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Completion Report Sri Lanka: Road Network Improvement Project

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Completion Report Sri Lanka: Road Network Improvement Project Completion Report Project Number: 28331 Loan Number: 1649 December 2009 Sri Lanka: Road Network Improvement Project CURRENCY EQUIVALENTS Currency Unit – Sri Lanka rupee/s (SLRe/SLRs) At Appraisal At Project Completion 27 October 1998 17 August 2009 SLRe1.00 = $0.015 $0.0087 $1.00 = SLRs66.4 SLRs115.015 ABBREVIATIONS ADB – Asian Development Bank AADT – annual average daily traffic DBST – double bituminous surface treatment DNP – Department of National Planning EIRR – economic internal rate of return GDP – gross domestic product HDM – highway development and management (software) ICB – international competitive bidding ICTAD – Institute of Construction Training and Development IRI – international roughness index JBIC – Japan Bank for International Cooperation LCIDC – local construction industry development consultant NCB – national competitive bidding PCR – project completion report PIC – project implementation consultant PMU – project management unit RDA – Road Development Authority RMTF – Road Maintenance Trust Fund RNIP – Road Network Improvement Project SERF – shadow exchange rate factor STDP – Southern Transport Development Project SWRF – shadow wage rate factor TA – technical assistance TRIP – Third Road Improvement Project NOTES (i) The fiscal year (FY) of the government ends on 31 December. (ii) In this report, "$" refers to US dollars. Vice-President X. Zhao, Operations 1 Director General K. Senga, South Asia Department (SARD) Director R. Vokes, Sri Lanka Resident Mission, SARD Team leader K.M. Tilakaratne, Senior Project implementation Officer, Sri Lanka Resident Mission, SARD Team members N. Buhar, Administrative Assistant, Sri Lanka Resident Mission, SARD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page BASIC DATA i MAP I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 2 A. Relevance of Design and Formulation 2 B. Project Outputs 3 C. Project Costs 4 D. Disbursements 5 E. Project Schedule 5 F. Implementation Arrangements 6 G. Conditions and Covenants 7 H. Related Technical Assistance 8 I. Consultant Recruitment and Procurement 9 J. Performance of Consultants, Contractors, and Suppliers 10 K. Performance of the Borrower and the Executing Agency 11 L. Performance of the Asian Development Bank 12 III. EVALUATION OF PERFORMANCE 12 A. Relevance 12 B. Effectiveness in Achieving Outcome 12 C. Efficiency in Achieving Outcome and Outputs 13 D. Preliminary Assessment of Sustainability 13 E. Impact 14 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 15 A. Overall Assessment 15 B. Lessons 15 C. Recommendations 16 APPENDIXES 1. Project Framework 19 2. Road Characteristics and Contract Details 21 3. Project Costs 27 4. Projected and Actual Disbursements 29 5. Chronology of Main Events 30 6. Project Schedule 38 7. Project Organization Chart 39 8. Status of Compliance with Loan Covenants 40 9. Technical Assistance Completion Report 44 10. Example of Problem Areas in the Road Network Improvement Project Contract Organization and Management 46 11. Economic Reevaluation 47 12. Comparison of Amounts of Formal Training Carried Out by the Local Construction Industry Development Consultant and the the Institute of Construction Training and Development 64 13. Distribution of Land Acquisition among the Road Network Improvement Project Roads 65 14. Quantitative Assessment of Overall Project Performance 66 BASIC DATA A. Loan Identification 1. Country Sri Lanka 2. Loan number 1649-SRI(SF) 3. Project title Road Network Improvement Project 4. Borrower Sri Lanka 5. Executing agency Road Development Authority 6. Amount of loan – Original SDR56,722,000.00 – Revised SDR64,947,121.80 7. Project completion report number PCR:SRI 1126 B. Loan Data 1. Appraisal – Date started 26 June 1998 – Date completed 15 July 1998 2. Loan negotiations 21 October 1998 – Date started 23 October 1998 – Date completed 8 December 1998 3. Date of Board approval 28 January 1999 4. Date of loan agreement 5. Date of loan effectiveness 28 April 1999 – In loan agreement 26 February 1999 – Actual "0" – Number of extensions 6. Closing date – In loan agreement 30 June 2005 – Actual 31 December 2008 – Number of extensions 2 7. Terms of loan – Interest rate 1% – Maturity 40 years – Grace period 10 years 8. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 19 October 1999 7 April 2009 114 months Effective Date Original Closing Date Time Interval 26 February 1999 30 June 2005 76 months ii b. Amounts Last Revised Undisbursed Original Allocation Allocation Amount Disbursed Balance Category (SDR) ($) (SDR) ($) (SDR) ($) (SDR) ($) Civil works 35,483,000 50,000,705 47,056,469 68,788,951 47,056,469 68,788,951 0 0 Civil works E "0" "0" 5,457,055 8,175,238 5,457,055 8,175,238 0 0 Incremental 781,000 1,100,543 779,260 1,126,199 779,260 1,126,199 0 0 administration Consulting 7,948,000 11,199,887 9,647,351 13,620,039 9,647,351 13,620,039 0 0 service Service charge 1,845,000 2,599,873 2,006,987 3,027,401 2,006,987 3027401 0 0 Unallocated 10,715,000 15,098,992 0 0 0 0 0 Total 56,772,000 80,000,000 64,947,122 94,737,828 64,947,122 94,737,828 0 0 Notes: 1. As at 27 October 1998, SDR1 = $1.4091454. 2. SDR8,175,122 was additionally allocated to the loan in 16 June 2004 as emergency assistance to rehabilitate roads in flood-affected areas. 9. Local costs (ADB-financed) At appraisal At completion - Amount ($ million) 39.9 40.2 - Percent of local costs 53 34 - Percent of total cost 32 22 C. Project Data 1. Project cost ($ million) Cost Appraisal Estimate Actual Foreign exchange cost 47.5 65.9 Local currency cost 75.8 117.2 Total 123.3 183.1 2. Financing plan ($ million) Cost Appraisal Estimate Actual Implementation costs Borrower-financed 27.3 66.0 ADB-financed 77.4 91.7 JBICa 16.0 22.0 Total 120.7 179.7 IDC costs Borrower-financed 0.0 0.0 ADB-financed 2.6 3.0 JBIC-financing 0.0 0.4 Total 123.3 183.1 ADB = Asian Development Bank, IDC = interest during construction, JBIC = Japan Bank for International Cooperation (now Japan International Cooperation Agency). a Actual allocation was ¥3.08 billion (approximately $25 million). Source: JICA Loan Agreement: SL-P 63, 4 August 1999. iii 3. Cost breakdown by project component ($ million) Component Appraisal Estimate Actual Civil works 70.6 128.8 Land acquisition 5.9 20.2 Resettlementa 6.2 0.0 Utility relocation 1.5 7.3 Project implementation services 5.8 12.9 Capacity building for local road construction industry 2.0 2.4 Engineering studies for southern transport corridor 3.4 4.0 Incremental administration costs for executing agencies 1.2 4.1 Contingencies - physical 9.7 0.0 - price 14.4 0.0 Service charge during construction 2.6 3.4 Total 123.3 183.1 a Actual resettlement cost coming under land acquisition. 4. Project schedule Item Appraisal Estimate Actual Date of contract with consultants Q3 1998 Q2 2001 Civil works contract Date of award Q1 1999 Q1 2002 Completion of work Q1 2003 Q3 2008 5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress From 27 February 1999 to 30 December 1999 "S" "S" From 30 January 2000 to 29 June 2009 "S" "S" iv D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Members Fact finding 7 March–2 April 1998 4 108 a, b, l Appraisal 25 June–15 July 1998 7 147 a, c, b, d, e Review 4–19 May 2000 2 30 b Review 9–16 November 2000 4 72 b, f, d Special loan administration 2–13 July 2001 3 36 g, h Review 25–29 November 2002 2 8 f, k Review 3–15 December 2003 3 36 f, m, k Midterm review 15–29 November 2004 2 28 f, k Review 7–16 November 2005 2 18 f, h Review 11–15 December 2006 2 8 f, k Review 5–16 July 2007 3 33 f, I, j Review 26–30 November 2007 1 4 f Review 29 May–4 June 2008 3 18 f, k, h Review 20–22 October 2008 1 2 f Project completion review 2–25 September 2009 2 15 a = senior project economist, b = project engineer, c = senior programs officer, d = social development specialist, e = counsel, f = project specialist, g = transport specialist, h = assistant project analyst, i = control officer, j = consultant, k = project analyst, l = policy and institutional expert 80 o 00'E 81o 30'E SRI LANKA t i ROAD NETWORK IMPROVEMENT PROJECT a Kankasanturai r t S (as completed) k l Kodikamam a P C3a Jaffna C3b C3c National Capital Chief Provincial Town Kilinochchi City/Town P a l k B a y Improved National Road Rehabilitated Flood Affected Road Mullaittivu Tanniyuttu National Highway Provincial Road Mankulam Talaimannar River 9 o 00'N NORTHERN District Boundary 9 o 00'N Puliyankulam Mannar Provincial Boundary Boundaries are not necessarily authoritative. Vavuniya Gulf of Mannar Trincomalee Horowupotana Anuradhapura NORTH CENTRAL B a y o f B e n g a l Tambuttegama Puttalam Kekirawa Welikanda Polonnaruwa Valaichchenai Dambulla EASTERN Batticaloa NORTH WESTERN Chilaw Kurunegala Madampe C7 Matale CENTRAL Polgahawela Kandy Mawanella Ampara Negombo Kegalle C2 Minuwangoda Warakapola Gampola C2 C17 Gampaha o C9 Nuwara Eliya Badulla o 7 00'N C16 Talawakele 7 00'N Colombo Avissawella Welimada C1 SRI JAYAWARDENEPURA KOTTE Hatton Wewalwatte U V A Monaragala F1 Bandarawela Moratuwa Idangoda F5 Panadura C3 Ratnapura Tiruwanaketiya Wellawaya WESTERNF5 Pelmadulla Ayagama F5 Balangoda Kalutara C4 F5 F4 F6 F4 C11 Kukulegama KalawahaF2 C12 Alutgama SABARAGAMUWA Kataragama C13 F2 F6 Tawalama F7 Palmadulla C14 C5 F6 F6 Deniyaya Embilipitiya C10a C15 Morawaka Elpitiya Kotapola SOUTHERN Ambalangoda F8 F3 Mulatiyana Hikkaduwa Pitabeddara Walasmula F8 Wakwella Hakmana F9 F9 Hambantota Akuressa F9 N F7 F8 Weeraketiya Galle F7 Thihagoda Kirinda Tangalle F9 C10b Matara Dickwella 0 10 20 30 40 50 Kilometers I N D I A N O C E A N 80 o 00'E 81o 30'E 09-3455 HR I.
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