Sri Lanka - Road Maintenance Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 8000 PROJECT COMPLETION REPORT SRI LANKA ROAD MAINTENANCE PROJECT (CREDIT 900-CE) AUGUST 7, 1989 Infrastructure Operations Division Country Department I Asia Regional Office This document has a restricted distribution and may be used by recipients only In the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorizaton.  CURRZNCY EQUIVALENTS US$1 = Rs 15.8 Rs 1 = USS0.063 Rs 1 million - US$63,290 SYSTEM OF WEIGHTS AND MEASURESx BRITISH 1 foot (ft) - 0.305 meters l mile (mi) - 1.609 kilometers PRINCIPAL GLOSSARY OF ABBREVIATIONS DBST - Double Bitumen-Surface Dressing DOH - Department of Highways ERR - Economic rate of return GOSL - Government of Sri Lanka MOH - Ministry of Highways OED - Operations Evaluation Department PCR - Project Completion Report PMC - Project Management Cell PR - President's Report RDA - Road Development Authority SAR - Staff Appr&isal Report SD & CC - State Development and Construction Corporation SEC - State Engineering Corporation SLCTB - Sri Lanka Central Transport Board TCEO - Territorial Civil Engineering Organization TFA - Technical and Finance Audit (MOH) VOC - vehicle operating costs SRI LANKA FISCAL YEAR January 1 - December 31  FOR OIILUEONLY THE WORLD BANK Washington. D.C. 20433 U.S.A. Ofto of Duwrecwoal Opratn EvAutim August 7, 1989 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT suBJCT: ProJect Completion Report on Sri Lanka Road Maintenance Project (Credit 900-CE) Attached, for information, is a copy of a report entitled "Project Completion Report on Sri Lanka Road Maintenance Project (Credit 900-CE)" prepared by the Asia Regional Office. Under the modified system for project performance auditing, further evaluation of this project by the Operations Evaluation Department has not been made. Attacbment This document has a restricted distribution and may be used by rfcipients only In the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  .; * - R  YOR OMCLAL USE ONLY SRI LANA P.OAD MAIT3ANCE PROJECT (CREDIT 900-Ca) PROJECT COMPLCTION REPORT TABLE OF CONTCNTS PREFACE ................ * 'ASIC DATA SElEET........................................................ ii EVALUATION SUMHARY ................... , . , . . iil I. INTRODUCTION ....... . It. PROJECT IDENTIFICATION. PREPARATION, AND APPRAISAL ...............2 III. PROJECT IMPLEMENTATION ............................................ 5 IV. COST ESTIMATES AND DISBURSEMENTS ................................. 11 V. ECONOMIC RE-EVALUATION AND BENEFITS ............................II VI. R',LE OF THE BANK ................................................16 VI-I. PERFORMANCE OF THE BORROWER ...................................... 17 VIII. CONCLUSIONS ...................................................... 20 TABLES 1. Procurement Schedule . . ....................................... 21 2. Project Components - Road Rehabilitation ................... 24 3. - Road Rehabilitation under Contract ......25 4. - Bridge Rehabilitation . . .26 5; - Improved P riodic Maintenance ..28 6. - Improved Periodic Maintenance (Asphalt Overlay) ... 31 7. Comparison between Estimated Appraisal and Actual Costs ...... 32 8. Disbursements ........................................... . . ... 33 9. Vehicle Operating Costs ...................................... 34 10. (a),(b).(c),(d) Economic Re-evaluation . . . 36 11. (a).(b).(c).(d) Re-evaluation - Rate of Return . . 40 12. (a),(b),(c), Re-ev'luation - Rate of Return .................. 44 13. Road Maintenance Esp-nditures . . . 47 14. Proposed Five Year Expenditures .............................. 48 15. RDA Organization Structure .... 49 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  APPENDIX OBSERVATIONS BY THE REGION ........................ 0so I. Project Experience... 50 I1. Economic Re-evaluation S3........ 53 MAP IBRD 14040R - Sri Lanka - Road Maintenance Project  SRI LANKA ROAD MANTENANCE PROJECT (CREDIT 900-CE) PROJECT COMPLETION REPORT PRFACE The following is a Project Completion Report (PCR) on Sri Lanka's Road and Bridge Rehabilitation Project. The project (formulated based on the IDA Transport Sector review of 1966, updated in 1976) was identified in December 1977. The total cost of the project was estimated at US$28.885 million equivalent with a foreign exchange cost of USS16.5 million equivalent. According to the Credit Agreement No. 900-CE. dated June 22. 1979, the project was scheduled to be completed by December 31. 1983. but this date was subsequently extended by another 18 months. to June 30, 1985. US$14.95 million out of US16.5 million, were disbursed at March 31. 1986. and the balance was cancelled. The completion of the works on the project were carried out with the funds allocated to the Department of Highways (DON) and the Road Development Authority (RDA), by the Government of Sri Lanka (GOSL). The PCR was prepared by the Project Management Cell of the DOS: the appended observations by the Bank's Asia Region on project experience and economic re-evaluation elaborate on some points raised in the PCR. In accordance with the revised procedures for project performance reporting, this PCR was read by the Operations Evaluation Department (OED) but the project was not audited by OED staff. The draft PCR was sent to rhe Borrower on May 23, 1989, for comments by July 11, 1989, but none were received.  - ii - SRI LANKA ROAD MUINTENANCE PROJECT (CREDIT 900-CE) PROJECT COMPLETION REPORT BASIC DATA SHEET Key ProJect Data Appraisal Actual Expenditure Total Project Cost (US $ million) 28.75 25.50s l/ Loan Amount (US $ Million) 16.5 16.5 * Disbursed (US $ Million) 16.5 14.95 * Date Physical Component Completed 4/83 12/86 I/ Overall Project Rate of Return 36 X 39% I/ Estimated Other Project Data Project Identified December 1977 * Project Appraised October 1978 Final Appraisal April 1979 Begotiations March 1979 Board Approval 1 May 1979 * Loan Agreement Date 22 June 1979 Date of Effectiveness 19 December 1979 Criginal Closing Date 31 December 1983 Actual Closing Date 30 September 1985 * Name of Borrower Government of Sri Lanka Executing Agency Department of Highways Fiscal Year of Borrower 1se January to 31st December Follow-on Project : Name : Sri Lanka Second Roads Project Loan Number : 25L7 - CE Date of Loan Agreement : 9 May, 1985 Amount (U.S $ Million) : 24.0  -iii- SRI LANR ROAD MAINTENWNCE PROJECT (CREDIT 900-CE) EVALUATION SUMMARY PROJECT BACKGROUND 1. The political and socio-economic setting against which the Road Maintenance Project was identified and prepared is discussed in detail in the April 18, 1979 President's Report (PR) paras 3-14, and in the April 11. 1979 Staff Appraisal Report (SAR) paras 1.01-1.05. The first credit for a Highway Project in Sri Lanka was approved by the Board in 1968 and was subsequently cancelled as the Government vanted to change the project approach and scope. Between 1960 and 1976 annual per capital gross national income rose by 0.9Z. Policy changes introduced in 1977 following the election of the United National Party were aimed at resuscitating the economy and to reduce unemployment which, in 1979, was estimated at about one million, or 202 of the labor force. 2. The genesis of the Road Maintenance Project can be traced to a 1976 update of a 1966 Transport Sector Report. There had been no Bank- assisted operations for 11 years. An IDA mission visited Sri Lanka in December 1977 and recommended assistance to road passenger transport and to road maintenance and rehabilitation. Initially, the idea was to have one project cater for both. Eventually, two sepazate projects were financeds one for road maintenance under the Department of Highways, and another for passenger transport under the Ministry of Transport Boards. PROJECT OBJECTIVES 3. The basic aim was to facilitate the transport of goods and passengers and to reduce road transport costs. (PR, para 56). 4. The project was specifically designed to: (a) arrest the deterioration of the road system by a program of enhanced routine and periodic maintenance; and (b) lay the foundation for improved planning of road maintenance and execution of future works. 5. At the completion of the project, and apart from road and bridge rehabilitation works, (a) one demonstration district will have been organized and equipped to carry out road maintenance more efficiently; (b) improved road maintenance methods will have been introduced island-wide; and (c) the DOH will have an increased capability to plan and design roads.  -iv- PROJECT COMPONENTS 6. The project consisted of the following (SAR para 3.03): (a) rehabilite.ion of about 112 miles of road; b) improvement of routine and periodic highway maintenance (resealing and resurfacing of about 150 miles); (c) screngthening. repair or replacement of about 30 bridges; (d) procurement of road maintenance equipment and spares; and (e) technical assistance. 7. At appraisal, physical execution of the project was expected to start in the last quarter of 1979 and to be completed in four years (SARL para 3.14). IMPLEMENTATION EXPERIENCE AND RESULTS S. Under the project, roads and bridges were expected to be rehabilitated by contract. However, there were no bids *nd (except in the participation of small local contractors in the bridge component), the work was executed by force accopt (PCR. paras 3.03, 3.05, 3.06). 9. Experience with both objectives and with the instruments for their pursuit has been mixed. The objectives weres (a) arrest the deterioration of the road system by a program of enhanced routine and periodic maintenance; and (b) say the foundation for improved planning ef road maintenance and execution of future works (paras 7.02-77. The instruments were: (a) organization and equipping of one demonstration district; organization and equipping of Colombo Region did take place (PCR, para 3.22) but results were not lasting (PCR. para 5.07); (b) introduction of improved road maintenance methods island-wides and (c) increased DOH capability to plan and design roads. COMPONENTS 10. Experience with procurement and implementation has been mixed. (a) rehabilitation and limited improvement of about 112 miles of road; a totp