Sri Lanka: Second Integrated Road Investment Program-Tranche 4

Sovereign Project | 50301-005

On 29 September 2017, the Board of Directors of the Asian Development Bank (ADB) approved a multitranche financing facility (MFF) for the Democratic Socialist Republic of Sri Lanka for the Second Integrated Road Investment Program totaling $900 million, with an availability period ending in March 2027._The investment program 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 3,180 kilometers (km) of rural access roads to an all-weather standard; rehabilitate and maintain about 406 km of national roads in Eastern, Northern, Uva, and Western provinces; and improve the capacity of road agencies with respect to road design and construction, research capacity, maintenance, safeguards, and road safety.

Project Name Second Integrated Road Investment Program-Tranche 4
Project Number 50301-005
Country / Economy Sri Lanka
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Second Integrated Road Investment Program
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 On 29 September 2017, the Board of Directors of the Asian Development Bank (ADB) approved a multitranche financing facility (MFF) for the Democratic Socialist Republic of Sri Lanka for the Second Integrated Road Investment Program totaling $900 million, with an availability period ending in March 2027._The investment program 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 3,180 kilometers (km) of rural access roads to an all-weather standard; rehabilitate and maintain about 406 km of national roads in Eastern, Northern, Uva, and Western provinces; and improve the capacity of road agencies with respect to road design and construction, research capacity, maintenance, safeguards, and road safety.
Project Rationale and Linkage to Country/Regional Strategy

The government plans to establish 2,500 rural development centers as rural economic market hubs. This will be achieved by (i) grouping many villages under identified potential development centers that have access to fully equipped rural economic market units, and (ii) by upgrading or rehabilitating rural access roads. Progress in improving provincial and local authority roads, however, has been relatively slow because of (i) competition for budget allocations, (ii) limited availability of sustainable raw materials, (iii) limited project implementation and maintenance capacity of road agencies, (iv) ad-hoc selection of provincial and local authority roads for improvement in the absence of clear criteria, and (v) insufficient community involvement in rural road development. The investment program will address these issues and improve the connectivity between priority rural development centers and surrounding villages.

The government has adopted a two-tier strategy to provide nationwide connectivity by (i) establishing a trunk road network with expressways and well-connected national roads, and (ii) completing a rural road network to connect the rural population to trunk roads efficiently. The Public Investment Programme, 2017-2020 provides policies for the road sector to facilitate the country's economic growth by creating an efficient road network that (i) connects large and emerging cities, townships, economic centers, and rural hubs; and (ii) ensures safety and equity.

Impact

Connectivity between rural communities and socioeconomic centers in Sri Lanka improved (Public Investment Programme, 2017-2020)

Outcome

Transport efficiency on project roads increased.

Outputs

Road conditions between the selected rural communities and socioeconomic centers improved

Capacity of road agencies enhanced

Geographical Location Nation-wide
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_mitigations_covered_in_the_provincial_initial environmental_examination,_which_were_disclosed prior_to_the_MFF_approval_in_2017._The environmental_assessment_and_review_framework (EARF) prepared_prior_to_MFF_approval remains valid. 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, and community and occupational health and safety concerns.
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. The RDA's social due diligence and monitoring reports confirm that applicable safeguard requirements have been met. 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. 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. The reports also confirmed that the grievance redress mechanism is functioning in all provinces. The social monitoring reports have been submitted and disclosed.
Indigenous Peoples No indigenous peoples community as defined by ADB's Safeguard Policy Statement has been identified in the subproject areas.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultation with affected communities is being conducted, with inputs and suggestions from stakeholders incorporated in the final design as exemplified in the context-sensitive design approach.
During Project Implementation Consultation with affected communities is expected to be conducted continuously during project 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
Timetable
Concept Clearance -
Fact Finding -
MRM 25 Mar 2022
Approval -
Last Review Mission -
Last PDS Update 30 Sep 2022

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

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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.

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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.