Project Name Second Integrated Road Investment Program-Tranche 1
Project Number 50301-002
Country / Economy Sri Lanka
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3579-SRI: Second Integrated Road Investment Program-Tranche 1
Ordinary capital resources US$ 90.00 million
Loan 3580-SRI: Second Integrated Road Investment Program-Tranche 1
Concessional ordinary capital resources lending US$ 60.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
Sector / Subsector

Transport / Road transport (non-urban)

Gender Effective gender mainstreaming
Description The investment program will improve the accessibility of the road network in Sri Lanka's rural areas, and thereby increase the involvement of the rural population in nationwide economic and social development. It will upgrade and maintain about 3,400 kilometers (km) of rural access roads to an all-weather standard; rehabilitate and maintain to a good condition about 340 km of national roads in Eastern, Northern, Uva, and Western provinces; and improve the capacity of road agencies with respect to safeguards, road safety, maintenance, research capacity, and road design and construction. Tranche 1 will finance the first slice of the projects.
Project Rationale and Linkage to Country/Regional Strategy In spite of the rapid progress in poverty reduction, Sri Lanka still faces several challenges to fully eradicate poverty. Pro-poor economic growth will need to be driven not by the high rates of public expenditures but by market-oriented value addition and private-sector-led investment. In this context, access to market, business and knowledge opportunities and benefits especially along agricultural value chains will be a key to further poverty reduction and shared prosperity in rural areas.
Impact

Connectivity between rural communities and socioeconomic centers in Sri Lanka improved.

Project Outcome
Description of Outcome

Transport efficiency on project roads increased.

Progress Toward Outcome As of 30 August 2021, physical progress is 50%. The overall progress slowed down due to COVID -19. The impact of this event is being evaluated. This tranche is physically closed on 31 December 2020 and loans will be financially closed.
Implementation Progress
Description of Project Outputs

Road conditions between the selected rural communities and socioeconomic centers improved

Capacity of road agencies enhanced

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

1.Contracts awarded to improve 3180 km of rural roads and 755 km completed. Performance Based Maintenance is in progress in completed road sections. Contracts awarded to improve 413 km of National roads and 85 km completed. Procurement initialized for 70 km length national roads. Performance Based Maintenance is in progress in completed road sections.

2.Three RDA staff participated in Rural Road Design program in overseas in Q4 2019. Recruitment of international pavement consultant is completed. Information technology specialist mobilized in Q4 2019. 10 workshops on social safeguard and environmental safeguard conducted. More than 200 staff from RDA & provincial road agencies participated. Digitized sample collection and billing system was introduced to research & Development Division of RDA in 2019. Bid document for equipment procurement under preparation.

Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The scope of works of the MFF involves rehabilitation of existing rural and national roads. There will be no road widening and no roads falling inside protected areas that will be included in the project. Therefore, Tranche 1 has been categorized as 'B in accordance with ADB's Safeguard Policy Statement.
Involuntary Resettlement All national and rural roads improvements will be undertaken within the existing rights-of-way. No involuntary resettlement impacts were identified during due diligence undertaken for tranche 1. However, for the national road component during implementation of the 7-year maintenance contract, involuntary resettlement impacts could be encountered, and the project has therefore been classified as category B.
Indigenous Peoples No indigenous people were identified during due diligence. An indigenous peoples planning framework has been prepared to guide the screening and preparation of safeguard planning for future tranches.
Stakeholder Communication, Participation, and Consultation
During Project Design To strengthen inclusiveness and empowerment of the poor and vulnerable in project implementation, meaningful consultations and social surveys were conducted along all project roads through household surveys, group discussions, and a transect walk. Community participation was undertaken to increase awareness of the project, to determine people's needs and concerns, and to obtain suggestions for enhancing benefits and mitigating negative impacts. For the rural road component, continued consultations will take place throughout the design and implementation period, including using community participatory approaches to finalize road designs, especially with respect to improving road safety, minimizing environmental impact, and minimizing construction impact. A grievance redress mechanism will be set up in all project areas for complaints raised by community members related to design and implementation.
During Project Implementation Stakeholders are being consulted during project implementation.
Business Opportunities
Consulting Services Consultants will be recruited, as firms or individuals, to support the project implementation and capacity development in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).
Procurement Procurement of civil works and equipment will be carried out in accordance with ADB Procurement Guidelines (2015, as amended from time to time).
Responsible ADB Officer Nanayakkara, Aruna Uddeeptha
Responsible ADB Department South Asia Department
Responsible ADB Division Sri Lanka Resident Mission (SLRM)
Executing Agencies
Ministry of Highways
Timetable
Concept Clearance -
Fact Finding -
MRM 03 Jul 2017
Approval 06 Oct 2017
Last Review Mission -
Last PDS Update 27 Sep 2021

LoanĀ 3579-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Oct 2017 22 Nov 2017 09 Feb 2018 31 Dec 2020 - 30 Apr 2021
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 112.10 Cumulative Contract Awards
ADB 90.00 17 Jun 2022 90.00 0.00 100%
Counterpart 22.10 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 90.00 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

LoanĀ 3580-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Oct 2017 22 Nov 2017 09 Feb 2018 31 Dec 2020 - 06 Oct 2021
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 60.00 Cumulative Contract Awards
ADB 60.00 17 Jun 2022 59.86 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 59.86 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory
 
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Source URL: https://www.adb.org/projects/50301-002/main