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The World Bank 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 - Sri Lankan Rupee 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 - Colombo Municipal Council 0CMKA- Greater Colombo Metropolitan Area GOSL - Government of Sri Lanka MTH - Ministry of Transport and Highways ETC - National TransportCommission SLR - Sri Lanka Railways 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) Maradana 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
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