environmental Monitoring Report (January-June 2010) Environmental Monitoring Reports Sep 2010
Summary Initial Environmental Examination for Peradeniya -- Badulla - Chenkaladi (A005) National Highway Summary Initial Environmental Examination Nov 2007
National Highway Sector Project Summary Initial Environmental Examination Nov 2007
National Highways Sector Project: Summary Initial Environmental Examination for Kandy-Mahiyangana-Padiyatalawa (A026) National Highway Summary Initial Environmental Examination Sep 2007
National Highways Sector Project: Rehabilitation of Habarana Trincomalee Road (A006) Initial Environmental Examination May 2007
National Highways Sector Project Summary Environmental Impact Assessments Aug 2005

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Environment Capacity Development Projects in Selected South Asian Countries Technical Assistance Performance Evaluation Reports Dec 2010

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