fbpx 49111-005: Railway Efficiency Improvement Project | Asian Development Bank

Sri Lanka: Railway Efficiency Improvement Project

Sovereign (Public) Project | 49111-005 Status: Active

The project was prepared to support immediate improvements in the operation, maintenance, safety, skills development, and implementation capacity of SLR. The project will (i)improve the operational efficiency of the railway network by addressing key operating bottlenecks with the modernization of the telecommunications, ticketing, operations headquarter, and train control center systems; (ii) upgrade the railway workshop at Ratmalana, and procure rolling stock and track maintenance equipment; (iii) improve railway safety mainly through the construction of housing blocks to support the future resettlement of encroachers, and the improvement of Colombo Fort and Maradana stations; and (iv) upgrade the Sri Lanka German Railway Technical Training Center (SLGRTTC); and (v) support project implementation capacity and readiness, notably for the future modernization of the Kelani Valley line and other suburban lines.

Project Details

Project Officer
Rowan Marcus, Kirsty South Asia Department Request for information
Country
  • Sri Lanka
Sector
  • Transport
 
Project Name Railway Efficiency Improvement Project
Project Number 49111-005
Country Sri Lanka
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3806-SRI: Railway Efficiency Improvement Project
Ordinary capital resources US$ 160.00 million
TA 9787-SRI: Strengthening of Management Information Systems and Asset Management Capacity
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Transport / Rail transport (non-urban)

Gender Equity and Mainstreaming Some gender elements
Description The project was prepared to support immediate improvements in the operation, maintenance, safety, skills development, and implementation capacity of SLR. The project will (i)improve the operational efficiency of the railway network by addressing key operating bottlenecks with the modernization of the telecommunications, ticketing, operations headquarter, and train control center systems; (ii) upgrade the railway workshop at Ratmalana, and procure rolling stock and track maintenance equipment; (iii) improve railway safety mainly through the construction of housing blocks to support the future resettlement of encroachers, and the improvement of Colombo Fort and Maradana stations; and (iv) upgrade the Sri Lanka German Railway Technical Training Center (SLGRTTC); and (v) support project implementation capacity and readiness, notably for the future modernization of the Kelani Valley line and other suburban lines. The project will increase the efficiency and attractiveness of the railway system, thus contributing to the improvement of the market share and financial sustainability of SLR.
Project Rationale and Linkage to Country/Regional Strategy

Sri Lanka benefits from an advantageous geographical position at the crossroads of major maritime trade routes between Asia and Europe. It is a densely populated island, with 21.7 million people living on 62,710 square kilometers of land, or 346 people per square kilometer. Colombo is the center of commercial and administrative functions and accounts for about 54.6% of Sri Lanka's urban population. The Western Province includes the districts of Colombo, Gampaha, and Kalutara, concentrates 6.1 million people (28% of the country total) on 5.6% of the land area of Sri Lanka, and contributes to 38.7% of its gross domestic product (GDP).

After a strong post-war recovery period, with the GDP growing by 8.5% annually during 2009 2012, the growth of the GDP averaged 4.1% during 2012 2018, and is also forecast at 4.1% in 2019.3 Sri Lanka is on the path to achieving upper-middle income status, and the GDP per capita attained $4,065 in 2017 while the poverty headcount ratio decreased from 22.7% of the population in 2002 to 4.1% in 2016. However, inadequate transport infrastructure and service delivery hinder the development of industry and services, which account for 91.8% of the GDP, and prevent Sri Lanka from leveraging its geographical position to increase its competitiveness and promote inclusive economic growth. Exports increased by 2.7% only during 2007 2017, while imports increased by 7.3% in the same period.

The population of Sri Lanka is projected to stabilize to 25.0 million people by 2050. The rising affluence of the middle-class drives a rapid increase of motorization rates, and total vehicles in Sri Lanka increased from 3.1 to 7.2 million during 2007 2017 (8.8% annual growth), with 67% of new cars registered in the Western Province. The stagnating efficiency of the railway network results in a market share of about 6% of passenger and 1% of freight demand in 2017 only, down from 35% of passenger and 80% of freight markets at its peak. This results in increasing congestion, particularly in the Western Province, where daily motorized trips are forecasted to increase from 7.9 million trips in 2013 to 18.3 million by 2035, while roads cover only about 10.7% of the urban area of Colombo.5 Significant investments are thus required to heighten the railway market share, increase domestic trade, alleviate the growing pressure on the road network, and mitigate the negative economic impacts of congestion.

Colombo is the central node of the railway, road, air, and port infrastructure networks. SLR was established in 1858, and owns and operates the railway network; administratively, it is a department of the Ministry of Transport & Civil Aviation (MOTCA). In 2017, the railway network connected 343 stations along 1,568 km of broad-gauge tracks, and SLR operated about 351 daily passenger trains and 19 freight trains, transporting 136.7 million passengers and 2.0 million tons of goods annually. Four suburban lines radiate out of Colombo, and the 230 km of tracks in the Western Province (16% of the country total) carry over 80% of railway passengers. SLR owns 250 diesel locomotives and multiple units, but only 76% are operational and 49% of the fleet is over 30 years old. Tracks and rolling stock suffer from corrosion due to airborne salinity, which hinders the potential for rehabilitation. Signaling mainly consists of outdated mechanical interlocking system, with centralized control for only 200 km of tracks in the Western Province. The telecommunications system was installed in 1985, with the latest spare parts received in 1998. Automatization is limited, and most planning, operating, and recording activities are manually conducted.

Impact Efficient, inclusive, safe, and sustainable movement of people and goods promoted to support sustainable economic development
Project Outcome
Description of Outcome Efficiency, safety, and sustainability of railway operations in Sri Lanka improved
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Operational efficiency improved

Maintenance capacity strengthened

Railway safety improved

Technical training center upgraded

Project implementation capacity and readiness of future railway projects strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects A draft Initial Environmental Examination was submitted by Sri Lanka Railways in August 2018. A composite environmental management plan (EMP) covering all civil works components will be included in the IEE while site specific EMPs will be prepared and attached to the bid document for the six components.
Involuntary Resettlement The project does not involve significant involuntary resettlement. The project aims to improve Sri Lanka Railways' (SLR) operations efficiency, sustainability, and safety. The project will finance construction of an office, training rooms, stores and workshop, housing blocks, and upgrade of a railway underpass. All construction will be undertaken within SLR land. Due diligence has been conducted to assess the impacts of construction on structures and livelihood. It indicates that there are no private occupants or businesses on the sites. Hence, the project is not expected to entail involuntary resettlement due to land acquisition or restriction of access.
Indigenous Peoples The project is not expected to affect Indigenous Peoples communities.
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholders and the community were engaged in orientation and workshops; a resettlement safeguards orientation workshop was conducted in August 2018 for pipeline projects.
During Project Implementation
Business Opportunities
Consulting Services

Consulting firms and individual consultants will be recruited under the project to assist with the implementation and preparation of pipeline projects.

All consultants will be recruited according to ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). All firms will be recruited using ADB's quality- and-cost-based selection (QCBS) under full technical proposal (FTP) and a standard quality cost ratio of 90:10, unless nongovernment organizations are identified in which case the recruitment approach will be updated to quality-based selection (QBS). Individual international and national consultants will be engaged for project management support, railway technical expertise, and capacity building of the PMU. About 30 person-months of international consultants and 100 person-months of national consultants will be required.

Procurement

All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2015, as amended from time to time).

International competitive bidding procedures will be used for all civil works, goods, and information technology (IT) goods contracts. Shopping will be used for procurement of works and goods estimated to cost less than $100,000. Before the start of any national competitive bidding procurement, ADB and the government will review the public procurement laws of the government to ensure consistency with ADB's Procurement Guidelines (2015, as amended from time to time).

All procurement activities will be the responsibility of the project director of the PMU, who will be supported by staff and consultants. ADB will closely monitor all major project implementation activities. Works and goods contracts under the projects primarily include (i) two IT-goods packages for the telecommunications and ticketing system; (ii) five design-build packages for the housing units, operations headquarters and train control center, railway workshop, new training wing of the SLGRTTC, and railway underpass; (iii) one or more works packages for the improvements of station facilities at Colombo Fort and Maradana; (iv) and about 18 goods packages for the procurement of maintenance equipment, and training equipment for the SLGRTTC.

Responsible ADB Officer Rowan Marcus, Kirsty
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Ministry of Transport and Civil Aviation
[email protected]
7th Floor, Sethsiripaya, Stage II,
Battaramulla, Sri Lanka
Timetable
Concept Clearance 11 Dec 2015
Fact Finding 22 Jan 2019 to 30 Jan 2019
MRM 11 Mar 2019
Approval 14 Aug 2019
Last Review Mission -
Last PDS Update 14 Aug 2019

Loan 3806-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Aug 2019 20 Aug 2019 06 Sep 2019 30 Jun 2025 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 192.00 Cumulative Contract Awards
ADB 160.00 14 Aug 2019 5.52 0.00 3%
Counterpart 32.00 Cumulative Disbursements
Cofinancing 0.00 14 Aug 2019 0.94 0.00 1%

TA 9787-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Aug 2019 06 Sep 2019 06 Sep 2019 31 Dec 2022 - -
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 14 Aug 2019 0.00

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.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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
Railway Efficiency Improvement Project: Initial Environmental Examination Initial Environmental Examination Nov 2018

Evaluation Documents See also: Independent Evaluation

None currently available.

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.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Project Implementation and Supervision Consultant of Project Management Unit for Islandwide Railway Ticketing and Seat Reservation System (RTRS) Individual - Consulting Closed 19 Sep 2019 04 Oct 2019
National Consultant for Land Acquisition/Land Affairs Individual - Consulting Closed 19 Sep 2019 04 Oct 2019
Enterprise Resource Planning System Firm - Consulting Closed 09 Aug 2019 27 Sep 2019
49111-SRI: Railway Efficiency Improvement Project [REIP/ADB/ICB/W/03-1] Invitation for Bids Closed 06 Aug 2019 27 Dec 2019
49111-SRI: Railway Efficiency Improvement Project [REIP/ADB/ICB/W/01] Invitation for Bids Closed 06 Aug 2019 09 Dec 2019
Social Development Consultants Firm - Consulting Closed 04 Jul 2019 05 Aug 2019
Land Value Capture and Transit Oriented Development study for Kalani Valley Line Corridor Firm - Consulting Closed 11 Jun 2019 02 Aug 2019
49111-SRI: Railway Efficiency Improvement Project [REIP/ADB/ICB/G/03] Invitation for Bids Closed 29 May 2019 02 Sep 2019
49111-SRI: Railway Efficiency Improvement Project [REIP/ADB/ICB/G/05] Invitation for Bids Closed 29 May 2019 03 Sep 2019
49111-SRI: Railway Efficiency Improvement Project [REIP/ADB/ICB/G/01] Invitation for Bids Closed 27 May 2019 29 Aug 2019
49111-SRI: Railway Efficiency Improvement Project [REIP/ADB/ICB/G/02] Invitation for Bids Closed 27 May 2019 30 Aug 2019
National Consultant for Railway Operations,Transit Oriented Development (TOD) and Land Acquisition Individual - Consulting Closed 08 Feb 2019 25 Feb 2019
National consultant for implementation of Enterprise Resource Planning (ERP), Telecommunication and other ICT systems in Sri Lanka Railways Individual - Consulting Closed 08 Feb 2019 25 Feb 2019
Loan No. 49111-SRI: Colombo Suburban Railway Efficiency Improvement Project [CSREIP/ADB/ICB/IT/02] Invitation for Bids Closed 11 Sep 2018 11 Dec 2018
Loan No. 49111-SRI: Colombo Suburban Railway Efficiency Improvement Project [CSREIP/ADB/ICB/IT/01] Invitation for Bids Closed 04 Sep 2018 16 Nov 2018
SRI: Colombo Suburban Railway Efficiency Improvement Project Advance Notice Active 03 Sep 2018
Consultancy Service on Utility Network due to Operation of Electrical Multiple Units (EMU)- Colombo Suburban Railway Project Individual - Consulting Closed 14 Aug 2018 31 Aug 2018
Consultancy Service for Project Implementation Consultant Firm - Consulting Closed 07 Jun 2018 13 Jul 2018

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
CONSULTANCY FOR FEASIBILITYSTUDY AND DETAILED DESIGN OF KANDY SUBURBAN RAILWAY PROJECT Loan 3806 19 Dec 2019 IDOM CONSULTING, ENGINEERING ARCH., SAU BILBAO (VIZCAYA) SPAIN Ministry of Transport and Civil Aviation CONSULTANCY 5,257,031.01 5,257,031.01

Procurement Plan