- $125 million dollar loan from the World Bank for the new Transport Connectivity and Asset Management Project
Sri Lanka’s government signed an
agreement to get a 125 million dollar loan from the World Bank for the new
Transport Connectivity and Asset Management Project, Friday. The loan for this
project is provided by the International Development Association (IDA), the
World Bank’s grant and low-interest arm, with a maturity of 25 years that
includes a grace period of five years.
“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,” said Amali
Rajapaksa, World Bank Senior Infrastructure Specialist and Task Team Leader.
“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.”
The project also supports a program financed by the Asian Development Bank
(ADB). The RDA is the lead implementing agency.
A dense network makes roads the
preferred mode of transportation in Sri Lanka, carrying 95 percent of passenger
traffic and 98 percent of freight. Building on the lessons from the World
Bank-supported Roads Sector Assistance Project, the new project will help
strengthen the RDA by focusing on the institutional and system changes that can
transform the authority from a provider of infrastructure to a service
provider.
The contracting approach to be
piloted in the project aims to improve construction quality, minimize 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.
“Maximizing quality and
minimizing costs of the island-wide road network will no doubt become a model
project of the Road Development Authority,” said Pswarayi-Riddihough. “Better
and safer roads will benefit all Sri Lankans and contribute to the country’s
prosperity and poverty reduction.”
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