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

Total Project Costs J/ 30.2 40.3 70.5

1/ The total cost, net of taxes and duties (US$8.3million), is US$62.2 million. Figuresmay not total because of rounding.

.:^nancim Plan: Local Fgreign Total -- US$ million------

Government 13.5 0.0 13.5 EDCF (Republicof Korea) 4.3 10.2 14.5 IDA ILA NU 42.

Total 30.2 40.3 70.5

EstimapedDisbursements:

IDA Fiscal Year PY91 FY92 FY93 F imFY9S 1122 112Ft ------US$ million------

Annual 2.4 2.5 4.9 7.4 9.0 8.2 6.0 2.1 Cumulative 2.4 4.9 9.8 17.2 26.2 34.4 40.4 42.5

EconmoicRate of Return: 33.1%

NO: IBERDNo. 22434 SkI LANKA

THIRD ROADS PROJECT

I. THE TRANSPORTSECTOR

A. Introduction

1.1 The island of Sri Lanka (66,000kW 2) has a topographywhich is flat in the coastal areas and mountainous toward the center of the island. The maximumgeographical distances of the islandare about 400 km from north to south and 240 km from east to west. Rivers flow in a radial patternfrom the mountains and have no navigationalsignificance. The road network traversesa land contour rising from mean sea level to over 2,000 meters and throughareas with iainfall as high as 3,500 mm per year and average temperaturesranging from 110C in the mountainousareas toward the center of the island to 32°C in the coastalareas. The 1989 populationwas estimatedat about 16.6 million, a high percentage of which lives within the southwestquadrant and in the Jaffna peninsula at the northern tip of the island. Between 1980 and 1989, the populationin Sri Lanka grew at the moderate rate of 1.2% annually. The size and topography of the country and the location of population centers have influencedthe transport infrastructureby generating large and frequent short distance transport of passengersand goods that exercise continuouspressure on road transport.

1.2 Almost every part of the country is accessibleby road and rail networks. In the face of severefinancial constraints, however, public transport infrastructurehas deterioratedand road and rail costs are up to 50% or more higher than they would be under reasonableconditions of maintenance. The major tasks facing the transportsector are the rehabilitationand upgrading of road and rail infrastructure,better maintenanceand improvementin railway and bus operationsto meet increasedtransport demand, and reductionof the high cost of providingtransport services.

1.3 Total transport expenditures in the rolling five-year Public InvestmentProgram (PIP) for the 1989-93period are SL Rs 25,911 million (US$648 million),17.7% of total plan investmentsand 13.1% higher than the 1988-92PIP for transport. The major share is for the highway subsector,whose allocation more than doubled from SL Rs 5.0 billion (1985-89)to SL Rs 10.1 billion (1989- 93), while the railwayshare nearly doubledfrom SL Rs 5.2 billion (1985-89)to SL Rs 9.0 billion (1989-93). In the PIP, highways account for 40 of total transportexpenditures while the share for the railwayis 35%, and 25% for other modes.

B. TransportInstitutions. Planning and Coordination

1.4 Responsibility for administrationof the transport sector is dispersedamong a number of ministriesand agencies. The Ministry of Transport and Highways (NTH) is responsiblefor all mattersconcerning roads and railways throughthe Road DevelopmentAuthority (RDA)and the Sri Lanka Railways. RDA is responsible for the planning, design, construction and maintenance of the national road network while the ProvincialCouncils and local governmentsare entrustedwith the responsibilityof the provincialand local road networks respectively.The Ministryof Trade and Shippingis responsiblefor shippingand port operations,while air transportis under the umbrella of the Ministry of Defense. The Ministryof Finance (MOF) and the Ministry of Planning and Policy Implementation(NPPI) are responsiblefor planningand fundingall Governmentof -2-

Sri Lanka (GOSL) investments, as well as the task of coordinating transport investments and policy.

1.5 The transport sector is gro tg larger and more complex, and there is a need to coordinate the competing d, .knds xor its development. Transport funding has not been spread evenly, with costly duplication in some areas, underfunding in others and investments not always oriented to least-cost solutions. Planning has not in practice been carried out with emphasis on comparison of alternatives or engineering and economic flexibility, and there has been limited coordination. There has also been a tendency to spread limited funds thinly over various modes and various works in a particular transport mode.

1.6 Following the completion of a Transport Sector Planning Study (TSPS) in 1988 with IDA assistance, Government was determined to improve transport planning and coordination, including intermodal linkages. With IDA's support, the Interministerial Committee for Coordination and Planning of Transport (TIC- CPT) was established in NTH, which is now carrying out a reorientation cf ..e transport system with the aim of making it more efficient (para 1.16).

C. Sector Obiectives

1.7 The Government's overall objectives for the sector which are supported by IDA are to: (a) develop an integrated approach to development of the transport system; (b) improve operations and management of major transport modes; (c) accelerate completion of ongoing projects and programs; and (d) implement only those programs with external financing which would help improve the overall efficiency in national (trunk) networks. These are reasonable objectives--particularly in view of the difficult economic conditions and the scarcity of budgetary resources for recurrent and capital costS over the next few years.

D. The Transgort Svstem

1.8 The main mode of transport within Sri Lanka is the highway system, with railways a distant second. Other modes of transport--air and coastal shipping- -play only a minor role, and a short pipeline is used to transport crude oil from the oil berth at Colombo Port to the nearby petroleum refinery. Several Government agencies and cooperative societies also operate a significant number of trucks on their own account. Principal passenger and freight statistics are shown in Table 1.1 and the main modes are discussed below.

(a) Road Transport

1.9 The road system in Sri Lankacomprises a well-traced network of roads totalling about 97,400 km (approximately 30,750 km paved or bitumen surfaced and 66,750 km graveled or unpaved). Road transport is the most importtnt mode in Sri Lanka's economy accounting for about 82% of total freight and carrying 85% of total passengers in 1989. The road freight transport industry is unregulated (no business licensing, no tariff regulations), and hence pricing is subject to market forces and local circumstances. Trucking is mainly privately owned with small operators predominating; the remainder is owned by Government departments, public corporations, cooperative societies and agricultural estates operating for -3-

"own account." Liberal importpolicies enacted by GOSL in 1977 helped transform the road freight transportfleet whichwas old and run-down due to restrictions on import of vehicles, spare parts and materials. Four-wheelvehicles are now imported freely and new vehicle registrationshave almost tripled since 1977. Vehicle registrationsin 1980-88are shown in Table 1.2. The total number of active commercialvehicles--buses and trucks--in1988 is estimated at about 117,300units which represents20.0% of the tctal active vehicle fleet for all classes of vehicles.

1.10 Until 1979, passengertransport was the monopoly of the Sri Lanka CentralTransport Board (SIOTB)and the RegionalTransport Boards (RTBs). Since then, however,private passenger transport operations have been allowed and are capturing an increasingshare of the market. Their operation is regulated throughvehicle inspectionand tariffceilings. In 1988, the servicesof public and private buses (a fleet of about 37,000) spanned the entire country. The publicly-ownedbuses have operatedat a loss in each year between 1976 and 1988. The reported losses have increasedrapidly, primarily because of the effect of competitionfrom private sectotbuses. A significantproportion of the loss is attributableto the operationof uneconomic routes and level of service, and concessionaryfare reductionsprovided as social obligations. In 1939, GOSL embarked upon the implementationof a scheme to convert public bus transport operations to private ownership and management. IDA has supported this initiativewhich is taking place during a period of increasedpassenger traffic as a result of the improved civil stabilityin the country. A more detailed discussionof the road transportsector is given in Chapter II.

(b) RailxaXs

1.11 Sri Lanka Railways has a total route length comprising1,500 km of broad gauge track and the KelaniValley Line, which is a 59 km sectionof narrow gauge track. The railwayis diesel poweredbut the availabilityof locomotives has been poor due particularlyto lack of spare parts. The rolling stock is mostly very old and availabilit;is very low due mainly to low productivityof workshops and poor and deficientmaterials supply and repairs. In 1988, the railway system transportedsome 1.2 million passengers and 117,000 tons of freight,compared to about 2.7 millionpassengers and 20,000 tons of freightin 1989. The railway has steadily lost modal superiorityand its poor operating performancehas resulted in mounting financiallosses which are an increasing drain on treasuryresources. GOSL is fully aware of its iraibilityto continue financingoperating losses of the railways. With IDA assistance,it is revising its operating and marketing strategy, rationalizing its rolling stock, reformulatingits overallinvestm-eit plan and institutingan improvedoperations and maintenanceprogram.

(c) Ports and Shipoing

1.12 The Sri Lanka Port Authority (SLPA), established in 1979, is responsiblefor all port managementand operations. Since that time, SLPA has been able to streamlineport operationsand efficientlyhandle increasingtraffic at Colombo. Containertraffic through Colombo has increasedfrom 7,500 Twenty- foot EquivalentUnits in 1978 to over 400,000 in 1988. The large Increase in containertraffic has been due to the introductionof a regular service to the United Kingdom and transhipmentin Colombo. Due to space limitationsat the -4-

port, containerfreight stations have been establishedin the vicinityof Colombo to handle domestic and transhipmenttraffic. As container and transhipment trafficcontinue to increase,SLPA is exploringthe possibilityof revitalizing the existingnatural ports at Galle and Trincomaleefor future expansion.

(d) Aix IIInfi2Z=

1.13 Nearly all passenger traffic to and from Sri Lanka is by air, includingsignificant tourist traffic. Since 1977, passengertraffic has grown steadily to about 1.5 million passengersand 30,000 tons of freight per year. Passengerand freightvolumes are expectedto increaseto 5.0 millionpassengers and 70,000 tons per year by 2000. The only internationalairport operatingat the presenttime is the ColomboInternationa. Airport at Katunayake,32 km north of Colombo. It is servedby an access road from -he Colombo-NegomboRoad and by a rail spur from the Colombo-Puttalamline. The -port is locatedclose to the center of industries producing light manufactutxng goods suitable for air transport. The airport is well equipped to handle all types of aircraft,and during 1989-90a new passengerterminal with a 42,000 ton capacitycargo building and a 5,'40 sq.m. floor area maintenance complex 1- ame operational. The nationalcarrier, Air Lanka, was createdin 1979 to re.I -e the unprofitableand now defunctAir Ceylon, and offers internationalservice in the region and to Europe. Largely due to aggressivemarketing and fare policies,Air Lanka has sustained a 60% load factor, and operates a fleet of four Lockheed L-1011 Tristars and one Boeing 737 aircraft. It flies to 22 destinations in 19 countriesin Europe,the Middle East, the Indian sub-continentand the Far East.

E. IDA's Sector Role and AssistanceStrategq

1.14 Developmeni:of an efficienttransport sector in Sri Lanka has long been an objectiveof Governmentpolicy, which IDA has encouraged. IDA supported the establi.-mentof the IMC-CPT in 1984 and has provided assistance to its TechnicalSecretariat to analyzemajor institutionaland policy issuesaffecting the sector. The first credit for a highwayproject was approvedby the Board in 1968, but it was subsequentlycancelled as the Governmentwanted to change the project approach and scope. The next operationwas in 1979, when IDA approved the first Road MaintenanceProject (Credit 900-CE), which became the turning point in IDA's dialogue with Government on highways (PCR No. 8000 of August 1989). In March 1980, IDA approved Credit 994-CE for the Road Passenger TransportProject (PCR No. 8011,August 1989). The proje!~tcontributed to policy reforms which helped remove many restrictionsthat had precluded private bus operationsin the past. It also demonstratedthe complexitiesand inefficiencies of the public sector agencies operatingbus fleets. The lessons derived from this project have been used as a basis for preparation of other transport projects. The ongoing Second Roads Project (Loan 2517-CE,April 1985), builds on the objectives of the earlier two projects. To date, progress has been satisfactory. Although some procurementand contract administrationproblems still persist,these problemsare being resolvedthrough close coordinationwith RDA. The EmergencyReconstruction and RehabilitationProject (Credit1883-CE, approvedin March 1988), is to financesome road reconstructionin selectedareas in the north and northeastwhich had been damaged during the country'scivil unrest. This projecthas disbursedslowly becausecivil disturbanceshave been protracted;as the politicalsituation stabilizes, we expect disbursementsto -5-

graduallyimprove. Under the EconomicRestructuring Credit (CreditNo.2128-(OE, May 1990),Government-owned bus operationsare in the processof being privatized to make them commerciallyviable. Deregulationof bls fares has been agreed and discussionshave been held for the establishmentof a transport regulatory authoritywith powers to enforce safety standardsto control operationsof new or additionalservices.

1.15 Although the.e have been mixed results in previous projects, in retrospect,it is clear that they helped bring about fundamentalchanges and enc.ouragedGOSL to experimentwith new solutionsto transportproblems. They also focussed the operationsof RDA on maintenanceand rehabilitationand away fr-m new construction. The informationgather 4ng and technicalcapabilities of RDA have improved and the results have been incorporatedinto the proposed project and RDA's work plan for the next five years. Severallocal contractors and consultantshave enteredthe road sector as a result of experiencegained on previous projects and it is expected that some will consolidatetheir position by competingfor contractsin this project. A pavementmanagement system being establishedunder a project fundedby the Asian DevelopmentBank (ADs)will also assist in the long-term sustainabilityof the benefits accruing from these projects (para 2.16).

1.16 The proposedproject would complementthe previousroad projectsby emphasizingrehabilitation and maintenanceof national roads (excludingroads under the jurisdictionof provincesand districts). From 1981-1989Government has invested SL Rs 20.7 billion in the transportsector of which SL Rs 6.0 billion (29%) were allocated to Highways (Table 2.2). The Government's allocation for the transport sector from 1989-1993 is SL Rs 25.9 bill-on. Preliminaryanalysis suggests this amount could be reduced to about SL Rs 20.0 billionas the public investmentprogram currently includes allocation for buses which are being privatized. Further,indications are that highway'sshare should be increased to 50% of the t0- l allocation compared to 40% under the Government'splan. An IDA TransportSector Review with emphasis on transport investment planning, improved policy and better intermodal coordination is currently under preparationwith the assistance of IMC-CPT. The Review is expectedto lead to a projectwhich would complementthis proposedproject. Its focus would be on railways, buses, and traffic management in metropolitan Colombo, and on reforms neces-ary to improve the overall efficiency of the respective subsectors. Apart from IDA support for road infrastructure maintenanceand rehabilitation,ADB, Japan'sOverseas EconomicCooperation Fund (OECF) and the United Kingdom'sOverseas DevelopmentAdministration (ODA) have supportedother road rehabilitationand improvementprojects. Investmentsare being coordinatedbetween IDA and other donorsthrough regular donor coordination meetings.

II. THE ROAD SUBSECTOR

A. The Netrk

2.1 Comparedto other countriesof South Asia, Sri Lanka has a relatively extensiveand well-developedroad network, which evolved largely to serve the needs of plantationsby bringing their produce to the ports. Presently Sri -6-

Laika'soverall road netvork totalssome 97,400km, including30,750 km of paved roads; the remainingroads are gravelor earth. The nationaltrunk road network, under the responsibilityof RDA, is in place and consistsof about 10,440 km of paved roads, or 11% of the total. Responsibilityfor roads outside the domain of RDA is vested in ProvincialCounc~ils (16%) and local governments(53%). About the 20% are the responsibilityof specializedagencies such as the Sri Lanka PlantationCorporation, Irrigation Department, Forest Department,etc. In the most populousand prodt.._tiveregions of Sri Lanka,paved roads accountfor 6% in tna northeasternprovince, 6% in the western province (includingColombo), and 5% In the centralprovince (Table 2.1). The public road networkhas a density of about 1,200 km per 1,000 sq.km of land area and 4.7 km per 1,000 population, one of the highest in ssia.

2.2 Mosc roads were built many years ago and have since had few improvements;over time, roadsidedevelopment has encroachedinto the original right-of-wayover long sections. A number of bridges are structurallyunsound as well as too narrow for -raffic,and there are lengthsof highway throughout the countrywhere pavementfailure is imminent. Maintenanceof both pavementand bridges has been insufficientfor a number of years. These factorscombine to cause low average traffic speeds, high operatingcosts and dangerous traffic conditions. The road network now requires sound maintenanceand substantial rehabilitationto prevent further seriousdeterioration.

2.3 A major road conditionsurvey carriedout in 1986 revealedthat most of the national trunk routes were structurallysound and the surface condition of 49% of the pavementswas rated as bumpy (3,500to 5,000 mm/km) to very bumpy (over 5,000 mm/km). However,pavement width of most major roads was inadequate with deterioratededges and shoulders. The survey also indicated that even allowingfor the differencebetween the presentand designyear traffic,it would seem that 90 to 95% of the main road networkwas too narrow for current traffic volumes. Also due to inadequatemaintenance, drainage of roads was inadequate which resultedin pavementfailures. In addition,weak and sub-standardbridges further diminish the usefulness of many existing roads. Although no comprehensivenationwide data has been collected,there is sufficientevidence from projectroads that their conditionhas deterioratedsignificantly since the 1986 survey was conducted. Budgetary allocationsfor maintenancehave been decreasing in real terms during the last several years due to the economic downturn,and events associatedwith civil unrest have affected the roads and bridges in many areas. These, coupled with outdated and cost-ineffective maintenancepractices, resulted in road authoritiesnot being able to keep up with maintenancerequirements and a substantialbacklog has accumulated.

B. Traffic

2.4 Trafficlevels in Sri Lanka reflect the country'svarying levels of economic activityand populationdistribution. Typical intercityroads carry between 500 and 4,500 vehicles per day (vpd) while roads in and around Colombo and other major towns carry trafficloads as high as 12,000 vpd.

2.5 The motor vehiclefleet in June 1988,as estimatedby the Department of Registrationof Motor Vehicles, totalled about 492,4G0 made up of about 149,000cars, 226,100motorcycles, 80,500 trucksand 36,800buses. In addition, -7-

there are some 94,000other typesof vehiclesincluding land vehiclesused mainly on tea, rubber and other agriculturalestates. Between1980 and 1988, the number of motor vehicles in the country increasedat a rate of 8.4% per annum (Table 1.2). Although the rate of growth slowed somewhatduring 1986-87to about 2.6% per annum, the currentvehicle fleet is equivalentto an averageof 29 vehicles per 1,000 persons.

2.6 Current vehicle weight regulationsin Sri Lanka are specified on gross vehicleweights for certaintypes of vehicles,but not specificallyon axle loads and the limitsare somewhatinconsistent. Enforcement of the limits is the responsibilityof the trafficpolice who, because of understaffingand lack of resources and equipment, provide only sporadic coverage. As a result, overloadingof trucks is commonplace,causing accelerated pavement deterioration and, in a number of cases,premature road failure. In order to identifymeasures to correct this situationwhich is causing the road network to deterioratevery rapidly, the project would finance a study on road materials, design and constructionstandards; and on road user charges (para 3.10).

2.7 The continueddeterioration of the road network combined with the growth of trafficvolumes and densities,have caused the frequencyand severity of accidents to increase significantly. While many of these may result from driver error or lack of compliancewith traffic regulations,many are due to substandardand dangerouspavement and roadsideconditions. The Governmenthas recognizedthe need to make the necessary improvementsthrough an accelerated rehabilitationprogram of the national network, and these efforts would be expandedunder the proposedproject. Appropriatemarking, signs, load control and speed limit posting and alignment conditions will be introduced for all project roads and associatedstructures.

C. Administrationand Orsanization

2.8 For a long period,GOSL activitiesin roads were carriednut by the PublicWorks Department. In 1969, the road and buildingfunctions were separated to form the Department of Highways and a BuildingsDepartment. In the period 1970-1978,they were combinedand placed under the Ministryof Irrigation,Power and Highways,which acted as an .Jministrativeand planringbody. Construction and maintenancework relating to roads was carried out by other departments within the same ministrywhich also dealt with irrigationand power projects. GOSL policy at that time did not favor the private sector,and thus practically all work was done by force account through Governmentagencies, namely, the State Development and Construction Corporation which undertook bridge construction;the TerritorialCivil EngineeringOrganization which maintainedthe road network; and the Depertment of Machinery and Equipment which procured, allocated,operated and maintainedall plant, vehiclesand equipmentfor roads, bridges, irrigationand pover through their central and regionalworkshops.

2.9 In 1981, GOSL enacted the Road DevelopmentAuthority Act No. 73, settingup the RDA under the controlof the Deipartmentof Highways. It functions as a parastatalagency, and is advisedby a Road DevelopmentAdvisory Board. On January 1, 1986, RDA was placed under the MTH, and its activitieswere expanded by the transferof responsibilitiesfrom the Departmentof Highways. This step changed RDA's character from that of a constructionagency to one of an -8-

organizationresponsible for the overallcontrol of tne nationalroad networkand entrusted with: (a) studying and analyzing all road needs; (b) planning, investigationand fo'.-uOationof road investment programs; (c) recommending investmentprioritie ?ne preparingdevelopment plans; (d) maintenanceof and improvementsto exit-t - ads,bridges, causeways, and culverts;(e) design and constructionof roo 4iA associatedstruttures; (f) carrying out traffic and other studies leadirg to appropriate specialist advice in connection with operationalaspects of xhe road network;and (g) carryingout continuingresearch and developmentof proceduresand techniquesfor the economicaland efficient construction,improvement and maintenanceof the network.

2.10 In 1987, GOSL apparentlyconcerned with the pressing need for more maintenance,created a privatecompany- -the Road Constructionand DevslopmentCo. Ltd. (RCDC) out of RDA's prevlousWorks Department. When RCDC is acting as a contractorto RDA, full commercialhire rates are chargedfor any RDA plant used by RCDC. RDA operates its own accounts,which are subjectto Governmentaudit, and is able to borrow commerx.iallywith the permissionof MTH.

2.11 Finally in January 1990, a furtherchange was brought about whereby over 15,000 km of Class C, D and E roads were transferredto the Provincial Councils. All major primaryand secondaryroads (ClassesA and B--approximately 10,440 km) remrin the responsibilityof RDA. Hence, with the exceptionof the more difficultperiodic maintenance/rehabilitation, all physicaloperations are undertakenby externalorganizations. GOSL expects that the splitting of all minor road design,construction and maintenancefrom planning,engineering and rehabilitationwork on the major trunk routes will introduce flexibility, encourageefficiency, and improveoverall performance and value-for-money.

2.12 The presentmanagement structure of RDA is detailed in Annex 1, and illustratedin Chart 1. The Board of Directorscomprises ten members; five are appointedby the Ministriesof Transportand Highways,and five others who are appointedby the Ministerof Highways (2),Transport (1), Finance (1), and Power and Energy (1). The Chairmanis responsiblefor generaland technicalpolicy and decision-makingas Chief ExecutiveOfficer, and the GeneralManager is in charge of the generaland technicaladministration of the Authoritythrough assistance from eight specializedfunction directors(Annex 1).

2.13 Under the present structure, the State Minister of Highways can empowerRDA to carry out within its area of responsibility,many of the functions previouslydone by the Departmentof Highways. The differenceis that RDA can charge fees for its servicesand can fix the wages, salariesand conditionsof serviceof its staff, permittingsuch additionaladvantages as field allowances and free transport. In thisway, RDA can offer incentivesto qualifiedengineers not availablewithin civil service regulations.

2.14 Despite the incentiveswhich RDA can offer staff, however, it has experienceddifficulty in recent years in maintainingits effectiveness. The problem of retaining key staff and employing new qualified and experienced engineers (coupledwith the continuingreorganizi.ag activities) have left the institutionin a state of flux, lackingan entrepreneurialapproach to executing work in a highly structuredbureaucracy. Morale and motivationare perceivedas hePng low and the Authority suffers from a continuing drain of staff to the private sector and to other countrieswhere salariesare many times higher and -9-

prospects better. The civil unrest in recent years has also impinged on the ability of RDA to carry out its functions. However, the recent stabilizing trend, coupled with support from external donors in terms of technical assistance,signals medium to long-termoverall improvement. Undoubtedly,the Authority is moving in the right directionwith the help of multilateraland bilateral assistance.

2.15 With projectsundertaken by RDA increasingin numberand growingmore complex, there is a need to strengthenRDA's expertisein contractmanagement. Whereas RDA's staff may be competentand capable,some give the impressionof being stretched beyond their limit due to the number of projects they are required to manage. The outcome is that the ConstructionManagement and Contracts Division (CM&C) of RDA, which is responsible for donor-financed projects,must resort to the servicesof externalconsultants. However, these services at times are utilized in an inefficientmanner as day-to-daycontract managementpressures increase. The proposed project provides for on-the-job training and provisionof specialistadvice to CM&C staff (paras 3.9 and 3.14).

D. Plannins.Desian and Construction

2.16 PlanninL and Desinn: Planning,design and project appraisal are handled in RDA by the EngineeringServices Division. The division has five sections,i.e., trafficplanning, highway and bridge design,bridge assessment and land acquisition/publicservices. Planning is mostly for maintenance, rehabilitationand improvementworks as in the last severalyears no major new roads have been built, apart from a few bypasses and access roads to new developments. The division is responsible for identifying,analyzing and justifying all road projects on the basis of updated traffic forecasts,road condition surveys and an analysis of road capacity. In the absence of axle loadings,updated constructioncosts or vehicle operatingcosts, the appraisal of a project does not undergo a rigorous technical and economic analysis. Generally, a technical report is prepared and submirted to MOF/MPPI for its considerationso that projects can be approved and included in GOSL budget estimates. The division recently received a second ADB technical assistance grant under which an expatriatejoint venture would develop and implementa computer-aideddesign and pavementand bridgemaintenance management system (para 1.15). This work will complementthe activitiesunder the proposedproject and no funds for similarwork are required.

2.17 Designsfor roads and bridgesare carriedout by RDA--either directly or by employing consultants. The design standards and criteria used are generallysound and adequate for conditionsin Sri Lanka, although past road designshave been based on low axle-loadparameters, lesulting in under-designed roads. RDA has established geometric design criteria and these refer to desirablemaxima and minima for the various road elements. Because design work is almost exclusivelyfor rehabilitationand improvementof roads and associated structures,use of these criteria may not necessarilylead to optimum use of scarce resources. They are also inconsistentlyapplied in order to meet prevailing site conditions which, in some instances, may affect driving conditionsand safety. -10-

2.18 There has been a vast improvement over earlier standards, specifications, and rehabilitation practices, during the preparation of the proposed project. Nonetheless, they may not be fully applicable to locally available materials and methods, and there is a need for a comprehensive review and a consistent set of standards, specifications and practices to be established to foster economically optimal solutions with full regard to local conditions. Under the technical assistance component in the project, a study to achieve this objective will be made within the first two years of project implementation (para 3.10(c)).

2.19 Construction: Major road and bridge construction, maintenance/ rehabilitation and improvement work in Sri Lanka is financed by foreign aid and is carried out by contractors under the direction of RDA's CM&C. The Director of CM&Cis usually nominated as the Engineer. Smaller works are mostly executed by local contractors under the direction of CM&Ceither directly or through RDA's district offices. Minor construction, maintenance and rehabilitation works are normally entrusted to the district offices under force account, using their own staff resources but contracting out for the provision of materials and equipment. Most paving and periodic maintenance is performed by the RCDC on the basis of RDA's schedule of rates.

2.20 The relationship between client, engineer and contractor needs to be clarified in RDA, especially CM&C. The workload of CM&Cis heavy but a significant part of that load stems from its role as the Engineer. When works are supervised by qualified consultants, local or foreign, they should be nominated as the Engineer; this would not only reduce the workload on the CM&C's staff, but more importantly, would also dispel the image of conflict of interest. This would enable supervision teams to be formed in a timely manner and entrusted with a wide range of responsibilities in order to enhance CM&C's decision-making process during contract management.

2.21 The local private contracting industry has been improving steadily in recent years and many large and small contractors now ean compete in the sector. RDA is committed to supporting local contractors and leases equipment to them to enable them to compete better; OECF recently supported this activity with a loan for acquisition of major road equipment. Nonetheless, not all of the companies have the required competence, capacity and financial resources to properly compete with foreign contractors who usually win the larger and more lucrative contracts. The local industry is also constrained by lack of continuity of work due to the dominance in recent years of RCDCwhich enjoys a healthy portfolio of projects (para 2.10). In order to enhance the competence of the local contracting industry and to create a competitive environment in the sector, the proposed project provides for a study on the local contracting industry to be undertaken and completed during the first two years of the project (para 3.10(b)). The purpose of the study would be to investigate current practices, identify constraints and recommend measures and actions required to encourage wider involvement of local contractors in the economic development of the country. -11-

E. Road Expendituresand Financing

2.22 Construction,rehabilitation, and maintenanceof the primary and secondarytrunk routes (ClassA and B) is the responsibilityof RDA. In addition to the 10,440 km national road network, RDA will continue to look after some 3,062 bridges, although no inventory of the latter is kept and no up-to-date conditiondata is available. All of RDA's roads are paved, but due to lack of proper maintenance,pavement edges and shouldershave been deterioratingand inadequatedrainage is causing pavement failure. The remaining roads in the network are the responsibilityof provincialand local governmentsand other agencies. It is expectedthat the ProvincialCouncils (PCs)will organizetheir activities after RDA's model when the transfer of some 1,100 RDA staff, equipmentand facilitiesis completed(para 2.11). At the time of appraisal, this decentralizationwas still underwayand an assessmentof the result could not be carriedout. However, dependingon the capabilityand motivationof the PCs, coupled with adequatebudgetary allocations, this new structureis likely to respond to local prioritiesmore effectivelyand bring about an improvement in construction,rehabilitation and maintenance. It is likely that RDA would be required to continue giving minimal technical support to the PCs during the initialphase of the transfer.

2.23 Althoughannual allocationsfor road expendituresappear to be high, they do not cover the needs of the network and budgetarycuts are common. For example,while the allocationfor 1989 was SL Rs 2.86 billion (Table2.3), actual expenditureswere SL Rs 1.27 billion--the resultof cuts in the budget. This has resulted in substandardmaintenance on some more heavily-travelledroads and bridgesand total lack of maintenanceon others. Financialconstraint& have also compelled RDA to allocate large portions of its budget to the more visible rehabilitation,improvement and new works, thus leavingfew resourcesfor routine and periodictdaintenance. Recent studies indicatethat about SL Rs 5.0 to 7.0 billion would be needed annually to arrest the decline of the road network and to raise it to a maintainablestate. In the current environmentof limited resources,such levels are unlikely to be available,thus putting a premium on prioritization.

2.24 RDA's proposedfive-year expenditure program for 1990-94(Table 2.4) allocates 87% of projected expendituresto maintenance, rehabilitationand improvementof the existingnetwork and 13% to new capital works. About 55% of funds will be contributedby externaldonors (includingIDA under the proposed project). What appearssignificant is the notable increase in expendituresfor maintenanceand rehabilitationcompared to those during previous years (Table 2.3). As ongoing road projects wind down, an increasedallocation for future works appears to be within the Government'sfiscal capability. Under the proposed project,RDA is expectedto preparean action plan which will identify the variousroad sections,the type of treatmentproposed, and the corresponding allocations needed over the years to meet milestones 2roposed. During negotiations,agreement was reachedwith GOSL that an annual action plan will be furnishedto IDA (by September30 of each year) which will reflect sufficient budgetaryallocations for RDA and other agencies (for relocationof utilities) to ensure that servicesand resourcesfrom agenciesof the Government,including RDA, will be forthcomingduring project implementation. The Governmentalso undertook to amend the counterpartfunding allocationsto the project in the -12-

1990-1994Public InvestmentProgram, in keeping with the agreed implementation schedule, and to allow for counterpartfundirg in the order of SL Rs 100.0 million for FY91, SL Rs 130.0million in each of FY92 and FY93 and SL Rs 120.0 million for FY94.

2.25 Funding for road expendituresis derived from a number of sources, with the road maintenanceand rehabilitationprogram financed through the GOSL's development/recurrentbudget. Generally,the policy of the Governmentis to supplement a large share of the budgeted road expendituresthrough external donors. GOSL's contributionderives from the revenues from road user charges: fuel taxes; import duties and turnovertaxes on vehicles,tires and parts; and license fees. Due largely to increasedvehicle imports since 1977, road user revenueshave been comfortablyabove GOSL's expenditureson roads by an average of about 40%. The 1988 TSPS estimatedroad user charge revenuesat about SL Rs 5.2 billion (based on a crude oil price of US$15.0 per barrel). The effective taxes on fuel accountedfor 76% of the user revenues,while import duties and taxes on vehiclestogether comprised about 16% of total revenue. Annual licenses and other fees, although minor in proportion to fuel revenues, were quite substantialwith a total of SL Rs 330 million. In the absenceof true costs for road works, road user revenuesappear more than sufficientto financeadequate road subsectoractivities. While it may not be necessaryto raise the overall level of such user charges, the TSPS indicatedthat the distributionof these charges by vehicle type, coupled with rocketing costs for construction, rehabilitationand maintenance,may be inequitableand need revision. A Road User ChargesStudy, financedunder the projectwould help the Governmentto gain a more comprehensivepicture of the coverage of road expendituresby the road network users (para 3.10 (a)).

III. TRHEPROJECT

A. Backtound

3.1 The proposed project grew out of GOSL's medium-term investment program for roads covering the period 1987-92, approved by the Government in 1988. Preliminary discussions on a transport project, covering several subsectors,were held in 1987, consistentwith the thrust of GOSL's development goals and objectivesin the sector (para 1.7). It was concludedsubsequently that roadsshould be de-linkedfrom other transportinvestments and separateroad and transportprojects were identified.The presentproject aims to rehabilitate major trunk roads in the west and southwest of Sri Lanka, and complements projects financedby ADB and ODA in the northeast,central and easternpart of the country. The projectalso includesa componentto rehabilitateroads damaged by floods and landslideswhich occurred during May and June 1989. The project was prepared with an Advance of US$165,000 from IDA's Project Preparation Facility (PPF) in January 1988,and a supplementalAdvance of US$175,000in June 1989. Preappraisaltook place in January 1990 and appraisalduring April/May 1990. At the time of appraisal,final engineering designs were availablefor 200 km of roads and six bridgeswhich representabout two years of the project'swork program. -13-

B. Prolect Objectives

3.2 The project'sobjectives are to:

(a) facilitatethe transportof goods and passengersand to reduce the cost and delays associatedwith a deterioratedroad system, by restoringportions of the priority road network and its structures to a maintainablecondition;

(b) assist the Governmentrestore priority road infrastructuredamaged by floodingand landslidesin May/June 1989;

(c) introduce institutional improvements in the planning, design, programmingand implementationof works, and the administrationand maintenance of the road system, and upgrade technical standards and introduceefficient use of availablematerials to achieve greater cost-effectiveness;and

(d) upgradeRDA's capacityto superviseand executerehabilitation works and identify actions needed to develop the local contracting industryto undertakeroadwork contracts as an alternativeto ferce accountworks.

C. Proiect Description

3.3 To achieve the above objectives, the project consists of the followingworks, equipmentand technicalassistance components:

(a) civil works including:

(i) rehabWlitationof about 420 km of primaryand secondarytrunk roads (ClassA and B roads);

(ii) strengthening,repairing, wiVening and redeckingof thirteen bridgesand replacement/reconstructionof an additionaleleven bridges;

(b) urgent repairs, rehabilitationand limited new constructionof roadways, pavements, drains, retaining walls and cross-drainage structures damaged by floods and landslidesduring May and June 1989;

(c) procurement of vehicles, microcomputers, survey equipment, computer software and office equipment to enable the Director, CM&C, his senior staff and consultantsto monitor and control contractsmore effectively;and

(d) consultancy services for design and supervision and technical assistanceincluding three studies on the road contractingindttstry, on constructionmaterials and design standards, and road user charges. -14-

3.4 The locationof the road sectionsproposed for rehabilitationand of the bridges proposed for repair and reconstruction,are shown on IBRD Map No. 22434. These were selectedfrom a largerprogram proposed by RDA on criteriaof obviousrisk of failureand highest economicreturns. The overall scope of the project was limited by scarcity of resources and by the implementing institution'sabsorptive capacity.

(a) &d4 JRehbilitationWorks (USS54.6million)

3.5 Road rehabilitationis plannedfor about 420 km of main and secondary routes in six districts (Gampaha, Colombo, Kalutara, Galle, Matara and Hambantota)in the westernand southernprovinces of the island. Of these, 101 km between Colomboand Galle will be rehabilitatedunder cofinancingprovided by the EconomicDevelopment Cooperation Fund (EDCF)of the Republicof Korea. Road sections have been chosen on the basis of their pavement condition, traffic volumes, and pavement roughness. The resultinglist of road sections and the trafficand roughnessdata are shown in Table 3.1. About 100 km of road sections on primary and 100 am on secondary routes have been reinspected,surveyed in detail and pavementstrength tests have been carriedout to confirm the results of visual inspectionand to calculate the appropriatepavement thicknessand interventionrequired. The work comprisesfull-width surfacing over the entire length to restore structural strength and integrity required for continuous serviceabilityof about 190 km of primary roads, by repairingpot-holes with bitumen-boundmacadam, grading of unpaved surfaces and shoulders,reinstating regularroad-side drainage, side slopesand verges, correctingdamaged road sub- base at pavementedges with dry bound macadam,strengthening and shape correction of pavement or roadwaywith a bituminousregulating course overlay to restore structuralstrength and resurfacingwith asphaltwearing course to restoreride quality on major routes (with averagedaily trafficover 3,500). The remaining 230 km will receivesimilar selective repairs, strengthening and shape correction of pavement and roadway including improvement to longitudinaland lateral drainage. These remainingroads, with averagedaily trafficbelow 3,500, will be surfacedand sealedwith a singleasphaltic concrete regulating/wearing course to restore structuralstrength and ride quality (Annex 2).

(b) BridgeStren_thening. Rehabilitation and Replacement(USS6.2 million)

3.6 Twenty-fourbridges, four of which will be financedby EDCF, have been identified(see Table 3.2 and Map) along the 420 km of road sectionswhere there is a danger of structuralfailure, often due to corrosion of the steel superstructureor reinforcingbars, or where the structuresare weak and so narrow or badly aligned that the bridge constitutesa significantimpediment to traffic. It is proposed that these will be repairedor replaced,usually using precast, prestressed concrete beams. Many of the bridges recommended for replacementare either of the through-trussor deck-trussbridge type. These bridges present serious obstacles to traffic because either they cannot accommodatecontainer trucks or they are so badly corrodedand weak that they are potential locations for disaster on heavily-traffickedroutes. All bridges intendedfor reconstructionare old structureswhich have outlivedtheir useful lives, structuralintegrity having been weakened as a result of high traffic volumesand continuouslyincreasing axle loads. These will be totallydismantled and replacedby new reinforcedconcrete/prestressed concrete superstructures on -15-

new foundations(abutments and/or piers), where necessary. Foundationsstill in good conditionwill be reused and extetidedto accommodatethe wider carriageway (Annex 2).

(c) Road Flood Rehabilitation(USS2.5 million)

3.7 In additionto the six districtsoutlined above (para 3.5), GOSL has requested assistance to help finance works to repair, rehabilitate and/or reconstructroad infrastructurein the Districtsof Kegalla and Ratnapurawhich were damagedas a consequenceof the floods and landslidesin May and June 1989. This componentof the projectwould comprisepriority works of GOSL's programto rehabilitateflood-affected roads and ancillarystructures, and would include:

(i) ReLair. Reconstructionand Limited New Constructionof Protection Works: These works would encompass guide bunds, gabion walls, embankments, channelization,as well as protection of bridges (abutments,piers, wingwalls)and approachesto road embankments;

(ii) Repair. Reconstructionand Limited New Construction of Cross- Drainave Structures: Cross-drainageworks financed under the project would include repairs and reconstructionof small bridges and culverts. New constructionworks would replace structures washed out as a result of floods and landslides. GOSL/RDA have placed a high priorityon the immediaterepair and reconstructionof these structures since associated road sections are closed to vehicular traffic causing substantial inconvenience to road transportand the communitiesthey serve; and

(iii) Repair and Reconstructionof Roads: Trheproject would repair and reconstructselected sections of roads. Road works would include filling of embankmentbreaches and washouts, the repair of eroded embankmentsas well as the restorationof road shoulders and the repair and strengtheningof damagedpavements. Reconstructionwork on road sectionswould also include some limitedwidening of the existing roadwaywhile retainingthe existingalignment within its present right-of-way.

(d) Equiment (USSO.2million)

3.8 To facilitate project management, the project will finance the purchase of three vehicles, computers,printers, a plotter, software, office supplies and equipmentto enable the team to maintain detailedproject records for managementand monitoringpurposes. In addition,the projectwill finance the purchase of some investigationand survey equipment,which will be used by a projectmonitoring unit (para 3.14' for investigationand checkingpurposes on site (Table 3.3).

(e) TechnicalAssistance (USS6.5 million)

3.9 There is an urgent need to strengthenthe office of the Director, CM&C with an advisor,experienced in pavement design/constructionand contract management,who, togetherwith two counterpartsfrom RDA will be responsiblefor -16-

the manaLementand monitoringof the groiect. A total of about 36 staff-months is included in the project at an average cost of US$13,000 per staff-month, includingall allowances,and externaltravel (paras 2.15, 3.14). Design and spervision is estimatedat US$5.2 millionequivalent or 1,630 staff-months,of which approximately230 staff-monthsfor foreigndnd about 1,400 staff-monthsof local consultancyinputs. Of the 1,630 staff-monthsproposed, it is intendedto provideup to 30 staff-monthsat a total cost of US$60,000 to be retroactively financedunder the project, in order that work on preparationof final designs and contract documentscan be expedited(para 3.15).

3.10 In addition to the two consultanciesoutlined above, three studies have also been agreed:

(a) Road User Charges: This study will update and refine information and analysis of road use costs and revenues containedin the 1988 TSPS. The objective of the study is to determine the extent of present distortionsand the reformsneeded to correct them. Terms of Reference are shown in Annex 3, and consultants are to be appointedby April 15, 1991.

(b) Domestic Road ContractinnIndustrv: The study will investigate currentpractices, analyze constraintsthe industry is facing, and recommend an action plan of measures for its development by introducinLginternational practices into the industry. The consultantswould identify the changes needed to develop a more efficient operationto permit members of the domestic contracting industry to' contributemore to the economic development of the country, and to increase the benefits to Sri Lanka generated by constructionprojects being preparedor implementedthrough foreign assistance. Terms of Reference are shown in Annex 4, and consultantsare to be appointedby May 15, 1991; and

(c) Road Materials.Desimi and ConstructionStandards: This study would define,compare and recommendimproved standards and specifications suitable for locally available materials and techniques. The consultantswould inventorymaterials which can be economicallyand efficientlyused in road constructionand maintenanceand develop pavement constructionand maintenancetechniques which would make optimal use of local materials and minimize costs. A unified set of road construction and maintenance standards (geometric and other essential parameters) would be prepared as well as technical guidelinesand manuals for pavement structuresfor RDA. Terms of reference are under preparation by RDA, with appointment of consultan:sexpected by September30, 1991.

IDA and GOSL would review the conclusionsand recommendationsof these studies and developrevisions of prevailingpractices under detailedaction plans. The datets of appointment for consultants and for the implementation of recommendations resulting from these three studies were agreed during negotiations. -17-

D. Cost Estimates

3.11 Projectcost estimatesare shown as a summaryin the followingtable, with details given in Tables 3.4 through 3.6. The total cost of the project is estimatedat US$70.5 million equivalentof which US$40.3 msillionequivalent or 57% is foreign exchange cost and US$30.2million equivalent,or 43%, is local cost (LncludingUS$8.3 millionequivalent for taxes and duties). Cost estimates are in April 1990 prices and include physical contingenciesof 5% for road rehabilitationworks (for which rinal engineeringdesigns have been completed) and 10% for all remainingpackages to be designed. Similarly,a 10% physical contingencyallowance has been made for all bridges for which final designsare completedby RDA, while a 15% physical contingencyhas been applied to bridges yet to be designed. A 10% physicalcontingency has been allowedon the works for the road flood rehabilitationprogram. To provide for inflationduring project implementation,the following inflationvalues have been used in calculating price contingenciesfor local expenditures: 12% for 1990, 10% for ;991, 8% for 1992, 7% for 1993 and 6% for 1994,4% for 1995 and 3.7% for 1996 and thereafter; for foreign expenditures: 4.9% for 1990 through 1995 and 3.7% for 1996 and thereafter.

8L Rs million USS Million S X Total Cmonent Foreign B"e Local Foreign Total Local Foreign Total E -xchse Cost

Roads 737.2 1,018.1 1,755.3 18.43 25.45 43.88 58 76 BrLdges 99.1 99.1 198.2 2.48 2.48 4.96 50 9 Flood Rehabilitation 67.2 22.4 89.6 1.68 0.56 2.24 25 4 Equipnt S.8 3.8 7.6 0.10 0.10 0.20 S0 I Technical Assistance Project Support 92.3 96.4 188.7 2.30 2.41 4.72 51 8 Policy Development 6.3 25.2 31.5 0.16 0.43 0.79 80 1 P7 0.0 20.0 20.0 0.00 O.S0 JO.S0 100 I

Total Base Cost 1,005.9 1,285.0 2,290.9 23.15 32.13 57.28 56 100

Contingecieat Physical 85.7 101.8 187.5 2.14 2.55 4.69 54 8 Price 327.1 510.1 837.4 2.89 5.66 .8.55 15

Total Contingen. 413.0 611.9 1,024.9 5.03 8.21 13.24 62 23

Total Cost 1,418.9 1,896.9 3,315.8 30.18 40.34 70.52 57 123

3.12 The estimatedcost of contractworks is based on unit rates developed by RDA and their consultants.These reflectupdated cost experiencefor similar works in the SecondRoads Project (Loan2517-CE) and other recent contractworks and on interviewswith contractorspresently carrying out similarwork.

E. ProjectFinancinm

3.13 An IDA credit of SDR 30.6 million (US$42.5million equivalent)is proposed to finance about 68% of total project cost, net of taxes and duties. EDGF has agreed to provide financingof US$14.5 million for the Colombo-Galle Road componentof the project, for 20 years, with five years of grace at 3.5% interest. A Loan Agreementbetween GOSL and EDCF is expectedto become effective by March 31, 1991. GOSL will provide US$13.5 million or about 19% of total -18-

projectcost. The Governmentwould pass on the proceedsof the credit to RDA as budgetaryallocations for the agreed sub-projects. It was agreed that works on five bridges, selected urgent flood rehabilitationworks (before the next monsoon), and final engineeringdesigns of the road sections in the first contract to be financedby IF should start immediately. It is estimatedthat the cost of these activitics, including the initial cost of setting up a monitoring unit would amount to about SL Rs 81.2 million (US$2.0 million equivalent). Therefore,to enable GOSL to begin these activities,retroactive financingin an amount not exceedingUS$1.5 million equivalent,or 3.5% of the credit, is proposed for expendituresincurred after March 15, 1990. During negotiations,agreement was reached with the Governmenton the financingplan outlined below, and assuranceswere received on GOSL's commitmentto meet its share of local costs, includingpossible overruns.

FinancingPlan (US$ million)

GOSL I EDCF Total

Road Rehabilitation 11.9 31.3 11.4 54.6 Bridge Rehabilitation 1.2 3.1 1.9 6.2 Flood Rehabilitation 0.3 2.2 - 2.5 Equipment 0.1 0.1 - 0.2 TechnicalAssistance Project Support 4.5 1.2 5.7 Policy Development 0.8 - 0.8 PPF _0 -A0 TOTAL 13.5 42.5 14.5 70.5

F. Imnlementation

3.14 The project will be carriedout over an eight-yearperiod and will be completedby December 31, 1997, with RDA as the executingagency (Chart 2). The Directorof CM&C will have overall responsibilityfor execution;however, a Project Management and Monitoring Unit (PMMU) will be established at its headquartersto be headed by an advisorand two deputy coordinators,who will be assigned by RDA and who will be responsiblefor road ccntracts and bridge contractsrespectively. The PMKU advisor (termsof referencein Annex 5) will be an expatriate engineerexperienced in pavement design and constructionand contractmanagement. He will provideon-the-job training to RDA staff,and will be answerable directly to the Director CM&C and through him to RDA's higher management. This core team will review designs, prepare tender documents, evaluate tenders, ensure timely letting of contracts for civil works and technicalassistance stu.- Jes, monitorprogress and costs and keep a tight control of the project budget. Establishmentof the ProjectManagement and Monitoring Unit within RDA. and the apnointmentof the expatriateAdvisor and of the two RDA counterpartstaff acceptableto IDA is a conditionfor credit effectiveness.

3.15 In order to ensure close supervisionof the contractsand compliance with specified rehabilitationmethods, RDA will appoint (by April 30, 1991) supervisingconsultants, on terms and conditionsacceptable to IDA (para 3.9, -19-

terms of referenceare shown in Annex 6). Largerbridge rehabilitationcontracts will be supervisedby local consultantsacceptable to IDA, whilst supervisionof the smallercontracts will be the responsibilityof RDA staff. The designs for about 200 km of roads and six bridges have been completed. The design of the remainingroad works will be carriedout by suitablyqualified local consulting firms. For most of the bridges in the project, RDA's stardarddesigns can be used. The work to be done on the bridges is within the capacity of domestic contractors,although they may need to hire some special equipment during constructionfrom RDA. Before eitherwidening, redecking or replacementof all or part of any bridge superstructureis undertaken,detailed site investigations will be carriedout by RDA and a report confirmingthe structuralintegrity of the remainingcomponents (piers, abutments, foundations, girders, etc.) will be reviewedby IDA before contractorsare invited to bid for such contracts.

3.16 The technicalassistance component of the project,related to policy development,comprises three studiesto be undertakenby consultantsappointed on terms and conditionsacceptable to IDA (para 3.10). Two studies (i.e.,road materials, design and constructionstandards, and domestic road contracting industry)will be ca;riedout by RDA. The consultantsfor the third study, road user charges,will be appointedby the TechnicalSecretariat to IMN-CPT in MTH.

C. Procurementand Contractinu

3.17 Procurementarrangements for the project componentsare summarized below:

Project Components ICB LCB Other Total ------USA million------1. Civil Works: Roadworks 30.9 9.7 14.0 54.6 (23.9) (7.4) (0.0) (31.3) Bridgeworks - 4.2 2.0 6.2 (0.0) (3.1) (0.0) (3.1) 2. Road Flood Rehabilitation - - 2.5 2.5 (0.0) (0.0) (2.2) (2.2) 3. Equipment - - 0.2 0.2 (0.0) (0.0) (0.1) (0.1) 4. TechnicalAssistance: ProjectSupport - - 5.7 5.7 (0.0) (0.0) (4.5) (4.5) Policy Development - - 0.8 0.8 (0.0) (0.0) (0.8) (0.8) 5. PPF - - 0.5 0.5 {0m (0 0) (0.5) (0.5) TOTALS 30.9 13.9 25.7 70.5 (23.9) (10.3N (8.1) (42.5)

Note: All costs includecontingencies. Figures in parentheses are the respectiveamounts to be financedby IDA. -20.

3.18 All contractsfor roads and bridgeswith an estimatedcost of US$2.0 millionequivalent or more would be awardedafter ICB. Other contractswould be procured under LCB procedures acceptable to IDA. One road and three bridge contracts,to be financedby EDCF, will be procuredthrough limited international bidding open to selected contractorsfrom the Republic of Korea and Sri Lanka under EDCF procurementrequirements. About 60& of the works financed by IDA would be procured under ICB. The balance consists of short and scattered sections of road which are unlikely to prove attractive to international contractors. Six bridge contracts,also to be financed by IDA, are of a size tLat would not interest foreign contractors and can be handled by local contractors. All contractorswill be subject to prequalification. ICB bids submittedby prequalifiedlocal firms or joint ventures of foreign and local firms with majority local participationwould be eligiblefor price preference, provided they meet the criteria to be set out in the bidding documents.

3.19 The civil works associatedwith the rehabilitationof flood damage consist of minor works scatteredover a number of road sections and would best be carriedout by force accountunder the controlof RDA District Engineers.

3.20 Equipment,which comprisesonly minor items such as vehicles and computer equipment,will be procured throughprudent internationalshopping in accordance with World Bank guidelines. Consultancy services for project management,design, supervisionand technical assistancewill be procured in accordancewith "Guidelinesfor the Use of Consultantsby World Bank Borrowers." For the Colombo-Galleroad sectionand its bridges,consultants from the Republic of Korea in associationwith Sri Lankan consultants will be appointed to superAisethe contracts. All contractsabove US$2.0 million equivalentwill be subjectto prior review by IDA. The prior review requirementsare expected to cover 45% of total procurement. This percentage is acceptable, taking into account that EDCF is financingseveral major contractsnot subjectto IDA review. LCB and force accountcontracts will be subjectto ex-postreview. Procurement arrangementsfor the project were agreed with GOSL during negotiations.

R. Disbursements

3.21 Disbursementsfrom the IDA credit will extend six months beyond projectcompletion to June 30, 1998. This is in line with the standardprofile for the sector, and would be made on the followingbasis: (a) 78S of total expendituresfor civil works; (b) 100% of total expendituresfor consultarny services and te^hnical assistance;and (c) 100% of foreign expendituresfor vehicles, supplies and equipment, and 100% of local expenditures(ex-factory cost) and 65% for items procuredlocally. A PPF which was approvedto facilitate the preparationof this project, would be refinancedfrom the credit proceeds after the credit has been declared effective. A schedule of estimated disbursementsis shown in Annex 7.

3.22 Full documentationwould be requiredby IDA to supportwithdrawal applications for all expendituresunder contracts in excess of US$50,000 equivalent. Disbursementsfor expenditureson individualcontracts of less than US$50,000equivalent would be permittedon the basis of Statementsof Expenditure (SOE). Supportingdocumentation would be retainedby RDA and would be subject to auditing under agreed procedures and would be made available to IDA -21-

supervisionmissions. A Special Account would be establishedto facilitate paymentof eligibleexpenditures. This accountwould be maintainedin US Dollars with an authorizedallocation of US$1.9million representing an estimatedaverage of four months expenditures,and would cover all categoriesapart from large items of expenditurewhich would be funded outside the SpecialAccount. Except for expendituresgreater than US$500,000that would greatlydeplete the Special Account, it is expectedthat all expenditureswould be channelledthrough this account. Withdrawal applications,supported by all necessary documentation, would be aggregatedin amountsof about US$500,000and submittedat not more than monthlyintervals. Disbursementarrangements and method of operatingthe Special Accountwere agreed with GOSL during negotiations.

I. Accountsand Audits

3.23 RDA would establish and maintain a separate project account for expendituresunder the project. The records,accounts and financialstatements of RDA and the SpecialAccount will be auditedannually. During negotiations, GOSL agreed that annual audits of the project accountwould be carried out in accordance with gei.erallyaccepted auditing standards by independent and qualifiedauditors acceptable to IDA. Audit reports, in a format satisfactory to IDA, for each financialyear would be furnishedto IDA within nine months of the end of the financialyear, although!DA will work closelywith RDA to prepare final audited accountswithin six months. The audit would contain a separate opinionby the auditorsthat all disbursementsmade on the basis of SOEs were for works and services completedand incurred for the purposes of the project. A separate opinion would also be obtained from the auditors regarding the operationsof the SpecialAccount.

3.24 Compliance with audit covenants under the ongoing Second Roads Project (Loan 2517-CE)has been satisfactory.The accountsof RDA are properly designed and audited annually and carry a separate assessmentby the auditor recordingmaterial deficiencies and/or weaknesses in the accountingand internal controls of RDA, if any. Audit reports are prepared and submitted to RDA's managementand forwardedto IDA within six to nine months of the fiscalyear end. Lately,RDA has also instituteda systemwhereby project accounts for the fiscal year are forwardedto IDA as soon as they are released to the auditors.

J. Monitoringand ReRortinj

3.25 Institutionbuilding is of primary importanceto the project and is made even more urgentby the recent changesin RDA's organization.It is planned within the projectto create a capabilityfor RDA to: (a) monitor the economic, engineeringand social aspectsof the project, accordingto arrangementswhich were agreed at negotiations; (b) plan and design highway and bridge rehabilitationand iiuprovcmenteffectively aind efficiently; and (c) improve costing and cost control procedures as an aid to better forecasting of expenditures.Initially, these tasks,including monitoring, will be principally undertakenby the expatriateadvisor together with the Sri Lankan counterparts. Close liaisonwill be necessarywith other agencies,upon whom reliancemust be placed during the first part of the project, at least, for support and coordinationservices and the use of specializedequipment. -22-

3.26 The assumptionsused in pavementdesign estimates and in the economic analysismust be monitored. In particular,latest trafficcounts are necessary to re-evaluatethe economicanalysis results;subgrade testingmust be carried out to confirm the depth of extra base or overlay required;and updated local cost data shouldbe used to refineestimates of projectcosts. As there has been mixed cost experiencefor highway constructionin Sri Lanka over the past ten years, especially in regard to contract work as a resuit of the political situation,it is to be expectedthat bids will be subject to wide variationsof price.

3.27 RDA would be responsiblefor submittingquarterly progress reports to IDA on the project (Annex8). The reports,to be submittednot 'Laterthan one month after the end of each quarter, would indicate progress made, problems encounteredduring the quarterunder review and the steps taken or proposed to remedy them. The reports would include up-to-date data for all project activities. Reporting on the project will be reviewed periodically and adjustmentsmade as necessary.

3.28 The final report would includeall informationnecessary for IDA to prepareParts I and III of a ProjectCompletion Report (PCR) and would include an updatedeconomic evaluation of the projectcomponents after their completion. RDA would prepareand submit Part II of the PCR after reviewingParts I and III, in accordancewith IDA's guidelineson the preparationof PCRs.

IV. JUSTIFICATIONAND RISKS

A. Economic Evaluation

4.1 Introduction. The project is designed to prevent further deteriorationof Sri Lanka'svital road networkwhich servesthe main centersof economicactivity. The road sectionsincluded in the rehabilitationprogram have exceeded their economic life and are steadily deteriorating. Further deteriorationof the project roads, which already carry heavy traffic, would result in serious transport capacity constraintsas the principal means of transportin the project area is by road.

4.2 Benefitsand Beneficiaries. The benefits of the project would b-: (a) reduced vehicle operating costs resulting from road rehabilitationand improvementand bridge replacementand repairs;(b) avoidanceof bridge closures and possiblecatastrophic accidents due to bridge failures;(c) improvedproject execution with technical assistance and training to be provided under the project; and (d) formulationof a strategyto strengthenthe local contracting industrythrough a study to be financedunder the project.

4.3 The quantifiablebenefits were measuredby the direct savingsderived by highway users. The benefits includeonly the reductionin vehicle operating costs which were determinedby comparingthe operatingcosts of five types of vehicles,i.e., passengercars/taxis, minibuses, buses, light trucks and heavy trucks travellingon the project road sections with and without the proposed rehabilitation.Annex 9 contains the methodologyand main assumptionsadopted for the economic analysis. -23-

4.4 Distributionof Benefits. The truckingindustry plays a key role in the distributionof industrialraw materials, collection of tree crops for exportsand transportof importedfoodgrains, thus affectingthe welfare of the entire population. It is reasonableto assume that transport savings made possibleby the projectwould be passed on to the consumer in the form of lower prices and increasedproduct availability,in view of the competitivetrucking industry in Sri Lanka. In the case of passengertransport, all classes of the populationare highly mobile.Buses typicallymake up 30-40%of the total traffic flow and account for over 80% of total passengerkilometers. Transport cost savingsobtainable from the projectwould accrue at first to the bus owners,but they shouldbe passed on to the travellingpublic as the bus transportindustry is very competitive.

4.5 TrafficVolumes and Growth. Existingtraffic volumes on the prcject road sections were established on the basis of the latest traffic counts conductedbetween 1987 and 1989. The project road sections carry relatively heavy trafficranging from 814 to 22,861 averageannual daily traffic (AADT)in 1989, and connectmajor cities autdagricultural production areas. All but two of the sectionsproposed for asphalticconcrete (AC) overlaycarry 2,500 AADT or more with the remainingsections carrying 1,900-2,300 AADT. Most of the sections proposed for regulating course (RC) surfacing are expected to carry about 1,500-2,500AADT in the opening years of the rehabilitatedroads, with one section carryingonly 1,032 AADT (Table 4.1). About 70-75% of total motorized traffic is typicallybuses and trucks with passenger cars, taxis and jeeps accountingfor 25-30%.

4.6 Availabledata indicatethat between1984 and 1988, the increasesin traffic volumes ranged from about 4% to 12% dependingon the location in the project area. The largestincreases were accountedfor by the minibusesafter the Governmentintroduced an importliberalization policy in 1977. Between1982 and 1988, the total number of registeredvehicles increasedat 7.7% p.a. (Table 1.2). During the 1975-1988period, the volume of auto diesel and petrol sales increased at 4% p.a. (Table A4.1-5). The economic analysis adopted a conservativeestimate of 3 to 6% annual traffic increasesin forecastingover a twenty-yearperiod. In computingeconomic benefits, only the normal traffic growth has been taken into account.

4.7 Economic Costs. The estimated economic s-osts of AC and RC overlaying,shown in Table 4.2, exclude taxes and duties,but includephysical contingenciesof 5% for the Group I roads, 10% for the Group II roads, 10% for the designed bridges and 15% for the bridges for which designs have not been completed. The total cost of the road rehabilitationcalculated in this way is estimatedat SL Rs 1,663 million. The bridge costs were added to the road improvementcosts. The unit costs used to calculateeconomic rates of return (ERR) includeboth road and bridge rehabilitationwork as well as the costs of design and constructionsupervision, and thus cover 100% of projectcosts. The costs of routineand periodicroad maintenancewith and without the improvements are all also included in the analysis.

4.8 Economic Rates of Return and Sensitivity. The overall ERR of the rehabilitationprogram is estimatedto be 33.1%. In view of the high traffic -24-

volumeson the roads includedin the rehabilitationprogram, it is not surprising that all the sections included in the RC program yielded very high returns ranging from a low of 21.9% to a high of 41.7%, with an average of 31.0% (Table 4.3). On the typicalroad sectionswhere AADT ranged from about 1,700 to 2,500, the ERRs ranged from 26% to 36% (Table 4.4).

4.9 Similarly,for the road sectionsproposed for AC surfaces,the ERRs ranged from 20.5% to 98.1% (Tables4.5 and 4.6), with an averagereturn of 34.3%. The highest return of 98.1% was obtainedon the road sectionwith AADT of 9,032 in the openingyear and 20.5% where the AADT was lowest at 2,415. On typical sectionswhere AADT ranged from about 4,000 to 7,000, the ERRs were from 31% to over 80%

4.10 These resultsindicate that the proposedroad rehabilitationprogram is long overdue. Further delay in its implementationwould mean substantial economic benefits foregone. As is the case with most road rehabilitation projects,the ERRs on the project road sectionsare very high since the cost of patchingand resealingis relativelysmall, compared to large,immediate benefits obtainablefrom the improvementof riding surface.

4.11 If costs increaseby 15%, the averageERR would be reducedto 30.4%. If the benefitsdecreased by 15%, the ERR would be reducedto 30.0%. If the cost increasesby 15% while the benefit decreasesby the same amount, the ERR still yields 27.5%. The r 'tch value analysis shown in Table 4.7 indicatesthat the cost alone would have to increaseby more than 400%, or the benefits alone decreaseby 80%, for the net presentvalue (at 10%) to become zero.

B. Risks

4.12 The major risk is the unstable security situation in the country which could affect implementationand costs. Although the politicalsituation has shown some signs of improving,measures are proposed under the project to closelymonitor implementationand controlcosts. To this end, flexibilityhas been incorporatedinto the implementationschedule to allow for the initial contractsto be in areas previouslyunaffected 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 the prevailing conditions. Similarly, changes in fuel prices resulting from the current volatile situation in the Middle East may materially affect project costs, althoughit is too early to make a judgementat this point. A second risk is the possibleweakening of the Government'scommitment to maintainingrehabilitated projectroads. This would be minimizedby continuedIDA monitoringof the annual maintenancebudgets, the adequacy of which will be reviewed jointly. Another risk is the possibleover-extension of RDA's engineeringand managementcapacity by ongoingand future commitments. This would be addressedby implementingthe project with appropriatesupervision by consultantsand by strengtheningRDA's capacityand improvingits efficiencythrough technical assistance and training of its staff in contract administration,management and cost control. -25-

C. EnvironmentalImpact

4.13 The projectworks lie withina road reservewhich has scrved the same purposefor many decades. Becausethe proposedroad and bridge works involveno major earthworks,realignments or changes in natural drainage,there will be no adverse intrusion into the environmentand the need for resettlementis not envisaged. Some noise and dust created during the rehabilitationwork may temporarilyaffect adjoiningareas. The long-termeffect of the works will be beneficialas they will improveroad safety for vehiclesand pedestrians,reduce user discomfort,allow a smoother flow of traffic and improve drainage with a consequentlowering of current levels of trafficnoise, dust and air pollution and a reduction in the present susceptibilityto flooding of the roadside dwellingsand urban areas.

4.14 A special study on design standardsand specifications,financed under the project,will aim at ensuringthat rehabilitationworks will continue to be environmentallyacceptable (para 3.10). Provisionswill be incorporated into the contract documentsto provide environmentalsafeguards in respect of: (a) regrading and landscapingborrow areas, quarries and spoil tips that are opened specificallyfor this project; (b) storage areas, especially those for diesel fuel and bitumen; (c) safe disposal of pavement and other materials removedduring rehabilitation;(d) sanitaryarrangements in offices, yards and on site; and (e) avoidingpollution of water coursesand groundwater.

D. SDecialConsiderations

4.15 The project does not target poverty groups directly,but project roadshave been selectedfor their high return,which are expectedto includelow incomeusers. The flood rehabilitationcomponent is expectedto directlyassist rural low-incomefamilies by restoringaccess for agriculturalinputs/outputs. The project supportsprivatization through assistance to the local contracting industry. Although the project does not addresswomen in developmentdirectly, it is expectedto generateemployment opportunities for dwellersin the vicinity of projectworks in the more labor-intensiveoperations.

V. AGREMENTSREACHED AND RECOMMENDATION

5.1 During negotiations, agreement was reached with the Government on:

(a) an annual action plan will be furnishedto IDA (by September30 of each year beginningSeptember 1991) to includeinter alia sufficient budgetary allocationsfor RDA and other agencies to ensure that services and resourcesfrom agencies of the Government,including RDA, will be forthcomingduring projectimplementation (para 2.24);

(b) a study of Road User Charges in accordance with agreed terms of reference will be carried out under the supervision of the Technical Secretariat to INC-CPTby consultants to be appointed by Aptil 15, 1991 (para 3.10(a)); -26-

(c) a study on the DomesticRoad ContractingIndustry in accordancewith agreed terms of referencewill be carriedout by consultantsto be appointedby May 15, 1991 (para 3.10(b));

(d) a study on Road Materials,Design and ConstructionStandards in accordancewith agreed terms of referencewill be carriedby out by consultantsto be appointedby September30, 1991 (para 3.10 (c));

(e) the recommendationsresulting from studies under (b), (c) and (d) above will be implementedin consultationwith IDA (para 3.10);

(f) the financingplan as well as GOSL's commitmentto meet its share of local costs,including possible cost overrunsin projectcosts (para 3.13); and

(g) the procurement,disbursement, and reporting requirements(paras --.20-3.?3).

Conditionsof Effectiveness

5.2 Conditionsof Effectivenesswill be the establishmentof the Project Managementand MonitoringUnit within RDA and appointmentof the advisorand two RDA counterpartstaff acceptableto IDA (para 3.14).

Recommendation

5.3 On the basis of the above conditionsand agreements, the project is suitable for an IDA credit of SDR 30.6 million (US$42.5million equivalent)to the DemocraticSocialist Republic of Sri Lanka, on standardterms with 40 years maturity. '-2 7-Ane1 Page 1 of 6

SRI NR

THIRD ROADSPROJECT

Road DevelopmentAuthoritv - Organization and Resgonsibilities

1. The Road DevelopmentAuthority (RDA) was establishedin 1981; since that time, it has undergone numerous realignmentsof functions and structural reorganizations.1 1 The lines of authority since 1986 places the RDA under the State Minister of Highwayswhich in turn reports to the Ministry of Transportand Highways--aCabinet level post. A State Minister of Transport--counterpartto the State Minister of Highways--is responsible for other transport sectors including railways, trucking,and passenger transport.

2. The major responsibilities of RDA are the maintenance and constructionof roads and bridges which comprise the national network. Requests for budget allocationsfrom RDA are submitted (throughappropriate channels) to the Ministry of Planningand Policy Implementationand the Ministry of Finance.

3. A subsidiarycompany to the RDA was establishedin 1987, the Road Constructionand DevelopmentCompany (Pvt) Ltd. This is a private companywhich carries out the predominateshare of contractualwork on behalf of RDA under a strict client/contractorrelationship.

Total Roads and Bridges

4. The roads and highway structurein the country compriseabout 97,376 km of paved and unpaved roads, and about 5,262 bridges (See Attachment 1). RDA's responsiblityincludes only Class A and B roads and bridges, involving10,442 km roads (11%),and 3,062 bridges. The roads for which RDA is responsibleare all paved and comprisethe national road network. Prior to 1990, the number of roads under the responsiblityof RDA was about 25,744 km of Class A, B, C, D and E roads. However,beginning January 1990, responsibilityfor care and maintenance of about 15,302 km of roads (16%) (ClassC, D, E) and about 2,200 bridges was to

I/ Responsibilityfor roads and bridges has been:

Prior to 1969: Public Works Department.

1969: Ministry of Irrigation,Power and Highways, Department of Highways (DOH). Several governmentagencies executedwork for DOH, i.e., State Development Construction Corporation (bridge construction); Territorial Civil Engineering Organization (roadworks); and the Department of Machinery and Equipment (vehicles,plant and equipment).

1981: Road Development Authority was established to execute roadworksfor DOH.

1986 - Present: RDA assumed all responsibilitiesfrom DOH.

1990: RDA responsibilityreduced to include only Class A and B roads and bridges which comprise the national road network. -28- AnnexI Page 2 of 6 be transferredfrom the RDA to ti._Provincial Councils--a devolution of repon- sibilitywhich is currentlyunderway. The remainingroads are entrustedto the responsibilityof local governments(52,244 km or 53%) and specializedagencies, i.e., Janatha Estate Development Board, Sri Lanka Plantation Corporation, Irrigation Department, Forest Department, the Mahaweli Authority and Land CommisionerDepartment (19,389 km or 20%).

Organizationof EDA

5. A ten-memberBoard of Directorsserves in an advisorycapacity to the RDA; the members are appointedas follows:

5 members - Ministryof Transportand Highways 2 members - State Ministerof Highways 1 member - State Ministerof Transport 1 member - Ministry of Finance 1 member - Ministry of Power and Energy

6. The Chairman of RDA acts as Chief ExecutiveOfficer, and a General Manager is in charge of the general and technical administrationwith the assistanceof eight functionaldivisions as follows:

(a) AdministrationDivision. Responsibilitiesinclude personnel and administrationmatters. This divisionis staffedby approximately 59 staff, 89% of whom are supportlevel.

(b) Finance Division. Maintains records on finances and controls and monitorsexpenditures. About 60 staff are employedin this division including about ten accountants.

(c) Internal Audit Division. Audit and examination of accounting records is undertaken to verify the legitimacy and accuracy of expenditures.The divisionalso keeps recordson vehicularaccidents and files insuranceclaims when applicable. Staff assigned to this functiontotal about 16 includingthree internalauditors and eight audit assistants.

(d) Training Division. This division consists of about 10 staff who coordinate education and training programs for RDA personnel in order to improve their effectiveness. The program includes identificationof training needs and preparation of training programs;organizing lectures, seminars and field visits; arranging training at other institutions; on-the-job training; library services;preparation of technicalnotes; and trainingof trainers. About 50 engineerswere undergoingtraining as of February 1990.

(e) Researchand DevelopmentDivision. This office provides advice and assistancein qualitycontrol during construction and maintenanceof various projects undertakenby RDA. The division consists of two sections,i.e., Regional Services and the CentralLaboratorias and Projects section, includingnine provincialfield laboratoriesand other projectlaboratories set up at major constructionsites. This division employsabout 173 staff includingabout 16 engineers,one chemist and a geologist. -29- A_nes 1 Page 3 of 6

(f) Constuction Nanasment and Contracts DLvision. Management of road and bridge rehabilitationprojects funded with foreign aid (other than the component of IDA Credit 1883-CE (ref. para 6(j) below). Projects include those funded by the Asian DevelopmentBank, the OverseasEconomic Development Fund, and IDA. This division employs 45 staff includingfive project coordinatorsand 18 engineers.

(g) UnglneerinfServices Division. This division is headed by its directorwith five deputy directorsfor:

- TrafficManagement and Road Planning; - Highway Designs; - Bridge Designs; - Bridge Assessment; and - Land Acquisitionand Shiftingof Public Services.

Its primaryresponsibilities are to plan and design road and bridge projects and proceed with acquisitionof land and shifting of in- frastructurepublic servicesto facilitateproject implementation. A substantialportion of the work executedpertains to foreign aid projects. Total staff in this division is about 118.

(h) Constructionand MaintenanceManagement Division. This office is responsiblefor the routine and periodic maintenanceworks of the road network. Road maintenancecontractors under the directionof the ExecutiveEngineers are responsiblefor carrying out the work. From January1987, the predominantmaintenance and improvementworks were subcontractedto the Road Constructionand DevelopmentCompany. There are nine ProvincialDirectors--one for each province--whoare assistedby about 170 engineers. The total number of staff in this division is about 720 staff plus 617 staff in the mechanical workshops. In addition, a Project Coordinator (with supporting staff) is also assignedto this divisionon an interimbasis as part of the road rehabilitationcomponent included in the Emergency Reconstructionand RehabilitationProject, IDA Credit 1883-CE. The Road Constructionand Development Company is attached to this divisionfor organizationalpurposes.

Proiect Director's Office. The functions of this office are attachedto the Constructionand MaintenanceDivision. It includes 42 staff located at Kandy to coordinate the Victoria and Kotmale projects,as well as Colombo-KandyRoad and Gatambe-Kandybypass.

(i) Proarammin;Division. The staff positions for this division are includedRDA; however,the staff and work performedis accomplished at the level of State Secretaryof Highways. The division employs six staff--a Director and Assistant Director of Programming,one engineer,and three support staff. Its functionsare to prepare budgetaryplans and monitorprogress of RDA activitLes,and progress and financialreporting to the Ministries of Planning and Policy Implementationand Finance. -30- AMM_ Pags 4 of '

7. Tho Table on page 32 outlines the various RDA offices and the number of staff asdigned to each. The organization of RDA ia shown as Chart 1 of the Staff Appraisal lport. As of December 1989, RDAstaff totaled aproxiuately 2,708; howmwsr, this nuS r Is expected to be decreased to about 1,916 when the Provincial Cosuclls assim full responsibilitity for upkeep of the roads and bridges delegpted to the. -31- Amnex Page 5 of 6

THIRD ROADS PROJECT

ghwayiband Axide N=tork

Roads Province City Paved Unpaved Total Bridges ------kms------_

Western Colombo 5,551.01 7,516.33 13,067.23 1,022 Caipaha Kalutara

Central Kandy 4,928.68 7,245.06 12,173.74 757 Matale Nuwara Eliya

Southern Galle 3,134.13 5,609.61 8,743.74 557 Matara Hambantota

Northeastern Jaffna 5,735.5211,959.52 17,695.04 1,055 Mannar Vavuniya Mullaitivu Batticaloa Amparai Trincomalee

Northwestern Kuruunegala 2,973.6712,151.13 15,124.80 443 Puttalam

North Central Anuradhapura 2,271.63 9,604.47 11,876.10 337 Polonnaruva

WVA Badulla 3,153.60 4,223.06 7,376.66 341 Monoragala

Sabaragamuwa Ratnapura 3,004.33 5,291.81 8,296.11 800 Kegalle

Sub-total 30,752.5763,600.85 94,353.42 5,262

Kahaweli Authority,and Land CommissionerDepartment 3,022.87*

Total 97,376.29 5,262

* (Statisticson paved or unpaved is unavailable) -32-

Page 6 of 6

THIRD ROADS PROJECT

Total RDA Staff (February1990)

Professional Support Office Staff Staff Total

Office of the Chairman ) Office of the General Manager) 7 52 59 Administration Division )

ProgrammingDivision 3 3 6

Finance Division 10 50 60

InternalAudit Division 3 13 16

Training Division 56 4 60

ProjectDirector's Office 20 22 42

Research and Development 21 152 173 Division

ConstructionManagement and 28 17 45 ContractsDivision

EngineeringServices Division 91 27 118 Construction and Maintenance ManagementDivision 310 410 720

MechanicalWorkshops 19 598 617

Total Staff 568 1,348 1,916 -33-

nffs^ 2 Page 1 of 6

THIRD ROADSPROJECT

Detailed DescriutMonof grks

1. The projectin its final form includesthe followingroads, totalling 417.2 km (see Table 3.1):

(a) The A2 road, Colombo to Hambantota (225 km), divided into the followingsubsections:

- Noratuwato Galle 101.0 km - Galle to Matara 44.0 km - Matarato Dickwella 21.0 km Dickwellato Hambantota 59.0 km

(b) Three road sections (51.5 km), which branch off the A2 and lead inland from the coast in the SouthernProvince . These are:

- Hatarato Akuressa 21.0 km - Iatarato Hakmana 24.0 km - Tangallato Belliatta 6.5 km

(c) A number of road sections(135 km) in the WesternProvince, situated in the eastern and north-easternsuburbs of Colombo,namely:

- Kaduwelato Hanwella 12.5 km - Toppu-Dankotuwa-Giriulla 32.0 km - Peltyagodato Kadawatha 8.0 km - Dehiwelato Haharagama 7.6 km - Navinna to Mirihana 3.4 km - Hunupitiyato Hendala 4.0 km - Katubeddato Piliyandala 4.7 km - Wattalato Nahara 7.2 km - Katunayaketo Nittambuwa 26.0 km - Biyanwilato Ganemulla 3.0 km - Seeduwa to Udugampola 12.0 km - Isurupayato Pannipitiya 6.0 km

(d) Three short road sections (5.7 km) leading from the A3 road to Negombo town. These are:

- Negombo to Giriulla 1.6 km - ChillawRoaa, Negombo 1.3 km - St. Joseph Street,Negombo 2.8 km -34-

AhnMZ Page 2 of 6

2. The present conditionof all the above roads has many things in comon:

(a) the pavementsare approachingfailure, or have already failed, and roughnessmeasurements (in 1988/89)are generally of the order of 3500 to 6000 mm/km;

(b) pavementedges have deterioratedor failed,resulting in progressive roadwaynarrowing;

(c) verges are deformed,in many cases to quite an unacceptableextent, causing pavementdrainage problems, and they are not serving their intendedpurpose as usable road margins;

(d) in almost all cases, pavementwidths are inadequateand, with the existing right-of-wayrestrictions, it is likely that many will continue to be inadequate,even after rehabilitation;

(e) road-sidedrains have, in many instances,disappeared or have been reducedin sectionto an ineffectivesize. Throughurban areas they are blocked and damaged;

(f) many cross-drainagestructures are blockedor damagedand it is very difficult,at this stage, to predict their structuralsoundness;

(g) the effective road platform (pavement plus vezges) width is generallyreduced by the presenceof overheadline poles, which, in many cases, are adjacent to the road pavements;and

(h) the almost complete lack of bus-stop lay-bys, emergency parking areas and pedestrian/bicyclepaths is the general rule, leadingto confusion and obstruction of the traffic on the road pavement, particularlyin urban areas.

3. More particularcomments on the presentcondition of the projectroads are:

(a) over a significantproportion of the Dickwellato Hambantotasection of the A2, the pavementhas failed structurally,causing fairly deep deformationsof a wave-likepattern. These areas need replacing;

(b) the Toppu to Giriulla and Katunayake to Nittambuwa sections, although having some right-of-wayrestrictions, can generally be rehabilitatedto acceptablepavement and shoulderwidths;

(c) the Matara to Hakmana road, in several quite extensive sections (including those recently reconstructed), will require a considerable amount of embankment widening and pavement raising through rice fields (flood areas); -35-

£flI Patg 3 of 6 (d) many sections of the A2 from Colosbo to Hambantota, and in particularfrom Galle onwards,are quite close to the se and the rehabilitationdesign will have to takeaccount of the existingor planned coast protection works; and

(e) on many of the road sections in the Western Province and Negov6o township, as well as on the Noratuwa to Kalutara section of the A2, existing traffic is likely to cause serious problems to the rohabilitation operations. The Road Development Authority is planning to design a temporary traffic control sche.m as part of the temporary works, including lane divisions, barriers and traffic lights, and to make it part of the Contract Drawins. The cooperation of the Traffic Police sbould also be requested; 4. In order to take account of the above conditions and to keep costa within reasonable bounds, RDAhas laid down the following design prameters;

(a) Deian Sged RuralAreas 65-70kph SuburbanAreas 50 kph UrbanAreas 30 kph

Lower design speeds have been adopted where: Mi) it is not possible to provide the minimue transitional lengthrequired;

(ii) excessive raising of the outer edge result from using the correct design speed; (iii) access problems are created; or (iV) there is inadequate width of right-of-way to provide proper embankment geometry.

(b) Sunerelevation and Crossfalls No superelevation is to be provided on curves in the following locations: (i) where there are bridges; or (ii) in built-up areas, where provision of superelevation would create access problem to adjolinng buLldlgs. Otherwise, aximun superelevation is to be 5S. If exstint crossfall is greater than 5%, the new crossfall is to be the sam s that existing, up to a maximumof 6%. -36-

Annex -2 Page 4 of 6

Cambers are to be varied between 2%-4% to minimize quantities of regulatingcourse. Shouldercrossfalls are to be 5%, except they shall be 3% at upper edge of superelevation.

(c) Shouldersare to be raised to new level of pavementand shaped to correct crossfall.

For roads paved with Regulating Course and Asphalt Wearing Course (Rehabilitationlevel R+A), shoulders are to be lm wide, except where there are right-of-wayrestrictions, where widths may be reduced to a minimum of 0.6m.

For roads paved with Regulating Course only (Rehabilitationlevel R), shouldersare to be 0.6m wide generally.

In towns, some roads may already be paved from one side to the other between side drains, with no separate shoulder, in which case rehabilitationwill be carried out over the entire width. These areas will be identifiedin advanceand designatedas such in the drawings and cross-sectionsbefore tendering.

(d) PavementRe air/RehabilLtation.The rehabilitationlevels for the project are to be:

Roads surfacedwith Reg-ulatingCourse only (Rehabilitationlevel R)

Mi) Pavement edges to be repaired, where necessary, using aggregatebase materialcompacted into a layer minimum 200mm thick and 400mm wide, top of layer to be level with top of existing pavement;

(ii) Existing pavement to be widened where necessary to make finishedpavement conform with minimumwidth requirementsfor class of road using method as in i. above;

(iii) Potholes to be repairedby cutting back to sound material, squaringoff edges and fillingwith bituminousmaterial;

(iv) Where total pavement failure has taken place, it will be removed and reconstructedusing base material as specified; these areas will be identifiedin advance and designatedin drawings and cross-sectionsbefore tendering;

(v) Bituminous regulating course of minimum thickness 30mm is to be laid over entire pavement surface and finished to best possiblestandard to serve as wearingcourse; this may have to be laid in several layers to correct crossfalls and superelevationwithin limits definedabove; -37-

Annex2 Page 5 of 6

Roads surfaced with Regulating Course and Asphalt Wearing Course (Rehabilitationlevel R+A)

(M) All as in (i) above plus surfacing entire rehabilitated surfacewith asphaltwearing course 40mm thick.

Bridge Rehabilitation/Reconstruction

5. The project includes the repair,rehabilitation or reconstructionof the followingbridges (see Table 3.2 for details):

(a) On the A2 road from Colombo-Galle-Hambantota-Wellawaya:

Nos. 45/5, 51/1, 54/4, 56/2, 92/2, 94/1, 112/1, 116/3, 119/1, 121/3, 144/2, 159/2 and 163/3.

(b) On the Katunayaketo Nittambuwaroad: Nos. 6/1, 11/1, 13/1 and 1/1.

(c) On the Matara to Hakmana road: Nos. 8/8, 12/6 and 13/1.

(d) On the Hunupitiyato Hendala road: No. 2/2.

(e) On the Matara to Akuressa road: No. 8/5.

(f) On the Wattala to Mahara road: No. 42/2.

(g) On the Kirindiwitato Ganemullaroad: No. 1/3.

6. The existingbridges in the project are a mixture of steel truss, steel beam and reinforced or prestressedconcrete beam construction. Structural members and deck slabs are generallyseverely corroded, damaged or overloaded. Foundationsare concreteor timber piles, concretecaissons or spread footings.

7. The rehabilitationmethod for each bridge will be determined from the findingsof the detailed site investigationand engineeringsurvey. Depending on the locationof the bridge and other existingfactors, the followingmethods of reconstructionor rehabilitationwill be adopted:

Reconstruction

(a) Inadequately strong foundationsfor abutments and piers will be demolished and replaced by new concrte piles, caissons or spread footings. New abutments will generally be immediately behind, and new piers will be located away from the existing structures.

(b) Abutment and pier substructureswill be of mass concrete.

(c) Beams will be standardor custom-madeprestressed concrete.

(d) Decks will be of reinforced concrete. -38-

Annex 2 Page 6 of 6

(e) Where possible,construction will be carried out half the width at a time. Trafficwill usa the old bridge while half the new bridge is constructedalongside, and will then use the new bridgewhile the old is demolishedand the otherhalf of the new bridge is completed. Where this method is not feasible,a temporarybypass or alternative crossingwill be provided. videning

(a) Additional foundations for both abutments and piers will be constructedbeside the existing foundationswhich will have been proved throughdetailed investigation to be still in good condition. These new foundationswill generallybe of the same type as the existing. Where existingfoundations, piers or abutmentsare to be re-used,detailed investigationswill be carried out to verify and reconfirm the results of previous inspections and a report guaranteeingthe structuralintegrity of the structuralcomponents being re-usedwill be issued by RDA before contractorsare invited to tender for such contracts.

(b) New substructures,beams and decks will generallybe of the same type of constructionas above.

Redecking

(a) This will either be carried out as a separate operation or in conjunctionwith widening. Existing decks, including supporting beams, will be removedand replacedwith prestressedconcrete beams and reinforcedconcrete decks. There will be no modificationsto foundations or substructures. The guaranteeing of existing foundations and substructureswill also apply in this case, as above.

EnvironmentalPrecautions

8. Provisionswill be incorporatedinto the contract documents to ensure adequate environmen-al safeguards in respect of:

(a) rehabilitating borrow pits, quarries and spoil tips, where these are opened specificallyfor this project;

(b) storage areas, especiallythose for diesel fuel and bitumen;

(c) sanitaryarrangements in offices,yards and on site;

(d) avoidingpollution of watercoursesand groundwater;and

(e) disposalof pavementand other materialremoved during construction. -39-

Annsx 3 Page 1 of 5

SRI LA

THIRD ROADSPROJECT

Sggyt on Road User Charoes

Terms of Reference

A. Introduction

1. The Government of Sri Lanka (GOSL) intends to undertake a road user charge study to establish the appropriatenessof: (i) the charges by way of taxation,duties, etc., levied on differentclasses of road vehicles;and (ii) the relationshipbetween such chargesand the costs of developingand maintaining the road system to a suitabledegree.

B. Objectives

2. The main objectiveof the study is to review the taxes paid by road users of the inter-urbannetwork to determinewhether the taxationsystem could better reconcile the multiple aims of economic efficiency, equity, revenue generation, energy conservation, and administrativesimplicity in revenue collection. In this connectSonthe study should ensure that the forms in which taxes are specifiedand the administrativemechanisms by which they are collected do not materially misdirect the decisions of transportusers and government agencies in the allocationof scarce resources.

RevLew of the Hijbay System

3. The consultantshould collect informationon the national and major state highway systems, including,but not restricted to: (i) current design standards for roads and bridges; (ii) inventory by homogeneous sections specifyingpresent geometricstandards, serviceability indices, weight and size restrictionson bridges and roads; (iii) research studies conducted in the country concerning road behavior under different conditions of terrain, axle loads, traffic, climate, soils, etc.; and (iv) Government'splans for road constructionand maintenance for the next 5 years.

Motor Vehicle Population

4. A major problem in basic data is the lack of an accurate current estimateof the activevehicle fleet using the highway system. Becauseof delays or gaps in forwardinginformation on the number of annual vehicle licenses, the Departmentof Registrationof Motor Vehicles (DMRV)does not have a comprehensive and currentdata base on this criticalvariable. Variousestimates are made on the number of vehicleson the vehicle register,the revenuelicenses issued each -40-

Annex 3 Page 2 of 5 year, deregisteredvehicles, uninsured cars, the breakdownby vehicle type, and the like. There is an urgent need to streamlinea system of motor vehicle data collection,compilation, storage and retrievalto obtain accurateinformation on vehicle populationand to estimateroad user revenues and cost allocat.ons.

Road Traffic Demands

5. A projectionshould be made of the likely developmentover the next 15 years of road trafficin Sri Lanka, identifyingfreight and passengervolumes, type of commodities transported, spatial distribution of traffic, likely utilizationof containers,etc.

6. Projections should be made on the basis of several plausible assumptionsto be identifiedby the study and in consultationwith the Transport Studiesand PlanningCenter (TSPC) and the planning units in the Governmentof Sri Lanka.

Economic Evaluationof DifferentVehicle Alternatives

7. The consultantshould conduct an economic evaluationof alternative vehicle designs with the aim of permittingmodern vehicles to operate in Sri Lanka. For example, a vast body of experiencecollected world-wide indicates that the utilizationof largevehicles reducesconsiderably the cosc per ton-km of transportinggoods and passengers,but this economicsaving shouldbe weighted against the incrementalcapital and maintenancecost of the larger vehiclesand the improvementsto roadswhich their use could imposeon the economyas a whole. Also, improvementsin fuel efficiencymight entaila significantinitial capital cost which should be compared with future savings in fuel consumption. The suggestedcriterion to evaluate differentproposals is the minimizationof the presentvalue of the total transportcosts, at the opportunitycost of capital which in Sri Lanka could be assumed at 10%. The consultantshould evaluate alternatives under a reasonable number of different operating conditions (terrain,geometric standards, congestion, traffic mix, commoditytransported, etc.).

!inal Recommendations

8. The consultant should make the final recommendations on the optimum vehicle fleet mix based on economic, engineering, marketing, availability of credit, legal,administrative and managerialcriteria. It should be recognized that a restructuringof the vehicle fleet and the possiblerelated improvements in the highwaynetwork may take considerabletime to materialize,and both should be done concurrentlyto permit full utilization of the advantages of modern units. The consultant should prepare a detailed implementation program specifyingphases and intermediatetargets for its development.For example,the first phase of the implementationprogram may be limitedto a major corridorof the country where enough experience could be collected and the results applied to the rest of the country during the second phase. -41-

Areaz 3 Page 3 of 5

C. Seoggof VotX

9. With the aims of economic efficiencyin view the consultantsshall, for the current situation:

(a) estimate the costs attributableto road use;

(b) allocate these costs to the principalcategories of vehicles;

(c) estimate the total taxes paid by each vehicle category and compare them to the correspondingroad use costs; and

(d) propose changes in the forms of taxation that would enhance the efficiencyof the transportationsystem.

10. To clarify the scope of the study, it should be stated that the Governmentwishes to draw a distinctionbetween road use chargesand generaltax revenues. Road use charges11 are to be construedas payments to the Government related as closely as possible to the sum of: (a) costs incurred by the Governmentin providingand maintainingthe road infrastructureand (b) the costs that each user imposes on other road users by accelerated road damage and congestion. All taxes not designedas road use chargesare presumed to be for generalrevenue purposes. They may, like BusinessTurnover Tax (BTT),be levied on all productiveactivities with the aim of raising revenueswhile distorting productive efficiencyas little as possible;or they may be levied on luxury consumptionitems with the aim of redistributingincome. Many of the present taxes are not clearlyidentified with one or other of these objectives,so that it is difficult to judge their effectivenessand the consultantwill have to decide in which categorysuch taxes are to be classified.

Estimationgf Costs Attributableto Road Use

11. Principlesof economicefficiency require that the road use costs to be chargedto users includeat least all the identifiablevariable costs (short- run marginal costs). These are normally defined as the variable portion of routine and periodic road maintenance,and congestlon costs, occasioned by trafficking.

12. As for the costs of providing future capacity (road strengthening, geometric improvements,and new construction),it is considered a matter of governmentpolicy whether part or all of such costs should be recovered from present road users. Policy on this questionof cost-recoverywill be shaped by concern to provide relative prices to transportusers which reflect relative costs of the different modes of transport (where costs are defined on a comparable basis). To help the Government make better-informed decisions on this

2/ The term Oroad use charges" is used here instead of the more commonly found term "road user charges"to avoid any ambiguityin their definition. -42-

Annex 3 Page 4 of 5

subject,the consultantshould conductsensitivity analyses that show the impact of alternativecost recoverypolicies on the level of user charges and relative prices of differentmodes of transport.

13. A similaranalysis should be conductedto show the effect on road use charges on an optimal level of road maintenance,as distinct from the present level of expenditures.

Allocationof Costs to Vehicle Categories

14. The consultantshould allocate the road u e costs definedabove to the differentvehicle categories,in accordancewith .he criterionof causality.21 In so doing, attentionshould be paid to the ax! configurationof truck types currentlyused in Sri Lanka and alternativeconLigurations to which Sri Lanka could switch in the future.

Comnarisonof Road Use Costs and Taxes Paid

15. By comparingthe road use costs imposedon the system and the total taxes paid by each category of vehicle, the consultants should identify which categories are under-chargedand, for the remainder,what is the breakdown between road use charges and general tax revenues.

Pro2osed ChantesIn Forms of Taxation

16. It is possiblethat taxespaid by large trucks do not fully cover the cost of road damage that they incur. If the analysis confirms this, the consultant should propose appropriatetaxes to rectify the situation, with particular attentionto encouragingaxle configurationswhich minimize total transport costs. Also, the consultant should propose appropriate taxes for the vehicle types travellingover the network and in some cases, those taxes could be used as incentives(or disincentives)for operatorsto use certain vehicle types. The consultantwill make recommendationson the total amount of taxes to be paid by each vehicle type, which is a matter to be decided later by the Government of Sri Lanka.

17. Where the analysis reveals that efforts by road users to avoid or reduce taxes in their present form are substantially reducing the efficiency of transportation,appropriate changes should be proposed. Each shouldbe supported by an assessment of 'heir foreseeable impact on the efficiency of the transportationsystem and on the level of tax revenuespaid.

18. Finallyunder this heading,the consultantshould propose any changes

2/ In this connection, past research in the United States, Brazil and elsewhere on road deteriorationand the respective effects of traffic, climate and aging will be reviewed. -43-

Annex 3 Page 5 of 5 they believewill significantlyreduce the administrativecost of collectingroad user taxes without prejudiceto economic efficiencyor the level of revenues.

Recommendationsfor ImorovedData on Motorization

19. After review of the existing data and the system of data collection on vehicle population, the consultantwill recommend improved procedures to compileaccurate data on vehiclepopulation. Their recommendationswill include, inter alia, means to strengthenthe functionsof DMRV, field offices and other relevant agencies involved in the compilation of motor vehicle data. Additionally,the consultantwill identifymeans to enforce deregistrationof vehicles,and prepare a strategy of implementingthe recommendedscheme under this heading.

Sunervisionof Studs by Government

20. The study will be conducted under the supervision of TSPC in associationwith several government agencies concerned with highways, motor vehicles and policies on pricing.

Data. Local Services and Facilitiesto be Providedby the Government

21. The Governmentshall provide the consultantentrusted with the study with all availabledata on:

(a) present pricing and transportregulations and such changes to these as are currentlybeing contemplatedby the Government;

(b) transportcosts and revenues,including national and local taxes;

(c) the operationsand accountingsystems of the Governmentagencies and local authorities responsible for transport maintenance and administration;

(d) previous studiessponsored by the Governmenton transportationand on developmentthat will have a bearing on the proposed study; and

(e) such data on fiscal and financialpolicy which would materiallyassist the study. -44-

Annex4 Page 1 of 3

SRI LRAM

THIRD ROADS PROJECT

Domestic Contractingrndustry Study in the Road Subsector

Terms of Reference

Objectives

1. During the currentFive-Year Plan, a considerablenumber of road and bridge rehabilitationprojects will be executedthrough governmentfinancing/or foreign assistance. Successfulimplementation of these projects will largely depend on the capabilitiesof the constructionfirms engaged.

2. With the general objectiveof developinga more efficient domestic contractingindustry in the road subsector,the Governmentof Sri Lanka (GOSL) requested IDA's assistance in undertakinga study on the developmentof the domesticroad contractingindustry. GOSL thereforeintends to engageconsultants to investigate, examine and highlight the constraints the domestic road constructionindustry has been facingand to suggestmeasures for its development and how best to introduceinternational practices.

3. The short-termobjectives of the study focus on the institutional environmentand include-

(a) establishmentof a permanent informationsystem for collectingroad constructionindustry statisticson a routine basis, particularly aimed at providing data for indexing public sector construction contractsand relating them to constructioncosts (inputs/outputs);

(b) establishmentof a consolidatedregistry of road and bridge works contractors;and

(c) recommend areas where GOSL would need to draft new legislationto introducemodern and equitableprocurement and contractingprocedures.

4. The medium-term objectives of the study focus on improving the performanceof constructionenterprises and include:

(a) identificationof the major constraints which adversely affect efficientoperation of road constructionenterprises; and

(b) development of specific action plans aimed at resolving the key constraintsidentified in (a) above. -45-

4 Page 2 of 3

Scope of Consultants&Services

5. The consultantswill carry out the followingtasks:

(a) examineand evaluatein generalterms the existingdomestic road civil engineering contractors in Sri Lanka, their capital investments, organizationalset-up, personnel,construction methods, equipment, previous experience,quality as well as volume of their previous constructionwork, and assess the business environmentin which they work;

(b) assess in general terms the national demand for road works and road associatedstructures for the next five years in particular,and for the period of the proposed plan in general, and highlight the requirementsfor a reasonabledevelopment of the road construction industry;

(c) identify the office or committee XI to coordinate actions in all matters relatedto, and for maintaininga dialoguewith the industry, with the aim of defining its responsibilitiesand the resources required to discharge them, and to draft a plan for its implementation,including any necessaryenabling legislation;

(d) preparea frameworkfor a road contractingindustry information system and relateddata baseswhich would centralizecollection, analysis and publicationof statistics,particularly in respectof cost indicesto be used in price adjustment,and to propose an action plan for its establishment;

(e) suggest ways and means for establishingin the RDA a consolidated registryof contractorsand recommendguidelines for membershipwhich should depend on, inter alia, experience, reliability,permanent suitablequalified professional staff and financialstrength;

(f) analyze the institutionaldifficulties and constraintswhich affect the industryand inhibitit from develoring;and

(g) suggest remedialmeasures and specify the action to be taken by GOSL in particularto:

(i) identify the minimum equipment needed by a contractor in a specifiedactivity, taking into considerationthose operations where labor-intensivemethods are technically sound and cost effectivewith the appropriateblend of equipment;

(ii) assess the financialneeds of the companiessuch as:

f One option may be to set up a small cell supervisedby an Inter-Ministerial Committee. -46-

Annex 4 Pag. 3 of 3 a. minimusworking capitol; b. advance payment; c. bonds and bank guarantees;and d. foreigncurrency to coverpurchase of equipment and spare parts: (iii) analyzethe existingfacilities for hiringout equipmentand in particularthe forthcomingequipment leasing operations in the Ministryof Highways. (h) prepare a draft recommendation of measures which will help GOSLextend to the industryincentives in respectof duty and taxationsuch as thoseapplied to other industrialactivities; (i) make recommendationson any improvementsneeded to procurementand contracting procedures, standard tender documents and general conditionsof contractwith the objectiveof limitingunnecessary contractualrisks, eliminating Lipediments to the strengtheningof the industry,stimulating its growthand elevatingits competenceand professionalstanding.

(j) proposea detailedaction plan for improvingthe efficiencyof road constructionenterprises including technical assistance to be provided to contractors, and draft terms of reference for the consultants and for the GOSL personnel who will supervise the implementation of the action plan. -47- hnnnsS Page 1 of 4

TEIRD ROADS PROJECT

Project Manaeementand MonitorlnaUnit Advis=

Terms of Reference

BacK=nd

1. Compared to other countriesof South Asia, Sri 'anka has a relatively extensiveand well-developedroad network, which evolved l.argelyto serve the needs of plantations for bringing their produce to the ports. PresentlySri Lanka'soverall road networktotals some 97,000 km, of which 33,000 km are paved and the balance are gravel or earth roads.

2. Most roads were built many years ago and have since had few improvements,while roadsidedevelopment has encroachedinto the originalright of way over long sections. A number of bridges are structurallydeficient as well as too narrow for traffic and there are lengths of roads throughoutthe countrywhere pavement failure is imminent.

3. Due to a combinationof circumstances,including unforseen traffic growth, both in volume and loading, some inadequatedesigns, and insufficient budget over the past years, the condition of the national trunk routes has deteriorated. Much of the network now needs a major rehabilitationeffort to restore it to a level at which its road sections can be maintainedby normal routinemaintenance procedures.

4. Recognizing this need the Government of Sri Lanka (GOSLj with assistancefrom the InternationalDevelopment Association (IDA) and the Economic Development Cooperation Fund (EDCF) of Korea has identified, and will be implementinga projectfor the rehabilitationof selectedroad sectionsand their associatedstructures on the national trtuikroutes in the western and southern provinces of Sri Lanka. The project will executed by the Road Development Authority (RDA), Ministry of Highways, under the direction of the Director, ContractsManagement (CM).

5. The project consistsof the followingcomponents:

(a) maintenanceand rehabilitationof 420 km of Class A & B trunk roads to be performed under 5 contracts,tendered on an internationalbasis;

(b) repair, rehabilitationor (and) reconstructionof 24 bridges, all located on dhe selected road sections to be performed by local and/or foreigncontractors; -48-

A5 Page 2 of 4

(c) urgent repairs, rehabilitationand limited new construction of roadways, pavements, drains, retaining walls and cross-drainage structuresdamaged by floods during 1989 to be performedmainly on a force account basis;

(d) procurement of vehicles, microcomputers, miscellaneous office equipment,and supplies to enable the ContractsManagement Division (CMD) of RDA to monitor and controlcontracts more effectively;

(e) consultancyservices for design and supervision;

(f) technicalassistance to the CMD; and

(g) for three special studies, covering the domestic road contracting industry,standards for materialsand designsfor corstructionand for road user charges.

Ob1ectiye

6. The Governmentof Sri Lanka intends to engage a Project Management Advisor (experiencedin project and contract management including pavement designs)with the objectiveof ensuring that:

(a) all componentsof the project are carried out in accore 'ce with the agreementsentered into betweenthe Governmentand IDA and betweenthe Governmentand the EDCF of Korea;

(b) all civil works and studies are carried out in compliancewith the designs and documentsagreed between the Government and the donors; and

(c) two counterpartsenior engineersfrom RDA are providedwith adequate on-the-jobtraining in methods of project and contractmanagement.

Scope of Services

7. The Advisor will undertake the monitoring and coordinationof all project related activities under the direction of the DirectorCMD to ensure that all activitiesare implementedin a timely and cost-effectivemanner.

8. The Advisor will set up, with the assistanceof the two counterpart engineersfrom RDA, suitableproject monitoring, control and coordinationsystems and procedures which would enable the Director CMD and, through him, RDA's maragementto expeditedecisions and actionsto speed up project implementation. Specificallydecisions and the Advisor will be required to:

(a) compile, such informationas is necessaryfor RDA to follow-upwork programmesand check that their executionis within the established time schedules and design and cost parameters; -49- Anmex S Page 3 of 4

(b) review Consultants'work proposals,designs, drawings, tender and contract documents etc., advise on modifications and recommend follow up actionsand approvals;

(c) review the necessary documents for variations to the works and recommendappropriate action by RDA;

(d) review in consultationwith the consultantssupervising the works, design modifications considered necessary, monitor their implementationand performanceand report to RDA on their cost and time effectiveness;

(e) set up and maintain a project data and information storage and retrievalsystem to recordall relevantcommunications between parties to a contract,actions needed by other agencies,all quality and cost detailsand variationsto the works as they occur;

(f) set up and maintain "as built' drawings, documents and cost data storage and retrievalfiling system;

(g) attendroutine projecc related meetings between all parties concerned, maintain records and minutes and follow up on actions requiring immediateattention by RDA;

(h) compile, review and evaluatemonthly project reports and prepare the necessaryquarterly progress reports (based on Consultant'smonthly progress reports) for IDA and other lending agencies in a timely manner which shall include intex alia details of physical and financialstatus of each contract,area(s) of potentialproblems or delays and recommendactions and solutions;

(i) carry out regularinspection oi work sites and advise the DirectorCMD on action deemed necessary;

(j) ensure maintenrnce of project accounts and timely preparation of interim evaluation and financial cost informationon all ongoing contracts;

(k) regularly cdack project accounts to ensure appropriateactions are taken in a timely manner and in conformitywith requirementsof IDA and other lendingagencies;

(1) plan a programmeyearly project implementation schedules and budgets for carryingout all projectrelated works, designs, studies,etc.;

(m) adviseRDA on settingpriorities of activitiesto be undertakenduring each year of project implementation; -50- ^Aesz 5 Page 4 of 4

(n) advise and assist RDA on selectionof consultantsin obtaining the approval of their terms of referenceand assisting in negotiation/ administrationof their contracts;

(o) advise RDA on matters relatingto designs includingpavement designs and implementationoptions during the executionof works;

(p) assist RDA regardinginvitation of bids for civil works (or requests for proposals from consultants)andawarding of contracts to ensure that all actions are in accordancewith guidelinesof IDA and other lending agencies;

(q) visit work sites to monitorand evaluateproject progress and make the necessaryrecommendations to RDA to ensure that all necessaryactions are taken in a timely manner and that works are executed on schedule and establishedperformance standards are met;

(r) develop, install, test and implement a computer-based project monitoringand budgetarycontrol system to enable early detectionof potential problems in the execution of contracts, for immediate correctiveaction to be taken; and

(s) ensure the timely preparationof completionreports on each completed major project activityand/or component.

9. Trainingof the RDA counterpartstaff is a componentof the Advisor's duties consideredto be equally as importantas the above mentioned tasks. In particular the advisor will undertake training of the staff assigrad by RDA office in the procedures involved in planning, monitoring, controlling and carrying out high level supervisionof contractworks.

10. The Advisor will include in his proposal a detailed plan of his approach to this aspect of his duties and should submit a full listing of equipment,including appropriate computer softwarewhich he considerswill be required to successfullyach' q--r the objectiveof transferringthe necessary skills and "state of the art .mology to his RDA counterpartstaff. -51-

1tge 1 of 7

THIR ROAD HOE

Terms of Refrenee hakS&Xgd 1. Comparedto othercountries of SouthAsia, Sri Lankahas a relatively extensiveand well-developedroad network,which evolvedlargely to serve the needs of plantations to bring their produce to the ports. PresentlySri Lanka's overall road network totals some 97,000 ko, including some 33,000 km of paved roads and the balance are gravel or earth roads. 2. Most roads were built many years ago and have since had few :mprovements, while roadside development has encroached into the original right of way over long sections. A numberof bridgesare structurallydeficient as well as too narrowfor trafficand thereare lengthsof roadsthroughout the country where pavement failure is imminent. 3. Due to a combination of circumstances, including unforseen traffic growth, both in volume and loading, some inadequate designs, and insufficient budget over the past years, the condition of the national trunk routes has deteriorated. Much of the network now needs a major rehabilitation effort to restore it to a level at which it can be maintained by normal routine maintenance procedures. 4. Recognizing this need the Government of Sri Lanka (GOSL) with assistance from the International Development Association (IDA) and the Iconomic Development CooperationFund (EDCF) of Korea willbe implementing a project for the rehabilitation of 420 km (ineludingbridges culverts etc) of the national trunk routes in the Western and Southern Provinces of the country. The project will be executed by the Road Development Authority (RDA), Ministry of Highways. 5. The project components for whieh supervision consultancy services are required consist of the following components. (a) Rehabilitation of 320 km of roads in four contract packages. (Note that Contract-l for 100 km approximately is being financed by EDCFand is excluded from the scopeof theseTOR.) See AppendlxI for details. (b) Development of skills within the Road Development Authority, partieularly in the supervision of civil works contracts. -52- Annex 6 Page 2 of 7

Obiectives

6. The Government of Sri Lanka intends to engage consultantswith the objectiveof ensuring that the civil works of the project are carried out in accordancewith the requirementsof the variouscontracts and in compliance with the designs and documents for the works and that the RDA personnel are provided with trainingin methods of contractmanagement and supervision.

Scope of Services

7. The Consultant, acting as the Engineer's Representative, will undertakethe supervisionof the projectcontracts packages under the direction of the Road DevelopmentAuthority. The Directorof ConstructionManagement and ContractsDivision (CM&C)will be appointedas the Engineer for the Contracts.

8. It is expected that the first road rehabilitationcontract in the consultancyscope (Contract-2)will be awardedin the second quarterof 1991 and other contractswill be awardedat later dates. The period of performanceof the road rehabilitationcontracts will be between36 and 40 months. Prequalification of contractorsunder InternationalCompetitive bidding conditions has commenced. Internationaland Sri Lankan contractorswho are eligibleand have prequalified under IDA procurementguidelines will be invitedto participatein bidding for ContractNo. 2. Furtherprequalification may be undertaken to select suitable bidders for Contracts3, 4 and 5.

9. The Consultantwill set up a suitable site supervisionorganization to ensure that the works under each contractare completedin accordancewith the documents. Specifically,the Consultantwill be required to:

(a) providesuch informationas is necessaryfor the Contractorto set out the works and check that this settingout is correct;

(b) review the Contractors'work proposals,working drawings, etc. for the Contract, advise modifications where necessary and approve the proposals in consultationwith the Engineer;

(c) review the Contractors'works program and, where necessary,request revisionsof these to account for the current status of the works;

(d) agree with the Contractor on systems of measurement for interim certificatesand carry out the necessarymeasurements, calculations and certificationsfor such certificates;

(e) make recommendationsto the engineeron the Contractor'sclaims for additional payment, extensions of time and other matters, based on the Consultant's interpretation of the Contract Documents, the relevant site conditions and the Contractor's detail. submissions;

(f) prepare the necessary documents for any variations to the works, negotiate these with the Contractor and submit the agreed Variation Order to the Engineer for approval; -53-

Annex 6 Page 3 of 7

(g) through Resident Engineers, inspectorsand other staff as may be required, supervisethe day to day operationsof the Contractorto ensure compliancewith the contract;

(h) main:ain detaileddiaries of relevantevents and activities;

(i) operate a site material testing laboratory facility to ensure compliance of materials and completed works with the Contract Specifications. Carry out deflectionanalysis of the various stages of the road pavement works to determine any modificationsto the pavement that are required and generally ensure that the final pavementwill meet the design criteria;

(j) if required,determine in consultationwith the Engineerthe pavement designs to be includedin any test sections,monitor constructionand performanceand report on the effectivenessof the trial pavements.

(k) set up and maintain a correspondenceand document storage and retrieval system to record all relevant communicatitnsbetween the parties to the contract, including that with the Engineer and Engineer'sRepresentative, all measurementand qualitycontrol details and variationsto the works as they occur;

(1) maintain "as built" drawingsand documents;

(m) call and keep minutes of routinesite meetingsbetween the partiesto the contract;

(n) prepare monthly progress reports for each contract in a form acceptableto RDA and IDA. These reportswill include,as a minimum, detailsof the physicaland financialstatus of each contract,details of delays and particularproblems with suggested solutions and the budgetaryeffect of these;

(o) carry out final inspectionsof the works and recommendthe issue of completioncertificates;

(p) monitor the works throughthe maintenanceperiod and take appropriate action;

(q) check the Contractors'final accounts and certify them correct for payment; and

(r) prepare completionreports in a form acceptableto RDA and IDA.

10. In setting up the management and cost accounting systems, it is anticipated that the consultant will make appropriate use of microcomputer-based methods compatible with RDA's facilities in the CM&C Division. -54- Anmes 6 Page 4 of 7

11. If required, the consultant in addition to his site duties will undertakethe followingtasks:

(a) review with RDA forthcoming contract packages in the light of experienceon ongoing works, in particularthe outcome of the trial pavement sections, and recommend necessary amendments and design revisions;

(b) assist in the preparationof prequalificationquestionnaires and in the prequalificationand procurementprocess as necessary;

(c) participate in analysis of the prequalificationsubmissions and prepare a report summarizing the evaluation and nominating the contractorswho have been prequalified. In doing this, the consultant will be requiredto undertakesuch additionalinvestigations into the capabilitiesof possiblebidders as may be necessary;

(d) review jointlywith RDA the Invitationto Bid and bid documents.

(e) assist in the analysisbids and participatein the bid evaluationand recommendationof contract award processes;and

(f) supervisethe contractworks in the same manner as set out above.

12. In preparingthe proposal,the Consultantwill divide the consultancy scope into two parts. The first part will includeall those activitiesdescribed above as applicable to Contract 2. The second part will add the additional resourcesrequired to undertakethe supervisionof Contracts 3, 4 and 5. The financialproposal will be prepared similarly.

13. If the RDA decides to proceed with Contracts 3, 4 and 5 at the scheduledtime, then RDA may direct the Consultant to mobilize the additional resourcesrequired for the supervisionof these contracts. In the event that the work in Contracts3, 4 and 5 are deferredsignificantly or are canceled then the scope of the consultancyservices will be limited to that requiredfor Contract 2 and for Items 11(a) through (e) above if applicable. The agreementbetween the RDA and the Consultantwill be drafted to reflect award of contracts at the intervalsshown in the implementationschedule. See Appendix II.

Time Schedule

14. It is anticipatedthat a contractfor the Consultancywill be awarded in April 1991 and the Consultant will commence his assignment in May 1991. Provided that Contracts3, 4 and 5 works commence as presently scheduled,the estimatedtermination date for the consultancyis the end of the completionof Contract 5 which would be in 1998. -55-

AMUe 6 Page 5 of 7

Assistance to be provided by RDA

15. The RDA will undertaketo:

(a) nominatepersonnel to act as technicalassistants to the consultants; these officerswill be responsiblefor routinecontact between the RDA and the consultant and will be responsible for ensuring that the services proceed in accordance with the consultancy contract and conform to the requirementsand policies of the RDA; and

(b) undertake to assist the consultant to obtain visas and other privileges where applicable for his expatriate personnel.

16. The RDA may also require that the Consultant include in his teams engineers and technical staff from the RDA. These individuals will not be substitutes for the Consultant'sown staff but will be responsible to the Consultantas though they were such.

17. Each constructioncontract includes the provisionand maintenance,by the contractor,of vehicles, laboratory and survey equipment, computers and furnishedoffice space. The RDA will providethese at no cost to the consultant for the durationof his services. However, the consultantshall include in his proposala list of facilitiesand equipmenthe considersnecessary to adequately supervisethe works and providedetailed costs for these. In the event that the RDA is unable to provide the items mentionedabove, or accepts that additional or differentequipment is required,then the consultantshall provide these on a reimbursablebasis. At the conclusionof the consultancythese items will be handed over to RDA.

18. Training of local personnel,both of the consultantand the RDA, is a component of the consultancyand is consideredto be equally as importantas the supervision of construction works. In particular the Consultant will undertake training of RDA's staff in the procedures involved in planning designing and supervision of maintenance works carried out by contract. The Consultantshould make provisionfor training5 personnelfrom RDA.

19. The Consultantwill include in his proposal a detailed plan of his approachto this aspect of the consultancy,including a breakdownbetween formal and site training and a full listing of the facilitiesand equipmentwhich he considerswill be required to successfullyachieve the objectiveof developing these skills within the local staff organization.

20. The Consultant will provide personnel for each component of the consultancy who have a wide experience in theAr particular fields and who, in the case of expatriate staff, have worked on similar projects preferably outside their own home countries.

21. Since the scope of the consultancy involves some techniquesrelatively new to Sri Lanka, it is anticipated that expatriateswill fill some if not all the key senior positions. However,wherever possible, the Consultantshould make maximum use of available Sri Lankan nationals, by associatingwith a local consultancy firm which has access to such staff. -56-

Amx 6 Page 6 of 7

Terms of Reference for the SuMersiton Consultant

Details of Contract Packages

(a) Cntact 1 Moratuwa to Galle - Length: 101 kIs

This contract is not included in the consultancyscope and is includedfor information and sake of completeness only.

(b) Contract 2 Katunayake to Nittambuwa, Toppu to Giriulla, Biyanwila to Ganemulla, Seeduva to Udugampola and three strees in Negombo.

Total Length: 84.3 km

(c) Contract 3 Calle to Matara Matara to Akuressa Matara to Hakmana

Total Length: 89.0 km

(d) Contract4 Matara to Hambantota Tangalle to Beliatta

Total Length: 86.5 km

(e) Contract 5 Roads in ColomboArea

Total Length: 56.4 km -57-

Pags 7 of 7

AvDtII

Terms of Reforence for the 3erMv1sion Consultant

Schedule

(a) Appointment of Consultants April 1991 Commencement of Consultancy May 1991 Services

(b) Award of Contract 2 June 1991 ConstructionPeriod September1991 to March 1995

(c) Award of Contract 3 July 1992 ConstructionPeriod October 1992 to March 1996

(d) Award of Contract4 July 1993 ConstructionPeriod October 1993 to December 1996

(e) Award of Contract 5 January 1993 ConstructionPeriod April 1993 to September1996 Annex 7 -58- Page 1 of 1

SRI LANK

THIRDROADS PROJECT

Scheduleof EstimntedDisbursemmnts (US$milIion)

Profile X IDAFiscal Quarterly Cumulative Cumulative ------Year Quarter Ending Disbursements Disbursennts X Country Sector

FY91 March31, 1991 0.0 0.0 0.0 June30, 1991 2.4 2.4 6.0 2.0 2.0

FY92 September30, 1991 0.5 2.9 6.8 December31, 1991 0.5 3.4 8.0 4.0 6.0 March31, 1992 0.6 4.0 9.4 June30, 1992 0.9 4.9 11.5 9.0 10.0

FY93 September30, 1992 0.9 5.8 13.6 December31, 1992 1.2 7.0 16.5 16.0 18.0 March31, 1993 1.4 8.4 19.8 June30, 1993 1.4 9.8 23.1 24.0 27.0

FY94 September30. 1993 1.2 11.0 25.9 December31, 1993 2.4 13.4 31.5 32.0 34.0 March31, 1994 1.7 15.1 35.5 June30, 1994 2.1 17.2 40.5 40.0 41.0

FY95 September30, 1994 2.1 19.3 45.4 December31, 1994 2.2 21.5 50.6 48.0 48.0 March31, 1995 2.3 23.8 56.0 June30, 1995 2.4 26.2 61.6 56.0 56.0

FY98 September30, 1995 2.3 28.5 67.0 December31, 1995 1.9 30.4 71.5 63.0 63.0 March31, 1996 2.1 32.5 76.5 June30, 1996 1.9 34.4 81.0 71.0 69.0

FY97 September30, 1996 1.9 36.3 85.3 Decwber31, 1996 1.3 37.6 88.5 78.0 76.0 March31, 1997 1.7 39.3 92.5 June30, 1997 1.1 40.4 95.0 86.0 86.0

FM98 September30, 1997 1.0 41.4 97.5 December31, 1997 0.5 41.9 98.5 94.0 96.0 Mrch31, 1998 0.6 42.5 100.0 June30, 1998 0.0 42.5 100.0 100.0 100.0 -59- Annex 8 Page 1 of 1

SRI AK

THIRD ROADS PROJECT

ProiectRelporting Reauirements

1. At the conclusionof each three-monthperiod, the Road Development Authority(RDA) will preparea progressreport coveringthe work done on each of the components of the project to-date and detailing actual and anticipated progress,actual and estimatedcosts for the work completedand disbursements from the credit compared with those estimated in the appraisal report. The report will highlight causes for delays, if any, with measures proposed to overcomethem, and it will anticipateany changesthat appear to be necessaryin the projectcompletion date, the credit closingdate or the project costs. The reportswill also includethe results of traffic counts and pavement and soils surveys taken to confirm designs and design estimatesand economic evaluation, and will detail any changes in design, cost, estimatesor economic evaluation that result. Detailswill be given of contractsfor works, goods and services that have been awarded, invited or receivedduring the reportingperiod, with reasons for any changes that have been made in the project estimates on time processingand contractimplementation. Two copies of the quarterlyreport will be sent to IDA throughthe Bank's office in Colombowithin six weeks of the end of each reportingperiod.

2. Within six months of the completionof the project,RDA will submit to the Association,a Project CompletionReport on the execution and initial operationof the project, its costs and the benefits derived or expectedto be derived from it, an assessmentof the perZormanceby consultants,contractors, RDA and by the Associationof their respectiveobligations and the accomplishment of the purpose of the credit. Details of the contents and requirementsof the Project Completion Report will be discussed and agreed a year before the completionof the project, -60-

Annex 9 Page 1 of 30

SRI LN

THIRD ROADS PROJECT

Economic Evaluation--AssuMptions and Methodologv

A. Traffic Levels and Comiosition

1. Traffic growth in the southernpart of Sri Lanka where the project area is locatedhas been suppressedto some degree by the civil unrest in the area, which was especiallyprevalent in 1987 and 1988. However, the situation has improvedconsiderably in the early months of 1990, with touristtraffic and hotel occupancyin the project area progressingrapidly toward normal levels.

2. Recent trafficclassification counts have been carried out on each of the project road sectionsby RDA. Of the 26 road sections,the most recent counts on 13 sections were carried out in 1989, on 11 sections in 1988 and 2 sectionsin 1987. The classificationcounts were conductedfor 12 hours on each of 8 of the road sectionsand for 24 hours on the remaining18 sections,to gain an indication of traffic composition by vehicle type. In each case the classification count was accompanied by a seven-day machine count. Classificationand machinecounts have also been carriedout on most of the roads in previous years. The locations of the various counts, their dates and durations,and the resultingestimated traffic volumes by six vehicle types,are shown in Table A4.1-1. The volumes shown as Average Daily Traffic (ADT) have been adjustea for weekly variationon the basis of the machine counts, anI as there is little monthly or seasonal variation, this in effect represents the AverageAnnu41 Daily Traffic (AADT) and can be factoredup by 365 to represent annual volumes.

3. One-day, 1--hour trafficclassification counts were carried out by MoratuwaUniversity (MU) staff on two days in December 1989 at seven locations on the project roads, as a check on the reliability of the RDA counts. Additional classificationcounts were carried out by Transport Studies and Planning Center (TSPC) staff at nearby locations as a cross-checkon the MU counts. The RDA count volumeswere increasedfrom the years of the counts to the end of 1989 at a growth rate of 5% per year in the comparisonof the RDA and MU counts.

4. There are some significantdifferences between the RDA and MU counts, with the weighted averageof the RDA counts being about 17% higher than the MU counts. This can be attributedto a number of factors, including the time periods between the counts and the civil unrest in the south of the country during this period, simple inaccuraciesin the counts,and incidentssuch as the traffic accidentwhich blocked the road for a number of hours near one of the counting stations. -61-

Aumex 9 Page 2 of 30

Adjustmentsto the RDA Traffic Counts

5. Adjustmentsto the RDA trafficcounts were made incorporatingthe followingfactors:

(a) Galle Road, Km 22: the RDA counts,adjusted to 1989, are 1.27 times the MU counts. The MU counts are only 64X of the machine count, while the RDA count is a more reasonable81X (the remainderbeing mostly motorcyclesand animal-drawn vehicles.) In Table A4.1-2 the MU count has been increasedto 80X of the machine count.

(b) Galle Road, Km 34: no adjustmentexcept rounding to the nearest hundred vehicles.

(c) Calle Road, Km 42: due to the errors detected in the first four hours of the MU counts, the AADT numbershave been reduced to 80X of the machine counts. The adjusted trafficvolume is close to the RDA counts.

(d) Galle Road, Km 105: the MU and TSPC counts are very low comparedto the RDA and machine counts. An accident blocked the road for a number of hours during the MU and TSPC counts, and clearly reduced the volume countedby MU during the 16-hour count period. At the same time, the RDA count is high relativeto the machinecovnt. The MU count has been adjusted to 80X of the machine count.

(e) Seeduwa-UdugampolaRoad: the MU count is lower than the RDA and TSPC counts and is low in relationto the machine count. The RDA count is high in relation to the machine count. The MU count has been increasedto 802 of the machine count.

(f) Dankotuwa-GiriullaRoad: the machinecounts are high relativeto all other counts,but the other counts are relativelyconsistent. The MU count has been increasedto 2,000 vehicles,an increaseof about 5X, but still about 3X below the RDA count.

(g) Katubedda-PiliyandalaRoad: the machine counts is low relative to all other counts, and the RDA count is high relativeto the MU and TSPC counts. No adjustmentwas made to the MU count other than rounding.

6. Following these adjustments,the weighted average volume shown by RDA is 52 higher than the MU counts, which appear to represent the actual December 1989 volumes. Thus, for all roads, the RDA volumes have been reduced accordingly. The resulting estimated 1989 traffic volumes for each of dhe six vehicle types in the RDA classification were further adjusted to five vehicle types using the TSPC vehicle definitions in order to align them with the classificationused to calculate vehicle operating costs. The resulting estimated traffic volumes on the project roads as of December, 1989 are shown in Table A4.1-3. -62-

Arnez 9 Page 3 of 30 Traffic Forecasts

7. To obtain an indication of past growth rates in transport, traffic growth rates, the growth of the vehicle fleet, increases in road-related fuel consumption,growth in population and income and their relationshipto traffic growth,and the rates used in other studies were analyzed. The resultsof this analysis forms the basis of traffic forecasts for the opening year and the subsequent period.

Traffic Growth Rates

8. The available data on traffic growth rates on the project roads show a wide variation in the growth rates in those areas where more than one count had been carriedout at a single location. The growth rates appear quite high, but the variations among the different roads, and some of the more extreme results, suggest that the counts in the earlier years ara not sufficiently reliable to provide a useable indicationof specific trafficgrowth rates.

The VehicleFleet

9. The size and compositionof the active vehicle fleet for the years from 1975 to 1985 were estimatedin the TransportSector PlanningStudy (TSPS), which used the number of annual licenses issued, and other fleet information, to adjust the registeredfleet to take account of vehicles thought to be still registered but no longer active.1' These estimates indicate that the registrationstatistics overstate the size of the activevehicle fleet, primarily because vehicles are not usually "de-registered"when they go out of service and that the annual licencingstatistics somewhat understatethe size of the active fleet at any given time because some proportion of the vehicles are unlicensed. This is particularly true in the case of the number of buses in the fleet. However,the growthrates in the number of vehiclelicenses issued, shown in Table A4.1-4, do provide a reasonableindication of the growth of the active fleet.

10. The growth rates are shown for three periods: 1975 to 1988, 1980 to 1987, and 1982 to 1987. The period to 1982 is not consideredindicative of a long-termgrowth rate becauseof two factors: the liberalizationof the economy in 1979, which resultedin a rapid increasein vehicle imports,and the opening of the bus transport industry to private operators, which resulted in a rapid increase in the import of small to medium-sized buses. In 1988, the civil disturbances in the south of the country, combined with the ongoing civil problem in the north and northeast, could have had the effect of reducing the growth rates to levels below what they otherwise might have been. Thus, the 1982 to 1987 growth rates are probably the most indicative of what the actual rates would be under the normal circumstances. During this period, the weighted growth rate for all vehicles is 7.62 per year.

I/ Transport Sector Planning Study, Volume 4, p. 6-2 -63-

Armex 9 Page 4 of 30

11. Vehicle licensingdata for cars trucks and buses while leavingout motorcycles,farm tractorsand three wheelers,indicate a weightedaverage growth rate of 8.7X per year during this period. If the growth rate from the lowest growth period is selectedfor each vehicle type, the weighted averagegrowth in vehicle licensesis 6.41 per year.

12. The civil disturbances in the north and northeast resulted in considerablyreduced demand for bus transport "a these areas, and a lower nationr'.average growth than the 7.90 average rates estimated in the TSPS report.Al On balance, however, the statistics would appear to support a national averagegrowth rate in the ordearabout 61 per year.

Fuel ConsumDtion

13. Data on the annual sales of petroleumfuels (petroland diesel)used in 'inlandtransport' include both road and rail. Consideringthe redtctionin rail service resultingfrom the civil disturbancesin the north and east, the growth rates including rail would understatethe actual growth rates in fuel consumptionon the roads.11 For this reason, the consumptiondata were adjusted to remove the estimated rail consumptionof diesel fuel. The original and adjusted consumption data, and the estimated rates of growth in consumption of road fuels, are shown in Table A4.1-5.

14. The annual growth rates for both fuels show considerablefluctua- tions, to the extent that it is difficultto discern useable trends on a year- by year basis. This is partly a function of the onset and degree of the civil unrest, first in the north and east, then in the south, and partly a function of a series of significantprice changes. There may also be some degree of variation attributableto statisticserrors. However, the longer-termrates appearmore reasonable. The weightedaverage growth rate for petrol and diesel consumptioncombined in the period 1975 to 1984 is 7.91 per year, and in 1975 to 1988, 5.41 per year.

Other Indicators

15. A number of other studieshave provided indicationsof past growth rates and of expected future growth, includingthe following:

(a) The Trunk Roads MaintenanceProject postulated that trafficgrowth would be related to populationand income growth, with an income elasticityof demand between 1.5 and 2.0. A continuationof the historic road traffic growth rate of 6X per year was considered

2/ TSPS, Vol. 3, pp. 5-2 and 5-3.

Railway Statisticsshow that both train kilometers and locomotive kilometershave declined since 1981, with particularlysharp declines in 1988. -64-

Anniz 9 Page 5 of 30

appropriate,and consistentwith populationgrowth, income growth and an income elasticityof demand for transportof about 1.5.11

(b) The TSPS estimatedthat total trafficwould grow at about 7.1X per year (Vol. 1) and that the demand for bus travelwould grow at a rate of about 1.1 times the rate of growth of the Gross Domestic Product (GDP). The GDP was expectedto grow at about 5.2X per year, and bus trafficat 5.71 (Vol. 3). The vehicle fleet was expected to grow at 6X per year, and a roan traffic growth rate of 6X was used for the preparationof the proposed highway maintenanceprogram (Vol. 4).

(c) The ADB Second Road ImprovementProject report based the estimates of passengervehicle trafficgrowth on the growth of populationand GDP, using an assumed income elasticityof demand of 1.2. This resultedin growth rates rangingfrom 4.6 to 5.9X per year depending on the area involved.11 Truck trafficwas assumed to grow at the same rate as GDP.

ForecastingMethod

16. Generaltraffic growth rates are firstestim ted on the basis of past growthrates in traffic,vehicle licenses,fuel consumption,and forecastgrowth in populationand income. The generalrates are estimatedfor four periods:1990 to the opening dates of the roads, then for incrementsof seven, seven and six years thereafter, to cover the assumed 20-year life of each rehabilitation project. These rates,which declinein each succeedingperiod after the opening of each project,are the same for all roads. The generalrates are then modified for the individualroads where appropriate,on the basis of the socioeconomic characteristicsof each area.

17. In preparing the forecasts it was assumed that the railway would continueto carry the same proportionof the totaltraffic as in 1986;the latest year for which comparisonshave been made. The greatest impact of the railway would be in the case of the commuterpassenger service south of Colombo, which runs parallel to some of the Galle Road sectionsincluded in this project. It was estimatedthat the railway carried about 34,000 passengersper day on its most densely-travelledlink in this corridor in 1986. If rail trafficwere to increase to its previous peak (1979) of 50,000 passengersby diverting the passengersfrom buses, the bus trafficon Galle Road parallel to most densely- travelled link would have declined by about 5%.61 Bus traffic in this area i/ Scott Wilson Kirkpatrick& Partners,Trunk Roads MaintenanceProject Final Report. 1985, p. 161.

DHV ConsultingEngineers et. al., ADB SecondRoad ImprovementProiect, Phase I Final Report, 1987.

Derivedfrom the TransportSector PlanningStudy, 1988, Vol. 5, pp. 6- 16 et. seq. -65-

Annex 9 Page 6 of 30 accounts for about 351 of total AADT; therefore an increase of 471 in rail passengersgained by divertingpassengers from buses would reduce total road AADT by less than 2X. It therefore seems unlikelythat the results of the analysis will be sensitiveto any reasonablerange of increase in rail transportgained by divertingtraffic from the roads.

ForecastTraffic Growth attes

18. The forecastsrelating to the provincesin the currentproject area are shown in two scenarios: the continuation of the civil disturbances (Scenario1) and the ending of the civil disturbancesand return to normal (Scenario2). The Scenario 1 forecastswere used in the sensitivity tests incorporatingreduced initialtraffic volumes and reduced growth rates.

19. The Scenario2 forecastsgrowth rates in GDP by province range from a low of 2.81 to a high of 61, with a weighted average of 5X per year. Since trafficgrowth is generallyat a higherrate than the growth in GDP in developing countries,and since this trend has been confirmedin the case of bus travel in Sri Lanka, an initialoverall growth rate of about 61 per year is a reasonable expectation.

20. The Scenario2 rates of growth in per capita income range from 3 to 51 per year, with a weighted averageof about 51. The forecastweighted average populationgrowth in the projectarea for the period after 1991 is 1.14 per year. If a low incomeelasticity of demand for transportof 1.2 is assumed,this would result in a trafficgrowth rate of about 61 per year. The growth in the vehicle fleet and in fuel consumption,plus the rates used in other studies, all tend to support a general growth of about 61 per year.

21. Three steps were taken to maintain a conservativebias in the forecasts. First, although the evidenceappears to support an initial general growth rate of at least 61 per year, this rate was applied only to those roads where the socioeconomicfactors indicatedan above average growth potential. Other roadswere assumed to have an initialgrowth rate of 51 per year. Second, a growth rate of 31 between 1990 and the openingyear of the projectwas applied to all roads with a below-averagegrowth potentialand 41 to the roads with an above averagegrowth potential, even thougha more rapidgrowth could be expected in the recoveryperiod followingthe generally-depressedtraffic levels of the past year or two. Third, the initialaverage growth rate is assumed to prevail for only the first seven years following the opening of each project road, decliningby one percentagepoint (i.e.by 17 to 201) for the secondseven years, and again for the final six years. Thus, the general growth rates in the four periods (1990 to openingyear; first seven years; second seven years, and final six years), are 3 to 41, 51, 41 and 31 respectively.

22. These general growth rates were then modified to take account of cases having higher than average growth potential,but using a maximum initial rate of 61 per year. The cases havinghigher growth rates, and the reasons,are as follows: -66-

Arez 9 Page 7 of 30

(a) Project I-1, Moratuwa-Kalutara:high urban pop-lAation;major towns with high growth and greaterpotential for industrialdevelopment.

(b) ProjectI-3, Ambalangoda-Galle:development of GalleHarbour, Export PromotionZone and osxpansionof the tourist industry.

(c) Project I-4, Katunayake-Nittambuwa:expansion of the International Airport activitiesand the KatunayakeIndustrial Zone.

(d) Project I-6, Biyaiwila-Ganemulla:Katunayake IPZ and proposed construction of the Colombo Katunayake Expressway.

(e) Project 1-7, Seeduwa-Udugampola: important link between Colombo Katunayake and the proposed Colombo-Katunayake Expressway. High growth of population and urban settlements due to IPZ and tourism.

(f) Project 11-1, Galle-Matara: Galle Harbour development and EPZ; expansion of tourist industry and development of manufacturing industry,especially in light engineering.

(g) Project II-2, Kaduvela-Hanwella: consequent to the opening of KatunayakeBridge, becomes a connection to the Kandy Road; also developmentof industriesdue to improved access.

(h) Project II-3, Peliyagoda-Kadawatha:high rate of urban expansion, and constructionof the proposedKatunayake Expressway.

(i) Project II-4, Dehiwela-Maharagama:expansion of urban complexesof Dehiwela-Mt.Lavinia and Haharagama. Importantaccess to link A4 and A2.

(j) ProjectII-7, Hunupitiya-Hendala:high rate of urban growth and the constructionof the proposed Colombo-Katunayakeexpressway.

(k) Project II-9, Katubedda-Piliyandala:high urban growth in Moratuwa and Piliyandalaareas with the expansionof the MoratuwaUniversity and the Arthur Clark Center.

(1) Project 11-18, Isurupaya-Pannipitiya:expansion of urban settle- ments in Sri Jayawardenapura,and relocationof governmentoffices in the same area.

23. The forecastopening-year traffic volumes and subsequentgrowth rates are shown in Table A4.1-6. -67- Annex 9 Page 8 of 30 TABLE4A.1-1

TRAFFICMEYS

GROUPI (Designed Roads) TrafficSurvys -HistoricGrwt Tyve nd Diration TrafficVolue Rate(1 Per Yr.) Location Project ot Class. Hach. 0 - D LightIledius eav Uwgellediu Total 2-Point 3-Point Amber RoadLink Strve Yew CmCou rtCotSurvey Caws Trucks Trucks Trucks hies Suss ADT Period Period .. _. .. . i. _.... . - _ - - _ _ (I) (2) l3) (4) lS) (6) (7) 181 (9) (10) lll) 1212 113) (14) (Ka.) (I.) (Days)

1-1AC Horatuva- Kalutara 23 86 12 7 3218 334 1477 20 941 2611 8601 (Ks.1945) 35 85 12 3 09/25-27. 1833 190 U1 12 536 1487 &898 35 87 7 1918 701 1158 33 523 1475 5807 8.9S 35 89 7 2533 926 1528 4 69019 7668 14.9% 11.9% 39 87 7 2267 829 1368 39 618 1743686S 42 80 16 1 07/02 2345 341 563 16 25 0 "45 42 84 12 4 06127-30 1602 586 967 28 *36 1232 4850 2.2t 42 87 12 7 314 793 497 898 755 1815 7M2 17.71 8.5%

1-2AC Kalutra- Amalaoda 53 85 12 3 10102-04 1409 462 295 3 382 1083 3634 (Ks. V85) 63 8i 12 3 07/23-25 787 437 279 3 534 934 2974 73 85 12 2 10/10U11 843 359 229 5 315 639 2390 74 87 12 7 790 289 477 14 215 608 2393 74 89 12 7 929 339 560 16 253 714 2812 8.4% 78 80 16 3 0219-21 662 262 168 0 351 0 143

1-3AC Abaaluod- Ga1le 105 80 16 1 05/11 730 313 200 0 513 0 1756 (Ka.86-117) 105 87 12 7 1001 364 60 17 273 770 3030 8.1% 105 89 12 7 1299 475 78 22 354 99 3931 13.9% 9.4%

1-4K Katueyake-Veyangoda- 5 87 12 7 45 350 323 27 269 48 1939 Nittamuw' 5 89 12 7 60 436 402 34 335 604 2414 11.6%

1-5R toppu- Daotwa - 48 87 12 7 345 216 453 0 108 173 1294 Giriulla 48 8 12 7 370 231 486 0 116 185 1389 7.3% 4U 89 12 7 550 34 723 0 172 275 206 8.7n 26.3%

14 K Bivarils - 6neGulla 3 88 12 7 371 196 109 0 218 262 1156 3 89 12 7 542 287 159 0 319 383 1690 46.1%

1-7RC Seed" - ULagola 4 85 12 7 170 35 52 0 96 SS 409 4 88 12 7 435 48 169 0 242 169 10N 37.5%

1-8RC btara- Hmae 4 89 12 7 1020 113 397 0 567 397 2493 134.3% 57.1%

(Tale 44.1-1contltljed an nextoel)

_ _ __- _ _- ==2 S:S Annex 9 -68- Pag;19 of 30

TableA4.1-1 (Continued)

GOR911 TrafficSUveys ...... ---- HistoricGrowth (RoadsNot Yet Designed) Typeand Duration TrafficVolume Rate(% rxr Yr.) Location ------_ … Project ot Class. ach. 0 - 0 LightMedius Heavy Large Medius Total 2-Point 3-Point NPumber RoadLirt Survey Year CountCount Survey CarsTrucks Trucks Trucks 8uses Buses ADt Period Feriod

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (K1.) (Hrs.) (Dars)

II-1 AC Galle- Matara 141 84 24 4 545 129 317 1 232 419 1643 (Km.118-162) 161 88 24 7 543 335 349 1 208 470 1906 3.8S 160 86 26 2 908 238 358 3 465 38 2355 II-2 AC Kadwela- Hanela 9 81 24 3 120 36 179 9 73 59 477 9 87 24 7 669 202 99S 51 406 326 2650 33.1% II-3 AC Peiiyagoda- Kadawathe 6 81 26 3 7209 1712 2244 114 1598 2929 15806 6 86 24 7 6708 l593 2089 106 1487 2726 14709 -1.4% 6 87 24 7 9930 2358 3092 157 2201 403521M 4.0% 5.5% 11-4AC Dehiuela- Maharagama (8) 3 83 24 3 650 122 214 7 251 478 IM 3 86 24 7 1325 248 437 14 511 975 3510 26.8% 3 88 24 7 1382 259 456 14 533 1018 3662 2.2S 16.3t 11-5AC St. JoseDhStreet (8) 1.5 83 24 4 2120 922 1132 26 263 1001 5465 1.5 88 24 7 2769 1204 1479 34 344 1307 7138 5.5% 11-6AC Navinna- firihana 2 80 24 2 545 174 85 0 36 183 1023 2 88 24 7 1543 494 239 0 103 517 2896 13.9% II-7 AC Hinoitiya-Uattala- 1.5 83 24 3 1160 175 315 7 416 496 2569 Hendala(8) 1.5 88 24 7 1096 165 297 7 393 469 2426 -1.1% 1.5 89 24 7 1693 255 459 10 607 724 3749 54.5# 6M5 11-8AC Chillav Road 1.5 83 24 3 2048 652 805 23 126 456 4110 1.5 88 24 7 2860 910 1125 33 176 637 5740 6.9% 11-9AC Katubedda-Piliandeals 1.5 81 24 3 195 87 45 25 32 69 453 Road(8) 1.5 86 24 7 1377 616 321 176 224 684 3199 *7.8S 1.5 89 24 7 1040 465 243 133 170 366 2617 -8."% 23.3% II-10 RCMatara - Dickwella 180 88 24 7 413 193 323 2 204 460 1595 11-11 RCDickwelia - Hambantota 224 88 24 7 580 268 365 8 208 390 1818 (Km.183-241) 224 89 24 7 451 208 284 6 161 303 1414 -22.2% II-12 RCMatara - Akuressa 8 83 24 3 166 104 131 2 72 123 598 8 88 24 7 298 186 235 3 130 221 1072 12.4t 11-13RC Uattala - WlaharaRoad (B) 3 88 24 7 576 194 528 0 114 182 1594 11-14RC Negombo - Giriulla 3 81 24 3 195 132 238 10 85 115 775 3 87 24 7 333 224 405 17 144 196 1319 9.3t 3 89 24 7 551 372 671 28 239 324 2186 28.8% 13.8% II-16 RCBeliatta - Tanralla 4 86 24 7 119 75 92 0 276 36 927 5 88 2i 7 153 79 147 0 266 268 912 5 89 24 7 143 74 138 0 249 251 855 -6.2% 11-17RC Kirindivita - Ganeulla 1 88 24 7 188 97 181 0 326 329 1120 II-18 RCIsuwaa - Paniditiya 2 88 24 7 934 359 78 119 135 122 1747

Note: The vth rates used In the actual analysis areconsiderably lover in those cases vherethe adjustedrate is above6% vithout anadeauate exolanation Annex 9 -69- Page 10 of 30

TAkLEA4.1-2

COMPARISONOFADJUSTED TRAFFIC ESTIMATES: RDA& tlOUTUTWA ULIVERSITY

RDA 1989 1989 RDA tloratuwa1989 ADT& Counts RDA Counts/ RDA Date Total Adj'd Rel. to aine IechineCounts/ Counting of ADT Mor. fMoratuwaCounts Counts Machine Location Agency Count ADT (1) (2) Counts

GalleRd. km 22 RDA 86 8601 9957 Moratuwa Dec.89 7850 9900 1.01 12356 0.80 0.81

GalleRd. km 34 RDA 87 6864 7568 MoratuwaDec. 89 7511 7500 1.01 8535 0.88 0.89

GalleRd. km 42 RDA 87 7902 8712 Moratuwa Dec.89 10661 8700 1.00 10818 0.80 0.81

GalleRd. km 105 RDA 89 3933 3933(3) MoratuwaDec. 89 2039 3100 1.27 3922 0.79 1.00

Seeduwa- RDA 88 1063 1116 UdugamwolaRoad Moratuwa Dec.89 777 1000 1.12 1204 0.83 0.93

Dankotuwa- RDA . 89 2064 2064 Giriulla Road lloratuwa Dec.89 1901 2000 1.03 3422 0.58 0.60

Katubedda- RDA 87 3164 3488 PiliyandalaRoad moratuva Dec.89 *303? 3D00 1.16 3324 0.90 1.05 Annex 9 -70- Page 11 of 30

TABLEAM1-3

ESTIMATEDEND-1989 TRAFFIC VOLUMlES

EstimatedTraffic Volue, December 1989 (AADT)

Car Small Project 4WD &Med. Large Light Heavy Total Nuber RoadLink Picku Buses Bus Truck Truck AADT -----, ...... -- -- ....

GROUPI (Desioned Roads)

I-1 AC Moratuwa- Kalutara 2412 1855 657 1743 636 7303 1-2 AC Kalutara - Ambalangoda 885 680 241 639 233 2678 1-3AC Anbalangoda- Galle 1237 951 337 894 326 3744 1-4RC Katunayake-Veyanoda- Nittambuwa 575 575 319 642 188 2299 I-5 RC Topou- Dankotwa- Giriulla 524 262 166 735 281 1966 1-6RC Biyanwila- Ganemulla 516 364 304 363 62 1609 1-7RC Seedwa- Udugampola 435 169 242 169 69 1066 1-8RC Matara- Hakmna 971 378 540 332 1S4 2374

GROUPII (Roads Not Yet Designed)

11-1AC Galle- natara 543 670 208 541 144 1906 11-2AC Kadwuela - Hanvella 702 343 427 830 480 2782 11-3AC Peliyagodb- Kadamatha 10426 4237 2311 4398 1490 22861 II-4 AC Dehivela- Maharagm(B) 1382 1018 533 529 200 3662 11-5AC St. JosephStreet (B) 2769 1307 344 2080 638 7138 11-6AC Navinna- Mirihaa 1543 517 103 636 98 2896 11-7AC Hnoitiya-Jattala - Hedala (B) 1613 690 578 502 188 3570 II-8 AC ChillawRoad 2860 637 176 1576 491 5740 11-9AC Katubedda-Piliyandala(B) 991 348 161 580 221 2301 11-10RC tlatara - Dickvella 413 460 204 386 134 15' 11-11RC Dickvella - HaIbantota 430 289 154 358 116 1347 II-12 RCiatara - Akuressa 298 221 130 325 99 1072 11-13RC Wattala - Mahara Rod (B) 576 182 114 507 215 1594 II-14 RCNegoabo - Giriulla 525 309 228 732. 288 2082 II-15 RCHambantota - elellaiaya 250 163 98 183 59 753 II-16 RCBeliatta - Tangalle 136 239 237 148 54 814 11-17RC Kirindivita - Ganeaulla 188 329 326 204 74 1120 II-18 RCIsuruaya - Pann}iptiya 934 122 135 405 151 1767 -71- Annex 9 Page 12 of 30

TABLEA6. 1-4

VEHICLEUCENCES ISSUED: ALL VEHICLES

notor- L6cd Year Cars Buses Trucks cycles Veh. Other total

1975 58204 6205 17823 10805 15519 235 108791 1980 81218 52a8 38163 59374 32051 72 216158 1982 78655 8398 42298 76938 37685 128 24102 1985 80000 14400 70400 103300 42000 100 310200 1986 110812 12965 66165 102437 49016 140 341535 1987 114387 13383 68299 105741 50597 144 352551 1988 122716 14358 73273 113441 54281 155 378224

EstimatedGrowth Rstes

1975-88 5.9n 6.72 11.52 19.82 10.It -3.22 10.12

1980-87 5.0S 14.22 8.7% 8.6S 6.7S 10.46 7.22

1982-87 7.8S 9.82 10.12 6.62 6.12 2.42 7.62

VEHICLELICENCES ISSUED: CARS, BUSES AND TRUCKS

Year Crs Buses Trucks Total

1975 58204 6205 17823 82232 1980 81218 5280 38163 124661 1982 78655 8398 42298 129351 1985 80000 14400 70400 164800 1986 110812 12965 66165 189942 1987 114387 13383 68299 196069 1988 122716 14358 73273 210347

Estimted GrowthRates

1975-8 5.92 6.72 11.52 7.52

1980-87 5.02 14.22 8.72 6.72

1982-87 7.8S 9.8S 10.1l 8.7t

Swces: TVs$Vol. 4 P. 6-2, Dewrtmentof Registration of Rotor Vehicles, and Ctonsultants'estimates. -72- Annex 9 Page 13 of 30

TABLEA 1-5

COSIWTIONOF PETROLEIM PROOUCTS (11etricTons)

Product 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988

1. Petrol

Swer Petrol 69813 77612 89336 112961 108678 107691 109028 114217 117N90118831 121578 130263 140067 ISJ158

Reglar Petrol 252U 23653 22155 17033 6668 ------km.al Growth:Petrol 6.3S 10.3* 16.6S -11.* -6.5S 1.2% 4.8* 2.9S 1.1S 2.3S 7.1S 7.5 12.8S

2. Diesel

Total Diesel 265515 257557 261988 308792 36960 397710 420912 466459 67272 495721 502052 503313 516255 518292

Less: Railwaydiesel

Loco. KI. (000) 13460 12389 10261 12651 12083 11933 11763 11272 9021 9277 9665 9199 9388 6963 Est. Koer etric ton 322 322 322 322 322 322 350 346 296 290 285 351 366 300

Est. rail cons. (1) 43251 39869 33021 60069 38885 38402 33S88 32742 30665 31982 33166 26207 25826 23146

Est. RoadCorstion 202266 217688 228967 268723 310519 359308 387324 631852 6A230743739 468888 *771u6 490629 695146

AmuulGrowth: Diesel 7.6S 5.2S 17.65 15.6S 15.7I 7.8S 11.5 2.6* L.8 1.1S 1.8S 2.8S 1.0*

3. Petrol + Diesel 360572 35e622 373479 638786 664550 505401 529960 578811 590262 614552 623630 633576 656302 676307 kal Growth:P + 0 5.3S 6.1 17.5 5.9* 8.8* 4.9* 9.2S 2.0$ .1S 1.5# 1.6S 3.6S 3.0D

Periodic Groth: 1975-8 9.7S Periodic Crowth: 1975-84 5.8* Periodic Grwth: 1975-86 7.9% Diesel 1975-88 7.1* Petrol 1975-88 4.0* Petrol + Diesel 1975-88 5.6*

(1) ktual rail consmetionfig*s m avilable for 1Q81to 1988. Locomotivekilometers waryear wre availablefor all years. Avere locomtive kilometers wr ton of diesel werecalculated from1981 to 1988and used to estimate ceortion from1975 to 1980.

Sources: CeylonPetrolea CwoMtion ar Cotdltants' estitates. Annex 9 -73- Page 14 of 30

TA8LEA. 1-6

TRAFFICFORECASTS

EstimatedTraffic Volume, End of OoeningYear AADT) ForecastGro.th rates

Owen- Car Small (Percenter Year) Project ing IUD b ftd. Large Lisht Heavy Total 1990to Years Years Years DAber RoadLink Year Pickup Buses Bus Truck Truck AADT On. Yer 1- 7 8 - 14 15- 20

GO I (DesignedRoads)

1-1AC Mloreatva-Kalutara 1S95 3052 2347 831 2206 804 9241 4.0% 6.0% 5.0% 4.0% 1-2AC Kalutara- Ambalangoda. 1995 1056 812 288 763 278 3198 B.O% 5.0% 4.0% 3.0% 1-3AC Abalanoda- Gaile 1995 1477 1136 402 1067 389 4471 3.0% 5.0% 6.0% 4.0% 1-4RC Katunayake-Vevangods- Nitta a 195 727 727 40 812 238 2909 4.0% 6.0% 4.0% 4.0% 1-5RC ToDou- Dankotuwa - Giriulla 1995 663 332 207 930 355 2488 4.0% 5.0% 4.0% 3.0% 1-6RC Biyanwila- Ganenulla 1995 653 461 384 460 78 203 4.0% 6.0% 4.0% 4.0% 1-7RC See4a - odugabvola 1995 551 214 306 188 87 1346 4.0t 6.0% 4.0% 4.0% I-8 RC atareHakaw- 1997 .1230 478 684 420 195 3008 0% 5.0% 4.0% 3.0%

RW11 (Rods Not Yet Designed)

LI-1AC Galle- Matara 1"? 688 596 254 685 182 2415 3.0% 5.0% 6.0% 4.0% 11-2AC Kaduelo- Hanswlla 1996 924 451 562 1093 632 3661 4.Ot 6.0% 5.0% 4.6C Il-3 AC Pelvyagso- Kadatha 1996 13720 5575 3041 5787 1960 30083 4.0% 5.0% 4.0% 4.0% 114-AC Dehivela- llharagama(8) 1996 1819 1339 701 696 264 6819 4.0% 6.0% 5.0% 4.0 11-5AC St. JoseohStreet (8) 1995 3504 1654 *35 2631 807 9032 4.0% 5.0% 4.0% 3.0% 11-6AC Navina- lirihan 1996 200 680 135 837 129 3810 4.0% 5.0% A0% 3.Ot 11-7AC ftwitiya4bttala - Hendala(B) 1996 2122 908 761 660 247 4698 4.0% 6.0% 5.0% 4.0% 11-8AC ChillawRod 1995 3619 806 m 1994 622 7262 4.0% 5.0% 4.0% 3.0% II-9 ACKatutedda-Piliyandala (B) 1996 130 458 212 763 291 3029 4.0% 6.0% 5.0% 5.0% 11-10RC Matars - Dickuella 197 523 583 259 486 169 2020 3.0O 5.0% 4.0 35.0% II-l1 RCDickwella - tlambntota 1997 544 366 195 454 147 1706 3.0% 5.0% 4.0% 3.0% 11-12RC latara - Akuressa * 197 377 280 164 411 126 1358 3.0% 5.0% 4.0% 3.0% II-13RC Uabtala - Wa Road(8) 1996 758 239 150 667 283 2098 4.0% 5.0% 4.0% 3.0% 11-14RC Negoubo - Giriulla 195 664 391 288 927 36 2634 4.0% 5.0% 4.0% 3.0% 11-16RC Beliatta - Ta ll 1997 173 303 300 187 68 1032 3.0% 5.0% 4.0% 3.0% 11-17r 'irindivita - Gmuielo 1996 267 433 429 268 97 1474 4.0% 5.0% 4.0% 3.0% II-18 siways - Panrioitiya 1996 1229 160 178 554 198 2299 4.0% 5.0% 5.0% 4.0%

I Theirth rates to forecastthe traffic from December,1989 to the openingyear s takenas 4%for theroads in the Vesternprovince and 3t for SothwrnNrth-est and Uvaorovinces. -74-

Annex 9 Page 15 of 30

B. VehicleOierating Co0t8

Introduction

24. The proposedproject consists almost entirelyof the resurfacingof the roads to reduce road roughness. They generally do not include any sig- nificantupgrading of the roads beyond their existingstandards, although minor widening is included in some cases. Most of the road sections are located in relatively flat country where gradients and curvature tend to be moderate. The cost calculations therefore concentrate on the effects on vehicle operating costs of reducing the roughnessof the road surfaces.

Basic Vehigle OperatingCosts (VOCs)

25. The vehicle operating cost technical relationshipsused in the analysisare derivedfrom the TransportSector Planning Study (TSPS)Final Report dated January 1988. This report used 11 vehicle types (includingmotorcycles) to representthe vehicle fleet, and presentedestimated vehicle operatingcosts for paved roads in "good" condition(defined as a Bump Integratorroughness of 3,8C3 mm/km.) in flat to rolling terrain. The 1986 costs shown in the TSPS report have been adjusted to reflect 1990 values, and are presented in three tables. Table A4.2-1, "1990 Vehicle Operating Costs: Basic Data' shows the physical and operationalcharacteristics of the vehicles selected to represent the vehicle fleet in Sri Lanka. Table A4.2-2, "1990 Vehicle OperatingCosts: Unit Costs' shows the financialand economicunit costs of the vehicles, fuel, tires, and ether componentsof the costs of owning,maintaining and operating a vehicle. Table A4.2-3, "1990 Vehicle OperatingCosts per 1000 Kilometers', shows the costs per 1000 kilometersby vehicle type. These costs representthe estimated1990 financialand economiccosts, and exclude the time costs of all passengersand of the drivers of non-commercialvehicles.

EconomicCosts

26. The economic costs were derivedprimarily by deductionof transfer paymentssuch as taxesand duties from the financialcosts. The motor, tire and parts dealers provided the current amounts of taxes and duties actually paid on the vehicles, parts and tires. The economic costs of fuels are based on an assumed average crude oil price of US$ 20 per barrel and the current exchange rate of approximatelyRs. 40 - US$ 1. Overheadcosts are reduced from the cor- respondingfinancial costs to remove the estimatedtax and duty content,which is small because the overhead costs consist primarily of labor costs. For automobiles,60 percentof depreciationcosts are assumedto be distance-related while for commercial vehicles depreciation is assumed to be wholly related to the distance travelled. A residual value of 10 percent of the new value of the vehicle is assumed.

27. The vehicle operatingcosts were then consolidatedinto five vehicle types for calculationpurposes and to correspondto the availabletraffic data. The vehicle mix and averageannual kilometers used for this purposewere derived from TSPS but were adjustedon the basis of a discussionwith the Registrarof -75-

Annex 9 Page 16 of 30

Motor Vehicles.21 The resultingvehicle operatingcosts are shown in Table A4.2- 4.

Vehicle OperatingCosts and Road Roai'meas

28. There has been littleempirical testing of the relationshipsbetween road roughness and VOC in Sri Lanka, so the approach used here is based on a review of the relationshipsused in three studiescarried out in Sri Lanka plus the results of a number of studies done elsewhere. The sources include the following:

(a) the Sri Lanka Transport Sector Planning Study (TSPS), which was completedin 1988. The relationshipsused in this study are based on the results of research carried out by the Transport and Road Research Laboratory(TRRL) in Kenya and the Caribbean;

(b) the report of the ADB SecondRoad ImprovementProject, completedin 1987. In this project,the economicfeasibility of applyingasphalt overlays to 18 road sectionswith a total length of 390 kilometers was evaluated, using a model developedor adaptedby the consultants who carried out the study;

(c) the Staff Appraisal Report on the Second Road RehabilitationProject (Ln. 2517 CE), dated March 1985. The relationshipsused in this study consist of a constant percentage increase in VOCs for each increment of 300 millimetersper kilometer (mm/km) of roughness, based on the resultsof studies in the Philippinesand Sri Lanka;

(d) the report on the Road User Cost Study in India issuedby the Indian CentralRoad Research Institute,dated 1982; and

(e) the HighwayDesign and MaintenanceStandards Model (HDM-III),draft version, March 1985.

29. In each case, in order to make the differentsources comparable, the relationships between VOC and roughness were calculated in the form of a set of indices for each representativevehicle type, with VOCs at a road roughnessof 2000 mm/km equated to 1. They do not take full account of the effectsof speed reductionsresulting from factorsother than roughness. The indicesfor the ADB study, derived from a simplifiedsummary table shown in the report, are based on a level tangentroad with averagedaily trafficof 3,000 vehicles,and do not includethe effects of speed reductionsresulting from road curvatureand grad- ients.

30. The resultsof the comparisons,shown in Table A4.2-5,indicate some differencesamong the sources. It was decided to adopt the average of four of the sources: the ADB, the Bank and TSPS results, which had been applied specifically in Sri Lanka, and the India results, on the assumption that

2/ TSPS, Volume 4, p. 6-5. -76-

Annex 9 Page 17 of 30

conditionsin India would be similar to those in Sri Lanka. The inclusionof the HDM-III results had little effect on the selected values, which are also shown in Table A4.2-5. The indiceswere then applied to th vehicle operating costs from Table A4.2-4 to derive the values for VOC related to road roughness, shown in Table A4.2-6.

31. A numberof sourceswere reviewedto identifyroad roughnessformulas which would take account of the structuralcharacteristics of the individual roads, the relationshipsbetween roughnessand vehicleaxle loads, and the time since the last periodicmaintenance, and which could be appliedwithout the need to run a full, complex road maintenancemodel. There were essentiallytwo possibilitiesavailable: the Transport and Road Research Laboratory (TRRL) approachand the Highway Design and MaintenanceStandards (HDM III) approach.

32. A version of the TRRL formulawas applied in Sri Lanka in the ADB SecondRoad ImprovementProject.81 The formulawas based on TRRL Report No. 673, and estimated the road patching required due to cracking and potnoles on pavementswith structuralstrength numbers between 2.75 and 3.25.

33. This formuladoes not take accountof the specificstructural number of each individual road section, nor of the time since the last periodic maintenance. An alternative formulationwhich takes account of structural strength and estimatesroughness more directly in millimetersper kilometeris shown in TRRL LaboratoryReport 1057, but still does not take accountof the time since the last periodicmaintenance.9 1

34. The versionof the HDM III approachconsidered most suitablefor this projectshows the followingrelationship for flexiblepavements without extensive cracking:l

RI(t) - [RIO+ 725 (1 + SNC)-4" NEA(t)]eol 0 53st, where

RI(t) & RIo - roughnessat times t and t - 0, in m/km IRI; NE4(t) - cumulativeequivalent standard axle loadingsto time t, in million ESA per lane, since constructionor the last overlay; t - age of pavement since overlay or construction,and SNC - the modified structuralnumber.

1/ Second Road ImprovementProject. Phase I Final Report. Preparedby DHV Consulting Engineers et. al. for the Governmentof Sri Lanka and the Asian Development Bank, July 1987, pp. 6-7. i/ L.L. Parsley and R. Robinson, TRRLLaboratory Report 1057, TiheTRRL Roa Investment Model for Develon_ng Countries (RTIM2), 1982, p. 18.

William D.O. Patterson, Road Deterioration and Maintenance Effects: The Highway Desien and Maintenance StandardsSeries, World Bank, 1987, p. 304 et. seq. -77-

Annex 9 Pag 18 of 30

This model takes account of the specific structuralnumber of each individual road sectionand of the time since constructionor the last overlay, and it was found to provide better predictiveresults than the TRRL's RTIM2 model. Using the model, there is a unique roughnessprogression on each road, dependingon the opening-yearroughness, the trafficvolume and mix, the age of the pavement and the structuralstrength of the road.

Road Roughness Progress.ons

35. Axle Loads. The progressionof road roughnessover time is dependent on the volume of traffic using the road, expressed in terms of the number of passes of axles of different weights. The axle weights are expressed in "EquivalentStandard Axles' (ESA),calculated as follows:

ESA - (axle load in kilograms/8160)4-55

36. Axle load surveydata have been derivedfrom a number of studiesand from recent surveyscarried out on some of the projectroads by RDA. Table A4.2- 7 shows the sourcesof the data, the estimatesof axle loads made in the various studies,the axle loads for the range of vehicle types used for the calculation of vehicle operatingcosts for fully-loadedand empty vehicles,and the values selectedfor use in the economicanalysis. ll

37. The axle load estimatesby vehicletyve are multipliedby the number of vehicles of each type on each sectionof the project roads in each year of the analysis, in order to derive the 'cumulativeequivalent standard axle loadings to time t, in million ESA per lane". The ESAs represent the contributionof each vehicle type to the progressionof road roughness. The average of the ESL factors derived for the economic analysis (avetageESI, per vehicle) is approximately0.408, comparedwith a country-wideaverage of 0.379 estimatedin the TSPS.

38. RoughnessMeasurements. Detailed roughness measurements using a bump integratorwere carried out by RDA on all of the project roads in 1988. These measurementswere supplementedby the observationsof RDA and TSPC consultants in 1989. RDA also carriedout supplementarymeasurements and estimatedthe 1990 roughnesson all of the project roads. The resultsare shown in Table A4.2-8.

39. RoughnessForecasts 'With' Project. The applicationof the HDH III formula requiresas one of its inputs the time (term 't' in the formula) since constructionor the last overlay. The roads generallyhave not had overlaysat specific periods, but the maintenance carried out over the years could be consideredto have had an effect similarto an overlayat some time in the past. To approximatethis past year, trafficwas 'backcast'to estimatethe cumulative equivalentaxle loads for each past year. An openingroughness in the 'year of last overlay'was assumed,at 2,000 mm/km for the roads designatedfor asphaltic conzrete surfaces ('R+A' roads) and 3,000 mm/km for the roads designated for

ll/ Only one empty vehicle is shown, to illustratethe insignificantaxle loadingof empty vehicles. -78-

Page 19 of 30

regulating course surfacos ("R" roads). These estimates, along with the 1988 roughness measurements described above and estimates of the modified structural numbers provided the necessary inputs for the application of the formula to estimate the usquivalent year of last overlay" for each of the project roads. The formula could then be applied to each road, using the 1988 measured roughness as the RI. term; the axle load forecasts shown in Section 4.2 as the NE term; the structural numbers shown in Section 8.2 as the V;-t 'erm and the equivalent year of last overlay as the "t" term. This procedure vvs used to forecast the rough- ness from the measured value in 1988 to the estimated values in the various opening years of the roads.

40. The equipment used in the RDA Bump Integrator tests was calibrated on the basis that new asphalticconcrete in Sri Lanka had a roughnessof 2,000 =rkm. This value, which was also used in the ADB study referred to earlier, has been used in this study for the roads to be surfaced with asphaltic concrete. A value of 2,800 rn/km has been used for the roads to be surfaced with an asphalt regulating course. The progressions of road roughness on the rehabilitated roads start with thesoe values and are determined thereafter by the application of the HDM III formwla.

41. The timing of the periodic resurfacing of the roads following rehabilitation is also considered a function of the strength of the road and the cumulative axle passes since rehabilitation or the last resurfacing. These are both representedin the formula for the progression of roughness, so the reaching of "trigger"roughness levels for each type of road (R+A, and R) was adopted as an appropriatecriterion for determiningthe timingof resurfacing. The trigger levels of roughnesswero set at 2,700 rn/km. for roads surfacedwith asphaltic concrete and 3700 for roads surfaced with the regulating course only, with the roughness after resurfacingdeclining to 2,200 and 3,000 om/km. respectively.

42. RuhbUss Forecasts :without" Project. Road roughness in the "without project" case also progresses at a rate determined by the strength of the road tnd the cumlative axle passes. However, the engineeringjudgment is that the roughness in this case does not decreise with the application of a periodic resurfacing. Instead, it is assumed that this periodic resurfacing in the "without" case will only slow down the rate of deterioration, and that roughness will then increase at a more linear rather than exponential rate. The formula for the progression of roughness has therefore been modified to a more linear form for the "without" case to provide a rough approximatlon of the progresslon of roughness under these assumptions.1 It is also assumed that, in the "without' case, the roads deslgnated for an asphalt concrete surface will not exceed a maximum roughness of approximately 6,500 rn/km. over the time period covered by the analysis, and that the roads designated for a regulating-course surface will not exceed 7,000 q /km. This is relativelyconsistent with previous studies. It ia also supported by the observation that the highest measured roughness on any of the project roads in 1988 was 6,010 an/km, whiLch suggests

I2/ The effect of applying the more comson assumptlon of a reduction in roughness following periodic resurfacing In the "without case was tested and found to have little effect on the results. -79-

zI Page 20 of 30 that, under the currant maintenance regime, repairs tend to be carried out at or before the time this level of roughness is reached. 10.4.2.5 £r x

43. This system calculatesa unique roughnessprogression for each road, dependingon the beginnig roughness,road strength,time since last overlay, traffic mix and axle loads, and cumulative axle passes over time. It is therefore difficult to eompare the resulting progressions with the more generalized approaches used in some of the othor studies. However, a general comparison with other studies indicates that this system is reasonably consis- tent with the progrossdons applied in other studies in Sri Lanka and elsewhere, and it has the major advantage of taking account of the unique characteristies of each road and traffic flow. -80- Annex 9 Page 21 of 30 TALEA4.2-1

1990UEHICLE OPERATING COSTS: BASIC DATA

MlediumLare Car 4ND Pickwo Minibus Bus Bus TruckA TruckB TruckC TruckD

Mlitsu- Tatal fake Nissan Nissan Nissan bishi Ashok/ Isuzu nitsu, Isuzu Isuzu Mlodel SLX1.3 Patrol 5023 Urvan Rosa Isuzu HTRll4 FU13 NKR552NPR596 tapwcityISeats/kg) 5 6 1500 10 26 50 7000 14000 2500 4250 GrossVehicle Ueight (kg) 1230 2450 2550 2750 5200 11000 12500 21400 4400 7000 Enginesize (lc) 1270 3246 2289 1900 3298 5785 5785 14816 2771 3856 Fuel TyDe Petrol Diesel Diesel Petrol Diesel Diesel Diesel Diesel Diesel Diesel FuelCons. (lt/l00OC.a 80 110 100 130 150 270 280 350 140 180 Oil Cons.(lt/lOWb) 0.5 0.7 0.7 1.0 2.0 4.0 4.0 5.0 2.0 2.0 Swe Parts (%of econ. veh. Pricew 10O0ke) 0.30 0.25 0.25 0.30 0.15 0.10 0.15 0.15 0.20 0.20 LifetimeSares Cost(S 36 50 50 96 72 96 75 90 6l 6( UorkshooLabor Hours (hours/l000hi 4.0 5 4 5.0 6.0 10.0 8.0 8.0 5.0 5.0 No. of tires titted 4 4 4 4 6 6 6 10 6 6 AverageTire life(OOOskg) 30.0 30 30 30.0 30.0 55.0 50.0 50.0 30.0 30.0 Vehiclelife (years) 10 10 8 8 8 12 10 10 8 8 CapitalRecovery Factor(l) 0.163 0.163 0.1W 0.187 0.187 0.147 0.163 0.163 0.187 0.187 Averaeamunal km (000) 12.0 20 25 40.0 60.0 80.0 50.0 60.0 40.0 40.0

(1) Assuseso>rortunitv cost of capital of 10 wercent. Sources:ColoIbo motor dcaiers, TRRIL and Brazil studies, Consultant'sestisates. Anex 9 -81- Page 22 of 30

TA8LEPA.2-2

1990VEHICLE OPEPAtL"IG COSTS: UNIT COSTS (Rts)

HWe! Lrge WI1TCOSTS- FINANCIAL Car 4 1 Pikup Minibus Bus BusTru'e.: A TruckB TruckC truck0 _. ... ,.._..-...... Nevvehicle less tires S50000986000 613000 550000 8ISOM1220000 78001 200000 58000 610000 Fuel Derliter 20.00 9.85 9.85 20.00 9.85 9.85 9.85 9.85 9.85 9.85 0il oer liter 28 28 28 28 28 28 28 28 28 28 TireIcover & tube) 2500 4600 3800 2900 5000 9490 8000 11200 3Q00 S090 Workshotlabor per howr 54.0 56.0 54.0 54.0 54.0 5S.0 54.0 54.0 54.0 54.0 Crewwages wr month 0 2028 2028 2376 4362 7860 4620 4620 4180 4180 Insumceper year 2400 3600 3000 3000 6000 6600 6000 6000 6800 4800 Arruallicence fees 500 3000 1200 2500 2760 1950 3000 3000 1200 200M . Directoverheads Per yewr 0 5000 5000o 5o0 7000 10000 10 l000100 s0

Mldium LUre UNITCOSTS- ECONOlIIC Car 4 ID Pickup Minibus Bus Bus TruckA TruckB TruckC Truk 0

Novvehicle less tires 270000 542000 490000 385000 650000 980000 6250001600000 460000 49000D FuelDer liter 7.32 6.78 6.78 7.32 6.78 6.78 6.78 6.78 6.78 6.78 Oiloer liter 26.6 26.6 26.6 26.6 26.6 26.6 26.6 26.6 26.6 26.6 Tire (cover& tube) 1450.0 2668.0 220.0 1682.0 2900.0 5504.24640.0 6496.0 2262.0 29M0.0 Uor*shoolabor per hour 54.0 54.0 54.0 56.0 54.0 54.0 54.0 5.0 54.0 54.0 Crew ges er wnth 0 2028 2028 2376 4362 7860 4620 4620 4180 4180 Insuranceoer year 2400 3600 3000 3000 6000 6600 6000 6000 4800 4800 Directoverheads per Yr 0 4807.7 4807.7 4807.7 5769.0 9615.4 9615.4 9615.4 4807.7 4807.7

Sources:Colombo motor dealers, CeylonPetroleum Cororation, Ceylon Tire Corooration,SLCTB, Private bus W truck operators.Registrar of NotorVehicles. Central Bank of Sri Lwef, Govuent Gazette,Consultant's estimates. -82- Anne 9 Page 23 of 30

TABLEA.2-3

n1990WICLE WUTIN6 COSTS PEo 1000 KlLIEIE (R s per 1000kilwters)

Iedits Large flNICIAL Car 410 Pidw inib Bus Bus Tru A truckS TruckC Truck0

Fuel I Oil 1614.0 1103.1 100M.6 2628.0 1533.5 2M.5 2870.0 3587.5 1435.0 1U9.0 Tires 3.3 613.3 506.7 386.7 1000.0 1035.3 960.0 2240.0 780.0 1000.0 SoweParts 1174.5 1964.8 1776.3 1674.8 1413.8 1421.0 1359.4 300.0 133.0 1421.0 lMork*oLabor 216.0 270.0 216.0 270.0 324.0 540.0 432.0 432.0 270.0 270.0 Dert,ciation 2750.0 U37.0 2758.5 1546.9 1528.1 1143.8 14.0 1652. 1631.3 1715.6 Interest 1725.4 2783.8 1377.9 772.7 5.0 870.1 80.9 107.0 814.8 857.0 Crewses 0.0 1216.8 973.4 712.8 872.4 1179.0 1108.8 924.0 125.0 1254.0 Insuriace 166.7 150.0 100.0 100.0 83.3 62.5 100.0 83.3 100.0 100.0 LicenceFees 41.7 150.0 8.0 100.0 46.0 24.4 60.0 50.0 30.0 50.0 Overheads 0.0 250.0 200.0 125.0 116.7 125.0 200.0 166.7 125.0 125.0

Totalcost/lOOD km 01.6 12938.8 8961.4 8316.8 7675.7 9172.5 9375.0 13653.2 777.1 8621.6

edui Large E; 5C Car 4 MD Pi*w flinihus Bus Bus TrukA TruS TrUckC tnick D

FuelA Oil 598.9 764.4 696.6 978.2 1070.2 1937.0 200M.8250a.0 1002.4 1273.6 Tires 193.3 355.7 293.9 224.3 580.0 600.S 556.8 1299.2 452.4 580.0 So-e Parts 810.0 1355.0 1225.0 1155.0 975.0 9.0 937.5 2400.0 920.0 980.0 bork* Ldor 216.0 270.0 216.0 270.0 324.0 540.0 42.0 432.0 270.0 270.0 Deomiation 1350.0 2439.0 2205.0 1082.8 1218.8 918.8 1125.0 24Oi 1295.8 1378.1 Oowt. cost of coital 847.0 1530.2 1101.4 540.9 604.5 698.9 705.8 1505.8 646.3 688.4 Crevtaes 0.0 1216. 973.4 712.8 872.4 1179.0 1108.8 924.0 1254.0 1254.0 nswce 200.0 180.0 120.0 75.0 100.0 82.5 120.0 100.0 120.0 120.0 Oeheads 0.0 240.4 192.3 120.2 96.2 1202 192.3 160.3 120.2 120.2

Totalcost/ilOWO 4215.2 8351.6 7023.7 5159.2 5841.0 7056.8 713.0 11727.2 4079.0 6464.3

Basedan med roa vtit S rou of 3800unb. in flat to rollim terrai Soirce:hrvious Tables Annex 9 -83- Page 24 of 30

TALE1A.24

BASICVEHICLE OEIUIIN6 COSTS, 1990 (EconmicCosts in Rs. wr 1000kb.) Tnruks Sall fed. Large CostItem Car 4 Pickw tus Bus Bus A t C 0

Fuel& oil 598.9 764.4 6*.6 978.2 1070.2 1937.0 200M.82506.0 1002.4 1273.6 Tires 19.3 355.7 295.9 224.3 580.0 600.5 556.8 129.2 £52.4 S80.0 Sre Parts 810.0 1355.0 1225.0 1155.0 975.0 980.0 937.5 2400.0 920.0 980.0 lorkso Libor 216.0 270.0 216.0 270.0 324.0 50.0 432.0 452.0 270.0 270.0 DOeciation 1350.02439.0 2205.0 1082.8 1218.8 918.8 112S.0 2400.0 1295.81378.1 OCC 847.0 1530.21101.4 540.9 60.5 698.9 705.8 IS0.3 66.3 688.4 Crew sWe 0.0 1217.0 973.6 712.8 872.3 1179.0 110.8 924.0 1254.012I.0 Inswice 200.0 180.0 120.0 75.0 10D.0 82.5 120.0 100.0 120.0 120.0 Overlead 0.0 240.4 192.3 120.2 96.2 1U0.2 192.3 160.3 120.2 120.2

Total 4215.2 8351.8 7023.9 5159.2 S809 7056.8 7183.011727.2 6079.0 666.3

Est. * 53.0G 15.8S 31.3t 25.1* 74.9* 100.08 75.7* 24.3* 50.0% 50.0t

Mtd.Avg., Rs/1000 km. 5746 5670 7057 826 6372

Bae on aed rod ith 8I rou0wessof 3800 Wb. in flat to rolline temin. Swce: owioustables Ann"x 9 -84- Page 25 of 30

TABLE4.2-5

C01rARISONOf VOC INDICES FROM DIFFERENT SOURCES

CAR PICKUP/LIGNTTRUCK

111 (21 151 (4) (5) (6) (7) (1) 12) (3) (t) 15) t61 (7) Avg. Avg. Roughness Uorld Avg. 1. 2. world Avg. 1. 2. (Misk) AD8 TSPS Bt INDIAHOX III All 386 ADB TSPS Bk INDIAHI III All 386

2000 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 3000 1.02 1.06 1.09 1.07 1.03 1.05 1.06 1.01 1.05 1.08 '.03 1.06 1.06 1.06 6000 1.06 1.17 1.19 1.15 1.09 1.13 1.16 1.04 1.13 1.16 1.06 1.12 1.10 1.10 5000 1.11 1.34 1.29 1.22 1.13 1.22 1.24 1.09 1.25 1.26 1.10 1.19 1.17 1.17 6000 1.17 1.54 1.61 1.31 1.19 1.32 1.36 1.14 1.40 1.34 1.13 1.31 1.26 1.25 7000 1.26 1.73 1.53 1.39 1.28 1.$3 1.47 1.19 1.56 1.6 1.17 1.62 1.35 1.33

LARGEBUS HEAVYTRUMK

(1) (2) (3) (4) (5) (6) (7) (1) (2) (3) (4) (5) (6) (7) Avg. Avg. Roughness Woeld Avg. 1, 2, World Avg. 1, 2. (mike) AD8 TSPS Bat 1MIA HOIII All 3 &* ADS TSPS Byt INDIAMMf III All 3 66

2000 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 30 1.03 1.07 1.08 1.03 1.04 1.05 1.05 1.02 1.05 1.09 1.03 1.10 1.06 1.05 .000 1.08 1.20 1.16 1.05 1.07 1.11 1.12 1.07 1.12 1.19 1.07 '.18 1.13 1.11 5000 1.14 1.39 1.26 1.08 1.11 1.20 1.22 1.13 1.23 1.29 1.11 1.29 1.21 1.19 6000 1.21 1.56 1.35 1.11 1.14 1.27 1.31 1.19 1.36 1.41 1.16 1.39 1.-0 1.27 7000 1.28 1.68 1.46 1.14 1.20 1.35 1.39 1.25 1.62 1.53 1.21 1.49 1.38 1.35

511. IIEDIJ BUS SELECTEDINDICES

(1) (2) (3) (51) (6) 17) Avg. Sall Rfou ss orWld Avg. 1, 2, Ro*ss I rled. LUrge Light Heavy (mIke) AD8 TSPS But IIA NMfIII All 3 5 6 (./1k) Car Bus Bus Truck Truck

2000 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2000 1.00 1.00 1.00 1.00 1.00 3000 1.01 1.06 1.08 1.03 1.04 1.04 1.04 3000 1.06 1.06 1.05 1.06 1.05 6000 1.06 1.18 1.16 1.05 1.12 1.11 1.11 000 1.16 1.11 1.12 1.10 1.11 5000 1.09 1.35 1.26 1.08 1.19 1.19 1.19 5000 1.24 1.19 1.22 1.17 1.19 6000 1.14 1.51 1.35 1.11 1.31 1.28 1.28 6000 1-36 1.28 1.31 1.25 1.27 7000 1.19 1.61 1.46 1.16 1.62 1.36 1.35 7000 1.47 1.35 1.39 1.33 1.35 -85- Annex 9 Page 26 of 30

TAELEPA.2-6

VOCRELATED TOROAD RO(SS

VOC2000-000 m/ks. RoadRoughnesslyehicle Opewating Cost Indices ------(RsPer 100 bk)

Car Small Car Small Roughness4WD & Med. Large Light Heavy Roughness4tU & Wed. Large Light Heavy (rn/km) Picku Bus Bus truck Truck (/ks) PicktD Bus Bus truck Truck

2000 1.000 1.000 1.000 1.000 1.000 20O 5112 5173 6381 5856 7546 2400 1.024 1.016 1.020 1.016 1.020 2400 5234 5277 6483 S950 7647 3000 1.060 1.040 1.050 1.040 1.050 3000 5418 5432 6636 6091 7924 3200 1.076 1.95t 1.064 1.052 1.062 3200 5500 5506 6725 6161 8014 380 1.124 1.096 1.106 1.088 1.098 3800 5746 5670 7057 6372 8286 !000 1.140 1.110 1.120 1.100 1.110 4000 5827 5794 7082 6442 8377 4800 1.220 1.174 1.200 1.156 1.174 4800 6236 6208 7491 6770 8860 5000 1.240 1.190 1.220 1.170 1.190 5000 6339 6311 7593 6852 8980 5600 1.288 1.226 1.256 1.202 1.222 5600 6584 6498 7823 7039 9222 6000 1.360 1.280 1.310 1.250 1.270 60ED 6952 6777 8167 7320 9584 7000 1.540 1.350 1.390 1.330 1.350 7000 7872 '191 8614 7789 10188

Source:Table A4.2-5, vith values betmeeneven Soure: Roughness/VOCindices avlied to the thousandr/ks derivedby interolation. economicvehicle oeating costs shon in Table A4.24. Annex 9 -86- Page 27 of 30

TAEA4.2-7

AuELOwDS (I)

Truck,2-Axle Truck. ESL Smll Rled. Large 13-T 10-T 6.5-T Three-Factor Swrce Descriltion Cu Van Bus u Bus Load Load Load Emptr Axle (2)

I Atnoral lel loads 0 0.01 0.01 0.02 0.67 8.28 3.08 0.98 0.01 1.69 I Uith201 overload 0.02 O.7 6.96 2.16 3.6 1 Aver vehicle 0.02 0.68 3.05 0.96 1.61 1 Veightedby traffic 0 0.001 0.002 0.68 0.392---- 0.001 0.379

2 Singlevehicle 0.11 0.04 0.42 - 2.93---- 24.8

3 Singlevehicle - 0.24 - 0.01 3 Utightedby veh loa (3 0.337 -- 1.152- 0.008 2.02 -- 0.235--

4 RDASer, Ratulsu 0.90 0.ao 0.00 0.20 - 0.60- 0.10 0.100.1-1.3 4 RDASiey, oos 0.00 0.00 0.00 0.20 -1.00-- 0.10 0.00 0.00 6 RMASwver. KatMed.-Pilnd. 0.00 0.00 0.00 0.30 - 1.50 0.10 0.00

5 TSPC,loaded vehicle 0 0 0 C.O05 0.6 7.37 2.76 0.38 0.006 2.22

Selectedavra Cr Small vehicletype usd 61w I red. Lrge Trck Truck in thisnlysis, PU &us s A S C& D aswidngv9. loads. - - - - 0.00 0.015 0.40 2.50 0.60 0.408 Notes: (6) (6)

(1 neasu-edin eouwlvalentstadrd ODk (18,000 i bt) sineleaxle loads (ESM). ES a (axleload in k1/8160V4.55. (2) Usinman a 0Atry-vi*cvrau traffic mdx,ESL/Laieller s ADT x E factorx 3651;. (3) Thissowce aes aile load vill sta eboutth se overthe design life of the rue. (6) Basedonorotionso truckA , andC &, shominSorcel, D. 6-5.

1. LouisBersg Int. et. al., Trmot Sctor Plaug Sti, 1988,Vol. 6, op. 8-23to 8-29,& 9-23. Usingoower factor t.55. Notbased an a sweifitc aw. 2. Scottlilson Kirhtick et. ei., Tr,m*t radsinteumwce Project, 1985, p. 78. Pwerfactor 6.55. fe-site srveYat dAulla(A6 & AQ9; wihed 396 vehiles. 3. OWVet. cl.. A SSed broblurwentufroject, 1987,Co. 3-26 to 3-33,& 3-U to 3-. Srye of 6 sites;weighe 850vhicles. *. RDAale loadsns at btml (kU*eAd. la. 9) on19 Feb. 88 (1679 veicles); Boos (km. 109) on 15 Seot. 87 (729 vehicles)ond on tte KtlediaPiliyndla Ad.(321 vehicles). The sPle incluiedonly 15 trutcs ith 3or moreaxles soIs nMt nclusiwin tW ru. 5. TrsC:theretical axle loa for vwou vehiclesboad on foAl ESAx (axle load in kg/816011.55,assholn on the folloeig ge.

(TableAI.2-7 continwed onnext oage -87- Annex 9 Page 28 of 30

TableMA.2-7 (contlied) TSPCEstmetes

Est.Avg. Load Distribution(I) AxleI Axle2 Axle3 GW AxleI Axle2 Axle3 ------Total (kg.) (t) (S) (t) (kg) ESA (kg) ESA (kg) ESA ESA

Loadedlinibus 1800 52% 4*8 936 0.000 864 0.000 0 0.000 0.000 Loadedheaiut Bus 4160 a0t 60% 1664 0.001 2196 0.005 0 0.000 O.00S Loadedlg Bus 11000 40% 60% U400 0.060 6600 0.381 0 0.00C O.U4 LoadedTruck A 12500 32% 68% 1000 0.039 8500 1.204 0 0.000 1.213 LoadedTruck B 21400 23% 37% 10% 1922 0.100 7918 0.872 8560 1.243 2.216 LeadedTruck C 110 47% 53% 2068 0.002 2332 0.003 0 0.000 0.005 LoadedTruck 0 700D 32% 68% 2240 0.003 4760 0.086 0 0.000 0009 Emty TruckA 1500 53i 17% 2385 0.004 2115 0.002 0 O.OW 0.006 Truck,13-ton load 18000 30% 70% 5400 0.153 12600 7.219 0 0.000 7.372 Truck,10-ton load 140 30% 70% 1350 0.057 10150 2.699 0 0.000 2.756 truck,6.5-ton Id. IO0 35% 6S 3500 0.021 6500 0.355 0 0.0 0.377

(ESA:(axle load in kg/8160]4.55)

() ad ona smle freathe RDA xile load irvey (Source 4).

gzm i _ _ S.=:====w m:::ZuZgaZ Annex 9 Page 29 of 30

TALEA&.2-8

ROADRWUHI(SS MEASUREMIENTS ANDESTIIIATES

GRrYJI

RDACE 1.1 A. C.OVERLAYS (AC) Rough-Dec.89 T5C RDAEst. Est. -- …------Meas- ness Rough- Roug- 1990 10 ured Dateof Prog.1Inss ness Rough-Rough- Project Lergth Rough-leasure- Year Per Est. mess ness NUmber RoadLirk (Km) ness atnt (mm/ke)Prog. IDec. 89) (k/k) (m"/k)

(1) (2) (3) (4) (5) 16A1 (7) (8) 1-1AC noratuwa- Kalutara (Km. 1945) 28.0 3150 10.06.88 300 3600 3600 QO00 S

1-2AC Kalutara- Ambalangoda(Xs.46-85) 60.0 3600 08.02.88 300 4175 S900 3900 S

1-3AC Ablangoda- Galle (Km.86-119) 33.0 2950 08.02.88 300 3525 34OO 3700 S

1.2 REGIJATIW3CMRSE (RC)

14 RC Katunayake- Vevanoda - NittWxa 26.0 463 05.10.88 200 880 5200 S i-3 RC ToPDU- Dankotuw - Giriulla 32.0 4500 06.10.88 200 4750 4750 SOO0 S

16 RC Biyanvila- Ganemulla 8.6 5500 13.10.88 200 5750 5500 S

I-7 RC Seedw- Udumoola 12.0 5250 06.10.88 2M0 5480 5000 5250 S

1-8RC flatara- Hakdana 24.0 5380 28.09.88 200 5630 400 5

Notes

Colum4: the roughnss orowession er Year.isbasd on thevalues shwm in Awmndix10.1. Table 2: roadsvith traffic ) 3000ADT * 300 emlkyr.; trattic (z 3000 200 nlalyr. (an xroximately). Colun5: rougMhessestiated onbasis of sesauedroughess (Col'nn 2) andestimted wrogression(Colmu ). Column6A: rough estimtes basd on briefvisual inspectioms carried out in Deceder1989. Colum7: roughessferecast for 1990 adeby RDA. Colun8: resultsof reviewby the fA CoordinatingEineer (S Sae as Colum5 I/or 7).

(TableM.2-8 contiued on next mge -89- Annex 9 TA8£A4.2-8 (Continued) Page 30 of 30

CEERD Rough-Dec.89 RDAEst. Est. 2.1 A. C.OVERLAYS (AC) Meas- ness Rough- 1990 1990 ------ured Dateof Prog./ ness RDA- ROUgh-Roug- Project LengthRough- fleaswre- Year Per Measw ness ness amber RoadLink (Ke) ness nent (m/ik) Po. Nov.89 (m/kml(u/ku) ...... _ . . _...... ______(1) (2) (3) (4) (5) (68) (7) (8) 11-1AC alle - tiatara(Km. 118-162) 44.0 3910 08.02.88 200 Q290 4500 S 11-2AC Kadila - uIunella 12.5 5830 01.10.88 300 635S 5830 11-3AC Peliyasoda- Kadavtha 8.0 3350 12.10.88 30 3875 4000 11-IAC Dehivela- flaharagama (8) 7.6 4960 03.10.88 300 5485 5800 tt-5 AC St. Jne.)hStreet (8) 2.8 5080 05.10.88 300 5605 5060 6300 11-6AC Navinna- Mlirihana 3.4 5380 03.10.88 300 5905 6300 11-7AC Hnwitiya-lattalt-Hmdala(B) 4.0 5350 01.10.88 300 5875 5350 11-8AC ChillavRoad 1.3 5260 05.10.88 300 5785 5120 6300 11-9AC Katubedda- Piliyandala Road (B) 4.7 6010 03.10.88 30 6535 6300

2.2 RECIJLATINGCOURSE (RC)

11-10RC Metara- Dickwella((m. 163-1831 21.0 5070 01.10.88 200 5300 5200 530 11-11RC Dickwella- Hambantota (Kn. 183-241) (Km.183-220) 38.0 52C1 (Km.221-241) 21.0 5200

Totals,Km. 183-241 59.0 4700 26.03.88 200 5050 5200 5

11-12RC latara- Akuressa 21.0 5070 01.10.88 200 5320 5200 11-13RC Uattala- latra Road(B) 7.2 5970 12.10.88 200 6220 820 5970 S 11-14RC Negombo- Giriulla 1.6 5100 05.10.88 200 5350 4700 5200 11-15RC Hantota - Uelaraa (Ke.240-322) 82.0 4700 13.06.88 200 50W 700 6000 11-16RC Beliatta- Tangalla 6.5 5200 26.03.88 200 5550 5200 S 11-17RC Kirindiwita- Ganeeulla 3.0 5200 13.10.88 200 5450 5200 II-18 RC 1swnaya- Pnipitiya . 6.0 5700 20.10.88 200 5930 5700

Notes

Column4: the roughnessDrogression war Year is basedon thevalues shon in AvpeDaix10.1, Table 2: roadsvith traffic ) 3000AOt: 3000/ka/yr.: traffic (: 3000: 200.lkm/yr. (avroximately). Coluw5: r*tess estinatedon basisot neasuredrou*ress (Column21and estimted wroression(Colm 41. Colum68: eassremtscarried out by RDAin November£989. Colun7: roughnessforecast for 1990made byRDA. Colm8: resultsof revie by theRDA Coordirating Engineer (S Se as Column5 3/or 7). -90-

Annex 10 Page 1 of 2

SRYELABIA

THIRD ROADSPROJECT

Selected Documnts and Data Available in the Project File

A. SZLECTEDREPORTS AND STUDIES OF THE SECTOROR SUBSECTOR

Al - TransportStatistics (Sri Lanka), 1988 Preparedby: TransportStudies and PlanningCentre, Inter-Ministerial Committeefor Coordinationand Planningof Transport

A2 - Standard Specificationsfor Constructionand Maintenanceof Roads and Bridges, 1989 Prepared by: Rvad DevelopmentAuthority, Ministry of Highways

A3 - Second Road ImprovementProject, TA No. 792-SRI,July 1987, Phase I Final Report Prepared by: DHV Consulting Engineers, The Netherlands (in associationwith ResourcesDevelopment Consultants Ltd, Sri Lanka)

A4 - EngineeringServices Report--Management Aspects, April 20, 1990 r-reparedbys InternationalEngineering ConsultantsAssociation (Japan), in association with Resources Development Consultants Limited,Sri Lanka, sponsoredby the OverseasEconomic Co-Operation and Road DevelopmentAuthority

D. SELECTEDREPORTS AND STUDIESRELATING TO PROJECT

B1 - Draft FeasibilityReport, April 1990 Preparedby: Road DevelopmentAuthority

B2 - EngineeringDesign Report, Volume 1, February 1990 Preparedby: Asphaltin (Pvt) Ltd., Sri Lanka

Package 02: Colombo-GalleRoad (Km 68 to Km 120) Printoutsgiving: existing and designedcentreline levels, designed crossfalls,designed edge elevationsand designedcarriageway widths at each cross section, February1990

Package 02t Colombo-GalleRoad (Km 68 to KM 120) Printoutsgiving; (a) asphaltwearing couzse; (b) bituminousbound regulatingcourse; (c) aggregatecourse for edge widening, Feburary 1990 -91-

A* ex 10 Page 2 of 2

B3 - Repor Concerning Institutional and Project Mnag8ement Issues, November 30, 1989 Prepared byt M. Dalton, Consultant

84 - Appraisal Mission of the Export-Import Bank of Korea (Government Agency for the EDCF), Minutes of Discussions, May 8, 1990

B5 - Detailed Economic Evaluation Worksheets (computer print-outs, including diskettes)

C. SELCTED WORKING PAPERS, T SBLES,DRAWINGS AND IAPS

Cl - Road Development Authority, Approved Cadre - February 1990

C2 - Draft Corporate Plan, 1989-1993, Road Development Authority

C3 - Passenter and Freight Traffic - Sri Lanka Government Railway (RDA/ES/T/TRS), May 3, 1990

C4 - Road Roughness Data on Kandy-Jaffna Road and Colombo-Horana Road (RDA/ES/TIWB III), April 26, 1990

CS - Bump Integrator Result Sheet, May 4, 1990 Road Development Authority

C6 - Project Cost Table Details (computer print-outs, including diskettes)

C7 - Patching of Pot Holes Using Premix

C8 - Public Investment Programue - 1990 to 1994, April 2, 1990

C9 - Road Mileage Table - 1978

C10 - Pavement Rehabilitation Operations

Cll - Passenger and Freight Traffic Statistics, 197S - 1988

C12 - Construction, Improvements and Maintenance of Highways, Bridges, Causways, Culverts and Airfields

C13 - Government Capital Expenditure, 1988-1992 Government Capital Expenditure, 1989-1993 Economic Overheads

C14 - Packages 1 and 4: Pavement Design, Construction Costs and Bills of Quantity. Pavement Evaluation Data Sheet Prepared by: Engineering Consultants, Ltd., Colcabo, Sri Lanka -92-

Table1.1

SRI LANKA

THIRDROADS PROJECT

Passangerand Freight Traffic

1978 1979 1980 1981 1982 1983 1984 198: 1986 1987 1988

A. PassengerTraffic (BillionPassenger-Km)

Railways a/ 3.7 4.1 3.8 3.0 3.1 2.5 2.3 2.1 2.0 2.0 1.8 SLCTB/RTBs 20.4 22.2 22.7 18.5 18.7 16.3 15.6 14.5 15.1 16.0 15.4 PrivateBuses 0 0.6 2.6 6.9 9.4 13.3 13.6 14.0 14.2 14.4 14.5 PrivateCars 1.3 1.2 1.0 1.0 1.7 2.0 2.2 2.4 2.6 2.8 3.1

25.4 28.1 30.1 29.4 32.9 34.7 33.7 33.0 33.9 35.2 34.8

B. FreightTraffic (MillionTon-Kms)

Railways 280.6 279.7 206.3 218.8 216.8 223.8 262.6 231.9 204.0 195.0 176.0 Roads ,90.0 588.0 761.0 805.0 873.0 884.0 920.0 919.0 932.0 948.0 954.0

870.6 947.7 967.3 1,023.8 1,089.81,107.8 1,182.6 1,150.91,136.0 1,143.0 1,130.0

a/ The dropin passenger-kssfrom 1983 was mainlydue to the curtailment of long-distance services to the North and East. SRI LAWA

TMIl RODASPRDJWr

Voheil. Realstrationr by Cla. -t V.h,l.

SD lof9 1982 166 1969 1low 19"6 1967 196 v*hlm lb. SI ii". MD. No. "D. S NO. S NO. S N. S .

lbS.' Care 110,678 6.5 126,266 84.01 11,1r6 32.'S 8,68s 81.43 141,780 29.91 1406.67 28.61 185,24 27.5 147,88? 26.39 149,00D * 25.43

Sbtorcyclee 79,606 25.91 96,61 26.11 107,543 2B.95 121,840 27.91 138,2 29.2S 161,878 831.01 17,717 38.2S 21,441 86.51 226,100 86.51

Due" 907,82 6.25 2,092 6.26 26,172 6.83 s0.4397.01 84,661 7.SS s8,809 7.45 40,214 7.15 87,064 6. SS 6.6000 * .S3

Trudk. s,es 16.73 63.479 1.1S 69.706 17.43 77.714 17.65 85.701 18.11 92,780 17.31 95,580 16.91 92.968 15.95 79,400 * 18.31

Trecr-Traile r 1,245 0.43 1,246 0.8s 1,248 0.35 1,2S2 0.31 1,252 O.81 1,258 0.26 1,2t8 0.25 1.253 0.2S 1,100 * 0.25

Subtotal 276,811 e8.83 810,924 88.61 86,827 84.26 860.097 84.41 401,996 64.71 442,252 65.01 479,968 64.9e 492,62 84.41 492.400 * 63.95

Othr Veh;clee as

Emrgfecy Vehecice 967 0.31 1,78 0.81 1,117 0.31 1,148 0.81 1,179 0.25 2,828 0.4S 6,259 1.1i 9,566 1.61 11,170 1.91 Lad Tractors 87.s88 11.25 40,681 11.01 48,8s8 10.91 47,616 10.91 51,278 10.86 54,8816 10.31 58.080 10.31 s9,990 10.318 6,936 10.41 Land TraPlero 17,206 S1S 18.145 4.91 18.646 4.71 19.887 4.41 20.07s 4.26 20.618 4.01 21.195 3.71 21, 25 3.73 22,045 3.61

______...... __ .... ______

Subtotal 88,783 16.71 59,904 16.21 68,802 15.83 68,121 15.61 72,582 15.81 77,797 15.01 6S,484 15.1S 91,3838 15.6S 94,151 16.13

TO"a 8s4,24 100.021 70,628 100.01 399,629 100.01 4SF.218 100.0 474,52B 100.01 520,049 100.01 *505,452 100 -% 584,006 100.01 5866,51 100.01 n - _ - - - - - _ ------_ - -_%

* The fircrer are corrected to includ de-registratiooe. *e Fi;r cginie, dbulancee, hearan., etc.

Source: Department af Registration of Motor Vehicles. bu i9uet_ tP. euiJurlrdtt it_ mu ttu i Tim

Psuwlegs z R.O.A. tCumi Is Lust Om.mstt dsssbes 7To. bus (ta ) * 8 I__mw teoul Pk"d UPSO"d ToW hp _ M Total _uvod _aved Totl PTtd thtW_ Tot TI T PW

t_ra 1,464.48 Nitl 1,44.48 1,si.04 8.U1 1,9i6.19 2,=.*. 8,892.84 7.963. 78854 1.526. 1,664.7? 81181.0 7.818.2" 13.067.23 13.65 s.6 i' t.l 1.412. Mil 1412.t32 1.95.49 579.74 2.i.il 66.5t4 2.60.61 S.8l.4f 97.87 4..71 e I 42.W.t 7,245.06 12,173.74 12.0 5. _d. 1,146.tl8 #GIt1til 1146.m8 l.7 608t.08 1,766.48 76.t6 4.317.80 5.4.10 8.47 419.08 ' *.U4.U1 5,60. 6.743.74 9.27 8.3i _ Z,*9b.,£.27.40 mit 2.87.60 1.M.,i 74.47 2,611.8 1.67.64 9.041.401o."844 6".Yi 2.18.25 2.11. 87. 1196.t2 17.M.04 1s.73 S.A Ib..*jV.uta4.s 1.M.n tti 1.M2.8 1.84.84 41.70 2.08.81 37.1111, ll.18. 11.444.28 64." 864.06 WA.S 2,9I.47 12.151.13 15,124.60 16.08 *.15 It mmds Cgstgml 512.40 NFit 62.40 1.210.29 M5.? 1,745.96 71.08 8,ne6.79 8,707.3 11V.91 4J.2.4 84.92 2,271.6 9,60.47 11,1176.10 12.5 2.41 UVA 92.9t Nil 97.1 1,062.77 489.0 1,802.43 287.7 1,894.40 I.63.88 95.19 2.18.40 S,1.9 8,8.60 492.06 7,376.46 7.32 S6.8 _ _bonuoous 1,041.97 ;I 1,041.97 664.64 277.06 1,142.70 748.61 2.34.28 2.96,.01 m.9L 2,7M0.42 3.114.4* 8.04.818 S.291 6,29.11 6.79 $.15

______~~~~~~~~~~~~~~~~~~~~~~~~~------_ 7Tom$ 10,442.42 Nil 10,442.42 10,79t4.77 4,66.73 18,861.80 7,.00.24 48,t.52 82,s248.s7 2,506.14 18,66.40 16,5.74 O,76M2.37 63,600.26 *4.888.42 100.00 a2.89

ulizad lus jau".s os o"u u aWtrad Sri Luoks Platuties lop For."tStXea D_r Itm_ti Authewity 4 La_d Cmisuio.e Daer-taut tBut Mbm rcod hi ImOruaot Oft_e11 Dtwritr (409.87) d Ltu Cmamisiomer'* Domrt.ut he nw* bour io lot Ow abovr teolosi_., *lec. thi Iuroeu*ioa 1c -ot svai lAble an a Pravi*cial Imeim. lbs tout 1 ileoutesg sipsofeuds vaur- thmesee oresrnlst,os samst to ,2.8g7 ba.

Sgrti: MA, Trtffic sd Pl_arltt Dhitlett, FPbrwry 1"0. Table 2.2 SRI LANKA

THIRD ROADsPROJECT Public Investmentin Transuort (1981-1993)

(a) Total Investments

Z Change Yar 1981-85 1982-86 1984-88 1985-89 1986-90 1988-92 1989-93 1988192- Transpor ------(In current Re million)------1989/93

Highways 1,069 3,395 2,741 4,965 4,294 9,203 10.140 10.2

vailways 1,683 1,201 2,762 5,191 5,329 9,675 8,971 -7.3

SLCTB/Rd.Tr. 1.402 1,136 0 54 7 596 1,899 218.6

Ports & Shipping 695 687 1,170 1,076 712 758 3,644 380.7

Air Transport 520 1,276 3,750 4,004 2,207 2,680 1,257 -53.1 …------_------_------_-__------__------TOTAL 5,369 7,695 10,423 15,290 12,549 22,912 25.911 13.1 …_--______Total PIP 89,579 115,295 106,307 155,284 134,416 165,024 146,010 -11.5 ______-- ______--…_____---- ______- ______Transportas I of Total PIP 6.0 6.7 9.8 9.8 9.3 13.9 17.7

(b) PercentageDistribution

\ Year 1981-85 1982-86 1984-88 1985-89 1986-90 1988-92 1989-93 Trransport - Mode

Highways 19.9 44.1 26.3 32.5 34.2 40.2 39.1

Railways 31.3 15.6 26.5 33.9 42.5 42.2 34.6

SLCTB/Rd.Tr. 26.1 14.8 0.0 0.4 0.1 2.6 7.3

Ports & Shipping 12.9 8.9 11.2 7.0 5.7 3.3 14.1

Air Transport 9.7 16.6 36.0 26.2 17.6 11.7 4.9

TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Sources Public Investment(1981-85; 1982-86; 1984-8e; 1985-89; 3 6-90; 1988-92;1989-93), National Planning Division, Ministry I Pinance and Planning,Colombo, Sri Lanka. SRI LANKA

THIRDROADS PROJECT

Summaryof Provisions/Expenditures on Roads (SL Rs Million)

Year 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 19B9 ------_------__------Network 24.767 25,150 25,150 25,150 25,150 25.466 25,457 25,476 25.523 25,634 25.679 25,679

General Budgeted 3.1 5.4 6.8 0.8 0.9 1.8 1.3 2.3 3.0 13.3 6.7 8.8 Administration ------Actual 3.6 5.1 0.7 0.8 1.1 1.7 1.2 2.3 2.9 9.7 3.9 N/A

Maintenanceof Budgeted 56.0 81.6 95.2 140.0 154.1 172.6 179.5 416.0 350.5 260.0 260.0 260.0 roads, bridges ------and culverts Actual 70.0 97.8 122.0 134.3 153.6 176.2 370.4 116.1 219.1 246.7 224.8 260.0

Rehabilitation and Budgeted 53.0 142.5 367.2 259.0 255.5 225.0 221.0 671.0 663.1 940.0 895.0 2,592.9 improvementsof ------__--______-______-_-__ capital assets Actual 102.0 255.3 407.4 215.4 235.0 202.4 502.5 678.6 876.2 784.1 650.2 1,014.8

TOTAL Budgeted 112.1 229.5 469.2 399.8 410.5 299.4 401.8 1,089.3 1,016.6 1,200.0 1,161.7 2,861.7 …------__------__------_------Actual 175.6 358.2 530.8 350.5 389.9 280.7 874.1 797.0 1,098.2 1,040.5 878.9 1,274.8 a/ a/ Under-expenditure is due to delay in procurement of equipmentfinanced by OECF.

NOTES:- General Adcinistration: Includes RDAand Ministry provision and expenditures - Maintenance: includes recurrent provisions and expenditures for roads, bridges, culverts. causeways.etc. - Rehabilitation/Improvement of Capital Assets: includes foreign-funded projects, i.e., construction, additions to and 1mprovementsof roads, bridges, structures, buildings and acquisition of plant and equipment. SAr Source: RoadDevelopmet Authority, April11990 0 t- Table 2.4

SRI LANKA

THIRDROADS PROJECT

RoadDeveloiment Authority - ProposedFive-Year Expenditures

(SLRs Million)

TOTAL - 1990-1994

Activity Type 1990 1991 1992 1993 1994 Foreign Total GOSL Aid

PreventativeMaintenance 148.0 210.0 450.0 300.0 330.0 1,438.0 1,438.0 0.0

Repairsof FloodDamage 50.0 75.0 85.0 95.0 100.0 405.0 405.0 0.0

Surveys.Investigations and 12.0 27.4 15.0 15.0 15.0 84.4 61.4 23.0 Researchand Developo.it1/

Rehabilitation/Improvement:2/

Roads/Pavements 1,127.6 1,117.0 1,606.5 1,431.5 1,381.5 6,664.1 2,494.1 4,170.0

Bridges 29.0 137.5 220.0 245.0 220.0 851.5 851.5 0.0

NewCapital Works 3/ 525.0 288.0 152.0 800.0 360.0 2,125.0 647.5 1,477.5

Equipment4/ 578.5 3,448.0 593.0 279.G 0.0 4,898.5 1,488.5 3,410.0

TOTAL 2,470.1 5,302.93,121.5 3,165.5 2,406.5 16,466.57,386.0 9,080.5

1/ Includessurveys, investigations, feasibility studies and settingup of database pavement/bridgemaintenance management system.

2/ IncludesIDA and ACB-financedroad sections and associated structures.

3/ Includesproposed "Katunayake Expressway" and NewVictoria and KelaniBridges.

4/ Includes equipmentto be procuredunder OECF program.

Source: RoadDevelopment Authority, April 1990 -98-

Table 3.1 SRILANKA

THIRDROADS PROJECT

RoadRehabilitation Proare.

Length Rw*gwmns MODT0b crIpti1n Contract No. Nameof RoadLink Km tM/II/ 2/ of Vork 3/ Package

1. loratuwa-Kalutara 28.0 4.000 7.303 R+A VB/3/1 2. Kaiutara-Amabalangoda* 40.0 3,900 2.678 R+A B/3/1 3. Anabalangoda-Galle* 33.0 3.700 3.644 RM VB/3/1 4. Katunayake-Nittambuwa* 26.0 5.200 2.299 A 3S/3/2 5. Toppu-Giriulla 32.0 5,000 1,966 R W3/3/2 6. 81yanw1la-6anemulla* 8.6 5.500 1.609 R V/3/2 7. Seeduwa-UIdugampola* 12 0 5.250 1.064 R VB/3/2 8. Natara-HaJmna * 24.0 5.400 2,374 R W3/3/3 S. Galle-Natara 44.0 4.500 1,906 RA VB/3/3 10. Kaduwella-H.nvella 12.5 5.830 2.782 R+A VB/3/5 11. Pellyagoda-Kadawatha 8.0 4,000 22,861 R+A V3/3/5 12. Dehlvala-Nahragapa 7.6 5.800 3,662 RA V3/3/S 13. St.Joseph St. Negambo 2.8 6,300 7.138 RlA V3/3/2 14. Navinna-Nir1hana 3.4 6,300 2,896 RlA V3/3/5 15. Hunupit1ya-Hendala 4.0 5,350 3.570 RlA VB/3/5 16. Chillaw Road 1.3 5.350 5.740 R+lA 3/3/2 17. Katubedda-P111yandala 4.7 6.300 2.301 RlA 3/3/5 18. Natara-Dickwella 21.0 5.200 1.595 R VB/3/4 19. Dickwella-Hembantota 59.0 5.200 1.347 R 3/3/4 20. Natara-Akuressa 21.0 5.200 1.072 R V3/3/3 21. Vattala-lahara 7.2 5.970 1.594 R V/3/5 22. Negaubo-6ir1ulla 1.6 5.200 2.062 R I/3/2 23. Beliatta-Tangalla 6.5 5.200 814 R V/3/4 24. Klrlndlwlta1-G alla 3.0 5.200 1.120 a 3/3/5 25. Isurupaya-Pann1ipitya 6.0 5,700 1.747 R W/3/5

* a Designcompleted

Notes: 1. Asat endof 1989. Roundedto netrast 10. 2. Asat endof 1989. 3. RlA- Regulatingcourse plus asphalt wearingcourse. R * Regulating/sealingcourse only.

Sou.ce: RDAFasibility Study. April 1990.Noratuwa University ad TSPC. -99-

,Table 3.2 SRI

THIRD ROJECT

Brlidg Ibhab1ltat1on Prosra

Rehb1il- Bridge Dimesions Bridge titton -- C------ontract l0. Nm of RoadLink No. Vorks Length width Packal

1. Noroatgmm-Klutres aone 2. Kalutara-AbAlangods 45/5 a 16.0 * I x 16.0 7.4 x 2 x 1.5 V3/3/2 51/1 A 4S.0 a 2 x 23.0 7.4 x 2 x 2.0 II13121 3. hbala*wods-6ale 5/4 R 33.0 a 3 s 11.0 7.4 x 2 x Z.0 11/3122 56/2 V 8.0 2 x 4.0 7.4 x 2 x l.S 3/3/28 4. Katunayake-Nlttuha 6/1 * vh0 7.0 I 7.07 7.4 x 2 x 1.2 1/3/29 11/1 V+0 22.0 : x 11.0 7.4 x 2 x 1.2 3/3/29 13/1 * V1+0 4.5 a x 4.4 7.4 x 2 x1.2 110/3/29 1/1 ^ R 32.0 a 2 x 16.0 7.4 a 2 x 2.0 3l/3/23 S. Tepou-1iriulla NOne 6. Blyala-Sa_1lla 1o 7. Sadwa-Udgapola None S. Natara-HdNmane 6/8 VO 13.0 a I x 13.0 6.8 a 2 x 1.2 3/3/29 6 R S.0 aI x S.0 6.8 x 2 x 1.2 30/3/2S 1311 R 4.0 a 1 x 4.0 6.8 x 2 x 1.2 3V3/25 9. Galle.lata-a 94/2 * a 7.0 * I x 7.0 7.4 x 2 x 1.5 I/3/24 94/1 * R 16.0 a I x lS.0 7.4 x 2 x l.S 10. Kadumlla-Hamwella NO1 I1. Peitygoda-Kadtha Name 12. Daht la r None 13. St. JosephSt. Nemo None 14. Nevinna-H1riham Nne 15. uwtwitlya-liandal 2/2 V.0 16.0 a 2 x 8.0 7.4 x 2 x 2.0 3/3/29 I. Chllaw Road Nmne 17. Katubdds-Piliyandla Ne 1J. Natra-Dckwella 112/1 R 16.0a I t 16.0 7.4 X 2 x 1.2 3/3/25 19. Dickmella-limbntota 116/3 V.0 5.2 * I x 5.2 7.4 x 2 x 1.2 H/3129 119/1 R 26.0 - 2 x 13.0 7.4 x 2 x 1.2 3/3126 121/3 V+O 6.r-1X 6.? ?.4x2x1.2 3/3/29 144/2 V. 4.6 * I x 4.8 7.4 x 2 x 1.2 1/3/29 20. tar-Aurwr 8/5 5h 7.0 * 1x 7.0 6.8 x 2 x 1.2 3S/3/24 21. Vattala-Nhera 4/2 R 14.0 a I x 14.0 7.4 x 2 x 1.2 V5/3/27 22. Nawbo-61rtulla none 23. Usitatta-Tnwil Nne 24. Kirindlwita-anualls 1/3 0 16.0 a I x 16.0 5.5 x 2 x 1.0 3O/3/29 25. Iurupaya-Pannpltiya Ne 26. HmAhentota-Wslaaya IS/2 V 4.4 *I x 4.4 6.8 x 2 x 1.2 31/3/29 163/3 V 4.0 aI x 4.0 6.8 x 2 x 1.2 W/3/29

* DDsip cxlet.d Iote: 1. R - Reconstrtcion.V a Widening. 0 * Redcking. 2. Cadefor id,eDumistons: Length: Total length (a) * No.of span x lengthof ech sp. Vidth: Width of carriagway (a) x No. of foeotaystime widthof footways(a)

_arioe:_ed vl_Re t lr1ty -100- Table 3.3

SRI LANKA

THRD ROADS Pk,.FfCT

Cost of Vehicles and Eauiuaent

Estimated Cost Item Quantlty SLRs

1600 cc Saloon Car with A/c 3 3,500,000

Microcomputer 3 750,000

Photocopymachine with collating/ report productionfacilities 1 350,000

Electronic typewriter with interface facility 2 300,000

Trip meter and Macintosh prcbe 1 300,000 (for investigations)

Office equipment and stationeryfor PMNU 500,000

Survey equipment (complete set) to be used by Highway Design Section and by PMMUstaff for checking purposes 1 1,000,000

TOTAL 6,700,000 -101- TABLE 3.4 SRI LANKA THIRD ROADS PROJECT ESTIMATED COSTS FOR ROADS

Taxes Package Road Section Length Costs Foreign & No. SLRs m US$ m Element Duties km Local Foreign Total Local Foreign Total % % WB/3/1 Moratuwa-Kalutara 28.0 57.2 79.0 136.3 1.43 1.98 3.41 58.0% 15.3% Kalutara-Ambalangoda 40.0 81.8 112.9 194.6 2.04 2.82 4.87 58.0% 15.3% Ambalangoda-Galle 33.0 67.4 93.1 160.6 1.69 2.33 4.01 58.0% 15.3% Total Base Costs 101.0 206.4 285.1 491.5 5.16 7.13 12.29 58.0% 15.3% Physical Contingencies 10.3 14.3 24.6 0.26 0.36 0.61 58.0% 15.3% Price Contingencies 46.6 84.6 131.2 0.25 0.78 1.02 64.5% 15.3% Total Civil Works 263.3 383.9 647.3 5.66 8.26 13.92 59.3% 15.3% WE/3/2 Katunayake-Nittambuwa 26.0 34.7 47.9 82.6 0.87 1.20 2.06 58.0% 15.3% Toppu-Dankotuwa-Giriulla 32.0 42.7 59.0 101.7 1.07 1.47 2.54 58.0% 15.3% Biyanwila-Ganemulla 8.6 11.5 15.8 27.3 0.29 0.40 0.68 58.0% 15.3% Seeduwa-Udugampola 12.0 16.0 22.1 38.1 0.40 0.55 0.95 58.0% 15.3% Negombo Township 1.6 2.1 2.9 5.1 0.05 0.07 0.13 58.0% 15.3% St. Joseph St, Negombo 2.3 3.7 5.2 8.9 0.09 0.13 0.22 58.0% 15,3% Chilaw Rd, Negombo 1.3 1.7 2.4 4.1 0.04 0.06 0.10 58.0% 15.3% Total Base Costs 84.3 112.5 155.? 267.8 2.81 3.88 6.70 58.0% 15.3% Physical Contingencies 6.0 8.3 14.3 0.15 0.21 0.36 58.0% 15.3% Price Contingencies 37.1 61.3 98.4 0.33 0.66 0.99 62.3% 15.3% Total Civil Works 155.6 224.9 380.5 3.29 4.75 8.04 59.1% 15.3% WB/3/3 Galie-Matara 44.0 94.1 129.9 224.0 2.35 3.25 5.60 58.0% 15.3% Matara-Akuressa 21.0 30.1 41.6 71.7 0.75 1.04 1.79 58.0% 15.3% Matara-Hakmana 24.0 35.1 48.5 83.6 0.88 1.21 2.09 58.0% 15.3% Total Base Costs 89.0 159.3 220.0 379.3 3.98 5.50 9.48 58.0% 15.3% Physical Contingencies 13.8 19.0 32.8 0.34 0.48 0.82 58.0% 15.3% Price Contingencies 72.2 112.9 185.2 0.83 1.41 2.24 61.0% 15.3% Total Civil Works 245.3 352.0 597.2 5.16 7.38 12.54 58.9% 15.3% WB/3/4 Matara-Dickwella 21.0 31.7 43.8 75.6 0.79 1.10 1.89 58.0% 15.3% Dickwella-Rambantota 59.0 89.2 123.2 212.3 2.23 3.08 5.31 58.0% 15.3% Beliatta-Tangalla 6.5 8.8 12.2 21.0 0.22 0.30 0.52 58.0% 15.3% Total Base Costs 86.5 129.7 179.1 308.9 3.24 4.48 7.72 58.0% 15.3% Physical Contingencies 13.0 17.9 30.9 0.32 0.45 0.77 58,0% 15.3% Pr ce Contingencies 60.6 94.6 155.2 0.70 1.18 1.89 60.9% 15.3% Total Civil Works 203.3 291.7 495.0 4.27 6.11 10.38 58.9% 15.3% WB/3/5 Kaduwella-Hanwella 12.5 28.2 38.9 67.1 0.70 0.97 1.68 58.0% 15.3% Peliyagoda-Kadawatha 8.0 30.4 41.9 72.3 0.76 1.05 1.81 58.0% 15.3% Dehiwala-Maharagama 7.6 23.4 28.1 46.5 0.51 0.70 1.21 58.0% 15.3% Nawinna-Mirihana 3.4 9.5 13.1 22.5 r.24 0.33 0.56 58.0% 15.3% Hendala-Hunupitiya 4.0 9.0 12.5 21.5 2.23 0.31 0.54 58.0% 15.3% Katubedda-Piliyandala 4.7 10.8 14.9 25.7 u..27 0.37 0.64 58.0% 15.3% Wattala-Mahara 7.2 9.8 13.5 23.4 0.25 0.34 0.58 58.0% 15.3% Kirindiwita-Ganemulla 3.0 3.6 5.0 8.7 0.39 0.13 0.22 58.0% 15.3% Isurupaya-Pannipitiya 6.0 7.7 10.6 18.3 0.19 0.27 0.46 58.0% 15.3% Total Base Costs 56.4 129.3 178.6 307.9 3.23 4.46 7.70 58.0% 15.3% Physical Contingencies 12.9 17.9 30.8 0.32 0.45 0.77 58.0% 15.3% Price Contingencies 45.3 74.6 120.0 0.41 0.82 X 23 62.2% 15.3% Total Civil Works 187.6 271.1 458.7 3.97 5.73 9.70 59.1% 15.3% TOTAL BASE COSTS 737.2 1018.1 1755.4 18.43 25.45 43.88 58.0% 15.3% TOTAL PHYS. CONTINGENCIES 56.0 77.4 133.4 1.40 1.93 3.33 58.0% 15.3% TOTAL PRICE CONTINGENCIES 261.9 428.1 690.0 2.51 4.85 7.36 62.0% 15.3% TOTAL CONSTRUCTION COSTS 1055.1 1523.5 2578.7 22.35 32.23 54.58 59.1% 15.3% DESIGN & SUPERVISION [1] 109.8 115.9 225.7 2.35 2.48 4.83 51.3% 4.0% TOTAL ROADS [2] 417.2 1165.0 1639.4 2804.4 24.70 34.72 59.42 58.5% 12.5%

Notes: 11] Includes Contingencies. 121 Figures may not total because of rounding. -102- TABLE 3.5 SRI LANKA TIIIRD ROADS PROJECT ESTIMATED COSTS FOR BRIDGES

Tsxes Package Bridge No. 6 Pd. Section Costs Foreign 6 No. SLRra a DS5Um Element DOuties Local Foreign Total Local Foreign Total % I 18t3221 5./1 X&luvara-Ambalargoda 15.6 15.6 31.3 0.39 0.39 0.78 so.0e 10.2t Total Bast Costs 15.6 15.6 31.3 0.39 0.39 0.78 SO.0* 10.2% Phrsical Contingencies 2.3 2.3 4.7 0.06 0.06 0.12 50.0% 10.2% Price Contingencios 3.3 4.7 8.0 0.01 0.04 0.05 58.2% 10.24 Total Civil Works 21.3 22.6 44.0 0.46 0.49 0.95 51.5% 10.2% WB/3/22 54/4 Abalangod-caile, *.4 9.4 18.8 0.23 0.23 0.47 50.0% 10.2% Total Bass Costs 9.4 9.4 18.8 0.23 0.23 0.47 50.0% 10.2* Phyaical Contingencies 1.4 1.4 2.8 0.04 0.04 0.07 50.0$ 10.2% Price Contingencies 2.0 2.9 4.8 0.01 0.02 0.03 50.2% 10.2% Total Civil Works 12.8 13.6 26.4 0.28 0.29 0.57 51.5% 10.2% 16/3/23 1/1 Katunayeke-Nittambuwa 11.5 11.5 22.9 0.29 0.29 0.57 50.0t 10.2% total Bas- Comte 11.5 11.5 22.9 0.29 0.29 0.57 50.0% 10.2% PhysicalContingencies 1.1 1.1 2.3 0.03 0.03 0.06 50.0% 10.2t Price Contingencies 2.3 3.3 5.6 0.01 0.03 0.04 58.2% 10.2% Total Clvil work. 15.0 15.9 30.8 0.32 0.34 0.67 51.5S 10.2% 18/3/24 92/2 Call*-Hatara 3.9 3.9 7.; 0.10 0.10 0.19 s0.0 10.2% 94/1 Celle-Hatara 5.7 5.7 11.5 0 14 0.A 0.29 50.0% 10.2% S/5 Matara-Akurossa 2.1 2.1 4.2 0.e 0.05 0.10 50.0% 10.2% Total Base Costs 11.7 11.7 23.3 0.29 0.29 0.58 50.0% 10.2% Physical Contingecies 1.2 1.2 2.3 0.03 031 0.06 50.0% 10.2% Prlce Contingenoes 2.7 3.6 6.3 0.01 G 0.05 57.2t 10.2% Total Civil Works 15.6 16.S 32.0 0.33 0.35 0.69 51.4% 10.2% VS/3/25 11211 Hatara-Diokvella 5.2 5.2 10.4 0.13 0.13 0.26 50.0 10.25 12/6 Matara-tlbunan 1.6 1.6 3.1 0.04 0.04 0.08 SC.^% 10.2t 13/1 Natar.-Hakmana 1.3 1.3 2.6 0.03 0.03 5 0 50.j% 10.2% Total Baae Costs 9.1 8.1 16.2 0.20 0.20 0 50.0% 10.2% PhysicalContingencie 1.2 1.2 2.4 0.03 0.03 (.* 50.0%# 10.2% Pri,e Conttinge oies 2.2 2.9 5.1 0.01 0.03 c 56.4< 10.2% Total Civil Works 11.5 12.2 23.7 0.25 0.26 0.51 51.4% 10.2% 163/3/24119/1 bickvellr-Pntotr 8.3 8.3 le.7 0.21 0.21 0.42 50.0% 10.2t Total Base Coste 8.3 8.3 16.7 0.21 0.21 0.42 50.0 10.2% PhysicalContingecies 1.3 1.3 2.5 0.03 0.03 0.06 50.0% 10.2% Price Contingencle, 2.4 3.0 5.4 0.02 0.03 0.04 56.2% 10.2% Total Civil Works 11.9 12.6 24.6 0.26 0.27 0.52 51.4% 10.2% 14/3/27 4/2 Iateala-Wahbe S.2 5.2 10.4 0.13 0.13 0.26 50.0% 10.2% Total Bast Costs 5.2 5.2 10.4 0.13 0.13 0.26 S0.0% 10.2% Physical Continrgcies 0.3 0.8 1.6 0.02 0.02 0.04 50.0% 10.2% Priee Contingencies 1.5 1.9 3.4 0.01 0.02 0.03 56.2% 10.24 Total Civil Works 7.5 7.9 15.4 0.16 0.17 0.33 51.4t 10.2t 1W/3/28 45/5 Xalutara-icAangoda 5.7 5.7 11.5 0.14 0.14 0.29 50.0% 10.2% 56/2 bG1- 1.6Iaanod 1.6 3.1 0.04 0.04 0.08 50.0% 10.2% ?otal Base Coats 7.3 7.3 14.6 0.18 0.18 0.36 50.0% '0.2% Pbs.ilealContingenctes 1.1 1.1 2.2 0.03 0.03 0.05 50.0% 10.28 PriCe Contingencies 1. 2.4 4.1 0.01 0.02 0.03 57.2% 10.2% TOta Clvil Wlork 10.2 10.8 20.9 0.22 0.23 0.45 51.4% 10.2% 163/3/2911613 bickDella- Hmabantoca 1.6 1.6 3.1 0.04 0.04 0.08 50.0% 10.2t 121/3 Dickvella-Hombantot, 1.8 1.8 3.6 0.05 0.05 0.09 50.0% 10.2% 144/2 Ckella-Nntotu 1.3 1.3 2.6 0.03 0.03 0.07 50.0% 10.2* 1 9/2 N_notelly 0.8 0.8 1.6 0.02 0.02 0.04 50.0% 10.2% 163/3 HIembrtota-elaaa0.6 0.6 1.3 0.02 0.02 0.03 50.0% 10.2% */3'atar-%a|X|-lbl1k 3.6 3.6 7.3 0.09 0.09 0.10 50.0% 10.2% 6/1 getuneyake-o itt 1.6 1.6 3.1 0.04 0.04 0.08 S0.0% 10.24 11/1 3atuayake-Nittalbtt 5.2 5.2 10.4 0.13 0.13 0.26 50.0% 10.2% 13/1 WAtunayake-_itta tuma 0. 0.8 1.6 0.02 0.02 0.04 50.0% 10.20 1/3 Klirndlita-4enmull 1.0 1.0 2.1 0 03 0.03 0.05 50.0% 10.2% 2/2 nhnPle-Bunqpittya 3. 3.6 7.3 0 09 0.09 0.18 50.04 10.2% Totl Bas Costs 22.0 22.0 44.0 0.55 0.55 1.10 50.0% 10.2% tPh teal Contingenci 3.3 3.3 6.6 0.08 0.08 0.16 50.0* 10.2% C eontingenls 8.0 9.7 17.7 0 07 0.11 0.18 54.8 10.2% Total Civil WIrs 33.3 35.0 68.2 0.71 0.74 1.45 51.2% 10.2% TOTAL S COSTS 99.1 99.1 198.2 2.48 2.48 4.95 50.0% 10.2% TOtA PS. CWtnsclS 13. 13 7 27.4 0.34 0.34 0.69 50.0% 10.2% TOMAl IPICS CONTINGUECIES 26.2 34 2 60.4 0.16 0.33 0.50 56.6% 10.2% TOa eOUSTU aINcoss 139.0 147.0 286.0 2.99 3.15 6.14 51.4% 10.2% outGI 6 sIPSIOII (13 12.9 3.4 16.3 0.28 0.07 0.3S 20.9% 4.0% ToA MInS 12J 151.9 150.4 302.3 3.26 3.23 6.49 49.t7 9.8S

Otess I11) IncludesContingecies. 121 Ftguresmay wt total because of rounding. -103- TABLE 3.6 SRI LANKA THIPD ROADS PROJECT ESTIMATED TOTAL PROJECT COSTS

Taxes Component Costs Foreign G SLRs m US$ l Element Duties Local Foreign Total Local Foreign Total %

ROADS - Base Costs 737.2 1018.1 1755.4 18.43 25.45 43.88 58.0% 15.3% Pt.ysicalContingencies 56.0 77.4 133.4 1.40 1.93 3.33 58.0% 15.3% Price Contingencies 261.9 428.1 690.0 2.51 4.85 7.36 62.0% 15.3% Total Civil Works 1055.1 1523.5 2578.7 22.35 32.23 54.58 59.1% 15.3% BRIDGES - Base Costs 99.1 99.1 198.2 2.48 2.48 4.95 50.0% 10.2% Physical Contingencies 13.7 13.7 27.4 0.34 0.34 0.69 50.0% 10.2% Price Contirngercies 26.2 34.2 60.4 0.16 0.33 0.50 56.6% 10.2% Total Civil Works 139.0 147.0 286.0 2.98 3.15 6.14 51.4% 10.2% FLOOD *fEHABILITATION- Base Cost 67.2 22.4 89.6 1.68 0.56 2.24 25.0% 9.0% Physical Contingencies 6.7 2.2 9.0 0.17 0.06 0.22 25.0% 9.0% Price Contingencies 11.3 5.6 16.8 0.01 0.04 0.06 33.1% 9.0% Total 85.2 30.2 115.4 1.86 0.56 2.52 26.2% 9.0% EQUIPMENT - Base Costs 3.8 3.8 7.6 0.10 0.10 0.19 50.0% 35.0% Physical Contingencies 0.4 0.4 0.8 0.01 0.01 0.02 50.0% 35.0% Price Contingencies 0.3 0.7 1.0 0.00 0.00 0.00 68.3% 35.0% Total 4.5 4.9 9.4 0.10 0.11 0.21 S2.0% 35.0% TECHNICAL ASSISTANC) Project Support 92.3 96.4 188.7 2.30 2.41 4.72 51.1% 4.0% Physical Contingencies 8.9 8.1 17.0 0.22 0.2C 0.42 47.9% 4.0% Price Contingencies 26.2 34.3 60.5 0.20 0.36 0.55 56.7% 4.0% Total 127.4 138.8 266.2 2.72 2.97 5.69 52.1% 4.0% Policy Development 6.3 25.2 31.5 0.16 0.63 0.79 80.0% 4.0% Physical Contingencies 0.0 0.0 0.0 0.00 0.00 0.00 80.0% 4.0% Price Contingencies 1.4 7.3 8.7 0.01 0.07 0.08 83.9% 4.0% Total 7.7 32.5 40.2 0.17 0.70 0.87 80.8% 4.0% Total Technical Assistance 135.1 171.3 306.4 2.89 3.67 6.57 55.9% 4.0% TOTAL BASE COSTS 1005.9 1265.0 2270.9 25.15 31.62 56.77 55.7% 13.4% TOTAL PHYS. CONTINGENCIES 85.7 101.8 187.5 2.14 2.55 4.69 54.3% 13.2% TOTAL PRICE CONTINGENCIES 327.3 10.1 837.4 2.89 5.66 8.55 61.4% 13.8% TOTAL CONTINGENCIES 413.0 611.9 1024.9 5.04 8.20 13.24 60.1% 13.7% Project Preparation Facility 0.0 20.0 20.0 0.00 0.50 0.50 100.0% 0.0% TOTAL PROJECT COSTS (1t 1418.9 1896.9 3315.8 30.18 40.33 7A.51 57.2% 13.4%

Notes: (1] Figures may not total because of rounding. -104-

Table 4.1 SRI LANKA

THIRDROAD PROJfCT

TrafficForecasts

Car Small Project Opening4WD 3Ned. Large LightHWavy Tota1 1990to YearsYears Years llumber RoadLink Year PickvA Bus Bus Truck Truck ADT opn.year 1 - 7 8 - 14 15 - 20

GROUPI (Des1gir Roads)

1-1 AC Moratuwa-Kalutara 195 3.052 2.347 831 2.206 804 9,241 4.0% 6.0X 5.0 4.01 1-2 AC KIlutara-hmbulangoda 1995 1.056 812 288 763 278 3.197 3.0% 5.0 4.0% 3.0% 1-3 AC ubablangoda-6alle 1995 1.477 1,136 402 1.067 389 4,471 3.0X 5.0% 6.0% 4.02 1-4 RC Katunayake-Veyangoda-Nittatuwa1995 727 727 404 812 238 2.908 4.01 6.0% 4.0X 4.01 I-5RC Toppu-Dankotuwa-Giriulla 1995 663 332 207 930 355 2.487 4.0X 5.0% 4.02 3.02 1^6RC Ilyanvtla-Ganenulla 1995 653 461 384 460 78 2,036 4.01 6.0% 4.0% 4.0X 1-7 RC Seeduw-Udugampola 1995 551 214 306 188 87 1,346 4.0% 6.0% 4.0% 4.02 1-8 RC Natara-Hakmana 1997 .. 230 478 684 420 195 3.007 3.01 5.0% 4.0% 3.02

GROUP11 (RoadsNot Yet Designted)

11-1 AC 6alle-Natara 1997 688 596 264 685 182 2,415 3.0% S.X 6.0% 4.0% 11-2 AC Kaduwela-Hmnmella 1996 924 451 52 1.093 632 3,662 4.0% 6.0X 5.0% 4.0% 11-3 AC Peliyagoda-Kadawatha 1996 13.720 5,575 3.041 5,787 1.960 30.083 4.0% 5.0% 4.0% 4.0% 11-4 AC Dehiwela-aharagam 1996 1,819 1,339 701 696 264 4.819 4.01 6.0% 5.0% 4.02 11-5 AC St. JosephStreet 1995 3,504 1,654 435 2,631 807 9,031 4.0% 5.0 4.0% 3.0% 11-6 AC Novinna-Nirihana 1996 2.030 680 135 837 129 3.811 4.0% 5.0% 4.0% 3.0X 11-7AC Hu upitiya-Wattala-Hendala 1996 2,122 908 761 660 247 4.698 4.0% 6.0% 5.0O 4.0X 11-8 AC Chillaw Road 1995 3,619 806 222 1,994 622 7.263 4.0% 5.0% 4.0% 3.0% 11-9AC Katubedda-PillyandalaRoad 1996 1,304 458 212 163 291 3.028 4.0% 6.0X 5.0% 5.0O 11-10RC btara-Oickwella 1997 523 583 259 486 169 2.020 3.0% 5.0% 4.02 3.0X 11-11RC D1ckwella-Hanbantota 1997 544 366 195 454 147 1.706 3.01 5.0% 4.01 3.0X 11-12RC Natara-Akuressa '997 377 280 164 411 126 1.358 3.0X 5.0% 4.0% 3.0X 11-13RC Vattala-NaharaRoad IF' 1996 758 239 150 667 283 2.097 4.0% 5.0O 4.0X 3.0% 11-14RC Negambo-6iriull 1995 664 391 2P8 927 364 2.634 4.0% 5.0% 4.0X 3.0% 11-16RC Bellatta-Tangalla 1997 173 303 300 187 68 1,031 3.0X 5.0% 4.01 3.0% 11-17RC Kirtndiwita&-arnulla 1996 247 433 429 268 97 1.474 4.0% S.0% 4.0% 3.02 11-18RC Isurupaya-Pannipit1ya 1996 1,229 160 178 534 198 2,299 4.0% 5.0 S.OX 4.02 sRI LAWA

'PM RAD"S PROdECt

Eat imetd Ccnstruction Coet* wndSdchdle

C6TI0J COSTMs. 000) _4XC C38TRUCTM COST _ _EA_

Re d or;do" Ttra il Open- Projoet L agth ------;no Number RPAd Link (Km) Fir. Ecar. Fi,. Ecen. fin. Ecen. 1991 1992 1993 1994 1995 1996 Yner

OROWi I ;00,0100

1.1 A. C. DVLA'VS (AC)

I-1 AC Wratwom Kolutvrs (Km. 19-45) CK 19.-26) 8.0 136,300 115.446 (Km. 27-29) 3.0 0 (K-. 80-32) 3.0 0 0Ob. 33-S' 4.0 0

Tatals, Km. 19-4S 28.0 136,300 115,446 136.300 115,4t4 30.016 25.398 33,479 26,553 0 0 1994 1-2 AC Kalutera - Ambelnaed (Km. 46-SS) 40.0 194.600 164,a26 42.600 30,434 237,400 20S,261 52,848 44.717 56.94S 46,750 0 0 1994 1-3 AC Aalergods - .1 1. (Km. 86-119) 33.0 164., 20 136,028 21,900 19,666 2.500 155,694 40,461 34,2S3 4.151 3S.810 0 0 1994 0

TOTAL AC 101.0 401.500 416,301 64.700 5,.101 556,200 474,401 128,344 104,368 137.576 109.112 0 0

1.2 TLATIM COURSE(RC)

I-4 RC Katuneya.. - Voy.rod - Nlttamuwm 26.0 62,600 6e,962 38.000 34,124 120,S00 104.0'S 0 33,306 33,306 37.471 0 0 1995 1-S RC Top.u - 0 - Oir;vlks 32.0 101,700 S6.140 101,700 '6,140 0 27,565 27,565 31.010 0 0 1995 I-6 RC 'diyanuila - Carn_wila 6.6 27,300 23,123 27,300 2S,128 0 7,39 7,399 S.324 0 0 1n9 1-7 RC aedwa- WUeaols 12.0 35,100 32.271 30,100 32,271 0 10,327 10,327 11.017 0 0 1995 1-S RC fttar* - ,1hanwa 24.0 SS,600 70,609 13,00 11,674 96,6C00 2.46' 0 0 21.446 1I.146 26.395 16.497 1996

TOTAL RC 102.6 33,.300 282.30S 51.000 45,798 384,300 S26,10 0 76.S96 100,044 1066.69 26.395 16,497

TOTAL OtOUP I 203.6 624,S00 698,606 115,700 103,899 940,600 602,504 123,344 162,967 237,620 2165.62 26.395 16.497

Al ZOO1UE SMUISWAJm.

0'

p.- 0*I.3 SRN LWA

Ebt_ted Coeztjbettin Coat,ad Schadul

CRGT%Xm COSt CR..000) ECmC CI61X7I1' COST yVWE

_ _ _ __a_ B______id_e" C_-

Ro_ar 1eod Lirn (K.) Fin, oon. F.in. Eoo Fis. ECOM. 191l 1992 1993 1 199s 19" Yeer

P n Ort D aignad)

2.1 A. C. IVIAYS (AC)

Il-l AC as.11 -_ota. (Km. 119-1O) 44.0 224,000 1890.2 19.200 17.242 243s200 206.s70 0 0 3.8512 45.s33 Ur,' :.3C 1996 1991 11-2 AC K ladueaIa- lbaeIlta 12.3 67,100 56.04 67, 100 5.634 0 19,823 13,072 11,87 13U,2 II4 AC Paliyeoda - Idwatha e.0 72.800 61,238 72,200 61,238 0 20.21 14.06$ L2.246 14.065 0 l996 11-4 AC DOhiela - ltharogea (B) 7.6 48,ao0 41,060 4S,S00 41.080 0 1s.397 9448 S.216 9,44S 0 199 11-5 AC St. _eah Sttet (8) 2.8 8,900 7.828 8,90 7,sa8 0 2.4-2 2.412 2.714 0 0 1995 11-6 AC Rovinna - Mirshana 3.4 22,800 19.058 22,S00 19,086 0 6,480 4,203 3,812 4,23 0 196 II-7 AC l;t iy-Vattalanl (8) 4.0 21,500 18,211 7,800 6.sss 28,00 24.766 0 8,420 s,696 4*.s9 5.696 0 1996 11- AC Chilow Road 1.8 4,200 3.473 4,100 3S473 0 1,111 1.111 1,250 0 0 19s9 11-9 AC Katabedda - Pi Iiyadela Road (B) 4.7 25,700 21,768 28,700 21,768 0 7,401 5.007 4,SS4 3,007 0 1996

TOTALAC 8s.3 494,60 416,926 26,600 2s.797 321.100 442.723 0 79.9es 1090,26 94.446 117,921 42.394

0% 2.2 RELATIC CLStO CRC

11-10 RC fta.. - Oletwol Is (Kf. 168-103) 21.0 7s.600 64,023 10.400 9.os9 86,000 73S,72 0 0 0 23.470 23.474 28.434 1997 11-1 RC Dickwells - liomantoto (Km. 186-241) (Xs. 18220) 38.0 (Km. 221-241) 21.0

Totala, VA. 163-241 56.0 2U2,300 179.618 26.000 2s.340 288,00 203,166 0 0 0 65,013 63.013 73.140 197

11-12 RC ROtara - Aw..e. 21.0 71,7o 60,780 4,200 3,772 7s,900 64,52 0 0 16,770 14.190 20.40 12,900 1906 11-13 RC Wattals - fhAr Road (8) 7.2 23,400 19,620 10,400 9,239 3,8000 29.139 0 9.914 6.707 s.882 6,707 0 1"6 11-24 RC Nasonbo - Ciriulla 1.6 6,100 4,320 5.100 4.820 0 1.382 1,.82 1.5s5 0 0 19s9 T 13-18 RC soI iOtte - ongella 6.5 21,000 17,787 21.000 17.787 0 0 0 5.692 5,692 6.403 199 11-17 RC Kirindivita - OaneaulI 8.0 8,700 7.29 2.100 1.686 10,800 9.25s 0 3,147 2.129 1.851 2,129 0 1996 6.0 18.300 15.300 18.300 13.500 0 5.270 3.565 S.100 3,5S3 0 199 11-t1 RC l-arup 2. - Pont.;itiya

TOTALRC 125.3 438,100 369.377 58,100 47,634 489.200 417,061 0 19.713 80.533 120.712 127.225 116.657

TOTAL UP U1 213.6 980.700 766,85 79.600 71.481 1,010.300 659.784 0 99,649 139,579 215.138 243,146 160.252

176.74e ; l. TOTAL, eOM I 4 II 4*n.2 1,76S,SOO 1.486,909 196,300 17S,379 1.9s0.e00 1,66e2,2e 123.344 2e2,s16 ST7,200 ao,tW 27t,S41 . . ~ ~ ~

0l

t.J -107-

TABLE4.3 SRI LANKA

THIRDROADS PROECT

Results of Econric Evaluation

Project ERR 8/C NPV Number RoadLink (1) (2) (3) Overall Rate of Return (%)

GROUPI 6roup 1 32.6 ------6roup it 33.1 All ACRoads 34.3 1.1 A. C. OVERLAYS(AC) All RCRoads 31.0 ------Full Project 33.1 1-1 AC Noratuwa- Kulutara (Km. 19-45) 48.8 9.23 1209.83 1-2 AC Kalutara - Anbalangoda(Km. 46-85) 20.5 2.34 301.99 1-3 AC Ambalangoda- Gsalle (Km. 86-119) 23.5 3.16 380.67

1.2 REGULATINGCOURSE (RC) ______1-4 RC Katunayake- Veyangoda- Nittambuwa 34.4 3.65 354.93 1-5 RC Toppu- Dankotuwa- Giriulla 36.5 3.82 347.00 1-6 RC Blyanwila - Ganemulla 39.2 3.78 90.28 I-7 RC Seeduwa- Udugaqmpola 28.8 2.77 76.16 1-8 RC Natara- Hamonana 38.2 4.47 349.09

GROUP11

2.1 A. C. OVERLAYS(AC) ______11-1 ACSalle - Natara (Km.118-162) 21.2 2.42 332.06 11-2 ACKaduwela - Hanwella 33.7 3.94 219.73 11-3 ACPeliyagoda - Kadawatha 65.9 17.761189.45 11-4 ACDehiwela - Naharagama(B) 36.0 4.98 187.90 Il-S ACSt. JosephStreet (B) 98.1 13.91 150.06 11-6 ACNavinna - hirihana 30.9 3.79 59.47 11-7 ACHunupittya-Vattala-Iendala (B) 33.5 4.45 95.97 11-8 ACChillaw Road 86.4 11.96 55.21 11-9 ACKatubedda - Piliyandala Road(B) 30.7 3.76 70.07

2.2 REGULATINGCOURSE (RC)

11-10RC hatara - Oickwella (Km. 163-183) 30.2 2.94 184.19 11-11RC Dickwella - Hambantota(KIm. 183-241) 26.4 2.56 408.56 11-12RC Natnra - Akuressa 23.0 2.18 98.17 11-13RC Wattala - NaharaRoad (B) 25.4 2.64 58.89 11-14RC Negcamo - Giriulla 41.7 4.17 20.28 11-16RC Beliatta - Tangalla 21.9 1.90 22.30 11-17RC Kirindiwita - Ganenulla 22.4 2.22 14.55 11-18RC Isurupaya - Pannipitlya 37.3 4.27 69.87

(1)ERR: EconomicRate of Return (2) IC: Benefit-Cost Ratio at 10%opportunity cost of capital (3) IPI: Nt PresentValue at 10 opportunity cost of capital -108- Table 4.4

* . . . . . _

0503SJ_3 a.,... ___ -- _------3C.C ..f.mc . . . c..C.. 33 Is;-:° :- - -. ------; 3 33 ]-'-. 3 ---- °------°------. . . .°.°.5. . . 3-

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1.i ° - 3- 0' __ ---x _ ° jjj

t ;~~~i^~4i---_-oO__=°i*_ _ neca Sca3 *33-aa ,. 3 a3.:- _ c-f°-_ =.. .*_. ii. a S *- i a 5 - #i . 3 i.- s~~ ~ ~~~~~~~ Z Z3Zrx=__a-_ V 2

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------n 1~ i -iog- ~~~~~~Table4.5

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------.--- -111-

Table4.7 SRI LANKA

THIRDROADS PROJECT

SwitchValue Analysis

Original Increasesin Costs Decreasesin Benefits Costs & ------Benefits 100% 300X 400% 418% -50% -80% -81%

(366) (732) (1.464) (1,830) (1,895) (366) 0366) (366) (500) (1,000) (2,000) (2,500) (2,589) (500) (500) (500) (570) (1,140) (2,280) (2,850) (2,951) (570) (570) (570) (451) (902) (1,804) (2.255) (2,335) (451) (451) (451) 714 714 714 714 714 *357 143 138 795 795 795 795 795 398 159 154 884 884 884 884 884 442 177. 171 945 945 945 945 945 473 189 183 1.007 1,007 1,007 1,007 1,007 504 201 195 1,373 1,373 1,373 1,373 1,373 687 275 265 1,232 1,232 1,232 1,232 1,232 616 246 238 1,363 1,363 1,363 1,363 1,363 682 273 263 1,463 1.463 1,463 1.463 1,463 732 293 283 1,411 1,411 1,411 1,411 1,411 706 282 273 1,611 1,611 1,611 1,611 1,611 806 322 311 1,929 1,929 1,929 1,929 1.929 965 386 373 1.784 1,784 1,784 1,784 1,784 892 357 345 1,947 1,947 1.947 1,947 1,947 974 389 376 1,968 1,968 1,968 1,968 1,968 984 394 380 2,112 2,112 2,112 2,112 2,112 1056 422 408 2.249 2,249 2,249 2,249 2,249 1125 450 434 2,559 2,559 2.559 2,559 2,55 1280 512 494 2,338 2,338 2,338 2,338 2,338 1169 468 452 2,418 2,418 2,418 2,418 2,418 1209 484 467

TOTALS 30,215 28.328 24,554 22,667 22,333 14164 4533 4314

ERR 33.11 21.4X 12.7% 10.3% 10.0% 21.4% 10.3% 10.01

NPV 6.191.39 4,709.151,744.67 262.43 0.00 2,354.57 52.49 0.00 SRILANKA THIRDROADS PROJECT Organizationof the Road DevelopmentAuthority

ttNIS,MI OFTPANSPORT

STATE t4INS S STTlL9

RIDEROMD

I| I

O t

JNI7 99@

r-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~r g~~~~~~~~II SON01A~~~~~~~~~~~~~~~~~.I .. EW Ww"" W q;H W E SRI LMM

?BfD ROADS PROJECT IJLUENATON 58C8DU

YDAVT191 1992 1!93 I ' 1 199 199 119 1- go Oua t*r 2F 3 1 41 1 3_|23 141 1 2 1 3 1 4 1 1 2 2 394 19j9 29 17 3 9 I Cal4dr Yr. 195b 591 1-2 _ L _9 _ _ _92_19 1993 |92 1997 1lS

ROADS WB/3/1 SCHEDULE TO E D TER INEI BY 7DCF r

WB/3/2 SSD DDT TEE EAA CCC CCC CCC CCC CCC CCC cCC CCC CCC CCC CCC CCC CCC CCC CCC MMM MMM MMM 1MM

WB/3/3 S SSS DDD ODD TTT |EE AAA CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC MMM MMMM MMM14 1

WB/3/4 S| SSS ODD DDD TTT EEE AAA CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC MMM MMM MMM MM

BR;/3/5 S SSS ODD DDD TTT EEE AAA CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC MMM MMMM MMMmm1 BRIDGES I 1II WB/3/21 SCHEDULE TO r DTERiINED BY EDCF

WB/3/22 SCH OUL TO EE D TERPINEI BY 7DCF

WB/3/23 TTT EEA CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC MMM MMM MMM M'IuMM1 t

WB/3/24 TTT IEA CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC MMM MMM MMM MMM

WB/3/25 T|TT EEA CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC MMM M14M|MMMM MMM

WB13/26 TTT EEA CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC MMM MMM|MMM MMM1

WB/3127 TTT EEA CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC MMM MMM MMM MMM| |

WB/3/28 SCHEjOULE TO ,E DIITERMINED BY EDCF

WB/3/29 g TTT EEA| CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC CCC MMM MMM MMM 1MM FLOODFEE1AB | CCCcCCC CCC CCCjCCC CCC CCC CCC|

EQUPHZ jTT| QOQ Q|QQ

TEM ASSTCB I _I I YYY| YYYJ YYY| YYY YYY YYYg YYY YYY YYY| YYY I I I I I I I I I

Legend: S = Survey A - Award S Mobilization D = Design C - Construction T = Tendering M = Maintenance E - Evaluation 0 - Equipment Delivery Y = Studies 3QLDt

01' 8CO01) 81°00O 52fl0(

s b l~~~~~~~ePedro

S R I L A N K A THIRD ROADSPROJECT

Roadsto be Rehabilitoted:

t:91lo6ne Courseand aOicrete Overlay --- Regulating Course and Sealing

Bridges to be Rehobilitoted

T.k- / hEo-Widening/Redecking - Peplocenent/Reconstruction

Roads: - A Grade - B Grade Selected Minor toods

4-+ Railroads

* National Capital

District Caipitols t ) / // > o~~~~~~~~~~~Other Towns --- Internooal Boundaries

For detoil.E M~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~odom G.n.nW o_n/elto-

see ~ns.t.~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~~~~~~~~n5s

Coto~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~C K~~~~~~~~~~~~~~~~~~~~~rso 7 -, N E Mo_ to

o h W < \ 1> ~~~~~~~~~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~PAKISTIANi^NIOE1

INDIA

-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1 -

iy _ ____ g~~~~~~~~0 20 4D0N._ 51 o SI?IJ

:C 80S 8Tt