Sri Lanka - Colombo Urban Transport

 ICRR 10538 Report Number : ICRR10538 ICR Review Operations Evaluation Department 1. Project Data : Date Posted : 03/20/2000 PROJ ID : P010420 OEDID: OEDID : C2495 Appraisal Actual Project Name : Colombo Urban US$M ) Project Costs (US$M) 25.28 18.17 Transport Country : Sri Lanka Loan /Credit (US$M) Loan/ US$M ) 20.00 14.16 Sector, Major Sect .: Urban Transport , US$M ) Cofinancing (US$M) 1.00 0.50 Transportation L/C Number : C2495 FY ) Board Approval (FY) 93 Partners involved : UNDP Closing Date 06/30/1999 06/30/1999 Prepared by : Reviewed by : Group Manager : Group : Antti P. Talvitie Alain Barbu Gregory K. Ingram OEDST 2. Project Objectives and Components a. Objectives (a) Remove transport bottlenecks and traffic congestion in Central Colombo that impose high costs on commercial and industrial establishments; (b) develop long-term transport plans for the Greater Colombo Metropolitan Area and strengthen institutions concerned with urban transport; (c) strengthen the managerial capabilities of the National Transport Commission (NTC) and Provincial Councils (PCs); (d) increase the efficiency of the Sri Lanka Railways (SLR); and (e) promote adequate air quality standards and emission control measures . b. Components (a) A traffic system management program (76% of project cost); (b) Colombo Urban Transport study (6% of cost); (c) Institutional Strengthening (17% of costs) for National Transport Commission and Provincial Councils (bus transport), Sri Lanka Railways, and air quality monitoring and management . c. Comments on Project Cost, Financing and Dates Initially IDA had intended to assist with the implementation of major transport sector reforms in Sri Lanka with a much larger loan. When the reform environment weakened, certain components were repackaged to form a modest project consisting of traffic system management and transport planning in Colombo, and technical assistance to maintain dialogue on transport reforms . Unfortunately, the objectives and the content of the components in the SAR do not reflect the reality of weakened reform climate . The objectives were reinterpreted with more modest outcomes at mid-term review. The project was closed on schedule with US$ 5.9 million canceled because key components --TA for bus regulation/privatization and railway restructuring --were not implemented and because physical and price contingencies did not materialize . 3. Achievement of Relevant Objectives : (a) The removal of certain transport bottlenecks in Central Colombo was fully achieved . The successful program has inspired further traffic management programs by the Colombo Municipal Council . (b) A long-term transport plan with investment programs for the Greater Colombo Metropolitan Area was prepared . However, it is unclear if strengthening of institutions concerned with urban transport took place; the Colombo Urban transport study was completed at the end of the project but the viability of the outcome and the planning processes is uncertain . (c) TA component for institutional strengthening for bus deregulation /privatization, railways restructuring, and for air quality monitoring and management did not achieve its objectives . However, after the mid-term review the TA component to assist the railways was changed from corporatization to developing an open access policy for freight train operations. One access contract was negotiated . The project thus helped introduce a private operation into the railways. Economic evaluation of the TSM component was undertaken . The ex-post ERR for the TSM component was 27 percent vs. 26 percent at appraisal. 4. Significant Outcomes /Impacts : The most significant outcome was the removal of certain bottlenecks and reduction in congestion in Central Colombo. Traffic studies indicate that travel speeds in the affected areas increased and the economic returns anticipated at appraisal were fully realized . The success of the TSM component has given confidence to Colombo Municipal council to design and implement further TSM improvements on its own . The project also built local capacity to plan, design and execute a broad range of TSM actions . 5. Significant Shortcomings (including non -compliance with safeguard policies ): The significant shortcoming of the project was the lack of success in technical assistance to support deregulation and privatization of buses and the railways . This shortcoming can be directly traced to the insufficient institutional analysis carried out during project preparation and appraisal . 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Satisfactory Satisfactory Institutional Dev .: Partial Modest There is no disagreement. The scales for ICR and OED Review of the ICR are different. Sustainability : Likely Likely Bank Performance : Satisfactory Satisfactory Borrower Perf .: Satisfactory Satisfactory Quality of ICR : Satisfactory 7. Lessons of Broad Applicability : The ICR draws two broad lessons . First, that project objectives should be realistic and evolve during identification, preparation and appraisal. During that process sufficient institutional analyses should be undertaken to ensure that the means chosen would be implementable and likely to achieve the desired ends . The railways provides an example. A restructuring of a government service delivery department to achieve efficiency gains failed because it proved impossible. Restructuring a government department has thus, again, shown not to achieve the desired ends for efficiency, accountability, and improved service unless there is competition, that is, deregulation to allow private sector entry to market. Second, that it is difficult to provide effective supervision when there are many implementing agencies unless the projects are a part of the regular work program of established government entities with clear mandates within the project's scope . 'Ad hoc' project management units cannot solve fights over turf and do not contribute to the institutional strengthening of the implementing agencies . 8. Audit Recommended? Yes No Why? The approach to railway modernization in this project was similar to that in another countries in the region. It is different from the approach adopted in the LAC region (for example). An audit of railway projects in the region is recommended to examine if there are commonalties in the resistance patterns to railway restructuring in the countries in the region, and if other approaches to railway restructuring would be more productive . 9. Comments on Quality of ICR : The ICR is of good quality. It realistically and honestly reflects the realities and evaluates the project from identification through implementation candidly . There is a thorough and fair borrower contribution .