Provincial Public Expenditure on Roads Western & Uva Province … · 2015-03-18 · Western & Uva...

Provincial Public Expenditure on Roads

Western & Uva Province

Sri Lanka

FINAL REPORT Report Submitted to the World Bank, Colombo Amal S. Kumarage University of Moratuwa Sri Lanka [email protected] 20th May 2009

i

Contents

1 Provincial Profile ................................................................................................................. 1-1

1.1 Geographic and Demographic ....................................................................................... 1-1

1.1.1 Western Province ................................................................................................... 1-1

1.1.2 Uva Province .......................................................................................................... 1-2

1.2 Socio-economic ............................................................................................................. 1-3


1.2.2 Uva Province .......................................................................................................... 1-4

1.3 Road Sector Classification & Institutional Arrangement .............................................. 1-5

1.3.1 National Roads ....................................................................................................... 1-6

1.3.2 Provincial Roads .................................................................................................... 1-6

1.3.3 Local Authority Roads: .......................................................................................... 1-7

1.3.4 Roads maintained by other Institutions: ................................................................ 1-7

1.3.5 Roads not maintained by any Institution: .............................................................. 1-7

1.4 Provincial Road Network .............................................................................................. 1-8


1.4.2 Uva Province ........................................................................................................ 1-12

1.5 Vehicle Fleet & Traffic Levels.................................................................................... 1-16

1.5.1 Western Province ................................................................................................. 1-16

1.5.2 Uva Province ........................................................................................................ 1-17

1.6 Road Transport Regulation and Industry .................................................................... 1-18

1.6.1 Western Province ................................................................................................. 1-18

1.6.2 Uva Province ........................................................................................................ 1-19

2 Organizational Structure of Road Sector Agencies ............................................................. 2-1

2.1 Road Development Authority ....................................................................................... 2-1

2.1.1 Structure and Execution Procedures ...................................................................... 2-1

2.1.2 Capacity ................................................................................................................. 2-6

2.2 Provincial Road Development Authority-Western Province ........................................ 2-6


2.2.2 Capacity ................................................................................................................. 2-8

2.3 Provincial Road Development Department-Uva Province ........................................... 2-8


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2.3.2 Capacity ............................................................................................................... 2-11

2.4 Local Governments ..................................................................................................... 2-12

2.4.1 Structure and Execution Procedures .................................................................... 2-12

2.4.2 Capacity ............................................................................................................... 2-13

3 Sources and Procedures of Funding Roads .......................................................................... 2-1

3.1 National Roads .............................................................................................................. 3-3

3.2 Provincial Roads ........................................................................................................... 3-6

3.2.1 Sources & Procedures of Maintenance Funding .................................................... 3-6

3.2.2 Sources & Procedures of Capital Funding ............................................................. 3-7

3.3 Local Authority Roads ................................................................................................ 3-10

3.3.1 Sources and Procedures of Capital Funding ........................................................ 3-10

3.3.2 Sources and Procedures of Maintenance Funding ............................................... 3-13

4 Capital Expenditure for Roads (2004-2007) ........................................................................ 4-1

4.1 National Roads .............................................................................................................. 4-1


4.1.2 Uva Province .......................................................................................................... 4-3



4.2.2 Uva Province .......................................................................................................... 4-7

4.3 Local Authority Roads .................................................................................................. 4-8


4.3.2 Uva Province ........................................................................................................ 4-12

5 Maintenance Expenditure for Roads (2004-2007) ............................................................... 5-1

5.1 National Roads .............................................................................................................. 5-1


5.1.2 Uva Province .......................................................................................................... 5-2



5.2.2 Uva Province .......................................................................................................... 5-4

5.3 Local Authority Roads .................................................................................................. 5-5


5.3.2 Uva Province .......................................................................................................... 5-9

6 Analysis of Expenditure ....................................................................................................... 6-1

6.1 Trends (2004-2007) ....................................................................................................... 6-1

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6.2 Analysis of Maintenance Expenditure .......................................................................... 6-3

6.2.1 National Roads ....................................................................................................... 6-3


6.2.3 Local Authority Roads ........................................................................................... 6-5

6.3 Analysis of Capital Expenditure ................................................................................... 6-6

6.3.1 National Roads ....................................................................................................... 6-6


6.3.3 Local Authority Road ............................................................................................ 6-7

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List of Tables

Table 1-1: Geographic and Demographic Details of Western Province___________________ 1-2

Table 1-2: Geographic and Demographic Details of Uva Province ______________________ 1-3

Table 1-3: Socio-economic Details of Western Province ______________________________ 1-4

Table 1-4: Socio-economic Details of Uva Province _________________________________ 1-5

Table 1-5: Road Length (kms) 2001 ______________________________________________ 1-6

Table 1-5: Road Network in Western Province _____________________________________ 1-8

Table 1-6: Extent of National Road Network in Western Province ______________________ 1-8

Table 1-7: Extent and Type of Roads in Western Province ___________________________ 1-11

Table 1-8: Extent and Type of Local Authority in Western Province ___________________ 1-12

Table 1-9: Road Network in Uva Province________________________________________ 1-12

Table 1-10: Extent of National Road Network in Uva Province _______________________ 1-13

Table 1-11: Condition of Roads in Uva Province ___________________________________ 1-15

Table 1-12: Extent, Type and Condition of Urban Roads in Uva Province _______________ 1-16

Table 1-13: Vehicle Fleet in Western Province (2007) ______________________________ 1-16

Table 1-14: Vehicle Fleet in Uva Province (2007) __________________________________ 1-17

Table 2-1: Road Sector Agencies in Sri Lanka ______________________________________ 2-1

Table 2-2: Institutional Capacity of Road Development Authority, Western Province _______ 2-8

Table 2-3: Institutional Capacity of Provincial Road Development Department of UP _____ 2-11

Table 3-1: Head of Ministry of Highways & Road Development, 2008 Budget (SLR mn) ___ 3-3

Table 4-1: Financing of Improvement & Widening of National Roads and Bridges _________ 4-1

Table 4-2: Financing of Expressway Development Program-WP _______________________ 4-2

Table 4-3: Financing of National Roads under Highway Development Program-WP _______ 4-2

Table 4-4: STAART funding of National Roads in Western Province ___________________ 4-3

Table 4-5: Financing of the Improvement & Widening of National Roads and Bridges ______ 4-3

Table 4-6: Financing of National Roads under Highway Development Program ___________ 4-4

Table 4-7: Utilization of PSDG-Provincial Roads, Western Province ____________________ 4-5

Table 4-8: Utilization of Other Central Government Capital Funds, Western Province ______ 4-5

Table 4-9: Utilization of Provincial Council Capital Funds, Western Province_____________ 4-6

Table 4-10: Utilization of Tsunami Affected Road Rehabilitation Funds, Western Province __ 4-6

Table 4-11: Utilization of Funds under RSDP, Western Province ______________________ 4-7

Table 4-12: Utilization of PSDG-Provincial Road, Uva Province _______________________ 4-8

Table 4-13: Utilization of PSDG-Local Government Roads, Western Province ____________ 4-9

Table 4-14: Maga Neguma Investment for Rural Roads in Western Province ____________ 4-10

Table 4-15: Financing under Maga Neguma for the Rural Road in Gampaha District, 2007 _ 4-11

Table 4-16: Gama Neguma Investment for Western Province, 2008 ____________________ 4-12

Table 4-17: Utilization of PSDG-Local Government Roads, Uva Province ______________ 4-12

Table 4-18: PSDG Investment in Local Governments, Uva Province ___________________ 4-13

Table 4-19: Local Road Financing through DCB for Badulla District, 2008 ______________ 4-14

Table 4-20: Local Road Financing through DCB for Badulla District, 2008 ______________ 4-14

Table 4-21: Local Road Financing through DCB for Uva Province, 2008 _______________ 4-15

Table 4-22: Maga Neguma Investment for Rural Roads in Uva Province ________________ 4-16

Table 4-23: Financing under Maga Neguma for the Rural Road in Badulla District, 2007 __ 4-17

Table 4-24: Gama Neguma Investment for Uva Province, 2008 _______________________ 4-18

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Table 4-25: Investment under RSAP for Pilot Projects in Uva Province, 2008 ____________ 4-18

Table 4-26: Capital Expenditure on National Roads vs GDP in WP ____________________ 4-19

Table 4-27: Capital Expenditure on Provincial Roads vs GDP in WP ___________________ 4-19

Table 4-28: Capital Expenditure on National Roads vs GDP in UP ____________________ 4-20

Table 4-29: Capital Expenditure on Provincial Roads vs GDP in UP ___________________ 4-20

Table 5-1: Periodic and Routine Maintenance of National Roads (RMTF), WP ____________ 5-1

Table 5-2: Maintenance of roads rehabilitated under ADB assistance ____________________ 5-1

Table 5-3: Maintenance of Bridges on National Roads (RMTF), WP ____________________ 5-2

Table 5-4: Periodic and Routine Maintenance of National Roads (RMTF), UP ____________ 5-2

Table 5-5: Maintenance of Bridges on National Roads (RMTF), UP ____________________ 5-2

Table 5-6: Utilization of Road Sector Maintenance Funds, Western Province _____________ 5-3

Table 5-7: Recurrent Expenditure of PRDD, Uva Province, 2007 _______________________ 5-4

Table 5-8: Utilization of Road Sector Maintenance Funds, Uva Province_________________ 5-4

Table 5-9: Type and Condition of Roads in CMC ___________________________________ 5-5

Table 5-10: Colombo Municipal Council Road Sector allocation _______________________ 5-6

Table 5-11 : Road Maintenance Cost, Dehiwala-Mt. Lavinia Municipal Council ___________ 5-7

Table 5-12: Road Maintenance Cost, Horana Urban Council __________________________ 5-7

Table 5-14: Road Maintenance Cost, Minuwangoda Urban Council _____________________ 5-8

Table 5-15: Road Maintenance Cost, Bulathsinghala Pradeshiya Sabha __________________ 5-8

Table 5-16: Head of Roads of Badulla Municipal Council Budget ______________________ 5-9

Table 5-17: Road Maintenance Cost, Haputale Urban Council ________________________ 5-10

Table 5-18: Road Maintenance Cost, Bandarawela Urban Council _____________________ 5-10

Table 5-19: Road Maintenance Cost, Passara Pradeshiya Sabha _______________________ 5-10

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List of Figures

Figure 1-1: National Road Network in Western Province ____________________________ 1-10

Figure 1-2: Provincial Road Network Condition-Western Province, 2007 _______________ 1-11

Figure 1-3: National Road Network in Uva Province _______________________________ 1-14

Figure 2-1: Organization chart of the RDA ________________________________________ 2-3

Figure 2-2: Organization chart of PRDA –Western Province __________________________ 2-7

Figure 2-3: Organizational Chart- Uva Provincial Road Development Department ________ 2-10

Figure 2-4: Organization Chart of Badulla Municipal Council ________________________ 2-15

Figure 2-5: Organization Chart of Colombo Municipal Council _______________________ 2-16

Figure 2-6: Organization Chart of Minuwangoda Urban Council ______________________ 2-17

Figure 2-7: Organization Chart of Divulapitiya Pradeshiya Sabha _____________________ 2-18

Figure 3-1: Procedure of Provincial Road Financing, 2008 ____________________________ 3-9

1-1

1 Provincial Profile

1.1 Geographic and Demographic

1.1.1 Western Province

The Western Province (WP), along the western seaboard of Sri Lanka is bordered by the

Sothern, North Western and Sabaragamuwa provinces. It has three administrative districts i.e.

Colombo, Gampaha and Kalutara and 33 divisional secretariats. Out of Sri Lankan’s urban

population, 54.6% reside in Colombo district, while Gampaha and Kalutara accounts for 14.6%

and 10.6% urban population. Colombo district is considered to be the most urbanized district in

Sri Lanka, while the other two districts carry higher percentage of rural population. Colombo city

is considered to be the centre of the economy and hence the busiest city in Sri Lanka.

Government offices, private offices, factories, hospitals, hotels, schools and the harbor located

within the Colombo city generates higher travel demand towards the city core.

Since the province is located in the low-country wet

zone, it experiences between 1,500 to 2,000 mm of

annual rainfall, most of which can be expected to occur

during the north-west monsoon period from May to

September. Generally a flat terrain prevails across most

parts of the province. The province is considered an

agricultural based rural area though it resides higher

urban population.

The Western Province extends over 3,684 sq km

(5.62% of the land surface of Sri Lanka) with a

population of 5,381,197 (28.67% of the country) thus

becoming the smallest in terms of the area and the

highest in terms of the population leading to the highest

population density of 1460.7 persons/sq km among Sri

Lanka's nine provinces. Provincial ethnic composition

is made up of 84.2% Sinhalese, 7.2% Tamils, 7.0% Moor and others. Its religious profile makes

it predominantly 73.3% Buddhist, 5.1% Hindu with 8.2% Islam and others. Table 1.1

summarizes the geographic and demographic profile of the province.

1-2

Table 1-1: Geographic and Demographic Details of Western Province1

Feature Western Island-wide

or % of Island

Area (sq km) 3,684 65,610

Road Density(km/sq km) 4.01 1.5

Population,2001 (mn) 5.381 18.750

Population Density,2001 (inhab./sq km) 1460.7 296

Ethnic

Composition, 2001

(%)

Sinhalese 84.2 82.0

Tamils 7.2 9.4

Moors 7.0 7.9

Others 1.6 0.7

Religious

Composition, 2001

(%)

Buddhists 73.3 76.7

Hindu 5.1 7.8

Islam 8.2 8.5

Other 3.4 7.0

1.1.2 Uva Province

The Uva Province (UP), one of the country’s land-locked provinces is bordered by the Eastern,

Southern, Sabaragamuwa and Central provinces. The province is divided into two districts and

26 Divisional Secretariat Divisions for administrative purposes. The two districts namely Badulla

and Monaragala have generally different geographical

features especially with respect to terrain and

livelihood. Rolling or mountainous terrain conditions

are visible in most parts of Badulla district while flat

or rolling terrain prevails within Monaragala District.

Covering the south eastern parts of the central

mountains and surrounding plains, the Uva province

offer a variety of diverse attractions to a visitor.

Dunhinda waterfalls, Diyaluma Falls, Rawana Falls,

the Yala National Park (lying partly in the Southern

and Eastern Provinces) and Gal Oya National Park

(lying partly in the Eastern Province). Two of the

country’s major waterways namely the Mahaweli and

Menik Ganga (rivers) and the huge Senanayake

Samudraya and Maduru Oya Reservoirs both used for

agricultural irrigation are also located within the

province.

1 Source: Department of Census & Statistics, 2001 census

1-3

Two different weather conditions are observable in the two districts. Monaragala district is in the

dry zone and Badulla district in the wet zone.

The Uva Province extends over 8,488 sq km (12.92% of the land surface of Sri Lanka) with a

population of 1,177,358 (6.3% of the country) thus becoming the 4th largest in terms of the area

but the 2nd lowest in terms of the population among Sri Lanka's nine provinces. The province

has a comparatively lower population density at 138.7 persons/sq km. Given its central and land

locked nature, its dependence on land transport is extremely high and road density is about 0.9

km/sq km. Provincial ethnic composition is made up of 79.9% Sinhalese, 15.8% Tamils, 4.0%

Moor and others. Its religious profile makes it predominantly 79.6% Buddhist, 14.4% Hindu

with 4.2% Islam and others. Table 1-2 summarizes the geographic and demographic profile of

the province.

Table 1-2: Geographic and Demographic Details of Uva Province2

Feature Uva Island-wide

or % of Island

Area (sq km) 8,488 65,610

Road Density(km/sq km) 0.89 1.5

Population,2001 (mn) 1.177 18.750

Population Density,2001 (inhab./sq km) 138 296

Ethnic

Composition, 2001

(%)

Sinhalese 79.9 82.0

Tamils 15.8 9.4

Moors 4.0 7.9

Others 0.3 0.7

Religious

Composition, 2001

(%)

Buddhists 79.6 76.7

Hindu 14.4 7.8

Islam 4.2 8.5

Other 1.8 7.0

1.2 Socio-economic


The Western Province is considered to be the most developed province in the country.

Comparisons of provincial and national level basic socio economic parameters in Table 1-3

clearly illustrate the issue. In this respect the lowest poverty head count index, highest per capita

incomes and lower unemployment rate should be noted as being among the relevant indicators.

2 Source: Department of Census & Statistics, 2001 census

1-4

Table 1-3: Socio-economic Details of Western Province3

Feature Western Island-wide

or % of Island

GDP (Rs Mn), 2007 1,732,279 48.4% (% national)

GDP Growth % 17.7 21.7

Per capita income (SLR/year) ,2007 303,536 178,783

Poverty Head Count Index,2007 8.2% 15.2%

Unemployment Rate, 2006 8.1% 8.9%

Primary Industries Manufacturing,

Agriculture

(Rubber, rice and

food crops),

Livestock

Manufacturing,

Plantation( Tea, rubber,

coconut), tourism

Western province records the Lowest Poverty Head Count Index in Sri Lanka (statistics for

Northern Province is not available). Even though it is reported as 8.2 %, which is approximately

half of the national average of 15.2%, it still translates to around 441,000 people falling below

the poverty line which in fact exceeds the actual number of poor in Uva province even though

Uva has a much higher index. Western provincial share of the national GDP is around 48.4% and

has recorded the highest per capita income of Rs 303,536 (approx USD 2,500) in 2007. But the

rate of unemployment and hence the unemployed population is still higher when compared to

other provinces. This indicates that though Western province has reached a certain level of

economic development, it is still to be developed in social aspects.

1.2.2 Uva Province

The Uva Province is one of the least developed provinces in the country. This is well illustrated

in Table 1-4 where some of the basic socio economic parameters are given and compared to

national levels. In this respect the higher poverty head count index, lower per capita incomes and

higher unemployment rate should be noted as being among the relevant indicators.

3 Source: Central Bank, Sri Lanka

1-5

Table 1-4: Socio-economic Details of Uva Province4

Feature Uva Island-wide

or % of Island

GDP (Rs Mn), 2007 160,747 4.5% (% national)

GDP Growth % 28.2 21.7

Per capita income (SLR/year) ,2007 126,076 178,783

Poverty Head Count Index,2007 27% 15.2%

Unemployment Rate, 2006 8.1% 8.9%

Primary Industries Agriculture (Tea,

forests, rice and

food crops),

Livestock

Manufacturing,

Plantation( Tea, rubber,

coconut), tourism

Uva province records the highest Poverty Head Count Index in Sri Lanka (statistics for Northern

Province is not available). It is reported as 27.0% and even though lower than previous years it is

still approximately double the national average of 15.2%, which translates to around 346,000

people still below the poverty line. Uva provincial share of the national GDP is around 4.5% and

has recorded a per capita income of Rs 126,076 (approx USD 1,200) in 2007. Uva Province has

reached the 4th position with respect to per capita income which is an improvement from

previous years. It also has however recorded the 2nd highest GDP growth rate in Sri Lanka.GDP.5

This shows that the province is in the upward trend of economic development though it is

presently below average.

1.3 Road Sector Classification & Institutional Arrangement

The road network in Sri Lanka is made up of several types of roads classified according to their

functionality and management. There is no formally accepted classification system for Sri Lanka.

The following classification and notation will be followed in this report:

• National Roads

• Provincial Roads

• Urban Roads

• Rural Roads

This classification is based on the different tiers of government in Sri Lanka i.e; national,

provincial and local. The local governments are further identified as urban and rural local

authorities.

Table 1-5 gives the inventoried road length in the Road Sector Masterplan. However, there are

quite a significant number of rural roads which have not been inventoried. Moreover, this does

4 Source: Central Bank, Sri Lanka 5 Central Bank of Sri Lanka, Provincial GDP-2007

1-6

not include all the roads managed by other government institutes such as Irrigation Department,

Wild Life Department, Forest Department and so on, which are also used as thoroughfares, but

are not listed under a road agency. Moreover these lengths have changed since 2001. For

example, the road length given for WP as 14,783 km is presently reported as 15,409 km, while in

UP, the road length of 7,433 km has changed to 7,339 possibly from remeasuring.

Table 1-5: Road Length (kms) 20016

1.3.1 National Roads

These are roads that are presently managed by the Road Development Authority (RDA) and

constitute the roads classified as A & B Class. Such roads are generally those that are considered

as part of the national road network or those that provide access to places of national importance

etc. Roads that belong to the provincial authorities as well as agencies such as the Mahaweli

Authority, Municipal Councils are periodically gazetted and added to the national network. The

national roads in the Uva Province are maintained by the RDA through its 5 Executive

Engineering divisions namely the Badulla, Bandarawela, Mahiyangana, Monaragala and Bibile

divisions.

1.3.2 Provincial Roads

These are roads that were classified as C, D and E class when the Provincial Councils were

established in 1989 under the 13th amendment to the Constitution. Usually, these are roads on

which a bus service operates and where such road is situated entirely within the province. These

roads are managed by the Provincial Council which has a statutory body referred to as the

Provincial Road Development Department (PRDD) through which it manages the road network.

At present, the PRDD is functioning through its 6 divisional offices located in Badulla,

Diyatalawa, Welimada, Mahiyangana, Monaragala and Wellawaya.

6 Source: Road Sector Master Plan, ADB, 2002

Province National Roads Provincial Roads Local Roads Total

Western 1,543 1,945 11,295 14,783 Southern 1,321 1,643 8,201 11,165

Sabaragamuwa 1,103 1,130 7,254 9,487

North Western 1,275 2,118 13,384 16,777

Central 1,707 2,433 8,283 12,423

North Central 1,160 1,771 5,485 8,416

Uva 1,147 1,839 4,447 7,433

North East 2,415 2,653 6,310 11,378

Total 11,671 15,532 64,659 91,862

1-7

1.3.3 Local Authority Roads:

These roads are classified under two categories of urban and local roads depending on the type of

local authority to which they belong.

Urban Roads: Roads that are not classified as national roads or provincial roads but are within

Municipal or Urban Council areas (MCs and UCs respectively) are identified in this report as

urban roads. At present there are only three Urban or Municipal councils in Uva, namely Badulla

MC, Haputale UC and Bandarawela UC.

Rural Roads: These are roads in rural areas maintained by the respective local authorities called

Pradeshiya Sabhas (Village Councils earlier). There are 22 Pradeshiya Sabhas in the province

namely Hali-ela, Mahiyangana, Meegahakivula, Passara, Sornathota, Bibile, Medagama, Buttala,

Monaragala, Wellawaya, Kandeketiya, Rideemaliadda, Madulla, Badalkumbura, Minipe,

Badulla, Haputale, Uva-Paranagama, Welimada, Ella, Haldummulla and Bandarawela. Unlike

the other roads described earlier, most of these roads are earth or gravel roads.

1.3.4 Roads maintained by other Institutions:

There are yet other roads which do not belong to or are maintained by any of the agencies which

are specifically charged with road maintenance such as those referred to above. These agencies

include the Mahaweli Development Authority, Irrigation Department, Forest Department, Wild

Life Conservation Department, Agrarian Services Department and Plantation Companies. The

length of these roads has also never been properly assessed, but is estimated at 4,500 km island

wide by the Road Sector Master Plan. Though these roads have not been gazetted as public

roads, public funds are used for their maintenance as these roads in most cases are used as public

thoroughfares and accessed by the rural population.

1.3.5 Roads not maintained by any Institution:

There is also an unspecified length of road in each province, which has not been included in the

road inventory of any government institution. These are usually roads serving a collection of

houses or very small villages, which have usually been constructed through self help schemes

(Shramadana) or funded by the decentralized votes of parliamentarians or provincial councilors,

but have not been officially handed over to the respective Pradeshiya Sabha. The extent of such

road length is not known.

1-8

1.4 Provincial Road Network

Road Network details are maintained by the agencies that are responsible for managing

respective road network hierarchy. But details of road type and road length, and condition of

roads at local government level, (i.e. of class E and unclassified roads) especially in the Uva

Province do not exist in general. Even when they do, they cannot be accepted as being accurate.

There is however now an initiative under a program to be implemented by the Provincial

Commissioner of Local Government in Uva to develop a road inventory for each local

government institution with the assistance of the World Bank. Most of Western Province Local

Governments maintains record of their network though accuracy of condition data is suspect.

Section 1.4.1 and 1.4.2 illustrate the extent, type and condition of each provincial road categories

in both these provinces separately.


The total road network in WP is comparatively larger when compared to other provinces. Table

1-5 summarizes certain important details pertaining to the road network in the Western Province.

Table 1-6: Road Network in Western Province

Feature

National

Roads

Provincial

Roads

Local

Authority

Roads

Total

Roads

Length (km)

Western 1,511 1,975 11,923 15,409

Island wide 11,671 15,532 64,659 91,862

% 12.9 12.7 18.4 16.8

Road Density(km/km2) Western 0.41 0.54 3.24 4.18

Island wide 0.18 0.24 0.99 1.40

Road Length per Capita

(km/1000pop)

Western 0.28 0.37 2.22 2.86

Island wide 0.65 0.86 3.60 5.11

1.4.1.1 National Road

The length of National Roads maintained by the RDA in the Western Province is estimated as

1,510.8 km of which 254.59 km are A Class roads and 1256.2 km of B Class Roads. Table 1-6

and Figure 1-1 provide the details of the National Road Network in Western Province. Some

roads at the top of the hierarchy of B class roads in terms of traffic levels have now been called

AB Class in a new classification adopted by the RDA, which also refers to A class roads as AA

Class.

Table 1-7: Extent of National Road Network in Western Province

Road Division Total

1-9

Class

Colo

mb

o

Avissa

wella

Gam

pah

a

Neg

om

bo

Nitta

mb

uw

a

Kalu

tara

Agala

watta

AA 19.58 51.49 41.05 41.83 22.05 55.91 22.68 254.59

AB 29.37 9.83 0.69 3.99 19.31 1.9 0 65.09

B 127.87 127.68 205.32 200.37 189.11 62.43 278.33 1191.11

Total 176.82 189 247.06 246.19 230.47 120.24 301.01 1510.79

Of the National Roads, around 73% of the length of roads in the province is less than standard 2

lanes, while 6% is 4-lane width or wider. The balance 21% of the road length falls within 2 to 4

lanes. The condition of these roads as measured by the International Road Roughness Index (IRI)

shows that less than 2% of the length of the network is in very good condition with an IRI of 2 or

less and 92% of the length is in poor condition with an IRI of 4 or more.7

7 Source: TransPlan Database, University of Moratuwa

1-10

Figure 1-1: National Road Network in Western Province

1-11

1.4.1.2 Provincial Roads

Length of the provincial road network in Western Province is 1,975 km, of which there are 227.8

km of recently surfaced Double Bitumen Surface Treated DBST roads.

Table 1-8: Extent and Type of Roads in Western Province8

Type of Road

Total Kms

Metalled and Tarred (single Lane 2 to 4 m) – “D” 1,126

Metalled and Tarred (intermediate lane 4 to 6 m) “C” 849

Total 1,975

As shown in Figure 1-2, at present around 31% of the provincial road network is termed to be in

poor condition. Only 15% of the network is in very good condition. However in general the

network is considered to be comparatively in satisfactory motorable condition.

Figure 1-2: Provincial Road Network Condition-Western Province, 2007

8 Source: Planning Division of Uva Provincial Council,2008

1-12

1.4.1.3 Local Authority Roads

It is estimated that there are 11,923 km administered by the different local governments (MC,

UCs and PS) in Western Province9. But the local authorities especially the Pradeshiya Sabhas, do

not maintain records of the condition of their road network. Hence an assessment of the

condition of the roads is not possible. Visual observation indicates that other than the larger

municipal councils such as Colombo all other municipal councils as well as urban councils are

not maintaining their roads on a regular basis. It is most likely that over 50% of the road length

may be considered to be in poor condition. In the case of Pradeshiya Sabhas this may be even

more with over 2/3rd or 3/4th of the road lengths being considered to be in poor condition.

Table 1-9: Extent and Type of Local Authority in Western Province10

Road Category Type Total

Mettaled/Tar Gravel

Municipal Council 1,407.57 286.00 1,693.57

Urban Council 852.87 289.20 1,142.07

Pradeshiya Sabha 2,909.97 6,177.34 9,086.90

Total 5,170.41 6,752.54 11,922.54

Table 1.8 shows the length of road under each level of local authority in the WP. It is seen that

most roads are managed by PSs and that over 2/3rd of such roads are gravel roads. Since these

statistics have been compiled, is is estimated that between 5-10% of these gravel roads now have

been concreted under the governments Gama Neguma village upliftment program.

1.4.2 Uva Province

The total road network in UP is comparatively smaller compared to other provinces of the

country. Table 1-9 summarize important details of the road network in the Uva Province.

Table 1-10: Road Network in Uva Province

Feature

National

Roads

Provincial

Roads

Local

Authority

Roads

Total

Roads

Length(km)

Uva 1,151 1,741 4,447 7,339

Island wide 11,671 15,532 64,659 91,862

% 9.9 11.2 6.9 8.0

Road Density(km/km2) Uva 0.14 0.21 0.53 0.88

Island wide 0.18 0.24 0.99 1.40

Road Length per Capita

(km/1000pop)

Uva 0.98 1.49 3.80 6.28

Island wide 0.65 0.86 3.60 5.11

9 Commissioner of Local Government, Western Province 10 Source: Commissioner of Local Government, Western Province,2005

1-13

It can be seen that Uva Province compared to the national statistics, has a lower road density

when measured in terms of road length per sq km while it has a higher road density when

measured in terms of road length per capita.

1.4.2.1 National Roads

The length of National Roads maintained by the RDA in the Uva Province is estimated as 1,151

km of which 443.57 km are AA Class roads and 25.31 km AB Class roads and 682.58 km B

Class Roads. Table 1-10 and Figure 1-3 provide the details of the National Road Network in Uva

Province.

Table 1-11: Extent of National Road Network in Uva Province

Road Class Division

Total Bandarawela Badulla Mahiyangana Monaragala Bibile

AA 154.81 16.24 69.38 102.1 101.04 443.57

AB 0.36 NA 23.8 1.15 NA 25.31

B 206.23 138.33 77.29 104.29 156.44 682.58

Total 361.4 154.57 170.47 207.54 257.48 1151.46

Of the National Roads, around 192 km of roads in the province are two lane or below, while 277

kms are 4 lane or above. The condition of these roads as measured by the International Road

Roughness Index (IRI) shows that 21 km of the network is of good standard with an IRI of 3 or

less and 1,153 km is in poor condition with an IRI of 4 or more.11

11 Source: TransPlan Database, University of Moratuwa

1-14

Figure 1-3: National Road Network in Uva Province

1-15

1.4.2.2 Provincial Roads

The provincially administered road network in UP is 1,741 km, of which there are 192 km of

recently surfaced DBST roads. The rest is made of metalled and tarred roads of which there are

179.8 km of 2 to 4 meter wide single lane roads and 1,369.2 km of metalled intermediate lane

roads that are 4 to 6 meter wide. Additionally the PC also intends to gazette another 50 km of

rural roads as provincial roads in the near future.

Unlike for national roads, there are no roughness measurements available for most provincial

roads. Only approximate estimates based on visual observations made by the engineers are

available for provincial roads. As shown in Table 1-11, at present, around 45% of the provincial

road network is termed to be in poor condition, which is higher than in WP. The only roads

which are still in good condition are the 192 km of DBST surfaced roads completed over the last

5 years under the ADB funded Road Sector Development Project (RSDP). Of the rest, only

around 175 km are termed as being in good condition.

Table 1-12: Condition of Roads in Uva Province12

Type of Road

Total Kms

% of Length by Present

Road Condition

Good Fair Poor

Metalled and Tarred (single Lane 2 to 4 m) – “D” 179.76 20% 30% 50%

Metalled and Tarred (intermediate lane 4 to 6 m) “C” 1,369.20 10% 30% 40%

DBST Surface (Single lane 4 to 6m) 192.00 100% - -

The ADB funded RSDP project also included the construction of 7 new bridges, 11 bridges that

were re-decked and the repair of 50 bridge & causeways. Thus only around 362 km or

approximately 20% of the road network is in maintainable standard or within the design life

period. At present there are no on-going projects on provincial roads for the re-construction or

major improvements to provincial roads within the province.

1.4.2.3 Local Authority Roads

It is estimated that there are 4,447 km administered by the different local governments (MC, UCs

and PS) in Uva Province13. As mentioned earlier, local authorities in rural areas, specifically the

PSs at present do not maintain records of the details of their respective road network. However in

the case of the urban road network the respective urban local authorities do keep records since

their networks are located within a relatively small geographic area.

12 Source: Planning Division of Uva Provincial Council,2008 13 Road Sector Master Plan, RDA, 2005

1-16

Table 1-13: Extent, Type and Condition of Urban Roads in Uva Province14

Local

Government

Length by type (km) % in

good

condition

Mettalled

& Tarred

Concrete Gravel

/Earth

Stairs Foot

paths

Total

Badulla MC 47.54 N/A 37.53 N/A 0.57 83.71 75%

Bandarawela UC 15.60 1.00 4.00 2.85 3.00 26.45 85%

Haputale UC 5.00 0.96 0.60 0.30 N/A 6.86 60%

Total 68.14 1.96 42.13 3.15 3.57 117.02

Since UP is predominantly a rural province, only around 117 km of roads maintained by urban

local authorities. The type of roads under each of the councils is given in Table 1-12. There are

no details or condition reports of the rural local authorities. Visual observations reveal that at

least 3/4th of such road length is gravel and that overall 2/3rd of the road lengths appear to be in

poor condition.

1.5 Vehicle Fleet & Traffic Levels


WP has the highest number of registered motor vehicles in Sri Lanka. Of a total estimated

operational fleet of 2.2 million vehicles in 2007, it is noted that 967,097 or around 43.5 % of

vehicles are registered in WP. It is noted that approximately half of the fleet of vehicles in WP

are two-wheelers and three-wheelers. The motor cycle is becoming a popular mode of transport

due to its low cost and maneuverability even on roads with poor surface condition.

Table 1-14: Vehicle Fleet in Western Province (2007)15

Vehicle Type Fleet

WP % of National Fleet

Omnibuses 7,124 45.0

Private Coaches 12,096 48.2

Dual Purpose Vehicles 106,571 58.9

Private Cars 182,421 72.4

Land Vehicles 16,793 18.2

Goods Transport Vehicles 83,891 46.1

Motor Cycles 414,770 36.8

Three-wheelers 141,559 41.4

14 Source: Respective Municipal and Urban Councils 15 Source: Central Bank of Sri Lanka,2007

1-17

Others 1,872 32.6

Total 967,097 43.5

The truck roads of the national network such as A1, A2, A3, A4 close to the boundary of the

Colombo city carries traffic volumes of between 60,000 to 80,000 vehicles per day16. But the

volumes of traffic on these same roads are in the range of 15,000 to 20, 000 at the provincial

boundary. On provincial roads the traffic volumes are generally in the range 3,000 to 10,000 vpd

and for local authority roads it was found to be in most instances between 100 to 1,000 vpd. The

typical vehicle composition on national roads within the province is that around 65-70 % of

vehicles are four wheeled or larger. The typical average speeds on the national roads are between

15 km/hr within the city, to 40 km/hr away from the city while that of the provincial network are

in the range of 15 to 40 km/hr depending on the terrain and condition of road.

1.5.2 Uva Province

UP has the 2nd lowest number of registered motor vehicles in Sri Lanka. Of a total estimated

operational fleet of 2.2 million vehicles in 2007, it is noted that only 74,376 or around 3.3 % of

vehicles are registered in UP even though 6.5% of the population live here. Of these also only

around 24,000 vehicles are four wheeled vehicles or larger.

Table 1-15: Vehicle Fleet in Uva Province (2007)17

Vehicle Type

Fleet

UP % of

National

Fleet

Omnibuses 553 3.5

Private Coaches 1,014 4.0

Dual Purpose Vehicles 4,952 2.7

Private Cars 3,830 1.5

Land Vehicles 6,395 6.9

Goods Transport Vehicles 7,873 4.3

Motor Cycles 36,304 3.2

Three-wheelers 13,299 3.9

Others 156 2.7

Total 74,376 3.3

The roads in the national network within the UP carries traffic volumes of between 1,500 to

2,500 vehicles per day18. On provincial roads the traffic volumes are generally in the range of 16 TransPlan Traffic Estimation Model, University of Moratuwa, 2008 17 Source: Central Bank of Sri Lanka,2007

1-18

500 to 1,000 vpd and for local authority roads it was found to be in most instances between 100

to 200 vpd. The typical vehicle composition on national roads is that around 60 % of vehicles are

four wheeled or larger. The typical average speeds on the national roads are between 15 to 40

km/hr while that of the provincial network are in the range of 15 to 30 km/hr mostly depending

on terrain and condition of road.

1.6 Road Transport Regulation and Industry

The Provincial Councils were established in 1989 under the 13th Amendment to the Constitution.

Subsequent to the Council becoming operative, each province has set up two different agencies

to manage functions relating to road transport. In the both Provinces a Road Passenger Transport

Authority (RPTA) has been set up by statute to regularize the provision of omnibus transport

together with a Department of Motor Traffic to collect revenue licenses of the motor vehicles

registered within the province.

Trucking is deregulated and there are independent small scale operators most of whom have

other businesses. They usually provide different capacity vehicles ranging from 2 tonnes to multi

axle container flat beds. Rates are competitive.

The issue of annual revenue licenses for motor vehicles registered to addresses within the

province and the collection of such revenues is carried out by the Provincial Motor Traffic

Department. The department does not have legal authority to perform new registrations or

transfer of ownership of vehicles which is handled by the Commissioner of Motor Vehicles

under the Central Government.


The RPTA of the Western Province is authorized to issue route permits for intra-provincial buses

and for regularizing bus transport within the province. Currently there are around 6.540 private

omnibuses operating with permits issued by the RPTA of the WP. In addition there are around

1,413 state owned buses belonging to the Sri Lanka Transport Board, which comes under the

Ministry of Transport of the Central Government which are not issued route permits but are also

operating within the province. Besides this there are another 865 buses issued with permits by

National Transport Commission for inter-provincial (long-distance) services starting from within

the province.

18 TransPlan Traffic Estimation Model, University of Moratuwa, 2008

1-19

The National Transport Commission provides financial reimbursements to 190 dedicated school

bus trips within the WP under the ‘Sisu Saeriya’ program. There are also a further 67 dedicated

rural bus services under the ‘Gami Saeriya’ program. Both programs are delivered through

certification of delivery and attainment of standards monitored by a local user committee. These

provide important connections between rural and town centres within a province. These services

are expected to be significantly increased this year.

Other vehicles operating within the province for fee or reward such as school vans, office vans,

and three wheelers or taxis are regulated in the WP, by Act No 3 of 2006 and by Gazette No

1518 of 2007. Three Wheelers of which there are nearly 141,559 vehicles registered within the

province, provides passenger services within town areas and in rural areas, especially where

regular public transport does not operate or after such services cease to operate in the evenings.

These are mostly unregulated except for insurance and annual licensing as motor vehicles.

The railway network also covers much of the WP. Similar to the road network which has nodal

centre in Colombo, all railway lines radiate from Colombo, this covering over 200 km within the

province. The railway carries around 210,000 passengers across the city boundary every day

which translates to around 13% of all passenger movements. Its contribution to freight transport

is much less at around 3%.

1.6.2 Uva Province

The UP RPTA has issued around 1,086 route permits for private omnibuses to operate within the

province. Sri Lanka Transport Board also has deployed approximately 584 buses for intra-

provincial passenger transportation purposes. In addition there are another 173 buses issued with

permits by National Transport Commission for inter-provincial (long-distance) services starting

from within the province.

The National Transport Commission provides financial reimbursements to 30 dedicated school

bus trips and 57 dedicated rural bus services in UP under the ‘Sisu Saeriya’ and Gami Saeriya

programs. Operational and supervision aspects of these services are same as in the Western

Province. Especially the Gami Saeriya service is expected to play a significant role in provinces

such as Uva in which higher percentage of rural and agricultural based population resides.

Other vehicles operating within the province for fee or reward such as school vans, office vans,

and three wheelers or taxis are regulated in the UP, by Act No 3 of 2006 and by Gazette No 1518

of 2007. Three Wheelers of which there are nearly 13,000 vehicles registered within the

province, provide passengers services within town areas and in rural areas, especially where

regular public transport does not operate or after such services cease to operate in the evenings.

These are mostly unregulated except for insurance and annual licensing as motor vehicles.

1-20

In the UP the railway operates only within the Badulla district. Railway is not a popular travel

medium among local passengers due to the difficulty of access and its small extent within the

province. But it is popular among travelers coming from Colombo since it passes scenic

surroundings along its journey. The railway currently operates four passenger trains between

Badulla and Colombo and two goods trains. In addition there are a few local passenger cum

goods trains operating.

2-1

2 Organizational Structure of Road Sector Agencies

The aim of this chapter is to discuss organizational structures & capacity issues related to the

agencies that are responsible for each category of roads within the province which were

introduced in Chapter 1. The following table provides a summary.

Table 2-1: Road Sector Agencies in Sri Lanka

Road Category Responsible Agency

National Roads Road Development Authority

Provincial Roads Provincial Road Development Authority (Western)

Provincial Road Development Department (Uva)

Local Authority Roads Respective Municipal Council, Urban Councils & Pradeshiya Sabhas

Other Roads Ministry of Nation Building & Estate Infrastructure

2.1 Road Development Authority

National Roads are presently managed by the Road Development Authority (RDA) which is a

statutory body under the Ministry of Highways and Road Development incorporated under the

RDA Act No.73 of 1981. The functions of the RDA were expanded in 1986 when it became the

successor to the then Department of Highways.

The RDA is the premier highway authority in the country and is responsible for the maintenance

and development of the National Highway Network, comprising of Trunk Roads (A Class- sub

categorized as AA and AB) and Main roads (B Class) It is also responsible for the planning,

designing and construction of new highways, bridges and expressways to augment the existing

network. The National Highway Network consists of 11,67119 km of roads and 4,429 bridges

(span of more than 3 m) as at the end of 2007.

2.1.1 Structure and Execution Procedures

The organizational structure of the RDA is designed to carry out its assigned functions in order

to achieve its goals and objectives. The management of the RDA is effected by a Board of

Management appointed by the Minister of Highways and Road Development. One of the members

is appointed as the Chairman of the Authority. The Board of Management is responsible to the

19 Road Sector Master Plan, 2005

2-2

Minister for the implementation of Government Policy regarding the development of the National

Highway Network in the country.

The organization under the Board of Management has the General Manager as the Chief

Executive Officer. The General Manager is assisted by 6 Additional General Managers & 14

Directors to carry out the various functions. In addition there are 10 Project Directors in charge

of various Project Management Units – mostly for foreign funded programs under the Ministry

of Highways & Road Development and are appended to the RDA through the Chairman.

2-3

Figure 2-1: Organization chart of the RDA

2-4

The organization has 14 functional divisions, namely for Maintenance Management &

Construction, Road Works, Engineering Service, Highway Design, Planning, Research &

Development, Mechanical, Training, Property Management & Revenue, Land Acquisition &

Resettlement, Legal, Finance, Administration and Internal Audit each headed by a Director.

Since August 2007 the management of the RDA appoints 4 Additional General Managers to

supervise the 11 Engineering sector divisions (excluding Finance, Administration and Internal

Audit) and another AGM for all the Project Management Units(PMUs).

Most of the foreign funded projects are handled by their respective PMUs under the Ministry of

Highways & Road Development. They maintain independent accounting units, and are directly

responsible to the Ministry of Highways & Road Development. The Annual Reports of these 10

PMU’s are prepared separately. These PMUs are identified as:

1. PMU of Asian Development Bank Projects

2. PMU of Japanese Aided Projects

3. PMU of Miscellaneous Foreign Aided Projects

4. PMU of the Southern Transport Development Project

5. PMU of the Outer Circular Highway Project

6. PMU of the Road Sector Development Project

7. PMU of the World Bank Funded Road Sector Assistance Project

8. PMU of the Road Project Preparatory Facility.

9. PMU of the Colombo-Katunayake Expressway

10. PMU of the Colombo-Kandy Alternative Highway project

In the execution of road maintenance and capital work of the national roads, the functionality of

the Maintenance Management & Construction and Work Divisions is considered to be the most

important. Moreover the provincial and regional offices of the RDA function under this division.

2.1.1.1 Maintenance Management and Construction Division

The Additional General Manager (AGM) & the Director (Maintenance Management &

Construction) directs and co-ordinates the work of the Provincial Directors with the assistance of

a Deputy Director. There are 10 Provincial Directors and each of them have two or three Chief

Engineers who are in charge of each administrative district. Each Chief Engineer is assisted by

two or three Executive Engineers depending on the kilometerage of roads in the Region.

2.1.1.2 Works Division

The works division handles the following items of work:

2-5

• Widening & Improvement of roads – this includes continuation work of the Small

Scale Infrastructure Rehabilitation and Upgrading Projects (SIRUP) in the year 2007.

The Projects in Ampara, Monaragala, Badulla and Hambantota districts which are

funded by Japan Bank for International Corporation (JBIC) under PPRD Projects

from April 2007 and the projects in all other Districts coming under Government of

Sri Lanka (GoSL) funding.

• Sri Lanka Tsunami Affected Area Recovery and Takeoff (STAART) Projects funded

by JBIC.

• Construction of Pedestrian Subways at Kurunegala, Maharagama & Kottawa, funded

by GoSL

• National Roads Improvement for Greater Dambulla Development Plan, funded by

GoSL

• Access Road Improvement - International Airport at Weeravila, funded by GoSL

• Construction of Flyovers in the City of Colombo and Suburbs, funded by GoSL

In addition its functions include:

• Co-coordinate all tendering and awarding of contracts of value more than Rs. 10.0

million based on tender documents prepared by Provincial Directors / Director

(Works)

• Formation of the formal contract documents for the above works.

• Providing advice / support & training to Provincial Directors on contract management

/ claim evaluation, time extension respectively.

• Provide support to General Manager in Contract Management.

2.1.1.3 Executive Engineers Offices

Periodic and Routine maintenance of the National Road network is carried out by Executive

Engineering (EE) offices established in each district under Maintenance Management and

Construction Division of the RDA.

In the UP there are 5 divisional Executive Engineer’s (EE) Offices located in Bandarawela,

Badulla, Mahiyangana, Bibile and Monaragala. In the WP, the RDA has set up EE divisions of

Colombo, Avissawella, Gampaha, Negombo, Nittambuwa, Kalutara and Agalawatta.

The primary functions of the divisional offices are the (a) maintenance of National Highways,

(b) maintenance of bridges on the National Highways, (c) light rehabilitation and minor

improvement of National Highways using domestic funds, (d) improvements to weak bridges

with local funds (e) rehabilitation and improvement of minor roads and bridges on request.

2-6

These EEs offices employ their own labour force and machinery for both routine and urgent

maintenance work. But for periodic maintenance work, contractors are selected for work in

package basis following government tender procedure.

2.1.2 Capacity

The RDA has in recent years obtained foreign assistance in strengthening its planning functions.

Some software such as the Road Maintenance Expenditure Control (RMEC) and HDM IV are

now available for costing and prioritizing of maintenance work carried out by the RDA. The

RDA is also acquiring detailed road inventory and road condition data. The RDA has the

technical human resources to carry out the road works but would need capacity enhancement in

several key areas including new techniques, project management, planning, road safety, traffic

management etc. Another short coming is that presently a significant portion of its human

resource is utilized in attending to emergency work on non-RDA roads (mostly rural roads).

Other than for maintenance, all project work is carried out through contractors.

2.2 Provincial Road Development Authority-Western Province


The Provincial Road Development Authority (PRDA) is headed by a Board of Directors, one of

whom is appointed as the Chairman. The Board is virtually an advisory body with the Chairman

assuming the role of the Chief Executive for the conduct of the affairs of the Authority.

The next in line is the General Manager (Super Grade) who is responsible for the execution of

the PRDA’s work program and for executing administrative control over the PRDA. Director-

Internal Auditor is responsible to the Chairman. There are 2 Additional General Managers for

Engineering and Finance under the General Manager (Super Grade) in addition to the 3 Directors

for Human Resource Management, Legal and Lands. The Additional General Manager

(Engineering) deals with operational functions of road works with the assistance of the 5

Engineering Directors positioned under him. Two of them handle operations in the South and

North regional works respectively, with a senior Executive Engineer and 5 Executive Engineers

placed under each of them. These Executive Engineers are placed in divisional offices in the

North and South regions and they are responsible for the execution of works at divisional level.

Director Engineering (Mechanical), Director Engineering (Planning Programming, Research &

Development) and Director Engineering (Designing & Special Projects) are the 3 other

Engineering Directors responsible to the Additional General Manager (Engineering). Each of

them is supported by engineering staff positioned under them. The Organization Chart of the

PRDD in WP is shown in Figure 2-2.

2-7

Figure 2-2: Organization chart of PRDA –Western Province

BOARD OF DIRECTORS

CHAIRMAN

GENERAL MANAGER (SUPPER GRADE)

ADDITIONAL GENERAL MANAGER

ENGINEERING (SPECIAL GRADE) ADDITIONAL GENERAL MANAGER

FINANCE (SPECIAL GRADE )

Director Engineering (Mechanical)

Mechanical Engineer

Mechanical Engineer

Mechanical Engineer

Director Engineering

Operation (North)

Director Engineering

Operation (South)

Senior Executive Engineer (Operation)

(North)

Executive Engineer (05 Nos)

Senior Executive Engineer (Operation)

(South)

Executive Engineer (05 Nos)

Director Engineering (Planning Programming & Research & Development)

Director Engineering (Designing & Special

Projects)

Planning , Programming &

Monitoring Engineer

Material Quality Control

Engineer

Contract Engineers

(As required)

Director Finance

Accountant 02 (Nos)

Director Human Resource

Management

Administration Officer

Director Legal

Director Lands

Director Internal Auditor

Support Technical Clerical Staff

Support Technical Clerical Staff

Support Technical and

Clerical Staff

Design and Document Engineer

Laboratory Manager

Material Technicians

Clerical Staff

Technical Officer,

Drafts Person Clerk, Typist

Technical Officer, Drafts

Persons,

Support Staff

Staff Assistant Accountant 2 Book Keeper Management

Assistant Clarical Staff

Staff Assistant Management

Assistant Clarical Staff

Audit Assistant

2-8

2.2.2 Capacity

Table 2-2 gives a summary of the institutional capacity which is available within the PRDA in WP.

Table 2-2: Institutional Capacity of Road Development Authority, Western Province

Availability/Requirement Present Issues

Personnel No direct labour force

Employees Cadre Available

Engineers 12 12

Technical Officers 70 70 Draughtsman 1 0 Clerical 71 70 Quantity Surveyor 0 0

-Presently, there are no vacancies available in technical grades. This is a significant issue compared to other provincial road agencies since they are failing to complete their technical cadre. Being an Authority, PRDA can offer a good salary for their staff. This would be the probable reason for keeping their cadre intact.

Plants & Equipments

• Maintain a Machinery Unit under a Director

• Several surveying and quality assurance equipment such as Thedolites, Levels, and other material testing laboratory equipment are available in adequate amounts.

- At present, machineries are hired when needed. But several small construction equipment, surveying instruments and laboratory equipment are available at the PRDA head office and its regional offices. Most of these were donated by the ADB at the end of the RSDP project.

Supporting Assets

• There are 40 Nos of personal computers

• Several design and planning software are being used.(RMMS, GIS etc)

• Office furniture and space are inadequate.

• Number of supporting assets such as photocopy machines, printers, roneo machines, type writersinadequate.

. -RSDP project furniture and computers were donated to the PRDA at the end of the project. - PRDA doesn’t possess a separate building for a head office with adequate space - Office vehicles for head office and regional offices are inadequate.

Contractor & Material Availability

- Local contractor availability and their capabilities are satisfactory.

- Transport and material cost are comparatively low compared to the other provinces of the country.

2.3 Provincial Road Development Department-Uva Province

The Provincial Road Development Department (PRDD) in the UP is responsible for the

construction, maintenance and administration of the provincial road network. It is under the

Ministry of Electricity, Provincial Roads and Co-operative Development.


Presently, the Road Development Department (RDD) of the Uva Province is headed by a

Director (Roads) who functions under the Deputy Chief Secretary (Engineering Services). Three

Chief Engineers, an Accountant and an Administrative Officer are placed under the Director with

2 Chief Engineers assigned for executing work in each of the districts, namely Badulla and

2-9

Monaragala and the other one assigned for budgeting, planning and designing of road works.

There are 6 Divisional Engineers attached to the Divisional Offices in Badulla, Diyatalawa,

Welimada, Mahiyangana, Monaragala and Wellawaya working under the respective District

Chief Engineers. The Organization Chart of the PRDD in UP is shown in Figure 2-3.

Routine Maintenance: is conducted by means of 3 km packages contracted to laborers who live

in close proximity to those locations. The contracts are for mostly manual work including

weeding, clearing of drains etc. Equipments such as mammotties and knives, axes required for

such maintenance activities are provided by the PRDD. They also inform the Executive Engineer

if there are minor repairs such as pot-hole corrections. In such a case the PRDD carries out such

work using its own staff. Emergency maintenance activities which are of a magnitude beyond the

individual contractor to deal with, are carried out by the PRDD itself.

Procedures followed in executing periodic maintenance, routine maintenance and road

rehabilitation in Uva province is different to other provinces.

Periodic Maintenance: Since specific funds are not available for periodic maintenance, there is

no such activity at present. But the PRDD has initiated a program called the “Premix Program”

to fund their periodic maintenance functions using province Specific Development Grant

(PSDG) which is intended for capital works. Manual Premix plants are established in every

regional office with the necessary funds for the program allocated through the PSDG. It should

be noted that with the very poor condition of roads in UP, the Premix Program is a measure

whereby the roads are kept in a basic level of motorability. However since most of these roads

have exceeded their design life such programs cannot be treated as periodic interventions.

Road Surface Overlaying & Purchasing Machinery: In addition to the Premix Program, the

PRDD uses the balance funds in PSDG for overlaying around 10 km of road surface per year.

This work can be considered an improvement and is in fact the only capital work carried out by

the PRDD. Moreover, 10% of PSDG (capital expenditure) is set apart for purchasing vehicles

and machinery needed for road works. The PRDD hands over the machinery it procures to the

Provincial Mechanical Engineering Division and hires them back when necessary at

comparatively low rates for their needs for which they get priority.

2-10

Figure 2-3: Organizational Chart- Uva Provincial Road Development Department

Director (Roads)

Accountant Administrative Officer CE-Monaragala CE-Budgeting, Planning & Design CE- Badulla

DE- Badulla Division

DE- Mahiyangana Division

DE- Welimada Division

DE- Diyatalawa Division

DE- Monaragala Division

DE- Wellawaya Division

CE- Chief Engineer

DE- Divisional Engineer

2-11

2.3.2 Capacity

Table 2-3 gives a summary of the institutional capacity available within the PRDD in UP.

Table 2-3: Institutional Capacity of Provincial Road Development Department of UP

Availability/Requirement Present Issues

Personnel

Employees Cadre Available

Engineers 11 9

Technical Officers 33 28

Draughtsman 10 10

Clerical 38 35

Quantity Surveyor - -

Computer Operator - -

-It can be seen that there are vacancies in most of the

technical grades. It is also noted that there are no

Quantity Surveyors or Computer Operators assigned

for the department. It is typical that they are unable

to fill these vacancies due to one of the following

reasons:

• Procedural constraints in recruiting applicable

personnel especially in the case of technical staff

recruitments.

• Inability to find suitably qualified staff

particularly since staff salaries are lower than

other government institutions such as RDA.

Plants &

Equipments

• Seven Premix Plants are available (one for

each division)

• No machinery in possession of the PRDD

-10% of PSDG (Capital Expenditure) is allocated for

vehicles/machinery needed for the road works.

PRDD hands over these machineries to the

Provincial Mechanical Engineering Division and

they hire these machinery at comparatively low rates

on PRDD requisitions.

-Department maintains premix plants which are

financially supported by the Finance Commission

under the premix program. These plants are

established in all six divisions and each plant is

producing 5 cubes of premix per week.

Supporting

Assets

• 20 Nos of personal computers are available

but there are no design nor planning software.

• Office furniture and space is inadequate.

• There are several vehicles for office use.

-Since there is no design office established yet, there

are no trained personnel to run design software.

-RSDP project furniture and computers were donated

to the PRDD at the end of the project.

- There are several departments in the building where

the PRDD head office is located.

Contractor &

Material

Availability

- Due to lack of continuity of work and stated

tendering problems, there is a shortage of

contractors graded above M2 (ICTAD)

- Government restrictions do not allow use of

locally available material

-Available contractor’s capacity (technical &

machinery) is not adequate for carrying out large

rehabilitation works.

-There are shortages of construction material,

especially the metal that is required. The government

has restricted the operation of quarries in the region

due to environmental issues, though these rocks

would have well suited the metals needed for the

construction (higher AIV)

-Higher rates are being paid for the material transport

compared to the other two provinces as metal in

particular is transported from WP.

2-12

2.4 Local Governments

All Municipal Councils, Urban Councils and Pradeshiya Sabhas generally execute road

maintenance through their own civil works divisions. As there is no standard mode of operation

across all Local Authorities, this report includes the observation of selected Local Government

Authorities in each province as listed below:

Western Province

Colombo Municipal Council, Minuwangoda Urban Council, Horana Urban Council,

Divulapitiya Pradeshiya Sabha and Bulathsinhala Pradeshiya Sabha.

Uva Province

Badulla Municipal Council, Bandarawela Urban Council, Haputale Urban Council, Passara

Pradeshiya Sabha and Monaragala Pradeshiya Sabha.

In general, even though the structure and execution procedures are more or less similar in both

provinces; there is generally a higher capacity in terms of staff and equipment in local authorities

in the WP when compared to those in UP.


The head of the Badulla Municipal Council is an elected Mayor. The Municipal Commissioner,

who is the head of the staff, is responsible to the Mayor. According to the organizational chart in

Figure 2-4, the key functions of the municipality are performed by its 4 sections namely; the

Secretarial Department, Accounts Department, Health Department, and the Engineering

Department. Sectional heads of these 4 departments are answerable to the Municipal

Commissioner.

There is a Works Department under the Municipal Engineer that is responsible for all the

construction and maintenance activities including the road sector. These activities are carried out

by Technical Officers and with work gangs under a supervisor.

The Organizational Structure of the Colombo Municipal Council (CMC) is slightly different to

Badulla Municipal Council. The CMC has a Deputy Municipal Commissioner (Engineering)

under whom all the engineering functions are carried out. The Deputy Municipal Commissioner

(Engineering) is assisted by several directors including Director (Works) who is responsible for

road works. This position is supported by an Engineering Staff as indicated in Figure 2-5

The UCs are headed by a Chairperson elected through the local government elections. The next

in line is the Secretary to the Council who is responsible for the execution of the council’s work

program and its administration. The Civil Works division which includes road maintenance is

2-13

generally headed by the Superintendant of Works who reports directly to the Secretary.

Technical Officers and the direct labor force attached to the division supports him in executing

road maintenance and other civil works. Figure 2-6 shows the organization chart of

Minuwangoda Urban Council as a typical UC.

Similar to the UCs the head of the PS= the Chairman, is elected through an election. The next in

line is the Secretary who is responsible for the execution of the work program and administration

of the Pradeshiya Sabhas. The Civil Works program of the PS is generally headed by a Technical

Officer who is directly under the Secretary. The Technical Officer executes the required road

maintenance and other civil work programs with the assistance of the direct labour assigned

under him. Figure 2-7 shows the Organization Chart of Divulapitiya Pradeshiya Sabha as a

typical illustration.

Generally local governments carry out only road maintenance work as they usually do not have

the required funds for new work or rehabilitation work. There is no regular annual work plan for

road maintenance either. Weeding, clearing of drains and pot-hole patching etc. is the usual

maintenance work performed using direct labor force of the local authorities. But the more

expensive capital work programs that require tarring and metalling or more expensive repairs

are classified under periodic maintenance. Such improvement and rehabilitation work is

contracted to contractors chosen through a process of competitive tendering.

Local governments especially the PSs also function as the implementation agency of rural road

projects handled by District Divisional Secretaries. Funds from the Decentralized Capital Budget

(DCB), ‘Maga Neguma’ and ‘Gama Neguma’ programs (each of which will be described later)

come under this category.

2.4.2 Capacity

The existing technical and labor capacity for most of the Pradeshiya Sabhas appear to be

inadequate considering the condition and the extent of the road network. Most of the Ps employs

a Technical Officer and a labour team of about 5-10. Municipal and Urban Councils employ

comparatively better qualified technical staff including Engineers, Superintendent of Works and

Technical Officers even though their road network is in much better condition and its extent is

less.

There are also other reasons for the better condition of roads in MC and UC areas. In the first

instance MCs and UCs have more earned incomes and secondly it is difficult to find competent

staff in rural areas. Moreover there is greater visibility of the condition of roads in urban areas

and political representatives and others exert pressure for the speedy repair of any road in poor

2-14

condition. Since Pradeshiya Sabhas cannot afford to have technical officers who have specialized

competencies in road works, each technical officer has to be responsible for all the civil works in

the area and is not specialized in road works.

The Municipal and Urban Councils usually have some equipment belonging to them which

would include at least one Roller. However most Pradeshiya Sabhas do not have and mechanized

equipment for road repairs.

2-15

Figure 2-4: Organization Chart of Badulla Municipal Council

Mayor

Deputy Mayor & Members

Municipal Commissioner

Accountant Secretary Engineer Medical Officer

Clerical Staff Clerical Staff

Water Works Department

Superintendent of Work

Technical Officers

Supervisors

Labourers

Works Department

Labourers


Technical Officers

Supervisors

Chief Public Health Inspector

Public Health Inspectors

Supervisors

Labourers

2-16

Figure 2-5: Organization Chart of Colombo Municipal Council

The Mayor

Deputy Municipal Commissioner ( Development )

Deputy Municipal Commissioner ( Engineering )

Deputy Municipal Commissioner ( Administration )

Director (Workshop )

Director (Traffic Design & Road Safety) )

Director ( Planning )

Director ( Works )

Director ( Projects )

Director ( Drainage )

Director ( Solid Waste

Management )

Superintending Engineer ( South

Superintending

Engineer ( North ) SE

(CRMU)

District Engineers

– 1,2A,2B

District Engineer s

Supervisors Drivers

Labourers

Technical Inspector

Road Engineers

Technical Inspector

Supervisors Drivers

Labourers

Technical Offices

Supervisors Drivers

Labourers

SE (studies)

Chief Architect

SE

(traffic)

Road Engineers

Architects Road Engineers

Technical Offices

Draughts men

Technical Offices

2-17

Figure 2-6: Organization Chart of Minuwangoda Urban Council

Chairman

Internal Auditor

Secretary

General Administration

Accountant

Clerical Staff

Chief Clerck

Physical Planning

Labourers

Clerical Staff

Revenue & Environment &

Public Health Inspector

Labourers

Chief Public Health Inspector

Public Welfare

Chief Development

Librarian

Supporting Staff

Chief Development

Technical Officers

Office Clerk


2-18

Figure 2-7: Organization Chart of Divulapitiya Pradeshiya Sabha

Chairman

Secretary

Development

Clerical

Chief Clark

Labourers Librarian

Librarian

Primary School Head

Medical Officer

Supporting Staff

Community Development Officer

Technical Officer

2-1

2.5 Private Sector Involvement

The GoSL has made several attempts to attract private sector involvement in road funding, design, construction and maintenance over the last 3 decades.

2.5.1 Funding

Private sector funding has not been hitherto successful for road financing in Sri Lanka. Several

new highways and expressways that have been planned in recent years have been offered for

Foreign Direct Investment to private parties. GoSL has actively promoted projects such as the

Colombo-Katunayake Expressway, Colombo-Kandy Alternative Highway on BOO, BOT basis

but without success since traffic levels on these proposed highways are considered still to be quite

moderate and the per capita incomes of road users is still relatively low. As a result such investors

have demanded large guarantees from GoSL. The CKE project has now been recommissioned on

basis of a commercial loan from China where a Chinese contractor will bring the required foreign

investment to be paid back over a period of time. This is planned as a toll road, but tolls are only

expected to bring less than 1/3rd of the required payments. There has been no interest from private

investors for provincial or rural roads.

2.5.2 Design

The RDA and the PRDAs have design offices that attend to the design requirements of locally

funded new roads and road rehabilitation projects. However almost all foreign funded projects at

all three levels of the road network, have their design work carried out through the engagement of

private design consultants.

2.5.3 Construction

Almost all new road construction is now out sourced to the private sector at all three levels of road

administration. There are a couple of long-standing foreign road construction firms and several

local firms of repute. While these are mostly engaged in the road projects of the national road

network, and very rarely do they engage in projects on the provincial network. This too would be

for foreign funded projects. The lack of regularity of work and problems of tendering are

reportedly reasons why they are not found to work on the provincial road network. Contractors of

lower rating only are generally found to undertake work in the provinces.

2.5.4 Maintenance

Road maintenance is shared between the road agencies and private sector. The RDA undertakes

its routine maintenance through its internal staff, but also uses private sector contractors for larger

2-2

works. Different provinces have different procedures with some provinces out sourcing all its road

maintenance to private sector while their own work gangs attend to emergency works. At the local

government level also there are internal labour gangs that attend to routine works while specific

rehabilitation projects are out sourced through competitive tender.

3-3

3 Sources and Procedures of Funding Roads

The Government strategy pertaining to the manner of funding the road sector has not been

explicitly stated. The implicit strategy it has followed can be gathered from the funding

arrangements in past years and particularly the manner in which funding has been allocated for the

different road networks. This section investigates the funding for the road sector as contained in

the budgetary provisions of the Government. The actual expenditures based on the data collected

from the provinces will be discussed in following chapters.

Before the creation of Provincial Councils the practice was that all funding for roads was allocated

to two ministries. The Ministry of Highways was given funds for all roads A, B, C, D and E while

each local authority was given an allocation through the Ministry in charge of Local Authorities

for its own road network within their areas. However, with the advent of the Provincial Councils,

this situation changed with the Finance Commission made responsible for determining

distributional criterion for the allocations made by the Government to the Ministry of Local

Government and Provincial Councils under the requirements as per 13th constitutional

amendment, together with the Provincial Council Act No. 42 of 1987 and the Provincial Council

(Consequential Provisions) Act No. 12 of 1989 which established legislative and executive

powers at the provincial level.

3.1 National Roads

The National Budget allocates funds for the RDA through the Ministry of Highways and Road

Development in two different expenditure categories labeled Recurrent and Capital. The Treasury

allocates funds for national roads through domestic and foreign funding sources. Domestically

funded recurrent expenditure basically provides for personal emoluments, travelling expenses, and

for the service & maintenance of capital assets. Though Road Maintenance is a Recurrent

Expenditure it is categorized under Capital Expenditure along with expenditure for road

construction, rehabilitation and improvement. Table 3-1 gives typical breakdown of fund

allocation, as per the National Budget for the period 2006 to 2008, for the execution of different

road programs for the national road network.

Table 3-1: Head of Ministry of Highways & Road Development, 2008 Budget (SLR mn)20

Description 2006

Actual

2007

Approved

2007

Revised

2008

Estimate

Recurrent Expenditure 177 186 193 114

Personal Emoluments 28 32 32 40

Other Recurrent 148 154 161 74

20 Source: National Budget-2008

3-4

Capital Expenditure 25,870 45,684 47,487 51,904

Expressway Development 7,665 12,884 11,338 12,798

Southern Transport Development Project 7,130 7,256 6,845 6,488

Colombo Katunayake Expressway 246 2650 2650 1700

Outer Circular Highways 187 2885 1750 4580

Highways Development 8,917 12,672 14,440 14,030

Maintenance of Roads & Bridges(RMTF) 2,933 3,410 3,410 2,950

Road Network Improvement Project 3,603 3,008 3,776 1,045

Road Sector Assistant Project 935 3,464 3,889 4,361

National Highway Sector project 1 1,572 1,572 4,056

Widening & improvement of Roads 3,001 3,427 4,102 4,880

Construction of Bridges & Flyovers 1,180 2,543 2,583 4,734

Tsunami Affected Road Rehabilitation 1,443 8,049 8,937 7,552

Institutional Support 1,923 3,015 2,965 3,901

Maga Neguma 1,800 3,082 3,082 4,000

Other Capital Expenditure 41 12 40 16

Grand Total 26,047 45,870 47,681 52,018

Financing 26,047 45,870 47,681 52,018

Domestic 11,781 21,252 22,262 24,535

Foreign 14,265 24,619 25,419 27,483

The recurrent funds are based on staffing levels and other operational costs.

As outlined earlier, the spending on national roads comes from more than a single sources. These

are identified as:

a) Central Government Allocations for both capital and recurrent expenditures made to the

Ministry of Highways for work carried out through the RDA.

b) Projects funded through foreign loans channeled to the RDA through the Ministry of

Highways.

c) Projects funded through foreign loans channeled to the RDA through other central

government ministries and agencies without being allocated to and going through the

Ministry of Highways.

It has been noted that ‘the review of the records of both the RDA and the NBD reveals that even

though the spending on national roads is mostly carried out through the RDA, there are other

ministries such as the Ministry of Nation Building & Development and the Ministry of Local

Government & Provincial Councils that handle budget allocations spent on national roads. The

spending by the Ministry of Mahaweli on major roads which will eventually become part of the

national road network has also been considered’21.

21 Source: Kumarage A.S., Roads Public Expenditure Review n Sri Lanka, World bank, 2006

3-5

3.1.1.1 Sources & Procedure of Maintenance Funding

Until year 2006 the budgetary allocation for road maintenance was made directly to the Ministry

of Highway through the domestic fund. Since January 2007, once the Road Maintenance Trust

Fund (RMTF) was set up, the government budget made its road maintenance allocation to the

RMTF. The fund commenced with $ 30 million for the year 2007 and was expected to be

increased by $ 4 million annually until year 2010. It was expected that the fund would then be

transformed in to a dedicated second generation road fund. But presently the RMTF is only a

supplementary account. Moreover it is confined only for national roads.

The RDA carries out its periodic and routine maintenance by allocating funds to their divisional

offices established within the provinces. Allocation for routine maintenance is released according

to the road condition assessment made by the Executive Engineers of the divisional offices, based

on the RMBEC road maintenance estimation software programme. Road improvement work items

are selected on priority basis, taking into consideration the assessed needs for each district.

However the RDA always complains that the full allocation cannot be used since the Treasury

does not release the agreed Imprest on time.

3.1.1.2 Sources & Procedure of Capital Funding

As indicated in Table3-1; new construction, improvement and rehabilitation work of national

roads are funded by the National Budget through the Ministry’s Capital Expenditure allocation..

These Capital allocations are based on project proposals that are submitted to the Treasury and are

included in the budget. These include projects that are funded entirely through domestic funds as

well as projects which are funded by foreign donors with counterpart domestic funding. Most

foreign funded projects are identified by consultants provided by the donor agencies.

In the case of domestically funded projects, there is no particular pipeline for projects. Projects are

chosen based on prevailing political expediencies. Large scale, domestically funded projects

however are usually mentioned in the budget speech thus officially declaring such projects as

policy decisions. Allocations coming under the Maga Neguma Program are currently confined to

upgrading of rural roads and even though such allocations come under the Ministry of Highways,

the RDA is not the implementing agency of such work programs.

Some funds making up around Rs 100 to 200 mn which are allocated to the Ministry of Highways

are transferred on a regular basis to the RDA on completion of specific work programs.

3-6

3.2 Provincial Roads

The Central Government allocates more than 90% of all budgetary needs of the Provincial

Councils (PCs) with provincial revenue accounting for only about 10% of their total financial

needs for both recurrent and capital expenditure. In year 2007, the total expenditure of all PCs was

Rs. 105, 850 mn but only Rs.13,900 mn was collected by the PCs from devolved revenues.22 Each

year the Central Government in consultation with the Finance Commission allocates domestic &

foreign funds in the form of grants for provincial development through the MLGPC to each

province. Treasury transfers funds directly to the PCs by notifying at the same time both the

Finance Commission and the MLGPC.

There are 5 major sources/channels23 of Treasury funding for provincial road development:

• Domestic Funds

• Foreign aid loans

• Foreign aid related grants

• Reimbursable Foreign aid loans

• Foreign aid related domestic funds

3.2.1 Sources & Procedures of Maintenance Funding

Central Government provides a Block Grant to all PCs for their recurrent expenditures on account

of road work. The Block Grant is provided from domestic funds of the Central Government. Other

than the Western Province most provinces get the majority of their recurrent budget from Block

Grants received from the Central Government. For the road sector this includes salaries,

overheads and an allocation for recurrent maintenance which in addition to other assets includes a

significant portion for expenditure of road maintenance.

PCs prepare their annual recurrent expenditure needs in consultation with the Finance

Commission (FC) by requesting Block Grants through the National Budget. PCs get their

budgetary allocation of Block Grant made under the National Budget released through the

Ministry of Local Government & Provincial Councils (MLGPC) and the FC. Basically PCs have

to involve both these institutions in order to get their allocations released.

Though the amount of the allocation is specified under the Head of each PC in the National

Budget, it is distributed among the PCs considering their generated revenues and cash flows and

usually after informal discussion in this regard with the FC & the MLGPC. This Block Grant is

usually released as a monthly Imprest. However, the MLCPG has no power to regulate the

utilizations of these funds after releasing to the PCs.

22 National Budget of Sri Lanka, 2007 23 Ibid

3-7

But in the case of the Western Provincial RDA, they maintain a special fund which is financed

through their own revenue. In the case of a shortfall in government capital or recurrent funds, the

PRDA uses these funds to continue with the work program.

3.2.2 Sources & Procedures of Capital Funding

Central Government provides domestically funded Criteria Based Grants and Matching Grants

(which were provided only till 2006) for capital expenses of PCs. But PCs have not allocated

funds from these grants for road sector development over the last five years. Provincial Specific

Development Grant (PSDG) which identifies sectoral expenditure is the only domestic funding

source which has been utilized by the PCs for capital works in the road sector.

Similar to the procedure for providing Block Grant, the PCs have to negotiate with the FC and

MPCLG to request the release of funds from the Treasury. PCs have to finalize the development

priorities in consultation with the FC. Once the program is finalized the FC recommends to the

Treasury to allocate the funds required under PSDG for the next financial year. Once the

allocation is made under the National Budget, PCs can request the Treasury for their allocations

with the approval of the MLGPC and the FC. Treasury releases the PSDG to the PCs through

MLGPCs with a notification to FC based on pre-identified and agreed development priorities in

the province. The FC has authority to supervise the progress of the performance of the PCs in

these projects prior to releasing these grants. PCs do not have provision to deviate from the grant

utilization guidelines provided by the FC.

Until 2006, the PCs had to channel their requests for funds through the MLGPC. Since this

process was found to experience delays in funds reaching the PCs, the Treasury authorized the

release of funds directly to the Chief Secretary of the respective PC with a notification to the

Ministry and to the FC.

In addition to road rehabilitation using domestically funded PSDG funds, there was an ADB

funded Road Sector Development Project (RSDP) (2003-2008) which was executed by the

MLGPC for rehabilitating the provincial road network in both Uva and Western provinces. Since

these projects are executed under MLGCP, the ministry has to forward the budgetary

requirements of each project to the Treasury in their annual budget proposals. Component of

foreign aid related domestic funds are mainly utilized for the local operational cost of the projects.

The project implementing agency of RSDP can request their financial requirements directly from

the Treasury. Thereafter the Treasury inquires from the MLGPC for a certification from the

Project Director for the payment requested by the implementing agency before funds are released.

The WP RDA receives capital grants through the Provincial Council Fund, Parliamentarians

Decentralized Capital Budget and their own funds for the execution of capital work. But such

funds are usually not available for the Uva Province. Present funds allocating and procedure for

release of funds for the provincial road sector is graphically represented in Figure 3-1.

3-9

Figure 3-1: Procedure of Provincial Road Financing, 2008

Eg: PSDG, Criteria & Block Grant based works

Ministry of PCs & LG

Fund Requesting Criteria (No specific criterion for foreign funds)

Fund Releasing Criteria

Periodic & Routine Maintenance

Rehabilitation & Improvements Eg: RSDP Eg: CAARP

STAART

Notification of fund releasing

Notification of

fund releasing

Next year Road Work Program

Finalized Next year Road Work Program

Funding recommendations for approved Road Program

Central Government

(Treasury)

Domestic Financing Foreign Financing

Finance Commission

• Domestic Funds

• Foreign aid related domestic funds

Domestic Financing Sources

Ministry of PCs & LG • Devolved Revenue

• Foreign aid loans

• Foreign aid grants

• Reimbursable Foreign aid loans

Provincial Councils

Provincial Road Agency

Foreign Financing Sources

3-10

3.3 Local Authority Roads

3.3.1 Sources and Procedures of Capital Funding

Local Governments, especially Pradeshiya Sabhas rarely allocate finance for the capital work of

road sector. Therefore rural roads are mainly rehabilitated and improved through the external

domestic funding sources of the PSDG, Decentralised Capital Budget (DCB), Maga Neguma,

Gama Neguma and Uva-Wellassa projects. In addition, there is the World Bank funded Road

Assistant Project now in progress for rehabilitating rural roads in Uva Province.

Public Expenditure on Urban Roads

Urban roads have fewer sources of funding when compared to provincial roads. The primary

source of funding is through their own funds. These funds are used primarily to pay the shortfall

in salaries after the payment of 60% of salaries provided by the Central Government through the

Ministry of Local Government & Provincial Councils and disbursed direct to the respective

Provincial Council based on the recommendation of the Finance Commission. Except for a few

councils which have reasonably good revenue bases, others claim that they do not have adequate

funds for maintenance and rehabilitation work on the urban road system.

From 2006, the Finance Commission has agreed to release part of the funding under the PSDG for

local authority roads to urban and municipal councils as well. In addition, several councils have to

pay back loans taken for the UDLIHP program funded by the ADB during 2000 to 2004. This is

for roads and bridges constructed under this project. Presently, urban roads do not receive any

significant foreign funds. Neither do they have any source of road user charges as opposed to

Central Government collections of import duties, fuel taxes etc and provincial revenues from fuel

taxes as well as vehicle licensing fees, which is reality is collected on their behalf too.

Public Expenditure on Rural Roads

The spending on rural roads cannot be estimated to any degree of reliability or accuracy. This is

because there are numerous sources, most of them executing the work through different

arrangements that vary from place to place. The primary source of funding is the annual PSDG

grant from the Central Government channeled through the Ministry of Local Government &

Provincial Councils and distributed through the Finance Commission with instructions to the

relevant Provincial Councils on the allocations to each Pradeshiya Sabha. There are also PSDG

funds under a numerous other headings such as Backward Areas Roads, Development of Scenic

Resources, Mahaweli Roads, Estate Infrastructure, Rural Infrastructure and 5 year Development

Plan, which are found to incur varying percentages of the allocated funds to each such vote on

rural roads.

3-11

3.3.1.1 Provincial Specific Development Grant-Local Authority Roads

Similar criterion in allocating and releasing PSDG funds for provincial roads is followed for local

authority roads as well. Budgetary requirements of each of the local authorities for their road

rehabilitation programs are prepared by the Provincial Commissioner in consultation with the FC

and the respective Local Authority. The Provincial Commissioner sends the finalized and agreed

financial requirements to the National Budget Department through the MPCLG to be included in

national budget allocation.

Once the budgetary allocations are made, the Treasury releases the requested PSDG to the

Commissioner upon the recommendation of the FC. The Provincial Commissioner thereafter

distributes the grants among the respective Local Authorities in accordance to the FC’s directions

which are based upon a pre-agreed schedule of investment.

However in the budget for the year 2007, allocations were made for Infrastructure Development

of Local Authorities including a road sector component. There was no specific dedicated PSDG

allocation for Local Authority roads as in previous years.

In parallel to the PSDG road program, there were two other projects functioning under the

Provincial Commissioner during the years 2005 and 2006. In year 2005 there was a Local

Government Road Upgrading Project which was intended to enhance the motorability of roads

that are served by public transport services. Similarly in the year 2006, Local Authority Road

Rehabilitation Project was conducted under the Five Year Development Plan. Funding procedures

for both these projects was the same as for the PSDG since the FC was also involved in the

process.

3.3.1.2 Decentralized Capital Budget (DCB)

The Annual National Budget allocates as a Decentralised Capital Budget (DCB), an amount of Rs.

5 million for each Member of Parliament, totalling Rs 1,125 mn annually. These funds are mainly

utilized for regional infrastructure development such as for road, electricity, drinking water and

irrigation projects. As decided by the respective Member of Parliament. Until the year 2006 DCB

allocation came under the head of Ministry of Rural Livelihood Development and after which it

was transferred to the Ministry of Nation Building & Estate Infrastructure Development

(MNBEID).

In the case of Local Authority road improvement and rehabilitation, Parliamentarians select

projects in consultation with the local authorities and submit their final schedule of DCB Program

to the District Secretary. District Secretary is responsible to obtain approval for the program from

the MNBEID. Once the program is approved the District Divisional Secretary calls for tenders for

road projects through the respective District Divisional Secretariat or alternatively projects are

3-12

handed over to relevant Pradeshiya Sabha for execution of the work program. Depending on the

physical progress of the work, payments are made by the Ministry to the contractors or the

Pradeshiya Sabha with the approval of the District Divisional Secretary.

3.3.1.3 Maga Neguma

Maga Naguma was started in year 2004 under the Ministry of Road Development and later it was

transferred to the Ministry of Highways and Road Development in year 2008. The District

Secretary executed the project with the assistance of the divisional secretariat in DS division level

when project was carried out under the Ministry of Road Development during the period of 2004

to 2007.

The National Budget allocates fund for the project to the Head of Road Development Ministry

based on the budget proposals handed over by the Ministry itself. The project executing agency,

the District Secretariat, called for tenders through the respective divisional secretariat as

accordance to a pre-identified road rehabilitation schedule. Some Local Authority road projects

are handed over to the relevant Pradeshiya Sabha for execution of work. Depending on the

physical progress of the work, payments are made by the Ministry to the contractors or to the

Pradeshiya Sabha with the approval of District Secretary.

3.3.1.4 Gama Neguma

The Gama Neguma programme was initiated in year 2006 under the Ministry of Rural Livelihood

Development with a budgetary allocation of Rs. 400 mn. But the project started to function

effectively only after year 2007 under the same ministry. However in year 2008 it was transferred

to the Ministry of Nation Building & Estate Infrastructure Development. This project functions on

the basis that 20% of project cost is to be contributed by the community. Therefore most of the

projects are executed by locally established community and welfare organizations under the

supervision of the District Secretary.

Until year 2007, the National Budget allocated funds for the project to the Head of Rural

Livelihood Development Ministry based on the budget proposals handed over by the Ministry

itself. The District Secretariat and the Divisional Secretariat executes pre-identified projects with

the participation of local community groups and local governments. Depending on the physical

progress of the work, payments are made by the Ministry to the relevant project implementing

agencies or to the Pradeshiya Sabhas upon the certification of the District Secretary.

3-13

3.3.1.5 Uva Wellassa Project

The Uva-Wellassa Development Project was commenced in year 2005, under the Ministry of

Health, Nutrition & Uva Wellassa Development. Infrastructure development and up-lifting of

welfare facilities in UP are the major objectives of this project. Rural road rehabilitation was one

of the project components for which 17% of the total allocation in the year 2005 was provided.

After reshuffling ministries in year 2006, this project was shifted to the Ministry of Regional

Development. However the project was not operational after year 2007. Since the year 2008 the

remaining work in the project is carried out under the Ministry of Nation Building and Estate

Infrastructure Development.

This project was entirely funded domestically. The National Budget made the allocation during

the period for years 2005 to 2007 under the relevant ministry. The Ministry had established a

Project Implementation Unit in the Badulla District Secretariats for executing this project.

Respective ministries released funds to this unit according to the work that was executed.

3.3.1.6 Road Sector Assistant Project-Rural Roads

This project commenced in year 2008 as a pilot project for investigating a suitable road surfacing

for Local Authority roads in Uva Province. The pilot project invested on roads in

Siyabalanduwa, Meegahakivula and Rideemaliadda Pradeshiya Sabhas. Under this project 33.32

km were rehabilitated in year 2008 with different surface types such as mettalling & tar,

concreting and gravel. Funding was arranged through the Ministry of Highways and Road

Development. A separate project office was established in the office of the Provincial

Commissioner and financing of the project is carried out under the supervision of Provincial

Commissioner.

3.3.2 Sources and Procedures of Maintenance Funding

Road maintenance, especially routine maintenance, is generally neglected by the local

governments due to the unavailability of funds. However periodic maintenance is carried out from

time to time with the capital funds provided by PCs and its members though it is identified as road

development activity by the Local Authorities. Even though MCs and UCs road sector are also

under-funded they are able to keep the road network in satisfactory condition since the extent of

the network is small.

Funds for road maintenance are allocated in the respective Local Authority budget through their

recurrent revenue which is funded with revenues collected by the authority and the grants received

from the government. Around 30-40% of estimated annual recurrent revenue of local authorities is

made up of government grants received via the respective PC.

4-1

4 Capital Expenditure for Roads (2004-2007)

4.1 National Roads

In the past few years the Capital Allocation for the RDA was made under the program headings of

Expressway Development, Highway Development, Improvement & widening of roads and

Construction of Bridges & flyovers etc. The national roads in both Western and Uva provinces

included several projects under these programs of Highway Development, Improvement &

widening of roads and Construction of Bridges & flyovers during the period of 2004-2007. This

chapter assesses the Capital Allocation and Expenditure for the two provinces performed with

respect to each afore-mentioned program during the period of 2004 to 2007.


A number of road rehabilitation projects in the WP have been completed under different foreign funded projects. These are discussed in the following sections:

4.1.1.1 Improvement & Widening of National Roads (SIRUP)

Financial investment for executing national road improvement and widening is mainly made

through the Small Infrastructure Road Upgrading Project (SIRUP) which is funded by

reimbursable foreign aid loans. This project is implemented throughout the island by the RDA for

the improvement of the national road network. WP received the largest amount of SIRUP funding

during the past few years equaling provincial allocation to 15-20% of total allocation. Table 4-1

illustrates the financing made through SIRUP for the national road network in Western Province.

Table 4-1: Financing of Improvement & Widening of National Roads and Bridges24

Rs. Million

2004 2005 2006 2007

Budgetary Allocation N/A 1060.0 1010.0 630.0

Actual Expenditure 480.6 961.8 600.1 925.2

4.1.1.2 Expressway Development

The importance of Outer Circular Highway (OCH) for Colombo city was in discussion for many

years and it was started with the detailed design carried out in year 2004. Not limiting to OCH,

several expressway development projects were also started in the recent past extending from OCH

to Katunayake, Kandy and Southern part of the country. Though Alternate Colombo-Kandy

Highway (ACKH) & Southern Highway extends beyond the provincial boundaries, its potential

24 Source: Road Development Authority-Planning Division

4-2

developmental impact on is significant. Table 4-2 shows the expenditure incurred on these

expressways during the period of 2004 to 2007. Expenditure of ACKH & OCH in year 2004

includes detailed design in addition to construction cost.

Table 4-2: Financing of Expressway Development Program-WP

Project Name Rs. Million

2004 2005 2006 2007

STDP-Kottawa to Kurundugaha-hetekma(JBIC) 361.1 321.7 3200.6 4146.4

Colombo-Katunayake (Domestic) 50.0 385.8 245.8 497.9

Outer Circular Highway (JBIC) 7.8 23.4 187.0 894.2

Alternate Colombo-Kandy Highway-(SIDA) 43.1 8.6 2.2 32.7

Construction of the Colombo-Katunayake Expressway is executed through domestic funding

sources. JBIC funds for OCH and Southern Highway (section from Kottawa-Kurundugaha-

hetekma).

4.1.1.3 Highway Development

ADB & JBIC funded Road Network Improvement Project (RNIP) and JBIC funded Baseline

Road-Phase III are executed under this program during the period of 2004 to 2007. Island-wide

Road Network Improvement Project includes rehabilitation of several flood affected roads and

also Panadura-Ingiriya, road in the WP. Table 4-3 illustrates the expenditures incurred during

2004 to 2007 for both these projects. It should be noted however, that the amounts relate to RNIP

expenditure are for the total package and not limited to the projects in Western Province only.

Table 4-3: Financing of National Roads under Highway Development Program-WP25


2004 2005 2006 2007

Road Network Improvement Project-ADB,JBIC 2934.1 1844.6 3,060 3171.5

Baseline Road Phase III-JBIC 222.0 92.7 0.4 49.8

Expenditure of Baseline Road in year 2004 includes detailed design and construction cost as well.

4.1.1.4 Tsunami Affected Road Rehabilitation

Since 2005 JBIC has funded the STAART project invested for the rehabilitation of Tsunami

affected areas in Western, Southern and North Eastern. Estimated cost component of STAART for

rehabilitating national roads in Western Province is Rs. 116.6 mn. Table 4-4 shows the investment

made under the above cost component during the period of 2006 to 2008.


4-3

Table 4-4: STAART funding of National Roads in Western Province

Rs. Millions

2004 2005 2006 2007 2008

Allocation N/A N/A 18.9 17.0 21.0

Expenditure N/A N/A 30.9 53.0 10.0

4.1.1.5 Construction of Bridges & Flyovers

There is also an Overseas Development Assistance loan under which steel bridges and flyovers

are being constructed mostly in the Western Province. No cost figures have been published in this

regard as yet. The first tranche of five bridges is presently under construction, all of which are to

be located within WP.

4.1.2 Uva Province

A number of road rehabilitation projects in the UP have been completed under different foreign funded projects. These are discussed in the following sections:

4.1.2.1 Improvement & Widening of National Roads (SIRUP)

Financial investment for executing national road improvement and widening is mainly made

through the Small Infrastructure Road Upgrading Project (SIRUP) which is funded by

reimbursable foreign aid loans. This project is implemented island wide through the RDA for the

improvement of the national road network. But UP received the least amount of SIRUP funding

during the past few years. Table 4-5 illustrates the financing made through SIRUP for the national

road network in Uva Province.

Table 4-5: Financing of the Improvement & Widening of National Roads and Bridges26

SL Rs. million

2004 2005 2006 2007

Budgetary Allocation N/A 33.0 309.0 180.0

Actual Expenditure 28.7 25.7 36.1 21.9

4.1.2.2 Highway Development

Under this program, several road rehabilitation and improvement work have been executed

during the period of 2004-2007. Among them, the construction of the new Badulla-Kandy


4-4

alternate road is the only new road project in UP. This was carried out with domestic funds while

all other projects were funded thorough foreign grants or loans. Projects such as Ratnapura-

Beragala-Bandarawela road are not limited to the province but they directly contribute to the

regional development of several provinces. Additionally road rehabilitation of World Bank funded

Road Sector Assistance Project (RSAP) which included the Wellawaya-Siyabalanduwa roads

and ADB funded National Highway Sector Project (NHSP) included Kandy –Mahiyangana road

which fall through Uva Province. Table 4-6 illustrates the expenditure incurred during the period

2004 to 2007 under the Highway Development program. However it should be noted that

expenditure figures of NHSP and RSAP are for the whole package implemented island-wide and

are not limited to the expenditure within the province.

Table 4-6: Financing of National Roads under Highway Development Program27


2004 2005 2006 2007

Ratnapura-Beragala-Bandarawela Rd(EDCF) 311.4 411.9 365.9 103.3

Rehabilitation of Balangoda -Bandarawela

Rd(EDCF)

20.0 965.7 1,068.50 1,387.20

Road Sector Assistance Project-WB 2.0 137.2 934.7 3,794.90

National Highway Sector Project-ADB NA NA 1.3 126.2

Badulla-Kandy Alternate Rd(Domestic) NA NA 10.4 34.5

Also, the RDA received financial aid under Pro-poor Rural Road Development Programme for

certain rehabilitation work carried out in Badulla and Monaragala Districts. Rs 24 mn was spent

under this program in year 2007. Original values of the projects for Badulla and Monaragala

districts were estimated as Rs.254.5 mn and Rs 351.7 mn respectively.


During the period of 2004 to 2007, provincial roads in both provinces were rehabilitated by the

Road Sector Development Project implemented by the Ministry of Provincial Councils & Local

Governments with financial with funding and technical assistance from the ADB. Additionally the

UP-PRDD and WP-PRDA also executed a limited amount of general road improvement &

rehabilitation functions using Provincial Specific Development Grant received from the Central

Government.


4-5


4.2.1.1 Provincial Specific Development Grant

The Central Government has financed the PRDA through PSDG for carrying out road

rehabilitation and improvement of provincial roads. The WP is entitled to the highest allocation

of PSDG-Provincial roads. Though it is mentioned that these funds are allocated for road

rehabilitation and improvement, they are actually for periodic maintenance functions such as pot-

hole patching, sand/slurry sealing or surface treatments. Table 4-7 illustrates the PSDG utilization

in Western Province.

Table 4-7: Utilization of PSDG-Provincial Roads, Western Province28

Source Rs Million

2004 2005 2006 2007 2008

Provincial Specific

Development Grants

(PSDG)- Provincial Roads

Allocation 160.0 260.0 300.0 500.0 793.8

Expenditure 135.2 216.7 247.1 271.9 651.96

Utilization (%)

4.2.1.2 Other Central Government Funds

In addition to regular funding sources such as PSDG, provincial roads are funded in ad-hoc basis

by several domestic sources such as Decentralized Capital Budget (DCB), Maga Neguma

Programme, and State Infrastructure Development Program. During the period of 2004 to 2008,

road improvements were carried out for the provincial road network in WP using several sources

shown in Table 4-8.

Table 4-8: Utilization of Other Central Government Capital Funds, Western Province29

Source Rs Million

2004 2005 2006 2007 2008

DCB- Provincial Roads Expenditure 1.47 3.31 4.20 22.98 5.03

Maga Neguma Program Expenditure 16.14

State Infrastructure

Development Program

Expenditure 158.30

Total Expenditure 1.47 161.61 20.24 22.98 5.03

28 Source: Provincial Road Development Authority, Western Province 29 Source: Provincial Road Development Authority, Western Province

4-6

4.2.1.3 Provincial Council Capital Funds

Table 4-9: Utilization of Provincial Council Capital Funds, Western Province30

Source Rs Million

2004 2005 2006 2007 2008

DDC-Programme Expenditure 27.40 133.61 3.50 2.56 -

4.2.1.4 Tsunami Affected Road Rehabilitation

Projects such as the STAART, TAARP and ADB-road rehabilitation projects invested on

rehabilitation of Tsunami affected provincial roads in Western province during the period of 2005

to 2007. Investments made under these projects are illustrated in Table 4-10.

Table 4-10: Utilization of Tsunami Affected Road Rehabilitation Funds, Western Province 31

Source Rs Million

2004 2005 2006 2007 2008

STAART32

Project Expenditure 59.63

TAARP33

Expenditure 82.80

ADB –Road Rehabilitation Expenditure 135.45

Total Expenditure N/A 59.63 135.45 82.80 N/A

4.2.1.5 Road Sector Development Project-ADB

The ADB funded Road Sector Development Project rehabilitated 800 km of provincial roads and

53 bridges in the Western, North Western, North Central and Uva provinces at an estimated cost

of Rs. 10,350 mn. Since this project was implemented only for the upgrading of the existing road

network, the projects were chosen on the basis of least amount of land acquisition and road

widening requirements. As shown in Table 4-11, the RSDP was initiated in year 2003 with an

investment of US$ 21.40 mn for the rehabilitation of 227.87 kms including several small bridges

in Western province. Project was completed in mid 2008.

30 Source: Provincial Road Development Authority, Western Province 31 Source: Provincial Road Development Authority, Western Province 32 Sri Lanka Tsunami Affected Areas Recovery Take-off 33 Tsunami Affected Area Rebuilding Project

4-7

Table 4-11: Utilization of Funds under RSDP, Western Province

34

Source Rs Million

2004 2005 2006 2007 2008

ADB funded RSDP Expenditure 198.5 637.49 945.67 704.84 270.28

4.2.2 Uva Province

4.2.2.1 Provincial Specific Development Grant

Capital Expenditure of the PRDD is facilitated through the Provincial Specific Development

Grant (PSDG) that is allocated to PC by the Treasury. Since specific funds are not available for

periodic maintenance, there is no such activity at present. It should be noted that with the very

poor condition of roads in UP, the Premix Program is a measure whereby the roads are kept in a

basic level of motorability. However since most of these roads have exceeded their design life

such programs cannot be treated as periodic interventions.

The production cost of premix is about Rs. 40,000/- per cube. At present around 5 cubes of

premix are produced per week for each division. UP has 6 divisions and therefore approximately

Rs 60 million is required for this Premix Program per year. This program is carried out by direct

labour employed by the PRDD.

In addition to the Premix Program, the PRDD uses the balance funds in PSDG for overlaying

around 10 km of road surface per year which cost about Rs.6 million per km (at 4-5 m width and

90 mm overlay thickness). This work can be considered an improvement and thus in fact the only

capital work carried out by the PRDD. Moreover, 10% of PSDG (capital expenditure) is set apart

for purchasing vehicles and machinery needed for road work. The PRDD hands over the

machinery it procures to the Provincial Mechanical Engineering Division and hires them back

when necessary at comparatively low rates for their needs for which they get priority.

The PRDD uses PSDG for several periodic maintenance functions and the premix program as

discussed before.

34 Source: Provincial Road Development Authority, Western Province

4-8

Table 4-12: Utilization of PSDG-Provincial Road, Uva Province 35

Source Rs Million

2004 2005 2006 2007 2008 Oct.

Provincial Specific

Development Grants

(PSDG)- Provincial Roads

Allocation 462.0 227.8 270.0 315.0 315.0

Expenditure 123.0 200.0 173.4 106.3 105.6

Utilization (%) 26.6 87.8 64.2 33.7 33.5

In this case also, the utilization has been very poor. The reasons cited are the same as for recurrent

expenditure. In addition when payments are delayed at the beginning of the year insufficient time

remains to award contracts and to complete them within the year for which funds have been

allocated.

4.2.2.2 Road Sector Development Project-ADB

The RSDP, similar to the project in WP during 2003 to 2008, invested US$ 23.53 mn for the

rehabilitation of 193.3 km (30 roads) and 13 packages of road structure in UP from 2007 to 2008.


During the period of 2004 to 2007, majority of the Local Authority roads in UP and WP were

rehabilitated by the domestically funded Maga Neguma and Gama Neguma programs. Moreover

the domestically funded Uva-Wellassa Development Project and the World Bank funded Road

Sector Assistance Project also rehabilitated the Local Authority road network in Uva province.

Parliamentarians in both provinces also invested on local authority roads through their

Decentralized Capital Budget allocation. In addition to those funding sources under different

Central Government ministries have been used for development of local authority roads.



WP generally received the highest amount of allocation under PSDG funding. However since

2005 the Central Government has further increased the budgetary allocation of the PSDG for

Western Province. Even though the budgetary allocations are not fully released by Treasury, there

is general evidence that there has been a high utilization of the funds that have been released even

though Table 4-13 indicates lower utilization.

35 Source: Planning Division of Road Department, Uva Province

4-9

Table 4-13: Utilization of PSDG-Local Government Roads, Western Province36

Rs. Millions

2004 2005 2006 2007

Budgetary Allocation 40.0 50.0 436.5 360.037

Actual Expenditure N/A 17.9 158.9 138.0

4.3.1.2 Decentralized Capital Budget

There are 47 elected Members of Parliament for WP. Each of these members are entitled to an

annual allocation of Rs. 5 mn as their DCB. Analysis shows that 20-25% of DCB is invested for

Local Authority roads through District Secretariats. Thereby it is estimated that around Rs 50

million is spent annually on local authority roads in Western Province. However under the DCB

funding procedures, the allocation for a road is limited to Rs 100,000 and such expenditure is not

adequate for improving an entire road. Therefore most of this expenditure is for repair or

rehabilitation or concreting of short sections of road, repair of culverts etc.

4.3.1.3 Maga Neguma

The detailed investment of Maga Neguma for WP is illustrated in Table 4-14. Imprest released

and utilization of funding in Maga Neguma project shows continuous improvement during the

period of 2004 to 2007. Priority of investment has been given to Gampaha and Kalutara Districts

due to their less urbanised nature.

36 Source: Ministry of Provincial Councils and Local Government 37 In year 2007 PSDG allocation offered for Infrastructure Development of Local Authorities including road s

4-10

Table 4-14: Maga Neguma Investment for Rural Roads in Western Province38

District

2007 Nov. 2006 2005 2004 Colom

bo

Gam

paha

Kalu

tara

Island w

ide

Colo

mb

o

Gam

pa

ha

Kalu

tara

Islan

d w

ide

Colo

mb

o

Gam

pa

ha

Kalu

tara

Islan

d w

ide

Western

Islan

d w

ide

No of Projects 212 403 244 3889 213 401 371 4926 43 64 95 1345

Ph

ysical D

etails

Target Road Length (km) 62.8 73.5 49.9 1001.0 70.0 100.0 70.0 2000.0

Ach

ieved

(km

)

Metalling & Tarring (km) 17.0 23.3 9.7 209.2 53.2 76.9 74.0 909.8 15.0 24.6 32.0 381.3

Gravelling (km) 0.3 83.9 1.3 1012.9 1.0 0.2 329.0

Motor Grading (km) 0.0 0.2 4.1 0.9 84.0

Concreting (km) 14.9 41.9 18.2 485.8 5.3 9.0 20.7 277.3 0.7 21.1

Total (km) 32.0 65.5 27.9 778.8 58.7 91.2 95.5 2284.0 16.0 24.6 32.8 731.4 15.5 600.0

Physical Progress (%) 50.9 89.1 55.9 77.8 83.9 91.2 136.5 114.2

Stru

ctures

Con

structed

Side Drains (km) 0.1 0.5 27.1 2.2 2.1 9.1 250.9 0.7 0.1 217.0

Ret. Walls (m2) 28.0 184.1 0.0 39.0 78.0 1558.9 0.1 6.2

Rock blasting & Removal. (m3.) 10.0 191.2 325.8

Bridges (Nos.) 6 19

Culverts (Nos.) 3 4 337 2 4 5 340 218

Cause ways (Nos.) 50 1 1 58 25

Fin

ancial D

etails

Allocation (Rs.Mn) 167.0 242.0 147.0 3082.0 100.0 150.0 80.0 1800.0 15.6 25.7 33.2 500.0

Expenditure (Rs. Mn.) 68.1 114.8 73.1 1487.0 89.0 115.0 111.8 1800.0 15.7 25.0 35.3 500.0 18.2 213.0

Financial Progress (%) 40.8 47.5 49.8 48.2 89.0 76.7 139.8 100.0 100.6 97.3 106.6 100.0

Beneficiary Families 2,048 4,868 2,408 57,482 2605 4496 4320 71904 889 1386 1950 34615

38 Source: Ministry of Nation Building & Estate Infrastructure

4-11

Gampaha District DS division level investment of Maga Neguma Program in 2007 is illustrated

in Table 4-15.

Table 4-15: Financing under Maga Neguma for the Rural Road in Gampaha District, 2007 39

DS Division

Road Length (km) Constructed

Structures

(nos.)

Allocation(

Rs.)

Actual

Expenditure(Rs.) Targetted Achieved

Divulapitiya 6.4 5.96

None

22,785,250 13,388,861

Katana 7.92 7.62 33,627,125 21,166,962

Minuwangoda 10.99 10.63 29,805,625 20,253,096

Mirigama 5.82 5.52 12,943,000 10,013,066

Attanagalla 12.82 9.47 24,444,875 15,128,484

Gampaha 9.32 9.13 19,825,625 13,090,172

Ja-Ela 6.45 6.4 24,039,752 22,518,077

Wattala 0.13 0.13 550,000 392,141

Mahara 10.88 9.67 24,884,125 15,145,146

Dompe 12.64 11.36 25,084,125 13,738,297

Biyagama 5.2 4.19 12,944,125 9,071,446

Kelaniya 7.94 7.22 22,705,625 17,209,804

Total 96.51 87.3

253,639,252 171,115,552

4.3.1.4 Gama Neguma

The Gama Neguma Programme initiated in 2006, had an allocation that was limited to Rs.100,

000/- per DS division amounting to a total of Rs 1.3 million for Gampaha District. Gama Neguma

Program generally invests 80-90% of its allocation on rural road rehabilitation island-wide. This

is confirmed by the fact that actual expenditure for roads in Gampaha District was Rs. 502.4 mn

from a total of Rs. 546.3 mn during 2008.

Table 4-16 illustrates Gama Neguma investment made for rural infrastructure development in the

Western Province during 2008.

39 Source: District Secretariat-Gampaha, Work performed in 2008 as a ccontinuation of work remained in 2007 is also

considered.

4-12

Table 4-16: Gama Neguma Investment for Western Province, 2008

District

Rs. Millions

Estimated

cost

Allocation Imprest

released

Expenditure

Colombo 429.76 316.54 354.40 336.47

Gampaha 727.80 695.89 535.00 546.30

Kalutara 703.03 516.36 599.30 554.27

Total 1860.59 1528.79 1488.70 1437.04

4.3.2 Uva Province


Over the last 5 years the PSDG budgetary allocation for local roads in Uva has been continuously

increased Central Government by a slight margin, though the full amounts were never fully

released. Similar to previous years, the PC did not receive the full budgetary allocation in any of

these years, due to inadequate imprest released by the Treasury. In general, it was noted that the

released imprest has been fully utilized by most of the local governments in Uva Province during

the period of 2004-2007. However a considerable increase in the annual road sector expenditure

was also observed during this period.

Table 4-17: Utilization of PSDG-Local Government Roads, Uva Province40

Rs. Millions

2004 2005 2006 2007

Budgetary Allocation 35.00 40.00 45.00 150.0041

Actual Expenditure N/A 5.26 27.32 35.80

The breakdown of expenditure provided for each of the Local Authorities in UP by Local

Authority by the PSDG and the Up-grading and Five Year Development Plan funding is given in

Table 4-18. The Road Upgrading funding pipeline was in operation in 2005 which was further

developed as a 5 year plan in 2006 wherein provinces were required to request their capital

requirements on the basis of a planned investment. However this scheme has since then been

abandoned.

40 Source: Commissioner of Local Governments, Uva Province 41 In year 2007 PSDG allocation offered for Infrastructure Development of Local Authorities including road s

4-13

Table 4-18: PSDG Investment in Local Governments, Uva Province

42

Local Government

Road Sector Expenditure (Rs.)

2005 2006 2007

PSDG Up-Grading PSDG 5 Year Plan PSDG

Badulla District 3,346,455 3,284,668 17,584,078 5,348,779 23,596,081

Badulla MC 963,013

Bandarawela UC 1,962,281 458,231

Haputale UC 977,932 94,453 973,425

Bandarawela 675,000 844,742 580,092 949,317

Haldummulla 26,366 1,132,169 278,488 1,019,946

Haputale 142,150 942,868 191,715 2,657,103

Welimada 579,622 504,475 782,855 796,393

Rideemaliadda 471,332 902,826 140,955 1,294,855

Uva Paranagama 231,573 549,259 304,059

Ella 669,084 1,498,852 99,546 4,301,817

Passara 551,328 1,495,716 735,575 1,876,229

Diyatalawa 1,791,749 998,496

Badulla 966,025 309,599 1,317,347

Sornathota 969,004 275,635 2,610,738

Mahiyangana 988,444 610,084 1,315,790

Meegahakivula 1,314,804 231,244 475,493

Hali-Ela 882,400 308,831 2,170,496

Kandeketiya 1,303,024 237,597 1,427,619

Monaragala District 1,913,031 2,950,052 9,731,236 5,861,194 12,204,780

Monaragala 52,952 1,800,175 72,000 298,691 771,528

Buttala 75,000 853,889 223,033 1,941,123

Bibile 276,934 481,612 1,019,614 667,407

Medagama 954,089 586,947 2,099,572

Madulla 480,545 961,540 1,131,881 372,894

Thanamalwila 1,027,600 966,690 2,464,167 2,309,629

Badalkumbura 970,377 145,372 2,878,615

Siyabalanduwa 1,393,511 98,978 84,110

Wellawaya 668,265 1,204,526 244,718 1,407,766

Kataragama 1,335,000 339,543

Provincial Total 5,259,486 6,234,720 27,315,314 11,209,973 35,800,861

42 Source: Commissioner of Local Governments, Uva Province

4-14

4.3.2.2 Decentralized Capital Budget (DCB):

The total allocation of DCB funds for Badulla District in year 2008 was Rs 40.35 mn. Table 4-19

gives the DS division level breakdown of DCB funding in Badulla District.

Table 4-19: Local Road Financing through DCB for Badulla District, 200843

D.S. Divisions

Financial Investment (Rs.), 2008

Allocation

available for DSD

Road Sector

Allocation Expenditure

Mahiyangana 2,945,000 1,115,000 1,101,317

Rideemaliadda 3,072,000 760,000 749,459

Meegahakivula 972,200 135,000 119,726

Kandeketiya 1,270,000 315,000 296,212

Sornathota 1,405,000 335,000 330,904

Badulla 4,585,013 875,937 577,322

Passara 2,374,425 885,925 821,087

Lunugala 1,589,750 470,000 358,723

Hali-ela 3,573,538 890,087 587,519

Ella 1,580,000 250,000 245,499

Bandarawela 2,540,507 368,500 298,183

Haputale 2,691,749 635,000 615,353

Haldummulla 1,783,375 673,375 492,715

Welimada 3,727,672 1,540,000 1,479,638

Uva Paranagama 2,006,600 330,000 329,994

Total 36,116,829 9,578,824 8,403,651

The total allocation of DCB for Monaragala District in year 2008 was Rs 25.56 mn. Table 4-20

gives the DS division level breakdown of DCB funding in Monaragala District.

Table 4-20: Local Road Financing through DCB for Badulla District, 200844

D.S. Divisions


Allocation

available for DSD

Road Sector


Monaragala 4,003,378 337,500 124,200

Badalkumbura 2,732,313 590,000 131,584

Siyabalanduwa 1,480,000 335,000 100,000

Bibile 1,070,000 240,000 0

43 Source: District Secretariat, Badulla 44 Source: District Secretariat, Monaragala

4-15

Medagama 3,902,900 285,000 63,180

Madulla 1,635,000 200,000 0

Buttala 910,000 30,000 0

Wellawaya 850,000 200,000 110,420

Thanamalwila 745,000 100,000 100,000

Sewanagla 607,500 200,000 199,773

Kataragama 170,000 N/A N/A

Total 18,106,091 2,517,500 829,157

Investment of DCB can be summarized as follows at provincial level

Table 4-21: Local Road Financing through DCB for Uva Province, 2008

District


Allocation

available for DSD

Road Sector


Badulla 36,116,829 9,578,824 8,403,651

Monaragala 18,106,091 2,517,500 829,157

Provincial Total 54,222,920 12,096,324 9,232,808

Since the parliamentarians of these two districts have not changed since year 2004, the amount of

allocation is very consistent. It is also observed that in general, Badulla and Monaragala districts

have respectively invested about 20-25% and 3-5% of total DCB for rural road sector in past

years. Therefore Table 4-20 and Table 4-21 can be used as typical illustration of DCB funding for

road sector in the two districts during the period 2004 to 2007.

4.3.2.3 Maga Neguma

The detailed expenditure of the Maga Neguma Program for UP is depicted in Table 4-22. Imprest

released and utilization of funding in Maga Neguma project is significantly higher when

compared to the other road sector projects in UP.

4-16

Table 4-22: Maga Neguma Investment for Rural Roads in Uva Province45

2007 Nov. 2006 2005 2004

District

Ba

du

lla

Mo

na

rag

ala

Islan

d w

ide

Ba

du

lla

Mo

na

rag

ala

Islan

d w

ide

Ba

du

lla

Mo

na

rag

ala

Islan

d w

ide

Uv

a

Islan

d w

ide

No of Projects 126 142 3889 75 97 4926 32 38 1345

Ph

ysi

cal

Det

ails

Target Road Length

(Year 2007) (km) 36.64 62.7 1,001.00 45 70 2000

Ach

iev

ed (

km

)

Metalling & Tarring 3.28 0.52 209.16 8.31 8.26 909.84 13.28 4.48 381.29

Gravelling 0.2 10.1 83.87 27.06 62.06 1,012.93 1.13 21.55 329.04

Motor Grading

0 7.28 33.34 83.96

Concreting 14.29 21.99 485.77 7.31 3.29 277.25 0.05 0.09 21.05

Total 17.77 32.61 778.80 49.96 106.95 2,283.98 14.46 26.12 731.38 2.55 600.00

Physical Progress

(%) 48.5 52.0 77.8 111 153 114

Str

uct

ure

s

Co

nst

ruct

ed

Side Drains (k.m) 0.77 1.07 27.08 11.07 15.89 250.86 7.91 17.64 216.95

Ret. Walls (m2) 6 184.14 9.00 40.70 1,558.86 6.2

Rock blasting &

Removal (m3.) 4.5 10.00 30.00 191.22 56 325.75

Bridges (Nos.) 1 6 19

Culverts (Nos.) 9 72 337 29.00 25.00 340 6 14 218

Causeways (Nos.) 3 20 50 2.00 16.00 58 3 25

Fin

anci

al D

etai

ls

Allocation (Rs Mn.) 94.00 84.00 3,082.00 60.00 50.00 1,800.00 10.90 10.04 500.00

Expenditure (Rs

Mn.) 37.41 59.74 1,487.03 31.55 40.93 1,800.00 11.82 11.50 500.00 1.20 213.00

Financial Progress

(%) 39.8 71.1 48.2 53 82 100 108 115 100

Beneficiary Families 1,330 2,300 57,482 901 1591 71904 734 1788 34615

Badulla District DS division level investment of Maga Neguma Programme in year 2007 is

illustrated in Table 4-23.

45 Source: Ministry of Nation Building & Estate Infrastructure

4-17

Table 4-23: Financing under Maga Neguma for the Rural Road in Badulla District, 2007 46

DS Division

Road Length (km) Constructed

Structures

(nos.)

Allocation(

Rs.)

Actual

Expenditure(Rs.

)

Targetted Achieved

Mahiyangana 1.268 1.268 4,857,329 4,857,551

Rideemaliadda 0.800 0.250 3,785,703 1,196,436

Kandeketiya 1.615 1.615 5,004,155 4,510,491

Meegahakivula 7.500 6.100 4 5,613,426 3,669,286

Sornathota 1.765 1.765 5,089,042 4,594,823

Badulla 1.750 0.932 1 6,367,900 3,396,237

Passara 3.025 3.025 4,948,455 4,829,881

Lunugala 1.050 0.850 4,320,429 3,210,618

Hali-ela 1.950 1.000 5,449,291 2,462,885

Ella 2.334 2.300 2 4,740,083 4,630,637

Bandarawela 1.862 1.862 3,999,036 3,894,689

Haputale 2.060 2.060 4,680,276 4,554,394

Haldummulla 1.000 0.900 1 3,389,502 2,872,224

Welimada 9.000 7.750 4 5,390,329 1,800,158

Uva Paranagama 0.850 0.810 3,288,409 2,114,536

Administrative cost 374,085

Total 37.829 32.487 12 70,923,365 52,968,931

4.3.2.4 Gama Neguma

In 2007 Rs 214.5 mn was spent in Badulla District under the Gama Neguma Programme for

several rural infrastructure development projects, from which 56.76 km of rural road rehabilitation

work valued at Rs. 183.6 mn was implemented during the year. Estimated cost of the Gama

Neguma programme in Monaragala District in year 2007 was Rs 124.5 mn of which around Rs

100 million can be assumed to have been invested on the road sector. The total Gama Neguma

investment in year 2008 for Uva Province is given in Table 4-24. As indicted before around 80-

90% of this is dedicated for rural road development.

46 Source: District Secretariat-Badulla, Work performed in 2008 as a continuation of work from 2007 is also

considered.

4-18

Table 4-24: Gama Neguma Investment for Uva Province, 2008

District Rs. Millions

Estimated cost Allocation Imprest released Expenditure

Monaragala 836.37 676.72 547.70 536.70

Badulla 610.39 525.07 456.00 452.50

Total 1446.76 1201.79 1003.70 989.20

4.3.2.5 Road Sector Assistant Project (RSAP)-Rural Roads

For 2008, Rs 156.7 mn was spent out of an allocation of Rs 250 mn for the pilot projects that

were implemented in Siyabalanduwa, Meegahakivula and Rideemaliadda DS divisions. Table 4-

25 shows the investments made in year 2008 under this project for each Provincial Council.

Table 4-25: Investment under RSAP for Pilot Projects in Uva Province, 2008

Pradeshiya Sabha Length(km) Project Cost (Rs. mn.)

Meegahakivula PC 5.02 50.10

Siyabalanduwa PC 14.90 54.76

Rideemaliadda PC 14.50 51.43

Total 33.32 156.70

4.3.2.6 Uva Wellassa Development Project

In year 2005, a capital fund of Rs.500 mn was given to the Ministry of Health, Nutrition and Uva

Wellassa Development for carrying out this project. Road sector allocation was only Rs. 88 mn.

The actual expenditure of whole project was Rs 392 mn for the year of 2005. In 2006, the capital

allocation was increased to Rs.506 mn by including a rural road rehabilitation component of Rs

196.5 mn offered to the Ministry of Regional Development for executing development activities a

related to the Uva Wellassa project. But Rs 446 million had to be transferred back to the Health

Ministry for the remaining work of year 2005 leaving a balance of only Rs. 60 million to be

utilized by the project for the year 2006.

4.4 Capital Expenditure and GDP

The capital expenditure on roads with respect to the provincial GDP has been analysed in this section. In doing so, we have restricted to an analysis only of the spending on national and provincial roads, since there is no exact figure for spending on the local authority roads and only estimates are possible.

4-19


\

Tables 4-26 and 4-27 give the capital expenditure in national and provincial roads in the WP. As

can be observed, the spending as a percentage of the provincial GDP varies between 0.34% to

0.56% percent for national roads and between 0.04% to 0.11% for provincial roads. This is much

less than the desired expenditure levels of around 2 to 3 percent.

Table 4-27: Capital Expenditure on Provincial Roads vs GDP in WP

4.4.2 Uva Province

Tables 4-28 and 4-29 give the capital expenditure in national and provincial roads in the UP. As

can be observed, the spending as a percentage of the provincial GDP has increased from 0.47% to

3.4% percent for national roads but decreased from 0.62% to 0.128% for provincial roads during

the period 2004 to 2007.

Table 4-26: Capital Expenditure on National Roads vs GDP in WP

Source/Program in WP Expenditure (Rs. Mn)

2004 2005 2006 2007

SIRUP 480.6 961.8 600.1 925.2

Expressway Development 462.0 739.5 3635.6 5571.2

Highway Development 3156.1 1937.3 3060.4 3221.3

Tsunami Affected Road Rehabilitation 30.9 53.0

Total Expenditure 4098.7 3638.6 7327.0 9770.7

% by Provincial GDP 0.44 0.34 0.50 0.56

% by National GDP 0.23 0.17 0.25 0.27

Source/Program Expenditure (Rs. Mn)

2004 2005 2006 2007

PSDG 135.2 216.7 247.1 271.9

Other Central Government Fund 1.5 161.6 20.2 23.0

Provincial Council Capital Fund 27.4 133.6 3.5 2.6

Tsunami Affected Road Rehabilitation 59.6 135.5 82.8

ADB funded RSDP 198.5 637.5 945.7 704.8



% by National GDP 0.02 0.06 0.05 0.03

4-20

Table 4-28: Capital Expenditure on National Roads vs GDP in UP


2004 2005 2006 2007

SIRUP 28.7 25.7 36.1 21.9

Highway Development 333.4 1514.8 2380.8 5446.1



% by National GDP 0.02 0.07 0.08 0.15

Table 4-29: Capital Expenditure on Provincial Roads vs GDP in UP


2004 2005 2006 2007

PSDG 123 200 173.4 106.3

ADB funded RSDP 349.0 349.0 349.0 349.0



% by National GDP 0.03 0.03 0.02 0.01

5-1

5 Maintenance Expenditure for Roads (2004-2007)

5.1 National Roads

All the maintenance functions are funded through Road Maintenance Trust Fund (RMTF) as

mentioned earlier. Based on a schedule prepared by assessing the network condition, a pre-defined

amount of allocation for each divisional office is released by RDA after assessing the value of

executed maintenance functions.


Annual allocation and expenditure for road maintenance in WP during the period 2004 to 2007 is

given in Table 5-1.

Table 5-1: Periodic and Routine Maintenance of National Roads (RMTF), WP47

SL Rs. Millions

2004 2005 2006 2007

Allocation 95.0 282.0 317.5 342.8

Expenditure 128.0 290.1 291.9 317.0

When required, the RDA inter-changes funds between two separate works and hence original

allocation for those works are changed. Through this criterion, in year 2004 and 2005 the RDA

has allocated additional funds for Western Province road maintenance work. Thereby the actual

expenditure in both these years was increased compared to the original allocation.

In addition to the funds from the RMTF there was a separate program in place until the year 2006

for maintaining roads rehabilitated under ADB assistance.

Table 5-2: Maintenance of roads rehabilitated under ADB assistance

Rs. Millions

2004 2005 2006

Allocation 2.00 3.27 3.27

Expenditure 0.60 0.001 0.11

The RDA separately allocates funds for bridge maintenance on its national roads. Allocation and

Expenditure under bridge maintenance funding in WP is given in Table 5-3

47 Source: Road Development Authority- Planning Division

5-2

Table 5-3: Maintenance of Bridges on National Roads (RMTF), WP48

SL Rs. Millions

2004

All Island

2005

All Island

2006 2007

UP UP

Allocation 50.0 50.0 17.0 28.0

Expenditure 38.7 46.5 5.0 8.8

5.1.2 Uva Province

As in the case of Western province, the maintenance functions are funded through Road

Maintenance Trust Fund (RMTF). Annual allocation and expenditure for road maintenance in UP

during the period 2004 to 2007 is given in Table 5-4.

Table 5-4: Periodic and Routine Maintenance of National Roads (RMTF), UP49

SL Rs. Millions

2004 2005 2006 2007

Provincial Allocation 72.2 196.0 288.5 290.8

Provincial Expenditure 72.1 104.5 145.9 167.0

Allocation and Expenditure under bridge maintenance in UP is given in Table 5-5

Table 5-5: Maintenance of Bridges on National Roads (RMTF), UP50

SL Rs. Millions

2004

All Island

2005

All Island

2006 2007

UP UP

Allocation 50.0 50.0 18.0 16.0

Expenditure 38.7 46.5 7.2 12.5


Road maintenance of Western and Uva provincial road networks are executed by the Provincial

Road Development Authority (PRDA) and Road Development Department (PRDD) respectively.

These two agencies are assisted by their divisional offices in carrying out the maintenance

functions.

48 Source: Road Development Authority-Planning Division 49 Source: Road Development Authority- Planning Division 50 Source: Road Development Authority-Planning Division

5-3


The PRDA has introduced a package based periodic maintenance scheme especially with the

intention of effective handling of the funds available to the Authority. In this program the PRDA

releases funds continuously to respective divisional offices under the number given to a specific

package until the work is completed. Selection and prioritizing of roads is done using the

software of Road Maintenance Management System (RMMS) which was introduced by ADB

funded RSDP. Execution of such work is done through local contractors selected following

government procurement guidelines.

Routine maintenance is executed by using direct labor force and machinery available with the

PRDA and its divisional offices. This work is performed under the supervision of divisional

heads.

Though the PRDA maintains an Authority Fund which is financed through authority revenue,

recurrent expenses including road maintenance is mainly covered by the finance provided by the

Provincial Council Recurrent Grant (PCRG). The Central Government Block Grant and

Provincial revenue are the sources of Provincial Council Recurrent Grant. Around 50% of

recurrent expenses of the PRDA are allocated for the maintenance of capital assets which include

road maintenance expenditure. Table 5-6 illustrates the road maintenance allocations and

expenditures incurred during the period of 2004 to 2008.

Table 5-6: Utilization of Road Sector Maintenance Funds, Western Province51

Source Rs Million

2004 2005 2006 2007 2008

PCRG- Road Maintenance

Component

Allocation 80.00 120.00 120.00 200.00 520.00

Expenditure 92.62 131.09 212.95 200.00 560.00

Utilization (%) 115.8% 109.2% 176.7% 100% 107.7%

Though imprest released by the central government in terms of block grant is poor, it is observed

in Table 5-6 that in most years, the PRDA’s expenditure is higher than budgetary allocation

provided for road maintenance. This is because the PRDA unlike and other PC is capable of

providing additional funding requirements through their Authority Fund until the allocation is

received so that work program is uninterrupted and is completed even though all the required

funds have not been allocated by the Treasury. Once the following year’s allocation is received,

the portion of expenses advanced from the Authority Fund is compensated.

51 Source: Provincial Road Development Authority, Western Province

5-4

5.2.2 Uva Province

The PRDD’s recurrent expenses through which road maintenance is carried out are met through

the Block Grant provided by the Treasury. There are no funding sources available with PRDD

such as Authority Fund in Western Province. The recurrent expenditure of the PRDD includes

personal emoluments, traveling expenses, supplies, contractual services and maintenance

expenses etc. More than 50% of the block grant provided to the PRDD is used for maintenance

expenses through which routine allocations such as for contracted labourers are made.

Table 5-7: Recurrent Expenditure of PRDD, Uva Province, 200752

Rs.’000

Recurrent Expenditure 2006 Actual 2007 Estimate 2008 Estimate

Personal Emoluments 22,594.0 35,226.0 34,268.0

Traveling Expenses 1,661.0 2,000.0 3,000.0

Supplies 1,282.0 3,669.0 3,250.0

Maintenance Expenditure 26,456.0 62,065.0 53,725.0

Contractual Services 736.0 1,296.0 2,100.0

Transfers 341.0 600.0 1,000.0

Other Recurrent Expenditure - 60.0 80.0

Total 53,070.0 104,916.0 97,423.0

By comparing the allocations for maintenance with the values appearing in Table 5-7, it is

envisaged that more than 90% of the above maintenance expenses voted for the RDD are utilized

for routine road maintenance activities. Other maintenance such as vehicles and building gets

around 10%.

Table 5-8: Utilization of Road Sector Maintenance Funds, Uva Province53

Source Rs Million

2004 2005 2006 2007 2008 Oct.

Block Grant- Road

Maintenance Component

Allocation 40.0 40.0 50.0 60.0 50.0

Expenditure 27.0 26.8 24.8 46.8 13.6

Utilization (%) 67.5 67.0 49.6 78.0 27.2

Table 5-8 shows the utilization of the PSDG by the PRDD of Uva Province. There are several

reasons attributed to the low utilization, the highest of which is recorded as 78% in 2007. These

reasons are:

(i) Since there are several programs undertaken by different provincial agencies under the

PSDG other than the roads program, the low utilization of those programs locks up funds

within the province and the Treasury does not release funds when what is already allocated

52 Source: Financial Statement 2008, Uva Provincial Council 53 Source: Planning Division of Road Department, Uva Province

5-5

to the entire province is not utilized. This problem has apparently been sorted out since

2007, as funds are now released by the Chief Secretary on the basis of bills in hand as

opposed to passing on the block allocations in their entirety.

(ii) Another reason attributed is that the Treasury does not release the imprest required to

award contracts. As such often programs cannot be awarded even though the tender is

ready. Sometimes the delay in receiving the imprest, delays the payment for work already

carried out. This leads to problems in retaining good contractors as well.

(iii)Furthermore it was pointed out that the allocations are not released for several months at

the beginning of the year. As a result, the period of time available for completion of work

is less. Delays also result in unattended damages increasing. This in turn increases the

maintenance burden.

(iv) Moreover the monsoonal rains that arrives in the months of May to September also

interferes with the work and progress in utilization is difficult when funds are not received

at the beginning of the year.


Local governments do not follow a rational policy or methodology for allocating funds for road

maintenance as discussed in Chapter 3. The funding available for local road maintenance is

studied at the Municipal Council (MC), Urban Council (UC) and Pradeshiya Sabha (PS) levels.

For this purpose, respective officials and sources in selected local governments in both provinces

were interviewed and information was collected on personal basis.


Colombo MC, Dehiwala-Mt. Lavinia MC, Horana UC, Minuwangoda UC, Divulapitiya PS and

Bulathsinghala PS were selected as samples representing the Local Authorities in WP. The

following are some of the important features and issues that were found during the

survey/interviews.

5.3.1.1 Colombo Municipal Council

• The Colombo Municipal Council maintains 370 km of asphalt/tarred roads. The type and

condition of the network is given in the following table.

Table 5-9: Type and Condition of Roads in CMC54

54 Source: Budget 2009, Badulla Municipal Council

5-6

Type of Road

Total

Kms

% of Length by

Present Road

Condition

Good Fair Poor

Metalled and Tarred (intermediate lane 4 to 6 metres) 126 30 70

Metalled and Tarred (two lanes over 6 metres) 66 40 60

Asphalt Surface (intermediate lane 4 to 6 m) 195 40 60

Asphalt Surface (two lanes over 6 m) 93 35 40 25

• Additionally, the council also maintains 2 bridges, 80 culverts, 45 signalized junctions as other

road related assets.

• Actual revenue of the council for the year 2007 was Rs 74.59 mn. It is estimated to increase

up to Rs 184 mn for the year 2009.

• Allocation for road sector periodic and routine maintenance is made through Council revenue.

Table 5-10 shows the earned revenue and its allocation for road maintenance. It should be noted that the road sector allocations for CMC exclude salaries to the employees in road sector of the Council.

Table 5-10: Colombo Municipal Council Road Sector allocation

Rs Million

2004 2005 2006 2007 2008

Revenue collected 2,619.2 3,246.4 3,988.6 3,500.4 4,063.5

Road Sector Allocation 450.6 422.6 456.4 433.2 543.4

• Road selection for periodic maintenance is mainly based on road condition measured in road

roughness and political influence.

5.3.1.1 Dehiwala-Mt. Lavinia Municipal Council

• The Dehiwala- Mt Lavinia Municipality which is in Colombo district maintains 180 km of

asphalt/tarred roads and 12 km of gravel roads. It is reported that 50% of the network in good

condition while 10% is reported to be in poor condition. Remaining 40% is in motorable

condition but not considered as being satisfactory.

• Additionally, the council also maintains 10 bridges and 150 culverts.

• Estimated recurrent revenues of the council for 2007 and 2008 are Rs. 618.6mn and Rs. 752.2

mn respectively.

• Allocation for road sector periodic and routine maintenance is made through Council revenue.

Table 5-11 shows allocation for road maintenance.

5-7

Table 5-11 : Road Maintenance Cost, Dehiwala-Mt. Lavinia Municipal Council55

Year 2004 2005 2006 2007 est.

Maintenance Cost (Rs.mn.) 21.66 17.70 30.13 30.00

5.3.1.2 Horana Urban Council

• Road network in the Horana UC in the Kalutara district consists of 17.54 km of tarred roads

and 4.60 km of concrete roads. Around 90% of the length of the total network is reported to be

in good condition. These roads are generally access roads for public and administrative places

in the city on which there are no public transport services at present.

• Additionally the council maintains 2 bridges and 10 culverts.

• Road maintenance is funded through the recurrent revenue of the council. Recurrent revenue

and its road maintenance cost component are illustrated in Table 5-11. Road maintenance

costs include maintenance of the machinery as well. However 75-80% of this maintenance

cost is spent directly on road maintenance items such as material, fuel and casual labour.

Table 5-12: Road Maintenance Cost, Horana Urban Council56

Year 2005 2006 2007 2008 est.

Recurrent Revenue (Rs.) 24,618,353 26,010,618 34,675995 60,620,832

Maintenance cost (Rs.) 4,705649 9,671146 2,384855 16,000,000

5.3.1.3 Minuwangoda Urban Council

• The road network in Minuwangoda UC in Gampaha District consists of 17.47 km of tarred

roads, 1.03 km of concrete roads and 0.5 km of gravel roads. About 65-70% of the network is

reported to be in good condition.

• Additionally, the council maintains 3 bridges and 30 culverts.

• Actual recurrent revenue of the council including Central Government grants was Rs.23.85

mn in 2006. This is estimated to increase to Rs 24.10 mn and Rs. 29.50 mn for year 2007 and

2008 respectively.

• Road maintenance expenditure during the period of 2004 to 2007 is as follows. These amounts

include material, fuel and casual labour costs only.

55 Source: Haputale Urban Council 56 Source: Horana Urban Council

5-8

Table 5-13: Road Maintenance Cost, Minuwangoda Urban Council57

Year 2004 2005 2006 2007 est. 2008 est.

Maintenance cost(Rs.) 563,151 1,443,421 158,010 295,000 305,000

• Decrease in road maintenance financing is observable due to road condition improvement.

5.3.1.4 Divulapitiya Pradeshiya Sabha

• The road network in the Divulapitiya PS in Gampaha district consists of 55.68 km of tarred

roads and 284.06 km of gravel roads according to records prepared before concreting of roads

in 2006. In recent years 10-15 km of the network has been concreted. Overall, about 55-60%

of the network is reported to be in good condition.

• Actual recurrent revenue of the council including grants received from Central Government

was Rs.62.67 mn in 2007. This is estimated to increase to Rs 77.95 mn in 2008 including a Rs.

10 mn domestic loan to purchase heavy machinery.

• Rs 2.39 mn was spent for road maintenance in 2007. This has increased to Rs. 6.75 mn in

2008. Additionally, the PS received a Rs. 4.1 mn allocation for pot hole patching in year 2008.

5.3.1.5 Bulathsinhala Pradeshiya Sabha

• Since Bulathsinhala Pradeshiya Sabha in Kalutara district has been established more recently,

the length of the road network is yet to be finalized. But it is estimated to be about 90 km in

which 70-75% of the length is gravel surfaced. Most of roads are in poor condition due to

regular flooding in the area.

• The actual revenue of the council including Central Government grants was Rs. 29.56 mn in

2007. This is estimated to increase up to Rs 70.20 mn for year 2009.

• Funding for road maintenance is allocated through the recurrent revenue of the Pradeshiya

Sabha.

• Road maintenance expenditure during the period 2005 to 2007 is as follows. These amounts


Table 5-14: Road Maintenance Cost, Bulathsinghala Pradeshiya Sabha58

Year 2005 2006 2007

Maintenance cost (Rs.) 176,879 98,028 500,000

57 Source: Horana Urban Council 58 Source: Bulathsinghala Urban Council

5-9

5.3.2 Uva Province

Badulla MC, Bandarawela UC, Haputale UC, Passara PS and Monaragala PS were selected as

samples for representing Uva Provincial Local Governments. Following are the important issues

raised in terms of local road sector financing.

5.3.2.1 Badulla Municipal Council

• Badulla Municipal Council maintains 47.54 km of asphalt/tarred roads, 21.53km of gravel

roads and 14.57 km of other roads. About 75% of the network is presently reported to be in

good condition.

• Additionally, the council also maintains 0.57 km of footways, 73.60 km of drains, 170 culverts

and 13 bridges.

• Actual revenue of the council was Rs 74.59 mn for the year 2007. It is estimated to increase to

Rs 184 mn in 2009.

• The Council Budget for 2009 for roads is as shown follows.

Table 5-15: Head of Roads of Badulla Municipal Council Budget59

Category 2007 Actual

(Rs.)

2008 Est.

(Rs.)

2009 Est.

(Rs.)

Recurrent Expenditure

(Personnel emoluments, Travel expenses

supply and equipments etc.)

14,329,984 20,711,000 30,851,000

Capital Expenditure - 11,200,000 16,795,000

(Material, equipment and road development)

Total 14,329,984 31,911,000 47,646,000

• Recurrent expenditure in year 2007 can be considered as routine maintenance expenditure

unless there are funds for capital work.

• In year 2008 and 2009 funding allocations were Rs 31.9mn and Rs 47.65 mn respectively.

These were available for periodic maintenance of roads by the Council.

5.3.2.2 Haputale Urban Council

• Road network of Haputale UC in Badulla district consists of 5 km of tarred roads, 1.26 km of

concrete roads and 0.6 km of gravel roads.

• Actual recurrent revenue of the council including grants from central Government was

Rs.13.26 mn in 2006. This is estimated to increase to Rs 15.64 mn and Rs. 16.59 mn for year

2007 and 2008 respectively.

59 Source: Budget 2009, Badulla Municipal Council

5-10

• Road maintenance expenditure during the period of 2004 to 2007 is as follows. These amounts


Table 5-16: Road Maintenance Cost, Haputale Urban Council60

Year 2004 2005 2006 2007 2008

Maintenance cost(Rs.) 10,140 51,263 16950 - 10,094

5.3.2.3 Bandarawela Urban Council

• The road network in the Bandarawela UC in Badulla district is made up of 15.6 km of

tarred roads, 1 km of concrete roads and 4 km of earth roads. About 80% of the network is

reported to be presently in good condition

• Road maintenance expenditure during the period of 2004 to 2007 is as follows. These

amounts include material, fuel and casual labour costs only.

Table 5-17: Road Maintenance Cost, Bandarawela Urban Council61

Year 2004 2005 2006 2007 2008

Maintenance cost(Rs. mn) 1.75 6.15 est. N/A 3.82 9.5 est

5.3.2.4 Passara Pradeshiya Sabha

• The road network in Passara PS in Badulla district consists of 90 km of tarred roads, 113

km of gravel roads, 2 km of concrete roads and 34.2 km of earth roads. Presently 60% of

the network is reported to be in good condition.

• Actual recurrent revenue of the Pradeshiya Sabha including grants from Central

Government was Rs 34.86 mn in 2007. The estimated revenue for year 2009 is Rs 44 mn.

• Road maintenance expenditure during the period of 2004 to 2007 is as follows. These

amounts include material, fuel and casual labour costs only.

Table 5-18: Road Maintenance Cost, Passara Pradeshiya Sabha62

Year 2004 2005 2006 2007 2008

Maintenance Cost (Rs. mn) 3.23 3.41 4.15 6.18 2.79

60 Source: Haputale Urban Council 61 Source: Bandarawela Urban Council 62 Source: Passara Pradeshiya Sabha

5-11

5.3.2.5 Monaragala Pradeshiya Sabha

• The road network in the Monaragala PS in Monaragala district consists of 56.2 km of

tarred roads, 362 km of gravel roads and 13.7 km of concrete roads. Approximately 40%

of the network in good condition.

• Actual revenue of the Pradeshiya Sabha was Rs 27.99 mn in 2007. This includes revenues

collected by the Pradeshiya Sabha and Grants received from the Central Government.

• Rs 2.31 mn and Rs 2.85 mn has been spent for road maintenance in 2007 and 2008

respectively.

6-1

6 Analysis of Expenditure

This chapter provides selected analysis of the expenditure patterns as stipulated in the Terms of Reference.

6.1 Trends (2004-2007)

The analysis of trends in expenditure for each of the two provinces for the period 2004 to 2007 is given in Tables 6-1 and 6-2. In calculating total revenues and expenditure of the Local Authorities, the per km costs for the sample councils and PSs have been used to estimate a total for the entire province. Moreover, the expenditure reported in these tables, do not include spending on RDA projects that span across more than one province.

Table 6-1: Total Expenditure on all Roads in Western Province (2004-2007)

Description Source of Funding

Rs. Million

2004 2005 2006 2007

Maintenance Expenditure 745.7 938.8 1027.4 1032.6

National Roads RMTF 132.3 295.3 291.9 317.0

Provincial Roads Block Grant 92.6 131.1 213.0 200.0

Local Authority Roads Colombo Municipal Council Revenue 135.2 126.8 136.9 130.0

Revenue of Municipal/Urban Councils 321.5 321.5 321.5 321.5

Pradeshiya Sabha Revenue 64.1 64.1 64.1 64.1

Capital Expenditure 921.4 2324.7 2489.5 2764.3

National Roads SIRUP 480.6 961.8 600.1 925.2

Provincial Roads PSDG-Provincial Roads 135.2 216.7 247.1 271.9

Other Central Government Fund 1.5 161.6 20.2 23.0

Provincial Council Fund 27.4 133.6 3.5 2.6

Tsunami road rehabilitation 59.6 135.5 82.8

RSDP 198.5 637.5 945.7 704.8 Local Authority Roads PSDG N/A 17.9 158.9 138.0

DCB 60.0 60.0 60.0 60.0

Maga Neguma 18.2 76.0 315.8 256.0

Gama Neguma 2.7 300.0

Total 1667.1 3263.6 3516.9 3796.9

In the case of the WP the following conclusions can be made:

1. Central Government funding of local roads is highly inconsistent.

2. There are constant changes to development programs and institutions handling

development and implementation of such development of rural roads.

3. The maintenance expenditure has increased at 8.5% p.a. from Rs 745 million in 2004 to Rs

1032.6 million in 2007. Since construction cost inflation during this period has been

around 15% p.a. it has been in effect a decrease in real terms.

6-2

4. The capital expenditure has increased at 31.6% p.a. from Rs 921.2 million in 2004 to Rs

2,764 million in 2007. There has been a real term increase in capital expenditure.

5. However the capital expenditure has been mostly in the foreign funded SIRUP program

and the ADB funded RSDP project as well as in the concreting of local authority roads

under the Maga Neguma program.

6. The value of capital work under the RDAs work programs for projects that are not

considered under the works project but under one of its PMUs such as Alternate Trunk

Roads, Expressway Projects as well as Flyovers and Bridges have not been included in this

analysis. The value of the work executed under these projects varies sharply from year to

year and does not demonstrate a trend. On average there is spending of between Rs 3 to 5

billion per year in the WP on such projects, all of which are foreign funded.

Table 6-2: Total Expenditure on all Roads in Uva Province (2004-2007)

Description Source

Rs. Million

2004 2005 2006 2007

Maintenance Expenditure 154.0 187.1 228.5 276.9

National Roads RMTF 76.4 109.7 153.1 179.5

Provincial Council

Roads Block Grant 27.0 26.8 24.8 46.8

Local Authority Roads Municipal Council Revenue 12.0 12.0 12.0 12.0

Urban Council Revenue 3.1 3.1 3.1 3.1

Pradeshiya Sabha Revenue 35.5 35.5 35.5 35.5

Capital Expenditure 540.3 641.7 786.8 1,285.4

National Roads SIRUP 28.7 25.7 36.1 21.9

Provincial Council

Roads PSDG 123.0 200.0 173.4 106.3

RSDP 376.3 376.3 376.3 376.3

Local Authority Roads PSDG N/A 5.3 27.3 35.8

DCB 11.1 11.1 11.1 11.1

Maga Neguma 1.2 23.3 72.5 97.2

Gama Neguma 2.0 283.6

RSAP 156.7

Uva Wellassa 88.0 196.5

Total 694.3 828.8 1,015.2 1,562.3

In the case of the UP the following conclusions can be made:

1. Central Government funding of local roads is highly inconsistent.

2. There are constant changes to development programs and institutions handling

development and implementation of such development of rural roads.

3. The maintenance expenditure has increased at 15.8% p.a. from Rs 154 million in 2004 to

Rs 276 million in 2007. Since construction cost inflation during this period has been

around 15% p.a. here has not been an increase in real terms.

6-3

4. The capital expenditure has increased at 22.5% p.a. from Rs 694 million in 2004 to Rs

1,562 million in 2007. There has been a real term increase in capital expenditure.

5. However the capital expenditure has been mostly in the concreting of local authority roads

under the Maga Neguma, Maga Neguma and other programs.

6. The value of capital work under the RDAs work programs for projects that are not

considered under the works project but under one of its PMUs such as improvements to

the truck roads have not been included in this analysis. The value of the work executed

under these projects varies sharply from year to year and does not demonstrate a trend. On

average there is spending of around Rs 500 per year in the UP on such projects, all of

which are foreign funded.

6.2 Analysis of Maintenance Expenditure


The National Road network including its bridges is maintained through the RMTF allocation. The

following table shows trends in road maintenance expenditure during the period of 2004 to 2007.It

can be seen from Table 6-3 that the per km cost as well as the per capita cost on the network has

increased at around 35% p.a. well ahead of construction cost inflation for this period. However as

noted in the previous section also, the per km and the per capita cost for both WP and UP has

increased at lesser rates and below that required to indicate an increase in real economic terms.

In terms of maintenance funds spent per road km in the province irrespective of road category, as

well as spending per capita, both WP and UP fall significantly below the national average.

6-4

Table 6-3: Maintenance Financing of National Roads through RMTF

Year 2004 2005 2006 2007

Na

tio

nal

Expenditure (Rs.) 1,034,050,000 1,789,119,000 2,932,665,000 3,409,850,000

Expenditure/km (Rs./km)

88,599.95 153,296.12 251,277.95 292,164.34

Expenditure/ Capita (Rs.) 55.15 95.42 156.41 181.86

Wes

tern

Expenditure(Rs.) 132,300,000 295,300,000 291,900,000 317,000,000

% by National 12.79 16.51 9.95 9.30

Expenditure/km (Rs./km) 87,557.91 195,433.49 193,183.32 209,794.84

Expenditure/Capita (Rs.) 24.59 54.88 54.25 58.91

Uva

Expenditure(Rs.) 76,400,000 109,700,000 153,100,000 179,500,000

% by National 7.39 6.13 5.22 5.26

Expenditure/km (Rs./km) 66,377.06 95,308.43 133,014.77 155,951.35

Expenditure/Capita(Rs.) 64.91 93.20 130.08 152.51


Provincial Roads are annually funded by block grants provided by the central government. Table

6-4 shows the trends in maintenance expenditure of both WP and UP when compared with North

Central and Eastern Provinces. It can be seen that WP and UP are two provinces that have seen an

increased in maintenance funding for provincial roads over the period 2004 to 2007 when

compared to NCP and EP, two provinces which have seen a reduction.

6-5

Table 6-4: Maintenance Financing of Provincial Roads through Block Grant

Year 2004 2005 2006 2007

No

rth

Cen

tral Expenditure 30,800,000 19,400,000 73,800,000 15,900,000

Expenditure/km 15,786.78 9,943.62 37,826.76 8,149.67

Expenditure/ Capita 26.92 16.96 64.51 13.90

Wes

tern

Expenditure 92,620,000 131,090,000 212,950,000 200,000,000

% by National

Expenditure/km 46,896.20 66,374.68 107,822.78 101,265.82

Expenditure/Capita 17.21 24.36 39.57 37.17

Uv

a

Expenditure 27,000,000 26,800,000 24,800,000 46,800,000

% by National

Expenditure/km 15,508.33 15,393.45 14,244.69 26,881.10


East

ern

Expenditure 31,700,000 15,900,000 40,900,000 19,800,000

% by National

Expenditure/km 28,870.67 14,480.87 37,249.54 18,032.79


6.2.3 Local Authority Roads

Local Authority roads are maintained using revenue of the respective local governments. Since

maintenance expenditure on roads differs drastically between MCs, UCs and PSs, the following

summary table of approximate averages has been prepared based on the samples collected.

Table 6-5: Road Maintenance of Local Authorities Financed through Revenue Collected

(averages)

Year Western Uva

Rs per year Rs per km Rs per year Rs per km

Colombo Municipal Council 132,200,000 275,417

Other MCs in WP 146,318,125 120,625

Badulla Municipal Council 12,000,000 143,472

Urban Councils 175,134,150 153,348 2,811,118 102,371

Pradeshiya Sabha 64,144,427 7,059 35,493,010 8,197

6-6

It can be observed that the maintenance spending across local authorities appear to be fairly

rational. The expenditure of heavier trafficked roads in CMC area is over Rs 275,000 per km,

while other MCs and UCs both in WP and in UP are in the range of between Rs 100,000 to Rs

150,000 per km. In the case of PSs, the expenditure on maintenance is much lower at between Rs

7,000 to 8,000 per km.

6.3 Analysis of Capital Expenditure


Provincial level improvement and rehabilitation of the national road network is regularly carried

out under annual allocation made under SIRUP. Table6-6 shows that SIRUP funding has

increased significantly over the period 2004 to 2007 at around 38% p.a. which is well above

inflation rate. However this increase in WP has been much below the national average and just

above inflationary increases, while that of UP has been negative.

Table 6-6: Capital Expenditure on National Road under SIRUP

Year 2004 2005 2006 2007

Nati

on

al

Expenditure 1,107,619,000 2,507,048,000 3,001,253,000 4,581,821,000

Expenditure/km 94,903.52 214,810.04 257,154.74 392,581.70

Expenditure/ person 59.07 133.71 160.07 244.36

Wes

tern

Expenditure 480,600,000 961,800,000 600,100,000 925,200,000

% by National 43.39 38.36 19.99 20.19

Expenditure/km 318,067.50 636,532.10 397,154.20 612,309.73


Uv

a

Expenditure 28,700,000 25,700,000 36,100,000 21,900,000

% by National 2.59 1.03 1.20 0.48

Expenditure/km 24,934.84 22,328.41 31,364.03 19,026.93



The capital expenditure of the provincial road network is funded mostly through the PSDG-

provincial road component. Though there have been several other sources of capital funding such

as STAART, DCB, Maga Neguma projects providing financial assistance to provincial roads

during the last five years, they are not available on a regular basis. Therefore expenditure

assessment is carried out with respect to the regular funding source of PSDG. Table 6-7 shows

6-7

that the expenditure levels vary sharply between provinces. Comparing with NCP and EP, it is

seen that in 2007, WP has the highest allocation per km, while UP has the lowest even though UP

had the highest in 2004. In terms of per capita spending NCP, a province with low population

density has high expenditure per person, while WP becomes the lowest.

Table 6-7: Capital Expenditure on Provincial Road under PSDG

Year 2004 2005 2006 2007

No

rth

Cen

tral Expenditure 112,500,000 170,200,000 192,800,000 170,000,000

Expenditure/km 57,662.74 87,237.31 98,821.12 87,134.80

Expenditure/ Capita 98.34 148.78 168.53 148.60

Wes

tern

Expenditure 135,200,000 216,700,000 247,100,000 271,900,000

% by National

Expenditure/km 68,455.70 109,721.52 125,113.92 137,670.89


Uva

Expenditure 123,000,000 200,000,000 173,400,000 106,300,000

% by National

Expenditure/km 70,649.05 114,876.51 99,597.93 61,056.86


East

ern

Expenditure 40,000,000 75,300,000 56,200,000 85,400,000

% by National 7.39 6.13 5.22 5.26

Expenditure/km 36,429.87 68,579.23 51,183.97 77,777.78


6.3.3 Local Authority Road

Local Authority roads are also funded by PSDG-local authority road component on a regular

basis. This funding is analyzed in Table 6-8.

7-8

Table 6-8: Capital Expenditure on Local Road under PSDG

Year 2005 2006 2007

Na

tio

nal

Expenditure 193,600,000 488,246,000 401,974,000

Expenditure/km 2,994.17 7,551.09 6,216.83

Expenditure/ Capita 10.33 26.04 21.44 W

este

rn Expenditure 17,900,000 158,900,000 138,000,000

% by National 9.25 32.55 34.33

Expenditure/km 1,501.30 13,327.18 11,574.27

Expenditure/Capita 3.33 29.53 25.65

Uv

a

Expenditure 5,260,000 27,320,000 35,800,000

% by National 2.72 5.60 8.91

Expenditure/km 1,182.82 6,143.47 8,050.37

Expenditure/Capita 4.47 23.21 30.42

In addition local authority roads are now regularly funded by DCB, Maga Neguma and Gama

Neguma Programs. Maga Neguma and Gama Neguma investments continuously increased

significantly in following years. Since this funding is only starting it is difficult to show any trends

in the expenditure.

7 Conclusions & Recommendations The following summary conclusions and recommendations are made:

1. The period of review from 2004 to 2007 shows a sharp increase in capital expenditure in

both WP and UP for improvement and rehabilitation of roads at all three levels of the road

network.

2. Most of this increase has come from increased donor agency funding for the national and

provincial road sector as well as domestic and donor funding for rural roads.

3. Government has taken specific policy intervention to improve rural accessibility by

concreting sections of rural roads across the country. This expenditure has increased

several-fold since 2004. As a result capital expenditure on rural roads has increased per

capita and it has also become more equitable across the country.

4. Provincial roads continue to depend heavily on funding from Central Government. Only

the Western Province spends substantially on its provincial road network.

7-9

5. The WP has setup an Authority Specific Fund which is used as an advance account to

complete projects when Central Government Funds get delayed. In other provinces most

allocated funds do not get fully utilized due to delays in receiving imprest.

6. There is no evidence that capital expenditure on roads at any level of the network either

from donor or domestic funding is implicitly tied to specific developmental projects or

plans.

7. Overall maintenance spending though increased in current value, demonstrates a reduction

per km in real terms. Even the Road Maintenance Trust Fund, the contribution to which

has not been increased since its inception, has not been able to achieve this due to its

management intervention authority being limited to being only an account.

8. The maintenance of national roads are based on an assessment of condition and the RDA

is able to follow general routine maintenance schedules under the proper technical

applications and supervision.

9. The maintenance spending on roads in some provinces appear to have reduced sharply in

real terms. This demonstrates the absence of a minimum level of funding for roads which

should be ensured as in the case of other expenses such as salaries etc. Hence it is

recommended that maintenance of roads be included in budgets as a recurrent item.

10. The irregularity of maintenance funding results in even allocated funds been under

utilized. This does not lead to preventative maintenance. Hence all maintenance

interventions are made more expensive. Such inconsistent funding patterns leads to poor

efficiency of public expenditure as scientifically determined maintenance schedules cannot

be observed so that cost are kept low and serviceability at an optimum. Only the WP has

developed an assessment based maintenance expenditure plan.

11. The general capacity at provincial level to supervise new constructions or maintenance is

very low. A high proportion of cadre positions for technical staff remain vacant or are

filled by people with less than stipulated qualification or experience. There is also no

consistency across provinces on the equipment available for provincial road works.

7-10

12. The on going capital spending at all levels of the road network namely new expressways

and rehabilitation of national roads; rehabilitation of provincial roads and the concreting of

sections of rural roads would entail heavy maintenance. There does not seem to be

increased maintenance provision for the higher investments.

13. Funding of urban local authorities seems to be ignored by both donor as well as domestic

funding. This is likely due to the perception that urban areas are capable of raising their

own funds for maintenance. However analysis shows that even the bigger urban local

authorities can only raise 5 to 15% of the expenditure. Smaller UCs in Uva for example

are unable to raise even 1%. These urban local authority roads are very much dependent

on DCB funding.

7-11

Appendix I – Survey Forms

7-12

Public Expenditure Review on Road Sector-Local Authority Roads

Interviewee: Commissioner of Provincial Council (Steering agent of Gvnt. funds for Local

Authorities)

Objective: Identifying sources, level and trends in funding for local authority roads

1. Provincial Council:

2. Length of Road Network(if available)

3. Sources of funding available for Local Authority roads (Through Provincial Council for maintenance

and improvements-domestic, foreign, revenue etc.)

i. Municipal Councils

ii. Urban Councils

iii. Pradeshiya Sabhas

4. Funding for Road maintenance (2004-2008)

Source Rs Million

2004 2005 2006 2007 2008

a) Allocation

Expenditure

b) Allocation

Expenditure

c) Allocation

Expenditure

5. What is the Criterion of fund allocation for road maintenance for local authorities?

6. Funding for Road Construction/improvement (2004-2008)

Source Rs Million

2004 2005 2006 2007 2008

a) Allocation

Expenditure

b) Allocation

Expenditure

c) Allocation

Expenditure

Local Authority

Road Length (Kms)

Metal/Tar Gravel Concrete Total

Municipal Council

Urban Council

Local Authority

7-13

7. What is the Criterion of fund allocation for road construction/improvement for local authorities?

8. Is there a method for assessing the utilization of fund allocated through Provincial Budget?

9. Are there any local road improvement projects running directly under ministries other than M/PC &

LG? (Gama Neguma-Nation Building, Maga Neguma-Regional Development etc.). If so mention the

project, funding sources (domestic/Foreign) under each executing ministries. Also mention the role of

Authority in such projects

10. Documents to Collect

I. Provincial Budgets (2004-2008)

II. Any other sources of information relevant

7-14

Public Expenditure Review on Road Sector-Local Authority Roads

Interviewee: Local Authority (Executing agency of local road maintenance, construction &

improvement)

Objective:

Identifying the nature of the network,

Identifying sources, level and trends in funding for local authority roads

Identifying institutional arrangement, Personnel & Operational capacity

1. Provincial Council & Local Authority:

2. Road Length, Type and Condition

Type of Road

Total

Kms

% of Length by

Present Road

Condition

Good Fair Poor

Gravel/Earth Road (Single Lane – 2-4 metres)

Gravel/Earth Road (Intermediate Lane – 4-6 m)

Gravel/Earth Road (Two Lane – Over metres)

Metalled and Tarred (single Lane 2 to 4 m)

Metalled and Tarred (intermediate lane 4 to 6 lanes)

Metalled and Tarred (two lanes over 6 metres)

Asphalt Surface (intermediate lane 4 to 6 m)

Asphalt Surface (two lanes over 6 m)

DBST Surface (Single lange 4 to 6m)

3. What other road assets do you maintain?

a) Bridges (number) -

b) Culverts (approximate number) –

c) Traffic Signalized Junctions-

d) Other-

4. Funding handled by Authority for local road maintenance (channelled through PC and District

Secretariat)(2004-2008)

Source Rs Million

2004 2005 2006 2007 2008

a) Allocation

Expenditure

b) Allocation

Expenditure

7-15

c) Allocation

Expenditure

5. What is the road selection criterion maintenance?

6. Funding handled by Authority for local Road Construction/improvement (channelled through

PC and District Secretariat)(2004-2008)

Source Rs Million

2004 2005 2006 2007 2008

a) Allocation

Expenditure

b) Allocation

Expenditure

c)DCB Allocation

Expenditure

7. What is the road selection criterion for new construction/improvement?

8. Allocation for road sector through revenue of Local Authority.

Rs Million

2004 2005 2006 2007 2008

Revenue collected

Road Sector Allocation

9. Are there any local road improvement projects running directly under ministries other than

M/PC & LG? (Gama Neguma-Nation Building, Maga Neguma-Regional Development etc.).

If so mention the project, funding sources (domestic/Foreign) under each executing ministries.

Also mention the role of Authority in such projects

10. Capacity of the Local Authority

I. Personnel

7-16

Employees Cadre Available Remarks

Engineers

Technical Officers

Draughtsmen

Clerical

Quantity Surveyor

Computer Operator/Data Entry Assistants

II. Operational(Construction equipments and machineries)

III. Other Supporting Assets(Office equipment & machineries)

11. Method of construction and maintenance of roads(by direct labor or contracting)

12. Cost estimates per km

Per km

Metal/Ta

r

Gravel Concrete Total

New construction

Improvement/Rehabilitation

Periodic Maintenance

Routine Maintenance


I. Budgets of Local Authority (2004-2008)

II. Road list

III. Organizational Chart

IV. Any other sources of information relevant

7-17

Public Expenditure Review on Road Sector-Provincial Roads

Interviewee: Provincial Road Development Authority

1. Name of Province:

2. Total km of Provincial Roads:

3. Capital Expenditure Allocated for Provincial Roads (2004-2008):

Source Rs Million

2004 2005 2006 2007 2008

Through Finance Commission

a) Criteria Based Grants

b) Matching Grants

c) Project Specific Development

Grants (PSDG)

d) Other

Through Other Central Govt Sources

Provincial Council Funds

Direct Foreign Funding

7-18

4. Capital Expenditure Utilized for Provincial Road 2004-2008:

Source Rs Million

2004 2005 2006 2007 2008

Through Finance Commission

a) Criteria Based Grants

b) Matching Grants

c) Project Specific Development

Grants (PSDG)

d) Other

Through Other Central Govt Sources

Provincial Sources

Direct Foreign Funding

5. Funds for Maintenance Available

Source Rs Million

2004 2005 2006 2007 2008

a)

b)

c)

6. Funds for Maintenance Utilized

Source Rs Million

2004 2005 2006 2007 2008

a)

b)

c)

7. Road Type and Condition

7-19

Type of Road

Total

Kms

% of Length by

Present Road

Condition

Good Fair Poor









8. Capacity of the Road Development Authority/Department


Engineers

Technical Officers

Draughtsmen

Clerical

Quantity Surveyor

Computer Operator/Data Entry

Assistants

9. What was your salary bill for 2007?

10. What other highway assets do you maintain?

e) Bridges (number)

f) Culverts (approximate number)

g) Other

11. Do you have a Design Office.? Yes/No

12. Do you have an approved method for selecting roads for rehabilitation or repair? Yes/No

13. How many computers do you have in working condition?

14. What proportion of the maintenance work is done in house?

15. What proportion of capital works is done in house?

7-20

16. What is the regular labour strength?

17. Give typical expenditure % as breakdown for maintenance activities

• Material –

• Labour –

• Equipment –

• Other

• Taxes

18. Give the different sources of funding raised as revenue by the Provincial Council by source

which are based on the use of transport highway facilities.

Source Rs Million

2004 2005 2006 2007 2008

a)

b)

c)

19. Details of foreign funded projects running under M/PC & LG

20. Are there any provincial road improvement projects running directly under ministries other

than M/PC & LG? (Gama Neguma-Nation Building, Maga Neguma-Regional Development

etc.). If so mention the project, funding sources (domestic/Foreign) under each executing

ministries. Also mention the role of Authority in such projects

7-21

Public Expenditure Review on Road Sector-National Roads

Interviewee: Road Development Authority (Executing agency of national road maintenance,

construction, rehabilitation & improvement)

Objective:

Identifying the nature of the network,

Identifying sources, level and trends in funding for national roads

Identifying institutional arrangement, Personnel & Operational capacity

1. Province:

2. Road Length, Type and Condition

Type of Road

Total

Kms

% of Length by

Present Road

Condition

Good Fair Poor









DBST Surface (Single lange 4 to 6m)

3. What other road assets do you maintain in the province?

h) Bridges (number) -

i) Culverts (approximate number) –

j) Traffic signalized junctions-

k) Other-

4. Funding for routine maintenance of national roads (2004-2008)

Rs Million

2004 2005 2006 2007 2008

Allocation

Expenditure

5. Funding for periodic maintenance of national roads (2004-2008)

7-22

Rs Million

2004 2005 2006 2007 2008

Allocation

Expenditure

6. What is the road selection criterion periodic maintenance?

7. Funding for new road/road assets(bridges, culverts etc.) construction (2004-2008)

Project Funding

Source

Rs Million

2004 2005 2006 2007 2008

Allocation

Expenditure

Allocation

Expenditure

Allocation

Expenditure

8. Funding for road/road assets rehabilitation and improvement(2004-2008)

Project Funding

Source

Rs Million

2004 2005 2006 2007 2008

Allocation

Expenditure

Allocation

Expenditure

Allocation

Expenditure

9. Are there any national road improvement projects running under different ministries other

than MOH? (Gama Neguma-Nation Building, Maga Neguma-Regional Development etc.). If

so mention the project, funding sources (domestic/Foreign) under each executing ministries.

Also mention the role of Authority in such projects

10. What is the road selection criterion for rehabilitation and improvements?

11. Capacity of the Road Development Authority-Provincial Office

I. Personnel


7-23

Engineers

Technical Officers

Draughtsmen

Clerical

Quantity Surveyor

Computer Operator/Data Entry Assistants

II. Operational(Divisional offices ,Construction equipments and machineries)

III. Other Supporting Assets(Office equipment & machineries)

12. Method of construction and maintenance of roads(by direct labor or contracting)

13. Cost estimates per km

Per km

Metal/Ta

r

Gravel Concrete Total

New construction

Improvement/Rehabilitation

Periodic Maintenance

Routine Maintenance


I. Road list in each province

II. Organizational Chart-Provincial Office & Head office

III. Any other sources of information relevant

7-24

Appendix II – Geo Referenced Maps

Provincial Public Expenditure on Roads Western & Uva Province … · 2015-03-18 · Western & Uva...

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