Announcement of IDA Assists Road Transport Project in Sri Lanka on April 21, 1980

., , . - , - FOR IMMEDIATE. RELEASE -A'orldBank 1 ~18 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 80/48 Apr i 1 21, 1980 IDA ASSISTS ROAD TRANSPORT PROJECT IN SRI LANKA The International Development Association {IDA), an affiliate of the World Bank, today announced the approval of a credit of $53 million to help Sri Lanka provide the public with improved bus transport. Road transport is the most important mode of transport in Sri Lanka. Bus passenger transport services are provided by nine Regional Transport Boards which operate bus services over the entire island, supported and coordina- ted by the Sri Lanka Central Transport Board. In 1978, the Regional Transport Board's bus services carried 1,744 mill ion passengers for a total distance of • 17,827 million passenger-kilometers. The impressive bus traffic levels achieved in Sri Lanka despite the deficiencies of the system in terms of unreliability and overcrowding, suggest the existexe of a high and inadequately satisfied demand for public passenger transport. The $86 mill ion project being assisted by IDA is designed to help Sri Lanka provide a more reliable and efficient bus service to meet the growing demand. The project seeks to improve the fuel efficiency of the bus fleet by the purchase of new vehicles and improvement in maintenance standards, reduce vehicle operating costs and to end by 1983 government subsidies for public bus operations. The IDA credit to Sri Lanka is for 50 years, including 10 years of grace. It is interest-free, except for a service charge of 3/4 of 1% per annum to meet IDA 1 s administrative costs. • NOTE: Money figures are expressed in U.S. dollar equivalents . FORM NO. 1121 (5-76) T ECHN I CAL D A T A PROJECT: COUNTRY: TOTAL COST: Road Passenger Transport Sri Lanka $86.4 million • I DA FINANCING: $53 mill ion, standard IDA terms OTHER FINANCING: Government of Sri Lanka IMPLEMENTtNG ORGANIZATION: Sri Lanka Central Transport Board 25 Galle Centre Road Colombo 1, Sri Lanka. PROJECT DESCRIPTION: The project consists of (a) restoration of the capacity of the Sri Lanka Central Transport Board to operate an efficient unit exchange and overhaul service; (b) purchase of chassis and materials, and assembly of 2,100 new buses; (c) improvement of maintenance facilities and pro-. cedures; (d) low-cost traffic engineering measures; and (e) technical assistance. PROCUREMENT: Equipment, machinery, materials, and bus chassis will be procured on the basis of international competitive bidding, with a preference of 15% of the c. i .f. price or the cost of the import tariff, whichever is less, allowed to local manufacturers. CONSULTANTS: Includes 77 man-months of local consultants and a total 143 man-months of expatriate services ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 20% 1983 • - 0 -