Sri Lanka : Second Integrated Road Investment Program-Tranche 3

Project Name

Second Integrated Road Investment Program-Tranche 3

Project Number

50301-004

Country / Economy

• 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

Source	Amount
Ordinary capital resources	US$ 200.00 million

Operational Priorities

• OP1: Addressing remaining poverty and reducing inequalities
• OP2: Accelerating progress in gender equality
• OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
• OP5: Promoting rural development and food security
• OP6: Strengthening governance and institutional capacity

Sector / Subsector

• Transport / Road transport (non-urban)

Gender

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

As of 30 September 2022, progress is 74.60%. The overall progress slowed down due to COVID-19 during 2020/21, followed by the current economic crisis.

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 3,170 km of rural roads and 2,126 km completed. Performance Based Maintenance is in progress in 960 km completed road sections. Contracts awarded to improve 375 km of National roads and 229 km completed. Procurement is ongoing for 29 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. Information technology specialist mobilized in Q4 2019.More than 10 workshops on social safeguard and environmental safeguard conducted. More than 250 staff from RDA & provincial road agencies benefited. Digitized sample collection and billing system was introduced to research & Development Division of RDA in 2019. Procurement of equipment is commenced. One equipment package completed and three on-going. Phase 1 of the assignment of Pavement Engineer (International) is completed and phase 2 is ongoing. Material Engineer (National) mobilized in Q4 2021.Public Administration Specialist (National) recruited.

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, mechanisticempirical 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)

- 66 contracts have all been awarded.

(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

Contact

Responsible ADB Officer

Sinclair, Nirojan Donald

Responsible ADB Department

Sectors Group

Responsible ADB Division

Transport Sector Office (SG-TRA)

Executing Agencies

Ministry of Highways

Timetable

Concept Clearance

-

Fact Finding

-

MRM

15 Mar 2021

Approval

24 May 2021

Last Review Mission

-

Last PDS Update

13 Dec 2022

Funding

Loan 4067-SRI