Sri Lanka : Second Integrated Road Investment Program-Tranche 1

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

Source	Amount
Ordinary capital resources	US$ 90.00 million

Loan 3580-SRI: Second Integrated Road Investment Program-Tranche 1

Source	Amount
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).

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

Timetable

Concept Clearance

-

Fact Finding

-

MRM

03 Jul 2017

Approval

06 Oct 2017

Last Review Mission

-

Last PDS Update

27 Sep 2021

Funding

Loan 3579-SRI

Loan 3580-SRI