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Sri Lanka: Second Integrated Road Investment Program-Tranche 3

Sovereign (Public) Project | 50301-004 Status: Active

The investment program of $900 million multitranche financing facility (MFF) approved on 29 September 2017 will improve access to the road network in Sri Lanka's rural areas, supporting rural 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 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 3 will finance the third slice of projects identified during the appraisal of the MFF, using the time-slice approach.

 
Project Name Second Integrated Road Investment Program-Tranche 3
Project Number 50301-004
Country Sri Lanka
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4067-SRI: Second Integrated Road Investment Program-Tranche 3
Ordinary capital resources US$ 200.00 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 Equity and Mainstreaming Effective gender mainstreaming
Description The investment program of $900 million multitranche financing facility (MFF) approved on 29 September 2017 will improve access to the road network in Sri Lanka's rural areas, supporting rural 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 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 3 will finance the third slice of projects identified during the appraisal of the MFF, using the time-slice approach.
Project Rationale and Linkage to Country/Regional Strategy

Despite rapid progress in reducing poverty, Sri Lanka faces several challenges in eradicating it. There are disparities in the poverty rate across provinces and districts, particularly in Eastern, Northern, and Uva provinces. The government's priority is to secure prosperity for all through sustainable and inclusive development. However, poverty-targeting economic growth is hindered by poor transport infrastructure, particularly the poorly maintained provincial and local authority roads. Access to markets and business opportunities, especially along agricultural value chains, can be significantly improved with better transport infrastructure and can serve as the key to poverty reduction and shared prosperity in rural areas.

The program contributes to achieving the objectives of ADB's country partnership strategy for Sri Lanka, 2018 -2022, which aims to strengthen the drivers of economic growth and improve the quality of growth. The Second Integrated Road Investment Program will establish fully connected rural development centers with upgraded rural roads, targeting the three economically lagging provinces of Eastern, Northern, and Uva as well as Western Province.

Impact Connectivity between rural communities and socioeconomic centers in Sri Lanka improved (Public Investment Programme, 2017-2020). The impact is also aligned with the National Policy Framework Vistas of Prosperity and Splendour, 2020-2025.
Project Outcome
Description of Outcome Transport efficiency on project roads increased
Progress Toward Outcome
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)
Geographical Location Nation-wide, Province of Uva
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

All ongoing roads financed under the investment program have been assessed, with the findings and proposed mitigation measures covered in the provincial initial environmental examination (IEE) reports cleared and disclosed prior to the MFF approval in 2017, in accordance with ADB Safeguard Policy Statement (SPS) 2009. Additional roads identified for financing under the MFF have also been assessed and the IEEs covering these roads were disclosed in November 2020. All roads identified under the program have limited footprints, involving mainly rehabilitation and maintenance of existing rural and national roads located outside protected or critical habitat areas. Environmental impacts include typical road construction-related issues, such as: generation of dust and other air pollutants, noise, solid and liquid waste from construction sites and workers' camps; surface water contamination; community and occupational health and safety concerns; erosion; and siltation. The projects comply with all applicable domestic laws and requirements. The standard environmental management plan (EMP) includes mitigation measures for all anticipated impacts. Contractors have prepared site specific environment management action plans (SSEMAP) based on the final design, road specific environment checklists, and the standard EMP.

All project implementation consultants have been mobilized and are sufficiently staffed to support and monitor works and SSEMAP implementation across all four provinces covered by the program. Compliance with SSEMAP, all applicable domestic laws, and ADB SPS requirements is being monitored, which is not significantly hampered by the COVID-19 pandemic situation. Capacity building activities related to environment safeguards, health and safety are being carried out to the extent feasible. Consultation of affected communities is being conducted, with inputs and suggestions from stakeholders incorporated in the final design. The program has a functioning grievance redress mechanism designed up to the grassroot level. The environment due diligence report confirms generally satisfactory compliance with environmental safeguard requirements, including measures to prevent and control the spread of COVID-19. Annual environment monitoring reports have been submitted and disclosed.

Involuntary Resettlement All roads have been assessed for involuntary resettlement and only those that do not require expropriation will receive financing under the investment program. RDA''s social due diligence and monitoring reports confirmed that civil works in ongoing tranches have been undertaken only within existing right-of-way, except where communities have donated small strips of land to improve road safety engineering. A voluntary land donation system is in place following procedural requirements in the resettlement framework. The system requires the government to ensure that land donation is undertaken without coercion and documented in a transparent manner, and that an independent monitor verifies the process as such. The reports also confirmed that grievance redress mechanism is functioning in all provinces. The social monitoring reports have been submitted and disclosed.
Indigenous Peoples The identified projects are not expected to impact indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultation of affected communities is being conducted, with inputs and suggestions from stakeholders incorporated in the final design.
During Project Implementation 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 that are related to design and implementation.
Business Opportunities
Consulting Services

(i) Project implementation consultants (QCBS 90:10), including for training programs

- 144 person-months of international consulting services and 9,741 person-months of national consulting services (all four contracts awarded) amounting to $33.20 million.

(ii) Individual consultant selection

- 104 person-months of international consulting services and 198 person-months of national consulting services amounting to $3.9 million

(The Road Development Authority will recruit individual consultants for research capacity enhancement, mechanistic empirical pavement design development, road asset management, information management system, road safety guidelines, and institutional support for financial sustainability.)

Procurement

(i) International and/or national competitive bidding (civil works)

-All 53 contracts amounting to $758.02 million have all been awarded.

(The 73-kilometer additional roads in Western Province will be included after a detailed cost estimate is prepared; Procurement and consulting services include all activities under the facility because of the time-slice approach, but exclude the amount of taxes and duties contributed by the government through exemption.)

(ii) Shopping (equipment)

- 11 contracts amounting to $4.01 million

Responsible ADB Officer Lu, Yang
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Ministry of Highways
[email protected]
Maganeguma Mahamedura,
8th Floor, Denzil Kobbekaduwa Mawatha,
Koswata,
Battaramulla, Sri Lanka
Timetable
Concept Clearance -
Fact Finding -
MRM 15 Mar 2021
Approval 24 May 2021
Last Review Mission -
Last PDS Update 25 May 2021

Loan 4067-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 May 2021 28 May 2021 01 Jun 2021 30 Jun 2025 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 215.72 Cumulative Contract Awards
ADB 200.00 24 May 2021 0.00 0.00 0%
Counterpart 15.72 Cumulative Disbursements
Cofinancing 0.00 24 May 2021 50.00 0.00 25%

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.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.