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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized F / f 3 8 Repon No. 8816-CE STAFF APPRAISALREPORT Public Disclosure Authorized SRI LANKA THIRD ROADSPROJECT OCTOBER3, 1990 Public Disclosure Authorized Public Disclosure Authorized InfrastructureOperations Division Country DepartmentI Asia RegionalOffice Thi docment asa restdcteddbuibudon and may be usedby repiensady in the pedromnau nf their oflicda duies. Its contents may not oerwise be disdosed wihoat Wodd Bank authrdzaion. CURRENCYAND EOUIVALENT UNITS (As of April 1990) CurrencyUnit - Sri Lanka Rupee (SL Rs) SL Rs 40.0 - US$1.00 SL Rs 1,000 - US$25.00 WEIGHTSAnD MEASURES 1 meter (m) - 3.28 feet (ft) 1 kilometer (km) - 0.62 mile (mi) 1 hectare (ha) - 2.48 acres (ac) 1 ton - 2,208 pounds 1 ton-km - 0.62 ton-mile 1 passenger-km - 0.62 passenger-mile ABBREVIATIONS ADB - Asian Development Bank CM&C - ConstructionManagement and Contracts EDCF - EconomicDevelopment Cooperation Fund (Republicof Korea) GOSL - Government of Sri Lanka INC-CPT - Inter-MinisterialCommittee for Coordination and Planningof Transport mOp - Ministry of Finance MPPI - Ministry of Planningand Policy Implementation MTH - Ministry of Transportand Highways OECF - OverseasEconomic Cooperation Pund ODA - OverseasDevelopment Administration PMMU - ProjectManagement and MonitoringUnit PPF - Project Preparation Facility RCDC - Road Constructionand DevelopmentCo. Ltd. RDA - Road Development Authority RTBs - Regional Transport Boards SLCTB - Sri Lanka CentralTransport Board TSPS - TransportSector PlanningStudy (January1988) FISCAL AR January 1 - December 31 FOR OMCIAL USE ONLY SRI LANK THIRDROADS PROJECT STAFFAPPRAISAL R2PORT Tableof Contents CREDIT AND PROJECT SUHARY ..........................................i I. TOE TRANSPORTSECTOR ..........................................1 A. Introduction 1.............................................. B. TransportInstitutions, Planning and Coordination.... ..... 1 C. SectorObjectives ............ .............................2 D. The TransportSystem .......... ............................2 E. IDA'sSector Role and AssistanceStrategy .................. 4 II. THE ROAD SUBSECTOR............................................ 5 A. The Network. ..............................................5 B. Traffic................................................... 6 C. Administrationand Organization....... ....................7 D. Planning,Design and Construction...... ...................9 '1. Road Expendituresand Financing.11 -II. THE PROJECT........................................ 12 A. Background. ........................................12 B. ProjectObjectives ........ ......... ...................... 13 C. ProjectDescription ........... .................. 13 D. Cost Estimates............................. 17 E. ProjectFinancing ......... .................... 17 F. Implementation............................. 18 G. Procurementand Contracting............................. 19 H. Disbursements............................. 20 I. Accountsand Audits .......................................21 J. Monitoringand Reporting.............................. 21 IV. JUSTIFICATIONAND RISKS .............................. 22 A. EconomicEvaluation ............ .................. 22 B. Risks .............................. 24 C. EnvironmentalImpact .............. ................ 25 D. SpecialConsiderations ............................... 25 V. A MREEMENTSREACHED AND RECONNENDATION......... ................25 This reportis based on the findingsof an appraisalmission to Sri Lanka in April 1990. Mission members included Mr. B. Assimakopoulos(Principal Engineer/Plannerand Task Manager),Mies. I. Bradfield (Senior Transport Economist),J. Williams-Palenzuela(Operations Assistant) from the International DevelopmentAssociation, and Mr. R. Leonard(Highway Engineer), Consultant. The reporthas been endorsedby Messrs.S. Asanuma(Director, Country Department I, Asia Region),and I. T. Christie(Chief, Infrastructure Operations Division). The peerreview team comprised Messrs. W. Patersonand S. Sigfusson,who focussed their reviewon highwayengineering; R. Zagha/ti.Shishido who focussedtheir review on economic aspects; and C. Rees, who reviewed ecological and environmentalaspects. The reporthas been clearedby Messrs.H. Darmawi(Senior Counsel)and R. Wiratunga(Senior Disbursement Officer). Thisdocument has a restricted distribution andmay be used by recipientsonly in the performance of theit official duties. Its contents may not otherwise be disclosed without World Bank authorization. Annex 1 Rcad DevelopmentAuthority: Organizationand ResponsibilitSes...... ..................27 Annex 2 Detailed Descriptionof Works (Roadsand Bridges)........... 33 Annex 3 Study on Road User Charges, Terms of Reference .... .........39 Annex 4 Domestic ContractingIndustry Study in the Road Subseator, Terms of Reference........................................ 44 Annex 5 ProjectManagement and MonitoringUnit Advisor, Terms of Reference ......... ..............................47 Annex 6 SupervisingConsultant, Terms of Reference ..... ............51 Annex 7 Scheduleof EstimatedDisburse3ments ......................... 58 Annex 8 ProjectReporting Requirements ............................. 59 Annex 9 EconomicEvaluation--Assumptions and Methodology............ 60 Annex 10 SelectedDocuments and Date Available in the Project File... 90 TABLES Table 1.1 Passengerand FreightTraffic . 92 Table 1.2 Vehicle Registrationsby Class of Vehicle. 93 Table 2.1 Road Network by Province/Juristiction and Road SurfaceType . 94 Table 2.2 Public Investmentin Transport(1981-1993) . 95 Table 2.3 Summaryof Provisions/Expenditureson Roads. 96 Table 2.4 Road DevelopmentAuthority - Proposed Five-YearExpenditures . 97 Table 3.1 Road RehabilitationProgram . 98 Table 3.2 Bridge RehabilitationProgram . 99 Table 3.3 Cost of Vehicles and Equipment . 100 Table 3.4 EstimatedCost for Roads . 101 Table 3.5 EstimatedCost for Bridges . 102 Table 3.6 EstimatedProject Costs (Roads and Bridges). 103 Table 4.1 Traffic Forecasts .. 104 Table 4.2 EstimatedConstruction Costs and Schedule . 1 Table 4.3 Results of Economic Evaluation .. 107 Table 4.4 Vehicle OperatingCosts: Toppu-Dankotuwa-GiriullaRoads . 108 Table 4.5 Vehicle OperatingCosts: Kalutara-AmbalangodaRoads . 109 Table 4.6 Vehicle OperatingCosts: St. Joseph Street. 110 Table 4.7 Switch Value Analysis .. 111 Chart 1 Organizationof Road DevelopmentAuthority . 112 Chart 2 ImplementationSchedule . 113 IBRD No. 22434 .L_ TnIRD RQADS PROJECT Credit and Projest Sumiarv lormuryff: DemocraticSocialist Republic of Sri Lanka Ben ficlaxi: Road DevelopmentAuthority hAM=: SDR 30.6 million (US$42.5million) TerAs: Standard,with 40 yeats maturity On-L.endLn Terms: N/A ProlectDescriution: The project'sobjectives are to: (a) reducethe road transport cost and delays of passengers and goods by restoringmajor trunk roads to better operational condition; (b) help to restore priorityroad infrastructuredamaged by floodingand landslidesin H4ay/June1989; (c) enhance the institutional capabilities to increase the quality and extent of road maintenanceand rehabilitation;and (d) upgradeRDA's capacity to superviseand executerehabilitation works and to identify actionsneeded to developthe local road contractingindustry. The project to be implementedover an eight-yearperiod would focus on: (a) rehabilitationof about 420 km of primary and secondary trunk routes (Class A and B roads); (b) repair, rehabilitationand replacementcf 24 bridges; (c) repair and rehabilitationof road sections and associated structures damaged as a consequence of floods and landslides; (d) procurement of vehicles, equipment and supplies to strengthen contract administration and management; and (e) consultantservices, technical assistance and on-the-job training to improve contract monitoring and cost control capabilities. Benefitsand Risks: Transportsavings made pos3ibleby the projectwould be passed on to the users in the form of lower operating costs and increasodproduct availability. The Sri Lankan populationis highly mobile and the benefitsof the project are expectedto be widely distributedamong all segments of the population, includingpoverty groups. The flood rehabilitationcomponent is expected to directlyassist rural low income familiesby restoringaccess for agriculturalinputs/outputs. The project supports privatization through assistance to the local contractingindustry and it is expected to generate labor- intensiveemployment opportunities for all dwellers in the vicinityof projectworks. A predominantrisk is the possible breakdowinof the fragile political stabilityin the country which could affect implementationand costs. Flexibilityhas been incorporatedinto the implementationschedule to allow for the initial contracts to be in areas unaffected by politicalunrest. Works will be initiallyawarded at annual intervalsin order to monitor the situationand enable the timing of the later contracts to be adjusted to prevailing conditions. Other risks are the possible weakening of Government'scommitment to the project and over-extensionof RDA's implementationcapacity. - ii- EstimatedCosta; Local Foreign Total ----- US$ million--------- Civil Works (Roads and Bridges) 20.9 27.9 48.8 Road Flood Rehabilitation 1.7 0.6 2.3 Equipment 0.1 0.1 0.2 TechnicalAssistance Project Support 2.3 2.4 4.7 Policy Development 0.2 0.6 0.8 ProjectPreparation Facility 0.0 0.5 0.5 Total Base Costs Z= 32.1 5.3A PhysicalContingencies 2.1 2.6 4.7 Price Contingencies 2.9 _.. 8.5 ::ubtotalContingencies 5.0 8.2.13.2
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