fbpx 26522-023: Southern Transport Development Project (Supplementary Financing) | Asian Development Bank

Sri Lanka: Southern Transport Development Project (Supplementary Financing)

Sovereign (Public) Project | 26522-023 Status: Closed

The Asian Development Bank is working with Sri Lanka to build a new southern highway linking Colombo with Galle and to reduce road accidents. The project links Colombo to the capital of Southern Province, and Matara. This is reducing poverty in the southern part of the country.

Project Name Southern Transport Development Project (Supplementary Financing)
Project Number 26522-023
Country Sri Lanka
Project Status Closed
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 2413-SRI: Southern Transport Development Project (Supplementary Financing)
Ordinary capital resources US$ 90.00 million
TA 7065-SRI: Land Use Planning of the Southern Highway Corridor (piggybacked)
Technical Assistance Special Fund US$ 300,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector

Transport / Road transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description The primary objectives of the Project are to (i) facilitate and act as a catalyst for development in the economically deprived southern region by constructing a new southern highway linking Colombo with Galle, the capital of Southern Province, and Matara; and (ii) produce a sustainable and quantifiable reduction in the country's very high road accident rate. The secondary objective is poverty reduction within the immediate project area, where more than 30% of the population is classified as poor, and within the south of the country generally.
Project Rationale and Linkage to Country/Regional Strategy

The Project is one of the Government's priority projects. Traffic volume between the southern areas of the country and Colombo has increased significantly; travel time between Matara and Colombo is about 4-5 hours. The completion of Southern Highway will significantly reduce travel time and lead to effective movement to and from the southern areas to Colombo. This improved connectivity will contribute to increased economic activities.

The Project has experienced cost overruns, especially due to increases in civil work costs. Contributing factors include (i) price escalation due to delay in completing land acquisition and associated litigations, (ii) undetermined geotechnical and soil conditions, and (iii) increase in value-added tax. Implementation delays due to safeguard compliance issues resulted in delayed handover of the site to the contractor and increased the cost of consulting services, mainly because of the additional time required to supervise construction works.

The original Project covers construction of the first two-lanes of an ultimate four-lane highway. However, a six-lane right-of-way was prepared and acquired. The design study indicates that to maintain the service of an intercity highway, the Project will need to be upgraded to four lanes after 2010. This means that upgrading needs to start now.

The expansion to a four-lane highway is justifiable based on the following grounds: (i) traffic demand; (ii) resource savings when the four-lane construction is undertaken simultaneously with finalizing the two-lane construction; (iii) continuity of the four-lane highway from Kottawa to Matara; and (iv) improved road safety.

The proposed activities and components under the supplementary loan are consistent with Government and ADB priorities. Physical changes have been assessed along with their impacts in the context of current ADB policies. A review of safeguards compliance and all steps in the matrix of due diligence have been observed. The Project is technically feasible, economically viable, and financially sustainable.

Impact Improved socioeconomic conditions in the southern region through improved integration with the country's economic mainstream.
Project Outcome
Description of Outcome

1. Operation of the highway

2. Increased economic opportunities for residents in the southern region through efficient road connectivity with the capital city and other regions

Progress Toward Outcome The Substantial completion certificate was issued on 19 May 2011 for the Civil Work Contract of ADB funded section. Defect notification period was completed in August 2012. The Expressway section from Kottawa to Galle was opened to public on 26 November 2011.
Implementation Progress
Description of Project Outputs

A four-lane limited access highway from Kottawa to Matara and the Galle access road are operating.

Interchange area developed as a growth center

Incomes, employment, and living conditions of affected households are restored or improved.

Public awareness campaign on operation and use of the highway

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

The goverment received allocation from export and import bank of China to finance the balance work from Pinnaduwa to Godagama section of STDP

On Going




Four intercahnge development plans have been prepared under TA 7566 and the balance are being prepared by UDA.

The TA is completed.


Geographical Location Galle District, Kurundugahahetekma, Nayapamula, Pinnaduwa
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
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

Services of the construction supervision consultant funded by the original 1999 loan continueD until February 2008. Thereafter, additional inputs of about 140 person-months of international consulting and 1,040 of national consulting has been recruited under the supplementary loan to supervise civil works in Kurundugahahetekma-Pinnaduwa interchange section and Galle access road.

The original management consultant, financed by the Nordic Development Fund, provided services until the end of 2008. Thereafter, an additional 34 person-months of international consulting and 218 person-months of national consulting has been recruited under the supplementary loan.

The consultants was using quality- and cost-based selection, and single-source selection.

Procurement The existing civil works contract was restructured to include four-lane construction with reduced road length of 29.2 km, which is the Kurundugahahetekma-Pinnaduwa interchange section, and approximately 5.6 km of Galle access road.This contract is now completed. The balance of works for the Pinnaduwa interchange-Matara section, including four-lane construction, has procured by following the Government procurement laws and procedures.
Responsible ADB Officer Nanayakkara, Aruna Uddeeptha
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Ministry of Highways and Road Development
Admiral Wasantha Karannagoda
9th Floor, "Sethsiripaya" Battaramulla, Sri Lanka
Concept Clearance 03 Jul 2006
Fact Finding 03 Oct 2006 to 13 Oct 2006
MRM 31 Aug 2007
Approval 06 Mar 2008
Last Review Mission -
PDS Creation Date 13 May 2009
Last PDS Update 28 Mar 2013

Loan 2413-SRI

Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Mar 2008 30 Apr 2008 13 Jun 2008 30 Dec 2010 30 Jun 2013 05 Jul 2013
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 179.10 Cumulative Contract Awards
ADB 90.00 06 Mar 2008 90.00 0.00 100%
Counterpart 89.10 Cumulative Disbursements
Cofinancing 0.00 06 Mar 2008 90.00 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Unsatisfactory - - - Satisfactory

TA 7065-SRI

Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Mar 2008 02 May 2008 02 May 2008 31 May 2009 31 Oct 2009 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
300,000.00 0.00 75,000.00 0.00 0.00 0.00 375,000.00 06 Mar 2008 293,103.24
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Unsatisfactory - - - Satisfactory

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Southern Transport Development Project Summary Environmental Impact Assessments Apr 2007

Evaluation Documents See also: Independent Evaluation

Title Document Type Document Date
Sri Lanka: Southern Transport Development Project Validations of Project Completion Reports Dec 2015

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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Contracts Awarded

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