USD 125 million WB loan for transport connectivity project
The Government of Sri Lanka (GoSL) has secured a USD 125 million loan from the WB to embark on the new Transport Connectivity and Asset Management Project.
The WB’s International Development Association (IDA) which grants low-interest loans has provided the loan with a maturity of 25 years including a 5-year grace period.
“The Road Development Authority will monitor the contractor and make payment based on the delivery of safe roads free of pot holes, water logging, with shoulders, drainage, and lighting that are well maintained and comfortable for the road users. These types of contracts will benefit the Government, contractors and the general public by saving costs and serving as a model that could be adopted by many other sectors in the future,” World Bank Senior Infrastructure Specialist and Task Team Leader, Amali Rajapaksa said.
With the RDA acting as the lead implementer, the project will also assist a programme financed by the ADB.
Sri Lanka’s dense road network services 95% of the country’s passenger traffic in additionto 98% of its freight.
Having gained insights from the previous WB Roads Sector Assistance Project, this new project will assist in strengthening the RDA by introducing institutional and system changes that will change it from a provider of infrastructure to a service provider.
The contracting approach to be piloted in the project aims to improve construction quality, minimise delays and costs, and address the issue of poor-performing contractors. The project will be implemented on the section between Ja-Ela and Chilaw on National Road A003. The contractor will carry out the design, upgrading, rehabilitation, and maintenance under a long-term contract.¹
“Maximising quality and minimizing costs of the island-wide road network will no doubt become a model project of the Road Development Authority. Better and safer roads will benefit all Sri Lankans and contribute to the country’s prosperity and poverty reduction,” sheadded.
OSL TAKE:
The World Bank loan to assist the RDA will make it more service oriented allowing contractors who deal with it to confidently carry out business with the RDA once it becomes an efficient outfit.
¹ http://www.lankabusinessonline.com/world-banks-gives-usd125mn-loan-for-transport-connectivity-project/
| Article Code : | VBS/AT/03102017/Z_6 |