Showing posts with label PPP. Show all posts
Showing posts with label PPP. Show all posts

Saturday, 13 December 2025

Suggestions for Sri Lanka's Cyclone Ditwah Recovery



Sri Lanka suffered one of its worst natural disasters with Cyclone Ditwah which brought severe floods. Numerous lives have been lost, people are missing, houses are damaged or destroyed, some roads & railway tracks can no longer be travelled on among other problems. This is troubling as Sri Lanka is still recovering from its recent economic collapse. Relating to Sri Lanka’s economy, the IMF Mission Chief for Sri Lanka Evan Papageorgiou revealed that Sri Lanka has requested approximately 200 million USD of assistance due to Cyclone Ditwah. The IMF Executive Board is considering this request and will decide whether to approve it. In this article, I am writing suggestions for Sri Lanka’s Cyclone Ditwah recovery.


FDI

It would be very beneficial for Sri Lanka to seek foreign direct investments (FDIs) in sectors most affected by this crisis. Railways is a sector that has been seriously damaged. It has been reported that only 30% of Sri Lanka’s railways can be used following the cyclone damage. This comprises 478 km out of a 1,593 km total. It’s important to seek FDI on railways which includes improving the railway network to what it previously was. This could focus on upgrading railways including issues like electrification.


Agriculture has been seriously affected with floods overwhelming agricultural fields with water. Tea planter Roshan Rajadurai stated on dailymirror.lk that the tea industry is predicting a 30 to 35% reduced output. Farmers are facing serious crop damages. Lieke Schröder, a foreign investor based in Sri Lanka wrote an extensive social media post a few months ago dealing with foreign investment in agriculture. She stated that agriculture is presently estimated to only cover 0.24% of FDI. Lieke points out that she’s seeing a shift which includes the government taking efforts to solve issues foreign investors encounter, the Board of Investment (BOI) recognising investment projects in the North and her meeting startup founders combining agriculture and technology. Having FDI investment in agriculture can fasten its recovery and work to make this sector in a stronger state than ever before.


Other sectors which we should seek FDI include roads. This would be very useful for efforts to rebuild roads. Micro, Small and Medium Enterprises (MSMEs) are businesses who have been seriously affected by this cyclone. Having FDI investment into MSMEs can save them from getting out of business and can restore them to make a positive contribution to Sri Lankan society.


PPP

The private sector has an important role to play in the recovery. The government should in my view have public-private partnerships (PPPs). As the government is working on restoring Sri Lanka, they should collaborate with the private sector when they have the skills and incentive to get involved. These would be a set of initiatives covering a range of sectors. An example could be a PPP with the construction sector focused on rebuilding efforts.


Aid

We have a necessity to seek foreign aid. Types of aid the government should make an effort to obtain include aid programs focused on disaster recovery and climate change. Aid could also cover sectors I’ve mentioned above for FDI which are railways, agriculture, roads and MSMEs.


Look at Other Countries

We need to look at other countries who recovered from similar disasters. A focus should be made on developing countries and other countries in Asia as they will have similarities with Sri Lanka. The government should talk to the foreign heads of missions who can advise us based on their experiences.


Final Thoughts & Conclusion

I propose the government have an independent investigation carried out to find out why the Sri Lankan system failed in its response to Cyclone Ditwah. It should be conducted by independent professionals who aren’t involved in politics of the government or any opposition parties. This investigation should give the steps to be taken to prevent future natural disasters from causing devastation.


In rebuilding efforts for homes, roads, buildings, railways and more, we need to design and build them to withstand future disasters. The best engineers should be involved in these efforts. It was good to hear the Sri Lankan President Anura Kumara Dissanayake stating that construction will not be allowed in flood zones and in areas with high-risk of landslides as part of the government’s relief for rebuilding homes.


We need to ensure that our recovery from Cyclone Ditwah does not hinder the economic progress we have made. It needs to be coordinated with our economic recovery. We need to engage with the international community to ease and accommodate our debt burden based on our current situation. Sri Lanka can’t afford to undo the economic gains made with another economic collapse.


This article does not cover all sectors damaged by Cyclone Ditwah and the full scale of what took place. That is outside the scope of this article. These are a set of suggestions for Sri Lanka’s recovery. I would appreciate hearing from others providing more suggestions on how to come out of this crisis. I am thinking of everyone affected by this unspeakable tragedy which includes those who died, got injured, lost loved ones, got their homes destroyed or damaged, farmers who suffered damaged crops among everyone else. I’m hopeful Sri Lanka will find a way to recover from this crisis.

Sunday, 20 August 2017

Positive Occurrences Over The Last Three Months in Sri Lanka

When it comes to the recent state of events in Sri Lanka, especially relating to politics, there has been a lot of talk of negative issues. Recent issues include the constant strikes burdening the public, the garbage problem, the threat of dengue and economic issues that include the cost of living & the debt repayment Sri Lanka is going through. I’m writing this article to point out that while there are negative issues occurring, there are also positive ones. I’ve seen what appears to be an increase of positive incidents in Sri Lanka politically over the last three months and will be listing some of them.





GSP+
Firstly, in May Sri Lanka regained the European Union’s (EU) service of GSP+. GSP+ is a trade service given to developing countries for full removal of tariffs regarding all products covered under the product categories of the GSP service that has less benefits. We earlier had this service, but it was suspended by the EU in 2010. The EU is Sri Lanka’s biggest export market and this gives a much needed boost to our exports which hasn’t been performing great recently. GSP+ enables Sri Lanka to increase and diversify its exports. Sri Lanka began receiving the benefits of this service on the 19th of May.


Cabinet Reshuffle
Shortly afterwards there was a cabinet reshuffle that occurred on the 22nd of May with more changes made a bit later. I think positive changes were made when it came to economic affairs. I thought making Mangala Samaraweera Finance Minister was a good decision as I consider him to be a better Minister than his predecessor. There were further changes made to portfolios on the 31st of May, and I’ll be referring to what I see as two positive economic changes from that. Eran Wickramaratne being appointed as State Minister of Finance was very good as it’s an area he's an expert in due to his banking career and having studied Economics at the University of London. Dr. Harsha De Silva was given the portfolio of Deputy Minister of National Policies and Economic Affairs which gives him a chance to work in his field being an economist. These three men have the potential to turn around the Sri Lankan economy, especially as the last two are of a higher quality than the average politician.


Rajagiriya Flyover
There is a Rajagiriya flyover being constructed right now to improve the traffic congestion currently faced in Rajagiriya. It was originally scheduled to be completed in December 2018, but Deputy Minister of National Policies and Economic Affairs Dr. Harsha De Silva revealed at the site in June this year that the project is being expedited for completion by December 2017.


Banning of Bottom Trawling
A destructive form of fishing called bottom trawling is practiced by both Sri Lankan and Indian fisherman, with fishermen from India being the strongest offenders of this issue in Sri Lankan waters. On the 6th of July, Bottom Trawling and other illegal fishing activities was banned with the passing of a bill in Parliament. This was a good move for environmental reasons and it helps Northern fisherman as bottom trawling is part of the problem of Indian fisherman violating Sri Lanka’s sovereignty by fishing in Sri Lankan waters.


Sri Lanka Customs Online Payment Platform
On the 20th of July, an online payment platform for customs declarations was launched in Sri Lanka. It’s called LankaPay Online Payment Platform done in partnership between Sri Lanka Customs and the Central Bank of Sri Lanka. This digital system greatly improves the efficiency of Customs payments, especially for exporters/importers.They previously could only make direct Customs payments online via two state banks, but now can make direct Customs payments online via any bank. This system is implemented under the guidance of State Minister of Finance Eran Wickramaratne.   


New Economic Advisers
In July, there were the appointments of two well regarded Sri Lankan economists as advisers to the Finance Ministry. Firstly, Deshal De Mel who works as a Senior Economist at Hayleys Group was appointed as an Economic Adviser to the Ministry of Finance. Secondly, Professor Razeen Sally based in Singapore who is the Chairman of the Institute of Policy Studies was appointed as a Senior Adviser to Finance Minister Mangala Samaraweera. Both these two individuals have been giving their criticisms of Sri Lankan government policy, especially relating to the economy. They in fact both gave lectures with their criticisms at Public Policy Think Tank Advocata Institute last year being ‘What’s wrong with Sri Lanka’s economy?’ by Deshal De Mel and ‘Sri Lanka: Three Scenarios For the Future’ by Razeen Sally. While I wouldn’t go as far as they did in some of their criticisms, the fact that these two men who have major criticisms of Sri Lanka’s economic policy are working for the Finance Ministry as Economic Advisers show that the new leadership at the Finance Ministry is not appointing yes-men, but intelligent economists who have good ideas of what should be done instead. Hopefully, their input will be able to reduce the negative economic policies and bring about an increase of positive economic policies.


Passing of the Foreign Exchange Control Bill
On the 25th of July, Parliament passed the Foreign Exchange Control Bill which is a reform improving the status of foreign exchange in Sri Lanka. The voting of this bill used the electronic voting machine for the first time in Parliament. Voting this way is more efficient and allows for better tracking of the MPs votes.


Government Action on Strikes
As I mentioned at the start of this article, a problem currently going on in Sri Lanka are the constant strikes that cause difficulty to the public. A problem has been the government’s policies regarding these strikes including their lack of action to prevent these frequent occurrences. On the week beginning Monday 24th July, workers of the Ceylon Petroleum Corporation went on strike. On Tuesday 25th July, the government declared in a Gazette under the Essential Services Public Act of the storage, transport & distribution of petrol being mandatory and that anyone who fails to report to work will get terminated from service. On Wednesday the 26th of July, the Sri Lanka Army was brought in to distribute fuel. Hopefully this response by the government is a sign that they’ll respond better to strikes and take action to prevent ones from happening in the future. It’s worth noting that early this month, UNP MP Mohamed Mujibur Rahman called for new laws and regulations to address the strikes issue.


Hambantota Port Lease
On the 29th of July, Sri Lanka signed a signed an agreement with Chinese State Entity China Merchant Port Holdings to lease the Hambantota Port. I’m aware that this deal is unpopular with some saying we are selling out to China. Some aspects of the deal may not be the best for Sri Lanka, but I think that it was a good decision that needed to be made. Sri Lanka is facing a massive debt crisis, and this payment eases that as it’s bringing in US $1.12 billion which is a massive amount of money. The sale also is beneficial as the Hambantota Port was a loss making institution bringing economic damage to the country. Hopefully, China Merchant Port Holdings will make the Port profitable and there will be a creation of Sri Lankan jobs as well. It’s also worth noting that this isn’t a sale, but a lease and that it’s a Public Private Partnership with Sri Lanka still having a stake. The agreement gives China Merchant Port Holdings a 70 percent stake and Sri Lanka a 30 percent stake. Dr. Parakrama Dissanayake, Sri Lanka Ports Authority Chairman, said on the 31st July episode of the political talk show Face The Nation that this is the largest FDI we have ever received at US $1.12 billion. Sri Lanka hasn’t been having enough FDI coming in, so it’s very good to see FDI of that scale coming to Sri Lanka.


Action Against Bribery
A form of local government in Sri Lanka is the Pradeshiya Sabha. On the third of August, Ranil Madawa Kamal Nilame a former Rambewa Pradeshiya Sabha Chairman got sentenced to five years in jail as well as a Rs. 40, 000 fine for soliciting and accepting a bribe over a youth who was seeking employment in Korea. This incident occurred 10 years ago in 2007, so it reveals the broken legal system we have in Sri Lanka where things take far too long. However, it’s good to see a government official being sentenced for bribery based on efforts by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC). It’s interesting to note that on the 16th this month another former Pradeshiya Sabha (Tangalle) Chairman was arrested for allegedly accepting a bribe. It’s possible that CIABOC is functioning with some improvement due to these instances. Let’s hope they’ll continue to get more efficient and will work hard so that in the not too distant future they’ll make arrests and actually deliver the much needed prosecutions for the figures said to be involved in bribery and corruption of the previous government.


Waste-To-Energy Power Plants
On the 10th of August, two solid waste-to-energy power plants began construction as Public Private Partnerships. These projects are led by the Ministry of Megapolis and Western Development and will be bringing in US $193 million in FDI. The plants will convert the waste generated in Colombo and Gampaha into energy. This project is a double achievement for Sri Lanka as it will help solve the garbage problem Sri Lanka is currently facing as well as bring in the much needed FDI. There is also going to be a third project of this sort commencing soon bringing in an investment of US $91 million.


Road Discipline
There are positive moves taken regarding road discipline. On the 11th this month, the Cabinet of Sri Lanka had made important decisions regarding traffic. They had approved increased fines for issues that include driving under the influence of drugs or alcohol, entering irresponsibly into a railway crossing, driving without an authentic licence and driving without proper insurance among others. The Cabinet also decided to install CCTV cameras near areas prone to accidents and use them to identify and punish those guilty of offences. Also, earlier this month the Ministry of Megapolis and Western Development announced that they’ll implement priority bus lanes in Colombo and its suburbs to ease traffic congestion. The first phase of implementation began on Tuesday the 15th of August, with there being further implementations over the next four weeks each week as well as another priority lane to be implemented on the 30th of November.   


Inland Revenue Bill
A new Inland Revenue Bill is being discussed right now with the intention of passing it in Parliament before the end of this month. Finance Minister Mangala Samaraweera mentioned that in Sri Lanka indirect taxes currently account for 80 percent of tax revenue with 20 percent accounting for direct taxes. It is important to note that this figure is actually higher as economist Jayani Ratnayake said in an 18th August interview on Biz1st Review 360 that indirect taxes accounted for 83 percent of tax revenue in 2016. The Minister noted that this law is the first step of reducing indirect taxes to 60 percent and increasing direct taxes to 40 percent. This should benefit low income earners. Another objective of this bill is to create an investor friendly environment by simplifying the tax structure to attract more FDI. This bill is also brought to deal with the problem of tax evasion. The Finance Ministry has been having discussions with stakeholders on this bill. On the 18th of August, Minister Samaraweera stated that the Inland Revenue Bill will be presented to Parliament the following week and that the bill will be passed by the 25th of August. He also stated that most of the concerns raised regarding this bill will be addressed.


Conclusion
An issue I’ve had with this government was their slow pace of reforms, especially as they were elected on a reformist agenda. Thus, it’s a positive sign to see more reforms recently with the banning of bottom trawling, the passing of the Foreign Exchange Control Bill and the likely passing of the new Inland Revenue Bill. The Inland Revenue Bill appears to be the only major reform of the three reforms, and unlike the first two ones hasn’t been passed yet. This could be a sign of faster reforms, and it would be good to see other major reforms along the lines of the Inland Revenue Bill being passed before the end of the year.


I see a real improvement in the Finance Ministry following the new leadership of Mangala Samaraweera and Eran Wickramaratne. They got to work since leading the Finance Ministry and have been consulting with the relevant stakeholders to help them carry out their roles well. It’s likely that the benefits of some of these occurrences will be felt over the remaining course of the year.

Friday, 23 June 2017

Dimantha De Silva Interview on the Colombo Transport Plan

Welcome to my interview with Dr. Dimantha De Silva, the Consultant/Team Leader of the Transport Plan for the Colombo Western Region Megapolis Planning Project (CWRMPP). The Megapolis is a massive project that seeks to improve the quality of the Western Region of Sri Lanka which includes Colombo. The Colombo Transport Plan includes improved roads, monitoring by CCTV cameras, increasing average travel speed, an inland water transport system, a modern bus service, an electrified rail system and a Light Rail Transit (LRT) system. I talked to Dr. Dimantha De Silva about a variety of aspects of the Colombo Transport Plan. Hope you find it informing and interesting.  


1. What is your role in the transport team of the Megapolis?
I’m a consultant, so I was initially consulted to build the Transport Master Plan of the Western Region. We took about 4 - 6 months to do the Master Plan. Afterwards, I was retained as a consultant to the Transport Unit of the Western Region Megapolis Planning Project to oversee the implementation of it as well and I still continue with the project. I co-ordinate with the Ministry to implement what we have outlined on the Master Plan and to get it off the ground.

2. What are the biggest challenges facing the transport team?
I think the challenge is the lack of authority. The Megapolis doesn't have the authority to implement the projects because it still lies with the different agencies. For example, all the road projects have to be done by the RDA [Road Development Authority], all the railway projects have to be done by the Transport Ministry and so with the Railway Authority. Then when you take the buses, there are multiple agencies for the Western region. There is the Western Province Transport Authority. When it comes to inter-province, it is the National Transport Commission, and when it comes to the CTB, it’s the Sri Lanka Transport Board, So, there are multiple agencies that are working separately on each of these interventions. The challenge then for the team has been to co-ordinate with everybody and we have done it to a certain extent. But still, since we don’t have the full authority, that is, I would say would be the biggest challenge.

3. How can your experience in Canada help you in this project?
I lived in Canada for 11 years. The initial part of that was for my PhD and the second part was doing some consultancy work in Canada. My work was in Canada and US mainly. It allowed me to interact with the world’s best transport planners and also to experience the transport systems in the World, not only in Canada but also in the US, in Australia and in the UK where I also got the opportunity to travel.

By working with all these policymakers, in different agencies that I worked with as a consultant, I had the opportunity to see how things were implemented, and to know the overall picture and the overall strategies we needed to solve a transportation problem. The other thing is about the new technologies available. It is very important that we don’t stick on one type of thinking and basically use only that thinking. We need to move on with the new technologies that are coming up and move onto the next generation of ideas as well.

So I feel that my experience in Canada helped a lot to apply to the experiences here and also gave the confidence to the Government sector as well. These are the things that have been carried out in other parts of the world. These are things that could be done and not just based on theory but based on practical applications elsewhere. Because of course, practicality is important. If there can be a technology that has been proposed but if it practically cannot be implemented, those kind of technologies should not be even considered beyond pre-feasibility level. We are spending money on doing the studies and only identifying what can or cannot be done on the ground later on.

4. I heard that you have received a loan from the Japan International Cooperation Agency (JICA) for the initial phase of the Light Rail Transit (LRT) system. How long does Sri Lanka have to pay back the loan?
For this we have 7 lines, so I will tell you a little bit of a broader picture. This Master Plan has identified that we will need to go for a Network solution. In that Network solution, we have identified the LRT network has to be up to about 75 km and based on that, we have identified 2 lines to be prioritised. It is from Malabe connecting the Malabe section to the Parliament corridor or the Malabe corridor to Fort. That is the only transport corridor that doesn’t have a rail option. All the other corridors will have a rail option. So based on that when it was prioritised, JICA came up. They showed interest because in 2014 they had done a study, and a feasibility study before that, for a Monorail system. Now the technology has changed, because we have decided that LRT is the better option where we are going for a Network solution, rather than the Monorail.

Based on that, we identified JICA who expressed interest to potentially fund this project. This cost about 1.25 billion US dollars. Now the question you asked is how long do we have to pay back the loan. This loan is what we call a step loan. A step loan is a very concessionary loan - very low interest and if you look at the rate, it’s 0.1% interest for 40 years and with 10 year grace. So it is basically free money.

So let’s look at it this way. We have a problem on our hands. We need the transportation infrastructure to be built, but we don’t have the money. We need it to solve our transportation problem, we need it to elevate our economic levels, but we don’t have money. So we definitely have to go for loans. So it’s kind of a chicken and egg situation. Do we find other means of investment, other means of money sources, and then use that money for transport or do we build the transport system that is required for the economic elevation and then we pay if off. The advantage of this loan is, it is for 40 years, which is a long term loan. And it is a 0.1% interest and includes a 10 year grace period. Grace means you only start paying it after the loan has been given to you. So, there is a construction period. A portion of it will be used for the construction. But, effectively, we start paying the loan back 10 years after the construction of the LRT. So we have time to elevate our economic levels. It is only then, that we start paying. By that time, we would have increased our economic level. Second thing is, this loan is not available after we graduate for upper middle income level. Once we graduate above the current level, we are not eligible for these step loans. So, now we are tapping that source which will not be available probably in 1 and a ½ years time.  

5. How do you expect to get money for the rest of the transport project?
Good question. If you look at the main solutions: Railway, LRT, Inland Water Transport and Buses - Traffic Management is the main thing if you take the flux of the solutions that we have talked about. So, for LRT, the initial part is JICA which will cover 1.25 billion out of 3.5 billion or so US dollars total. 1.25 billion is potentially by JICA. Why I say potentially is they still need to do the feasibility study. Once that is done, and only then, would the loan be confirmed. But in principle they have agreed to it.

The ADB [Asian Development Bank] has already approved a loan for the railway. It is for modernisation and electrification, and the feasibility study is ongoing with that as well. Up to 900 million US dollars has been approved by them. The question is whether we can keep on investing and getting loans. So the government is looking to get the public sector involved. The public sector will need to be involved.

Now for the LRT project itself, in parallel to JICA funding 2 lines, we have floated an expression of interest for people to come up with proposals to build the next 5 lines. We are not going to build all 5 lines together, because it doesn't make sense to do that, but most probably we will prioritise 2 lines, that are most potential for our network to go with a PPP (Public Private Partnership) arrangement. So we have to look at how we are going to pay the gap. Is it via real estate? Is it by means of a ridership guarantee? Or is it in means of other types of projects that are involved with the Megapolis? We are trying to get the public sector involved to bring up money not only from Sri Lanka but from foreign investors as well.

6. I’m aware that the Cabinet of Sri Lanka has approved the LRT. Have they approved the rest of the Transport Plan?
Yes, so there was a Cabinet paper outlining and summarising what the Transport Master Plan is, and it has been approved in principle. And also, the Cabinet has appointed 3 Secretaries for the Minister of Transport, Minister of Highways and Minister of Megapolis. The Secretary of the Ministry of Megapolis is the chair for this 3 Secretaries Committee. They are going to make the decisions on the long term capital intensive projects and then make decisions on the Master Plan. You need to send individual Cabinet papers for these projects separately, but in principle the Master Plan has been approved by the Cabinet, but without many details in it, it's just an idea of what we are going to do. But for each individual project you need to have Cabinet approval. So, yes the Cabinet has approved it in principle, but it is being further evaluated by the 3 Secretaries. Individual Cabinet papers will go out for each individual project. Several Cabinet papers on the Master Plan have already gone for approval and sometimes for things which are not in the Master Plan as well. But the Cabinet in general has supported all the transport projects.

7. When do you expect construction to begin?
A lot of it has already started. We need to have a lot of things happening in the background. Let’s say the studies that were necessary to commence construction was not there. There are two ways of doing it. You could go and build right away without due diligence. And then, we’ll find out whether we are taking the right decision. Does the Government know what is the exact construction cost? We will find later on that there won’t be any people to use this infrastructure. So to some extent we have seen some of these transport infrastructure that has been built recently. It is probably not that the transportation infrastructure is not generating people or generating the demand. It may be because the supporting things are not there. For example, take the airport, Mattala Airport. I don’t want to go into detail whether the location is correct or not. But definitely we need a second airport. So, the question is whether sufficient studies has been done to identify whether the location was correct or not.

Third thing is whether the surrounding resources are there to supplement it. Whether the hotel facilities are there and other utilities required are there. So that is why it is important that we actually do our studies first to identify the shortcomings. Then we could solve our problems. So the construction is going to take some time. You have heard of the bigger construction projects. But for the road construction, the expressways are going ahead. If you look at the construction of expressways, it is happening. The reason is not because of any political movement I would say. It is because there have been enough studies, enough work done by the Road Development Authority on this regard.

If you take the Southern Expressway, or if you take the Outer Circular Road, these are not things that have been done in the last 5 to 10 years. This has been done 20 years back. It started 20 years back - some of these outer circular roads was in the plans since 1980’s, ‘80 - ‘85 probably. As enough work has been done, it is easy to go on to the construction stage. Now for the current projects, construction has not started. So we have talked about the LRT since 15 - 20 years back. We have just talked. The planners or the transport experts have just neglected that part. We need these transportation infrastructure to come now. Not in another 5 years. Actually we should have had the LRT running right now. And it is the transport experts who should be blamed for this because it is not on the ground.

So the construction is not happening right now. It won’t probably happen for another 2 and a ½ years. Mainly for LRT. So it is up to us to expedite the process to get it on the ground as quickly as possible. The feasibility study is going to take a minimum of 1 year. So February 2018 is the target for completing the LRT feasibility study for JICA. Then you need to have further steps. So I would say another 2 years before we can even start construction.

8. How can this project improve the day to day life of Sri Lankans?
It’s all about the connectivity and options. If you look at the whole Transport Master Plan, it’s not only one mode, it’s a collection of transport modes. And it’s not only on public transport, it is also about private vehicles as well. Because it covers the taxis, it covers the buses, it covers the LRT, it covers the railway, it covers the roads and also the traffic management side of signal lights intersection. It covers changing the behaviour of people, like flexible work hours, if you change the work hours, you will allow people to have a choice. So I feel that when you give more choice to the people, happier they will be. So you can’t constrain the people, and you can’t say you are going to provide improved bus services only or only improve the LRT or only improve the railway. You need to provide connectivity for people through cars as well. So for example, some people will never move from a car to public transport. So they also should have an option. So it is about giving people options, let them make the option. Once we have good public transport services in place, we can definitely bring policies to attract people to public transport. By actually costing the private transport more you can actually attract more people to public transport.

So, definitely we are trying to increase the speed of travel. We are not planning to increase average speed to 80 km or a 100 km. The current average speed of travel is about 12 km/h. So, we want to increase it more so people should not waste their time on the roads. Basically that is, if you give a value to time, you reduce the travel time, then you give value to the people. If you look at the North American context, which I have experience, the time that people waste on getting to their destination is less, because they have different options of achieving it. So I think that is how the project would implement it and that is how we are looking at it.

9. Are you involved in the transport of the Colombo Port City that’s part of the Megapolis?
Well no, I am not part of it but you know that we have the Port City project within the Megapolis Ministry, so the transport unit is directly involved. We have been involved in the planning level for them and providing information to them. So not directly, not directly to the Ministry or not directly as a consultant. I’m not involved in the Port City.

10. I understand your team is looking at Public Private Partnerships. How will that plan work? Will it result in private companies giving some money for the funding?
No, so actually I answered a little bit of that on your previous question. We are looking at it, we have our plan. We want people to come and it will be based on design, build and operate as well. So there are different methods of Public Private Partnership and we are new to this. Sri Lanka is new to this sector. So we have to identify what is the best way forward and this can be for different projects, there can be different methods. So I think the Finance Ministry has appointed a PPP unit within it and we might have a PPP unit within the [Megapolis] Ministry as well to identify which projects can be done with PPP.

11. How will the construction work from the Transport Plan create new Sri Lankan jobs?
Well, definitely when the construction starts, which I say is probably in 2019, there would be a boom on this because of transportation infrastructure. So even though we bring in foreign investors, they would look into the labour market in Sri Lanka to support the construction industry. So I think there will be a job boom here. Plus, in the meantime there is a lot of road projects going on. There are other kinds of physical infrastructure being built, not only on transport but on other sectors as well, building power plants, building waste energy plants, building water purification plants, building new construction of affordable pricing, affordable housing and so on. So I think that will bring up more job opportunities as well. Because the Megapolis Plan is not only a transport plan, it is basically a structure plan. And the structure plan has a vision of how we are going to increase employment opportunities, improve the living opportunities as well. So if the transport projects go on as planned, we would definitely see a job increase.

12. How do you intend to minimise disruptions to the public with construction from the Transport Plan?
Well, that is where the transportation planning has to come up and find alternatives. Definitely, yes, I won’t disagree that there won’t be disruptions to the public, but I think the public has to bear that up because you will be inconvenienced for maybe 2 years, 3 years, but the outcomes are not for the short term, it will be for 20 years. So definitely we have to find alternative methods of traffic management methods to speed up construction methods. From the start of the planning process, we need to identify how we can expedite our construction period.

And that is why I think we should not be getting people affected for very short term projects. If the length of these projects are comparable to the lifetime of those technologies, for example, BRT [Bus Rapid Transit], that we have rejected in the Master Plan, saying that it will only cater for another 3 or 4 years. It’s going to take 1 or 2 years to build that system, and by that time it starts operation and after 1 year it has reached the capacity. So we are going to just band-aid our problem and we are not giving a long term solution. That is what we have been doing. Our planners, our experts have been always going for a very short term solution maybe to please the politicians. But that is not what we would want from a focused planner or a focused expert on the transport plan.

13. Will construction of the LRT result in many changes to existing buildings?
No, not really. Because the LRT is pre-dominantly going on the centre median of the road, on pillars or on columns, it is going to be elevated. So some buildings might get affected, especially near the stations or when there is a sharp curve, so the feasibility study is going on. I expect very limited acquisition would be needed for the LRT.

Yes, in the case of connectivity there might be, because let’s take certain buildings in proximity to the elevated LRT line, which we have seen in other parts of the world, such as Calgary where I have lived. There is a direct connection from the commercial buildings to the elevated LRT stations, which is an added advantage to that establishment. They would like people to move through their buildings, so direct connectivity at the upper levels would be an advantage. So design wise, we might see a difference but we won’t see much demolition or acquisition of land for the LRT project.

14. Is there anything you have seen and/or experienced in Calgary’s LRT system that you’d like to bring to Sri Lanka’s LRT system?
Well, Calgary’s LRT system is somewhat different because Calgary’s LRT system is mainly on rock. It has only a very small section that is elevated, but in Sri Lanka, it has to be predominantly elevated, because we don’t have land or space to spare. So the Calgary city expanded with the LRT, while it’s the other way around here. So I have seen the efficiency when people use the LRT and I have seen the ridership of public transport which is very low in Calgary. If you say Calgary, public transport share is low but if you take the LRT share, itself, it is very high. So that experience has actually shown me and given me the confidence to say without any fear that if we put this LRT in, there would be enough demand.

And you know there is some fear being raised by some quarters that it won’t be affordable to people. But we have seen from Calgary, that different economic groups use it. There are different strategies for that. If the low income groups cannot afford it, you can provide certain kind of subsidies for those kind of groups. Which is already provided in bus service or railway even right now. For the government sector you can provide a subsidy for government servants. You could look into that kind of initiatives. So I would say I have the full confidence from the experience. I was not there when the LRT was introduced, but my mentors and my professors in Calgary have always talked about how the city grew, how the economic levels increased. Calgary is one of the main locations for the oil and gas industry, it is the driving force behind Alberta province which is one of the richest provinces in Canada.

And you could say Calgary grew with the LRT and how it actually allowed investors to come in even for other projects, and other areas, by providing a better transport system. That kind of experience actually gave me mainly the confidence to say that this is the right technology for us.

15. Will the LRT be built at a distance to many buildings?
No as I said, it’s going on the centre median of the road. So most of these roads are at least 4 lanes, 2 lanes in each direction. So we need to give some distance between the buildings. One thing is about the noise. To minimise the noise. And also for fire or evacuation or things like that. So the minimum recommended is about 2 metres from the elevated structure to the building, that is the norm.

Well, the closer the LRT is to buildings or any other infrastructure, it is better for connectivities, so if I understood your question, your question might be ‘Are we going out of all these buildings or the populated areas or are we going close to the buildings?’ Yes, we are trying to have our lines as close as possible to the buildings rather than going out of the way into very remote areas. And going elevated actually allows that option as well.

16. Do you intend to purchase new buses? If so, where will they be bought from?
Well, yes, if you take the buses here in Sri Lanka, they are not meant for public transport. If you look at the chassis, the buses are lorry chassis or truck chassis combined with a bus body. So if you look at a truck from some of these manufactured brands that come from India, basically that is what we have in Sri Lanka for buses. If you take a chassis out from a truck and a chassis out from a bus, it looks the same. And the suspension is not meant for bus travel, the vibration and so on makes it uncomfortable.

So we have already started specifying low floor air conditioned buses to go on in the city itself, which is meant for public transport. We have made the specification which is about to be finalised. Yes, so once that is finalised, we can go into purchasing. It has to go through the normal tender procedure once the specification is defined. Now the government has approved 1000 buses to be bought through the Transport Ministry, but out of that 100 would be for low fuel air conditioned buses, low floor buses, others would be for other areas as well. So I can’t answer you directly from where we are going to buy because we don’t know, I don’t know. We have to follow the government tender procedure, then only we could purchase them.

17. How will this project increase the average speed on the roads? How much of an improvement do you foresee?
Well, as I said it’s about 17 km/h within the Western region, if you take the whole Western region. But when it comes to within the CMC[Colombo Municipal Council] limit, it’s about 12 km/h. Now, if you compare this with walking, general walking speed is 5 km/h. So it is very low. What we are trying to do is increase the average speed. I just can't remember the value off the top of my head, but let us try to find the value in our Master Plan. The Master Plan is available in the web site megapolis.gov.lk under Downloads, so anyone can look at it as well. So let’s check the speeds, it is under the KPIs[Key Performance Indicators] .. so average speeds would increase by 2035 to about 28 km/h. This is by increasing the speed of rail, the speed of LRT, and also of the private cars as well, so to between 20 - 30 km/h speed by that time. We know the current value is about 12 km/h, so we are increasing, almost doubling the speed.

18. What are the planned smart IT systems?
Yes, all projects should have smart IT systems. Something that we are going to implement very quickly is installation of CCTV camera systems for traffic management and traffic enforcement. We want to discipline the drivers on the road and we will use a CCTV camera automated number recognition system to identify the violators and to discipline them. So this system has a lot of IT in it. Also, we can start with traffic management, with stand alone traffic signal optimisation at junction level and then we are going to move towards more sophisticated smart technologies. So there is a lot of potential and there are a lot of ideas which we are going to use in the smart IT systems.