• Annual requirement of Rs. 15 b to maintain entire road network
• Rs. 3 b from ADB funds directed for completion of priority projects: RDA

Maintenance and construction work on the national road network that had been delayed for years due to the economic crisis may recommence in September with the conclusion of the first review of the International Monetary Fund’s (IMF) $ 3 billion bailout, Ministry of Transport and Highways Secretary M.M.P.K. Mayadunne said on Friday (21). 

It is understood that the Road Development Authority (RDA) plans to use $ 10 million from a $ 53 million package pledged by the Asian Development Bank (ADB) to complete several priority road projects that are partially completed or near completion, once the fund materialises.

Mayadunne told The Sunday Morning that only urgent renovations and road repairs were currently being conducted, with routine maintenance of many roadways being halted for years.

According to the Secretary, a total of about Rs. 15 billion is required for the maintenance of the country’s entire road network annually.

“We are releasing funds to the RDA for minor renovations and when there are urgent renovations such as broken roads and bridges, to cover big potholes, etc. The condition of some of these roads are an inconvenience or a risk to the public,” Mayadunne said.

He also noted that the ministry had already made official requests from the Treasury seeking funds for road maintenance and had already taken steps to inform the Cabinet of Ministers.

“We hope to recommence construction and renovation work in September once the IMF review and the restructuring are done, with funds expected to be activated then. Until then, only major and urgent renovations can be done with the available funds,” the Secretary stressed.

RDA duties 

As learnt by The Sunday Morning, mega-scale road development projects are yet to make significant progress despite assurances received from the IMF along with a $ 3 billion bailout, with ongoing discussions with investors to resume construction proving to be unsuccessful.

It is also reliably learnt that the authorities are struggling to source funds in order to maintain existing roads and complete partially built roads which are inconveniencing the public.

The national road network consisted of 12,210.36 km of trunk (A class) and main (B class) roads, 169.13 km of expressways, and about 4,662 bridges (with a span of more than 3 m) as at January 2018. The RDA is responsible for maintenance and development of the national road network, and to plan, design, and construct new highways, bridges, and expressways to augment the existing road network.

Currently, Sri Lanka’s road network is divided into three categories as national roads, provincial roads, and roads governed by local authorities. The RDA also takes over roads that belong to the provincial councils and local authorities and enlists them into the national road network.

The RDA is entrusted with the responsibility of developing and maintaining all classified roads in the country (A and B class roads), totalling up to approximately 11,000 km of roads and the bridges thereon. The responsibility of developing and maintaining C, D, and E class roads, totalling approximately 17,000 km, and the bridges lies with the provincial councils.

Road development in limbo 

Due to the ongoing economic crisis, the maintenance and development of the entire road network have come to a standstill, with many new projects waiting to be commenced and facing major delays. Some are even subjected to suspensions due to lack of interest shown by foreign investors.

A number of road development projects that were commenced under the Government’s iRoad programme and National Road Development Programme have come to a standstill and are now waiting to recommence construction through the funds pledged by the ADB in June.

Last month, the ADB agreed to provide $ 53 million in assistance to continue upgrading Sri Lanka’s rural road network until the debt restructuring takes place, according to Transport, Highways, and Mass Media Minister Dr. Bandula Gunawardena.

In the meantime, the ADB has also approved a $ 350 million special policy-based loan to provide budget support to Sri Lanka for economic stabilisation. The programme is part of a broader package of financial assistance anchored by the International Monetary Fund’s Extended Fund Facility (EFF) for the country, which aims to stabilise the economy and lay the foundation for economic recovery and sustained growth. 

Transport and Highways Minister Dr. Bandula Gunawardena last month assured that all development projects that had been stopped would be restarted once the debt restructuring programme was completed by September.

Among the notable road construction projects that have been delayed are:

• Transport Connectivity and Asset Management Project (TCAMP) funded by the World Bank
• Improvements to Central Expressway Connectivity Roads in Kandy and its suburbs funded by the EXIM Bank of India
• Climate Resilience Improvement Project funded by the World Bank
• Integrated Road Investment Programme (iRoad programme) funded by the ADB
• Priority Roads Project (PRP) 3 – Phase I (A) funded by the China Development Bank (CDB) and Government of Sri Lanka and Phase II funded by CDB
• Southern Road Connectivity Project (SRCP) funded by the ADB
• Rehabilitation/Improvement of Medawachchiya Horowpothana Road under the Northern Road Connectivity Project funded by the ADB  

Most of these projects were to have been completed by 2019 and 2020, as per the RDA.

In addition, the contract package of OFID/3 Lunugala to Bibile (171+800 km to 190+800 km) of the Badulla Chenkaladi Road Improvement Project (BCRIP) awarded to K.D. Ebert & Sons Holding (Pvt) Ltd. has been stopped. The BCRIP was funded by the OPEC Fund for International Development (OFID) for $ 60 million.

Further, a number of contract packages awarded under the iRoad programme funded by the ADB have either been terminated or recommended for termination, according to the available information from the RDA.

Projects halted due to lack of funds

Meanwhile, when contacted by The Sunday Morning, RDA Chairman Chaminda Athaluwage said that the maintenance of some roads had been stopped due to the lack of funds and because funds pledged by the ADB were yet to be received by the RDA.

Moreover, RDA Director General L.V.S. Weerakoon said that while the ADB had pledged $ 53 million, the funds would be received in another seven months, as they would only be disbursed once the debt restructuring process was completed.

He went on to explain that the RDA would initially receive $ 10 million from the Treasury – equivalent to Rs. 3 billion – which the authority would utilise for road maintenance and to complete the partially built projects under National Road Development Programme and the iRoad programme.

“These funds will not be sufficient for the full maintenance and therefore only high-priority roads and projects will be selected at the beginning,” he added. 

As learnt by The Sunday Morning, the Government has failed to secure foreign investors for any of the major highway projects thus far. All mega road development projects including the Central Expressway Project, Ruwanpura Expressway, Port Access Elevated Highway Project, and Elevated Highway Project from New Kelani Bridge to Athurugiriya have currently been put on hold.