Sri Lanka : Integrated Road Investment Program

Project Name

Integrated Road Investment Program

Project Number

47273-002

Country / Economy

• Sri Lanka

Project Status

Active

Project Type / Modality of Assistance

• Loan

Source of Funding / Amount

MFF Facility Concept 0086-SRI: Integrated Road Investment Program

Source	Amount
Asian Development Fund	US$ 134.00 million
Ordinary capital resources	US$ 666.00 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 /

Gender

Effective gender mainstreaming

Description

The investment program will improve the accessibility of the road network in rural areas of Sri Lanka, and thereby increase the involvement of the rural population in nationwide economic and social development. An integrated road network will support long-term rural development. The investment program will upgrade and maintain about 2,200 kilometers (km) of rural access roads to all-weather standard; rehabilitate and maintain to a good condition about 400 km of national roads; and improve the capacity of road agencies including the Ministry of Highways, Ports and Shipping (MOHPS), the Road Development Authority (RDA), provincial road agencies, and local authorities with respect to road asset management, project management, and contract administration. The investment program will play a catalytic role in the sustainable development of Sri Lanka.

Project Rationale and Linkage to Country/Regional Strategy

Sri Lanka occupies a strategic position near the main sea trade routes between Asia and Europe, which allowed Colombo to develop as an international port city, and subsequently as a transshipment point for cargo originating in or destined for the Indian subcontinent. The island country consists mostly of flat or rolling coastal plains, with mountains in the southcentral core. About 85% of Sri Lanka's population (20.3 million in 2012) lives in rural and peri-urban areas.

Sri Lanka has experienced strong economic growth following the end of civil conflict in May 2009. Economic growth was 8% in 2010 and 2011; slowed to 6.4% in 2012 due to weak external demand, drought, and floods; and then rebounded to 7.3% in 2013. It is envisaged that an improving external environment, higher investment, and a recovery in domestic consumption will sustain a rapid economic growth during 20142015. Sri Lanka's economic expansion has been driven by the industry and services sectors, which account for 89% of gross domestic product, followed by the agriculture sector, which contributed the remaining 11%. As a result of the robust growth, the national poverty headcount ratio fell to just below 9% in 2010 from over 15% in 2006. Nevertheless, less-developed areas did not exhibit consistently higher elasticity of poverty reduction (proportional change in poverty per unit growth in gross domestic product per capita). The poor transport infrastructure, in particular the provincial and local authority roads, has hindered the spread of economic activities and access to basic social resources.

Impact

Improved connectivity between rural communities and socioeconomic centers in Sri Lanka

Project Outcome

Description of Outcome

Increased transport efficiency on project roads

Progress Toward Outcome

As of 31 October 2021, physical progress is 81.7%. The overall progress slowed down due to COVID -19.

Implementation Progress

Description of Project Outputs

Improved road conditions between the selected rural communities and socioeconomic centers

Enhanced capacity of road agencies

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

1. Contracts awarded to improve 2710 km of rural roads and 2370 km completed. Procurement ongoing for 379 km length roads. Performance Based Maintenance is in progress on the road section rehabilitation is completed. 235 km national road awarded and 37 km completed. Procurement initialized for 170 km length national roads.

2. Altogether 135 workshops, training and seminars were conducted. Out of this 65 are related to the capacity development of road agencies (RDA, PRDA and Local Authorities). Approximately 450 staff members benefited. Rural road design standard, construction specification, and maintenance manual endorsed by RDA.

Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects

Safeguard due diligence have be conducted according to ADB's Safeguard Policy Statement (2009). An environmental review assessment framework has been prepared for the investment program. For individual tranches, resettlement plans, initial environment examination and environment management plan will be prepared.

Involuntary Resettlement

A resettlement framework has been prepared.

Indigenous Peoples

An indigenous peoples planning framework has been prepared.

Stakeholder Communication, Participation, and Consultation

During Project Design

Stakeholder participation and consultation include 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 present in the project area. CSOs will be identified and engaged as appropriate for livelihood restoration activities outlined in the resettlement planning documents.Poor and excluded affected persons impacted by land acquisition are consulted and surveyed. Additional assistance and provisions such as livelihood rehabilitation will be outlined in Resettlement Plans.

During Project Implementation

The EA will be required to ensure that women and men are given equal opportunities for employment on the project. Contractors will be required to ensure equal payment for equal work. A specific clause will be included in the bidding documents of the civil works. Monitoring mechanisms will be developed to monitor these actions in the due course. Potential practical and implementable gender-specific initiatives will be explored during due diligence.

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

Consulting firms and individual consultants will be selected to assist the project implementation unit in project management, contract administration, and capacity development programs. Contractors will be selected for civil works involved in rural road development, national road rehabilitation, and road network maintenance and operation.

To expedite project implementation, advance contracting and retroactive financing will be used to procure the civil works and consulting services. Procurement of civil works and equipment will be carried out in accordance with ADB Procurement Guidelines (2013, as amended from time to time). The works contracts will adopt the international or national competitive bidding procedure, using the output and performance-based road contract mode. The bidding and contract documents will use the one developed by the World Bank, with modification to comply with ADB requirements.

Contact

Responsible ADB Officer

Sinclair, Nirojan Donald

Responsible ADB Department

South Asia Department

Responsible ADB Division

Sri Lanka Resident Mission (SLRM)

Timetable

Concept Clearance

27 Sep 2013

Fact Finding

05 May 2014 to 16 May 2014

MRM

13 Jun 2014

Approval

25 Sep 2014

Last Review Mission

-

Last PDS Update

29 Nov 2021

Funding

MFF Facility Concept 0086-SRI