Sri Lanka: Integrated Road Operation and Development Investment Program

Sovereign Project | 47273-001

Summary

In the government's five-year public investment plan 2012- 2016, the road sector is expected to receive investments of about $6 billion. As part of the plan, the government intends to select about 1,000 rural communities according to the population, development potentials, and the distance to trunk roads to extend the development benefits to rural areas. ADB is requested to assist the government in addressing the connectivity issues for these communities. The investment program is in line with the government's sector objective: establishing a modern transport system that will enable acceleration of economic growth. As agreed with the government, ADB will contribute to the sector outcome of improved nationwide connectivity. A multitranche financing facility (MFF) is proposed as the financing modality for the investment program. Table 1 explains why the MFF is more suitable than other modalities.

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Project Name Integrated Road Operation and Development Investment Program
Project Number 47273-001
Country Sri Lanka
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8473-SRI: Integrated Road Operation and Development Investment Program
Technical Assistance Special Fund US$ 1.00 million
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 Effective gender mainstreaming
Description

In the government's five-year public investment plan 2012- 2016, the road sector is expected to receive investments of about $6 billion. As part of the plan, the government intends to select about 1,000 rural communities according to the population, development potentials, and the distance to trunk roads to extend the development benefits to rural areas. ADB is requested to assist the government in addressing the connectivity issues for these communities. The investment program is in line with the government's sector objective: establishing a modern transport system that will enable acceleration of economic growth. As agreed with the government, ADB will contribute to the sector outcome of improved nationwide connectivity. A multitranche financing facility (MFF) is proposed as the financing modality for the investment program. Table 1 explains why the MFF is more suitable than other modalities.

The impact of the investment program will be efficient road transport between rural communities and socioeconomic centers. The outcome will be improved road connectivity between 1,000 rural communities and socioeconomic centers. The investment program will deliver two outputs: (i) improved road conditions between rural communities and socioeconomic centers, and (ii) enhanced capacity of RDA in inclusive road operation and development.

The first tranche will deliver two outputs: (i) about 600 km of rural access roads, including provincial and local roads, and about 400 km of national roads connecting 200 rural communities will be upgraded and maintained to all-weather standard, and (ii) the capacity of MOPH and RDA on road operation and development will be improved.

Project Rationale and Linkage to Country/Regional Strategy

The proposed investment program will improve the connectivity of road network in the rural areas of Sri Lanka so that the rural population can be conveniently involved in the nationwide economic and social development. An inclusive and sustainable road network is one of the key prerequisites for long-term development in rural area. In order to deliver such a road network, the investment program will (i) upgrade and maintain about 3,000 km of rural access roads to all-weather standard, (ii) operate 2,000 km of national roads in good conditions, and (iii) improve the capacity of the Ministry of Ports and Highways (MOPH) and Road Development Authority (RDA) to operate and develop the road network. The proposed investment program will play a catalytic role for the sustainable development of rural areas.

Since the end of civil conflict in May 2009, a period of strong economic growth has been shared across Sri Lanka. The growth of the economy was over 8% in 2010 and 2011, then slowed to 6.4% in 2012 due to weak external demand, drought, and floods, but is expected to edge up in 2013 and 2014. Reflecting robust growth, the national poverty headcount ratio fell to just below 9% in 2010 from over 15% in 2006/07. Nevertheless, less-developed areas did not exhibit consistently higher elasticity of poverty reduction (proportional change in poverty per unit growth in GDP per capita). The poor transport infrastructure has hindered the spread of economic activities and the access to basic health and education resource in rural areas.

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

Stakeholder participation and Consultation through workshops, community mobilization, and consultation conducted for discussion on the potential needs of the community, social-related issues such as gender, HIV/AIDs, human trafficking, child labor, environment and social safeguard issues.

Active CSOs are also present in the project area. CSOs will be identified and engaged as appropriate for livelihood restoration activities outlined in the resettlement planning documents.

During Project Implementation
Business Opportunities
Consulting Services In total the TA will require 54 person-months of consulting services (18 international and 36 national). ADB will engage consultants in accordance with its Guidelines on the Use of Consultants (2013, as amended from time to time). Disbursement under the TA will be carried out in accordance with ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time). Procurement of equipment will follow ADB's Procurement Guidelines (2013, as amended from time to time). The equipment will be handed over to the government upon TA completion.
Responsible ADB Officer Lee Ming Tai
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Ministry of Hways, Higher Educ & Investment Promo(National Road Safety Secretariat)
Sethsiripaya Office Complex
P.O. Box 53, Battaramulla, Sri Lanka
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 27 Sep 2013
Last Review Mission -
Last PDS Update 18 Oct 2013

TA 8473-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Sep 2013 07 Nov 2013 07 Nov 2013 30 Jun 2016 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 27 Sep 2013 218,838.90

Safeguard Documents

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Evaluation Documents

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