Ceylon - Highway Project

sbq 3-C C FI2LE CO9 PY R E S T R RESTRICTED Report No TO-680a This report was prepared for.use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVE-LOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION APPRAISAL OF A HIGHWAY PROJECT CEYLON October 1, 1968 Projects Department  CURRENCY EQUIVALENTS 100 cents = 1 Rupee (R) I R = U$17 1,000,000 Rs US$1671000 FISCAL YEAR October 1 - September 30 WEIGHTS AND MEASURES British/U. S. METRIC EQUIVALENTS I mile (mi) = 1.6 kilometers (km) 1 foot (ft) = 30. 5 centimeters (cm) 1 ton 1016 kilogram (kg) List of Abbreviations Used in the Report CGR - Ceylon Government Railway CTB - Ceylon Transport Board PWD - Public Works Department  C E Y L O N APPRAISAL OF A HIGHWAY PROJECT Table of Contents Page No. SUMMARY . ...............................................- 1. INTRODUCTION ......... .................................1 2. BACKGROUND .......... .................................. 2 A. General ......... .................................. 2 B. Transport Sector .................................. 3 C. Transport Coordination ............................ 4 3. THE HIGHWAY SECTOR .................................... 6 A. The Highway System ................................ 6 B. The Public Works Department ....................... 6 C. Highvay Financing ................................. 7 D. Highway Planning .................................. 7 E. Highway Engineering ............................... 8 F. Highway Construction and Maintenance .... .......... B 4. THE PROJECT ......... .................................. 10 A. General Description ............................... 10 B. Road Rehabilitation and Maintenance Pilot Program 10 C. Improvement of Central Workshop Facilities, and Provision of Equipment for Urgent Highway Maintenance Needs ................................ 11 D. Bridge Replacement ................................ 12 E. Feasibility Studies and Detailed Engineering ...... 12 P. Management and Advisory Services .... .............. 13 G. Project Execution and Timing ..... ................. 13 H. Project Cost and Financing ........................ 15 5. ECONOMIC JUSTIFICATION ..............................18 A. Road Rehabilitation and Maintenance Pilot Program 18 B. Improvement of Facilities for Major Repair and Overhaul of Highway Equipment .... ............... 20 C. Bridge Replacement ................................ 20 D. Feasibility Studies and Detailed Engineering ....... 21 6. CONCLUSIONS AND RECOMMENDATIONS ........................ 22 (Cont'd) This report is based on the findings of an Appraisal Mission comprising Messrs. Bronfman (economist) and Malone (engineer) which visited Ceylon in March 1968.  TABLES 1. Motor Vehicle Statistics 2. Approximate Income and Expenditure, Highway Account 3. Classification and Extent of Public Road System h. Highway Rehabilitation and Maintenance, Workshop and Ancillary Equipment to be Provided under the Project 5. Bridge Replacement 6. Highway Design Standards 7. Management and Advisory Services 8. Economic Evaluation of Road Rehabilitation and Maintenance Pilot Progrsm ANNEX 1. Road Sections for Feasibility Studies MAP CEYLON: Highway System  CEYLON APPRAISAL OF A HIGHWAY PROJECT SUMMARY i. The Government of Ceylon has asked the Bank Group to help finance a highway project comprising (i) a pilot program for road rehabilitation and maintenance; (ii) the provision of workshop and urgently resumed road main- tenance equipment; (iii) bridge replacement; (iv) feasibility and engineer- ing studies for road improvements and (v) management and advisory services to assist in transport coordination, in implementing the project and in re- organizing the highway administration. ii. The total cost of the project would be about US$16.3 million equi- valent. The Bank Group would finance the foreign exchange element of the project estimated at US$9.8 million; the balance of the financing would be met from the national budget. iii. This would be the first Bank Group highway project in Ceylon. A Bank Transport Mission visited the country in November 1965 and identified a number of deficiencies in the highway sector. As a result a Bank Tech- nical Assistance (BTA) study was initiated in mid-1967; the interim report by the US consultants, Wilbur Smith and Associates, provided the basis for the proposed project. iv. The public road system, although generally adequate in extent, has not been properly maintained and many roads need rehabilitation. The works organization is outmoded and the Public Works Department suffers from serious management and organizational defects. The project includes manage- ment and advisory services to assist in the reorganization of the highway administration, and also to assist in studies relating to overall transport coordination. v. Rehabilitation of the public road system and the improved mainte- nance required subsequently will necessitate an appreciable increase in mechanization; the project provides, therefore, for the procedures associated with mechanization to be introduced and tested on a pilot basis before being introduced, at a later date, on a national scale. The savings in vehicle operating costs resulting from the rehabilitation and improved maintenance in the pilot area are expected to provide a return of 40 percent on the investment. vi. Highway equipment in the country is not used efficiently; this is partly due to the present inadequate facilities for major overhaul and re- pairs. Government is therefore constructing new central workshops, specifi- cally to cope with the major workshop requirements of the country's highway equipment; the project includes the provision of the workshop and ancillary equipment for this new facility. vii. The 19 bridges included for replacement - some more than a century old - are the most dangerous in the public road system and their replacement is justified purely from a safety viewpoint. Risk analysis supports the replacement.  - ii - viii. Highway construction in recent years has been almost exclu- sively the preserve of departmental forces but participation by the private sector will be required in future to carry out the necessary rehabilitation of the country's roads and bridges. The project provides, therefore, for the bridge replacement to be carried out both departmentally and by contract. Designs for bridge replacement by departmental forces would be based on standard designs and the work would be supervised departmentally; only the materials and equipment required for this work, and procured on the basis of international competitive bidding, would be financed by the Bank Group. Bridge replacement by contract would be awarded on the basis of interna- tional competitive bidding; this work would be designed and supervised by consultants. ix. The feasibility studies and detailed engineering included in the project would help to prepare highway projects for subsequent financing. x. The project provides a suitable basis for a Bank loan of US$4.9 million and an IDA Credit of Us$4.9 million to the Government of Ceylon.  CEYLON APPRAISAL OF A HIGHWAY PROJECT I. INTRODUCTION 1.01 The Government of Ceylon has requested the Bank Group to help finance a highway project comprising: (i) a 3-year pilot program of road rehabilitation and maintenance including the provision of equipment; (ii) the improvement of workshop facilities for major repairs and overhaul of highway equipment including the provision of equipment for the proposed central workshops, and the pro- vision of equipment to meet the most urgent road maintenance needs of the parts of the country not covered by the pilot program. (iii) replacement of 19 bridges on the main roads of the country; (iv) feasibility studies and detailed engineering; (v) management and advisory services to assist the Government in implementing the project, in reorganizing the highway depart- ment, and in studying the problems of transport coordination. The project is estimated to cost about US$16.3 million equivalent and the Government is requesting the Bank Group to finance the foreign exchange component, estimated at US$9.8 million. 1.02 The highway system of Ceylon was first examined in depth during 1961/62 by a US consulting firm, Wilbur Smith and Associates, financed by USAID. In 1965, a Bank Transportation Mission identified a number of pro- blems in the highway sector. As a result a Bank Technical Assistance (BTA) study, using the same consultants, was initiated in 1967 primarily to draw up (i) a master plan for the rehabilitation and development of the primary and secondary highways for the period 1968 through 1977 and (ii) a program for the improvement of highway administration and maintenance. The consul- tants submitted their interim findings, identifying a first highway project, in February 1968; the draft report of the BTA study has been reviewed by the Government and the Bank, and the consultants will now prepare their final report. 1.03 This present report is based on the findings of an appraisal mission comprising Messrs. Bronfman (economist) and Malone (engineer) which visited Ceylon in March 1968.  - 2 - 2. BACKGROUND A. General 2.01 Ceylon i8 a small island with an area of 25,000 sq mi, which is about half that of England or twice that of Maryland. It is about 250 miles from north to south and 150 miles from east to west. Most population and economic centers are grouped together, favoring movement by road. 2.02 Topographically, the island resembles a hat. There is a "crown" of mountains, rising to peaks of 7-8,000 feet, surrounded by a narrow "brim" of coastal land on the east, south and west that extends into a tapering plain on the north pointing towards India. The rivers, which flow in a radial pattern from the mountains, are of no navigational significance. 2.03 Ceylon's population is about 11.5 million and is increasing at 2.4 percent per annum. About 60 percent of the population lives in the southwest quadrant of the island where there are population densities of over 1,000 per sq mi at many points in the 100-mile coastal strip which extends from north of Colombo, the capital and main seaport, to Matara in the south. The only other area of dense settlement is the Jaffna plain in the north. These two heavy concentrations of population generate short- distance movements of goods and people that can well be met by road transport. 2.04 The densely populated coastal strip is primarily devoted to coconut production for both export and domestic consumption, and to rice and vege- table production for local consumption. The mountainous interior of the southern half of the country -- the so-called wet zone -- is devoted largely to the production of rubber and tea, the two main export crops. The interior of the northern part of the country -- the so-called dry zone -- is mainly devoted to the cultivation of rice under irrigation. 2.05 The production of rubber and tea is not markedly seasonal nor does it generate the long-distance, bulk-haul type of movement suited more to transport by rail than by road. Moreover, although the rugged terrain in the interior imposes similar characteristics on both roads and railways - steep grades and circuitous alignments - these operate less severely on road transport. 2.06 The relatively high value of Ceylon's rubber and tea exports is such that they can bear present road costs in the country. Should these costs rise significantly as a result of deterioration of the road system, some marginal producers of these commodities would go out of business. As a result the volume of exports would fall and the foreign exchange earnings of Ceylon decrease accordingly. 2.07 Ceylon's GNP was Rs. 8.12 billion in 1966 and has been groving, in real terms, at about 1.6 percent p.a. in the present decade. The economic situation in the country has been reviewed in recent Bank reports, notably "Problems of Foreign Exchange and Long Term Growth of Ceylon" dated February 5th, 1968.  -3- B. Transport Sector (i) Highways 2.08 Ceylon has had for a number of years a relatively extensive high- way network, developed largely to serve the needs of the plantations and to bring the tea and rubber to the ports. The present system totals about 30,000 miles, of which some 10,000 miles are bituminous paved. The remainder consists mainly of earth roads, many of which are motorable only in the dry season. The heavy rainfall is a particularly difficult problem for road maintenance. Together with the terrain characteristics it accounts for the large number of bridges in the road system. (ii) Vehicle Fleet 2.09 The motor fleet at the end of 1967 totalled about 125,000, made up, roughly, of 84,ooo automobiles, 29,000 trucks and vans, 9,000 buses and some 3,000 tractors and trailers used mainly on tea, rubber, and other agri- cultural estates. The present vehicle fleet is equivalent to an average of one vehicle for 90 persons, compared with one for 330 persons in West Pakistan and one for 600 persons in India. The characteristics and growth of the vehicle fleet in recent years are given in Table I. 2.10 Since 1960 imports of vehicles, spare parts, and tires have been severely restricted for balance of payments and other reasons. Since 1966, the Government has given priority in the use of its extremely limited foreign exchange to the import of tires and spare parts, to rehabilitate the existing vehicle fleet and keep down operating costs. 2.11 Trucking is privately owned and the small operators predominate. Public road transport was nationalized in 1958 and made the responsibility of the Ceylon Transport Board (CTB) which is now the largest passenger carrier in the country. It carried about 1.0 billion passengers for 5.5 billion passenger-miles in 1966-67 as compared with 75 million passengers for 1.5 billion passenger-miles on the railway. Although the CTB's average revenue per passenger-mile is only USi0.5, the very high load factor has allowed it to earn a small profit since 1962. (iii) Railways 2.12 The rail network is small - 922 route miles - most of which is broad gauge. The Ceylon Government Railway (CGR) is run as a Government department. The tonnage of goods carried annually by the railway has fluctuated around 1.6 million for the past 15 years, but net ton-miles have increased from about 150 million to 200 million. The CGR has lost some short-haul traffic to the roads, but has managed to increase its longer- haul traffic as a result of the Government directing its own traffic to the railway and of the limitation on truck imports. The 1965 Bank Mission con- cluded that there was a specialized role for the railway for a number of years ahead. It supported, therefore, the dieselization of the railway on the ground of cost saving to reduce its operating deficit. This is now being undertaken with loans from the UK, Federal Republic of Germany and  Democratic Republic of Germany. The Bank Mission pointed out, however, that this step should be taken in conjunction with others to introduce traffic costing as the basis for a proper rates and fares policy, the closing of an 87-mile uneconomic line, a reduction in railway staff by wastage and non-recruitment, and an actuarial examination of pension costs together with a number of other operational measures. (iv) Ports 2.13 Ceylon has two main ports - Colombo and Galle in the southwest. Colombo has the equivalent capacity of about 14 deep-water berths, together with 20 midstream anchorages. Given proper operations, some additional handling equipment and minor improvements, its capacity appears adequate to meet present and immediately foreseeable needs. At Galle three new berths and transit sheds have been recently completed. At Trincomalee, Ceylon has one of the best natural harbors in the Far East. The facilities available (mooring, jetties, and storage tanks, etc.) formerly used by the British Royal Navy are slowly deteriorating from lack of maintenance. Traffic through this port is now very small. (v) Aviation 2.14 There are two international airports; Ratmalana (about 10 miles south of Colombo) is used for turbo-prop traffic to India, Katunayake (18 miles north of Colombo) has been extended and modernized under Canadian external aid and is used by international jets. Internal services are provided by Air Ceylon but aviation does not, as yet, play a significant role in Ceylon's internal transport. C. Transport Coordination 2.15 This is a long-standing and long-recognized issue in Ceylon that mainly concerns the relative roles of road and rail transport. An official Commission of Inquiry has recently added its report to a wealth of earlier reports of various commissions, committees, departmental investigations and visiting experts in which the principles of transport investment, costing, pricing and coordination have been set out and appropriate recommendations made. Despite the abundance of sound advice Ceylon still does not have a coherent transport policy or an effective machinery for coordination. 2.16 The problem is not that of low road-user charges, which would result in an uneconomic diversion of traffic from the railway, since over the past years receipts from vehicles licenses, fuel tax and customs duties on vehicles and parts have been approximately three times the expenditure on the highway system (Table 2). The problem is rather of ensuring that project investment decisions are based on sound economic analysis and that the railway and nationalized bus transport service employ cost-oriented pricing systems. For example, railway freight rates and passenger fares, as well as bus fares, have been almost unchanged for over a decade. Fortun- ately, as mentioned in para. 2.11, because of high load factors the bus company has managed to make small profits in recent years. On the railway,  -5- however, the Government has had to give direct support (to meet annual oper- ating deficits) and indirect support (to meet renewal and capital develop- ment expenditures). 2.17 The 1965 Bank mission recommended that a small unit be set up in the Ministry of Planning and Economic Affairs with the tasks of (i) making the various transport agencies present fully documented and reasoned cases for their investment proposals; (ii) analysing and evaluating such proposals; and (iii) assigning appropriate economic priority thereto. Such a unit would also be expected to make recommendations on overall transport policy and on rates and fares which would adequately reflect the economic costs of the service provided by the different transport modes. Although Government, with assistance from the UNDP, has taken some steps in improving overall economic planning, much remains to be done particularly in the transport sector. The project therefore includes the establishment of a unit as described above, and provision has been made under the loan and credit to finance the cost of a qualified economist to direct it in the initial stages (para. 4.18). 2.18 Further requirements will be necessary in the transport sector to provide essential information for the unit referred to in para. 2.17. First, costing of highway construction and maintenance should be improved; the measures included in the project, and referred to in paras. 3.10 and 4.19 would insure this. Second, accurate information relating to road transport should be established; the project includes a study to identify the economic costs of providing roads and road transport and to determine an appropriate pricing policy for the use of the road system. Provision has been made under the loan and credit for the cost of expert assistance required in connection with such a study (para. 4.18). Third, accurate costs, and a re-structured tariff which would adequately reflect them, should be determined for the railway; the project includes, therefore, the establishment of a costing unit for this purpose in the CGR.  - 6 - 3. THE HIGHWAY SECTOR A. The Highway System 3.01 The public road system consists of about 13,000 miles of road divided into 5 classes which represent a gradation in standard from the most important national roads (Class A) to the simplest earth roads in country districts (Class E). About 10,000 miles of this system are paved, generally with asphaltic surface treatment; exceptionally, and on the heavily trafficked roads near the major centers of population, paving is with high quality asphaltic concrete. The mileage of paved roads, in pro- portion to population and area, is high in Ceylon compared with neighboring countries. India with 40 times the population and 50 times the area has only 8 times this mileage of paved roads; Pakistan has about the same mile- age as Ceylon but supports 8 times the population and is 15 times as large. 3.02 There are about 17,000 miles of roads outside the public road system; some Government departments and agencies, notably the Irrigation Department and the River Valleys Development Board, build and maintain roads in connection with specific schemes; the estate companies maintain a large mileage of roads within their estates, and local authorities are responsible, in many cases, for the road system within municipalities. Much of the mile- age built in connection with specific Government schemes becomes part of the public road system when the schemes are completed. The growth of the system in recent years has been due more to roads thus acquired than to new construc- tion. Details of the system and of growth in the past years are given in Table 3. 3.03 The road network has the characteristics of one which has developed from tracks laid down before the advent of the motor vehicle; alignments are tortuous, curves are too sharp and gradients too steep by modern standards. The bridges are also unsuitable for modern vehicular traffic; many were erected in the days before structural design was established as a science. Even on the main routes some are more than a century old; almost all are single-lane. B. The Public Works Department 3.04 The Public Works Department (PWD) is responsible for the design, construction and maintenance of the public road system; it is also respon- sible for all Government buildings. In addition through its central work- shops - an organization 120 years old - it is responsible for repair, main- tenance and in some cases manufacture of a variety of equipment for other Government departments. The organizational and administrative procedures in the Department are, however, cumbersome and outmoded; costing methods, in particular, are inadequate, and inventories are not maintained on a logical basis. 3.05 The multiplicity of the PWD's responsibilities has the disadvan- tage that the professional and technical staff are attempting to cope with an excessively wide variety of tasks. As a result no single aspect of the  - 7 - PWD's work receives the attention it warrants, and staff tend to be semi- proficient in many areas but expert in none. This has an adverse effect on the morale of the younger, modern trained engineers - who see their professional expertise ill-used - and staff turnover is high. 3.06 The highway system cannot be administered satisfactorily under the present arrangements; the project includes, therefore, the separation of highway and related activities from the other functions currently the responsibility of the PWD within 12 months of the date of effectiveness of the proposed loan and credit. In addition, the project allows for the orga- nization and procedures appropriate for such a separate highway organization to be studied by consultants, and for consultations with the Bank Group be- fore the optimum organization and procedures are adopted by that Government. C. Highway Financing 3.07 All costs of the inter-urban public road system are met by Govern- ment. Capital costs of roads within municipalities are met by Government, maintenance normally being met from local revenues; important public roads, however, which pass through municipalities receive maintenance grants from Government. Roads which are the responsibility of other Government depart- ments are built and maintained by those departments. 3.o8 Expenditure on construction and maintenance of the public road system has been increasing. In 1965/66 expenditure was about Rs. 42 million; in the current fiscal year, it is estimated at Rs. 65 million. In both cases, maintenance accounts for about 60 percent of the expenditure. Planned ex- penditure, through 1971, allows for the current rate of expenditure to be maintained at least. The BTA Study (para. 1.02) indicates, however, that in addition to maintenance expenditures an average annual expenditure of Rs. 100 million will be required over the next ten years if the system is to be ade- quately rehabilitated and reconstructed. The draft final report on the BTA Study has been reviewed by the Government and the Bank. D. Highway Planning 3.09 Plans for new work and betterments originate in the Traffic and Planning Branch of the PWD. No serious economic analysis is built into highway planning and elimination of proposed new works during the screening process appears to be on other than technical and economic grounds. 3.10 Planning for highways will be retained within the proposed separate highway organization, which will be strengthened by the addition of an eco- nomist with a view toward the preparation of adequate pre-investment studies. 3.11 Wilbur Smith, in its 1961/2 study recommended that legislation be introduced dealing specifically with vehicle weights and dimensions. The Government will introduce and implement measures designed to limit the dimensions and axle loads of vehicles using the roads and bridges in the highway system.  -8- E. Highway Engineering 3.12 Design standards have been prepared by Wilbur Smith and accepted by the PWD, (Table 6). These standards are satisfactory although they are not always complied with in departmental design. 3.13 Engineering of new work is occasionally carried out by consultants, more usually by PWD; this reflects the current preference of Government, evident in both design and execution of works, for the public rather than the private sector. In recent years only one consulting firm, Husband and Partners, (UK), has been retained for highway work. 3.14 All highway bridges in the country are now designed by the Bridge Section of the PWD. This Section, under an able Chief Engineer, is techni- cally capable. Bridge design is largely based on a number of standard de- signs in prestressed concrete; this partial standardization is effective in that it enables bridges to be designed speedily although possibly at some loss of economy. 3.15 The PWD has a research section which is adequately equipped and has a qualified staff. The section is, hovever, largely wasted in that it is not effectively involved in the work of the Department. The proposed reorganization should ensure that the research staff is involved in all aspects of highway engineering and construction. F. Highway Construction and Maintenance 3.16 New road construction is being shared between the PWD and the Army. The work of the Army unit bas the advantage of military discipline. The PWD work, on the other hands suffers from low output of labor as a result of the generous policy of the Government with respect to annual and sick leave and the number of official holidays. The PWD estimates that labor, by taking full advantage of all these benefits, may legally work as little as 141 days per year. 3.17 The work of the PWD also suffers as a result of the number of different makes of equipment it holds. In recent years the Department has frequently been obliged by Government to obtain its equipment through bila- teral aid and bilateral trade agreements with other countries. Some of this equipment is inferior; much of it is frequently out of service because of difficulty in obtaining spares. The number of makes also results in unneces- sarily large inventories. 3.18 New bridge construction, which is confined almost entirely to the replacement of existing bridges, is carried out by the PWD Bridge Section. As in the case of design, this Section is very capable although it could employ, with advantage, modern management techniques in its construction operations. 3.19 Minor new works, betterments and maintenance are carried out by the "overseer" system. Overseers are employees of PWD who directly recruit,  - 9 - and pay, labor to carry out this work and for which the Government reimburses them on a schedule of rates. The overseer is, therefore, both an employee of, and contractor to, Government. The extent to which the district engineers exercise control over the overseers varies appreciably. The result is un- satisfactory; the work of the overseers varies from indifferent to bad, and the district engineers, generally professionally qualified engineers, are frustrated by their inability to produce good quality work. Road mainte- nance, in particular, suffers under this system. The project requires the overseer system to be phased out gradually and replaced by an organization in which executive engineers exercise direct control over work. 3.20 A small private sector consisting of about 8 firms of civil engi- neering contractors currently handles about US$10 million of work per annum, some of it on road works in connection with agricultural schemes, irrigation schemes and with work of the River Valleys Development Board. The maximum size of contracts handled is about US$4 million equivalent. The contractors would be prepared to undertake road work for the PWD, provided that the work would be supervised by consultants.  -10 - 4. THE PROJECT A. General Description 4.01 The project comprises: (i) a 3-year pilot program designed to introduce, demonstrate and prove mechanized procedures for road rehabilitation and maintenance; (ii) the improvement of workshop facilities for major repairs and overhaul of highway equipment including the provision of equipment for the proposed central workshops, and the provision of equipment to meet the most urgent highway maintenance needs of the parts of the country not covered by the pilot program; (iii) the replacement of 19 dangerous and restrictive bridges on the main roads; (iv) feasibility studies of approximately 250 miles of main roads, including a study to define the main routes in and from the city of Colombo, and detailed engineering of approximately 100 miles of main roads; and (v) management and advisory services to assist the Government in implementing the project, in reorganizing the highway department, and in studying the problems of transport coordination. B. Road Rehabilitation and Maintenance Pilot Program 4.02 Neither the routine maintenance of public roads, (the repair of shoulder defects, the clearance of ditches and culverts and the repair of localized pavement defects), nor their periodic maintenance (re-sealing of pavements every few years), is satisfactory. As a consequence the condition of the road network is deteriorating. This lack of maintenance is particu- larly serious on paved roads which, if allowed to break up, are more expensive to rehabilitate than gravel or earth roads. Greater mechanization will be required to ensure an adequate level of maintenance in future and a program of rehabilitation will be required to bring roads which have deteriorated into a condition in which routine and periodic maintenance may thereafter be carried out. 4.03 Mechanized procedures should be introduced on a pilot basis, so that training and operational techniques, appropriate to conditons in Ceylon, may be determined before being applied throughout the country. Represent- ative types of terrain, materials, etc. are found in the PWD Southern Divi- sion, (see Map), which will be used as the pilot area. This Division has about 1500 miles of public roads of all classes of which about 900 miles are paved and the remainder gravel or earth.  - 11 - 4.04 Under the pilot program, improved maintenance will be carried out on the whole of the mileage in the Division and rehabilitation, mostly on the paved roads, on an estimated 300 miles. The rehabilitation will gene- rally restore roads to the condition prior to deterioration; only in limited cases - typically where short lengths of road cross paddy fields, have been built too low and have failed - will an improvement be effected. The im- proved maintenance under the pilot program will ensure that prior to reha- bilitation the roads will not deteriorate further and that after rehabili- tation the restored roads will be preserved. 4.05 The provision of equipment to the value of US$3.2 million is in- cluded in the project. Approximately two-thirds of this equipment would be primarily for rehabilitation work, the remainder primarily for maintenance. A more precise breakdown of equipment cost would not be meaningful since some of the equipment would be used for both operations. The types of work to be carried out in the pilot program and details of the equipment to be supplied are given in Table 4. C. Improvement of Central Workshop Facilities, and Provision of Equipment for Urgent Highway Maintenance Needs 4.o6 The project would assist in a general improvement in the standard of highway maintenance throughout the country by (i) the provision of equip- ment for a proposed central workshop designed to repair and overhaul all the highway equipment in the country, and (ii) the provision of equipment to meet the most urgent maintenance needs of the areas not covered by the road rehabilitation and maintenance pilot program. 4.07 Minor repairs to PWD highway equipment are currently carried out locally by privately-owned garages and repair shops; major repairs are dealt with by the existing central workshops in Colombo where because of competing demands by other Government departments, repairs are unduly delayed. The equipment to be provided for the pilot rehabilitation and maintenance program would aggravate the difficulties of the existing central workshops unless additional facilities were provided; conversely, the lack of adequate repair facilities could jeopardize the success of the program. 4.08 Government has already decided to construct a new central workshop in Colombo specifically for the repair and overhaul of the country's highway equipment, which is valued, on a present-day replacement basis, at about US$17 million. The project includes the supply of equipment for the proposed central workshop and costing about US$780,000. Details of the workshop equip- ment are given in Table 4. 4.09 The equipment necessary to meet the most urgent highway maintenance needs of the parts of the country not covered by the pilot program can be assessed accurately only when, as a result of the introduction of equipment costing and of other organizational changes included in the project, the potential output of the existing equipment has been fully developed. A provisional sum, therefore, is included in the project, (Table 4), to allow for such additional equipment.  - 12 - D. Bridge Replacement (Table 5 and Map) 4.10 There are hundreds of old, single-lane, wrought iron or steel bridges on the main roads of Ceylon. Some are more than 100 years old and their condition varies from marginally acceptable to unsafe for modern traffic, depending on their location and the adequacy of past maintenance. The proportions of some of the structural components of these bridges are a clear indication that the bridges were not intended to carry vehicular traffic; indeed many of them were fabricated many years before the advent of the motor vehicle. 4.11 The replacement of 19 of these bridges, judged by the Government, the consultants and the Bank Group to be of the highest priority, is included in the project. Traffic over the bridges chosen varies between 200 vpd and 1500 vpd, and loading is generally limited to a single 5-ton vehicle on the bridge at any time. 4.12 Four bridges (Table 5; Nos. 3, 11, 13 and 15) are on routes chosen for feasibility studies (see next para.). In each instance, however, the replacement bridge would still play a vital role on the existing road which, if the route were realigned, would be retained as a service road. E. Feasibility Studies and Detailed Engineering 4.13 The project includes feasibility studies for the improvement of five road sections totalling about 250 miles, on the three main routes lead- ing into Colombo, on a further route in the hills east of Colombo, and on the east coast (see Map). The road sections chosen, which include some of the most heavily trafficked and congested routes in the country are (i) Colombo- Kandy-Katugastota (approximately 70 miles); (ii) Colombo-Galle (70 miles); (iii) Colombo-Negombo (20 miles); (iv) Hanvella-Avissawella-Ginigathena (40 miles); and Batticoloa-Trincomalee (50 miles). Detailed descriptions of these five road sections and of the areas which they serve are given in the Annex. 4.14 Road sections (i) through (iv) above exhibit similar deficiencies: narrow pavements; narrow or non-existent shoulders; uncontrolled "ribbon" development of shops and dwellings so close to the road that, in many cases, the side drains of the road are blocked; tortuous alignments; steep gradients and inadequate sight distance. Traffic is currently averaging about 3000 vpd, peaking to about 16,000 vpd. Because of extensive ribbon development, loca- lized improvement of pavement, shoulder and side drainage along these roads would be possible only at the expense of considerable land and building acquisition. However, even with such improvements, unsatisfactory geometric alignments would remain. The feasibility studies, therefore, would investi- gate the practicability of, and appropriate timing for, a complete realign- ment of these routes. 4.15 Road section (v) above is part of the east coast road and passes through an area which is becoming increasingly important because of its rice production and its tourist potential. The service provided by the road is, however, seriously reduced because of the congestion caused by seven ferries.  - 13 - The proposed feasibility study would investigate a major relocation of the road inland to eliminate the need for ferries. 4.16 Since road sections (i), (ii), and (iii) form the main routes into Colombo, the problem of the best access to the city needs to be re- solved, particularly since planning for the city is not far advanced. The feasibility studies therefore include a limited study of Colombo, primarily to define the main routes in the city and their termination on the boundaries. 4.17 Detailed engineering of about 100 miles is included in the project as the sequence to the feasibility studies. The selection of the road sec- tions for detailed engineering would be based on the results of the studies, and Government would seek the Bank Group's agreement to the sections chosen. F. Management and Advisory Services 4.18 To meet the need for a logical policy on transport coordination, (para. 2.15), the project includes the setting up of a transport planning unit, charged with the evaluation of investment proposals for the various transport modes, a study of road transport costs and prices, and the establish- ment of a costing unit in the railway (paras. 2.17 and 2.18). The project provides for the services of a qualified economist to head the planning unit in the initial stages, and for expert assistance on road transport costing. The experts required would be recruited directly by Government. 4.19 The project includes the reorganization of highway activities (para. 3.06) and the provision of the necessary experts in organization, costing, highway planning and design, material evaluation and training. The project also includes the provision of expert advice to assist in the road rehabilitation and maintenance pilot program, and in the operation of the new central workshop. All these activities are inter-related and the con- sultant services proposed should, therefore, be ,ntegrated. The consultants should be provided as a team by a single firm, and one of the experts should, additionally, be designated as team leader to co-ordinate and supervise the team's work and to provide liaison with the Government. The consultants chosen for this work would be approved by the Bank Group. 4.20 The project provides for 165 man-months of management and advisory services. Details of the responsibilities of the experts and of the pro- posed phasing of their services are given in Table 7. G. Project Execution and Timing 4.21 The road rehabilitation and maintenance pilot program would be executed by the reorganized highway department with assistance from experts provided under the management and advisory services. Under the project the overseer system (para. 3.19) would be gradually phased out of the relevant areas of the Southern Division as the pilot program is implemented. 4.22 The proposed central workshop organization (para. 4.08) would likewise be operated by the reorganized highway department with assistance from experts. All highway equipment would be rented at economic rates to  - 14 - the works organization by the central workshop and the latter would be responsible for establishing such rates and for operating the system of equipment renting. 4.23 Bridge replacement is well-suited for participation by private contracting firms. However, the large program of bridge replacement which will be necessary in the coming years will require the maximum efforts both of Government forces and private firms. This present project should, there- fore, act as a stimulus and encouragement to both elements although, in view of the urgency of replacement and given the present capacity of the contrac- ting firms, the greater part of the work should be carried out by the Bridge Section. 4.24 The replacement of seven bridges (see Table 5 and Map) would be carried out by contract; the bridges chosen represent a convenient geographical grouping and the replacement cost is estimated at about US$1 million (including contingencies). This work would be awarded on the basis of international com- petitive bidding, although foreign participation would be unlikely. Although the PWD's standard bridge designs would be suitable for the replacement struc- tures, the latter would be designed by consultants, acceptable to Government and the Bank Group, as a means of testing the Department's designs. This construction by contract would be supervised by the consultants. 4.25 The replacement of the remaining 12 bridges would be by the Bridge Section using the Department's standard designs; the Bank Group would finance only the imported materials and equipment for this work. Supervision would be carried out departmentally. 4.26 All imported material and equipment, including that for the road rehabilitation and maintenance pilot program and for the new central work- shop, would be procured by international competitive bidding, in accordance with the Bank/IDA Guidelines. Bidding documents would be prepared by Govern- ment and submitted to the Bank Group for review to ensure that they conform with the Guidelines. Equipment would be procured through separate contracts for each type or for each group of similar types. The rate of procurement would be geared to Government's ability to handle, maintain and repair the equipment. Suppliers would be required to provide adequate servicing and spare parts facilities. Contracts would be awarded on the basis of the lowest evaluated bids with the advantages of standardization being taken into account. 4.27 No planning or design of major road works has been carried out in recent years in Ceylon; the PWD, as a result, has not had the opportunity to become proficient in feasibility studies or in the detailed engineering which would normally result therefrom. Expert assistance will therefore be required for the studies and engineering included in the project. 4.28 The feasibility studies would be carried out by consultants, accept- able to the Government and the Bank Group. The exit from the city to the south (by the Colombo-Galle road, A-2) is less defined and more dependent upon the configuration within the city than the exits to the north (by the Colombo-Kandy road, A-1, and the Colombo-Negombo road, A-3). An appropriate  - 15 - grouping of the feasibility studies would be for the studies of the Colombo- Galle and Colombo-Negombo roads to be carried out in conjunction with the limited study of Colombo as a single contract, and for the remaining feasi- bility studies to be carried out as a separate single contract. Detailed engineering resulting from the studies should likewise be carried out by consultants. Both in the studies and engineering, there should be arrange- ments for counterpart training. 4.29 The 3-year pilot rehabilitation and maintenance program, and the reorganization and procurement which would be essential prerequisites there- to, would be the most critical element in the determination of the project period. The reorganization and procurement is expected to take about one year; a project period of about 4 years would therefore be appropriate. H. Froject Cost and Financing 4.30 The cost of the project, including allowance for contingencies, is estimated at US$16.3 million equivalent, with a foreign exchange component of US$9.8 million. Details are as follows: (US$ Equivalent) Local Foreign Total Currency Exchange Cost 1. Road Rehabilitation and Maintenance Pilot Program 3,000,000 3,200,000 6,200,000 2. Provision of Equipment for Central Workshop and for most urgent highway maintenance needs - 1,300,000 1,300,000 3. Replacement of 12 bridges by departmental forces 1,710,000 1,170,000 2,880,000 4. Replacement of 7 bridges by contract 490,000 330,000 820,000 5. Design & Supervision of 4. 30,000 100,000 130,000 6. Studies & Detailed Engineering 320,000 1,800,000 2,120,000 7. Management and Advisory Services 100,000 630,000 730,000 5,650,000 8,530,000 14,180,000 Contingencies (Physical (@ 10%) 570,000 850,000 1,420,000 (Price (@ 5%) 280,000 420,000 700,000 6,500,000 9,800,000 16,300,000  - 16 - 4.31 The cost estimates for highway equipment, workshop and ancillary equipment have been based on preliminary quotations received from equipment manufacturers. The cost estimates for bridge replacement and highway mainte- nance operations have been based on costs for similar work in Ceylon and on costs for comparable work elsewhere. The cost of studies has been estimated using unit rates for comparable work in other countries. The cost of detailed engineering and of design and supervision of bridges to be constructed by contract have been assessed as a percentage of the estimated construction cost of this work. The cost of consulting and advisory services has been estimated on the basis of the man-months required, using the rates obtaining in the BTA Study. An appropriate contingency allowance for procurement of equipment, civil works and consulting services is considered 10 percent for variation in physical quantities and 5 percent for price escalation during the project period. 4.32 The foreign exchange components of the elements of the project have been estimated as follows: (i) highway rehabilitation and maintenance equipment, and workshop equipment, 100 percent; (ii) bridge replacement by departmental forces, 40 percent, representing the imported materials and the depreciation of imported equipment involved in the work; (iii) bridge replacement by contract, 40 percent also, since it is probable that this work would be carried out by local firms; (iv) studies, detailed engineering and supervision, and manage- ment and advisory services, 85 percent, based on the experience of the BTA Study. The total foreign exchange component of the project on the above basis would be approximately US$9.8 million (equivalent to 60 percent of project cost). Government has indicated that local costs would be met from the budget. 4.33 Estimated annual requirements of foreign currency for the project would be as follows: Bank/IDA Fiscal Year 1968/69 1969/70 1970/71 1971/72 Total Amount (US$ million) 3.9 4.o 1.2 0.7 9.8 The estimated foreign exchange requirement would be met by the proposed Bank Loan of US$4.9 million equivalent, and IDA Credit of US$4.9 million equivalent. It is proposed that the IDA Credit be fully disbursed or committed before disbursement under the Loan commences. If disbursements are made in accord- ance with the above estimate, the IDA Credit would be fully disbursed before the end of 1969.  - 17 - The Loan and Credit would be disbursed: (i) for bridge replacement by departmental forces; by reimbursing Government (a) the foreign exchange cost of the imported materials required for the work, and (b) the foreign exchange cost, up to a maximum of us$0.6 million, of imported bridge construction equipment, representing the estimated depreciation of imported equipment involved in the work, (ii) for bridge replacement by contract; by reimbursing Government 40 percent of the payments made under the construction contracts; (iii) for the rehabilitation and maintenance pilot program for equipping the central workshops and for the most urgent road maintenance needs; by financing the cost of imported equipment; (iv) for the studies, engineering, supervision and management and advisory services, by financing the foreign exchange costs of the consultants. Any savings from the proposed project should be cancelled.  - 18 - 5. ECONOMIC JUSTIFICATION A. Road Rehabilitation and Maintenance Pilot Program 5.01 The road rehabilitation and maintenance pilot program would reha- bilitate an estimated 100 miles of paved road a year in the Southern Divi- sion and would provide improved maintenance for the whole of the public road system in the Division (about 900 miles of paved roads and 600 miles of earth roads). The improved maintenance would be carried out both on roads awaiting rehabilitation, to prevent further deterioration, and on rehabilitated roads, to preserve them in their improved condition. The weighted average life of the equipment is assessed at nine years; thus all the paved roads in the Division could be rehabilitated by the equipment during its useful life. 5.02 The economic justification focuses on the 900 miles of paved roads. It is conservative in that the equipment to be provided under the project would include sGme items primarily for the maintenance of earth roads, but the benefits arising from such maintenance have not been included since the relationship between vehicle operating costs and the condition of earth roads is not readily quantifiable. 5.03 The methodology considers the paved roads in units of 100 miles, that is the yearly mileage to be rehabilitated. In the first year 100 miles are considered rehabilitated and the remaining 800 miles adequately maintained; in each of the succeeding years, through the ninth year, a further 100 miles are considered rehabilitated and the remaining 800 miles - some of which would already have been rehabilitated, the remainder would still be awaiting rehabilitation - are considered adequately maintained. 5.04 The benefits of the rehabilitation and maintenance are expressed in terms of vehicle operating costs and are taken as: (i) the savings which would result from the prevention of further deterioration of paved roads awaiting rehabilitation; and (ii) the reduction in vehicle operating costs on the rehabilitated pavements, adequately maintained. Two assumptions have been made in the calculations of the benefits: (i) that, without the project, road conditions would continue to deteriorate and vehicle operating costs would increase steadily by about 50 percent of present values over 15 years. This assumption is based on studies carried out under similar physical conditions in other countries; (ii) that, with the project, not only would the increase in (i) above be avoided but, additionally, improved routine maintenance on the rehabilitated pavements would reduce  19 - vehicle operating costs by about 20 percent of present values. This assumption is also based on experience in similar conditions elsewhere. Thus for each 100 miles of paved roads the total "benefits" would comprise those arising from the arrest of further deterioration prior to rehabilita- tion and those arising from the improved running surfaces, adequately main- tained, after rehabilitation. 5.05 The costs of the rehabilitation and maintenance operation have likewise been assessed using, as a unit, 100 miles of paved road. The cost of the rehabilitation equipment to be provided under the project has been distributed over the 900 miles of paved roads and aggregated with the estimated local costs, to give a rehabilitation cost, per 100 miles of paved road, of about US$1.0 million. 5.06 The costs of maintenance have been calculated as the incremental cost of the proposed improved maintenance over the existing maintenance costs. On the basis of experience in comparable conditions elsewhere ade- quate maintenance of a 2-lane paved road has been estimated at US$850/mile/ year. In the calculations this figure has been taken to apply to the im- proved maintenance both before and after rehabilitation; this is considered conservative. 5.07 Present traffic has been taken as 200 vpd: this represents the weighted average of traffic on the public roads of the Southern Division. Traffic growth has been taken as 2.5 percent per annum to 1972, and 2 per- cent per annum thereafter; this is in accordance with the projections made in the BTA study. 5.08 The methodology considers the benefits and costs over a period of 15 years. This reflects the continuing benefits to road users arising from the rehabilitated roads even after the expiry of the life of the reha- bilitation equipment. Benefits and costs are summarized in Table 8. 5.09 On the basis of the above, the rehabilitation and maintenance of the public road system in the Southern Division would yield a return on the investment of about 40 percent. A sensitivity analysis on the assumptions made in para. 5.04 shows that: (a) if, without the project, vehicle operating costs increased by 25 percent (instead of by 50 percent) over 15 years, the rate of return would reduce to 27 percent; (b) if, after road rehabilitation, vehicle operating costs decreased by 10 percent (instead of 20 percent) the rate of return would reduce to 33 percent; (c) if (a) and (b) were combined, the rate of return would still be 18 percent.  - 20 - The rehabilitation and meintenance program in the Southern Division is therefore considered justified. B. IEprcvement of Facilities for Major Repair and Overhaul of Highway Equipment 5.10 Government has decided to construct a new workshop in Colombo specifically to service the country's highway equipment (paras. 4.07 and 4.08). The project includes the supply of workshop equipment to the value of about US$780,000 for the proposed facility: this is equivalent to about 6 percent of the present-day replacement value of the country's highway equip- ment. The equipment would be primarily for major overhaul and repair, but would include some equipment (such as radio equipment, recovery vehicles, etc.) which would enable the central workshops to serve the nine divisions of the highway department throughout the country more effectively. 5.11 Spot checks reveal that highway equipment utilization in the field is about 20 percent; this low figure is due partly to delays in repair and overhaul and partly to deficiencies in management, although it is not possi- ble to quantify the effect of each on equipment utilization. The proposed central workshops, equipped under the project, would eliminate one of the causes of equipment "down-time" and allow the proposed reorganization of the highway department and the procedures for costing and renting of equipment to have full effect. The provision of workshop equipment should therefore be viewed as a pre-requisite to the more effective usage of the country's high- way equipment. C. Bridge Replacement 5.12 Many of the main roads in Ceylon are basically those cut out of the jungle and rocks a century or more ago. These roads, and the bridges along them, were built before the advent of motor traffic. While the roads have been gradually improved over the years to cope with motorized traffic, the bridges have remained more or less as originally constructed. Most are single-lane and some are so narrow that even single-lane traffic crosses with difficulty. Almost all have a load restriction, generally of 5 tons. All are unsafe under present-day vehicular traffic. The 1961/2 study by Wilbur Smith and Associates listed about 1,000 structures on important traffic routes "so seriously deficient that major repair or replacement is essential." 5.13 The project includes 19 bridges (Table 5) the replacement of which appears most urgent. The criteria used to select the project bridges were: (i) structural weakness, due to structural inadequacy or deterioration of members, or both; (ii) the effect of load restrictions on present traffic, notably on the passage of equipment for new irrigation and hydroelectric projects;  - 21 - (iii) the diversion costs which would occur if a collapse of the bridge were to take place. The replacement of the bridges selected is justified on technical grounds; the bridges are a danger to life and property even with present load res- trictions, and the proportions of the members, and their condition, are such that it would be impracticable to attempt to strengthen the bridges and enable them to carry present-day traffic with safety. 5.14 An economic evaluation based on risk analysis has been attempted, to support the technical judgement that it would be difficult to justify delaying the replacement of these bridges. In summary, the methodology considers whether the cost of replacing a bridge now is an acceptable price to pay to avoid the risk of losses which would occur if the bridge were to collapse at a later date, without a replacement bridge having been con- structed by that time. The methodology is analogous to that involved in deciding whether to take out an insurance policy for a specific risk at a given premium. Taking "losses" consequent on the collapse of a bridge as only the readily quantifiable diversion costs, the replacement of 12 of the 19 bridges is justified. If the other "losses" consequent on the collapse are put at no more than about US$500,000 for any bridge, the replacement of the remaining bridges is Justified. Although it is dilficult to quantify such other losses -- loss of life and property, the increased maintenance of diversionary routes, etc. -- a figure of US$500,000 for their value in any single bridge collapse appears reasonable. D. Feasibility Studies and Detailed Engineering 5.15 Feasibility studies and detailed engineering included in the project, and costing about US$1.8 million, relate to the improvement of the most heavily trafficked roads in the country and to the capacity of the nation's capital to handle the traffic from these roads effectively. The first four routes chosen for feasibility studies (Chapter 4 E and Annex) are congested and in some cases the pavement structure is deteriorating rapidly. Traffic is currently averaging about 3,000 vehicles per day, peaking, in places, to about 16,000 vehicles per day. The fifth road, on the east coast, has a potential for agricultural production and tourism. 5.16 Much of Ceylon's exports moves over the route selected and they are therefore vital to the econoimy of the country. The feasibility studies and engineering are included in the project as a first stage in ensuring that adequate service to traffic would be maintained on these routes.  - 22 - 6. CONCLUSIONS AND RECOMMENDATIONS 6.o0 The public road system in Ceylon is, in general, adequate in extent for the needs of the country. Maintenance of the system, hovever, is not adequate and pavements are deteriorating. The program for replacing over-age bridges on the main roads is not keeping pace with the natural aging processes. A highway system in good condition is vital to Ceylon since the economy of the country is still largely dependent on the export trade, much of which moves to the ports by road. 6.02 The project places emphasis on road rehabilitation and maintenance, and on bridge replacement. The organization and administration of the PWD, the department currently responsible for the construction and maintenance of the highway system, are not suitable for the effective control of a modern highway system and the project includes expert assistance in areas of orga- nization, planning, costing and other aspects of management. Although these improvements in management and organization would have an immediate impact on the project works, they should also have a beneficial effect on highway operations throughout the country. 6.03 The project is technically sound, and no major difficulties are anticipated during execution. It provides a suitable basis for a Bank Loan of US$4.9 million equivalent and IDA Credit of US$4.9 million equivalent to the Government of Ceylon. October 1, 1968  TABLE 1 CEYLON HIGHWAY PROJECT MOTOR VEHICLE STATISTICS (lIumbers of vehicles in 000's) Y#lar. Cars & Taxis Buses Trucks, Vans, Etc. Tractors Trailers Total 1950 34.2 3.1 11.2 002 0.5 49.2 1958 68.1 5.9 20.1 1.h 1.4 9639 1959 74.7 6,o 23,2 O.8 1,5 106.2 1960 82.6 6.2 24.9 0.8 1.7 116.2 1961 83.9 6.5 26.5 0.9 200 119.8 1962 83.2 6.9 27.2 0.9 240 119.2 1963 82.7 7.2 27.2 1.0 2.2 120.3 1964 82.6 7.7 27.2 1.0 2.2 120.7 1965 82.5 8e1 27.h 1.1 2.3 121.4 1966 82.7 8.3 27.7 1.2 2.h 122.3 1967 83.7 8.8 28.8 1.2 2.5 125.0 Percentage of Growth 1950-1960 l14l.5% 100.0% 122.3% 400.0% 240.0% 137.0% 1960-1967 1.3% 41.9% 15.6% 50.o% 47.0% 7.6% Composition of Total Fleet: Light Vehicles Heavy Vehicles in 1950 61% 39% in 1960 71% 29% in i967 67% 33% Source: Reports of Commissioner of IMIotor Vehicles of Ceylon.  CEYLON HIGHWAY PROJECT APPROXIMATE INCONE & EXPENDITURE, HIGHWAY ACCOUNT (Rs -Illion) Descripticn 62/63 63/64 64/65 65/66 Income Vehicle License Fees 12.93 13.08 12.25 12.01 Heavy Oil Vehicle Tax 11.0 14.4 41.8 10.0 ./ Custom Duties on:: Vehicles 1.45 1.58 2002 8.33 Parts 15.44 i6.00 15.16 19.11 Tires 13.23 17.21 22.39 18.00 Fuel 82.92 70.47 83*39 84.26 TOTAL REVENUE 136.97 132.74 177.01 151.71 EPxenditure New W4orks 4.12 3.49 4.20 4.82 Improvements 11,22 12.07 13.97 12.46 Maintenance 18.07 25.34 22.50 24-75 Administration 6.98 7.15 7,56 8.10 Cost of Traffic Police 1.72 2.00 1.53 1048 Cost of Motor Traffic Department 1.91 1,20 1.12 1.15 TOTAL EXPENDITURE BY PWD h4.02 51.25 50.88 52.76 Yearly Expenditure on roads of Colombo Municipality 2.39 2.86 2096 2,75 46.-41 5411 53.84 55.51 1/ This tax was abolished in mid-1965/66 - - - Source: Public Works Department -Government of Ceylon  CEYLON HIGHWAY PROJECT CLASS_FICATION AND EXTENT OF PUBLIC ROAD SYSTEI Mileage Class Designation Purpose ur ee A National Roads Connecting provincial Asphalt surface treatment 2168 2171 2186 centers, major traffic (exceptionally, plant mix generators, ports and aephaltic concrete). airfields, B Provincial Roads Connecting centers of About 95% of the mileage 2957 2998 2994 district administration has asphalt surface treat- or forming important ment; the remainder either links with National gravel or earth roads, Roads. C) About 90% of the mileage 4115 180 4160 has asphalt surface treat- ) ment; the remainder either ) gravel or earth roads, D ) District Roads Access to villages; About 30% of the mileage 3011 3023 3067 ) penetration roads. has asphalt surface treat- ) ment; about 50% is gravel ) and the remainder is earth ) omads. E) Earth roads. 593 605 608 TOTAL MILES 12,44 12 977 1 L Source: Government of Ceylon - Public Works Department  TABLE Q EYI L 0 N Equipment to be provided under the Project Estimated Cost (Ust Equiv) lt L No. 7Oseratico Princinal itevs of e-Rlp.set to be including 20% spares ard Drovided under item