Docamt of The WorldBank

FOR OFFICIAL USE ONLY Public Disclosure Authorized Rmt No. P-5939-CE

IN WIIRDSAND RE TMHNDATIOK

OF THE

PRESIDENT OF T'fi

IUENMTTIONALDEVELOPMT ASSOCIATION

Public Disclosure Authorized TO THIE

EXECUTIVEDIRCTORS

ONA

PROPOSEDCREDIT

OF SDR 14.4 MILLION

TO THE

DE(OCRATIC SOCIALIST REPUBLIC OF SRI LIAN

Public Disclosure Authorized FOR A

COLOMBO1RBA TRANSPORTPROJECT

APRL 22, 1993

*~~ . Public Disclosure Authorized

Tiis documenthas a restricted distributionand may be used by recipientsoly In the performnsCeof their official duties. Its contents may not otherwise be disclosedwithout World Bank authorization. CURRENCY EOUIVALEITS (as of December 1992)

Currene.yUnit - SR. 1 Rupee (SRs) - 100 cents - US$0.023 SR. 44.0 - US$1.000

WEIGHTS AND MEASURES

1 m - water (lumetcr - 3.28 feet) 1 mt m metric tone (1,000 kg - 2,205 lb.) 1 km - kilometer (1 kilometer - 0.62 miles) 2 2 kM ssquare kilometer (1 km - 0.368 square miles) 1 kg - kilogram (2.2 lb.)

ABBREVIATIONSAND ACRONYMS

CEA - Central EnvirormentalAuthority CIDA - Canadian International Development Agency CMC - Municipal Council 0CMKA- Greater Colombo Metropolitan Area GOSL - Government of MTH - Ministry of Transport and Highways ETC - National TransportCommission SLR - TSM - Traffic System Management TSPC - Transport Studies and Planning Center UDA - Urban Development Authority UNDP - United Nations Development Program

FISCA EAR January 1 to December 31 FOR OMCLAL USE ONLY

SRII

COLOMBOURBAN TRANSPORT PROJECT

Credit and Project Sumary

Borrower: DemocraticSocialist Republic of Sri Lanka (GOSL)

Beneficiaries: Ministry of Transport and Highways (NTH) Colombo Municipal Council (CMC) Sri Lanka Railways (SLR) Central EnvironmentalAuthority (CEA)

Amount: SDR 14.4 million (US$20.0million equivalent)

Terms: Standard,with 40 years maturity

Onlendina Terms: From GOSL to the beneficiarieson a grant basis

FinancinzPlan: Local Foreign Currency Currency Total Z -- (US$ million)------

IDA 5.5 14.5 20.0 79.0 UNDP 0.2 0.3 0.5 2.0 CANADA 0.0 0.5 0.5 2.0 GOSL 4.3 0.0 4.3 17.0

TOTAL 10.0 15.3 25.3 100.0

Economic Rate of Return: 26%

Staff Appraisal Report: Report No. 11375-CE

Maps: Colombo TransportNetwork - IBRD No. 24659 Colombo Project Area - IBRD No. 24660

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. [ts contents may not otherwise be disclosed without World Bank authorization. MEMORANDUMAN4 RECOIOENDATIONOF THE PRESIDENT OF THE INTERNAi'ORAL DEVELOPMENTASSOCIATION TO THE EXECUTIVEDIRECTORS ON A PROPOSEDCREDIT TO THE DEMOCRATICSOCIALIST REPUBLICOF SRI LANKA FOR A COLONBOURBAN TRANSPORT PROJECT

1. I submit for your approval the following memorandum and recommendation on a proposed developmentcredit to the Democratic Socialist Republic of Sri Lanka for SDR 14.4 million (US$20.0 million equivalent)on standard IDA terms with a maturity of 40 years to help finance a Colombo Urban Transport Project. The proposed credit would be passed on from the Governmentof Sri Lanka (GOSL) to the Ministry of Transport and Highways (MTI), Colombo Municipal Council (CNC), Sri Lanka Railways (SLR) and Central EnvironmentalAuthority (CEA) on a grant basis. The Governmentwill bear the foreign exchange risks on the credit.

2. SectorBackaround. The Greater ColomboMetropolitan Area (GCNA)contains about four million inhabitants, comprising a quarter of Sri Lanka's total population. Although not reflected in official statistics,which do not count suburbanizationof Colombo as urban growth, the a:nual population growth rate for the GCMA during the 1980. is estimatGd at 5Z. As a part of GGSL's liberalized growth strategy,two large Export ProcessingZones outsideColombo were established in 1978, reinforcingthe primacy of the GCMA. Agglomerationeconomies, including the presence of Goveranent offices and the country's only international port contiguous to the city center,have fueled demand for urban transport,acting both as traffic generators and attractors. With expanding industrial activities, growing population and rising incomes, traffic volumes in GCNA are increasing at 6-8Z per annum. This growth has led to severe strain on already run-down transport infrastructureand the emergence of traffic bottlenecks and acute congestion in Central Colombo. However, funding constraints have deterred new infrastructure investmentsthat are needed to keep pace with rising urban travel demand, and also have adverselyaffected the maintenanceand rehabilitationof roads, railway lines, buses and other related service facilities. The road surfaces are in a poor state of repair, sidewalks almost non-existent and traffic movements constrained by infringementon road space by shops, slow moving push-carts, teaming pedestrian flows, inadequate intersection designs, primitive traffic control devices and disorganizedbus passenger loading and discharging. The railway could play a larger role in providingefficient commuter services in the GCMA, thereby reducing the pressure on road passenger services if it could shed its cuimbersome bureaucraticmanagement structure and modernize its archaic operatingmethods.

3. In Central Colombo, traffic congestion has greatly increased travel times, vehicle operatingcosts and accidents. The increase in traffic density has also raised air pollution levels in the city, posing a potential threat to public health. Transport bottlenecks impose high costs on commercial and industrial establishmentslocated in the GCMA, reducing their competitivenessand productivity in relation to units locatedin other major production and export centers of Asia. Because the GCMA generatesabout 421 of the country'sGNP, and the GOSL's export- oriented industrial strategy reinforces the pro-eminence of the GCMA, the limitations of the transport sector have large economic and social cost implicationsfor the country as a whole. Thus, the rehabilitationof existing deterioratedinfrastructure and implementationof well-conceivedtraffic management schemes require immediate action for short-term relief. In the long-term, GOSL needs to formulate a viable urban transport strategy in order to avoid Colombo's - 2 -

traffic congestion reaching the levels experienced in cities like Bangkok or Manila. IDA's strategy is to support these actions through the proposee project which is an important first step.

4. Lessons from Previous Bank/IDA Operations. The proposed project would be the first IDA-financedurban transport project. Howevers IDA has financed operations in both the urban and transport sectors."1 The relevant lessons from these projects are: (a) detailed engineeringand designs should be completed for all relevantproject components to avoid large cost overruns,and ensure sufficient funds for completion of works; (b) the project design and procurement methods should not be overly complex in order to prevent a long implementationperiod and delays in procurement; and (c) the establishment of a clear functional, organizationaland management structurewith adequate autonomy is a prerequisite for encouragingoperational efficiency and improved performance in the transport sector. The proposed project has been designedwith these lessons in mind.

'i. Prolect Objectives. The main objectives of the project are to: (a) remove transportbottlenecks and traffic congestionin Central Colombo that impose high costs on commercial and industrial establishments;(b) develop long-term transport plans for the GCMA and strengthen institutions concerned with urban transport; (c) strengthen the managerial capabilitiesof the National Transport Commission (NTC); (d) increase the efficiencyof the STR; and (e) promote adequate air quality standardsand emission control measures.

6. Prolect Descrintion. To achieve the above objectives, the project includes:(a) ImmediateAction Plan. (i) TransportSystem Management (TSM) Program for three areas: Fort, Pettah and Olcott Mawatha. Implementationof short-term, cost-effective measures of the TSM program comprising junction improvements (signals,channelisation), bus passenger facilities (terminal improvements),bus lanes, sidewalks, footbridgesand off-streetparking and rehabilitationof road pavement in the Pettah and adjoiningOlcott Mawatha areas where traffic conditions are most chaotic; (ii) Junction Improvements. Constructionof a gyratory consisting of an additional bridge, parallel to the existing bridge over the railway tracks, improvementsof the approach roads to the new gyratory and the provisionof inter-linkedsignalization to increasecapacity and reducevehicle-to- vehicle and vehicle/pedestrian conflicts at this intersection where severe congestionand delays occur, with a daily trafficvolume exceeding44,000 vehicles and large passengerflows from the nearby railway station;and (iii) Implementation Support. Consultancy services to supervise the TSM and Maradana Junction improvementschemes; (b) Lona-TermUrban TransDortPlanning. Consultants to: (i) carry out the Colombo Urban Transport Study to address the transport infrastructure,service and management deficiencies and prepare comprehensive policy actions and associatedinvestment plans for the long-termperiod; and (ii) provide on-the-jobtraining of the counterpartstaffs from the agencies involved in urban transportplanning. Personal computers,office equipment and software would be procured as part of this component;and (c) InstitutionalStrengthening.

Completedprojects: Road MaintenanceI (Cr. 900-CE,PCR No. 8000, 8/89); Road PassengerTransport (Cr. 994-CE, PCR No. 8011, 8/89); and Roads II (Ln. 2517- CE, PCR in draft). Ongoing projects: Municipal Management (Cr. 1697-CE); Roads III (Cr. 2183-CE); and the Economic RestructuringCredit (Cr. 2128-CE) under which the publicly owned bus industry is being privatized. (i) TransportRegulation. Consultancyservices to train the NTC and the Provincial Councii±l(PC) staff in the regulation of the bus industry; (ii) Restructuringof the Sri Lanka Railways. Consultancyservices to assist SLR with implemantationof the restructuringplan agreed with IDA, which is intended to initiate the process of reform to improve its operations,and evaluate different options and suitable timing for privatizationof certain aspects of railway operations and assets in preparation for the next phase of reform. Management information and service costing systems would be installed and personal computers and software packages would be procured; and (iii) Air Quality Monitoring and Management Study. The procurement of air quality testing equipment and consultancy services for the preparation of a comprehensiveair quality control program for Colombo and the training of the CEA staff to strengthentheir capabilitiesto monitor and enforce air quality standards.

7. The project cost is estimatecaat US$25.3 million equivalent,with a foreign exchange component of US$15.3 million equivalent (611), including the Project PreparetionFacility (PPF) Advance of US$1.2 million, and taxes and duties estimated at about US$2.0 million equivalent. The PPF advance was expended to carry out various studies in preparation of the project. The total financing required is US$25.3million, of which the Associationwould financeUS$20.0 million equivalent (952 of the foreign exchange and 551 of local costs, or 691 of local costs excluding taxes and duties). UNDP would provide US$0.5 million equivalent to strengthenthe NTC and PC staff under a co-financingarrangement. In addition, CIDAA1 would cofinanceUS$0.5 million equivalent to assist with implementationof the SLR restructuring plan. For expenditures incurred after March 1, 1993, retroactivefinancing of US$0.5 million (2.52 of the credit) would be provided to permit advance procurement of services, works and goods which must begin before credit effectiveness in order to meet target dates for implementation of critical project activities.

8. Proiect Imolementation. The TSM, road rehabilitationand the Maradana Junction componentswould be executed by the CMC, assisted by consultants. The Colombo Urban Transport Study and the urban institutiontraining componentwould be managed by the TransportStudies and PlanningCenter (TSPC). The air pollution management component would be administered through the CEA. The technical assistance for the bus regulation and management and railway components would be implementedby the MTH and NTC/PCs, assistedby consultants. Project coordination and monitoring of progress would be provided by the Project Monitoring Committee, composed of CMC, UDA-, NTC, TSPC, TPY' and CEA, chaired by Secretary, MTH. A breakdown of costs and the financing plan are shown in Schedule A. Amounts and methods of procurement and of disbursements,and the disbursement schedule are shown in Schedule B. A timetable of key project processing events and the status of Bank Group operations in Sri Lanka are presented in Schedules C and D, respectively. Two maps are also attached (IBRD No. 24659 and IBRD No. 24660). The Staff Appraisal Report, No. 11375-CE,is being distributedseparately.

Vi Responsibilitiesfor the issuanceof route permits, registrationof vehicles by type and management of bus terminalshave been devolved to the Provincial Councils. 3 Canadian InternationalDevelopment Agency. 4/ Urban DevelopmentAuthority. $ Traffic Police. - 4 -

9. Proiect Sustainabilit,. To ensure the project's sustainability,the project has been designed in line with the absorptivecapacity of the implementing agencies and adequate technicalassistance would be provided. The introductionof the TSZ concept under the projectwould demonstratethe effectivenessof the low- cost TSM schemes in achieving greater utilization of limited road space, segregationof pedestriansand vehicles and smoothertraffic flows. To ensure that the TSM schemes function efficiently,a traffic law enforcementprogram would be implemented in parallel. The experience g1ined from implementingthe immediate action plan for the GCMA would also provide a sound basis for preparing a sustainablelong-term program.

10. EnvironmentalAspects. The project includes an environmentalcomponent that addresses the emerging problems of air pollution. While not yet as serious as the problems observed in Bangkok,Bombay and other major Asian cities, the rapid increase of motorized transport in the GCMA :ould cause levels of emissions of harmful gases to arise if left unabated. The main sources of air pollution in Colombo are vehicle exhaust emissions and to a lesser extent, industrial enterprises. Control of the formerwill be criticalas vehicle ownershipincreases in the GCMA. Therefore,under the project the necessary first steps will be taken to measure air quality, set up standards to identify the major causes of the problems, formulate an appropriate regulatory policy, and monitor compliance. The environmentalimpact of the TSM and Maradana Junction components included in the pr4ject would be positive as they are designed to enhance traffic and facilitate traffic flows, thereby reducing congestionand idling of vehicles.

11t AareementsReached. During negotiations,agreements were reached on the following: (a) GOSL to allocate sufficientcounterpart funds needed to implement the project; (b) TSPC and CMC to establishtheir project accounts and appoint the heads of their respectiveproject accounts departments;(c) an OperationalAction Plan; and (d) GOSL to hold a mid-term project implementationreview with IDA in December 1995.

12. Linkage with CountryAssistance Strateav. In Sri Lanka, IDA's Country AssistanceStrategy (CAS) includes:(a) promotingnon-traditional export-led growth by enhancing the country's external competitiveness;(b) creating an environment conducive to expanding private sector participation and attracting foreign investment through increased liberalizationof economic and trade policies; (c) reformingpublic enterpriseswhich cannot be privatized immediately;(d) reducing public expendituresby eliminatingover-sambitious and unproductiveinvestments; and (e) providing good infrastructure(transport, telecommunications and power) so critical to the successful commercializationof the economy. The components included in the project are intendedto implementIDA's transportsector strategy, which is consistentwith its CAS, by: (a) eliminatingmajor transportbottlenecks in the GCGA where the majority of export industriesare located; (b) implementing low-cost traffic management concepts and road rehabilitationbefore embarking on large new investments; (c) formulating a long-term urban transport investment program to determine priorities and staff training to strengthen planning capabilities;(d) promotingbus industryderegulation and privatizationto increase private sector involvement; and (e) initiating railway reforms to improve operationalefficiency.

13. Rationale for IDA Involvement. Development of an efficient transport sector in Sri Lanka has long been an objective of Governmentpolicy which IDA has supported.To accomplishthis objective,IDA has been taking the lead in assisting GOSL in implementing the strategy elements outlined above, and major reform initiativesin the transportsector for which no other donors have shc-m interest in providing leadership. Through IDA's active involvement,the Government is in the process of completingbus privatizationand initiatingrailway reforms. As a result, progress is being made in improving sector efficiency. The proposed project offers an additional opportunityto continue this progress.

14. Benefits. Trafficmanagement and Maradana Junction improvementmeasures will reduce the economic costs of congestionand delays by speeding up the flow of goods and passengers on the major corridors. The weighted economic rate of teturn (ERR) on these improvements is estimated at,262. In addition, traffic safety improvements, to be implemented under the project, would reduce accident rates. Furthermore,monitoring of air qualityand emissioncontrol, combined with improved vehicle speeds made possible under the project, would impact positively on the environment by reducing pollution from vehicle exhaust fumes. The reform of the railways should increase efficiencyand modestly improve the Government'sfiscal situation.

15. Risks. The main risks of tbe project are: (a) expected capacity increases and decreased level of congestion may turn out to be smaller than anticipated; (b) a delay in completion of the project may increase investment costs, (c) ineffectivescheduling of works may lead to excessivecongestion during construction;and (d) the institutionalstrengthening and reform objectives to be accomplished with technical assistance provided under the project may fall short of expectations. The risks of delay and ineffective scheduling are mitigated by the fact that detailed engineeringand designshave been completedfor all project components,bidding documentshave been prepared, the main investmentcomponents are relatively easy to implement as they are based on well-established technologies,and the CMC has already completedsimilar works successfullyon Road and the Prince of Wales Road. Possible cost overruns, reduced benefits and increasedcongestion during constructionhave been quantified in the economic and sensitivity analyses which still yielded satisfactory ERRs of 17% or higher. Moreover,a continuingintensive policy dialoguewith GOSL, phased reformmeasures, training programs formulated in accordance with absorptive capacity of the executing agencies, close supervision of civil works, studies and the implementation support provided under the project to the executing agencies would also substantially reduce the possible risks mentioned above.

16. Recommendation. I am satisfied that the proposed development credit would comply with the Articles of Agreement of Association and recommend that the Executive Directors approve it.

Lewis T. Preston President

Attachments

Washington, D.C. April 22, 1993 - 6 - Schedule A Page I of 1

SRI LAMR

COLOMB_O'JAN ThANPOR2 PROJECT

EstimatedProJegt Cootst1 and financina Plan

Estimated Proiset Cogtst

Local Foreign Total ------US$ million-

A. TSH and Infrastructure

Pettah, Olcott & Fort 3.31 2.10 5.44 Maradana Junction 0.97 3.13 4.10 ImplementationSupport 0.02 2.89 2.91

Subtotal 4.30 8.12 12.42

B. Urban Transeort Plan 0.48 1.12 1.60

C. InstitutionalStrenythenina

NTC 0.45 0.55 1.00 Railvay Restructuring 0.40 2.31 2.71 Air Quality Management 0.09 0.51 0.60

Subtotal 0.94 3.37 4.31

Total Base Costs 52:2 ALIL "$]

Physical Contingencies 0.50 0.78 1.28 Price Contingencies 1.53 0.91 2.44 Project PreparationFacility 0.20 1.00 1.20

Total Project Costs 1.30S 23.5 (excludingtaxes)

Taxes and Duties 2.03 0.0 2.03

Total Project Costs 9.98 AMlz 25.28 (includingtaxes)

Financina Plan: Local Foreign Currencv Currency Total 2 ------(US$ million)-----

IDA 5.5 14t5 20.0 79.0 UNDP 0.2 0.3 0.5 2.0 CANADA 0.0 0.5 0.5 2.0 GOSL 4.3 0.0 4.3 17.0

TOTAL 100 15. 2.3 120.g

£ December 1992 prices. _7 _ Schedule B Page 1 of 2

SRI LANKA

COLOMBO URBAN TRANSPORT PROJECT

ProcurementMethod and Disbursements (US$ million)

Procurement

ProcurementMethod Project Prudent Total Component ICB LCB Shopping Other NIF Costs

Civil Works 6.00 6.72 2.00 14.72 (5.00) (4.50) (1.00) (10.50)

Equipment/Goods 1.00k 0 . 66Ib 1.66 (1.00) (0.60) (1.60)

Training & Tech. Asst. 7. 1.00 8.90 (7.90) (7.90)

TOTAL 7.00 6.72 0.66 10.90 1.00 25.28 (6.00) (4.50) (0.60) (8.90) (0.00) (20.00)

Note: Figures in parenthesesare respectiveamounts financed by IDA Credit. NIF - Not IDA Financed.

La traffic signals and "design-supply-assemble"for Fort footbridge; /b street lighting,personal computers,vehicles, traffic counter, air quality testing equipment; /c CMC Force Account for surfacing;and ld includes services procured under PPF 471-CE. - 8 - Schedule B Page 2 of 2

Disbursements

Amount of the Credit Allocated S of Category (expressedin Expendituresto US$ equivalent) be Financed

1. Civil Works and Maradana Junction Bridge 7,560,000 70%

2. Equipment and Goods, includingFootbridge 1,150,000 100Xof foreign costs; 100% of ex-factorycosts of local expenditures, or 70% of other local expenditures 3. ConsultancyServices and Training 4,830,000 100%

4. Repayment of Project PreparationAdvance 860.000

TOTAL 14,400,000

EstimatedDisbursements (US$ million):

1DA Fiscal Years FY93 FY94 FY95 FY96 FY97 FY98

Annual 0.0 2.4 4.0 6.6 5.9 1.1 Cum-ulative 0.0 2.4 6.4 13.0 18.9 20.0 -9- Schedule C Page 1 of 1

COLOMBO URBAN TRANSPORT PROJECT

Timetable of Key Proiect ProcessingEvents

(a) Time taken to prepare the projectz 5 months, October 1992 - February 1993.

(b) Prepared by: MTH and CMC, assisted by consultants.

(c) First IDA mission: October 1992Z'

(d) Appraisal mission departure: December 1992

(e) Negotiations: April 12-15, 1993

(f) Planned date of effectiveness: September 1993

(g) List of relevant PCRs and PPARs: None directly related to an urban transport project. However, two transport projects include: Road Maintenance I (Cr. 900-CE, PCR No.8000, 8/89; and Road Passenger Transport (Cr. 994-CE, PCR No. 8011, 8189). For Cr. 2717-CE, Second Roads Project, PCR is in draft.

7/ Does not include the time taken to prepare some of the project components which were originallyincluded in the Sri Lanka Transport I Project.

This report was prepared based on the finding8sof an appraisalmission which visited Sri Lanka in December 1992. The missionmembers includedMrs. I. Bradfield (SeniorEconomist and Task Manager, SA3EI); and Mr. K. Wijetilleke (SeniorChemical Engineer, IENOG) from the International Development Association, and Mr. J. Cracknell (Traffic Management Specialist, Consultant). The peer review team comprisedMessrs. R. Scurfield (PrincipalTransport Specialist, TWUTD); L. Thompson (RailwaysAdvisor, TWUTD); and J. Shah (EnvironmentalSpecialist, ASTEN); and Ms. 0. KRlantzopoulos (Senior Economist, SA3CI). The report has been endorsed by Messrs. Per Ljung, Chief, Energ, & InfrastructureOperations Division and Paul Isenman, Director, Country DepartmentIII, South Asia Region. - 10 -

Sohedule0 Page1 of 2

THESTATUS OF BANKGROUP OPERATIONS IN SRILANKA A. STATEMENTOF BANK LOANS AND IDA CREDITS (Asof March31. 1993)

Amoun-In USSmillion (loescanoellations) Loanor Fiscal Undis- CreditNo. Year Borrower Purpose Bank IDA bursed

12loans and 40 credits have been fully disbursed 131.13 641.17

Cr. 1537-SRI 1985 Sri Lanka MajorIrrigation Rehab 17.00 8.02 Cr. 1692-SRI 1986 Sri Lanka IndustrialDev II 20.00 1.16 Cr. 1997-SRI 1988 Sri Lanka MunicipalManagement 13.00 5.87 Cr. 1698-SR) 1986 Sri Lanka SecondVocational Training 15.00 9.89 Cr. 1700-SRI 1986 Sri Lanka WaterSupply and Saniaton 37.00 10.68 Cr. 1736-SRI 1.187 Sri Lanka NinthPower 52.00 19.82 Cr. 1776-SRI 1987 Sri Lanka AgricultureResearch 18.60 13.93 Cr. 1860-SRI 1988 Sri Lanka ThirdSmall & Medlndustriee 20.00 1.32 Cr. 1883-SRI 1988 Sri Lanka EmergencyRecon & Rehab 78.00 42.12 Cr. 1903-SRI 1988 Sri Lanka Health& FamilyPlanning 17.60 14.83 Cr. 1909-SRI 1988 Sri Lanka 2ndSmallholder Rubber Rehab 23.60 15.81 Cr. 1933-SRI 1988 Sri Lanka PowerDlstrib & Tranemiselon 40.50 32.71 Cr. 1948-SRI 1989 Sri Lanka Thirdindustrial Development 43.80 7.23 Cr. 2043-SRI 1989 Sri Lanka ForestryII 19.90 18.57 Cr. 2072-SRI 1990 Sri Lanka GeneralEducation 49.00 43.82 Cr. 2128-SRI 1990 Sri Lanka EoonomicReostruc. Credit 90.00 3.42 Cr. 2183-SRI 1991 SrILanka 3rdRoads 42.50 36.89 Cr. 2185-SRI 1991 Sri Lanka PublicManut Enter. Adjust. 120.00 4.71 Cr. 2231-SRI 1991 Sri Lanka PovertyAlleviation 67.60 63.40 Cr. 2249-SRI 1991 Sri Lanka TelecomsII 67.00 63.38 Cr. 2260-SRI 1991 Sri Lanka SMIIV 46.00 36.00 Cr. 2260-SRI 1991 Sri Lanka NationalIrrigation Rehab. 29.60 28.26 Cr. 2297-SRI 1692 Sri Lanka 2ndPower Distribution 60.00 49.79 Cr. 2380-SRI 1992 Sri Lanka SecondAgric. Extension 14.34 13.97 Cr. 2185-1-SRI 1993 Sri Lanka PublicManut. Ent. Ad. 5.76 5.76 Cr. 2442-SRI 1993 Sri Lanka CommunityWater Supply/Sanit. 24.30 23.28

Total 131.13 1641.97/a 60.13 Ia Ofwhich has been repaid 84.88 26.03

Totalnow held by Bankand IDA 46.25 1616.94

Amountsold 3.69 Ofwhich repaid 3.69

Totalundisbursed 50.13

la Theprincipal amounts of IDAcredits are shown In USDollar equivalent at dateof negotiations. as shownin the Presdent'sReport. Undisbursed amounts shown in USDollar equivalent are valued at the exchangerate applicable on the dateof thisstatement. In somecases, therefore, the undisbursedbalance Indicates a dollaramount greater than the original principal credit amountexpressed In dollars.

' IndicatesSAiJSECAL Loans and Credits - 11 -

ScheduleD Page2 of 2

THESTATUS OF SANKGROUP OPERATIONS IN SRILANKA B. STATEMENTOF IFCINVESTMENTS (Asof March31, 1893)

Amount($millione) Date iobnower Purpose Loan Equlty Total

1970 PearlTextile Mills Textile& Fibers 2.60 0.75 3.25 197880183 DevelopmentFinance DevelopmentFinance 0.46 0.46 Corporationof Ceylon 1978181 Bankof Ceylon DevelopmentFinance 7.00 7.00 1870 MikechrisIndustries Umited & CeylonPaper Sacks Ltd. WovenPolypropylene Sage 0.89 0.09 0.98 1976181 CeylonSynthetic Textile Textils & Fibers 3.15 0.54 a69 1080184186 LankaOrient Leasing Co. Ltd. CapitalMarket 3.00 0.34 3.34 1S81 LankaHotels Tourism 19.30 0.70 20.00 1868 UnionAssurance Money& CapitaMarket 0.48 0.48 1861 COIC DevelopmentFinance 3.05 3.05 1992 CKNFUND MGMT CapitalMarket 0.06 0.06 1092 PYRAMIDTRUST CapitalMarket 0.26 0.25 1993 LankaCellular Telecommunications 1.36 1.36

TotalGross Commitments 3.84 8.08 43.92

LoseCancellations, Termination Exchanges Adjustments,Prepayments and Sales Writeoffsand Sales 35.74

TotalCommitments now held by IFC 8.18

TotalUndisbursed (ineluding patocipants' portion) 4.41

_ ~~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ U MAP SECTION IBRD24659

SRILANKA l COLOMBOURBAN TRANSPORTPROJECT COLOMBOTRANSPORT NETWORK ol

o,T ,

o QOPROJECT COMPONENTS - MAIN ROADS Kuo oMot SECONDARYROADS RAILROADS

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