Service Delivery at Local Levels: Transport & Highways

Amal S. Kumarage, Professor in Civil Engineering, Department of Transport & Logistics Management, University of MoratuwaChairman, National Transport Commission, Sri Lankakumarage@sltnet.lk

Workshop on Service Delivery and Provincial Budgeting for Promoting Pro-Poor Growth and Development in Sri Lanka

Institute of Policy StudiesHotel Amaya Lake, Dambulla

November 16-18, 2007

Transport the #1 Constraint at Local Level

Sri Lanka- best in transport networks in SAARC…?

Road Density Rail Density

Country km per sq

km

km per 1000

population

km per sq

km

km per 1000

population Nepal 0.13 0.71 Pakistan 0.33 1.73 0.010 0.052 Pakistan 0.33 1.73 0.010 0.052 Bangladesh 0.95 1.01 0.019 0.021 Bhutan 0.20 5.71 Maldives India 1.01 2.78 0.019 0.053 Sri Lanka 1.61 5.53 0.024 0.081

PS/ In addition Sri Lanka also has the highest ratio of buses and

Four wheeled vehicles per capita in the region

Transport for Local Development

Connectivity to

• Commercial Centres

• Logistics Centres• Logistics Centres

• Transport Nodes (Ports and Airports)

Road

Level

Typical Connectivity Examples Threshold

Journey

Speed

Level 1

2nd Order to 1st Order

Commercial: Matara- Colombo

Tourism: Anuradapura – Kandy

Regional: Jaffna-Anuradapura

Social: Badulla-Kataragama

Agricultural: Mahiyangana- Dambulla

Transport Network: Kandy- Katunayake

50 kms/hr

Level 2

3rd Order to 2nd Order

Commercial: Kurunegala- Chilaw

Tourism: Pottuvil -Batticaloa

Regional: Trinco- Batticaloa

Social: Pallavi- Talawila

40 kms/hr

Social: Pallavi- Talawila

Agricultural: Welimada- Bandarawela

Transport Network: Yakkala- Hanwella

Level 3

4th Order to 3rd Order

Commercial: Anamaduwa-Puttalam

Tourism: Kirimetiya –Yala

Agricultural: Weeraketiya-Middeniya

Transport : Rambukkana –Mawanella

35 kms/hr

Level 4 5th Order to 4th Order Mostly Provincial Council Roads

30 kms/hr

Level 5 6th Order to 5th Order Mostly Pradeshiya Sabha Roads 25 kms/hr

Provincial GDP per Capita by

Travel Time from Colombo

NCP

CP

WP

10,000

12,000

14,000

16,000

GD

P p

er

Cap

ita

Sab Uva

NWP

SP

CP

0

2,000

4,000

6,000

8,000

0 2 4 6 8 10 12

Travel Time from Colombo (Hrs.)

GD

P p

er

Cap

ita

Sour Plantains

•Farm Gate Price Rs.6/- per kg

•Wholesale Market Price Rs.25/- per kg

•Price paid by Consumer Rs.45/- per kg

Source: Rohan Abeywickrema- presentation on Infrastructure, IPS workshop, 25 Jan 2006

The Objective of the new Expressway Program

should be to encourage regional industrial development

and open up areas with high poverty for new

development

Integrate Location of IPZs with potential for Goods Transport by Railways

Develop new railway Lines through potential sites for IPZs

Developing new areas for tourism….

Case Study-- Uva

Transport for Rural Development

Some aspects considered

• Rural Roads

• Rural Bus Services

• Supply Chain for Agricultural Produce

Improving Quality of Rural Roads….

• Moratorium on New Rural Roads??

– No Treasury funds for new Rural Roads?

• Model for ensuring sustainability

– funding– management – management – technology

• Set Minimum levels of accessibility

– at prescribed levels of mobility

• Set plan for improving quality of roads for mobility

– With traffic levels

Roads are not enough we need to Improve Quality of Rural Bus Services

Passenger Feedback indicates

Attributes of Service Desired Rank Average Score

(from 100)

Loading Level 10

42.4

Condition of Bus Stops 9

49.1

Waiting Time for Bus 8

49.4 Waiting Time for Bus 49.4

Time taken for Journey 7

56.8

Condition of Bus 6

58.1

Acceptability of Bus Fare 5

59.9

Ticket Issuing 4

71.0

Morning, Night & School Services 3

75.9

Bus Conductor’s Behavior 2

76.0

Bus Driver’s Behavior 1

78.2

Fundamentals – root causes!

Symptom Cause

Loading Level No demand based timetable & pool for sharp peaks

Condition of Bus Stops No system of maintenance

Waiting Time for Bus Inadequate buses in rural areas, over supply in urban areas

Time taken for Journey No travel time, time points & end time for buses only start times

Condition of Bus Rural routes due to uneconomic conditions Condition of Bus Rural routes due to uneconomic conditions

Acceptability of Bus Fare Some rural areas fares set are very high- fare rectification & also low cost modes required.

Ticket Issuing Urban areas- standards not enforced, conductors not trained.

Morning, Night & School Services

Uneconomic services (schools, mornings, night and rural) are abandoned

Bus Conductor’s Behavior No training- around 60% cannot fill a form or waybill around 20% illiterate.

Bus Driver’s Behavior No training- 60% are former bus conductors, only 25% have education over 5

th grade.

Policy Shift

• Service Delivery: Provision by State & Private Sector

• Minimum Service Levels to be stipulated

• Management Restructuring: Competition based for the • Management Restructuring: Competition based for the Route not on the Route?

• Regulation: Urgent Reforms needed

Gami Saeriya A Sustainable Rural Bus Program

• Objective: To initiate reliable, rural bus services to developing areas where losses are subsidized by Government.

• Method: – To entertain requests for rural services from PTAs, AGAs,

GNs, community leaders etc. – Undertake survey to establish requirements and design

route and timetable– Set up Community Transport Committee– Enter into service contract for 2 years based on most

favorable bid. – Cross-subsidise with tender proceedings from profit making

routes

Sisu Saeriya (School Bus Program)

• Objective: To introduce a sustainable program of school transport which is reliable, safe and affordable to students at least cost to the Govt.

• Method:– Entertain requests from schools

& students & study previous operationsoperations

– Conduct visit and survey to establish demand, route & timetable

– Set up School Transport Committee

– Enter into contract with service provider.

Gami Saeriya Rural Bus Program

• Objective: To initiate reliable, rural bus services to developing areas where losses are subsidized by Government.

• Method: – To entertain requests for rural services from PTAs,

AGAs, GNs, community leaders etc. – Undertake survey to establish requirements and

design route and timetable– Set up Community Transport Committee– Enter into service contract for 2 years based on most

favorable bid.

Nisi Saeriya Night Bus Services Program

• Objective: To ensure that early morning and late night services are regular by offering a subsidy.

• Method:

– Identified trips on a time table are provided up to 100% cost of Diesel (Rs 15.20 per km)

– Transport Users Committees should certify payment – Transport Users Committees should certify payment through PTAs.

• Status:– Offered to SLTB, but have been unable to comply

– Problems of not having timetables

Treasury Allocations on Roads by Agency Level

(2006 Allocations)- Rs million

Type of Road

Total

Allocation

from all

Treasury

Allocation

made to road

% of Total

Treasury

allocations to

agency managing

% of

Treasury

allocation

Highways

from all

sources

made to road

network

agency managing

road network

allocation

to agency

National Roads 39,660.0 39,660.0 100.0% 34,831.0 87.8%

Provincial Roads 9,140.2 8,926.0 97.7% 8,031.8 90.0%

Urban Roads 2,776.2 876.2 31.6% 876.2 100.0%

Rural Roads 7,907.6 6,531.4 82.5% 1,722.2 21.8%

TOTAL 59,484.0 55,993.6 94.1% 45,461.2 76.4%

Source: Public Expenditure Review: Highway, World Bank 2005

Source of Funding Nature of Expenditure Allocation Rs

mn

Province Specific Development Grant Local Authority Roads 1000.0

Backward Area Roads 462.6

Sub Total 1462.6

Criteria Based Grants & Matching Grants for Rehabilitation & Improvement Capital Projects 199.8

Recurrent Block Grant mostly for 80%-100% of Salaries of Pradeshiya Sabha staff 59.5

Foreign Funded Projects voted to a ministry other than the M/LG&PC but implemented through the

Provincial Council such as Rural Economic Advancement Project

230.0

Foreign Funded Projects voted to a ministry other than the Maganeguma Program for rural and estate 1,800.0

Allocations for Rural Roads (2006) Rs million

Foreign Funded Projects voted to a ministry other than the

M/LG&PC and implemented directly

Maganeguma Program for rural and estate

roads

1,800.0

Local Funded Projects identified as ‘Road Projects’ where funds are voted to a ministry other than the M/

LG&PC is disbursed directly to the Pradeshiya Sabha for rural roads

1,120.7

Local Funded Projects not identified hitherto as ‘Road Projects’ but where funds voted to a ministry other

than the M/ LG&PC is spent directly on rural roads including Decentralized budget for all Members of

Parliament at Rs 5 mn for 225 MPs (i.e. Rs 1,125 million @ 25% for roads Rs 281.3 mn).

814.7

Funds Allocated to RDA, spent on maintenance and reconstruction of rural roads under vote heading such as

‘Emergency Road repairs’ etc

1,300.0

Provincial Revenue allocated to Roads (channeled through

the Provincial Budget)

PC Members and Chief Ministers Vote 283.0

Pradeshiya Sabha funds allocated for roads (channeled

through the PS Budget)

Balance 20% of salaries and other

expenditure

637.3

TOTAL 7,907.6

Trends in Public Expenditure on Roads (2003-2008)- Rs million

Expenditure Allocated Projections

2001 2002 2003 2004 2005 2006 2007 2008

M/Highways 10,442 8,066 9,296 12,255 19,206 28,184 35,945 39,909

Provincial Roads 749 494 1,021 1,968 4,702 6,329 6,385 5,807

Urban & Rural Roads 80 59 285 503 1,180 4,207 4,834 4,854

Tsunami & Conflict Area

(projects under different

ministries)

Nil Nil 102 2,204 3,662 13,704 17,644 8,853

ministries)

Sub Total 11,271 8,619 10,704 16,930 28,750 52,424 64,808 59,423

% of GDP 1.33 0.98 0.60 0.81 1.19 1.92 2.10 1.72

Spending from other

sources (add 13.5%)

1,521 1,163 1,445 2,285 3,881 7,077 8,749 8,022

TOTAL ESTIMATED 12,793 9,783 12,141 19,215 32,632 59,501 73,558 67,445

% of GDP 1.51 1.11 0.70 0.96 1.40 2.26 2.47 2.02

Utilization Rates for funds made available for Local Authority Roads

2002 2003 2004 2005 2006

Allocated (Rs mn) 470 207 245 355 1430

Expenditure (Rs mn) 59.9 15.1 N/A 193.5

Allocations

under PSDG Expenditure (Rs mn) under PSDG

%

Utilized 12.7 7.3 54.5

Source: Public Expenditure Review: Highway, World Bank 2005

• The total public expenditure allocated for roads for the year 2006 is estimated at Rs 59.5 billion. Overall 2/3 of funding is for National Roads.

• This is 2.26 % of GDP. This amount has increased favorably since 2003, when it was only 0.7%.

• An unprecedented level of funding. If this level is maintained, can we overcome the backlog of un-rehabilitated roads at all levels to bring ENTIRE network to MAINTAINABLE STANDARD?

• This is clearly a paradigm shift from previous years, where funds available for • This is clearly a paradigm shift from previous years, where funds available for hardly sufficient of the routine and periodic maintenance, which resulted in neglect of maintenance and rehabilitated resulting in an almost totally deteriorated road network of which less than 5,000 kms (or 5%) has been rehabilitated within the last 10 years.

• The objective of maintaining the present level of funding may be interpreted as a commitment to allocate between 2% to 2.5% of the GDP for road sector, which is the funding level in the MTEF for 2006 to 2009. This translates to allocating between Rs 55 billion to Rs 65 billion per year (at 2006 prices).

Rehabilitation Costs for Road Network

• In order to assess the total cost of rehabilitation of the entire network over the next 10 to 15 years the following table has been prepared using current rehabilitation costs from average cost per lane for contracts signed recently, with additions for bridges and other administrative costs.

Type of Road Road

Length

Lane

Length

Cost of Reconstruction

Rs per km

Total Value

Rs bn

Length

kms

Length

Lane kms

Rs per km Rs bn

National Roads 11,760 18,405 Rs 15 mn per lane km (DBST or AC) Rs 276.1 bn

Provincial Roads 15,743 20,466 Rs 4 mn per lane km (DBST or metalling) Rs 81.9 bn

200 400 Rs 20 mn per lane km (DBST or AC) Rs 8.0 bn Urban Roads

4,976 4,917 Rs 3 mn per km (metalling or DBST) Rs 14.8 bn

20,000 20,000 Rs 1.5 mn per km (metalling and concrete

sections)

Rs 30.0 bn Rural Roads

55,424 55,424 Rs 1 mn per km (gravel with concrete

sections)

Rs 55.4 bn

TOTAL 108,103 119,430 Rs 466.2 bn

• An estimate of the total annualized maintenance cost has been given in the following Table.

• It is assumed that the annualized cost is taken as 2% p.a. of replacement value for higher end roads such as DBST and Asphalt Surfacing and 5% p.a. for others.

• This follows norms in asset management techniques. This means that the annual maintenance cost would be around Rs 12.3 billion for a fully rehabilitated road network.

Type of Road Road Length

kms

Total Value

Rs bn

Rate for

Regular & Periodic

Maintenance

(for 10 to 12 year

reconstruction cycle)

Total Annual

Requirement

Rs Bn

National Roads 11,760 Rs 276.1 bn @ 2.0 % p.a1 Rs 5.5 bn

Provincial Roads 15,743 Rs 81.9 bn @ 2.0 % p.a Rs 1.6 bn

200 Rs 8.0 bn @ 2.0% p.a. Rs 0.2 bn Urban Roads

4,976 Rs 14.8 bn @ 5.0 % p.a. Rs 0.7 bn

20,000 Rs 30.0 bn @ 5.0% p.a. Rs 1.5 bn Rural Roads

55,424 Rs 55.4 bn @ 5.0% p.a. Rs 2.8 bn

TOTAL 108,103 Rs 466.2 bn Rs 12.3 bn

Sector Allocations at different Investment Levels

• The table clearly shows that a realistic opportunity exists to bring all roads up to a maintainable level within a foreseeable period, given that the present level of spending can be maintained.

• This is achievable between 10 to 14 years for a spending level varying from 2 % of GDP to 3% of GDP for the road sector.

• Such programs have been successful in countries such as India and Japan which have practiced 5-Year Development Plans have practiced 5-Year Development Plans

Investment Level

At 2% of GDP At 2.5% of GDP At 3% of GDP

Maintenance Rs 12.3 billion Rs 12.3 billion Rs 12.3 billion

New Roads Rs 7.0 billion Rs 7.0 billion Rs 7.0 billion

Administration & other

support costs

Rs 0.7 billion Rs 0.7 billion Rs 0.7 billion

Rehabilitation Cost

(years to complete

rehabilitation)

Rs 35.0 billion

(14 years)

Rs 40.0 billion

(12 years)

Rs 45.0 billion

(10 years)

Rs 55.0 billion Rs 60.0 billion Rs 65.0 billion

Conclusions

• Transport is a critical constraint to development today.

• Local Development is based on good connectivity to urban centres

• Public transport development requires a more regulator-led, pro-• Public transport development requires a more regulator-led, pro-active approach

• Road development at local level requires a paradigm shift for long-term policy aimed at initiating a sustainable plan