Sri Lanka : National Highways Sector Project

Project Name

National Highways Sector Project

Project Number

38357-013

Country / Economy

• Sri Lanka

Project Status

Closed

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

Source	Amount
Technical Assistance Special Fund	US$ 400,000.00

Loan 2217-SRI: National Highways Sector Project

Source	Amount
Ordinary capital resources	US$ 150.00 million

Loan 8252-SRI: National Highways Sector Project

Source	Amount
OPEC Fund for International Development	US$ 8.00 million

Loan 2767-SRI: National Highways Sector Project - Additional Financing

Source	Amount
Ordinary capital resources	US$ 85.00 million

Strategic Agendas

• Inclusive economic growth

Drivers of Change

• Gender Equity and Mainstreaming
• Partnerships

Sector / Subsector

• Transport / Road transport (non-urban) - Transport policies and institutional development

Gender

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

Project financially closed on 11 September 2017

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)

Completed

Completed

Geographical Location

Nation-wide, Aluthgama, Badulla District, Colombo, Galle District, Godagama, Hikkaduwa, Katukurunda, Kesbewa, Kirulapone, Matara, Nagoda, Nayapamula, Pamankada, Udatenna

Safeguard Categories

Environment

B

Involuntary Resettlement

A

Indigenous Peoples

C

Summary of Environmental and Social Aspects

Environmental Aspects

L2217 - Project Completed in 2012.

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 - Project Completed in 2012.

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 - Project Completed in 2012.

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 - Project Completed in 2012.

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

Contact

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

Road Development Authority

Timetable

Concept Clearance

08 Mar 2005

Fact Finding

21 Mar 2011 to 08 Apr 2011

MRM

-

Approval

15 Dec 2005

Last Review Mission

-

PDS Creation Date

27 Feb 2006

Last PDS Update

25 Sep 2017

Funding

Loan 2217-SRI

Loan 2767-SRI

Loan 8252-SRI

TA 4736-SRI