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Provincial Roads Project Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 48445 - LK PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED.CREDIT IN THE AMOUNT OF SDR 66.1 MILLION (US$105 MILLION EQUIVALENT) TO DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FOR A Public Disclosure Authorized PROVINCIAL ROADS PROJECT November 11,2009 Sustainable Development Unit Sri Lanka Country Management Unit South Asia Region This document has a restricted distribution and may be used by recipients only in the Public Disclosure Authorized performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective October 3 1,2009) Currency Unit = Rupees 114.25Rupees = US$1 1.58989US$ = SDR 1 FISCAL YEAR January 1 - December 31 ADB Asian Development Bank MLGPC Ministry of Local Government and Provincial Councils AGAOA Association of Government MOT Ministry of Transport Accounts Organizations of Asia AG Auditor General MOFP Ministry of Finance and Planning BP Bank Procedure NCP North Central Province CAS Country Assistance Strategy NEA National Environmental Act CEA Central Environmental NPRDD Northern Provincial Road Authority Development Department CFAA Country Financial NPV Net Project Value EPRDD Eastern Provincial Road PMR Project Management Report Development Department EAMF Environmental Assessment PDO Project Development Objective and Management Framework FOR OFFICIAL USE ONLY Environmental Management PRP I EMPs I Plans Economic Internal rate of RDA Road Development Authority I 1 Return FM Financial Management RFA Reimbursable Forei n Aid FRs Financial Regulations ROW Right Of Way I ~ 1 GAAP I Governance and RIJ Resettlement Plan Accountability Action Plan GOSL Government of Sri Lanka RSAP HDM4 Highway Design and SEPSA Management Version 4 HIV/AIDS Human Immunodeficiency SBD Virus/ Acquired Immune Deficiency Syndrome . ICB International Competitive SIL Specific Investment Loan Bidding IDA InternationalDevelopment SIMF Social Impact Management Association Framework IDF Institutional Development SP Southern Provinces Fund IMF International Monetary Fund STIs IUFRs Interim Unaudited Financial TEC ReDorts InternationalRoughness UPRDD Index Development Department ~~ JICA Japan International voc Vehicle Operating Costs Cooperation Agency M&E Monitoring and Evaluation WA MENS Ministry of Environment and WB World Bank NaturalResources MOHRD , Ministry of Highways and I Rural Development- Vice President: Isabel M. Guerrero Country Director: Naoko Tshii Sector Director John Henry Stein Sector Manager: Michel AudigC Task Team Leader: Tawia Addo-AshonglAmali Rajapaksa This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. SFU LANKA Provincial Roads Project CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE ................................................................. 6 A . Country and sector issues .................................................................................................... 6 B. Rationale for Bank involvement ......................................................................................... 8 C . Higher level objectives to which the project contributes .................................................... 9 I1. PROJECT DESCRIPTION ............................................................................................... 10 A . Lending instrument ........................................................................................................... 10 B. Program objective and Phases .......................................................................................... 10 C . Project development objective and key indicators............................................................ 10 D. Project components ........................................................................................................... 10 E. Lessons learned and reflected in the project design.......................................................... 10 F. Alternatives considered and reasons for rejection ............................................................ 11 I11. IMPLEMENTATION .................................................................................................... 12 A . Partnership arrangements (if applicable) .......................................................................... 12 B. Institutional and implementation arrangements ................................................................ 12 C . Monitoring and evaluation ofoutcomes/results ................................................................ 12 .. D. Sustainabllity ..................................................................................................................... 13 E. Critical risks and mitigating measures .............................................................................. 13 F. Loadcredit conditions and covenant ................................................................................ 14 IV. APPRAISAL SUMMARY ............................................................................................. 15 A . Economic and financial analyses ...................................................................................... 15 B. Technical ........................................................................................................................... 15 C . Fiduciary ......................................................................................... i................................. 16 D. Social................................................................................................................................. 17 E. Environment...................................................................................................................... 18 F. Safeguard policies............................................................................................................. 19 G. Policy Exceptions and Readiness ...................................................................................... 19 Annex 1: Country and Sector or Program Background ......................................................... 20 Annex 2: Major Related Projects Financed by the Bank andlor other Agencies ................. 26 Annex 3: Results Framework and Monitoring ........................................................................ 30 Annex 4: Detailed Project Description...................................................................................... 33 Annex 6: Implementation Arrangements ................................................................................. 41 Annex 7: Financial Management and Disbursement Arrangements ..................................... 51 Annex 8: Procurement Arrangements ...................................................................................... 72 Annex 9: Governance and Accountability Action Plan........................................................... 80 Annex 10: Conflict and Reconciliation Filter ........................................................................... 86 Annex 11: Economic and Financial Analysis ........................................................................... 90 Annex 12: Social Development Issues ....................................................................................... 94 Annex 13: Safeguard Policy Issues............................................................................................ 95 Annex 14: Project Preparation and Supervision ..................................................................... 99 Annex 15: Documents in the Project File ............................................................................... 101 Annex 16: Statement of Loans and Credits ............................................................................ 102 Annex 17: Country at a Glance ............................................................................................... 104 Annex 18: Maps IBRD SRI 36976137351137371..................................................................... 106 SRI LANKA PROVINCIAL ROADS PROJECT PROJECT APPRAISAL DOCUMENT SOUTH ASIA REGION SUSTAINABLE DEVELOPMENT DEPARTMENT, TRANSPORT UNIT Date: November 11, 2009 Team Leader: Tawia Addo-Ashong Country Director: Naoko Ishii Sectors: Roads and highways (100%) Sector Manager: Michel AudigC Themes: Infrastructure services for Sector Director: John Henry Stein p,rivate sector development (P); Rural services and infrastructure (S); Public Project ID: P107847 expenditure, financial management and procurement (S) Lending Instrument: Specific Investment Loan Project Financing Data f 1 Loan TXl Credit r 1 Grant r 1 Guarantee r 1 Other: Source Local Foreign Total BORROWER 0.00 0.00 0.00 International Development Association 35.00 70.00 105.00 (IDA) Total: 35.00 70.00 105.00 Borrower: Democratic Socialist Republic of Sri Lanka Responsible Agency: Ministry ofLocal Government and Provincial Councils Eastern Provincial Council Uva Provincial Council Northern Provincial Council Project Implementation Period: 5 years Start: March 31,2010 End: March 3 1, 20 15 3 ;Y I 2010 2011 2012 2013 2014 4nnual 2 23 40 25 15 Zumulative I 21 25 I 65 I 90 I 105 I Project implementation period: March 3 1, 2010 End: March 3 1, 201 5 Expected effectiveness date: March 3 1, 20 10 Expected closing date: March 3 1, 2015 Does the project depart from the CAS in content
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