Sri Lanka - 04

Preparatory Survey for New Integrated Urban Public Transport System Introduction Project
Final Report
CHAPTER 8 Institutional Arrangements and Operation & Maintenance

Scheme
8.1 Transport Administration

The National Transport Policy sets the following administrative structure to ensure the adequate
provision of transport infrastructure and services.
The transport administrative structure is divided into five categories, i.e. policy, planning,
implementation and monitoring, regulation, infrastructure provision, and service provision. The
table shows the institutions which deliver the abovementioned five functions by transport mode.
Table 8.1.1 Transport Administrative Structure by Transport Mode

Policy Infrastructur Service
Planning Regulation
Making e Provision Provision
Motor vehicles (all) Ministry of NTC DMT RDA/PRDA/ Private
Transport (in concurrence LA & Private
assisted by with the
Railways National SLR
provinces for
Inland Waterways Transport national plans Provincial Private
Commission and to get Councils
(NTC) and concurrence
Road Passenger other from the centre NTC (Inter) SLTB/NTC/ SLTB/Private
Transport Services stakeholders for provincial RPTA (Intra) RPTA/LA/
plans). Private
Para-transit (carriage of DMT/NTC LA Private
passengers) RPTA (Intra)
LA
Rental vehicles DMT Private Private
Freight vehicles (carriage NTC (Inter) Private Private

of goods) RPTA (Intra)
Non-motorised LA RDA/PRDA/ Private
LA
Traffic Management LA RDA/PRDA/ RDA/PRDA/
LA LA
Note: NTC stands for the National Transport Commission. DMT stands for the Department of Motor Traffic. PRDA
stands provincial department of road development. RPTA stands for Road Passenger Transport Authority. LA stands
for Local Authority. SLR stands for the Sri Lanka Railways. SLTB stands for the Sri Lanka Transport Board.
Source: National Transport Policy in Sri Lanka, Ministry of Transport, 2009.
Corresponding to the table above, detailed functional responsibilities are illustrated in Table 8.1.2.
Although Table 8.1.1 indicates transport policy is made by the MOT assisted by the NTC and
other stakeholders and the planning is done by the NTC, the reality is that there are central and
provincial governments involved in the vertical sector, and some numbers of institutions are
involved in the horizontal sector, even only at the central government level. If including
subsidiary institutions, such as the DMT, MOFP and so on, the number of stakeholders increases.
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Table 8.1.2 Functional Responsibilities of Transport related Institutions

Policy Planning Regulation Fare/Revenue Infrastructure Development Asset Management Operation and Management Law
Operation and Management of Equipment & Facility (Upper)

Financial planning and Budgetary Expenditure (Budgeting)
Procurement of Infrastructure Development (Construction)
Operation and Maintenance of Constructed Infrastructure

Planning for Public Transport Infrastructure Development
Formulating and updating Administrative & Technical

Standards, Norms, Minimum Service Standards and
Property Management (shops, vendors and so on)

Financial Source for Operation and Maintenance
Construction Supervision & Technical Inspection
Financial Arrangement for Business Operation
Business Operation Performance Evaluation

Authorization/License and Permit Approval
Upper Infrastructure (Equipment & Facility)

Sales revenue and assets management
Master Plan (Mid-, Long-term Planning)
Managing Fare Collection System

Strategic planning (Action Plan)
Regulatory Authority/Regulator
Sector Sub-sector
Service Delivery Planning
Business Operation
(include Budgeting)
Base Infrastructure
Law Enforcement
Land Acquisition
Plolicy Making
Fare Setting
Guidelines
(O&M)
(Base)
Land
Road Network RDA RDA RDA RDA RDA & RDA & RDA &
Class A & B (National Road) MoHPS RDA RDA RDA RDA RDA RDA RDA RDA RDA RDA
MoHPS MoHPS MoHPS MoHPS LA LA NPL
RDA PRDA &

Class C (Provincial Road) PRDA PRDA PRDA PRDA PRDA PRDA PRDA PRDA PRDA PRDA PRDA PRDA PRDA PRDA
MoHPS NPL
PRDA & LA LA RDA LA LA LA &

Class D & E (Local Authority Road) LA LA LA LA LA LA LA LA LA
LA PC PC MoHPS PC PC NPL
RDA RDA RDA RDA RDA &

Urban expressway (toll road) MoHPS RDA RDA RDA RDA RDA RDA RDA RDA RDA RDA RDA RDA RDA RDA RDA RDA RDA RDA RDA
MoHPS MoHPS MoHPS MoHPS NPL
Rail-based SLR SLR SLR SLR SLR SLR SLR SLR
Transport Railway MOT MOT SLR SLR SLR SLR MOT SLR SLR SLR SLR SLR SLR SLR SLR SLR SLR SLR
MOT MOT MOT MOT MOT MOT MOT MOT
Bus Transport General bus service (Public) NTC & NTC &
NTC NTC NTC NTC SLTB *5 NTC NTC NTC SLTB SLTB SLTB SLTB SLTB *5 SLTB SLTB SLTB
(Inter-province bus service) SLTB NPL
General bus service (Private) NTC & NTC &

NTC NTC MoPTS MoPTS NTC NTC NTC NTC OPR OPR OPR OPR *5 OPR OPR OPR
(Inter-province bus service) MoPTS NPL
General bus service (Public) NTC &

NTC NTC NTC SLTB SLTB SLTB NTC NTC SLTB SLTB SLTB SLTB SLTB SLTB *5 SLTB SLTB SLTB
(Intra-province bus service) NPL
General bus service (Private) NTC & RPTA &

RPTA RPTA RPTA RPTA RPTA RPTA RPTA NTC OPR OPR OPR OPR OPR OPR OPR OPR
(Intra-province bus service) RPTA NPL
Bus terminal NTC &

NTC SLTB SLTB SLTB SLTB SLTB NTC NTC NTC SLTB SLTB NTC NTC NTC NTC NTC NTC NTC NTC NTC NTC NTC NTC
(Inter-provincial bus terminal) (Public) NPL
Bus terminal NTC &

MoPTS MoPTS MoPTS MoPTS MoPTS MoPTS NTC NTC NTC OPR OPR NTC NTC NTC NTC NTC NTC NTC NTC NTC NTC NTC NTC
(Inter-provincial bus terminal) (Priv ate) NPL
Bus terminal RPTA & RPTA & RPTA & Prov Prov Prov Prov Prov Prov Prov RPTA & RDA &
RPTA RPTA RPTA NTC NTC RPTA RPTA RPTA RPTA RPTA RPTA RPTA
(Intra-provincial bus terminal) UDA UDA PC Council Council Council Council Council Council Council LA NPL
NTC,
NTC, NTC, NTC, RDA &
Bus stop/shelter (Class A & B roads) RDA RPTA RDA RDA RDA RDA RDA RDA RDA RPTA RPTA RPTA RPTA RPTA
RDA UDA RDA UDA RDA UDA NPL
UDA
RPTA RPTA RPTA RPTA RPTA PRDA & RPTA RPTA RPTA RPTA RPTA PRDA, LA
Bus stop/shelter (Class C, D & E roads) PRDA & LA RPTA RPTA RPTA RPTA RPTA
LA LA LA LA LA LA LA LA LA LA LA & NPL
Paratransit RPTA & RPTA &

Three Wheeler & Tax i MoPTS RPTA RPTA RPTA RPTA RPTA RPTA RPTA OPR OPR OPR OPR OPR OPR OPR
LA NPL
Private coach services (school van, RPTA & RPTA &

MoPTS RPTA RPTA RPTA RPTA RPTA RPTA RPTA OPR OPR OPR OPR OPR OPR OPR
corporate van) LA NPL
Note: LA: local authorities, OPR: operator

Source: CoMTrans Study Team
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The complexity of the existing urban transport administration, as illustrated in Table 8.1.2, makes
the urban transport administration in CMR inefficient and this makes it difficult to carry out new
transport measures and integrated transport policies, such as inter-modal transfers and connections,
common transport pass system and so on.
8.2 Implementation Schemes for a New Transit System (Monorail)

This section proposes a suitable scheme for the Organisational aspects and for the Operation &
Maintenance (O&M) of a New Railway System (Monorail). First, a proposal is given for a
suitable and optimal organisational structure for all levels of decision making. Then, a
description is given of the most common approaches to implement the O&M of a New Railway
System. Although operation and maintenance schemes are closely related, these are described
separately for the operation and maintenance aspects of the functions of an owner/operator.
Later, the schemes are evaluated, and finally, a proposal is made for the most appropriate scheme
for the SKYTRAIN.
The recommendation is based on the legal, institutional, and political situation in Sri Lanka, and
also on international experiences.
8.2.1 Organizational Structure for the Railway Sector
Besides the level of planning that was previously discussed in Section 8.1, another three possible
levels could be created and applied to implement new mass transit projects, to wit:
• Supervisory and regulatory agency

• Implementation (O&M)
• Maintenance Provider
1
(1) Proposal for the Establishment of Sri Lanka Mass Transit Authority (SMA)
The creation of an autonomous Sri Lanka Mass Transit Authority (SMA) as a governing body for
setting transport policy, regulatory parameters, and for implementing all Railway Programs, is
recommended.
The main objectives are to secure delivery by the industry of its regulatory obligations, assure
satisfaction levels of the passengers, equivalent to the best in railways and other forms of
transport.
The key tasks of the new entity are to provide for:
• Changes in the regulations of public transport operations for a Government-owned

operator as well as in joint venture with the private sector and, private operator,
• Health and safety regulations
1
Proposed name. Final name to be decided by Sri Lankan authorities.
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- Accident and incident investigation

- Regulation and certification
Safety approvals; Safety Directive; Interoperability; Train driving licences and
certificates; Rail vehicle accessibility;
- Inspections and audits
Conduct inspections and audits to check that the rail industry has the management
systems in place and is effectively controlling health and safety risks.
- Enforcement of health and safety legislation
- Safety guidance and research
Provide on-site and written advice and guidance on how to comply with the law.
- Worker and Infrastructure safety
- Occupational health - Moving the health agenda forward
• Land acquisition power,
• Access and market regulations
Responsible for licensing the companies that operate Sri Lanka’s trains, stations, light
maintenance depots and networks. These operators must hold a licence, or be exempted
from doing so by this Authority.
- Operator licensing
- Competition and consumer issues
- Sustainable development
- Investments
- Closures
• Setting up a transparent, consistent, efficient administrative mechanism to create a level
playing field for all participants and protect the interests of all stakeholders,
• To prepare a project list to be implemented under Government funds, ODA, or to be
offered for PPP and take the projects forward, after approval from the Planning Agency,
with assistance of the highly qualified staff through a transparent selection process.
• Putting in place an effective and efficient institutional mechanism for speedy clearance of
the projects.
This SMA would be funded through a combination of licence fees and a railway safety levy.
Economic regulation activities are funded through the licence fee and health and safety activities
through the safety levy.
Figure 8.2.1 shows a proposed organizational chart of the new SMA, and Figure 8.2.2 shows the
concept of the new SMA and its relationships with existing and future entities.
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Figure 8.2.1 Proposed Organizational Chart for SMA

Source: SKYTRAIN Study Team
227
Regulatory Scheme Inter-Ministerial Committee for
Cooepration and Planning of
Transportation (IMCCPT)
Planning Agency
Supervisory and regulatory agency.

Non-Ministerial Government Department, but set up by MOT. Accountable only
SMA to Parliament and the Courts. Funded by MOF and franchise fees if applies.
Srilanka Mass Transit Authority Basic roles of planning railway networks, granting concessions, supervising
operators, health and safety inspector.
O&M Schemes
Scheme 1 : Scheme 2: Scheme 3: Scheme 4:

Direct Operation & Direct Operation & Concession Operation & Multi-Line Urban System
Maintenance Maintenance Subcontract Maintenance Subcontract Different Concession per Line
Maintenance Subcontract
Transit Corp. Transit Corp. Transit Corp. Transit Corp.
228
Operation Dep. Operation Dep. Concession Agreement (Net Cost)
Service Agreement (Gross Cost)
Operator Line 1 Operator Line 2 Operator

Maintenance
Contract Maintenance
Maintenance Contract
Dep. Maintenance Maintenance Line 1 Maintenance Line 2 Maintenance
Contractor Contractor Contractor Contractor
Figure 8.2.2 Concept of New Transit Regulatory, Operation and Maintenance Schemes in Sri Lanka
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(2) The Implementing and Operating Agency (Agency/Corporation)
The SKYTRAIN would be the first urban mass transit project in Colombo, and even in all of Sri
Lanka. The operating organization is recommended to be a newly established under the
umbrella of the future SMA, also under the MOT and supported by central Government.
This section describes the organization plan of SKYTRAIN Corporation (STC)2 in terms of its
positioning, role and responsibility as the New Transit Operator & Implementing Agency (or
Corporation), and indicates those responsibilities and tasks that could be given in concession
according to the type of PPP scheme, if any, adopted during the implementation of the
SKYTRAIN.
Creation of PMU
During the implementation of the project, a Project Management Unit (PMU) shall be created as
the organization to be in charge of the actual implementation of the project and liaison with the
Consultant, Contractor, and other concerned stakeholders. Currently, the core team for
SKYTRAIN project, within the authority of MOT, has been set up, primarily taking an active role
in environmental and social issues. However, as mentioned below, its role should be expanded,
and consequently, its manpower also expanded.
This current core team should take responsibility for the initial duties until the formal
establishment of the permanent future PMU within the STC before official approval of the project.
Some staffs of the core team can be absorbed by the PMU.
The main scope of works of the PMU is summarised below:
• Reviews the Consultants design methods, standards and criteria used in the preparation of
the design;
• Assures that the Contractor’s work complies with the plans and specifications of the
contract by conducting regular site inspections.
• Monitors work accomplished by of the contractors.
• Analyses and interprets financial statements/reports;
• Responsible for all matters relating to taxes and transactions related to the Bureau of
Internal Revenue;
• Responsible for the safekeeping of all project records and correspondence.
• Coordinates with MOT Accounting Division and Auditor General regarding financial
transactions of the PMU.
• Coordinates with the ODA Bank’s Representatives regarding the Bank’s Guidelines,
which includes, but not limited to, environmental & social safeguards, procurement,
monitoring of implementation, and disbursements financed from ODA loans, if any.
• Prepares all financial reports other than the PMU’s financial statements as may be
required by MOT, Department of National Planning (DNP) of MoF and fiscal
2
Proposed name. Final name to be decided by Sri Lankan authorities
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authorities/other agencies.
• Monitors and assists in the verifications of disbursements that are financed under the ODA
loans (Foreign Currency).
Scope of Work of Agency
The following Table 8.2.1 shows the list of tasks STC is responsible for in the service operation
and maintenance. This is the key to which tasks an individual party can access, review, handle
and ultimately how a task is routed and approved. The STC will jointly develop stations with the
private sector and franchise station operations.
Among the tasks and duties mentioned in Table 8.2.1 below, the Operations (III) and Maintenance
(IV) are the tasks that could be given in concession to a private party if such party has entered into
a PPP with STC and requires return on investment.
Table 8.2.1 STC Tasks and Duties

No. Task Category Description of the Task Category
I. Management To formulate policies, prescribe and promulgate the rules and
regulations for the attainment of the objectives of the SMA
Implements, enforces, and applies the policies, plans, standards,
guidelines, procedures, decisions, rules and regulations issues, legal
affairs, and public relations.
II. Administration The administration-related departments and section shall advise and
assist the Management in the formulation and implementation of rules
and regulations necessary to carry out the objectives and policies of the
authority concerning administrative, finance, accounting, budget,
human resources, etc.
III. Operation To ensure the safe, reliable and efficient operating of the monorail and
satisfactory service to the passengers on a day-to-day basis.
IV. Maintenance To perform the daily and the long term planning and execution of
scheduled and unscheduled, preventive and corrective maintenance
actions to ensure overall systems are ready for required operation at all
times.
V. Engineering & Advise and assist the Management in the formulation and
Construction implementation of rules and regulations necessary to carry out the
objectives and policies of the SMA/STC concerning engineering.
Monitor and be counterpart of Consultants and supervise Contractors.
Organization Structure and Staffing of STC
a) Organization Structure
Consistency of responsibility and autonomy will facilitate integration of the O&M perspective
into system design, which will reduce lifecycle costs and achieve long-term sustainability. Such
a system would also make it possible to identify future STC leaders (technical managers required
for the O&M phase) during the E/S and construction phases. Early identification of future
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leaders from the PMU organization will lead to early capability-building activities in the
organization, as they develop competency and acquire a holistic understanding of the integrated
systems.
The STC organization shall start with a core team (i.e. PMU), and it will gradually evolve into its
full form before start of the O&M phase. With the STC in charge of all phases, the engineers,
supervisors, technicians, and operators (required for O&M phase) can be trained during the
construction phase by the system contractors and Original Equipment Manufacturers (OEMs) to
equip them with necessary knowledge and skills to effectively handle supervisory tasks for the
O&M activities. The technical training should be done by visiting successful cases overseas and
by inviting contractors and OEMs to Colombo. There should also be independent training on
management and operational skill development, such as financial and business planning,
maintenance auditing and service operations and general problem-solving.
All successful overseas metro systems, such as the Tokyo and Delhi Metros, share four key
principles in their organizational design:
• The rail business unit is designed as a function-based organization. This is necessary to

achieve the required level of competency in each railway system function, which needs to
have specialised functional areas.
• The non-rail business unit (non-core) is designed differently from the rail business unit
(core). This is important because the culture, skills, recruitment process, and business
unit basis differ for the two businesses. Railway businesses require rigid adherence to
technical standards to ensure safety and achieve specific operating standards, while
non-rail businesses need creativity and flexibility to enhance non-fare box revenue.
• All decision-making authority is delegated to the board. Complete empowerment of the
STC Board of Directors can achieve transparent corporate governance, faster
decision-making, and rapid project implementation.
• An internal independent safety monitoring unit is important for controlling the system’s
safety and security by monitoring daily O&M activities. Since a railway system involves
running trains through narrow passages with a high density passenger load, it is critical to
ensure safe and secure operations.
b) Staffing
The staffing planning mentioned here is on a general basis and is independent of what type of
funding and contractual scheme will be selected. The staffing requirements are subdivided into
three stages: Planning and Basic Design; Engineering Services (E/S); and Revenue Operation.
1) Planning/Basic Design Stage

The hardware plan for the railway is essentially something that must be decided based on
what sort of operations and what kind of scheme will be implemented. Therefore, an
entity which mainly carries out that task is required when planning the railway.
Generally, in an urban railway, a local government authority will, based on urban transport
policies, independently carry out facility planning based on an operations structure and a
standard of provided services. However, Sri Lanka has no experience in operating urban
railway systems and it is difficult for MOT by itself make decisions.
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On the other hand, as discussed so far in this chapter, in order to implement the
SKYTRAIN and make use of a variety of overseas knowledge, it is proposed to develop
operations and establish a public company (STC) which would be comprised of the MOT
and the possible contribution of external advisors from some reputable monorail operators
combined into a single body. For concept of a railway that aims to actualise and fulfil
the role of an urban transportation railway in the future, operations must be developed
using a structure decided by MOT which is the principal shareholder of the STC, and is
also ultimately the main planning body that will take advice from external advisors
participating in the STC - based on their experience in operating urban railways.
In order to implement this, the STC must be established prior to the planning stage of
SKYTRAIN, or else the main planning body set up and a system put into place for
possible discussion by members who can fulfil the primary role of the STC in the future.
Therefore, if it is firmly decided to develop the SKYTRAIN, the preparatory organization
must be established as soon as possible. At this stage, the STC is assumed to be the
small-scale organization to make decisions in the future.
Furthermore, it is necessary to implement the basic design and detailed planning of the
SKYTRAIN with the SMA and STC as the main body and with cooperation from the
central government. After securing the investment necessary to address this kind of
system and basic planning operation, a period of two years will be necessary to finish
basic planning and start construction.
2) Construction Bidding/Construction Management Stage
After the completion of basic planning and procurement of the financing for construction,
implementation of bidding and construction management will be conducted by the STC.
At this stage, STC will be assisted by a Consultant that will provide the Engineering
Services (E/S) including bid document preparation and assistance in bidding. It is also
necessary to procure the needed personnel for the management of these activities. This
staff would be the one forming the PMU mentioned before.
Therefore, it is necessary to start the recruitment of personnel six months before the
completion of basic planning, and when the basic planning is completed, it will only be
necessary to secure the suitable personnel to transfer for bidding works. The staff hired
for the PMU would eventually become permanent staff of STC.
Also, if operations and investment procurement is performed in an orderly manner, one
year will be required from the start of bidding until the commencement of construction,
and the period for construction will be 4~5 years until completion.
3) System Expansion towards the Start of Business
The level of staff requirements for the revenue operation would vary greatly depending on
the selected funding and contractual scheme, from a minimal requirement in case of a
concession operation with a Net Cost scheme to the maximal requirement under a fully
direct operation and maintenance by STC. In this particular subsection, we describe the
case of direct operation as being the most complex scheme in terms of procurement of
suitable staffing.
Prior to the start of business operations, it will be necessary to train the personnel,
particularly the drivers that will be required for the start of operation. Due to the large
number of required drivers, the hiring of a number of instructors at the stage when on-site
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training is possible is advised. The driving instructors who develop the system to train
drivers on site by themselves must be trained overseas.
The selection of personnel to be trained overseas must be in accordance with the training
system of the concerned parties abroad. In this regard, the personnel will be required to
speak the language of the corresponding country, or at least have a very good command in
English. On the assumption of training in Japan, a suitable number of personnel will be
selected and pursue one year of training in Japan with proper education allowing them to
become instructors themselves, receiving a License as Drivers and Instructor from the
corresponding Japanese accredited agency. This would necessarily include Japanese
language lessons. Subsequently, the personnel will train the drivers, including test drives
at the start of operations for a part or section of the completed area. If the period of
training in Sri Lanka will take one year and the test drive will take six months to complete,
training in Japan for the driving instructors will have to take place two and half years
before the start of operations.
The MOT should create a section to be accredited to issue Driver Licenses for Monorail
drivers based on training and test certificates issued by the Licensed Instructors.
It will not be a problem if the training period in other areas is short compared to that of the
drivers, but train control centre personnel require six months training before the start of
test-driving. The OEM Instructors will conduct training at the actual site to a suitable
number of future STC Instructors. In order to be able to start training, recruitment will
need to be done one year before starting operations. The training period for station
employees should take half a year from the start of test-driving. However, the number of
personnel could be considerably large, and therefore it is desirable that about 20 persons
would be trained as instructors in Japan and the on-site training system will be developed.
The training period for each instructor is assumed to be one month.
Furthermore, regarding maintenance, it is necessary to decide what to do regarding the
share of outsourcing and in-house maintenance activities. In order to address this at the
start of test-driving, it is necessary to proceed according to the defined maintenance
requirements.
8.2.2 Operation Scheme
The railway businesses in general and particularly since the expansion of the industry in 19th
century, has been developed with strong expertise in railway engineering as well as operational
supervision, evaluation, management and control activities. Currently, railway companies
provide comfortable and pleasant, safe and secure, and environmentally conscious travel. In
addition, they developed the IT based ticketing, fare collection and settlement system serving also
as a managerial information tool. This was brought about through the development of a railway
organization integrated vertically and horizontally.
The railway industry around the world, however, has been re-organizing or re-shaping in order to
introduce more effective operations and define responsibilities among different types of operations.
Some auxiliary services such as the rolling stock and station cleaning, station security, ticketing
and IT services are outsourced. Holding company options have been used when a railway has
many lines and/or its business has a wide range of activities.
Those vertical and horizontal disintegrations are considered as a way to make clear the
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responsibilities of each activity and at the same time to achieve more effective operations. One
should note - as the key feature in those cases - that the railway companies always keep their main
operations and their management under their direct control and thus they maintain their
institutional capacity within the organization.
Given the above global trend and also the relatively recent introduction of Public Private
Partnership (PPP) schemes, the possible types of contracts for the implementation of the
SKYTRAIN could be some of the following:
(A) ODA including O&M Concession,
(B) Operation and Maintenance Concession under PPP Net Cost Scheme,
(C) Operation and Maintenance Concession under PPP Gross Cost Scheme,
(D) Direct Operation and Contracting Maintenance,
(E) Direct Operation and Direct Maintenance, and
(F) Direct Operations with Contractual and Outsourcing as illustrated in the following table.
For purposes of convention, in Table 8.2.2 the government is the public party of the PPP, and
concessionaire to the private party of the PPP scheme.
Table 8.2.2 Type of Contract

Type of Contract Definition
(A) ODA The government builds the entire infrastructure (civil, E&M and rolling stock)
Implementation + using private sector contractors, and then engages the private sector to undertake
Concession O&M O&M through a concession. The government sets safety and service standards,
Leasing (PPP Net or service levels, and fare structure and level.
Gross Cost) The concessionaire retains all fare revenue. The form of concession contract will
be taken from either (B) Net Cost or (C) Gross Cost Schemes mentioned below, and
the division of roles between the government and the private sector in the O&M
contract will correspond to (B) or (C) accordingly.
This type is applicable when using ODA or its own funds to finance the project and
outsourcing maintenance.
(B) Concession O&M In the case of full PPP, the Private sector funds the entire project, but this will not
(PPP Net Cost) be considered now. In the case of a Hybrid, the government manages civil
infrastructure delivery using private sector contractors; the government engages the
Hybrid: Gov.:civil (i.e.
private sector to provide electrical and mechanical (E&M) assets and trains and to
VGF);
undertake operation and maintenance (O&M) through a concession. Hybrid PPP
private: E&M + rolling is equivalent of having a VGF (Viability Gap Fund)
stock
The government leases the civil infrastructure to the concessionaire.
The government sets safety standards and the fare structure.
The concessionaire determines services to be provided and retains fare and other
revenue. The government may need to make additional payments to the
concessionaire to cover revenue shortfall, and if revenue exceeds costs, the
concessionaire pays back the excess to the government.
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Type of Contract Definition

This type is applicable when using a PPP scheme such as Build Operate Transfer
(BOT) for the E&M portion and Build Lease Transfer (BLT) for infrastructure.
(C) Concession O&M The government builds civil infrastructure using private sector contractors.
(PPP Gross Cost) The government engages the private sector to provide E&M and trains and to
Hybrid: Gov.: civil undertake O&M through a concession; the government sets safety and service
(VGF); private: E&M + standards, service levels, and fare structure and level.
rolling stock The government pays the concessionaire an amount equal to the costs the
concessionaire incurs in providing agreed services as established through a
competitive, quality-based tender.
The government retains all fare revenue.
Same as above, this type is applicable when using a PPP scheme such as BOT for
the E&M portion and BLT for infrastructure.
(D) Direct O & Contract The government builds civil infrastructure and E&M systems using private sector
M contractors using ODA or its own funds.
The government engages in overall operation activities with their own staffing.
The government contracts with an external entity to provide maintenance services.
(E) Direct O&M The government builds civil infrastructure and E&M systems using private sector
contractors using ODA or its own funds.
The government engages in overall operation and maintenance activities with their
own staffing.
(F) Direct Operations The government builds civil infrastructure and E&M systems using private sector
with Contractual and contractors using ODA or its own funds.
Outsourcing The government engages in overall operation activities by their own staffing for
core operations but some non-core operations are contracted out or outsourced.
The government contracts with an external entity to provide maintenance and other
railway related services.
8.2.3 Maintenance Schemes
(1) General
Maintenance management is a concept which integrates all the activities of maintaining and
controlling rolling stock and other facilities ranging from commissioning to heavy repair.
In order to maximise the effectiveness and productivity of the system as a whole, a planned but
also corrective maintenance policy is required. The primary aim is the prevention of faults to the
greatest extent possible and when they do occur, restoring the items concerned to their former
condition as quickly as possible at any time. Maintenance involves carrying out the functions of
inspection, servicing and repair.
To achieve optimum efficiency of maintenance efforts, maintenance philosophy and planning

should not only consider the previous and present condition of the items concerned, but also their
future expectancy and life cycle and the economic aspects of maintenance. Early failures,
unexpected failures and failures due to wear and tear can also occur within the life cycle of any
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individual component. Each of the above problems must be approached in a different manner.
The Maintenance Philosophy for the SKYTRAIN must therefore not only provide preventive
maintenance, but also for predictive maintenance and to a certain extent trouble-shooting
maintenance in respect of specific items. The aim will be that the operation of the rolling stock
and other facilities provided, will be safe and the service and maintenance of all facilities and
rolling stock will be carried out accurately so as to extend their life to a point economically and
physically justified. This section describes the general maintenance alternative schemes
available for the SKYTRAIN. There are, however, only two basic schemes for maintenance, to
wit:
• Direct Maintenance (by Owner/Operator)

• Outsource Maintenance (by third party contractor)
As its name indicates, Direct Maintenance is the scheme where the Owner/Operator carries out the
maintenance activities with an in-house work force. This scheme is self-explained, and does not
require further elaborate description. Outsourced maintenance, on the other hand, has different
options for the degree and tasks to be outsourced. The section below describes those options.
(2) Maintenance Outsourcing Schemes
An important consideration in making the maintenance outsourcing decision is what aspects of

maintenance to outsource. If we consider the maintenance management process as consisting of
six major steps, as shown in Figure 8.2.3 below, then a number of options exist.
Figure 8.2.3 Maintenance Task Work Flow
In the first instance, organizations may choose simply to outsource the work execution step, while
retaining the remaining steps in-house. This is often done on a limited basis, for example, when
employing contractors to supplement an in-house work force during times of high workload.
This is the minimalist approach to outsourcing.
An alternative approach is to outsource all of the above activities with the exception of the
analysis and work identification steps. In this approach, the contractor is permitted to plan and
schedule his own work, and decide how and when work is to be done, but the outsourcing
organization retains control over what is to be done.
A third approach is to outsource all of the above steps, thus giving control over the development
of equipment maintenance strategies (i.e. Preventive and Predictive Maintenance programs) to the
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contractor. In this instance, the contract must be structured around the achievement of desired
outcomes in terms of equipment performance, with the contractor being given latitude to achieve
this to the best of his ability. There are advantages and disadvantages to each approach, and the
most appropriate approach will depend on the client’s particular situation.
Accordingly, outsourcing needs to be well targeted and framed by properly worded contracts.
When outsourcing railway maintenance there are two contractual strategies to follow: i) functional
requirements, and ii) job specific requirements. As stated in the paragraphs above, variations of
the two do exist and it is also possible to choose a mixture.
Contracts based on functional requirements, also known as Key Performance Indicators (KPI), are
typically related, for example, to track quality, track availability, rolling stock availability, AFC
availability, etc. A price for the contract is negotiated prior to the implementation of the contract,
bonuses and penalties are used if performance is better, or worse than agreed upon. The time
horizon for contracts could be 5 to 10 years, but also longer depending on investment.
Contracts based on job specification requirements are for example rail grinding, tamping,
inspection and revision of signalling system, station equipment repair, etc. Typical time horizon
is short, equal to the duration of the job.
Looking at how maintenance fits into the wider asset management strategy of an organization also
raises interesting challenges.
For example, one challenge that needs to be met is how the maintenance contractors will interface
with the railway operators, and the relative responsibilities and duties of each party. Many
organizations today are adopting Total Productive Maintenance principles, which encourage
operators to take a higher level of responsibility for equipment performance, and also encourage
them to perform many minor maintenance tasks. There is also a growing realization that the
manner in which equipment is operated can have a huge bearing on maintenance costs and the
maintenance activities required to be performed if equipment performance targets are to be met.
A high level of teamwork between the Maintenance contractors and the railway operators is,
therefore, vital to the successful completion of the contract. This leads to the view that an
alternative, and possibly better, approach to the outsourcing of maintenance is to include operation
in the scope of the contract, hence, the letting of Operations and Maintenance contracts.
Finally, taking things one step further again, there is also a growing realization that maintenance is
limited in achieving higher equipment performance by the fundamental design of the equipment
being maintained. The best that maintenance can achieve is the inherent reliability and
performance of the equipment that is built in by design. There is, therefore, a school of thought
that says that the best way to overcome this limitation, in an outsourcing environment, is to also
give the contractor responsibility for the design of the equipment. This can be done either by
giving him responsibility for ongoing equipment modifications, or by giving him responsibility for
the initial design of the equipment, as in a BOOM (Build, Own, Operate and Maintain) contract,
which is gaining favour in many infrastructure projects.
Accordingly, there is a trend to contract the Original Equipment Manufacturer (OEM) as the
Maintenance Contractor for newly implemented projects, where equipment is not well known to
the owner and it is still under warranty.
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8.2.4 Evaluation of O&M Schemes
(1) Operations
In this section each type of contract is evaluated in consideration of possible funding schemes.
ODA + O&M leasing
The first type of contract of the six mentioned in Table 8.2.2 corresponds to a project
implementation funded by the Government’s funds, either by ODA or other direct funding
schemes. Although there is no contribution from the private sector on the project capital funding,
this scheme is also considered as a PPP scheme as private participation is still included in the
operation and/or maintenance of the system, conveying some of the risks to the private sector.
Once the infrastructure is built, the entire operation and maintenance is leased to a concessionaire
for a certain period of time based on public bidding. This scheme is usually implemented under
a Net Cost Scheme where the private sector assumes the market risk, but controls the revenue.
The concessionaire pays a fixed amount to the government for the leasing of the facilities.
Operation by Concession
The next two types of contracts of the five mentioned in Table 8.2.2 correspond to the appropriate
contract for implementation funding under a PPP scheme (the Net Cost Scheme and the Gross
Cost Scheme). They are applicable for either a wholly privately funded project under BOT or, in
case of a funding scheme, with Public participation by means of Viability Gap Funding (VGF) or
a Hybrid scheme. In the case of a fully private investment project, the concessionaire owns the
infrastructure and the Electrical and Mechanical (E&M) system, and in the case of public
participation in the capital investment (Hybrid), the Government would own the infrastructure and
lease it to the concessionaire, while the concessionaire owns the E&M system.
The main difference between these two schemes, the gross and net cost schemes, is who controls
the revenue collection and the method of payment to the private concessionaire. In the case of
the Net Cost Scheme, the concessionaire collects the revenue and pays an agreed fixed amount or
a percentage of the revenue to the government (the implementing and supervisory agency, in our
case STC). Although the risk of low ridership rests on the private party in this case, the
concessionaire would usually request a Minimum Revenue Guarantee (MRG). In the case of a
Gross Cost Scheme, the government retains the fare revenue by either collecting it by itself or
collected by the concessionaire and then transferred completely to the agency, and then pays an
agreed fixed amount to the concessionaire. The risk in this case is entirely on the government
side.
There are some points worth mentioning for both cases:
• The Net Cost Scheme

This scheme puts most of the risk on the concessionaire, but to make the project
commercially viable the Government is usually required to provide a MRG. However,
the floor line should be carefully defined, as if it is too high it will lead to lack of
encouragement by the concessionaire to improve services or provide excellent
maintenance, as a possible reduction in capacity will eventually not greatly affect its profit.
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On the other hand, there should be some kind of protection for the concessionaire if the
planned railway network assumed during the forecast analysis is not completed as
scheduled by the government. Under the Net Cost Scheme the owner/government has
little hands-on control regarding the operation and maintenance of the system (a.k.a. Loss
of Control), and also it is difficult to gain experience for its own in-house technical staff
(a.k.a. Loss of Expertise).
• Gross Cost Scheme
In the case of this scheme, the owner/government bears all the demand risk; there is a
fixed amount to be paid to the concessionaire for O&M services where such amount is bid
for prior to the selection of the concessionaire. Therefore, there is no need of an MRG.
The government (implementing agency) has more control over the operation and
maintenance activities (supervisory control), but requires a sufficient level of technical
capability to perform such supervisory control.
As we can clearly see, both schemes have advantages and disadvantages that are being weighed
differently by different agencies around the world. The conditions, requirements and needs of
each agency or government will rule the decision on the best appropriate contract scheme.
Each type of contract could be tailored to the needs of the government and the project situation by
incorporating specific clauses to address some of the issues mentioned above. For example, loss
of control and expertise can be addressed by a tight requirement for performance supervision by
the Owner to the concessionaire and approved training throughout the concession period to the
in-house staff, respectively.
Direct Operation by Owner
The last three types of contracts of the six mentioned in Table 8.2.2 correspond to a project
implementation funded by the government’s funds, either by ODA or other direct funding schemes
or with direct operation by the government. As mentioned before, albeit there is no contribution
from the private sector on the project capital funding, except for Direct O&M by the Government
(E), these schemes are also considered as PPP schemes as private participation is still included in
the operation and/or maintenance of the system, conveying some of the risks to the private sector.
In all these cases, the government, using its own funds, contracts private contractors to build the
infrastructure and E&M systems. The difference among them is the outsourcing of operations or
maintenance.
If the government is in a good financial condition, this scheme could be applied; despite the fact
that the global trend is to include the participation of the private sector in order to reduce the
financial burden on the State, allowing more resources to be used for other urgent matters.
The main challenge is how to obtain the know-how in the case of countries which have no internal
experience with urban railway operation, like Sri Lanka. In order to resolve this, it is possible to
construct infrastructure and E&M systems, and administer operations and maintenance while
aiming for cooperation with private companies who have the expertise and specific know-how so
technology can be transferred to the local people.
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(2) Maintenance
In this subsection the outsourcing of maintenance services is evaluated.
Benefits
First of all, the advantages of outsourcing the railway maintenance works over in-house
maintenance are enumerated below. Companies surveyed in the UK indicated that the main
benefits were reported to be3:
• Reduction in the cost of obtaining the service 78%

• Reduction in the headcount of the organization 65%
• Increased flexibility of the business enterprise 61%
Very often not only the potential economical savings are identified as the main reason, but there
are also other potential advantages that could defend a decision to outsource one or more
activities:
• Outsourcing enables budget flexibility allowing operators to pay for only the services that
are needed and when they are needed.
• Using a contractor to focus 100 percent on a particular area lets the Owner/Operator better
manage existing assets, and focus in-house resources on core functions
• A trend toward outsourcing maintenance and adopting asset management applications is
helping operators make the improvements which are crucial to keeping a railway system
up and running, and keeping costs down.
• Warehousing and supply chain management will improve. Procurement of needed spare
parts and equipment will be faster by employing technical experts doing the canvassing,
evaluating, and testing up to acceptance of delivered spare parts.
• Less red tape or bureaucratic procedures. If maintenance is under the government, it
always requires government agencies such as the Auditor General to carry out purchases
of spare parts.
• Standby funds are always available.
• It also reduces the need to hire and train specialised staff by the government operator,
bringing in engineering expertise from the outside, and reduces capital expense, yielding
better control of operating costs. Salaries are set to be attractive to acquire/hire qualified
personnel (engineers. technicians, consultants, etc.).
• Unique technical expertise of the contractor, Improved quality of work and access to
skilled personnel
• Reduced risk
Nevertheless, one of the main reasons to resort to outsourcing the railway maintenance activities
in the case of a newly built railway system, in a country with no previous experience on mass
3
An Overview to Outsourcing – Trends and Different Options. SINTEF, Norway, Nov. 2003
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transit railway systems, is the limited in-house resources, and lack of equipment and expertise.
Secondly, as mentioned in a previous subsection, the level of outsourcing, i.e., How much
maintenance to be outsourced?, can vary, having advantages and disadvantages to each approach,
and the most appropriate approach will depend on the client’s particular situation.
Needless to say, the degree of involvement of the Owner/Operator in maintenance activities will
depend greatly on the technical capability of its in-house work force.
Common practice globally is that when an outsourcing scheme is applied and an experienced well
established Operator is involved, the operator usually keeps control what and when. However,
in the case of a newly formed Operator or Owner/Agency, the approach would be to outsource all
activities under an equipment performance type of contract (functional requirements or KPI).
Pitfalls and Concerns
In the previous sections we discussed potential benefits that could be the result of an outsourcing
strategy. However, there is no guarantee that these benefits will be achieved, and there could
also be negative effects of the outsourcing:
• Loss of control
• Loss of expertise
• Taxes
• Contractor is not capable for doing the job
Loss of control
When work is outsourced to a contractor, the Owner/Operator transfers control over the activity
that is outsourced to the contractor. To some extent, the Owner/Operator can implement
countermeasures against this by conducting audits of the contractor, but full control is almost
impossible to obtain. The overall responsibility will be placed on the Owner/Operator, at least in
the view of the public/customers.
Loss of expertise
A frequently encountered negative effect of outsourcing is that the owner loses important
knowledge, competence and expertise within the area that is being outsourced, or in the case of a
newly formed operator, they fail to gain suitable experience, remaining unaware of the necessary
maintenance procedures and skills.
“Loss” here is applicable to existing an experienced Owner/Operator “losing” expertise and

control, but in the case of a new Owner/Operator it means losing the possibility to acquire such
expertise and control.
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8.2.5 Proposed O&M Scheme
(1) Operations
Given a proper setting of STC as mentioned above, STC should engage in the task of
implementing the SKYTRAIN. After discussion with different high level authorities in Sri
Lanka regarding the mode of implementation of this project, it was considered that the vision of
the Government of Sri Lanka is to have the SKYTRAIN wholly government funded, probably
with some considerable portion being an ODA.
It is still undecided if the O&M could be given in concession to a private party or not, thus leaving
the Options (A), (D), (E), and (F) mentioned in Table 8.2.2 as possible schemes to be applied in
the implementation of the SKYTRAIN.
(2) Maintenance
This subsection introduces our proposed maintenance scheme, which is a general description of
the most appropriate scheme for this project, and it is independent from the mode of
implementation that would be finally selected.
The Study Team, considering all available information, site conditions, potential technical and
financial capabilities the of future STC, is suggesting the following maintenance scheme for the
SKYTRAIN: The Concessionaire/Operator shall outsource the maintenance activities,
preferably to a contractor closely linked to or associated with the main OEM (Rolling Stock),
including, among others, light & heavy maintenance, troubleshooting, and procurement of capital
and consumable spare parts.
The reasons to choose this scheme are that to date, the implementing and supervisory agency STC
has not yet been established. Then, it is not baseless to say that the required technical level of
knowledge and capability to have direct control over the O&M activities would not be achieved
by its in-house staff by the time of the opening for revenue of the first line.
Due also to the complexity and difficulty of the maintenance of the E&M systems, lack of
experience due to the fact that Sri Lanka currently has only a non-electrical suburban railway, and
the condition of having a Warranty period in effect right after the opening for commercial revenue,
it is highly recommendable to subcontract (outsource) all maintenance activities to a well
experienced and capable contractor, preferably to the rolling stock OEM, as it is one of the critical
and more complex railway subsystems that should be properly maintained.
(3) Scope of Work
This subsection offers a follow up of the Scope of Work of Agency in subsection 8.2.1 with a
more specific description of the scope of work for the possible schemes mentioned above.
We first suggest the outline of the responsibilities to be addressed by and between the STC, which
is represented as the owner/Authority (A), the Concessionaire/Operator (O), if any, otherwise its
responsibilities lay on STC, and the Maintenance Contractor (C). A basic matrix of tasks and
duties for the three stakeholders is shown in Table 8.2.3. The basic concept of sharing of duties
is that the Owner approves, the Operators monitor, and the Contactor implements the Maintenance
Plan, which is prepared based on policies and guidelines for maintenance, and the OEM
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maintenance guidelines. They all should be bound by two contracts: a Concession Agreement
between STC and the Operator (in the case of a Net Cost Scheme) or Service Agreement (in the
case of a Gross Cost Scheme), and a Maintenance Contract between the Operator and Contractor
for a period between 3 to 5 years.
The monitoring and supervision of the maintenance activities should be done using a
Computerised Maintenance Management System (CMMS). Currently, the software MAXIMO©
is one of the most widely used CMMS.
Capital equipment (rolling stock, subsystems, etc.) replacement due to end of life cycle or new
acquisition due to capacity expansion is the responsibility of the Owner or Concessionaire
depending of the type of contract, if any.
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Table 8.2.3 Tasks & Duties Matrix for Maintenance
Task Responsibility
Authority/ Operator/ Contractor of

Maintenance Owner Concessionaire Maintenance
Formulate policies and guidelines in the maintenance of rolling stock,
1
E&M subsystems, and civil works √
Approve policies and guidelines in the maintenance of rolling stock,

2
Implement policies and guidelines in the maintenance of rolling stock,

3
4 Inspect repair maintenance activities of the maintenance contractor √

Implement of all maintenance activities related to rolling stock, E&M
5
subsystems, and civil works √
6 Approval of special repairs and corrective maintenance activities √

7 Approval of large rehabilitation programs of capital equipment √
Monitor Maintenance progress implementation of all maintenance
8
activities by using CMMS √
Monitors the performance of the contractor and oversee the proper

9 implementation of Quality Assurance/Quality Control of all √
maintenance/repair works
Audit/approve status reports of the maintenance of the tools and
10
equipment √
Supervise and monitor the Contractor to plan and procure local and
11
foreign spare parts, material, tools and equipment √
Plan and procure local and foreign spare parts, material, tools and
12
equipment √
13 Supervise the control of inventories and the issuance of spare parts √
14 Responsible for the control of inventories and the issuance of spare parts √
Prepare annual materials/spare parts budget (local and imported) for the
15
operation and maintenance of the system √
16 Assist in managing the procurement process √

Accordingly, all parties (the Owner, Operator, and Maintenance Contractor) should adopt the
concept of fully integrated teams. The recommended functional organization structure is shown
in the following figure, showing the case of operation by concession.
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Owner
SMA
Approval (Sri Lanka Mass Transit
Law
MOT
Authority)
Supervisory Agency
STC
Concession Agreement (Net Cost)

Service Agreement (Gross Cost)
Monitoring
Operator (Concessionaire)
Maintenance Contract.
What, when, and how.
Implementing
Maintenance Contractor
Figure 8.2.4 Functional Organization Structure for O&M Scheme
The following measures should be taken into consideration to avoid the issues seen in other
railway systems;
It is important that the Owner/Operator be able to have some hands-on control over the
maintenance process in order to maintain the growth of the capacity building of the in-house
workforce at all levels, especially the technician level.
Although in the beginning all works should be assigned to the Maintenance Contractor, eventually,
STC would desire to have more control and expertise through Capacity Building programs over
the years in order to reach a level where the what and when are controlled by the Owner/Operator.
Approved training programs should be carried out periodically to the benefit of the STC’s
in-house technical staff in all related activities of the O&M of the system.
Eventually, STC should be able to take more responsibilities, control, and risks in time for the
implementation of the new railway lines (extension) that will increase the network in Colombo,
and also in time for when the Concession Agreement for the SKYTRAIN expires, and STC would
have to take control.
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8.3 Structure of Operation and Maintenance

The operator and the maintenance contractor’s objective in selecting and developing the
organization structure is to ensure that the organization will provide clear lines of formal
communication and control, and effective informal communications (networking). The
organization must also function smoothly both internally and in its relationship with its
counterpart (STC/Contractor) and the various agencies that will be involved directly or indirectly
with the project. It will clearly identify the functional requirements related to the management of
this contract; it will provide the correct balance of management and operational staff and the
optimum numbers, categories and disciplines of staff to ensure the technical and managerial
success of the maintenance activities for the SKYTRAIN.
Accordingly, the operator/maintenance contractor should follow guiding principles in its

organization structure and adopt the concept of fully integrated teams. The entire organization
could be subdivided into management/administration and site maintenance groups.
Because it might take time to cultivate a suitable environment for the contractor in Sri Lanka, it is
necessary to decide whether or not to expand the responsibilities of the contractor in light of the
situation as it develops. An organizational chart of the operator (STC) is shown in Figure 8.3.1
and that of the maintenance contractor is shown in Figure 8.3.2, which is a suggested functional
framework assuming that a relatively large-scale maintenance operation can be introduced instead
of separate systems for individual facilities. Maintenance operators can be segmented depending
on the subject, or alternatively, there is a great possibility that one section will directly supervise
the operators; but whichever the case may be, the organizational development must be performed
in order to implement a singular operations and maintenance structure from the total framework of
the operators and maintenance operators.
246
Chairman
Board of Directo 7
Office of the 4 Internal Audit

13
Corporate Secretary Department
4
Managing Director
Safety and Security 4

Division
- Financial & Managemen Division
- Operations & Compliance Division
Legal Counsel 6 Planning Department 20 Business Development & 7
Department Public Relations Department
- Corporate Planning and Research Division - Business Development Division

- Public Relations Division
247
Operations and Engineering
Administrative, Finance & AFC System
30 40 Automated Fare 10 16 38
Administrative Finance Operations Engineering
Collection System
Department Department Department Department
Services Department
- Human Resource - Budgeting & - Revenue & Production - Train Operations Division 120 - Rolling Stock Division 96
Management Division Financial Planning Division Reconciliation Division - Traffic Control Division 40 - Interrelated Subsystems
- General Services Division - Accounting Division - Ticket Production Division - Station Operations Division 297 Division 261
- Procurement Division - Treasury Division - Automated Fare Collection - Station Tellers 108
- Asset Management Division- - System Administration Division
- Management Information
Systems Division
Figure 8.3.1 Organization Chart of Operator

Final Report
SUPERVISORY BOARD
PROJECT DIRECTOR
PROCUREMENT ACCOUNTING & AUDIT

Support Groups
Site Operations
Maintenance
248
Materials Q.A. & Safety
Rolling Stock Dept. Electronics Dept. Infrastructure Dept.
Heavy Maint. Light Maint. Laboratory Power & OCS Sect. AFCS Sect. Signaling & Telecom Bldg. & Tunnel Track Sect.
Janitorial
Figure 8.3.2 Organization Chart of Maintenance Contractor

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Final Report
8.4 Operation and Maintenance (O&M) Cost for SKYTRAIN

The Operation and Maintenance cost for the SKYTRAIN was estimated based on the Operation
plan envisaged in Chapter 8.2.2 and 8.2.3. The principal components of the O&M cost are
labour for both operation and maintenance, materials (spare parts), and power consumption for
both rolling stock and other facilities. It was assumed that rental of office will not be necessary
as such facilities will be built within the depot, and also no extra security (professional guards)
will be needed. The main parameters used to determine the cost are the track length, number of
stations, number of trains, train-km/year, number of RSS, etc.
Except for electrical power rates, the prices of each item were estimated using current unit prices
of existing similar railway systems.
8.4.1 Labour
The workforce needed to operate the SKYTRAIN was determined based on standard needs for
each Department in the Organization Chart. The manpower needed is considering for the
operation and maintenance without subcontractors. Some of the functions could be
subcontracted, as explained in previous sections, but for purposes of the cost calculation we
assumed all personnel as in-house staff. The effect on cost in the case of subcontracts is minimal
and can be neglected.
Manpower for administration and management is considered to be a constant number, independent

of the size of the system (length of tracks, number of stations, number of trains, etc.), but based on
similar organizational structures.
The staffing for other technical departments depends on the size of the system, and the ration is
based on detailed evaluation of duties, number of shifts, and number of persons needed for each
task. For example, the number of drivers is assumed to be 5 drivers per train for multiple shifts,
in the case of one-man driving mode (no conductor). In the case of station teller, 2 staff per
station per shift (two shifts per day), so 4 persons per station. The breakdown of staffing for the
Colombo SKYTRAIN is shown in Table 8.4.1.
The cost of labour is estimated based on average annual wages for different categories of staff.
These values were provided by MOT as reference. The different average annual wages are
shown in Table 8.4.2. The combination of these two tables gives the result of US$8.86 million
per year in terms of manpower. The results are summarised in Table 8.4.4.
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Table 8.4.1 Manpower Breakdown for SKYTRAIN

Item Main parameter Value Ratio Staff
Administration Fixed 145
Management 15
Administrative 130
Operations
Management fixed 16
Train Control (OCC) fixed 40
Drivers # of trains 24 5.0 120
Stations # of stations 27 3.0 81
Station Tellers # of stations 27 4.0 108
Engineering & Maintenance
Management fixed 38
Civil, Track line length (km) 23.7 6.0 142
Signalling, traction, AFCline length (km) 23.7 4.0 95
Power # of RSS 6 4.0 24
Rolling Stock # of trains 24 4.0 96
Cleaning Staff # of stations 27 13.0 351
Security Stations # of stations 27 8.0 216
Total w/o Cleaning 1,121

line length (km)
w/Cleaning 1,472
Table 8.4.2 Average Salaries for Different Staffing Categories
Summary: Staff Average salary Annual Cost

Rs/year US$ M/year Rs Millions/year US$ M/year
Management 15 2,000,000.00 0.0154 30.00 0.23
Administration 130 1,000,000.00 0.0077 130.00 1.00
Engineers 113 1,000,000.00 0.0077 113.00 0.87
Technicians 419 1,000,000.00 0.0077 419.00 3.22
Drivers 120 800,000.00 0.0062 96.00 0.74
Station Tellers 108 600,000.00 0.0046 64.80 0.50
Station Assistants 216 700,000.00 0.0054 151.20 1.16
Cleaning Staff 351 400,000.00 0.0031 140.40 1.08
Total 1,472 777,445.65 average per person 1,144.40 8.80
8.4.2 Spare Parts (materials)
The cost of spare parts (materials) was determined as an average ratio per several parameters, such
as train maintenance, track maintenance, train operation, etc. among 7 existing monorail
companies in Japan. Those ratios were aggregated for length and train-km related items and
applied to SKYTRAIN’s case.
The table showing the data with the spare parts cost from the seven companies is shown in Table
8.4.3. The aggregated average annual value for the length related ratio is US$0.275 million per
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km of track, and the equivalent for train operation is US$7.25 per train-km. It is assumed that
that within the initial investment cost, the manufacturer is delivering spare parts equivalent to
three years of operation. Hence that cost is not included for the period 2021-2023, however, a
cost of US$4.39 million per year is estimated, based on contractual data from existing operators,
22% of the total cost corresponds to consumable material for the necessary for consumable
materials for maintenance. The annual cost for spare parts for 2024 is US$19.97 million.
Table 8.4.3 Data of spare parts cost for selected Monorail Systems in Japan (2010)
Tokyo Syonan Chiba Tama Osaka Kitakyusyu Okinawa
Item Averages Aggregated
Monorail Monorail Monorail Monorail Monorail Monorail Monorail
Track cost per km US$M/km 0.474 0.138 0.049 0.053 0.136 0.024 0.083 0.137
0.275
Power supply cost per km US$M/km 0.156 0.037 0.151 0.262 0.060 0.173 0.127 0.138
Rolling Stock cost per train-km US$/train-km 1.823 0.999 1.489 6.388 1.864 3.014 1.458 2.434
Operation cost per train-km US$/train-km 1.972 1.595 1.025 1.054 1.654 1.497 1.379 1.454 7.248
Others cost per train-km US$/train-km 7.16 0.84 3.19 4.02 5.97 1.25 1.10 3.360
Source: Japan Railways Annual Statistic Handbook, 2010
8.4.3 Power Consumption
Based on a computer simulation of the operation plan, the power consumption was estimated to be
22.76 million kWh for 2021, 33.43 million kWh for 2025, and 44.09 million kWh for 2035.
Assuming a power rate of 24 Rs per kWh, the total annual cost for power consumption was
estimated for SKYTRAIN, and it is shown in Table 8.4.4.
8.4.4 Summary
The summary of O&M costs per year and per item is presented in Table 8.4.4. The O&M Cost
for the opening year (2021) would be around US$17.46 million. As a verification of the cost, the
value of O&M cost per track km and per train-km of the SKYTRAIN was compared with the
seven (7) existing monorail systems in Japan. The average of the existing Japanese systems is
shown in Table 8.4.5. In turn, the ratios for the SKYTRAIN for the year 2025 are 1.78
US$M/km and 15.5 US$/train-km, which indicates an acceptable range for the SKYTRAIN.
Table 8.4.4 Operation & Maintenance Cost

Unit : US$Mill
Item/Year 2021 2024 2025 2030 2035
Manpower 8.86 8.86 9.54 10.10 10.10

Administration, OCC, fixed 1.95 1.95 1.95 1.95 1.95
Stations 2.28 2.28 2.28 2.28 2.28
Civil, Tracks 1.82 1.82 1.82 1.82 1.82
Rolling Stock 1.48 1.48 2.15 2.71 2.71
Power 0.25 0.25 0.25 0.25 0.25
Cleaning Staff 1.08 1.08 1.08 1.08 1.08
Spare Parts 4.39 19.97 26.24 32.51 32.51
Power 4.20 4.20 6.40 8.14 8.14
Total 17.46 33.04 42.18 50.74 50.74
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Table 8.4.5 Comparison with Existing Monorail Systems (mil. USD)
Operatio OM OM Cost/
Operator Stations Cars train-km OM Cost
n Cost/km train-km
km 1000 train-km/year US$M/year mil.US$/km USS/train-km
Tokyo (6cars) 17.8 11 120 3,321.5 75.6 4.25 22.76
Osaka (4cars) 28.0 18 84 2,284.0 38.9 1.39 17.04
Tama (4cars) 16.0 19 64 1,347.5 32.5 2.03 24.08
Chiba (2cars) 15.2 18 36 1,173.0 19.8 1.30 16.87
Okinawa (2cars) 12.9 15 26 1,047.0 13.6 1.06 13.03
Syonan (2cars) 6.6 8 21 617.3 11.2 1.70 18.13
Kitakyusyu (4cars) 8.8 13 40 666.8 12.1 1.37 18.14
Japanese average: 1.87 18.58

Source: Japan Railways Annual Statistic Handbook, 2010
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CHAPTER 9 MMC and P&R Development
9.1 Introduction
The CoMTrans Master Plan proposed the importance of facilities which provide convenient
transfer between each transport mode. The Multi Modal Transport Hub at Fort, Multi Modal
Centres at suburbs of Colombo, and Parking & Ride Facilities were proposed.
In line with the feasibility study on the monorail system, this chapter aims to discuss the
development of Multi-modal Centre (MMC) at Malabe and Park and Ride facilities (P&Rs) on the
monorail alignment, and describe the layout plan and cost estimations.
The locations of the MmTH, MMCs and P&Rs are illustrated in Figure 9.1.1
Figure 9.1.1 Locations of MmTH, MMCs and P&Rs in SKYTRAIN Project
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9.2 Development Concept for MMC and P&R

9.2.1 Role and Functions of All the Stations
The monorail route is proposed from IT Park Malabe to Kotahena, and a branch line from
National Hospital to Kollupitiya for the first phase. In the future, it is planned to extend the line
to Kelaniya MMC in the north and Kaduwela in the east. The areas along the monorail route are
identified considering four specific features, as shown in Figure 9.2.1.
Figure 9.2.1 Four Features of Monorail Stations
Water Front: Stations from Kelaniya to Kotahena and Amour Street.

The monorail route in this section passes through the port or harbour front area and Kelani
River Area. Although the location of the stations between Kelaniya and Kotahena are not
identified yet, the water front character would be enhanced by the Monorail system and
following development. Development of the section is treated as Stage 2 and it is not
studied in this report.
Business Centre: Stations from Sebastian Canal to Borella, and National Hospital to
Kollupitiya.
The monorail route in this section passes through the central area of Colombo, and it is
identified as a business centre. The monorail brings commuters to the area of the business
centre, and gives more opportunity to re-develop the area.
Capital Corridor: Stations from Cotta Road to Battaramulla.
The monorail route in this section passes through the administrative capital area, more
specifically, Rajagiriya area of Sri Jayawardanapura Kotte Municipal Council and
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Battaramulla area of Kaduwela Municipal Council area. The Monorail brings passengers to
the government offices or other related facilities. It also encourages the development of the
capital area.
Residential and Green: Stations from Palan Thuna to IT Park Malabe.
The monorail route in this section passes through mainly residential areas, and it provides
convenient public transport to the people residing the areas. There are wetlands and other
greenery still remaining. The area would be developed as an IT area with Malabe IT Park,
however, the green features should be kept for better environmental and residential
conditions.
All stations of the monorail route would have their own identity. Table 9.2.1 shows the design
concepts of the all stations based on the preliminarily observations around the station area. The
colour scheme is also proposed so that the all stations would have their own theme colour to show
their identity. Main feature of the stations and facilities to be planned are also shown in the table.
Table 9.2.1 Concepts of All Monorail Stations

Facilities to be planned
Transfer Point /
Design Concept
Colour Scheme
Main Features
Station Name
Car
Bus Station Plaza Others
Parking
Station Plaza,
BRT Station,
Railway, Bus Taxi Berth,
Kelaniya MMC New Gate City P&R Railway Station,
BRT/Highway Terminal Pick-up /
Pedestrian Deck
Drop-off Areas
TBD - - - - - - -
Parking
Kotahena P&R Workshop Town Commerce Facilities Bus Stop Station Plaza
Area
Armour St. Calm Avenue Commerce Facilities Bus Stop
Sebastian Canal Old Town Bus Stop
Parking
Maradana City Bridge Railway Bus Stop Station Plaza Railway Station
Area
New
Parking
Keselwatta Developing Commerce Facilities Bus Stop Station Plaza
Area
Town
BRT Station,
Station Plaza,
Railway, BRT/Bus Railway Station,
white
Entrance of the Bus Taxi Berth,

Fort MmTH Terminal, P&R Pedestrian
City Terminal Pick-up /
Commerce Facilities Deck, Road
Drop-off Areas
Improvement
Urban Business Parking
WTC Office Complex Bus Stop Station Plaza
Park Area
Railway, Parking
Slave Island Bustling Town Bus Stop Station Plaza
Commerce Facilities Area
Commercial
Union Place Commerce Facilities Bus Stop
Town
Monorail Transfer,
National
Medical Centre Hospital Complex, Bus Stop Transfer Station
Hospital
Town Hall
Punchi Borella Leafy Street Residential Area Bus Stop
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Facilities to be planned
Transfer Point /
Design Concept
Colour Scheme
Main Features
Station Name
Car
Bus Station Plaza Others
Parking
Commerce
Parking
Borella Crossing Artery Facilities, Bus Bus Stop Station Plaza
Area
Terminal
Railway, Residential
Cotta Rd. Homelike Town Bus Stop Station Plaza Railway Station
Area
Station Plaza,
Taxi Berth,
Welikada P&R Park Street Commerce Facilities Bus Stop P&R
Pick-up /
Drop-off Areas
Station Plaza,
IT Business Taxi Berth,
Rajagiriya P&R Office Centre Bus Stop P&R
Centre Pick-up /
Drop-off Areas
Diyawanna Park Area,
Water Park Bus Stop
Lake Recreation Facilities
Station Plaza,
Sethsiripaya Taxi Berth,
Civic Centre Government Offices Bus Stop P&R
P&R Pick-up /
Drop-off Areas
Shopping Parking
Battaramulla Commerce Facilities Bus Stop Station Plaza
Square Area
Parking
Palan Thuna St. Bus Stop Station Plaza
Area
Station Plaza,
Robert
Administrative Taxi Berth,
Gunawardena Government Offices Bus Stop
District Pick-up /
Mw.
Drop-off Areas
Station Plaza,
Lumbini Taxi Berth,
Peaceful Forest Residential Area Bus Stop P&R
Temple P&R Pick-up /
Drop-off Areas
Talahena Urban Nest Residential Area Bus Stop
Station Plaza,
Sustainable Sub Fairground, Public Bus Taxi Berth, Parking Public Facilities,
Malabe MMC
Centre Office Terminal Pick-up / Area Pedestrian Deck
Drop-off Areas
Station Plaza,
Entrance of IT Park
Taxi Berth,
IT Park Gate to ICT Malabe, Residential Bus Stop P&R
Pick-up /
Area
Drop-off Areas
Dharmapala
Urban Green Highway Bus Stop
Mawatha
Railway,
Kollupituya Ocean Park Bus Stop Railway Station
BRT/Highway
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9.2.2 Concept of MMC
Multi Modal Centres (MMC) are proposed in suburban areas. In the case of the Monorail,
Malabe Station is selected for the first phase and Kelaniya Stations are proposed for the second
phase when the monorail route is extended. They are the transferring stations for feeder buses
from the surrounding areas, railway passengers, and passenger cars traveling to the monorail in
order to get to central areas of Colombo easily. This contributes to ease the traffic congestion
from the existing roads. It is also encourages developing the area as Transit Oriented
Development (TOD).
Main functions of the MMCs are transport transfer functions and public areas.
Transport Functions are made up of the following;
• Local (Feeder) Bus Terminal
• Monorail (Terminal) Station
• BRT Station and Railway Station (applicable for the Kelaniya MMC)
• Taxi and 3-weeler Bays / Pick-up and Drop-off Areas
• Car Parking
Public Area includes a terminal building and a station plaza.
• Waiting Areas and Meeting Points
• Modern Facilities with Universal Design (Lift, Escalator)
• Vending Machines for Tickets
• Smooth Access with Station and Parking
• Café and Rest Areas
• Evacuation Area for Disaster
Malabe MMC is located in the eastern area of the monorail alignment, receiving bus passengers
and passenger cars from Kaduwela and further north-eastern areas through New Kandy Road and
Athurugiriya, Godagama and further eastern areas through Athrugiriya Road and High Level Road.
It would be developed as TOD and the gate to IT Park Malabe which is located north-east of
Malebe Station
Kelaniya MMC is located in the northern area of the monorail alignment. It receives bus
passengers and passenger cars from Wattala, Ja-Ela and further northern areas through Negombo
Road, and Kawatha and further north-eastern areas through Kandy Road, and railway passengers
from the Main Line and Puttalam Line. It would be the gateway to Colombo from the northern
area of Western Province.
In this chapter, the concept of Malabe MMC is described as the MMC is in the first phase of the
Monorail Route. Kelaniya MMC, which is on the extended route, is described in Appendix 7.
Figure 9.2.2 illustrates the locations and the functions of the MMC.
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Figure 9.2.2 Concept of MMC
9.2.3 Concept of P&R
Park and Ride (P&R) facilities are car parks with connections to public transport that allow
passengers to leave their vehicles and transfer to public transport. This encourages using the
Monorail and reducing the number of vehicles on the roads.
Based on the land availability and necessity, the 6 locations for P&Rs are identified as Kotahena,
Welikada, Rajagiriya, Sethsiripaya, Lumbini Temple, and IT Park stations.
Main functions of the P&Rs are transferring from passenger cars, but also modern facilities and
public areas are proposed.
Transport Functions are as follows;
• Local Bus Stop
• Monorail Station
• Taxi and 3-weeler Bays / Pick-up and Drop-off Areas
• Car Parking
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Public Area contains a terminal building and a station plaza.

• Modern Facilities with Universal Design (Lift, Escalator)
• Vending Machines for Tickets
• Smooth Access with Station and Parking
• Evacuation Area for Disaster
P&R Kotahena receives the passengers from the northern parts of CMC.
P&R Welikada, Rajagiriya, Sethripaya, Lumbini Temple and IT Park are located along
Malabe Corridor or New Kandy Road, receiving passengers from their surrounding areas. In the
case of P&R Sethsiripaya, the car parking is located behind the building complex of government
offices. It would be shared car parking for P&R and the complex.
Figure 9.2.3 illustrates the locations and the functions of the P&R.
Figure 9.2.3 Concept of P&R
Out of the 6 identified P&R stations, Welikada, Sethsiripaya, and Lumbini Temple stations are
selected for the concept design, due to land availability and necessity for such P&R function.
Thus, preliminary layout plans are prepared for the 3 P&R stations and described in this Chapter.
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9.3 Layout Plans of MMC Malabe

9.3.1 Functional Requirements of Malabe MMC
Calculated peak time demand based on the future bus demand at Malabe is approximately 2,700
bus/day in 2035. Thus, 15-22 bays will be required.
Table 9.3.1 Future Bus Demand (2035)

Future Bus Peak Bus
Peak Ratio Bay Capacity Bay Demand
Demand Demand
Dp.: 8% Dp.:108 buses/h Dp.:10-12 buses/h 9-11 bays
2,700 buses/day
Ar.: 9% Ar.:122 buses/h Ar.:15-20 buses/h 6-11 bays
The facility scale of each transportation mode is estimated based on the access/egress
transportation demand for the monorail at Malabe MMC, which is approximately 1,700 person/h.
Access/egress facility demand for each transportation mode is as shown in Table 9.3.2.
Table 9.3.2 Malabe MMC access/egress Functional Requirements (2035)

Mode Share Peak Demand Facility Demand
20-50 bikes/h
Bicycles, Motorcycles 1-3% 100-300 bike spots/day
(100-300 bikes/day)
1-2 bays
Taxis,3-wheelers 2-3% 30-50 cars/h
Taxi pool 3-5 cars
Pick-up/staff-service 3-5% 40-80 cars/h 2-4 bays

9.3.2 Characteristics of the Site
Malabe is located nearly 15 km east of Fort Station along the monorail route. The site of the
MMC Malabe is located near the junction of New Kandy Road connecting to Kaduwela and
Athurugiriya Roads connecting to High level Road at Godagama. This location is an entrance to
Colombo from the eastern and north-eastern areas. 1 km from Malabe Junction, there is Malabe
IT Park, which will have IT related facilities, such as universities. Malebe is the terminal station
of the monorail in the first phase. The site is a part of Kaduwela Municipal Council, and is east
of Battaramulla area where governmental facilities are gathered. It is the suitable location for an
MMC as a transferring point to the monorail from the other transport modes
There is 1.5 ha of government land, which is used for bus stands, Kaduwela DSD office and Pola
or a farmer’s market, as shown in the Figure 9.3.1.
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Figure 9.3.1 Location and Characteristics of the Site of MMC Malabe
9.3.3 Layout Plan of MMC Malabe
Figure 9.3.2 is the layout plan of the Malabe MMC. The Malabe MMC is proposed on the
existing bus stand area and the DSD office. The Malabe monorail station is located on the New
Kandy Road, on the west side of Malabe Junction, just in front of the new bus terminal of the
MMC Malabe. A pedestrian deck connects both facilities directly.
As the conceptual section diagram of Figure 9.3.4 shows, there is approximately 10m difference
in elevation from the north edge, along New Kandy Road, to the south edge of the site. The bus
terminal is set on the lower ground level, car parking set on top of the bus terminals, and the DSD
office building is proposed on top of the car parking, which is shown in Figure 9.3.3, the first
floor plan of MMC Malabe.
The pedestrian deck connects from the monorail station to the upper level of the bus terminal.
In addition, a station plaza and taxi and 3-weeler bays are also set on the ground level, next to the
bus terminal.
On the corner of Malabe Junction, there are private lands used as retail shops. In the future, the
area has a potential to be developed as a commercial or business building, which can be a
landmark of Malabe area to encourage TOD development around the area.
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Figure 9.3.2 Layout Plan of MMC Malabe
Figure 9.3.3 First Floor Plan of MMC Malabe
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Figure 9.3.4 Conceptual Section Diagram of MMC Malabe
9.4 Layout Plans of P&R

9.4.1 General Concepts of P&R Stations
Preliminary layout plans for the 3 selected Park and Ride facilities are prepared based on the same
concepts; providing smooth transfer and access from the monorail stations to the station plaza and
car parking. The main target to prepare the P&R stations is to encourage using the public
transport for passenger car users. It is proposed that the pedestrian access connects from the car
park to the monorail station, as well as to facilities located the surrounding area, such as
government offices, public areas, and commercial facilities. A station plaza is also set in the
P&R station facilities. The general conceptual section diagram is shown in Figure 9.4.1.
Figure 9.4.1 Conceptual Section Diagram of General P&R Stations
Accordingly, layout plans for the 3 selected stations are prepared with consideration of the
characteristics of each station.
9.4.2 P&R Welikada
(1) Characteristics of the Site
Welikada Station is located almost in the middle of the monorail route, 7km east of Fort. Next to
Welikada Junction, there is a local government owned commercial centre, called Welikada Plaza.
West of Welikada Plaza, there is Welikada Police Station which has open land in front of their
building. The land is used for the P&R facilities for Welikada Station. The land totals 0.7 ha,
as shown in Figure 9.4.2. Welikada Junction connects Malabe Corridor and Horana Road from
the south. People living in the surrounding area, especially along Horana Road, can easily get to
the P&R to ride the Monorail.
The station is in Sri-Jayawardenapura Kotte Municipal Council. The area can be developed as a
part of the capital function. For the moment, the station is proposed as a P&Rs, however, in the
future, the station would be a major station in this area together with development of the
commercial centre.
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Police Station
Welikada Plaza
Figure 9.4.2 Location and Characteristics of the Site of P&R Welikada
(2) Layout Plan
Welikada Monorail station is proposed at the junction in front of the shopping centre or Welikada
Plaza. A pedestrian deck connects to the car parking directly from the Station. A small station
plaza is set along Malabe corridor.
The land extent is 0.7 ha, which holds 170 car parking spaces. A station plaza for bus stops, taxis,
3-wheelers, drop-off, and pick-up functions are also proposed around a small public plaza.
Layout plan is shown in Figure 9.4.3.
Figure 9.4.3 Layout Plan of P&R Welikada
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At the moment, the Road Development Authority (RDA) is proposing a flyover for the junction.
Monorail alignment, the location of the station, and composition of the P&R facilities are to be
examined.
9.4.3 P&R Sethsiripaya
Sethsiripaya Station is located on the back side of Sethsiripaya, which is a common building for
government offices having many employers and staffs. It is approximately10 km from Fort.
West of Sethsiripaya, there is Diyawanna Park, which is a park recently opened around
Diyawanna Lake and very popular place for the public. Sethsiripaya Station is one of the closest
stations to the park.
There is already car parking around the station. One car park is for employees and staffs of
Sethsiripaya and it is located under the proposed station, the other one is developed by UDA for
temporary use when the Commonwealth Heads of Government Meeting was held at 2013. At
this moment, UDA wishes to re-develop the land for buildings.
P&R Sethsiripya has 1.1 ha of land on the existing Sethsiripya car park, which is to be reorganised,
in order to function as a P&R.
The location and characteristics of the site are shown in Figure 9.4.4.
Figure 9.4.4 Location and Characteristics of the Site of P&R Sethsiripaya
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(2) Layout Plan
P&R facilities are proposed on the existing Sethsiripaya car parking site. The car parking is to
be reorganised to obtain more capacity, and to share with Sethsiripaya’s staff and P&R users.
At this moment, UDA is proposing a new road on the back side of Sethsiripaya, which would be a
bypass road for the Malabe Corridor. The alignment is similar to the monorail route. This is
also considered for the preliminarily layout plan.
On the new road, Sethsiripaya Monorail station is proposed. In front of the station, a station
plaza is set for monorail passengers to get to the Sethsiripya building. This plaza is also used for
riding buses and taxis or 3-wheelers.
The car park has 280 spaces and it is shared with Sethsiripaya staffs and monorail passengers. In
the future, the parking can be multi story when more parking spaces are required.
The main concept is to provide smooth access from the station to the car parking as well as
Sethiripaya.
Figure 9.4.5 shows the layout plan of P&R Sethsiripaya.
Figure 9.4.5 Layout Plan of P&R Sethsiripaya
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9.4.4 P&R Lumbini Temple
Lumbini Temple Station is located 2km west of Malabe, which is the terminal station of the
Monorail for the 1st phase. P&R is proposed on the wetland. Although wetland is important
environmentally, the proposed site is in the upper stream of the wetland, and it can be developed
with proper assessment and approval procedures.
The site has 1 ha, and is located in a residential area along the New Kandy Road. There is a
temple located south of the station, which attracts local residents to the P&R.
Figure 9.4.6 shows the location of the P&R site.
Figure 9.4.6 Location and Characteristics of the Site of P&R Lumbini Temple
(2) Layout Plan
There is a 1.0 ha site consisting of a car park with 240 spaces and a station plaza. Along the New
Kandy Road, bus stops are set. The preliminary layout is a very simple composition since it is
located in a residential area. The P&R encourages residents in the surrounding area to ride the
monorail.
Figure 9.4.7 shows a layout of the P&R Lumbini Temple.
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Figure 9.4.7 Layout Plan of P&R Lumbini Temple
9.5 Floor Volume and Cost Estimation (MMC+P&R)

9.5.1 Floor Area and Cost Estimation of MMC Malabe
The development area of MMC Malabe is approximately 23,600m2. Local Bus Terminal,
Monorail Station, Taxi Stand, Drop-off/Pick-up Area, Parking, Terminal Building, and Station
Plaza and DSD building were proposed on the development.
The floor area is summarised in Table 9.5.1, and the construction cost of MMC at Malabe is
estimated and summarised in Table 9.5.2.
Table 9.5.1 Gross Floor Area

Area/Component FL Floor Area (m2)
Pedestrian Area, Walkway, Plaza Paving 5,816.1
Bus Bays, Waiting Pool Paving 1,256.4
Access Road, Parking, Taxi & 3-wheeler Bay Paving 4,277.8
Landscape and Others Paving 184.1
Car Parking on 1st Floor 1FL 3,110.3
Bus Terminal Building GFL 2,197.9
DSD Office 2 – 4FL 6,163.6
Pedestrian Deck 1FL 352.8
Parking Access Ramp 217.2
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Table 9.5.2 Summary of the Estimated Construction Cost of MMC Malabe
Cost per Amount STEP

Item sqm (YEN) (th. YEN) (th. YEN) Note
15
Total Construction Cost 131,608 3,317,041 496,000 % Total Floor Space: 25,204 sqm
I. Architectural Construction
Cost A+B+C 131,608 3,317,041 0 0% Total Floor Space: 25,204 sqm
A. Direct Construction Cost

106,878 2,693,762 0 0%
1+2+3
1 Architectural Work
59,460 1,498,628 0 0%
(1)+(2)+(3)+(4)+(5)+(6)
(1) Direct Temporary
1,821 45,887 0 0%
Works
(2) Earth Works 425 10,720 0 0%
(3) Pile Work 0 0 0 0%
(4) Structural Works 16,050 404,523 276,000 68%
(5) Exterior Finishing
19,189 483,642 0 0%
Work
(6) Interior Finishing
21,975 553,856 0 0%
Work
2 Facilities Works
26,349 664,106 0 0%
(1)+(2)+(3)
(1) Electrical Facilities
12,800 322,613 0 0%
Work 1+2+3+4
1. Power Supply and
Main Feeder
5,609 141,359 0 0%
Wiring System
Work
2. Lighting & Outlet
1,821 45,887 0 0%
socket
3. Light Electrical
5,371 135,367 0 0%
System
4. Photovoltaic
0 0 0 0%
System
(2) Water Supply and
Drainage System 4,942 124,567 0 0%
Work 1
1. Water Supply and
4,942 124,567 0 0%
Drainage System
(3) Air-Conditioning and
Mechanical
8,607 216,926 0 0%
Ventilation System
Work 1+2
1. Air-Conditioning
and Mechanical
6,331 159,567 0 0%
Ventilation
System
2. Fire Protection
2,276 57,359 0 0%
System
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3 Other Works (1)+(2) 21,069 531,028 0 0%

(1) Special Facilities 100
8,729 220,000 220,000
Work 1 %
1. Elevating
8,729 220,000 0 0%
Machine Work
(2) Landscape Work
12,340 311,028 0 0%
1+2+3
1. Architecture・Civil
8,418 212,158 0 0%
Engineering
2. Electrical Facility 2,724 68,660 0 0%
3. Air Conditioning
and Water
1,199 30,210 0 0%
Supply/Drainage
System
B. Indirect Construction Cost
14,520 365,956 0 0%
1+2
Direct Construction Cost x 3.25%.
1 Common Temporary Cost 3,474 87,547 0 0% Based on Architectural Construction
Cost Standard of MLIT
(Direct Construction Cost + Common
Temporary Cost) x 10.01%. Based on
2 Field Expenses 11,046 278,409 0 0%
Architectural Construction Cost
Standard of MLIT
(Direct Construction Cost + Common
C. Administrative Expenses Temporary Cost + Field Expenses) x
10,210 257,322 0 0%
8.41%. Based on Architectural
Construction Cost Standard of MLIT
9.5.2 Floor Area and Cost Estimation of P&Rs
There are the three locations of the P&R stations and each site area is shown in below.
• Welikada Station: Site Area is approximately 6,500m2

• Sethsiripaya Station: Site Area: approximately 11,200m2
• Lumbini Temple Station: Site Area: approximately 10,400m2
The facility’s functions of the P&R are Local Bus Stop, Monorail Station, Taxi Stand,
Drop-off/Pick-up Area, Parking and Station Plaza. Gross floor areas of the P&R stations are
summarised in Table 9.5.3, and the construction cost of the three P&R Stations are estimated and
summarised in Table 9.5.4
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Table 9.5.3 Gross Floor Area of the P&R Stations
Area/Component FL Floor Area(m2)

Welikada
Bus Bays, Waiting Pool Paving 51.0
Pedestrian Deck 1FL 210.0
Sethsiripaya
Lumbini Temple
Pedestrian Area, Walkway, Plaza Paving 1815.5
Landscape and Others Paving 1,123.8
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Table 9.5.4 Summary of the Estimated Construction Cost of the P&R Stations
Amount (th. YEN)

Item Note
Lunbini
Welikada Temple Sethsiripaya
Total Construction Cost 238,234 220,678 245,876 Total Floor Space: 28,104 sqm
I. Architectural
Construction Cost 238,234 220,678 245,876 Total Floor Space: 28,104 sqm
A+B+C
A. Direct Construction Cost
193,469 179,213 199,676
1+2+3
(1) Direct Temporary Works
(2) Earth Works
(3) Pile Work
1 Architectural Work 0 0 0
(4) Structural Works
(5) Exterior Finishing Work
(6) Interior Finishing Work
(1) Electrical Facilities Work
(2) Water Supply and Drainage
(3) System Work
2 Facilities Works 0 0 0
(4) Air-Conditioning and
Mechanical Ventilation
System Work
3 Other Works (1)+(2) 193,469 179,213 199,676
(1) Special Facilities
37,500 0 0
Work 1
1. Elevating
37,500 0 0
Machine Work
(2) Landscape Work
155,969 179,213 199,676
1+2+3
1. Architecture・
108,781 104,434 119,296
Civil Engineering
2. Electrical Facility 32,770 51,930 55,820
3. Air Conditioning
and Water
14,418 22,849 24,560
Supply/Drainage
System
B. Indirect Construction Cost
26,284 24,346 27,126
1+2
Direct Construction Cost x 3.25%.
1 Common Temporary
6,288 5,824 6,489 Based on Architectural Construction
Cost
Cost Standard of MLIT
(Direct Construction Cost +
Common Temporary Cost) x
2 Field Expenses 19,996 18,522 20,637
10.01%, Based on Architectural
Construction Cost Standard of MLIT
(Direct Construction Cost +
Common Temporary Cost + Field
C. Administrative Expenses 18,481 17,119 19,074 Expenses) x 8.41%, Based on
Architectural Construction Cost
Standard of MLIT
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CHAPTER 10 Economic Evaluation
10.1 Overview
This chapter evaluates the economic feasibility of the monorail line between Kotahena and
IT-park via Malabe Line (Line 1), the line between National Hospital and Kollupitiya (Line 2),
multi-modal centre at Malabe (MMC) and, park and ride facilities (P&R). Economic evaluation
examines the economic feasibility of a project through cost-benefit analysis from a viewpoint of
the national economy, where the quantified project benefits are compared with the economic cost
of the project. In addition, the economic evaluation of the entire SKYTRAIN project including
the monorail, the MMC, the P&Rs and the MmTH at Pettah area was conducted to improve the
financial viability as an option.
10.2 Comparison of Benefits and Costs

10.2.1 “With Project” and “Without Project” Assumptions
In a cost-benefit analysis, two scenarios, “With Project” and “Without Project”, are assumed in
order to distinguish and compare the benefits and costs resulting from the project implementation.
The two scenarios are assumed as follows:
1. The integrated transportation system including the monorail Project in the Western Province
will be established by the target year of the Project. In this economic evaluation, the
scenario of the transportation master plan is regarded as the “With Project”.
2. On the other hand, the “Without Project” scenario is formulated under the assumption that
the monorail project is eliminated from the “With Project” scenario.
10.2.2 Economic Costs of the Project
Total project cost of the monorail project consists of the construction work cost, rolling stock
procurement cost, cost for consulting services, physical contingency and O&M cost of the project
as described in Chapter 8. It is also assumed that additional cost for the monorail rolling stock
and the depot will be procured in 2030 to meet the increased demand. They were estimated in
constant 2014 prices, identified by each category of foreign/local cost for the economic evaluation
and then converted into economic prices for the economic evaluation under the assumptions
described below.
10.2.3 Economic Benefits of the Project
Although there are a variety of direct and indirect benefits (quantitative and qualitative) derived
from the monorail project implementation, generally speaking, the beneficiaries of a transit system
are four groups: transit passengers, road users in the metropolitan area, landowners along the line,
and all of the national and global communities.
Passengers of the monorail will receive direct benefit from fast, comfortable, reliable and safe
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public transport services in exchange for the fares that they pay. Road users, including private
vehicle users, bus passengers, and commercial freight vehicle users in the Western Province, can
enjoy less congested roads due to the monorail project. The whole national and global
community can receive the benefit of the reduction of greenhouse gas emission, noise, pollutants
and traffic accidents. The route-side landowners enjoy the increase in the value of their
properties due to their proximity to the stations.
In principle, among those benefits, benefits from savings in vehicle operating cost (VOC) and
passenger travel time cost (TTC) are treated as quantitative benefits in conventional economic
analysis of urban transportation. In this economic evaluation, cost savings in VOC, TTC, and
reduction in loss due to traffic accidents are estimated as quantitative benefits comparing “with the
monorail project'” scenario with “without the monorail project” scenario.
10.3 Assumptions for the Economic Evaluation

10.3.1 General Assumptions for the Economic Evaluation
The following are the assumptions for the general conditions in the economic evaluation.
a) Base Year: Year 2014
b) Project Life: 30 years after the start of operating services of the monorail considering the life
period of the infrastructures and rolling stocks.
c) Life Period: Life periods of the facilities are estimated as the following years based on the
physical life period of the facility.
Civil works, structures and buildings: 50 years
Rolling stock: 30 years
d) Replacement cost of the facilities and rolling stock is estimated based on its life period.
e) Financial and Economic Costs: Considering value added tax other tax duties as well as
subsidies from the government which should not be counted as economic cost for economic
analysis, financial costs of the initial investment are converted into economic cost. The
conversion factor of 0.906, the investment conversion factor proposed in "Assessing Public
Investment in the Transport Sector" by the Department of National Planning, Ministry of
Finance and Planning, was utilised for the initial investment. It is assumed that tax
exemption can be applied for a part of imported materials for the initial investment. On the
other hand, average conversion factor of 0.785 from the same source is utilised for operation
and maintenance cost as majority of materials and services can be procured in the country.
These conversion factors are commonly utilised for the evaluation of transport projects in Sri
Lanka. Therefore, the economic cost of the Project is consistent with other projects in
transport sector.
f) Discount Rate: A discount rate of 12% is used considering the description in "Assessing
Public Investment in the Transport Sector 2001" by the Ministry of Finance and Planning as
well as other projects in the transport sector in Sri Lanka.
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g) Inflation: Inflation is not taken into account either in the benefit or cost estimates during the
evaluation period.
h) Foreign Exchange Rate: The foreign exchange rate is fixed at the following rate as of 2014
and the shadow exchange rate is not considered.
US Dollar 1.00 is equivalent to LKR 130.4550, the monthly average exchange rates of May
2014, according to the Central Bank of Sri Lanka. US Dollar 1.00 is equivalent to 101.79
JPY, the monthly median exchange rates of Tokyo market of May 2014 according to Bank of
Japan.
i) As mentioned in Chapter 3, fare level of the monorail is assumed to be as same as current

normal bus fare.
10.3.2 Basic Calculation of Unit Value for Benefit Estimate
(1) Vehicle Operation Cost (VOC) Reduction due to the Monorail
The unit vehicle operating cost (VOC) is assumed based on "Assessing Public Investment in the
Transport Sector 2001" by the Department of National Planning, Ministry of Finance and
Planning. The price was converted to 2014 price based on the Colombo Consumer Price Index
(CPI) of the transport sector. Unit vehicle operating cost is estimated by the representative
vehicles and operating speed in 2014 prices shown in Table 10.3.1.
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Table 10.3.1 Unit Vehicle Operating Cost for Economic Analysis

Velocity Motorcycle 3 Wheeler Car & Van Medium & Medium Large 3-Axle
(km/h) Large Bus 2-Axle Lorry Lorry
& Large
2-Axle Lorry
10 18.1 47.4 68.1 152.5 126.8 184.0
15 15.8 39.0 57.3 116.2 98.0 148.0
20 14.7 34.9 52.1 97.9 83.5 130.0
25 14.1 32.4 49.1 87.0 74.8 119.2
30 13.7 30.7 47.1 79.8 69.1 112.1
35 13.5 29.6 45.7 74.7 65.2 107.1
40 13.3 28.7 44.8 71.0 62.3 103.5
45 13.1 28.0 44.1 68.3 60.2 100.9
50 13.2 27.7 43.9 66.3 58.7 99.0
55 13.3 27.5 43.7 64.7 57.5 97.7
60 13.3 27.3 43.7 63.7 56.8 96.7
65 13.4 27.2 43.6 62.9 56.2 96.2
70 13.5 27.1 43.7 62.4 56.0 96.0
75 13.6 27.0 43.8 62.2 55.9 96.1
80 13.6 27.0 43.9 62.3 56.1 96.5
85 13.7 27.0 44.0 62.5 56.5 97.2
90 13.8 27.0 44.2 63.0 57.1 98.2
95 13.9 27.0 44.4 63.7 57.9
100 14.0 27.0 44.6 64.6 58.8
Unit: LKR / km Note: Prices were adjusted for 2014 economic price. Vehicle categories are summarised.
Source: Based on "Assessing Public Investment in the Transport Sector 2001" by the Ministry of Finance and Planning
(2) Travel Time Cost Reduction due to the Monorail
Hourly travel time value of passengers was estimated by three income groups based on the results
of the Home Visit Survey conducted in 2013 for the CoMTrans Project and the Household Income
and Expenditure Survey 2012 by the Department of Census and Statistics. Income categories
were identified by the Home Visit Survey considering vehicle ownership and mode choice
characteristics. The mean household income was estimated by the Household Income and
Expenditure Survey 2012. It is assumed that the future value of time by income class is
consistent throughout the analysis period. Table 10.3.2 presents the time value of workers
average trip for three income categories in 2014 prices. Average passenger occupancy rates of
each type of vehicle are shown in Table 3.1.11.
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Table 10.3.2 Hourly Value of Time by Income Group

Income Mean Avg. No of Monthly Social Time Work Avg.
Level 1) Household Workers Working Security Value of Trip Time
Income (LKR) in Hours 4) & Work Ratio 6) Value
2) Household Benefits Trip (LKR/h)
3) 5) (LKR/h) 7)
Group A 195,267 1.9 140 30% 953 23% 485
Group B 59,588 1.72 140 30% 322 16% 143
Group C 25,183 1.2 140 30% 195 15% 85
All 73,807 1.36 140 30% 502 16% 226
Source: CoMTrans Study Team, Avg. Stands for” average”.
Note: 1) Group C is less than LKR 40,000. Group B is LKR 40,000 - 79,999. Group A is LKR 80,000 and above.
2) Mean household incomes were estimated from the Household Income and Expenditure Survey 2012 by the
Department of Census and Statistics.
3) Average number of workers in a household was estimated from the Home Visit Survey of the CoMTrans Project that
was conducted in 2013
4) 20 working days are assumed per month considering public holidays. 7 working hours are assumed excluding rest
time during work hours.
5) Including medical and employment insurance payments from employer, benefits, allowances and bonuses
6) According to the Home Visit Survey of the CoMTrans project conducted in 2013
7) Work trips are multiplied by 1.2 considering company overhead. Non-work trips were multiplied by 0.3 referring to
the ”Handbook on Economic Analysis of Investment Operations”, The World Bank, 1998
Average time value of freight vehicles are estimated from freight value and interest rate. The
estimated time value is shown in Table 10.3.3.
Table 10.3.3 Time Value of Freight Vehicles

Vehicle Type Truck Trailer
(10t) (25t)
Freight Value (LKR/veh) 1) 5,094,351 12,735,878
Interest Value 10% (LKR/veh) 2) 509,435 1,273,587
Time Value of Goods (LKR/veh-h) 203 510
Time Value of Freight Vehicle
203 510
(LKR/veh-h)
Source 1) "Study on the outer circular highway of the city of Colombo, 2000". Adjusted for 2014
economic price
Source 2) "Economic and social statistics of Sri Lanka, 2014"
(3) Reduction of Accident Costs due to the Monorail
Accident loss was estimated by the method proposed in "Assessing Public Investment in the
Transport Sector 2001" by the Ministry of Finance and Planning. Assumptions on accident loss
estimation are shown in Table 10.3.4. Unit accident cost per vehicle-kilometre in 1999 was
converted to 2014 value. It is assumed that traffic accidents will decline 4% every year.
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Table 10.3.4 Assumptions on Accident Loss

Accident Cost 1) 0.396 LKR/vehicle-km in 1999 values
Accident Cost 1.537 LKR/vehicle-km in 2014 values
Annual decline in accident rate 1) 4%
Accident rate reduction in '35 41% '35/'14
Accident Cost in 2035 0.626 LKR/vehicle-km in 2014 values
Source 1): Based on "Assessing Public Investment in the Transport Sector 2001" by Ministry of Finance and Planning
(4) Estimate of benefit by reduction of GHG emission
Environmental improvement due to decrease of GHG emission is also considered as a benefit of

the monorail system. While there are several greenhouse gases, carbon dioxide (CO2) was
considered for the analysis due to data availability. Unit emission factors of carbon dioxide by
vehicle type are shown in Table 10.3.5.
Table 10.3.5 Carbon Dioxide Emission Factor by Vehicle Type

Vehicle Type Emission Factor (g/km)
Cars Diesel 275
Cars Petrol 200
Cars Gas 175
Vans Diesel 400
Vans Petrol 285
Motorcycle Petrol 60
Land Vehicle Diesel 113
Taxi(3-Wheeler Petrol) 130
Medium Bus Diesel 788
Bus Diesel 800
Lorry/Truck Diesel 800
Lorry Petrol 285
Source: L.U.Preethika and Saman Bandara, Department of Civil Engineering University of Moratuwa
Proceedings of the First National Symposium on Air Resource Management in Sri Lanka - 2004 of the Air MAC -
Ministry of Environment & Natural Resources
http://cleanairinitiative.org/portal/sites/default/files/60272_presentation.pdf
The emission of carbon dioxide (CO2) was converted to the price based on the annual average
European Union Allowance (EUA) Price. As of 2012 the unit price was 18.8 USD/ton according
to “State and Trends of the Carbon Market 2012”, The World Bank. Available on the internet
from the link below.
http://siteresources.worldbank.org/INTCARBONFINANCE/Resources/State_and_Trends_2012_Web_Optimised_1903
5_Cvr&Txt_LR.pdf
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10.4 Economic Evaluation

10.4.1 Estimation of Benefits
The benefit of vehicle operating cost is estimated as the difference of vehicle operating cost
between “With Project” and “Without Project”. The vehicle operating cost is derived from the
computed daily vehicle-kilometres for each operating speed and the unit vehicle operating cost for
each speed by vehicle type. The daily vehicle-kilometres for both cases of “With Project” and
“Without Project” are obtained as the traffic assignment results in the transport demand forecast.
The benefit of passenger travel time cost is estimated as the difference in passenger travel time
cost between “With Project” and “Without Project”. The passenger time cost is derived from the
computed daily passenger-hours and the unit passenger time cost of the three income groups by
vehicle type. The daily passenger-hours for both cases of “With Project” and “Without Project”
are obtained from traffic assignment results.
The benefit of reduction in traffic accidents are also estimated as the difference of volume of
accident loss between “With Project” and “Without Project”.
10.4.2 Cost Benefit Analysis
The Economic Internal Rate of Return (EIRR) was estimated at 16.7%. The net present value is
estimated at 70.7 billion rupees. Cost benefit ratio was 1.61. The economic cost and benefit
stream is shown in the Table 10.4.1. It should be noted that there are benefits which cannot be
counted on a monetary basis.
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Table 10.4.1 Economic Cost and Benefit Stream

Unit: LKR billion (2014 Economic Price)
Cash - Out Cash - In
Yrs
Investment Net Cash
Year after
M onorail M onorail Operation & Total VOC TTC CO2 Accident Total Flow
ope. M alabe M M C Park & Ride
Construction Rolling Stock M aintenance
2014 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2015 1.93 0.00 0.00 0.00 0.00 1.93 0.00 0.00 0.00 0.00 0.00 -1.93
2016 1.93 0.00 0.00 0.00 0.00 1.93 0.00 0.00 0.00 0.00 0.00 -1.93
2017 36.54 6.41 0.08 0.00 0.00 43.03 0.00 0.00 0.00 0.00 0.00 -43.03
2018 39.63 6.41 0.08 0.07 0.00 46.18 0.00 0.00 0.00 0.00 0.00 -46.18
2019 39.66 6.41 1.67 0.72 0.00 48.46 0.00 0.00 0.00 0.00 0.00 -48.46
2020 26.79 6.41 1.67 1.38 0.00 36.26 0.00 0.00 0.00 0.00 0.00 -36.26
2021 1 0.00 0.00 0.00 0.00 1.79 1.79 5.62 16.89 0.02 0.04 22.57 20.78
2022 2 0.00 0.00 0.00 0.00 1.79 1.79 5.34 17.65 0.02 0.03 23.05 21.26
2023 3 0.00 0.00 0.00 0.00 1.79 1.79 5.05 18.42 0.02 0.03 23.52 21.74
2024 4 0.00 0.00 0.00 0.00 3.38 3.38 4.77 19.19 0.02 0.03 24.00 20.62
2025 5 0.00 11.75 0.00 0.00 4.32 16.07 4.49 19.95 0.02 0.02 24.48 8.41
2026 6 0.00 0.00 0.00 0.00 4.32 4.32 6.04 26.47 0.03 0.03 32.57 28.25
2027 7 0.00 0.00 0.00 0.00 4.32 4.32 7.59 32.99 0.03 0.03 40.65 36.33
2028 8 0.00 0.00 0.00 0.00 4.32 4.32 9.14 39.51 0.04 0.04 48.73 44.41
2029 9 0.00 0.00 0.00 0.00 4.32 4.32 10.70 46.03 0.04 0.05 56.81 52.49
2030 10 2.97 9.61 0.00 0.00 5.20 17.78 12.25 52.55 0.05 0.05 64.90 47.12
2031 11 0.00 0.00 0.00 0.00 5.20 5.20 13.80 59.07 0.06 0.06 72.98 67.78
2032 12 0.00 0.00 0.00 0.00 5.20 5.20 15.35 65.58 0.06 0.06 81.06 75.87
2033 13 0.00 0.00 0.00 0.00 5.20 5.20 16.91 72.10 0.07 0.07 89.14 83.95
2034 14 0.00 0.00 0.00 0.00 5.20 5.20 18.46 78.62 0.07 0.07 97.23 92.03
2035 15 0.00 0.00 0.00 0.00 5.20 5.20 20.01 85.14 0.08 0.08 105.31 100.11
2036 16 0.00 0.00 0.00 0.00 5.20 5.20 20.01 85.14 0.08 0.08 105.31 100.11
2037 17 0.00 0.00 0.00 0.00 5.20 5.20 20.01 85.14 0.08 0.08 105.31 100.11
2038 18 0.00 0.00 0.00 0.00 5.20 5.20 20.01 85.14 0.08 0.08 105.31 100.11
2039 19 0.00 0.00 0.00 0.00 5.20 5.20 20.01 85.14 0.08 0.08 105.31 100.11
2040 20 0.00 0.00 0.00 0.00 5.20 5.20 20.01 85.14 0.08 0.08 105.31 100.11
2041 21 0.00 0.00 0.00 0.00 5.20 5.20 20.01 85.14 0.08 0.08 105.31 100.11
2042 22 0.00 0.00 0.00 0.00 5.20 5.20 20.01 85.14 0.08 0.08 105.31 100.11
2043 23 0.00 0.00 0.00 0.00 5.20 5.20 20.01 85.14 0.08 0.08 105.31 100.11
2044 24 0.00 0.00 0.00 0.00 5.20 5.20 20.01 85.14 0.08 0.08 105.31 100.11
2045 25 0.00 0.00 0.00 0.00 5.20 5.20 20.01 85.14 0.08 0.08 105.31 100.11
2046 26 0.00 0.00 0.00 0.00 5.20 5.20 20.01 85.14 0.08 0.08 105.31 100.11
2047 27 0.00 0.00 0.00 0.00 5.20 5.20 20.01 85.14 0.08 0.08 105.31 100.11
2048 28 0.00 0.00 0.00 0.00 5.20 5.20 20.01 85.14 0.08 0.08 105.31 100.11
2049 29 0.00 0.00 0.00 0.00 5.20 5.20 20.01 85.14 0.08 0.08 105.31 100.11
2050 30 -0.99 0.00 0.00 0.00 5.20 4.21 20.01 85.14 0.08 0.08 105.31 101.10
Total 148.5 47.0 3.5 2.2 139.5 340.6 455.7 1,927.3 1.8 1.9 2,386.6 2,046.0
NPV 81.3 18.3 1.7 1.0 13.8 116.1 36.4 150.0 0.2 0.2 186.7 70.7
B/C discount rate 12.0% 1.61
EIRR 16.7%
Note: ”ope.” stands for ”operation”.
10.4.3 Sensitivity Analysis
The effect of variations in the costs and the benefits on the EIRR is examined, when the cost
increases by 10% and the benefits decrease by 10%, simultaneously. Table 10.4.2 examines the
sensitivity of the EIRR, NPV and B/C.
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Table 10.4.2 Sensitivity Analysis Results

Yrs Cost +10% Benefit -10% Cost+10% & Benefit -10%
Year after Net Cash Net Cash Net Cash
Cash-Out Cash-In Cash-Out Cash-In Cash-Out Cash-In
ope. Flow Flow Flow
2014 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2015 2.13 0.00 -2.13 1.93 0.00 -1.93 2.13 0.00 -2.13
2016 2.13 0.00 -2.13 1.93 0.00 -1.93 2.13 0.00 -2.13
2017 47.33 0.00 -47.33 43.03 0.00 -43.03 47.33 0.00 -47.33
2018 50.80 0.00 -50.80 46.18 0.00 -46.18 50.80 0.00 -50.80
2019 53.31 0.00 -53.31 48.46 0.00 -48.46 53.31 0.00 -53.31
2020 39.88 0.00 -39.88 36.26 0.00 -36.26 39.88 0.00 -39.88
2021 1 1.97 22.57 20.60 1.79 20.31 18.52 1.97 20.31 18.34
2022 2 1.97 23.05 21.08 1.79 20.74 18.95 1.97 20.74 18.77
2023 3 1.97 23.52 21.56 1.79 21.17 19.38 1.97 21.17 19.21
2024 4 3.72 24.00 20.28 3.38 21.60 18.22 3.72 21.60 17.88
2025 5 17.68 24.48 6.81 16.07 22.03 5.96 17.68 22.03 4.36
2026 6 4.75 32.57 27.81 4.32 29.31 24.99 4.75 29.31 24.56
2027 7 4.75 40.65 35.90 4.32 36.58 32.26 4.75 36.58 31.83
2028 8 4.75 48.73 43.98 4.32 43.86 39.54 4.75 43.86 39.11
2029 9 4.75 56.81 52.06 4.32 51.13 46.81 4.75 51.13 46.38
2030 10 19.56 64.90 45.34 17.78 58.41 40.63 19.56 58.41 38.85
2031 11 5.72 72.98 67.26 5.20 65.68 60.48 5.72 65.68 59.96
2032 12 5.72 81.06 75.35 5.20 72.96 67.76 5.72 72.96 67.24
2033 13 5.72 89.14 83.43 5.20 80.23 75.03 5.72 80.23 74.51
2034 14 5.72 97.23 91.51 5.20 87.50 82.31 5.72 87.50 81.79
2035 15 5.72 105.31 99.59 5.20 94.78 89.58 5.72 94.78 89.06
2036 16 5.72 105.31 99.59 5.20 94.78 89.58 5.72 94.78 89.06
2037 17 5.72 105.31 99.59 5.20 94.78 89.58 5.72 94.78 89.06
2038 18 5.72 105.31 99.59 5.20 94.78 89.58 5.72 94.78 89.06
2039 19 5.72 105.31 99.59 5.20 94.78 89.58 5.72 94.78 89.06
2040 20 5.72 105.31 99.59 5.20 94.78 89.58 5.72 94.78 89.06
2041 21 5.72 105.31 99.59 5.20 94.78 89.58 5.72 94.78 89.06
2042 22 5.72 105.31 99.59 5.20 94.78 89.58 5.72 94.78 89.06
2043 23 5.72 105.31 99.59 5.20 94.78 89.58 5.72 94.78 89.06
2044 24 5.72 105.31 99.59 5.20 94.78 89.58 5.72 94.78 89.06
2045 25 5.72 105.31 99.59 5.20 94.78 89.58 5.72 94.78 89.06
2046 26 5.72 105.31 99.59 5.20 94.78 89.58 5.72 94.78 89.06
2047 27 5.72 105.31 99.59 5.20 94.78 89.58 5.72 94.78 89.06
2048 28 5.72 105.31 99.59 5.20 94.78 89.58 5.72 94.78 89.06
2049 29 5.72 105.31 99.59 5.20 94.78 89.58 5.72 94.78 89.06
2050 30 4.63 105.31 100.68 4.21 94.78 90.57 4.63 94.78 90.15
Total 374.7 2,386.6 2,012.0 340.6 2,148.0 1,807.4 374.7 2,148.0 1,773.3
NPV 127.7 186.7 59.0 116.1 168.0 52.0 127.7 168.0 40.4
B/C 1.46 1.45 1.32
EIRR 15.7% 15.6% 14.6%
Note: ”ope.” stands for ”operation”.
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The EIRR of the project is 14.6 % which is higher than the discount rate, 12%, when the cost
increases by 10% and the benefit decreases by 10%, simultaneously.
In addition, there is a variety benefits derived from the monorail project implementation, although
they are not included in the benefits of this economic evaluation. Land value along the monorail
is also expected to increase “With Project”. However it is difficult to distinguish and estimate
the increased value solely due to monorail project implementation, since there are a variety of
factors to determine the land prices in addition to monorail project implementation. The
monorail project will reduce emission of air pollutants such as carbon monoxide, nitrogen oxide,
sulphur oxide, and suspended particle matter from private vehicles. This can improve the health
of residents in the Western Province. The project will also contribute to reduce the emission of
greenhouse gas which has an impact on the global warming. Taking these benefits into
consideration, the monorail project is an economically viable project.
10.5 Economic Evaluation with the Multi-Modal Transport Hub (MmTH)

Since the integrated implementation of the monorail and the multi-modal transport hub (MmTH)
will improve financial viability, economic benefits of the entire SKYTRAIN project including
MmTH at Pettah area was also estimated as an optional case.
10.5.1 Method of Estimating MmTH Benefits
The economic benefits of MmTH are considered as the following.
1) Reduction of passenger transfer time, by connecting each transport mode in a short

distance
2) Reduction of travel time and vehicle operating cost, by mitigating traffic congestion
3) Reduction of transfer time, by improving the walking speed
4) Reduction of waiting time, by installing automatic ticket machines
5) Reduction of traffic accidents
Of which, 1) and 2) are adopted for the evaluation as they are easily numerically analysed
(1) Reduction of Transfer Time due to Multi-Modal Transport Hub (MmTH)
An optional benefits arise from the multi-modal transport hub (MmTH) at Pettah were estimated
in the method below. In the current status at Fort and Pettah area, boarding and alighting points
of each transport mode are dispersed. For example, the distance between the Fort railway station
and the Bastian Mawatha bus terminal is about 800 meters, and it takes roughly 10 minutes.
By installing MmTH, the boarding and alighting points of each transport mode, including new
transport systems, will be focused in one place. The average transfer time between each mode
will be decreased and it will bring economic and social benefits.
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Assumptions
The estimation of the benefit is based on following assumptions.
• Value of transfer time by income level is twice1 the normal value of time by income level
(for details, see Economic Benefits of the Monorail in part I)
• Average walking speed is 4 km/hour in both “with case” and “without case”
• Assumed walking speed between each floor, using steps or the escalator, is half of normal
walking speed
• Number of operating days is 313 which is calculated with the assumption that Saturday
and Sunday are counted as half days
• Both in the “with case” and “without case”, the Monorail station and BRT station are
assumed to be at the same location
Table 10.5.1 shows the transfer time in the “with” and “without” cases. Transfer time in the
“with case” is calculated based on the measured distance of transfer. The values are the median
of minimum and maximum transfer time. Transfer time in the “without case” is based on the
interview survey, which was conducted to capture the transfer behaviour of passengers around
Fort station. The transfer times between bus and monorail as well as bus and BRT are assumed
to be the same as bus and railway in the “without case”. Because the locations of the railway,
monorail and BRT stations are assumed to be the same in the “with case” and “without case”, the
transfer time between these modes is the same.
Table 10.5.1 Transfer Time between each Transport Mode

With Case (min)
From/To Bus Railway Monorail BRT
Bus 4.0 7.1 5.1 4.4
Railway 4.5 1.4 3.5 4.4
Monorail 2.7 3.5 0.0 2.6
BRT 2.3 4.4 2.6 1.9
Without Case (min)

Bus 7.1 8.7 8.7 8.7
Railway 7.7 1.4 3.5 4.4
Monorail 7.7 3.5 0.0 2.6
BRT 7.7 4.4 2.6 1.9
1
Reference: Evaluation Manual for Railway Projects 2012 Revision, Ministry of Land, Infrastructure, Transport and
Tourism ( Name in Japanese is ”Tetsudou Project no Hyouka Manual (2012 Kaitei ban)”
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Table 10.5.2 shows the estimated transfer demand in the future. The numbers are from the result
of the traffic demand forecast in the CoMTrans master plan. While the numbers of transfers
between the railway, monorail and BRT do not affect the benefit, they are abbreviated here.
Table 10.5.2 Transfer Demand in 2020, 2025 and 2035 (pax./day)

Bus 41,330 10,821 2,456 14,244
2020 Railway 10,821 - 4,372 2,789
Monorail 2,456 4,372 - 1,026
BRT 14,244 2,789 1,026 -
Bus 38,454 10,044 2,700 14,704
2025 Railway 10,044 - 3,939 2,600
Monorail 2,700 3,939 - 1,356
BRT 14,704 2,600 1,356 -
Bus 13,837 14,052 1,531 13,001
2035 Railway 14,052 - 8,386 6,527
Monorail 1,531 8,386 - 4,996
BRT 13,001 6,527 4,996 -
(2) Reduction of TTC and VOC by Mitigating Traffic Congestion due to MmTH
Many pedestrians and transferring passengers cross the Olcott Mawatha, the 4 lane road located
on the north side of the Fort station. The Capacity of the road is reduced due to the pedestrian
crossings and traffic lights for pedestrians. In addition to that, a number of buses randomly stop
in front of the Fort station while passengers are boarding and alighting. This also reduces the
capacity of the Olcott Mawatha (Figure 10.5.1). Even today, the road is chronically congested in
the evening peak time.
After the installation of the MmTH, the average vehicle speed will be improved considering the
following factors.
• The mixture of the traffic line and pedestrian flow line will be resolved, while the most
part of the pedestrian flow lines will be elevated to the 2nd floor
• Boarding and alighting will be managed inside the MmTH, not on the road side
• The number of lanes will be increased from 4 lanes to 6 lanes
This mitigation of traffic congestion will lead to the reduction of travel time and vehicle operating
cost of drivers. And it can be counted as the economic and social benefits of the MmTH.
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Figure 10.5.1 Traffic Condition of the Olcott Mawatha in the Evening Time
Assumptions
The estimation of the benefit is based on the following assumptions.
• The average speed by time range is calculated with a BPR function with the most popular
parameter setting (alpha: 0.15 and beta : 4.0)
• Traffic demand for 2020, 2025 and 2035 is from the traffic assignment in the master plan
• Traffic demand is divided into 1 hour periods, using the hourly fluctuation data from the
traffic count survey
• The length of the target road link is 1.2km (World Market～Technical College)
• Applied capacity and max speed of the road link
2
- With case (2,700 pcu/direction hour, 60km/h)
- Without case (887 pcu/direction hour, 45 km/h)
These are half of the normal 4 lane capacity3, considering the effect of pedestrians
crossing and buses boarding and alighting
• The vehicle operation cost is the same as that in the calculation of economic benefit of the
monorail (for details, see Economic Benefits of the Monorail in part I)
• The BPR function is applied to traffic demand in each time range (1 hour period from 6:00
to 22:00).
10.5.2 Cost Benefit Analysis
The project costs for the multi-modal transport hub (MmTH) were estimated based on the concept
proposed in the CoMTrans master plan, and, the cost benefit analysis was conducted. The
Economic Internal Rate of Return (EIRR) was estimated at 15.2%. The net present value is
estimated at 57.6 billion rupees. Cost benefit ratio was 1.39. The economic cost and benefit
stream is shown in the Table 10.5.3. It should be noted that there are benefits which cannot be
counted on a monetary basis.
2
CoMTrans standard capacity and maximum speed for 6 lane roads in urban areas
3
CoMTrans standard capacity and maximum speed for 4 lane roads in urban areas
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Table 10.5.3 Economic Cost and Benefit Stream

Cash - Out Cash - In
Yrs
Investment Monorail MMTH Net Cash
Year after
Monorail Monorail Malabe Park & M mTH Total Transfer TTC VOC Total Flow
ope. O&M VOC TTC CO2 Accident
Cnst. R.S. MM C Ride Initial Inv. Benefit Cng. Cng.
2014 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2015 1.93 0.00 0.00 0.00 1.17 0.00 3.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -3.10
2016 1.93 0.00 0.00 0.00 1.17 0.00 3.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -3.10
2017 36.54 6.41 0.08 0.00 0.58 0.00 43.61 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -43.61
2018 39.63 6.41 0.08 0.07 16.47 0.00 62.65 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -62.65
2019 39.66 6.41 1.67 0.72 16.01 0.00 64.47 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -64.47
2020 26.79 6.41 1.67 1.38 16.01 0.76 53.02 0.00 0.00 0.00 0.00 3.87 0.13 0.04 4.04 -48.99
2021 1 0.00 0.00 0.00 0.00 0.00 2.55 2.55 5.62 16.89 0.02 0.04 3.51 0.13 0.04 26.25 23.70
2022 2 0.00 0.00 0.00 0.00 0.00 2.55 2.55 5.34 17.65 0.02 0.03 3.16 0.13 0.04 26.37 23.82
2023 3 0.00 0.00 0.00 0.00 0.00 2.55 2.55 5.05 18.42 0.02 0.03 2.80 0.13 0.04 26.50 23.95
2024 4 0.00 0.00 0.00 0.00 0.00 4.14 4.14 4.77 19.19 0.02 0.03 2.44 0.14 0.04 26.62 22.47
2025 5 0.00 11.75 0.00 0.00 0.00 5.08 16.83 4.49 19.95 0.02 0.02 2.09 0.14 0.04 26.74 9.91
2026 6 0.00 0.00 0.00 0.00 0.00 5.08 5.08 6.04 26.47 0.03 0.03 2.54 0.14 0.03 35.28 30.20
2027 7 0.00 0.00 0.00 0.00 0.00 5.08 5.08 7.59 32.99 0.03 0.03 3.00 0.14 0.03 43.82 38.74
2028 8 0.00 0.00 0.00 0.00 0.00 5.08 5.08 9.14 39.51 0.04 0.04 3.46 0.13 0.03 52.35 47.27
2029 9 0.00 0.00 0.00 0.00 0.00 5.08 5.08 10.70 46.03 0.04 0.05 3.91 0.13 0.03 60.89 55.81
2030 10 2.97 9.61 0.00 0.00 0.00 5.96 18.54 12.25 52.55 0.05 0.05 4.37 0.13 0.03 69.43 50.89
2031 11 0.00 0.00 0.00 0.00 0.00 5.96 5.96 13.80 59.07 0.06 0.06 4.83 0.13 0.03 77.97 72.01
2032 12 0.00 0.00 0.00 0.00 0.00 5.96 5.96 15.35 65.58 0.06 0.06 5.29 0.12 0.03 86.50 80.54
2033 13 0.00 0.00 0.00 0.00 0.00 5.96 5.96 16.91 72.10 0.07 0.07 5.74 0.12 0.03 95.04 89.08
2034 14 0.00 0.00 0.00 0.00 0.00 5.96 5.96 18.46 78.62 0.07 0.07 6.20 0.12 0.03 103.58 97.62
2035 15 0.00 0.00 0.00 0.00 0.00 5.96 5.96 20.01 85.14 0.08 0.08 6.66 0.12 0.03 112.11 106.16
2036 16 0.00 0.00 0.00 0.00 0.00 5.96 5.96 20.01 85.14 0.08 0.08 6.66 0.12 0.03 112.11 106.16
2037 17 0.00 0.00 0.00 0.00 0.00 5.96 5.96 20.01 85.14 0.08 0.08 6.66 0.12 0.03 112.11 106.16
2038 18 0.00 0.00 0.00 0.00 0.00 5.96 5.96 20.01 85.14 0.08 0.08 6.66 0.12 0.03 112.11 106.16
2039 19 0.00 0.00 0.00 0.00 0.00 5.96 5.96 20.01 85.14 0.08 0.08 6.66 0.12 0.03 112.11 106.16
2040 20 0.00 0.00 0.00 0.00 0.00 5.96 5.96 20.01 85.14 0.08 0.08 6.66 0.12 0.03 112.11 106.16
2041 21 0.00 0.00 0.00 0.00 0.00 5.96 5.96 20.01 85.14 0.08 0.08 6.66 0.12 0.03 112.11 106.16
2042 22 0.00 0.00 0.00 0.00 0.00 5.96 5.96 20.01 85.14 0.08 0.08 6.66 0.12 0.03 112.11 106.16
2043 23 0.00 0.00 0.00 0.00 0.00 5.96 5.96 20.01 85.14 0.08 0.08 6.66 0.12 0.03 112.11 106.16
2044 24 0.00 0.00 0.00 0.00 0.00 5.96 5.96 20.01 85.14 0.08 0.08 6.66 0.12 0.03 112.11 106.16
2045 25 0.00 0.00 0.00 0.00 0.00 5.96 5.96 20.01 85.14 0.08 0.08 6.66 0.12 0.03 112.11 106.16
2046 26 0.00 0.00 0.00 0.00 0.00 5.96 5.96 20.01 85.14 0.08 0.08 6.66 0.12 0.03 112.11 106.16
2047 27 0.00 0.00 0.00 0.00 0.00 5.96 5.96 20.01 85.14 0.08 0.08 6.66 0.12 0.03 112.11 106.16
2048 28 0.00 0.00 0.00 0.00 0.00 5.96 5.96 20.01 85.14 0.08 0.08 6.66 0.12 0.03 112.11 106.16
2049 29 0.00 0.00 0.00 0.00 0.00 5.96 5.96 20.01 85.14 0.08 0.08 6.66 0.12 0.03 112.11 106.16
2050 30 -0.99 0.00 0.00 0.00 0.00 5.96 4.97 20.01 85.14 0.08 0.08 6.66 0.12 0.03 112.11 107.14
Total 148.5 47.0 3.5 2.2 51.4 163.1 415.6 455.7 1,927.3 1.8 1.9 163.8 3.8 0.9 2,555.2 2,139.6
NPV 81.3 18.3 1.7 1.0 26.8 16.9 146.0 36.4 150.0 0.2 0.2 16.3 0.5 0.1 203.6 57.6
B/C Disc. rate 12.0% 1.39
EIRR 15.2%
Note: ”ope.” stands for ”operation”. ”Cnst.” stands for” construction”. ”R.S.” stands for ”rolling stock”. ”Inv.”
stands for” investment”. ”O&M” stands for” operation and maintenance”. ”Cng.” stands for” congestion”. ”Disc.
Rate” stands for” discount rate”.
10.5.3 Sensitivity Analysis
The effect of variations in the costs and the benefits on the EIRR is examined, when the cost
increases by 10% and the benefits decrease by 10%, simultaneously. Table 10.5.4 examines the
sensitivity of the EIRR, NPV and B/C. The EIRR of the project is 13.2 % which is higher than
the discount rate, 12%, when the cost increases by 10% and the benefit decreases by 10%,
simultaneously. This means that the entire SKYTRAIN project including the monorail lines,
Malabe multi-modal transport centre, park and ride facilities and the multi-modal transport hub at
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Pettah area is economically viable under the condition of 10% increase of costs and 10% decrease
of benefits.
Table 10.5.4 Sensitivity Analysis Results

Yrs Cost +10% Benefit -10% Cost+10% & Benefit -10%

Year after Net Cash Net Cash Net Cash
Cash-Out Cash-In Cash-Out Cash-In Cash-Out Cash-In
ope. Flow Flow Flow
2014 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2015 3.41 0.00 -3.41 3.10 0.00 -3.10 3.41 0.00 -3.41
2016 3.41 0.00 -3.41 3.10 0.00 -3.10 3.41 0.00 -3.41
2017 47.97 0.00 -47.97 43.61 0.00 -43.61 47.97 0.00 -47.97
2018 68.92 0.00 -68.92 62.65 0.00 -62.65 68.92 0.00 -68.92
2019 70.91 0.00 -70.91 64.47 0.00 -64.47 70.91 0.00 -70.91
2020 58.33 4.04 -54.29 53.02 3.63 -49.39 58.33 3.63 -54.69
2021 1 2.80 26.25 23.44 2.55 23.62 21.07 2.80 23.62 20.82
2022 2 2.80 26.37 23.57 2.55 23.73 21.18 2.80 23.73 20.93
2023 3 2.80 26.50 23.69 2.55 23.85 21.30 2.80 23.85 21.04
2024 4 4.56 26.62 22.06 4.14 23.96 19.81 4.56 23.96 19.40
2025 5 18.52 26.74 8.23 16.83 24.07 7.24 18.52 24.07 5.55
2026 6 5.59 35.28 29.69 5.08 31.75 26.67 5.59 31.75 26.16
2027 7 5.59 43.82 38.23 5.08 39.44 34.35 5.59 39.44 33.85
2028 8 5.59 52.35 46.77 5.08 47.12 42.04 5.59 47.12 41.53
2029 9 5.59 60.89 55.30 5.08 54.80 49.72 5.59 54.80 49.21
2030 10 20.39 69.43 49.03 18.54 62.49 43.95 20.39 62.49 42.09
2031 11 6.55 77.97 71.41 5.96 70.17 64.21 6.55 70.17 63.62
2032 12 6.55 86.50 79.95 5.96 77.85 71.89 6.55 77.85 71.30
2033 13 6.55 95.04 88.49 5.96 85.54 79.58 6.55 85.54 78.98
2034 14 6.55 103.58 97.02 5.96 93.22 87.26 6.55 93.22 86.66
2035 15 6.55 112.11 105.56 5.96 100.90 94.94 6.55 100.90 94.35
2036 16 6.55 112.11 105.56 5.96 100.90 94.94 6.55 100.90 94.35
2037 17 6.55 112.11 105.56 5.96 100.90 94.94 6.55 100.90 94.35
2038 18 6.55 112.11 105.56 5.96 100.90 94.94 6.55 100.90 94.35
2039 19 6.55 112.11 105.56 5.96 100.90 94.94 6.55 100.90 94.35
2040 20 6.55 112.11 105.56 5.96 100.90 94.94 6.55 100.90 94.35
2041 21 6.55 112.11 105.56 5.96 100.90 94.94 6.55 100.90 94.35
2042 22 6.55 112.11 105.56 5.96 100.90 94.94 6.55 100.90 94.35
2043 23 6.55 112.11 105.56 5.96 100.90 94.94 6.55 100.90 94.35
2044 24 6.55 112.11 105.56 5.96 100.90 94.94 6.55 100.90 94.35
2045 25 6.55 112.11 105.56 5.96 100.90 94.94 6.55 100.90 94.35
2046 26 6.55 112.11 105.56 5.96 100.90 94.94 6.55 100.90 94.35
2047 27 6.55 112.11 105.56 5.96 100.90 94.94 6.55 100.90 94.35
2048 28 6.55 112.11 105.56 5.96 100.90 94.94 6.55 100.90 94.35
2049 29 6.55 112.11 105.56 5.96 100.90 94.94 6.55 100.90 94.35
2050 30 5.47 112.11 106.65 4.97 100.90 95.93 5.47 100.90 95.44
Total 457.2 2,555.2 2,098.0 415.6 2,299.7 1,884.0 457.2 2,299.7 1,842.5
NPV 160.6 203.6 43.0 146.0 183.3 37.3 160.6 183.3 22.7
B/C 1.27 1.26 1.14
EIRR 14.3% 14.2% 13.2%
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CHAPTER 11 Financial Evaluation
11.1 General
This chapter evaluates the financial viability of monorail system, which is a part of the “Integrated
Transport System with Monorail, SKYTRAIN Project” including the monorail line between
Kotahena and IT-park via Malabe Line (Line 1), the line between National Hospital and
Kollupitiya (Line 2), Multi-modal Centre at Malabe (MMC) and Park and Ride facilities, from the
viewpoint of the implementation body. In addition, the case which includes the multi-modal
transport hub (MmTH) is also evaluated as an option.
This evaluation is implemented based on the estimation in terms of revenues, construction costs,
and operation and maintenance costs (O&M). Additionally, required financial conditions are
assumed.
As a first step of financial evaluation, based on the said estimation in terms of revenues,
construction costs, and operation and maintenance costs, the financial internal rate of return
(FIRR) without loan interest is calculated in order to examine the return on the total investment.
In this case, FIRR is calculated regardless of financing conditions without interest cost in which it
is assumed that the initial investment is done without any loan. Then, based on the assumption
on the financing plan, the cash flow analysis is implemented by use of value for money (VMF).
11.2 Assumptions for the Financial Evaluation

The following are the assumptions for general conditions in the financial evaluation.
a) Base year: Year 2015
b) Evaluation period: 34 years after the start of operating services of the monorail, considering
the completion period of the loan repayment as well as the interest payment.
c) Life period: Life periods of facilities are estimated as the following years based on the
physical life period of the facility. The residual value for the evaluation is zero.
Civil works, structures and buildings: 50 years
Rolling stock: 30 years
d) Replacement cost of facilities and rolling stock is estimated based on its life period.
e) Discount Rate: A discount rate of 2.6% is considered as the following calculation.

Real rate of interest (2.6%) = Nominal rate of interest for the government bond (6.9%1) - Rate
of inflation (4.3%2)
1
May 2014
2
The average from January to June 2014
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f) Inflation: Inflation is not taken into account either in the revenue or cost estimates during the
evaluation period.
g) Foreign Exchange Rate: The foreign exchange rate is fixed at the following rate as of 2013.
US Dollar 1.00 is equivalent to LKR 130.4550, the monthly average exchange rates of May
2014, according to the Central Bank of Sri Lanka. US Dollar 1.00 is equivalent to 101.79
JPY, the monthly median exchange rates of Tokyo market of May 2014 according to Bank of
Japan.
11.3 Financial Cost and Revenue

11.3.1 Financial Cost
Total project cost of the SKYTRAIN project consists of the construction work cost, rolling stock
procurement cost, cost for consulting services, physical contingency and O&M cost of the project
as described in Chapter 8 for monorail. It is also assumed that additional cost for the monorail
rolling stock and the depot will be procured in 2025 and 2030 to meet the increased demand.
11.3.2 Revenue
The revenues are composed of the monorail fare and the railway related business as in the
following Table 11.3.1. The monorail fare is set the same as the normal bus level which is 1,221
LKR million in the opening year of 2020. Based on the demand forecast, the annual fare revenue
will be increased. The other fare levels are also indicated in the following Table 11.5.1.
Table 11.3.1 Estimation of Revenue except Fare Revenue

Item Unit cost, area and operation rate Amount (LKR mil)
5,382 LKR/m²/month, 800 m²,
Floor space for lease 49.08
operation rate=95%
Advertisement space 50,000 LKR/m²/month, 2,500 m²,
1,275.00
(station) operation rate=85%
Monorail
Advertisement space 50,000 LKR/train/month, 24 trains,

11.22
Railway related (inside monorail car) operation rate=85%
Advertisement space 50,000 LKR/train/month, 24 trains,
11.22
(exterior monorail car) operation rate=85%
75 LKR/hour, 9hours/car, 900 cars/day,
Car parking at P&R 218.70
360 days
Total 1,565.22
11.4 Financial Evaluation of the Project

Based on the above estimated revenues and costs, the cash flow analysis of the project itself
without interest cost was implemented, and the financial internal rate of return (FIRR) did not
show any viable results.
As the next step, the loan condition in the initial investment is considered for the evaluation.
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11.5 Financial Evaluation with Loan Conditions

11.5.1 JICA STEP Loan
In this project, the STEP loan from JICA is assumed for the financial evaluation.
The loan condition is that the interest rate is 0.1 % per annum, and the repayment of principals is
40 years including 10 years grace period.
11.5.2 Evaluation Indicator
Value for Money (VMF) is applied to this project as an indicator. The evaluation of VFM is to
compare the best value for money to achieve development outcomes from each case of the
government project. The target is the minimum deficit balance of net present value (NPV) in the
government cash flow.
11.5.3 Financial Evaluation in the Case of Government Operation
When the government of Sri Lanka takes a STEP loan3

from JICA to cover the construction cost of the monorail
and rolling stock, and then operates the monorail, and
receives the revenue from the operation of the monorail,
the NPV of the government cash flow shows the negative
value of 141.63 LKR billion.
If the government takes another loan from other country,

which has the interest rate of 3.6% per annum, and the
repayment of principals is sixteen years including four
years grace period, the NPV of the government cash flow
shows the negative value of 224.05 LKR billion.
Figure 11.5.1 The Case of the

Government Operation
3
In the STEP loan, the purchase of additional rolling stocks in 2025 and 2030 as well as the construction cost of the depot for
expansion in 2030 are not included.
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The cash flow of the government is shown in Table 11.5.1.
Table 11.5.1 The Case of Government Operation
Unit: LKR billion

In-flow Out-flow Cash Flow
Yrs Revenue from Monorail Monorail Loan
Year after Interest Normal Semi-
Loan Normal Semi- Related Constructi Rolling Malabe Park & Repaymen Luxury Bus
ope. Luxury Bus O&M t Payment Bus Luxury Bus
Bus Luxury Bus Revenue on Stock MMC Ride
2014 0.00 0.00 0.00 0.00 0.00 0.00

2015 2.12 2.12 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2016 2.12 2.12 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2017 47.48 40.32 7.07 0.09 0.00 0.00 0.00 0.00 0.00
2018 50.96 43.72 7.07 0.09 0.07 0.00 0.00 0.00 0.00
2019 53.48 43.76 7.07 1.85 0.80 0.00 0.00 0.00 0.00
2020 40.00 1.22 1.68 1.99 1.57 29.56 7.07 1.85 1.52 2.28 0.00 0.51 0.97 1.28
2021 1 0.00 1.28 1.77 2.10 1.57 0.00 0.00 0.00 0.00 2.28 0.00 0.57 1.06 1.39
2022 2 0.00 1.34 1.87 2.21 1.57 0.00 0.00 0.00 0.00 2.28 0.00 0.63 1.16 1.50
2023 3 0.00 1.40 1.96 2.33 1.57 0.00 0.00 0.00 0.00 2.28 0.00 0.69 1.25 1.62
2024 4 0.00 1.46 2.06 2.44 1.57 0.00 0.00 0.00 0.00 4.31 0.00 -1.28 -0.68 -0.30
2025 5 12.97 1.52 2.16 2.56 1.57 0.00 12.97 0.00 0.00 5.50 6.54 0.20 -9.15 -8.51 -8.11
2026 6 0.00 1.65 2.35 2.82 1.57 0.00 0.00 0.00 0.00 5.50 6.54 0.19 -9.01 -8.31 -7.84
2027 7 0.00 1.78 2.54 3.09 1.57 0.00 0.00 0.00 0.00 5.50 6.54 0.18 -8.87 -8.11 -7.57
2028 8 0.00 1.92 2.74 3.36 1.57 0.00 0.00 0.00 0.00 5.50 6.54 0.18 -8.73 -7.91 -7.29
2029 9 0.00 2.05 2.93 3.63 1.57 0.00 0.00 0.00 0.00 5.50 6.54 0.17 -8.59 -7.71 -7.02
2030 10 13.89 2.18 3.13 3.89 1.57 3.28 10.61 0.00 0.00 6.62 6.54 0.16 -9.57 -8.62 -7.86
2031 11 0.00 2.32 3.32 4.16 1.57 0.00 0.00 0.00 0.00 6.62 6.54 0.16 -9.43 -8.42 -7.59
2032 12 0.00 2.45 3.52 4.43 1.57 0.00 0.00 0.00 0.00 6.62 6.54 0.15 -9.29 -8.22 -7.31
2033 13 0.00 2.58 3.71 4.70 1.57 0.00 0.00 0.00 0.00 6.62 6.54 0.14 -9.15 -8.02 -7.04
2034 14 0.00 2.72 3.91 4.96 1.57 0.00 0.00 0.00 0.00 6.62 6.54 0.14 -9.01 -7.82 -6.76
2035 15 0.00 2.85 4.10 5.23 1.57 0.00 0.00 0.00 0.00 6.62 6.54 0.13 -8.87 -7.62 -6.49
2036 16 0.00 2.85 4.10 5.23 1.57 0.00 0.00 0.00 0.00 6.62 6.54 0.12 -8.87 -7.61 -6.48
2037 17 0.00 2.85 4.10 5.23 1.57 0.00 0.00 0.00 0.00 6.62 6.54 0.12 -8.86 -7.60 -6.48
2038 18 0.00 2.85 4.10 5.23 1.57 0.00 0.00 0.00 0.00 6.62 6.54 0.11 -8.85 -7.60 -6.47
2039 19 0.00 2.85 4.10 5.23 1.57 0.00 0.00 0.00 0.00 6.62 6.54 0.10 -8.85 -7.59 -6.46
2040 20 0.00 2.85 4.10 5.23 1.57 0.00 0.00 0.00 0.00 6.62 6.54 0.10 -8.84 -7.58 -6.46
2041 21 0.00 2.85 4.10 5.23 1.57 0.00 0.00 0.00 0.00 6.62 6.54 0.09 -8.83 -7.58 -6.45
2042 22 0.00 2.85 4.10 5.23 1.57 0.00 0.00 0.00 0.00 6.62 6.54 0.09 -8.83 -7.57 -6.44
2043 23 0.00 2.85 4.10 5.23 1.57 0.00 0.00 0.00 0.00 6.62 6.54 0.08 -8.82 -7.56 -6.44
2044 24 0.00 2.85 4.10 5.23 1.57 0.00 0.00 0.00 0.00 6.62 6.54 0.07 -8.81 -7.56 -6.43
2045 25 0.00 2.85 4.10 5.23 1.57 0.00 0.00 0.00 0.00 6.62 6.54 0.07 -8.81 -7.55 -6.42
2046 26 0.00 2.85 4.10 5.23 1.57 0.00 0.00 0.00 0.00 6.62 6.54 0.06 -8.80 -7.55 -6.42
2047 27 0.00 2.85 4.10 5.23 1.57 0.00 0.00 0.00 0.00 6.62 6.54 0.05 -8.79 -7.54 -6.41
2048 28 0.00 2.85 4.10 5.23 1.57 0.00 0.00 0.00 0.00 6.62 6.54 0.05 -8.79 -7.53 -6.40
2049 29 0.00 2.85 4.10 5.23 1.57 0.00 0.00 0.00 0.00 6.62 6.54 0.04 -8.78 -7.53 -6.40
2050 30 2.85 4.10 5.23 1.57 6.62 6.54 0.03 -8.77 -7.52 -6.39
2051 31 0.00 2.85 4.10 5.23 1.57 6.62 6.54 0.03 -8.77 -7.51 -6.38
2052 32 0.00 2.85 4.10 5.23 1.57 6.62 6.54 0.02 -8.76 -7.51 -6.38
2053 33 0.00 2.85 4.10 5.23 1.57 6.62 6.54 0.01 -8.75 -7.50 -6.37
2054 34 0.00 2.85 4.10 5.23 1.57 6.62 6.54 0.01 -8.75 -7.49 -6.36
Total 223.01 84.84 121.74 153.33 54.85 164.87 51.88 3.87 2.39 206.40 196.16 3.04 -265.91 -229.01 -197.42
NPV -141.63 -121.81 -105.16
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11.5.4 Financial Evaluation in the Case of Public Corporation Operation
As described in the Figure 11.5.2, when a public

corporation operates the monorail, the corporation is
responsible for the O&M cost and receives the revenue
from the operations of the monorail, and the government
is responsible for the construction cost of monorail, loan
repayment and interest, and receives the loan.
The cash flow of the public corporation which includes

the in-flow of revenues from the monorail and out-flow
of O&M on the monorail, the NPV shows a negative
value of 35.34 LKR billion with the fare level of normal
bus.
In other cases of the fare level of semi-luxury bus and

increase in steps4, these NPVs show negative values as
shown below. Only the NPV with the fare level of
Figure 11.5.2 The Case of the
luxury bus shows a positive value of 1.13 LKR billion,
Public Corporation Operation
though the cash flow indicates negative from the year of
2024 to 2034. This negative period is caused by the
increase of O&M on the monorail due to the purchase of
new rolling stocks in 2025 and the expansion of the depot
in 2030 for catching up the increase of demand after
2030.
・ Normal bus level : -35.34 LKR billion
・ Semi-Luxury bus level : -15.51 LKR billion
・ Luxury bus level : 1.13 LKR billion
・ Increase in Steps : -7.23 LKR billion
4
This fare is increased in steps, in which the normal bus level is set up from the opening year to 2024, semi-lux. level from 2025
to 2034 and lux. level from 2035.
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Final Report
Table 11.5.2 shows the cash flow of the public corporation.
Table 11.5.2 The Case of Public Corporation Operation (the Cash Flow of Public Corporation)
Unit: LKR billion
Yrs Revenue from M onorail Monorail
Year after Semi-
Loan Semi- Increase in Related Normal Bus Luxury Bus Increase in
ope. Normal Bus Luxury Bus O&M Luxury Bus Steps
Luxury Bus Steps Revenue
2014 0 0.00 0.00 0.00 0.00 0.00 0.00

2015 0 2.12 0.00 0.00 0.00 0.00 0.00
2016 0 2.12 0.00 0.00 0.00 0.00 0.00
2017 0 47.39 0.00 0.00 0.00 0.00 0.00
2018 0 50.80 0.00 0.00 0.00 0.00 0.00
2019 0 50.83 0.00 0.00 0.00 0.00 0.00
2020 0 36.63 1.22 1.68 1.99 1.22 1.57 2.28 0.51 0.97 1.28 0.51
2021 1 0.00 1.28 1.77 2.10 1.28 1.57 2.28 0.57 1.06 1.39 0.57
2022 2 0.00 1.34 1.87 2.21 1.34 1.57 2.28 0.63 1.16 1.50 0.63
2023 3 0.00 1.40 1.96 2.33 1.40 1.57 2.28 0.69 1.25 1.62 0.69
2024 4 0.00 1.46 2.06 2.44 1.46 1.57 4.31 -1.28 -0.68 -0.30 -1.28
2025 5 12.97 1.52 2.16 2.56 2.16 1.57 5.50 -2.42 -1.78 -1.38 -1.78
2026 6 0.00 1.65 2.35 2.82 2.35 1.57 5.50 -2.28 -1.59 -1.11 -1.59
2027 7 0.00 1.78 2.54 3.09 2.54 1.57 5.50 -2.15 -1.39 -0.84 -1.39
2028 8 0.00 1.92 2.74 3.36 2.74 1.57 5.50 -2.02 -1.20 -0.58 -1.20
2029 9 0.00 2.05 2.93 3.63 2.93 1.57 5.50 -1.89 -1.00 -0.31 -1.00
2030 10 13.89 2.18 3.13 3.89 3.13 1.57 6.62 -2.87 -1.92 -1.16 -1.92
2031 11 0.00 2.32 3.32 4.16 3.32 1.57 6.62 -2.74 -1.73 -0.89 -1.73
2032 12 0.00 2.45 3.52 4.43 3.52 1.57 6.62 -2.60 -1.53 -0.62 -1.53
2033 13 0.00 2.58 3.71 4.70 3.71 1.57 6.62 -2.47 -1.34 -0.35 -1.34
2034 14 0.00 2.72 3.91 4.96 3.91 1.57 6.62 -2.34 -1.14 -0.09 -1.14
2035 15 0.00 2.85 4.10 5.23 5.23 1.57 6.62 -2.20 -0.95 0.18 0.18
2036 16 0.00 2.85 4.10 5.23 5.23 1.57 6.62 -2.20 -0.95 0.18 0.18
2037 17 0.00 2.85 4.10 5.23 5.23 1.57 6.62 -2.20 -0.95 0.18 0.18
2038 18 0.00 2.85 4.10 5.23 5.23 1.57 6.62 -2.20 -0.95 0.18 0.18
2039 19 0.00 2.85 4.10 5.23 5.23 1.57 6.62 -2.20 -0.95 0.18 0.18
2040 20 0.00 2.85 4.10 5.23 5.23 1.57 6.62 -2.20 -0.95 0.18 0.18
2041 21 0.00 2.85 4.10 5.23 5.23 1.57 6.62 -2.20 -0.95 0.18 0.18
2042 22 0.00 2.85 4.10 5.23 5.23 1.57 6.62 -2.20 -0.95 0.18 0.18
2043 23 0.00 2.85 4.10 5.23 5.23 1.57 6.62 -2.20 -0.95 0.18 0.18
2044 24 0.00 2.85 4.10 5.23 5.23 1.57 6.62 -2.20 -0.95 0.18 0.18
2045 25 0.00 2.85 4.10 5.23 5.23 1.57 6.62 -2.20 -0.95 0.18 0.18
2046 26 0.00 2.85 4.10 5.23 5.23 1.57 6.62 -2.20 -0.95 0.18 0.18
2047 27 0.00 2.85 4.10 5.23 5.23 1.57 6.62 -2.20 -0.95 0.18 0.18
2048 28 0.00 2.85 4.10 5.23 5.23 1.57 6.62 -2.20 -0.95 0.18 0.18
2049 29 0.00 2.85 4.10 5.23 5.23 1.57 6.62 -2.20 -0.95 0.18 0.18
2050 30 0.00 2.85 4.10 5.23 5.23 1.57 6.62 -2.20 -0.95 0.18 0.18
2051 31 0.00 2.85 4.10 5.23 5.23 1.57 6.62 -2.20 -0.95 0.18 0.18
2052 32 0.00 2.85 4.10 5.23 5.23 1.57 6.62 -2.20 -0.95 0.18 0.18
2053 33 0.00 2.85 4.10 5.23 5.23 1.57 6.62 -2.20 -0.95 0.18 0.18
2054 34 0.00 2.85 4.10 5.23 5.23 1.57 6.62 -2.20 -0.95 0.18 0.18
Total 216.75 84.84 121.74 153.33 141.67 54.85 206.40
NPV -35.34 -15.51 1.13 -7.23
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11.5.5 The Case Study: Public Corporation Operation of Monorail with MmTH
The public corporation cannot operate the monorail only to cover the O&M from the revenues of
the monorail fare and railway related business. Therefore, as an option, MmTH which is a part
of SKYTRAIN project is set up the commercial facility restrictively, and financial evaluation is
also analyzed, including its additional revenue of MmTH.
Additional Revenues from MmTH
When the additional revenue of MmTH is

considered as a part of the SKYTRAIN project,
MmTH is composed of railway, monorail,
MmTH terminal, bus terminal, shopping Mall-1
and shopping Mall-2. The shopping Mall-1
which produces the main revenue, is built
above the MmTH terminal from the second
floor to the sixth floor. The Mall-2, which is
not considered as a part of the SKYTRAIN
project, is expected to be located next to
Mall-1.
Figure 11.5.3 Component of MmTH and
Mall-1 & Mall-2
The revenues from MmTH and Mall-1 are estimated as shown the following Table 11.5.3.
Table 11.5.3 The Revenues from MmTH and Mall-1

Item Unit cost, area and operation rate Amount (LKR mil)
700 LKR/shop/month, 500 shops,
Floor space for lease 4.20
operation rate=100%
MmTH terminal
Advertisement space for 50,000 LKR/m²/month, 100 100 m²,
51.00
lease operation rate=85%
50 LKR/bus/entering, 6,600 buses/day,
MmTH
Terminal charge 208.02

360 days
Bus terminal
Advertisement space for 50,000 LKR/ m²/month, 100 100 m²,
51.00
75 LKR/hour, 9hours/car, 200 cars/day,
Car parking Parking charge 48.60
360 days
Sub-total 362.82
5,382 LKR/m²/month, 6,960 m²/floor,
Floor space for lease 2,313.67
operation rate=95%
Mall-1
Advertisement space for 50,000 LKR/m²/month, 200 m²/floor,

510.00
Sub-total 2,823.67
Total 3,186.49
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Final Report
Financial Evaluation in the Case of Public Corporation Operation
As described in the Figure 11.5.4, when a public Revenue: Monorail + MmTH with Mall-1
corporation operates the monorail and MmTH
with Mall-1, the corporation is responsible for the
O&M cost and receives the revenue from the
operations of the monorail and MmTH with
Mall-1, and the government is responsible for the
construction cost of monorail and MmTH, loan
repayment and interest, and receives the loan.
In terms of cash flow of the public corporation

which includes the in-flow of revenues from the
monorail as well as MmTH with Mall 1 and
out-flow of O&M on the monorail and MmTH,
the NPV shows a value of 13.28 LKR billion with
the fare level of normal bus. Source: SKYTRAIN Study Team
In this case, the public corporation will make a Figure 11.5.4 The Case of the Public
profit from the operations of the monorail and Corporation Operation with MmTH
MmTH with Mall-1, though the cash flow
indicates negative from the year of 2030 to 2035.
This negative period is caused by the increase of
O&M on the monorail due to the purchase of
new rolling stocks and the expansion of the depot
in 2030 for catching up the increase of demand
after 2030.
In order to make annual cash flow positive to cover the O&M, the semi-luxury bus, luxury bus
levels and increase in steps are also evaluated as follow. In all cases, the NPV shows positive
and make a profit every year from the commencement of operation.
・ Normal bus level : 13.28 LKR billion
・ Semi-Luxury bus level : 33.10 LKR billion
・ Luxury bus level : 49.75 LKR billion
・ Increase in steps : 41.39 LKR billion
Table 11.5.4 shows the cash flow of the public corporation.
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Final Report
Table 11.5.4 The Case of Public Corporation Operation with the Revenue from Monorail
and MmTH (with Mall-1) (the Cash Flow of Public Corporation)
Unit: LKR billion

Yrs Revenue from M onorail Monorail MmTH
Year after Related Revenue Semi-Luxury Increase in
Loan Semi-Luxury Normal Bus Luxury Bus
ope. Normal Bus Luxury Bus Revenue from MmT H O&M O&M Bus Steps
Bus
2014 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00

2015 0 3.41 0.00 0.00 0.00 0.00 0.00 0.00
2016 0 3.41 0.00 0.00 0.00 0.00 0.00 0.00
2017 0 48.04 0.00 0.00 0.00 0.00 0.00 0.00
2018 0 68.98 0.00 0.00 0.00 0.00 0.00 0.00
2019 0 68.50 0.00 0.00 0.00 0.00 0.00 0.00
2020 0 54.30 1.22 1.68 1.99 1.57 3.19 2.28 0.76 2.94 3.39 3.70 2.94
2021 1 0.00 1.28 1.77 2.10 1.57 3.19 2.28 0.76 2.99 3.49 3.82 2.99
2022 2 0.00 1.34 1.87 2.21 1.57 3.19 2.28 0.76 3.05 3.58 3.93 3.05
2023 3 0.00 1.40 1.96 2.33 1.57 3.19 2.28 0.76 3.11 3.68 4.04 3.11
2024 4 0.00 1.46 2.06 2.44 1.57 3.19 4.31 0.76 1.14 1.74 2.12 1.14
2025 5 12.97 1.52 2.16 2.56 1.57 3.19 5.50 0.76 0.01 0.64 1.05 0.64
2026 6 0.00 1.65 2.35 2.82 1.57 3.19 5.50 0.76 0.14 0.84 1.31 0.84
2027 7 0.00 1.78 2.54 3.09 1.57 3.19 5.50 0.76 0.27 1.03 1.58 1.03
2028 8 0.00 1.92 2.74 3.36 1.57 3.19 5.50 0.76 0.41 1.23 1.85 1.23
2029 9 0.00 2.05 2.93 3.63 1.57 3.19 5.50 0.76 0.54 1.42 2.12 1.42
2030 10 13.89 2.18 3.13 3.89 1.57 3.19 6.62 0.76 -0.44 0.50 1.27 0.50
2031 11 0.00 2.32 3.32 4.16 1.57 3.19 6.62 0.76 -0.31 0.70 1.53 0.70
2032 12 0.00 2.45 3.52 4.43 1.57 3.19 6.62 0.76 -0.18 0.89 1.80 0.89
2033 13 0.00 2.58 3.71 4.70 1.57 3.19 6.62 0.76 -0.04 1.09 2.07 1.09
2034 14 0.00 2.72 3.91 4.96 1.57 3.19 6.62 0.76 0.09 1.28 2.34 1.28
2035 15 0.00 2.85 4.10 5.23 1.57 3.19 6.62 0.76 0.22 1.48 2.61 2.61
2036 16 0.00 2.85 4.10 5.23 1.57 3.19 6.62 0.76 0.22 1.48 2.61 2.61
2037 17 0.00 2.85 4.10 5.23 1.57 3.19 6.62 0.76 0.22 1.48 2.61 2.61
2038 18 0.00 2.85 4.10 5.23 1.57 3.19 6.62 0.76 0.22 1.48 2.61 2.61
2039 19 0.00 2.85 4.10 5.23 1.57 3.19 6.62 0.76 0.22 1.48 2.61 2.61
2040 20 0.00 2.85 4.10 5.23 1.57 3.19 6.62 0.76 0.22 1.48 2.61 2.61
2041 21 0.00 2.85 4.10 5.23 1.57 3.19 6.62 0.76 0.22 1.48 2.61 2.61
2042 22 0.00 2.85 4.10 5.23 1.57 3.19 6.62 0.76 0.22 1.48 2.61 2.61
2043 23 0.00 2.85 4.10 5.23 1.57 3.19 6.62 0.76 0.22 1.48 2.61 2.61
2044 24 0.00 2.85 4.10 5.23 1.57 3.19 6.62 0.76 0.22 1.48 2.61 2.61
2045 25 0.00 2.85 4.10 5.23 1.57 3.19 6.62 0.76 0.22 1.48 2.61 2.61
2046 26 0.00 2.85 4.10 5.23 1.57 3.19 6.62 0.76 0.22 1.48 2.61 2.61
2047 27 0.00 2.85 4.10 5.23 1.57 3.19 6.62 0.76 0.22 1.48 2.61 2.61
2048 28 0.00 2.85 4.10 5.23 1.57 3.19 6.62 0.76 0.22 1.48 2.61 2.61
2049 29 0.00 2.85 4.10 5.23 1.57 3.19 6.62 0.76 0.22 1.48 2.61 2.61
2050 30 0.00 2.85 4.10 5.23 1.57 3.19 6.62 0.76 0.22 1.48 2.61 2.61
2051 31 0.00 2.85 4.10 5.23 1.57 3.19 6.62 0.76 0.22 1.48 2.61 2.61
2052 32 0.00 2.85 4.10 5.23 1.57 3.19 6.62 0.76 0.22 1.48 2.61 2.61
2053 33 0.00 2.85 4.10 5.23 1.57 3.19 6.62 0.76 0.22 1.48 2.61 2.61
2054 34 0.00 2.85 4.10 5.23 1.57 3.19 6.62 0.76 0.22 1.48 2.61 2.61
Total 273.48 84.84 121.74 153.33 54.85 111.53 206.40 26.67
NPV 13.28 33.10 49.75 41.39
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Final Report
11.5.6 Summary of Evaluation
The NPV of the government cash flow funded by JICA STEP loan shows less government deficit
rather when compared to another loan in order to implement the SKYTRAIN Project.
In the case that public corporation operates the monorail without MmTH, only the case of luxury
bus fare level shows the positive value of NPV for the public corporation, though the cash flow
indicates negative from the year of 2024 to 2034.
In the case that the public corporation operates the monorail and MmTH with Mall-1, the fare of
normal buses with the revenue from MmTH is almost covered the O&M of both the monorail and
MmTH, though the cases of semi-luxury bus level as well as the fare increase in steps are more
practical and preferable from the financial view point.
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Final Report
CHAPTER 12 Environmental and Social Considerations
12.1 Project Component

12.1.1 Project outline
The project is planned within the Colombo Metropolitan Area, connecting key economically and
socially important areas, including the Colombo Central area and Battaramulla administrative
capital. An image map of the proposed project, Monorail system for Malabe Corridor, is shown
in Figure 12.1.1.
The projects components are; the Monorail system which has a total length of 23.5km with a total
26 stations, the Multi-Modal Transport Centre, and Park and Ride Facilities. The Monorail
network is composed of the following 2 lines.
Route Section Length Station

Line1 IT Park – Malabe – Fort - Kotahena 21.4km 24 (Incl., National Hospital St.)
Line2 Town Hall - Kollupitiya 2.1km 3 (Incl., National Hospital St.)
The depot area is planned to be constructed on paddy fields—north of the Malabe town bounded
by Chandrika Kumaratunga Mawatha to the east. The proposed structure is elevated and the
platform will be on a series of pillars.
Please refer to Chapter 5 for the Monorail system and structure.
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Final Report
Figure 12.1.1 Proposed Monorail Route
12.1.2 Location and Study area
The study area was defined as the land within 500m of the project components, taking account of
the nature of the impact. The study area falls under four divisional secretariat divisions namely;
Colombo, Thibirigasyaya, Sri Jayawardanapura kotte and Kaduwela (Table 12.1.1). There are
about 133 Grama Niladhari Divisions and the Monorail will goes along or through 37 of them.
Table 12.1.1 Sections of the route traverses through the Divisional Secretariat Divisions
Divisional Secretariat Division Section of the Monorail Route
Colombo Kotahena to Eye Hospital Junction via Panchikawatta, Maradana,

Fort & Union Place.
Thibirigasyaya Eye Hospital Junction to Rajagiriya Via Punchi Borella, Borella and
Ayurveda junction.
Sri Jayawardenapura Kotte Rajagiriya to Diyatha Uyana (Battaramulla)
Kaduwela Diyatha Uyana to Bandaranayake Mawatha (Malabe) via Palan

thuna, Thalahena and Malabe.
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Final Report
12.2 Environmental and Social Baseline Conditions

12.2.1 Overview of the project area
The project area is located in a relatively flat area. The climate of the project area is categorised
as tropical monsoon, having a wet season and short dry seasons. In Colombo, May, October and
November are observed to be rainy months with around 330 – 350 mm rainfall each, while
January and February are observed to be dry periods with around 50 mm rainfall each. The
mean daily maximum temperature in the study area is approximately 29 – 31°C while the mean
daily minimum temperature is around 22 - 25°C. The highest temperatures seemed to have
occurred in February and March when it rises up to 36ºC, still the average temperature remains at
about 28 ºC, which is also equal to the average temperature all through the year. The monthly
maximum wind speed exceeds 10m/s in many months in the project area. The Monorail will be
implemented primarily on existing roads and land use around the Monorail route is mainly for
commercial purposes. The land use around the project area is shown in Figure 12.2.1-(a) and
Figure 12.2.1-(b). Along the planned route, there are commercial facilities such as, office
buildings (World Trade Centre, etc.), shopping malls and administrative buildings and public
facilities including hospitals and stations (Fort and Maradana, Kollupitiya, etc.). In addition,
Diyawanna Lake is a major water body along the route and is now serving as a key leisure zone.
In general, the Western side of the project area, including the business capital of Fort area is a
more business orientated zone, while eastern area toward Malabe becomes a semi-urban area with
more green open spaces. The images of the project areas are shown in Figure 12.2.1-(c) and
Figure 12.2.1-(d). The land use of the area is shown in Figure 12.2.2 and Figure 12.2.3.
Figure 11.2.1-(a) View around Fort station Figure 11.2.1-(b) View at Lipton Circle.
Figure 11.2.1-(c) View at Pelawatta Road Figure 11.2.1-(d) View near Robert
Gunawardena Mawatha
Figure 12.2.1 Pictures of selected project areas
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Final Report
Figure 12.2.2 Land use map around the project area (1)
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Final Report
Figure 12.2.3 Land use map around the project area (2)
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Final Report
12.2.2 Conservation area
There are two conservation areas around the project area as below. Location of these areas is
shown in Figure 12.2.4.
(1) Thalangama Environmental Protection Area
Thalangama Environmental Protection Area was designated by the Central Environmental

Authority (No. 1,487/10 , MARCH 05, 2007) in 2007. It is noted that the Monorail will not go
through the area designated as Environmental Protection Area, which is approximately 2 km from
the Monorail route. Only the following activities are permitted under the gazette.
1) The cultivation of paddy.

2) Fishing.
3) Nature trails.
4) Construction of towers for the observation of Birds.
5) An Environmental Educational Information centre and a sales outlet.
6) Construction of a Security Post.
A tank was built during King Parakramabahu VI era (1551-1547AD) to irrigate paddy cultivation.
The tank and its surrounding habitats serve as an important flood retention area. The tank has a
rich biodiversity that includes 41 plant species and 15 freshwater species. While the freshwater
fish in the tank comprises both exotic and endemic and indigenous fish species the flora is highly
modified with many exotic species.
(2) Sri Jayawardana Bird Sanctuary
This sanctuary was designated by the Department of Wildlife Conservation (No.331/8

WEDNESDAY, JANUARY 09, 1985) in 1985. Unlike a National Park, which is fully legally
protected and no development activity is allowed, the Sanctuary has a lower protection status than
a National Park and development may be allowed in a Sanctuary with the approval of the
Department of Wildlife Conservation. Even though the area is designed as Sri Jayawardana Bird
Sanctuary, the area has already been developed with many road and building projects.
Monorail route Depot site
Thalangama
EPA
Sri Jayawarnapura Sanctuary
Figure 12.2.4 Conservation area around the project area
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Final Report
12.2.3 Social Environment
The Monorail will be implemented primarily on existing roads and land use around the Monorail
route is mainly for commercial purposes. The population density in the Colombo Metropolitan
Core is roughly 20 person/ha while the population density along the major corridors is 40
person/ha. It is expected that the population density in Colombo Metropolitan Area will rise
from 20 to 80 person/ha.
Along the planned route, there are commercial facilities such as, office buildings (World Trade
Centre, etc.), shopping malls and administrative buildings and public facilities including hospitals
and stations (Fort and Maradana, Kollupitiya, etc.). In addition, Diyawanna Lake is a major
water body along the route and is now serving as a key leisure zone.
There are several development plans/proposals along the proposed route, including the Slave
Island Redevelopment, shifting of Manning Market and relocation of the capital function to Sri
Jayewardenepura Kotte.
There are several culturally important features along the route, including a temple, historically
important buildings (Town Hall, etc.) and Bo trees. The Bo tree situated at Borella Junction is
regarded as highly sensitive.
12.3 Environmental Policies and Regulations in Sri Lanka

12.3.1 National Environmental Act (NEA) No. 47 of 1980, and its amendment Act No. 56 of 1988
and Act No. 53 of 2000
Under provisions of Part IV C of the NEA No. 47 of 1980 and subsequently stipulated in Gazette
(Extra Ordinary) No. 772/22 dated June 24, 1993 the Government of Sri Lanka (GoSL) made
Environmental Assessment (EA) a legal requirement for a range of development projects. The
list of projects requiring an EA in the form of an Environmental Impact Assessment (EIA) or
Initial Environmental Examination (IEE) is prescribed in the above Gazette notification. The
basic considerations underlying the identification and listing of project activities as "prescribed
projects" are sensitivity and magnitude, since those factors are likely to cause adverse impacts on
the environment. Such projects include, among others, those which may have adverse impacts
on natural resources and those which have a high pollution potential. Listed prescribed projects
that are of relevance to the proposed monorail project include:
Construction of railway: A monorail system itself is not listed as a prescribed project for EIA,
however, according to the Central Environmental Authority’s (CEA’s) opinion, it is deemed to be
subject to an EIA given that its impact is considered to be similar to a railway project.
Reclamation of land, wetland area exceeding 4 hectares: The development of the Depot may
require 6 -7 ha of reclaimed wetland area.
Within 100 meters of the boundaries of or within any areas declared as a Sanctuary under the
Fauna and Flora Protection Ordinance: The proposed monorail route is expected to pass a
Sanctuary.
There are 6 major steps in the IEE/EIA process; 1) Screening, 2) Scoping, 3) Preparation of the
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EIA/IEE, 4) Report review, 5) Approval with terms and conditions or rejection with reasons and 5)
Post approval monitoring. These steps are described below and the EIA process in Sri Lanka is
shown in Figure 12.3.1.
(1) Screening
The project proponent submits preliminary information to the Project Approving Agency (PAA)
by filing a Basic Information Questionnaire (BIQ).
PAA reviews the BIQ and determines whether no further environmental analysis is required or
whether the proponent is required to prepare an Initial Environmental Examination (IEE) or an
Environmental Impact Assessment (EIA).
The screening period is 6 days.
(2) Scoping
If an EIA/IEE is required, a scoping meeting is conducted with a scoping committee to set the
Terms of Reference (TOR) for the EIA/IEE. The scoping committee is organised by PAA and is
composed of representatives from relevant agencies.
This scoping period is set as 14 days for IEE and 30 days for EIA.
(3) Preparation of the EIA/IEE
An EIA/IEE report is prepared in accordance with the TOR and submitted to PAA by the project
proponent. There is no time limit given for the report preparation.
(4) Report review
The review of the EIA/IEE report involves both public and technical reviews. After PAA
confirms the adequacy of the report, the report becomes open for public review for a period of 30
working days for an EIA and 14 days for an IEE. The notice for public disclosure of the EIA
report shall be announced in a national newspaper of all three languages. The project proponent
shall respond to comments raised during the public review period.
If required by PAA or stakeholders, a public hearing should be held immediately after the
expiration of the 30-working day public comment period and before the project proponent is
formally asked to respond to public and agency comments.
After the public review period, the technical evaluation committee reviews the report and gives
any recommendations. The technical evaluation committee is composed of technical experts
charged with all technical aspects of the EIA process. The technical review period is 21 days for
an IEE and 30 days for an EIA.
(5) Approval with terms and conditions or rejection with reasons
PAA decides whether a project is to be approved based on public comments as well as

recommendations from the technical evaluation committee. If the project is rejected, the project
proponent can appeal.
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(6) Post approval monitoring
Mitigation and other conditions established and committed to in the IEE/EIA process should be
implemented by the developer and monitored by the PAA.
Preliminary Information (PI)
Submitting to PAA
<Screening> Decide if IEE/EIA required
<Scoping>
IEE IEE or EIA EIA required
required
NO Scoping
PI accepted as IEE Set TOR Set TOR
Committee
Preparation of IEE EIA Report Preparation
Modification
YES
Adequacy of Report
NO
YES
Public notice
Forward comments to
project proponent
Public notice
Response by project
proponent
Technical Evaluation
Decision Committee
Decision
Approved with Not approved Approved with Not approved

conditions conditions
Notice to
Notice to Appeal Appeal
public
public
Source: Central Environmental Authority
Figure 12.3.1 EIA process in Sri Lanka
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12.3.2 Fauna and Flora Protection (Amended) Act (No. 49 of 1993)
The Fauna and Flora (Protection) Ordinance No. 2 of 1937, as amended by the Fauna and Flora
(Amended) Act No. 49 of 1993 and Act No. 22 of 2009 provides regulations for the protection,
conservation and preservation of the fauna and flora of Sri Lanka, for the prevention of the
commercial exploitation of such fauna and flora; and to provide for matters connected therewith
or incidental thereto. Offenses relating to amphibians and fish included in Schedules III and IV
of the Act. Part IV (sects. 42 to 48) concerns the protection of flora.
12.3.3 Flood protection Ordinance (chapter 449)
Under this ordinance the relevant minister is empowered to declare any area in Sri Lanka to be a
flood area. And while such order remains in force the area indicated shall form a flood area and
be subjected to the provisions of this ordinance.
According to the guidelines of this ordinance the Director of the Irrigation Department or any
other person designated by the relevant minister shall prepare and carry out a scheme for the
efficient protection of such area against floods.
12.3.4 Colombo District (Low Lying Areas) Reclamation & Development Board Act No. 15 of 1968
The Land Reclamation and Development Corporation (SLLRDC) established under this act has
the power to declare low lying areas within the Colombo district as flood protection areas. The
act was amended by Law No. 27 of 1976, Act No. 52 of 1982 and Act No. 35 of 2006.
12.4 Alternative analysis

12.4.1 No action alternative
As the largest metropolitan area in Sri Lanka, the population of Western Province was5.84 million
inhabitants in 2012. It is estimated that the total population of Western Province will increase to
7.9 million persons by 2035 and economic growth with urban development plans are also
expected. Thus the total person trip demand would increase and the trip demand made by private
mode of transport such as passenger cars, three wheelers and motorcycles would increase rapidly
due to said population growth and expected increase of household income.
It should be noted that current traffic congestion becomes serious during morning and evening
peaks within and around the boundary of CMC and is expanding its area. Furthermore, traffic
congestion will worsen due to the anticipated increasing demand if appropriate countermeasures
are not taken. Less utilisation of high occupancy vehicles, a lack of facilities for pedestrians and
bus passengers, insufficient capacity of public transport and poor enforcement of traffic rules
aggravate the situation. Therefore, if an “Integrated Transport System with Monorail,
SKYTRAIN” is not implemented, traffic congestion would become worse and the city will lose
the following benefits;
• Alleviation of traffic congestion

• Enhancement of Economy
• Reduction of air pollution/traffic noise
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• Reduction of traffic accident

• Improvement of security
Because the proposed project would bring more positive impacts than the few negative impacts in
terms of the environmental and social aspects, consideration of the “no action alternative” does
not merit any further consideration. Alternative Analysis in Corridor Selection
The CoMTrans Urban Transport Master Plan proposed public transport networks for 2020, 2025
and 2035 taking efficiency, environmental friendliness, equity, safety and security aspects into
consideration. Based on the large-scale home visit survey on travel behaviour, a series of
transport surveys and secondary data from various resources; seven major transport corridors in
the Colombo Metropolitan Area were identified.
The survey results showed that Malabe Corridor has the highest number of vehicles followed by
Kandy Corridor and Galle Corridor. As for travel speeds of major transport corridors, Malabe
Corridor and Galle Corridor were the lowest peak hour average travel speed of 13.8 km/h. The
five percentile lowest travel speed of the Malabe Corridor was 8.0 km/h which is the lowest
among all transport corridors.
12.4.2 Alternative Analysis in Monorail Route Selection
The route alignment and the station location are basically proposed in compliance with the above
criteria. However, several locations with particular features, such as accessibility to facilities
with high customer attraction, construction cost and restrictions on alignment, were examined
individually with alternative options. Please refer chapter 4 for a detail. Alternative options and
comparative studies were conducted from the environmental and social aspects for the following
locations, and options / routes with less environmental and social impacts were selected:
• National Hospital Station to Borella Station: Social sensitivity and accessibility

• Borella Station to Welikada Station : Impact to Bo tree
• Sethshiripaya Station to IT Park Station: Traffic Impact
• Line 2: Landscape Impact
12.5 Environmental Scoping Results

An environmental scoping matrix was prepared by JICA study team based on the nature of
expected impacts from the proposed project and environmental and social baseline condition as
shown in Table 12.5.1.
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Table 12.5.1 A Result of Environmental Scoping for the Proposed Project

Rating
Construction
Operation
No Impacts Assumed impacts
Social Environment
1 Land acquisition and A－ D Pre-construction： For the Monorail project, no more than 50
resettlement households are expected to be resettled and some government and
commercial lands need to be acquired, particularly areas for
stations. The planned site for the Depot is agricultural land and
marsh land.
2 Local economy such B＋ B＋ Construction：Local economy is expected to improve through
as employment and creation of employment opportunities for both skilled and unskilled
livelihood, etc. labourers.
Operation：The reduction of commuting time and improvement of
accessibility will contribute to the development of the local
economy.
3 Land use and B－ B＋ Construction：The Monorail will utilise existing roads as much as
utilization of local possible, avoiding changes in land use. Approximately 10ha of
resources agricultural land in Malabe will be used as a Depot site.
Operation：Sophisticated use of land as well as development of the
local economy is expected along the Monorail route.
4 Social institutions D D The proposed project does not have any anticipated impacts.
and local
decision-making
institutions
5 Social infrastructures A－ B＋ Construction：The proposed project may require the replacement of
and services social infrastructure, such as light cables or water pipes.
Operation： The implementation of the Monorail will bring a
positive impact on social infrastructure.
6 Poor D D No slums are located along the proposed route and impoverished
people will not likely be adversely affected by this project.
7 Indigenous and D D There are no indigenous or ethnic people in the project site.
ethnic people
8 Misdistribution of D D The proposed project will not have a serious negative impact on
benefits and damage this issue, however, careful attention should be paid to
compensation for those who are required to be resettled or with lost
livelihood.
9 Local conflict of D D The proposed project will not have serious impacts on this issue.
interests
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No Impacts Rating Assumed impacts

10 Gender D D The proposed project will not have serious impacts on this issue.
11 Children rights D D The proposed project will not have serious impacts on this issue.
12 Cultural heritage A－ D Construction：The Monorail may affect culturally important trees,

namely Bo trees. Several Bo trees have been identified along the
route and the Bo tree at Borella Junction is known to be highly
sensitive due to its religious value.
13 Landscape A－ A+/ Construction：Construction activities will cause adverse impacts on

- the landscape due to the presence of construction equipment and/or
construction dust.
Operation：The implementation of an elevated transport system will
introduce a new landscape element in Colombo, which could be
negative or positive depending on the design of construction,
monorail cars, etc.
14 Hazards (Risks) of D D The proposed project will not have serious impacts on this issue.
Infectious diseases
such as HIV/AIDS
15 Accidents B- B＋ Construction：construction activity will reduce traffic capacity on
roads around the construction area, possibly increasing the number
of accidents.
Operation：The proposed project will provide a safer transportation
method.
Pollution
16 Air pollution A－ B＋ Construction：Emission from construction equipment and vehicles
will increase air pollutants. The impact will be temporary and
limited to the area near the construction area.
Operation：No major air pollutant will be emitted during the
operational stage. Air quality is expected to improve due to
reduction of traffic through implementation of the Monorail.
17 Noise/Vibration B－ B－ Construction ： Construction noise will be generated by
construction equipment and activities.
Operation：The proposed monorail is expected to be equipped with
rubber tires and noise and vibration impact is expected to be
limited.
18 Waste management B－ B－ Construction：Construction surplus soil, sludge, general waste and
(Solid and liquid)/ wastewater will be generated from construction activities.
Soil contamination
Operation：Solid and liquid waste will be generated from stations
or the Depot.
19 Odour D D Construction/Operation：No odour is anticipated.
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No Impacts Rating Assumed impacts

Natural Environment
20 Hydrology C C Construction・Operation：The Monorail route is expected to pass
along the reservoir and the Depot is expected to be installed on
marsh land. These activities may cause hydrological impacts.
21 Topography and D D Construction/Operation：The site is relatively flat and no large scale
Geographical cut or fill is anticipated.
features.
22 Bottom Sediment D D Construction：There is the possibility of impacting bottom sediment
if construction activities occur around watersheds. If construction
of bridges is proposed, careful consideration is necessary to
minimise the impact.
Operation：No impact is anticipated to bottom sediment during the
operational stage.
23 Protected area B－ C Construction：The proposed route may pass designated areas,
including Sri Jayawardenapura Sanctuary designated by the
Department of Wildlife Conservation (DWC) and an
Environmental Protection Area designated by the Central
Environmental Agency (CEA).
24 Flora, Fauna and B－ D Construction：Trees and vegetation along the Monorail route will
Biodiversity be removed or partly trimmed during construction. These may
include older large trees and culturally valuable trees (Bo trees).
Operation：No impact is anticipated.
Other
25 Global warming D B＋ Operation：The proposed project will contribute to the reduction of
CO2 emissions from the transportation sector.
26 Sun light D D There would not be a significant negative impact on this issue due
to the fact that the structure of the beam is light as well as that the
altitude of the sun is high all year around.
A+: Significatnt positive impact is expected
B+: Some positive impact is expected
A-: Significant negative impact is expected
B-: Some negative impact is expected
C: Impact is unknown
D: Impact is negligible or no impact is expected
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12.6 TOR Development for Relevant Environmental and Social Studies

In order to minimise the potential adverse impacts of the proposed project as identified in the
above scoping matrix, it is important to conduct an Environmental Impact Assessment (EIA) study
to assess and mitigate the expected impacts. The general procedure applied for the EIA study is
described below. Collection of baseline data and information relating to ecological, physical,
physio-chemical and social environments in and around the project site, in order to set the baseline
of the existing environment around the project route and to evaluate the potential environmental
and sociological impacts during the construction and operational stages of the project.
Carrying out baseline studies on noise, vibration, ambient air quality and water quality (ground
water and surface water) measurements along the project route in order to understand the baseline
parameters.
• To have a dialogue with all stakeholders including Government agencies having

jurisdiction over the project and the project affected areas, local communities and
householders directly or indirectly affected by the project.
• To assess the potential impacts from the project during the construction and operational
stages.
• To formulate the required mitigation measures for the potential adverse impacts so as to
minimise such impacts and to ensure compliance with all environmental regulatory
standards prescribed by the Central Environmental Authority as well as other regulatory
agencies.
• Prepare an Environmental Management and Monitoring Plan (EMP) in order to ensure
that the project activities are carried out in a sustainable manner during the construction
and operational period.
A survey methodology for each impact item was developed and is described in Table 12.6.1.
Table 12.6.1 Survey mythology for each item
Item Survey Methodology
Land acquisition and Collect secondary and primary data through document review and
Resettlement interviews with the affected people.
Identify the number of houses, businesses/livelihoods, industries,
structures and other properties affected by the project.
Identify families to be relocated and impacts of relocation as well as
impacts on livelihoods and economic activities.
Prepare Resettlement Action Plan (RAP)
Land use and Identify the source of material use and assess the impact
utilization of local Identify practicable mitigation measures
resources
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Social Infrastructure Collect the secondary data regarding public infrastructure including
and Service underground utilities affected by the Project, such as roads, electric
cables/poles, street lights, water supply, sewage and drainage, gas and
telecommunication and other public infrastructure and utilities.
Identify practicable mitigation measures
Cultural Heritage Identify and collect data on the culturally important components,
including worshiped trees, temples and churches.
Landscape Define the landscape character and evaluate landscape impacts

Accidents Conduct traffic count survey and review secondary data to collect traffic
data at key traffic points.
Air Collect secondary data regarding ambient air quality in Colombo area
Noise Conduct noise measurement survey at selected locations

Assess the impact based on international practice
Vibration Conduct vibration measurement surveys at selected locations

Assess the impact based on international practice
Waste Management Identify Types of solid and liquid waste and their quantities treatment
methodology
Hydrology Collect information on the hydrological situation of flood retention areas,

marsh areas, and water bodies around the project area.
Conduct hydrological modelling to study the possibility of ground
subsidence and aggravation of floods
Protected areas Describe the condition of protected areas located in proximity to the
project route, including the declared year, responsible organization,
reason for the designation and important aspect of a protected area.
Predict and assess the significance of the impact from construction and
operational activities on the protected area.
Flora, Fauna and Conduct a site visit and review relevant documents to identify the status
Biodiversity of flora, fauna and biodiversity.
Evaluate the impact to flora and fauna considering the conservation
status as well as biodiversity value.
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12.7 Impact Assessment

Land acquisition and Resettlement
Total population affected by the Project is 474+ persons. This includes 10 residential household
heads with their 35 family members, 57 business owners with their 170 employees, 39
commercial property owners, and 37 paddy land owners and 7 "Ande" farmers (tenant cultivators)
working in paddy lands. There are also 36 "other" landowners who own lands categorised in
neither residential, commercial nor agricultural land. Number of affected structures are 74 and
total affected land is 180,933.5 m2. Number of households and business owners to be relocated
due to this project is estimated as 3 households and 12 business owners.
A RAP (Resettlement Action Plan) was developed in order to mitigate the impact of land
acquisition and resettlement. Please refer to section 12.11 for more detail.
Land use and utilization of local resources
Construction materials used for the project include concrete (rubble, sand and cement), metal and
soil with following approximate quantities of each material. These materials will be sourced
from the approved sources (e.g. quarries/burrow pits with EPL, sea sand from SLLRDC sand
stockpiles etc.) “
• Concrete : 345,000m3
• Metal: 35,000m3
• Earth work: 177,000m3
Social Infrastructure and Service
Existing infrastructure utilities, including water supply pipes, sewage pipes, telecommunication
lines and electricity lines would be disturbed during the construction stage due to excavation
activities as well as construction activities such as for piers, beams and stations. Underground
utilities including water supply pipes, telecommunication lines and some electricity cables may
not be impacted by the excavation activity, since these are buried on the edge of the road.
Excavation for preparation of pier foundations is required up to 4m from the centreline of the
Monorail alignment, therefore if lines are installed on the edge of roads, they would not be
impacted by the excavations. However, some sections with centre medians including a section
between Borella and Rajagiriya have street lights in the middle of the roads, therefore these lights
need to be temporally replaced and reinstall in the area later.
Overhead lines including distribution lines and transmission lines will be disturbed pre
construction stage. Especially, since there are many distribution lines crossing the proposed
Monorail route, appropriate mitigation measures such as rerouting are necessary. The proposed
Monorail route crosses 22kv transmission lines at 2 points, one is between the proposed Malabe
station and the IT park station, and the other is at the entrance to the Depot. Since the 22kv
transmission lines are reasonably high, the Monorail may be able to go under the line with a safety
buffer. However, detailed investigation and consultation with CEB is required at the detail design
stage.
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Cultural Heritage
The monorail route may affect several Bo trees, which have religious value. Through an interview
with government personnel as well as the general public, it was revealed that the Bo tree at
Borella junction is particularly important. Therefore, alternatives were evaluated to avoid
significant impact to the Bo tree as described detail in Section 4.2.3. The route was decided to go
through the bus terminal site which is situated north of the Bo tree to avoid any impact to the Bo
tree.
Landscape
During construction stage, construction activities such as the presence of construction machinery,
dust or increased traffic due to construction would create adverse visual impact. Therefore, there
would be significance adverse visual impact during the construction stage, however the impact
would be temporary and limited to the construction area.
The project will not have a major adverse impact on aesthetics during the operational stage.
However the landscape could be improved through the adoption of certain measures. Figure
12.7.1shows an image of the Monorail System in Colombo.
Figure 12.7.1 Image of Monorail System in Colombo
Accidents
There will be a major impact on traffic flow during the construction period of the project which
would increase accident risk significantly. Several critical areas have been identified which will
be severely affected during the construction period. These sections include the Borella Junction,
Lipton Circle, and the Talahena- IT Park road section, Battaramulla to Welikada road section and
E. W. Perera Mawatha. A comprehensive traffic management plan must be drawn up in
consultation with the RDA, CMC and the Traffic Police in order minimise the traffic impact
caused during the construction period of the project.
Air
During the operational period, the monorail will have no adverse impact on air quality as there are
no air emissions from the monorail. In fact, there will be a contribution to improvement in air
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Final Report
quality due to the reduction in the number of private vehicles on the road due to the operation of
the monorail. During the construction period, however, there could be adverse impacts on air
quality due to dust generation from the construction work. Several mitigation measures must be
adopted in order to reduce the pollution and nuisance due to dust generation, such as watering.
Noise and Vibration
With respect to noise pollution due to the operation of the monorail, an analysis was carried out
using the noise levels from similar monorail systems in Japan. The analysis has shown that the
area within which the monorail will operate has relatively high baseline noise levels and the
monorail noise will have minimal impact on the existing noise levels in the area concerned. The
monorail route passes close to the National Hospital which is considered to be a sensitive location.
Since there is a redevelopment plan for the National Hospital in the near future, the hospital could
be redesigned in such a way as to minimise the impact of noise to the hospital patients.
Waste Management
As far as the waste water from the depot and stations are concerned, the wastewater will be treated
to the standards stipulated by the CEA through suitable treatment systems. The treated
wastewater will be reused for flushing toilets and gardening purposes and only the remaining
wastewater will be discharged into the environment. The wastewater from some stations could
be directed to the sewerage system if a sewer system is available in the area. It is also very likely
that by the time the monorail system commences operation, the existing sewerage system in the
Colombo City will be expanded to cover other areas such as Battaramulla in which case the
wastewater from the depot and the stations in this area also could be discharged into the sewer.
Hydrology
With respect to hydrology, the monorail route traverses through a wetland area and paddy fields in
the Battaramulla and Malabe areas. A depot is to be built in Malabe. Due to the potential
impacts due to the filling of land in this sensitive area, a decision has been taken not to build the
depot on filled land but to build it on columns in order to ensure minimum impacts on the
hydrology. The hydrological study carried out for the project has revealed that under these
conditions the hydrological impact of the proposed project will be minimal.
Protected area
There are two environmentally sensitive areas in close proximity to the monorail route, namely the
Sri Jayawardenapura Bird Sanctuary, declared by the Department of Wildlife Conservation in
1987, and the Thalangama Tank Environmental Protection Area declared by the Central
Environmental Authority in 2007. However the impact of the monorail operations on these two
areas is considered to be insignificant.
Flora, Fauna and Biodiversity
Since the monorail mainly goes on existing roads, the number of trees which need to be cut down
is low and there are no endemic or rare species which require to be protected along the monorail
route as the route traverses through a heavily built up urban area.
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12.8 Environmental Management Plan

An Environmental Management Plan (EMP) was developed as shown in Table 12.8.1 based on the
impacts and mitigation measures discussed in the EIA study. It is important that this EMP is
revised during the detailed design stage and the updated EMP should be part and parcel of the
contract documents. Implementing the EMP during the construction period is a responsibility of
the contractor under the supervision of PMU. A budgetary provision should be kept for such
measures. Implementation of the Environmental Management Plan (EMP) will also be carried
out under the control of the PMU.
Table 12.8.1 Environmental Management Plan (EMP)

Impact Impact Reasons for attributed impact rating Proposed Mitigation Measures Monitoring
Theme Rating (Agency
responsible)
Pre/Construction
Operation
Land A- D Construction stage Construction stage PMU/Extern

Acquisitio Social impacts due to land acquisition A comprehensive Resettlement Action Plan is being al
n and and some resettlement. Land needs to prepared indicating details of families being displaced Monitoring
Resettleme be acquired for the stations and depot. or affected due to land acquisition. Compensation Agency
nt Several residential and commercial packages to be given will be in line with Government
buildings will be affected due to the Policy.
project.
Operational Stage Operational Stage
Affected people may be disturbed Monitoring shall be conducted for affected people
bychange to a new life. under the Resettlement Action Plan.
Land use B- D Construction stage Construction stage PMU

and Sand or gravel is required from local Construction materials such as metal and sand should
utilization sources for the construction. be sourced only from quarries with the required
of local permits and licenses.
resources
The possibility of using sea sand should be
investigated in order to minimise the use of river sand
and the resulting environmental problems.
Social A- D Construction stage Construction stage PMU
Infrastruct Water pipes, telecommunication lines, The project implementing agency and contractor
ure and drainage pipes and electricity lines will should have very close interaction with agencies
Services be impacted during the construction. having infrastructure facilities such as underground
cables, pipelines etc. within the project area, such as
the Ceylon Electricity Board, National Water Supply
and Drainage Board, Sri Lanka Telecom.
Cultural B- D Construction stage Construction stage PMU
Heritage The monorail route may affect several The monorail route shall be designed to avoid the Bo
Bo trees which have religious value. tree at Borella Junction which is known to be a very
sensitive issue.
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responsible)
Pre/Construction
Operation
Landscape A- B+ Construction Stage Construction Stage

There could be adverse impacts during The adverse visual impacts during this stage could be
the construction stage on aesthetics due reduced by measures taken to mitigate dust pollution
to construction activities. and by efficient site management maximizing
orderliness. Special care should be taken to
conserve vegetation as much as possible when
developing the monorail through the wetland between
Lumbini temple and Palamthuna Station.
The project will not have a major Depot: A belt of trees and shrubs should be
adverse impact on aesthetics during the established as an attractive screen along the edge of
operational stage. However the the Malabe Depot site, with some quick-growing
landscape could be improved through species to provide early screening. There should
the adoption of certain measures. also be planting of appropriate vegetation in pockets
of open land if available within the site. Plants
which tolerate water-logging should be used to the
maximum possible, as the site will have to be
maintained as a wetland, although a few small
mounds and ridges may be made for planting other
desirable species.
Between Lumbini Temple & Palamthuna: Tree and
shrub planting should be done to compensate for trees
and shrubs that may have to be removed.
Route along Dharmapala Mawatha adjoining
Colombo Town Hall premises: The tree strip between
the Monorail route and Colombo City Town Hall
premises should be assessed and enhancement should
be undertaken, involving inter-planting if necessary.
Accidents A- D Pre-Construction or Construction Pre-Construction or Construction Traffic
Traffic congestion may occur on roads A comprehensive Traffic Management Plan should be Police/RDA/
where construction is taking place. prepared and implemented in order to reduce traffic PMU
congestion. Special attention should be paid to
critical locations such as Lipton Circus, E W Perera
Mawatha, Borella Junction etc. as indicated in the
report.
Road closures should be reported early to road users
and residents.
Coordination with traffic police is important.
Warning signs are to be provided. Material
transportation vehicles should operate during low
traffic times.
There is a possibility of accidents and The workers should be properly trained on how to
health hazards to workers handle emergency situations without endangering Contractor/
their health and safety. . PMU
Haphazard material stockpiling could Stockpile material only at predetermined approved
result in visual impacts and may places in an orderly manner. Conform to safety Contractor/
increase the risk of accidents and measures. PMU
injuries.
Operation Operation
Traffic congestion may improve due to No mitigation required
people using the monorail instead of
buses or private vehicles,
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Final Report
responsible)
Pre/Construction
Operation
Air B- D Construction stage Construction stage Contractor/P

Pollution Air pollution due to dust generation 1. Water is to be used for dust suppression by MU
during the construction stage will be a wetting of dust generating surfaces. through a
major impact. Construction equipment should be maintained recognised
Air pollution due to vehicular emissions properly. Vehicles transporting construction laboratory,
from heavy vehicles used for transport material are to be maintained in optimum independent
of construction materials will be an condition in order to reduce vehicular emissions. monitoring
issue. 2. During Construction of temporary dust barriers, by CEA
water sprinkling, floor wetting, limiting or
slowing down of main dust generating activities
such as excavation and heavy vehicle movement
is required.
3. Use heavy vehicles that are in good condition.
4. Solid waste generated during the construction
period including trees, bushes and other plants
removed during site clearance are not to be
burnt in the open.
5. All necessary protective equipment such as
goggles, masks and other gear are to be
provided to the workers in the construction site
in order to minimise exposure to dust and lead
fumes (during welding).
Air pollution will not be an issue during No mitigation measures required
the operational stage.
Noise and A- C Pre-Construction or Construction Construction stage Contractor/P
Vibration During construction, noise will be (Noise) MU through
generated in the construction area by 1. Use low noise emitting equipment and a recognised
construction activities and the operation construction methods. laboratory
of machinery used in construction during
2. Limit night-time work as far as possible, in
possibly causing a public nuisance. construction
order to reduce nuisance. Carry out
period with
construction activities that generate high noise
independent
levels only during day time up to 2100 h. Only
monitoring
light construction activities should be carried
by CEA.
out during the night time depending on the
requirement.
3. Periodic noise level monitoring should be
carried out in neighbouring community areas in
order to identify noise related issues and take
corrective action where necessary.
4. Transportation of materials using heavy vehicles
should not be allowed during the night time.
(Vibration)
1. Carry out construction activities that generate
high vibration levels only during day time up to
2100 h. Only light construction work should
be carried out during night time depending on
the requirement.
2. Periodic noise and vibration level monitoring
should be carried out in neighbouring
community areas in order to identify vibration
related issues and take corrective action where
necessary
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responsible)
Pre/Construction
Operation
3. Establish a proper monitoring system to ensure

Noise and regular inspection and maintenance of
Vibration equipment.
(Continue) Operation
(Noise)
Noise levels to be monitored around sensitive
locations such as temples, hospitals and schools and
if high noise levels are observed, action is to be taken
to impose low speed zones in these areas.
(Vibration)
Monitor vibration if required.
Waste/Soil B- C- Pre-Construction or Construction Pre-Construction or Construction Contractor/P
Contamina Surface and groundwater quality may 1. Collection of sewage/grey water generated in MU during
tion be affected during the construction septic and soakage pits. construction
Wastewate period in terms of turbidity, oil and period with
r 2. Minimise fuel and lubricating oil spills from independent
grease due to; construction equipment and vehicles by the use monitoring
1. Impacts from sewage, if work of secondary containment and adherence to by CEA.
crews live on the construction good housekeeping practices.
sites. 3. The wastewater generated from cleaning of
2. Impacts due to oil spills. concrete batching equipment is to be collected
3. Impacts due to wastewater from separately in a tank in a manner that does not
concrete batching. contaminate storm water, and should be
subsequently treated in batches prior to disposal.
Operation Operation
Pollution due to sewage and wastewater 1. General oily water, equipment and vehicle wash
from the depot and stations waters from the depot are to be contained and
directed to an oil-water separation system.
After oil separation, wastewater is to be directed
to a wastewater treatment system and treated to
the standards specified by the CEA.
2. Wastewater and sewage from the stations to be
treated in a wastewater treatment system.
Treated wastewater is to be used for gardening
and toilet flushing. Remaining water is to be
discharged into the sewer system where
available. It is expected that sewer
connections will be available in most of the
areas of the monorail route.
3. Increase the frequency of
preventive .maintenance to control oil spills
from machinery and equipment.
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responsible)
Pre/Construction
Operation
Waste/Soil B- B- Construction Stage Construction Stage Contractor/P

Contamina Pollution at work sites may occur due to Make provisions for proper disposal of construction MU during
tion haphazard disposal of construction waste as well as domestic the waste from worksite. construction
Solid Waste wastes such as empty cement bags, Make arrangements for collection and storage of all period with
rubble, off cuts, excavated soil recyclable material such as plastics, paper and glass independent
material cut pieces, and solid and and hand over such materials to registered recycling monitoring
liquid waste from labour camps companies. Have a formal agreement with the by CEA.
Water pollution may occur due to oil relevant Local Authority/ies for collection of waste
spills and leaks. on a regular basis
Construction equipment is to be well maintained in

order to prevent oil spills and leakages from
equipment. Good housekeeping practices are to be
maintained at all worksites in order to prevent oil
spills and leaks.
Pollution may occur due to haphazard A comprehensive waste management programme
waste disposal by passengers using should be implemented at all Stations and the Depot.
Stations. Sufficient receptacles of different colour codes are to
be placed at strategic locations for waste collection.
All recyclable waste such as paper, plastic and glass
should be given to registered recycling companies.
Biodegradable waste should be composted within
each premises, and the compost used in the garden.
A formal agreement should be in place for the
relevant Local Authority/ies to collect the waste on a
daily basis.
Hydrology B- D Construction stage Construction stage SLLRDC/C
The site where the Depot is being 1. A comprehensive hydrological study has been EA
planned is a low lying area, and land carried out in order to assess the flood risk due
filling in this area may aggravate the to the project and construction of the Depot in
existing flooding problem. particular. A decision has been made not to
construct the Depot on filled land. The depot
will therefore be constructed on pillars, in order
to minimise the flood risk in the area.
2. Any filling related to the project should be
carried out in phases in order to minimise the
flood risk and other impacts.
There will be no hydrological impacts No mitigation measures are required during the
of the project during the operational operational stage.
stage.
Protected C D Construction stage Construction stage
area The “Thalangama Environmental No specific action required in this regard.
Protection Area” is located 1-2.55km
from the Monorail track, but the
monorail runs close to the Sri
Jayawardanapura Sanctuary. However
ecological impact on these and other
sensitive habitats due to the monorail
can be considered as low.
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responsible)
Pre/Construction
Operation
Flora, B- D Pre-Construction or Construction Pre-Construction or Construction Contractor/P

Fauna and Pruning of trees along the monorail Expert advice should be sought during pruning of MU
Biodiversit route maybe required. Unplanned trees along the monorail route.
y pruning can result in trees being
uprooted during heavy rains and windy
weather.
Imbalance in the ecological Robert Gunawardene Mawatha, removal of the thick

environment due to unplanned clearing vegetation belt of Annona glabra (S: Wel aththa) and
of marsh/paddy field vegetation and tall Terminalia arjuna (S: Kumbuk) vegetation and
trees for construction activities. species such as Trema orientalis (S: Gadumba),
Macaranga peltata (S: Kanda), Dillenia suffruticosa
(S:Diyapara), and Terminalia catappa (S:Kottamba)
should be completely avoided. In the Depot area,
conserving the tall trees as much as possible is highly
recommended, and additional tree planting is
recommended in this area.
Unplanned land clearing, excavation, 1. Excavations, stockpiling and filling activities at
and filling for infrastructure facilities at sites in Robert Gunawardene Mawatha and
selected areas in Robert Gunawardene Chandrika Bandaranayake Kumaratunga
Mawatha and Chandrika Mawatha should be completed before the onset
Bandaranayake Kumaratunga Mawatha, of monsoons in order to prevent the spread of
could result in adverse effects to excavated material into the surrounding habitats.
existing habitats, their fauna and flora. 2. The excavated material should be used for the
construction activities as far as possible.
3. Unwanted material should be removed promptly
and dumped at recommended dump sites only.
4. Stockpiling and filling should be carried out
without disturbing the natural drainage system
of the project area.
5. Stockpiles from ground excavations should be
kept covered until used/removed, to prevent
them from washing away.
Disposal of untreated sewage and 1. Adequate treatment and disposal facilities
wastewater from worksites can affect should be provided for solid waste, wastewater
fauna and flora. and sewage
Cleaning water from concrete batching 2. The wastewater generated from cleaning of
equipment if released to waterways will concrete batching equipment should be collected
increase turbidity and reduce separately in a tank in a manner that does not
photosynthesis in the water, resulting in contaminate storm water runoff, and should be
adverse impacts on organisms in the subsequently treated in batches prior to disposal.
aquatic food chain as well as impair
breathing in fish by clogging their gills.
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Final Report
responsible)
Pre/Construction
Operation
Lubricants from construction equipment 1. Accidental spillages of oil and accidental

Flora, can lead to oil pollution of the spillages from construction equipment must be
Fauna and waterways in the study area, resulting in prevented through an effective and regular
Biodiversit a surface oil film formation which will maintenance programme and good
y limit light penetration and subsequent housekeeping practices.
(Continue) primary production 2. Make provisions for proper disposal of
Waste such as plastics, polythene, construction waste as well as domestic waste
excess sand, boulders, coarse and fine from the worksites. Make arrangements for
aggregate, cement bags, cut pieces of collection and storage of all recyclable material
materials, various chemicals, paints, etc. such as plastics, paper and glass and hand over
will bring adverse effects through visual such materials to registered recycling
pollution and by settling on different companies. Have a formal agreement with the
aquatic and terrestrial habitats, relevant Local Authority/ies for collection of
waste on a regular basis
The study area has one indigenous These species should not be removed but only pruned
species Phyllanthus emblica (S*:Nelli) as required.
that falls into Vulnerable category, two
indigenous species, Madhuca longifolia
(S*:Mee) and Dipterocarpus zeylanicus
(S*:Hora) that have been identified as a
Near Threatened species and one
endemic species, Diospyros ebenum
(S*: Kaluwara) categorised as
Endangered under the National Red List
2012 of Sri Lanka (MOE 2012).
Operational phase Operational Phase

During operational phase, the activities 1. During the operational phase, a proper solid
in the Depot area are likely to create waste and a wastewater management strategy
some environmental problems. should be in place at the Depot area.
2. Leakages of oil, fuel and lubricants from
maintenance work on the monorail and from
parked vehicles at the Depot area should be
controlled with appropriate measures.
3. Care must be taken to maintain the public
sanitary facilities to minimise adverse effects.
A comprehensive management system should be
implemented for solid waste management
A+: Significatnt positive impact is expected
B+: Some positive impact is expected
A-: Significant negative impact is expected
B-: Some negative impact is expected
C: Impact is unknown
D: Impact is negligible or no impact is expected
12.9 Monitoring Plan

As part of the EMP, a monitoring plan was developed to monitor the significance of impacts as well as the
effectiveness of the mitigation measures adopted. The monitoring plan is described in Table 12.9.1.
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Table 12.9.1 Monitoring plan for construction and operational stages
Parameter Stage Location Parameter Responsible Frequency Independent Cost

Agency/Person Monitoring
Unit (Rs) Total
Agency
Water Quality-oil Construction/Operati Depot site-Detection oil PMU Quarterly CEA (during Management cost
spills on of oil spills routine
inspections)
Noise Construction 8 Locations at the Laeq 24 hr Noise Contractor and Immediately on 10,000/sample 960,000(4
construction sites Level (day & PMU through a Quarterly for 4 receipt of years)
along the route and night) recognized years and on complaints
at nearby residential laboratory receipt of
areas Peak noise level complaints
Operation (Lmax) PMU through a Bi annually and on Immediately on 10,000/sample 160,000/year
recognized receipt of receipt of
laboratory complaints complaints
Vibration Construction 8 Locations at the Frequency Range Contractor and Quarterly for 4 Immediately on 10,000/sample 960,000(4
construction sites (Hz) PMU through a years and on receipt of years)
along the route and recognized receipt of complaints
at nearby residential Vibration in ppv laboratory complaints
areas (mm/sec)
325
Operation Area where PMU through a immediately on on Immediately on 10,000/sample NA
complain received recognized receipt of receipt of
laboratory complaints complaints
Ambient Water construction Baseline monitoring Water Quality of Contractor and Quarterly CEA-Annually 10,000/sample 580,000(4
Quality of Inland points (4 points) receiving water PMU years)
Water body body to be checked
receiving waste periodically pH, In house
water BOD, COD,TSS Laboratory
Independent
monitoring
through a
recognized
Laboratory
Operation PMU on receipt of CEA-Annually 10,000/sample NA
complaints
Quality of Operation Treated Wastewater Treated wastewater PMU Quarterly CEA (Annually) 10,000/sample 30,000/year
treated discharge point at quality to be
Wastewater Depot measured Independent
periodically.pH, monitoring
BOD, COD, TSS through an
appropriate
Laboratory
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Final Report
12.10 Stakeholder Meeting

A stakeholder meeting was conducted at the scoping stage of the EIA study on 18 February 2014
to disclose the project information as well as to obtain ideas and experience of stakeholders for the
project development. Stakeholders invited for the public consultation included relevant
government agencies and relevant local authorities as well as the public and a total of 106
participants attended the public consultation. In the meeting, the Master Plan for Colombo
Transport Development (ComTrans), objectives of the Monorail, Monorail route and the Project
area, and the main features of the proposed Monorail Project were presented by MOT and the
JICA Study Team. Subsequently, the JICA Study Team explained the EIA study for the Project
including likely environmental impacts that may arise during the construction and operation
periods. Following the above presentations, a question and answer session was held. Key points
raised during the stakeholder meeting and action taken to address the comments are summarized
below.
#1 Question : Mr.S.Opanayaka (Director Lands) Road Development Authority (RDA):
• Please provide us the exact trace of the monorail route, so we can clarify our plans and
concerns, if any, in or around the trace
• RDA is planning for an elevated highway along the Baseline Road, sometimes there
might be some issues during the construction of foundations, especially on the
underground walkway tunnel at Borella Junction
• Since some main roads will be affected, roads may have to be widened to reduce the
impact. Also there may be instances where new roads have to be constructed for the
project ( e.g. behind Sethsiripaya)
• When land is acquired for the project, proper liaising should be done with RDA.
• There should be a proper traffic management plan.
Answer: JICA Study Team
• It looks like Borella is the place where the highway and the monorail route are
crossing each other. The JICA Study Team agreed to consult with the relevant parties
to resolve any issues.
• We will inform you after finalizing the route, land acquisition could be done by the
ministry, and we are planning to obtain spaces/Government lands where available so
that the acquisition process is minimised.
• We plan to consult with RDA for land requirements when finalizing the project
designs.
Action taken by the project proponent
• Several consultations were held with RDA to discuss the proposed project and project
information was shared with RDA.
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#2 Question: Mr.S.H.M Somawardena -(Engineer )Ceylon Electricity board (CEB):
• At some places underground electrical cables could be in the way of the foundations
• 4 new electricity substations have been proposed to supply additional electricity to
Colombo city and they may be used to supply electricity to Monorail operation.
• We need more details about the monorail and the electricity requirements
• We will consider this in our project but we understand that underground line shifting
may be difficult.
• We expect to liaise with CEB with repect to the electricity requirements for the
project.
Action taken by the project proponent
• Several consultations were held with CEA to discuss the relocation of utilities.
#3 Question: Mr.Gayan Weerasekara – A resident from Kollupitiya
• Many lands and plots are available for depot and station type of developments.
Regarding land requirements, for us to assist, we need to know the exact location of
the monorail trace and where stations, depots, etc. are to be proposed
• What area of Kollupitiya will be acquired?
• We will definitely share the trace with you, and in some places we may need to store
our beams and other building materials so we request you to relay this message to all
your GNs to provide us necessary assistance during this project.
• No major land acquisition is planned in Kollupitiya at this point in time.
No further action was required for the EIA study.
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#4 Question: Mr. G.A.C.R. Ganepola (Engineer )Colombo Municipal Council–CMC
• It is important to acquire lands after the finalization of the project. It is a time

consuming and difficult task.
• CMC is undertaking overhead bridge developments including a proposed overhead
bridge in Kollupitiya area, you may need to share the trace and designs to go in line
with these proposed developments.
• Construction of the proposed flyover near Kollupitiya junction will start soon and is
planned to be completed in 2016. Monorail designs will have to be compatible with
this construction.
• We will definitely share the trace with you.

• There are still no plans to acquire lands on a large scale around Kollupitiya area.
• We will share the trace and designs to go in line with the developments
Action taken by the project proponent.
• Further consultation will be made with CMC
#5 Question: Mr.A.D.V.Dushantha (Development Officer) – D.S Office Sri

Jayawardenapura – Kotte
• There are a large number of paddy fields around Malabe area along the roads. These
could be utilised with minimum disturbance to traffic during construction and
operation. Any impacts should be studied.
• We will study this aspect.
Action taken by the project proponent.
• It was confirmed that the suggested area is not big enough to accommodate the Depot.
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12.11 Land Acquisition and Resettlement

A Draft Resettlement Action Plan (RAP) was made based on the current data and information
regarding the Project. In this section, some of the key points extracted from the draft RAP are
shown.
12.11.1 Potential Impacts
(1) Project Component and Expected Areas of Land Acquisition and Resettlement
Main Components
Land acquisition and resettlement will be necessary due to introduction of Monorail project
components which include the structure of the Monorail system, stations, depot and related
facilities as described in Chapter 5.
The Monorail system is an elevated railway and most of the route for the proposed project goes
over existing roads. In terms of the space (width) required for the Monorail, it is important, in
practice, to secure sufficient space along the Monorail route for emergency evacuation in case of
accident, so that evacuation devices (such as ladders) can be accommodated in the area. Taking
account of this, the space to be secured for the proposed Monorail alignment was, in principle,
decided to be total width of 12m, 6m each side of the centreline of the Monorail alignment. For
the stations, secured space is set to be 2m from the structure. An image of secured space for the
Monorail alignment is shown in the Figure 12.11.1.
Figure 12.11.1 Secured Space for Monorail Alignment
Other Facilities
It should be noted that the project components below Table 12.11.1 are not included in this RAP
study mainly because the lands for these facilities are owned by governments.
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Table 12.11.1 Other Main Facilities associated with the Monorail

Facility Description Location Scale (approx.) Remarks
Multi Modal MMC is a transferring Malabe station 1.5 ha Not included in this RAP as
Centres station for feeder bus the lands for MMC are
(MMC) users, railway basically owned by the
passengers, and government. Also,
passenger cars traveling information about the exact
to the monorail. area to construct MMC is not
available at the time of this
draft RAP.
Park & Ride P&R is a facility which 6locations includes: Welikada: 0.7 ha Not included in this RAP as
(P&R) is a car park with Kotahena, Sethsiripaya: the lands for P&R are
connections to public Welikada, 1.1 ha basically owned by the
transport that allow Rajagiriya, government. Also,
Lumbini
passengers to leave their Sethsiripaya, information about the exact
Temple: 1 ha
vehicles and transfer to Lumbini Temple, area to construct P&R is not
public transport. and IT Park stations Others: available at the time of this
unknown draft RAP.
(2) Areas expected to be affected
The project will affect 30 Grama Niladhari (GN) Divisions under four Divisional Secretariat (DS)
Divisions namely, Colombo, Thibirigasyaya, Sri Jayawardanapura Kotte and Kaduwela. The
affected DS Divisions and GN Divisions are shown in the Table 12.11.2.
Table 12.11.2 Affected Divisional Secretary Divisions and Grama Niladhari Divisions
Divisional Colombo Thimbirigasyaya Sri

Secretary Divisional Divisional Jayawardenapura Kaduwela Divisional
Divisions Secretariat Secretariat Kotte Divisional Secretariat Division
(DS) Division Division Secretariat Division
Grama Pettah Boralla South Rajagiriya Malambe West
Niladhari Fort Gothamipura Welikada North Malambe North
Divisions Kuppiyawatta West
Hunupitiya Welikada West Thalangama North
(GN)
Masangasweediya Kurunduwatta Welikada East Thalahena North
Kollupitiya
Keselwatta Thalahena South
New Bazar Batteramulla South
Suduwella Subuuthipura
Ibbanwala Muththettugoda
Slave Island Asiri Uyana
Maradana Batapotha
Aruppitiya
Kotuwegoda
Udumulla
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(3) Alternative Analysis
Since the early stage of the project planning, priority has been given to avoid and minimize land
acquisition and involuntary resettlement. Through mode selection analysis, several
transportation systems including BRT, AGT, LRT and Monorail were examined based on the
capacity and scheduled speed as well as economic, environmental and social aspects. One of the
key factors to be considered during this analysis was the impact of land acquisition and
resettlement and Monorail was selected as the preferred mode since the Monorail requires only
minimum land to be acquired. More detailed information on alternative analysis is described in
Chapter 12.4.
12.11.2 Legal Framework regarding Land Acquisition and Resettlement
(1) Laws and Regulations regarding Land Acquisition in Sri Lanka
The land acquisition and the resettlement processes in Sri Lanka are defined by the following
relevant regulations.
Land Acquisition Act (LAA) of 1950
The Land Acquisition Act of 1950 stipulates general provisions for land acquisition procedures in
Sri Lanka. It has been amended from time to time but only provides for compensation for land,
structures and crops. It does not require project executing agencies to address key resettlement
issues such as (a) exploring alternative project options that avoid or minimise impacts on people;
(b) compensating those who do not have title to the land; (c) consulting affected persons on
resettlement options; (d) providing for successful social and economic integration of the affected
persons and the host communities of the relocation sites; or (e) full social and economic
rehabilitation of the affected persons. It provides for the payment of compensation at market
rates for lands, structures and crops. It should be noted, however, that this act makes no
provision for involuntary resettlement.
National Involuntary Resettlement Policy (NIRP) 2001
As described above, no compensation is provided for involuntary resettlement issues under LAA.
In addition, people without title to the land and others that are dependent on the land cannot be
assisted under the LAA. In order to make sure that people affected by development projects are
treated in a fair and equitable manner, as well as to address the gaps between local practice and
international best practices, the Government of Sri Lanka (through the Cabinet of Ministers)
adopted the National Policy on Involuntary Resettlement (NIRP) on the 24th May 2001, and
thereby established a framework for involuntary resettlement in the project planning and
implementation stage. NIRP is also aligned with JICA`s safeguard policy, and it also highlights
the need for consultations with Affected Peoples (APs) and their active participation in the
resettlement process.
The basic principles of the NIRP are as followings:
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a) Involuntary resettlement should be avoided or reduced as much as possible by reviewing

alternatives to the project as well as alternatives within the project.
b) Where involuntary resettlement is unavoidable, affected people should be assisted to

re-establish themselves and improve their quality of life.
c) Gender equality and equity should be ensured and adhered to throughout the policy.
d) Affected persons should be fully involved in the selection of relocation sites, livelihood
compensation and development options at the earliest opportunity.
e) Replacement land should be an option for compensation in the case of loss of land; in the
absence of replacement land, cash compensation should be an option for all affected persons
f) Compensation for loss of land, structures, other assets and income should be based on full
replacement cost and should be paid promptly. This should include transaction costs.
g) Resettlement should be planned and implemented with full participation of the provincial and
local authorities.
h) Participatory measures should be designed and implemented in order to assist those affected to
be economically and socially integrated into the host communities.
i) Common property resources and community and public services should be provided to
affected people.
j) Resettlement should be planned as a development activity for the affected people.
k) Affected persons who do not have documented title to land should receive fair and just
treatment.
l) Vulnerable groups should be identified and given appropriate assistance to substantially

improve their living standards.
m) Project Executing Agencies should bear the full cost of compensation and resettlement.
NIRP requires that a comprehensive Resettlement Action Plan (RAP) be prepared where 20 or
more families are displaced. In cases where less than 20 families are displaced, the NIRP still
requires a RAP with a lesser level of detail. NIRP is applied to all development projects
regardless of the source of funding.
LAA Regulations in 2008
The latest of several amendments to the LAA is the Revised Regulation of 2008 (hereinafter LAA
2008) which was issued as Gazette No. 1585/7 in January 2009 by the Hon. Minister of Land and
Land Development. The LAA 2008 aims to solve underpayment for land and structures since
there had been a widespread opinion that compensation for land through the LAA process was
significantly less than the prevailing market values. The LAA 2008 incorporated many of the
NIRP principles into Sri Lanka`s legal framework.
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National Environmental Act No 47 of 1980 (NEA)
There are provisions in the NEA Act No.47 of 1980 which refer to Involuntary Resettlement.
The Act stipulates the types of projects which need approval under the terms of the NEA. The
schedule includes Item 12 which refers to “involuntary resettlement exceeding 100 families” that
will require preparation of an Environmental Impact Assessment.
(2) JICA Policies on Involuntary Resettlement
Key principles of JICA policies on involuntary resettlement is summarised below:
a) Involuntary resettlement and loss of means of livelihood are to be avoided when feasible by
exploring all viable alternatives.
b) When population displacement is unavoidable, effective measures to minimise the impact and
to compensate for losses should be taken.
c) People who must be resettled involuntarily and people whose means of livelihood will be
hindered or lost must be sufficiently compensated and supported, so that they can improve or
at least restore their standard of living, income opportunities and production levels to
pre-project levels.
d) Compensation must be based on the full replacement cost as much as possible.
e) Compensation and other kinds of assistance must be provided prior to displacement.
f) For projects that entail large-scale involuntary resettlement, resettlement action plans must be
prepared and made available to the public. It is desirable that the resettlement action plan
include elements laid out in the World Bank Safeguard Policy, OP 4.12, Annex A.
g) In preparing a resettlement action plan, consultations must be held with the affected people
and their communities based on sufficient information made available to them in advance.
When consultations are held, explanations must be given in a form, manner, and language that
are understandable to the affected people.
h) Appropriate participation of affected people must be promoted in planning, implementation,

and monitoring of resettlement action plans.
i) Appropriate and accessible grievance mechanisms must be established for the affected people
and their communities.
The above principles are complemented by the World Bank OP 4.12, since it is stated in the JICA
Guideline that “JICA confirms that projects do not deviate significantly from the World Bank’s
Safeguard Policies.” Additional key principles based on the World Bank OP 4.12 are as follows:
a) Affected people are to be identified and recorded as early as possible in order to establish their
eligibility through an initial baseline survey (including population census that serves as an
eligibility cut-off date, asset inventory, and socioeconomic survey), preferably at the project
identification stage, to prevent a subsequent influx of encroachers of others who wish to take
advantage of such benefits.
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b) Eligibility of Benefits include the PAPs who have formal legal rights to land (including
customary and traditional land rights recognised under law), the PAPs who don't have formal
legal rights to land at the time of census but have a claim to such land or assets and the PAPs
who have no recognizable legal right to the land they are occupying.
c) Preference should be given to land-based resettlement strategies for displaced persons whose
livelihoods are land-based.
d) Provide support for the transition period (between displacement and livelihood restoration).
e) Particular attention must be paid to the needs of the vulnerable groups among those displaced,
especially those below the poverty line, landless, elderly, women and children, ethnic
minorities etc.
f) For projects that entail land acquisition or involuntary resettlement of fewer than 200 people,
an abbreviated resettlement plan is to be prepared.
In addition to the above core principles on the JICA policy, it also laid emphasis on a detailed
resettlement policy inclusive of all the above points; project specific resettlement plan;
institutional framework for implementation; monitoring and evaluation mechanism; time schedule
for implementation; and, detailed Financial Plan etc.
(3) Gap Analysis between Sri Lankan Laws and JICA Policies (WB.OP.4.12)
There are differences between JICA policies and the national law in Sri Lanka in relation to the
approach to land acquisition and payment of compensation. However, NIRP which was designed
to bridge the Gap with international best practice and is more or less aligned with JICA policies, is
widely used in practice for projects involving resettlement issues. Therefore, it can be said that
there is no significant gap between JICA policies and land acquisition and resettlement practice in
Sri Lanka. A gap analysis is shown in Table 12.11.3.
Table 12.11.3 Gap Analysis of Sri Lankan Laws and JICA Policies (WB.OP.4.12)
JICA guideline/ Measures to

No. GOSL Laws/Policies Gap Bridge the
WB OP 4.12 GAP
1 Involuntary resettlement and loss of No requirement under the No difference To follow the
means of livelihood are to be LAA. between JICA NIRP and
avoided when feasible by exploring NIRP requires avoiding Policy and JICA Policy
all viable alternatives. (JICA GL) involuntary resettlement by NIRP on this
reviewing alternatives. principle
2 When population displacement is NIRP requires assisting No difference To follow the

unavoidable, effective measures to affected persons to re-establish between JICA NIRP and
minimise impacts and to themselves and improve their Policy and JICA Policy
compensate for losses should be quality of life. NIRP on this
taken. (JICA GL) principle
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WB OP 4.12 GAP
3 People who must be resettled NIRP requires that affected No difference To follow the
involuntarily and people whose persons should be assisted to between JICA NIRP and
means of livelihood will be hindered re-establish themselves and Policy and JICA Policy
or lost must be sufficiently improve their quality of life. NIRP on this
compensated and supported, so that principle
they can improve or at least restore
their standard of living, income
opportunities and production levels
to pre-project levels. (JICA GL)
4 Compensation must be based on the NIRP requires that No difference To follow the
full replacement cost as much as compensation for loss of land, between JICA NIRP and
possible. (JICA GL) structures, other assets and Policy and JICA Policy
income should be based on full NIRP on this
replacement cost and should be principle
paid promptly.
5 Compensation and other kinds of NIRP requires prompt payment NIRP does not To make an
assistance must be provided prior to of compensation. mention that agreement to
displacement. (JICA GL) compensation follow the
and entitlements JICA policy.
are to be paid or
provided prior
to physical or
economic
displacement.
6 For projects that entail large-scale NIRP requires a comprehensive JICA policy To follow
involuntary resettlement, RAP for projects exceeding requires NIRP.
resettlement action plans must be displacement of more than 20 preparation of a Regarding
prepared and made available to the families. RAP when the the number of
public. (JICA GL) project causes displaces
displacement of families. To
more than 200 follow JICA
people, whereas GL regarding
NIRP requires RAP to be
this in cases made
exceeding available to
displacement of the public.
more than 20
families.
7 In preparing a resettlement action NIRP requires that affected No difference To follow the
plan, consultations must be held persons should be fully between JICA NIRP and
with the affected people and their involved in the selection of Policy and JICA Policy
communities based on sufficient relocation sites, livelihood NIRP on this
information made available to them compensation and development principle
in advance. (JICA GL) options at the earliest
opportunity.
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Final Report

WB OP 4.12 GAP
8 When consultations are held, LAA specifies that all LAA/NIRP does To make
explanations must be given in a notifications shall be prepared not clearly proper
form, manner, and language that are in all three languages (English, mention this arrangements
understandable to the affected Sinhara and Tamil) principle. (interviewers
people. (JICA GL) or translators)
for Sinhara
Note that since
and Tamil
Tamil are a
people.
minority, the
Tamil language
in government
papers is often
mistranslated
and incorrect.
9 Appropriate participation of affected NIRP requires that resettlement No difference To follow the
people must be promoted in should be planned and between JICA NIRP and
planning, implementation, and implemented with full Policy and JICA Policy
monitoring of resettlement action participation of the provincial NIRP on this
plans. (JICA GL) and local authorities. NIRP also principle
requires that affected persons
and other stakeholders should
be consulted in monitoring and
evaluation.
10 Appropriate and accessible The LAA provides a limited No difference To follow the
grievance mechanisms must be grievance redress mechanism. between JICA NIRP and
established for the affected people One of the key objective s of Policy and JICA Policy
and their communities. (JICA GL) NIRP is that all affected NIRP on this
persons are made aware of principle
processes available for the
redress of grievances and that
the redress process is easily
accessible and immediately
responsive.
11 Affected people are to be identified NIRP states the importance for No difference To follow the
and recorded as early as possible in identification of APs at an between JICA NIRP and
order to establish their eligibility initial stage and describes risks Policy and JICA Policy
through an initial baseline survey related to the set-up of the cut NIRP on this
(including population census that -off date. principle
serves as an eligibility cut-off date,
asset inventory, and socioeconomic
survey), preferably at the project
identification stage, to prevent a
subsequent influx of encroachers or
others who wish to take advantage
of such benefits. (WB OP4.12
Para.6)
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Final Report

WB OP 4.12 GAP
12 Eligibility for benefits includes the NIRP requests that affected No difference To follow the
PAPs who have formal legal rights people who do not have title between JICA NIRP and
to land (including customary and deeds to land should receive Policy and JICA Policy
traditional land rights recognised fair and just treatment. NIRP on this
under law), the PAPs who don't principle
have formal legal rights to land at
the time of census but have a claim
to such land or assets and the PAPs
who have no recognizable legal
right to the land they are occupying.
(WB OP4.12 Para.15)
13 Preference should be given to Replacement land should be an No difference To follow the

land-based resettlement strategies option for compensation in the between JICA NIRP and
for displaced persons whose case of loss of land; in the Policy and JICA Policy
livelihoods are land-based. (WB absence of replacement land, NIRP on this
OP4.12 Para.11) cash compensation should be principle
an option for all affected
persons.
14 Provide support for the transition NIRP requires that No difference To follow the
period (between displacement and compensation for loss of land, between JICA NIRP and
livelihood restoration). (WB OP4.12 structures, other assets and Policy and JICA Policy
Para.6) income should be based on full NIRP on this
replacement cost and should be principle
paid promptly. This should
include transaction costs.
15 Particular attention must be paid to NIRP requires that vulnerable No difference To follow the
the needs of the vulnerable groups groups should be identified and between JICA NIRP and
among those displaced, especially given appropriate assistance to Policy and JICA Policy
those below the poverty line, improve their living standards. NIRP on this
landless, elderly, women and principle
children, ethnic minorities etc. (WB
OP4.12 Para.8)
16 For projects that entail land NIRP requires that RAP is NIRP`s To follow
acquisition or involuntary prepared for projects where 20 requirement is NIRP
resettlement of fewer than 200 or more families are affected more stringent
people, an abbreviated resettlement and if fewer than 20 families than WB.
plan is to be prepared. (WB OP4.12 are affected, a RAP with a
Para.25) lesser level of detail needs to
be prepared.
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Final Report
(4) Involuntary Resettlement Safeguard Principles for the Project
Based on a review of the laws and regulations on land acquisition in Sri Lanka and the NIRP and
JICA Guidelines, the following resettlement principles shall be adopted for this project. Where
any gaps, besides the analysis shown above, are found between the Sri Lankan legal framework
for resettlement and JICA’s Policy on Involuntary Resettlement, practicable mutually agreeable
approaches will be designed consistent with the Government practices and JICA’s Policy.
1) Land acquisition and involuntary resettlement will be avoided where feasible, or

minimised, by identifying possible alternative project designs that have the least adverse
impacts on the communities in the project area.
2) Screen the project as early as possible to identify involuntary resettlement impacts and
risks. Set up the scope of resettlement planning through a social economic survey and
census survey of displaced persons.
3) Where displacement of households is unavoidable, all PAPs (including communities)
losing assets, livelihoods or resources will be fully compensated and assisted so that they
can improve, or at least restore, their former economic and social conditions.
4) Compensation and rehabilitation support will be provided to all PAPs, that is, any person
or household or business which on account of project implementation would have his, her
or their:
- Standard of living adversely affected;
- Right, title or interest in any house, interest in, or right to use, any land including
premises, agricultural and grazing land, commercial properties, tenancy, or right in
annual or perennial crops and trees or any other fixed or moveable assets, acquired or
possessed, temporarily or permanently;
- Income earning opportunities, business, occupation, work or place of residence or
habitat adversely affected temporarily or permanently; or
- Social and cultural activities and relationships affected or any other losses that may be
identified during the process of resettlement planning.
5) All affected people will be eligible for compensation and rehabilitation assistance,
irrespective of tenure status, social or economic standing or any such factors that may
discriminate against achievement of the objectives outlined above. Lack of legal rights
to the assets lost or adversely affected tenure status or social or economic status will not
bar the PAPs from entitlement to such compensation and rehabilitation measures or
resettlement objectives. All PAPs residing, working, doing business and/or cultivating
land within the project impacted areas as of the date of the latest census and inventory of
lost assets (IOL), are entitled to compensation for their lost assets (land and/or non-land
assets), at replacement cost, if available and restoration of incomes and businesses, and
will be provided with rehabilitation measures sufficient to assist them to improve or at
least maintain their pre-project living standards, income-earning capacity and production
levels.
6) PAPs that lose only part of their physical assets will not be left with a portion that will be
inadequate to sustain their current standard of living. Reasonable options for
compensation shall be provided.
7) People temporarily affected are to be considered PAPs and re settlement plans address the
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Final Report
issue of temporary acquisition.

8) Where a host community is affected by the development of a re-settlement site in that
community, the host community shall be involved in any resettlement planning and
decision-making. All attempts shall be made to minimise the adverse impacts of
resettlement upon host communities.
9) The resettlement plans will be designed in accordance with Sri Lanka’s National
Involuntary Resettlement Policy and JICA’s Policy on Involuntary Resettlement.
10) The Resettlement Plan will be translated into Sinhara and Tamil languages and disclosed
for the reference of PAPs as well as other interested groups.
11) Payment for land and/or non-land assets will be based on the principle of replacement
cost.
12) Compensation for PAPs dependent on agricultural activities will be land-based wherever
possible. Land-based strategies may include provision of replacement land, ensuring
greater security of tenure, and upgrading livelihoods of people without legal land titles.
If replacement land is not available, other strategies may be built around opportunities for
re-training, skill development, wage employment, or self-employment, including access to
credit. Solely cash compensation will be avoided as an option if possible, as this may not
address losses that are not easily quantified, such as access to services and traditional
rights, and may eventually lead to those populations being worse off than without the
project
13) Replacement lands, if that is the preferred option of PAPs, should be within the immediate
vicinity of the affected lands wherever possible and be of comparable productive capacity
and potential. As a second option, sites should be identified that minimise the social
disruption of those affected; such lands should also have access to services and facilities
similar to those available in the lands affected.
14) Resettlement assistance will be provided not only for immediate loss, but also for a
transition period needed to restore livelihood and standards of living of PAPs. Such
support could take the form of short-term jobs, subsistence support, salary maintenance, or
similar arrangements.
15) The resettlement plan must consider the needs of those most vulnerable to the adverse
impacts of resettlement (including the poor, those without legal title to land, ethnic
minorities, women, children, elderly and disabled) and ensure they are considered in
resettlement planning and mitigation measures identified. Assistance should be provided
to help them improve their socio-economic status.
16) PAPs will be involved in the process of developing and implementing resettlement plans.
17) PAPs and their communities will be consulted about the project, the rights and options
available to them, and proposed mitigation measures for adverse effects, and to the extent
possible, be involved in the decisions that are made concerning their resettlement.
18) Adequate budgetary support will be fully committed and made available to cover the costs
of land acquisition (including compensation and income restoration measures) within the
agreed implementation period. The funds for all resettlement activities will come from
the Government.
19) Displacement should not occur before provision of compensation and of other assistance
required for relocation. Sufficient civic infrastructure must be provided in the
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Final Report
resettlement site prior to relocation. Acquisition of assets, payment of compensation,

and the resettlement and start of the livelihood rehabilitation activities of PAPs, will be
completed prior to any construction activities, except when a court of law orders so in
expropriation cases. (Livelihood restoration measures must also be in place but not
necessarily completed prior to construction activities, as these may be ongoing activities.)
20) Organization and administrative arrangements for the effective preparation and
implementation of the resettlement plan will be identified and in place prior to the
commencement of the process; this will include the provision of adequate human
resources for supervision, consultation, and monitoring of land acquisition and
rehabilitation activities.
21) Appropriate reporting (including auditing and redress functions), monitoring and
evaluation mechanisms, will be identified and set in place as part of the resettlement
management system. An external monitoring group will be hired by the project and will
evaluate the resettlement process and final outcome. Such groups may include qualified
NGOs, research institutions or universities.
12.11.3 Scope of Land Acquisition and Resettlement Impact
(1) Summary of Socioeconomic Survey
A socioeconomic survey and census survey have been undertaken since 16th June 2014, for PAPs
to determine the magnitude of displacement and prospective losses, identify vulnerable groups for
targeting and ascertain cost of resettlement. Necessary information for the purpose of this survey
was mainly collected by interviews with PAPs using questionnaires.
According to the survey results, total affected population by the Project is more than 474 persons.
It includes 10 residential household heads with their 35 family members, 57 business owners with
their 170 employees, 39 commercial property owners, and 37 paddy land owners and 7 "Ande"
farmers (tenant cultivators) working in paddy lands. There are also 36 "other" land owners who
own lands categorised as neither residential, commercial nor agricultural land. There are 74
affected structures and total affected land is 180,933.5 m2. Impacts on lands, structures and
people by the Project are summarised in the Table 12.11.4.
340
Table 12.11.4 Summary of Impacts on Lands, Structures and People by the Project*1
Affected Affected Land

Affected Persons
Structure (No.) (m2)
Residential Commercial Agricultural Other Land*2 HHs/
DS Business
Division Owners
Family Prope Busin Paddy Ande (BOs) to Private Gov’t Private Gov’t
Head Empl Family Family Land Family
membe rty ess land farmer be re-
of HH oyee member member owner member
r owner owner owner *4 located*
3
0 HH
Colombo 0 0 5 5 22 0 0 0 0 1 0 5 10 23.9 609.4
0 BO
Thibirigas 2 HHs
5 14 7 17 37 0 0 0 0 6 2 12 8 450.8 253.1
yaya 2BOs
Sri J’pura 1 HH 1,020.

1 2 0 0 0 0 0 0 0 2 0 1 0 366.2
Kotte 0 BO 2
0 HH 17,58
Kaduwela 4 19 27 35 111 37 47 7 21 27 13 31 7 160,627.0
10 BOs 2.9
341
10 35 39 57 170 37 47 7 21 36 15 3 HHs 19,46
SubTotal 49 25 161,467.9
45*5 266 84 28+ 51+ 12BOs 5.6
3 HHs
Total 474+ *6 74 180,933.5
12BOs
*1 Basically, lands and structures within the secured space are counted, however, it is assumed that the entire land parcel and structure will be
acquired if a structure is affected more than 50% or the remaining parts are no longer economically viable. Numbers of Affected Persons can be
double counted. e.g. a person is a commercial property owner as well as business owner.
*2 Other land includes bare land used as car parks or other highlands that are not systematically cultivated. Number of family members was provided
by only 5 land owners.
*3 Based on the assumption: Structure is affected more than 50%, or the remaining parts are no longer economically viable.
*4 Number of rent farmers who answered the questionnaire. The total number of the rent farmers is unknown.
*5 This includes 2 (two) households without title with their 12 family members.
*6 ‘+’ means there might be more than 474 persons.
Final Report
Final Report
(2) Census
Information regarding Residential Households
The total number of affected residential households is identified as 10. Family members under
these households are 35. Out of the 10 households 9 families are Sinhalese and their religion is
Buddhism, other families are Muslim and the religion is Islam.
Among these, five are male and five are female. Two household heads are identified as above 70
years of age, who fall into the category of vulnerable people. They will need assistance during
implementation of the Project. The following table presents the income status of household
heads. Majority (50%) of households earn income of LKR 41,000 to 100,000 per month.
Income is higher probably due to the urban setting of the Project. As identified, there are only
two persons who are earning less than LKR 20,000.
Table 12.11.5 Distribution of Household Heads by Monthly Income

Levels of Income Thimbirigasyaya Sri J’pura Kotte Kaduwela Total
LKR >20,000 1 1 0 2
LKR 20,000-30,000 0 0 0 0
LKR31,000-40,000 0 0 0 0
LKR41,000-50,000 1 0 0 1
LKR51,000-60,000 0 0 1 1
LKR61,000-70,000 0 0 1 1
LKR71,000-80,000 1 0 0 1
LKR81,000-100,000 1 0 0 1
LKR<10 0,000 1 0 1 2
Not mentioned 0 0 1 1
Total 5 1 4 10
Information regarding Business Owners and Employees
There are 57 business places which are identified as affected due to the Monorail Project. Out of
these, 7 are identified as companies. There are 170 members working in these 57 business
places. Age and gender distribution of business owners and employees are shown in the tables
below. A total of 38% of business owners are in the category of 41-50 years of age, while 46.5%
of employees are identified as within the age bracket of 21 to 30 years of age.
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Final Report
Table 12.11.6 Distribution of Business Owners by Age and Gender

Thimbirig Sri J’pura
Colombo Kaduwela Total
Age asyaya Kotte
M F M F M F M F M F
21-30 0 0 1 0 0 0 0 0 1 0
31-40 0 0 3 2 0 0 5 3 8 5
41-50 0 0 6 1 0 0 11 1 17 2
51-60 0 0 2 0 0 0 6 1 8 1
61-70 0 0 0 0 0 0 3 2 3 2
71-80 0 0 0 1 0 0 0 1 0 2
81< 0 0 0 0 0 0 1 0 1 0
Sub-total 0 0 12 4 0 0 26 8 38 12
Total 0 16 0 34 50
Table 12.11.7 Distribution of Business Employees by Age

Colombo Kaduwela Total
Age asyaya - Kotte
M F M F M F M F M F
11-20 0 0 4 3 0 0 3 3 7 6
21-30 3 13 12 3 0 0 33 15 48 31
31-40
4 0 5 2 0 0 18 1 27 3
41-50 1 0 4 2 0 0 22 3 27 5
51-60 1 0 1 1 0 0 6 2 8 3
61-70 0 0 0 0 0 0 5 0 5 0
71-80 0 0 0 0 0 0 0 0 0 0
81< 0 0 0 0 0 0 0 0 0 0
Not
0 0 0 0 0 0 0 0 0 0
Mentioned
Sub-total 9 13 26 11 0 0 87 24 122 48
Total 22 37 0 111 170
The monthly income of the business owners is presented in the table below. It is observed that
33 business owners have income above LKR 100,001. However, 17 business owners have not
mentioned their income including 7 company owners.
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Final Report
Table 12.11.8 Distribution of Business Owners by Monthly Income
Levels of Sri J’pura -

Colombo Thimbirigasyaya Kaduwela Total
Income Kotte
<=1000 0 0 0 0 0
1001-2500 0 0 0 0 0
2501-5000 0 0 0 0 0
5001-7500 0 0 0 0 0
7501-10000 0 0 0 0 0
10001-20000 0 0 0 1 1
20001-40000 0 0 0 0 0
40001-60000 0 0 0 3 3
60001-100000 0 0 0 3 3
100001<= 0 13 0 20 33
Not Mentioned 5 4 0 8 17
Total 5 17 0 35 57
Information regarding Paddy Land Owners and “Ande” (tenant) Farmers
Out of 37 Paddy land owners on a list provided by the Agrarian Services Department, the Survey
team was able to contact only 16 paddy land owners and 7 “Ande” farmers. All the contacted
persons are Sinhalese and Buddhists. Tables below show their age and gender distribution. The
tables reveal many of the household heads are between age 51 to 70, and percentages of male
household heads are 88% and 71%, respectively.
Table 12.11.9 Distribution of Paddy Land Owners by Age and Gender

Paddy Land Paddy Land
Total
Age Heads Owner Family
Male Female Male Female Male Male
<20 0 0 7 7 7 7
21-30 0 0 5 8 5 8
31-40 0 0 4 3 4 3
41-50 4 0 2 4 6 4
51-70 9 2 1 4 10 6
>70 1 0 0 2 1 2
Sub-Total 14 2 19 28 33 30
Total 16 47 63
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Final Report
Table 12.11.10 Distribution of “Ande” (tenant) Farmers by Age and Gender

‘Ande’ Farmer’s
‘Ande’ Farmer Total
Age Family
Male Female Male Female Male Male
<20 0 0 1 2 1 2
21-30 0 0 2 1 2 1
31-40 0 0 7 0 7 0
41-50 1 0 2 2 3 2
51-70 4 2 2 1 6 3
>70 0 0 1 0 1 0
Sub-Total 5 2 15 6 20 8
Total 7 21 28
The table below summarises the income levels of paddy land owners and tenant farmers. Only
10 interviewees have provided the income information and all of them have an income above
LKR 10,000.
Table 12.11.11 Distribution of Paddy Land Owners and “Ande” (tenant) Farmers by
Monthly Income
Kaduwela
Income Levels (LKR)
Owners Tenants
<=1000 0 0
1001-2500 0 0
2501-5000 0 0
5001-7500 0 0
7501-10000 0 0
10001-20000 2 0
20001-40000 5 1
40001-60000 0 0
60001-100000 1 0
100001<= 1 0
Not Mentioned 7 6
Total 16 7
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Final Report
Number of Vulnerable
The vulnerable household heads include: people over 60 years of age, households headed by
women, physically disabled persons, chronically ill persons and widows/widowers, and the poor
who are under the poverty line of Sri Lanka (monthly income < LKR 3,811, National Poverty Line
as of March 2014, Department of Census and Statistics, Sri Lanka). The table below presents the
distribution of such vulnerable households based on the vulnerable characteristics.
Table 12.11.12 Number of Vulnerable Households
Category of Residential Commercial Agricultural Total

Vulnerable HHs M F M F M F M F
HH Head > 60 years 1 4 4 4 5 5* 10 8
Women (Heads) 0 4* 0 4* 0 5 0 5
Disabled 0 1* 0 0 0 0 0 0
Chronically ill 0 0 0 0 0 0 0 0
Poor 0 0 0 0 0 0 0 0
Sub-total 1 4 4 4 5 5 10 13
Total 5 8 10 23
*Duplicated. Not counted in the gross.
(3) Inventory of Losses
Total lands and structures affected by the Project are summarised in the table below. The largest
extent of land to be affected is located in Kaduwela DS, where 43,477.5 m2 of agricultural land are
planned to be acquired for construction of the depot. Total affected structures are 74 (49 private
and 25 government).
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Final Report
Table 12.11.13 Total Affected Structures and Land (by Land Use)
(Unit: Structure = No.; Land = m2)

Land Use Colombo Kaduwela Total
asyaya Kotte
Structure 0 5 1 4 10
Residential (A)
Land 0 29.5 4.4 45.4 79.3
Commercial Structure 5 7 0 27 39
(B) Land 23.1 324.4 180.9 8,840.9 9,369.3
Structure 0 0 0 0 0
Agriculture (C)
Land 0 0 0 143,477.5 143,477.5
Structure 0 0 0 0 0
Other Land (D)
Land 0.8 96.9 180.9 8,263.2 8,541.8
Private Structure 5 12 1 31 49
(E=A+B+C+D) Land 23.9 450.8 366.2 160,627.0 161,467.9
Government Structure 10 7 1 7 25
(F) Land 609.4 253.1 1,020.2 17,582.9 19,465.6
Structure 15 19 2 38 74
Total (E+F)
Land 633.3 703.9 1,386.4 178,210 180,934
Note: Based on the assumption: Entire land and structure is acquired if a structure is affected more than 50% or the
remaining parts are no longer economically viable.
Land (private)
Out of the total affected private land, the affected high land (residential, commercial and other
land) area is 17,990.4 m2, which is minimal at 11% of the total affected private land.
Table 12.11.14 Affected Private Land (Highland: Residential, Commercial and Other Land)
(Unit: m2)
DS Division Residential Commercial Other Land Total

Colombo 0 23.1 0.8 23.9
Thimbirigasyaya 29.5 324.4 96.9 450.8
Sri J'pura Kotte 4.4 180.9 180.9 366.2
Kaduwela 45.4 8,840.9 8,263.2 17,149.5
Total 79.3 9,369.3 8,541.8 17,990.4
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Final Report
The majority (89%) of lands affected due to the Monorail Project are paddy lands. These lands
are mainly affected for the depot area to be constructed in Kaduwella.
Table 12.11.15 Affected Private Land (Paddy Land)*1

No. of Affected Farmers
Affected
DS Division GN Division Tenant
Paddy Land Owners Area (m2)
Farmers
Kaduwela Malabe West 7 33 130,150.6*2
477B,Mutthettugoda 0 4 2,635.9
477A,Thalangama North Neglected Paddy lands
0 10,691.0
(no information)
Total 7 37 143,477.5
*1 This information may be changed. Information was obtained from the focus group meeting held on 29th July 2014
at Malabe, and Agrarian Services Officers who attached the 3 GN Divisions. Even Agrarian services officers do not
have accurate information of paddy land owners/farmers. ”Ande” tenant farmers also do not know the current owners
of their paddy fields.
*2 Including areas for the access route to the depot site. It should be noted that parts of the areas were acquired by
UDA, according to Gazette 1364/1 on 2004.10.25, but still are cultivated by farmers.
Structures (private)
The number of affected structures within the impact corridor in each DS Division is presented in
the table below. This includes both residential and commercial structures (Government buildings
are excluded).
Table 12.11.16 Affected Structure (Private)

(Unit: No.)
DS Division Residential Commercial Agriculture Total

Colombo 0 5 0 5
Thimbirigasyaya 5 7 0 12
Sri Jayawardanapura
1 0 0 1
-Kotte
Kaduwela 4 27 0 31
Total 10 39 0 49
Note: Based on the assumption: Entire structure will be acquired if a structure is affected more than 50% or the
remaining parts are no longer viable.
All affected residential and commercial structures could be broadly categorised into the following
four types based on the materials used for construction. This categorization depicts the quality,
value of structures and areas are as shown in Table 12.11.17 and Table 12.11.18 below.
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Final Report
Table 12.11.17 Structure Type

Structure Type Material used Affected Area
Type 1 Asbestos, tiled or concrete roof, Brick wall Residential: 0 m2
with plaster, Tile or terrazzo floor, wooden Commercial: 321.4 m2
or glass doors and windows, Ceilings
Type 2 Asbestos or tiled roof, Brick or wall with Residential: 75.8 m2
plaster, Cement floor, wooden doors and Commercial: 247.0 m2
windows
Type 3 Tin sheet roof, Brick or cement block wall Residential: 0 m2
with plaster, Cement floor, Doors and Commercial: 247.3 m2
windows wood or plastic
Type 4 Tin sheet roof, Brick or cement block Residential: 3.5 m2
wall without plaster, Cement floor, Doors Commercial: 12.0 m2
and windows wood or plastic
Table 12.11.18 Affected Area by Structure Type

(Unit: m2)
Structure Colombo Thimbirigasyaya Sri J’pura Kotte Kaduwela Total

Type Res Com Res Com Res Com Res Com Res Com
Type 1 0 22.3 0 54.6 0 0 0 244.5 0 321.4
Type 2 0 0 26.0 26.3 4.4 0 45.4 220.7 75.8 247.0
Type 3 0 0 0 134.6 0 0 0 112.7 0 247.3
Type 4 0 0 3.5 12.0 0 0 0 0 3.5 12.0
Total 0 22.3 29.5 227.5 4.4 0 45.4 577.9 79.3 827.7
12.11.4 Eligibility, Compensation and Resettlement Package
(1) Cut-off date for Eligibility
The cut-off-date for eligibility refers to the date prior to which the occupation or use of the project
area makes residents/users of the same eligible to be categorised as PAP and be eligible for Project
entitlements. The establishment of the eligibility cut-off date is intended to prevent the influx of
ineligible non-residents who might take advantage of Project entitlements. Based on the request,
all four Divisional secretaries were asked to issue an official announcement in local language on
the cut-off date for the Project. The official announcement was posted at DS offices. It is
agreed that cut-off date for PAPs shall be the date of the beginning the Socio Economic Survey,
which is 16th June 2014.
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Final Report
(2) Entitlements
Based on the involuntary resettlement safeguard principles for the Project presented in the section
above, the project entitlements were developed and presented in the Entitlement Matrix
corresponding to the potential impacts that were identified during the census, Socio-Economic
Survey (SES) and Inventory of Loss (IOL) survey. In order to provide benefits to affected
people, a Project-specific compensation package was prepared by MOT and it is presented below.
Table 12.11.19 Project Entitlement Matrix

Type of Entitled
Entitlements Responsible Agency Remarks
Loss Persons
A. Agricultural Land
A1 Loss of Land Owner All (cash) payments for affected land at 1. Chief Valuer (CV) assess all
agricultural with title deed replacement costs. Value based on valuations as per LAA and
land or registration development potential could be 2008 regulations
certificate considered for paddy lands acquired 2. Land Acquisition Officer of
where permission to fill such lands have the Divisional Secretary (DS)
been granted by the Agrarian Services manages the acquisition
Commissioner General. process
3. MOT provides funds
If the Affected Person (AP) loses 10% or 4. DS makes compensation
more of their productive, income payments
generating assets and / or the remaining
portion is economically not viable for
continued use as determined by the
Divisional Secretary (DS)/Ministry of
Transport (MOT), these options will be
available:
1. If opted by AP, the remaining land
will be acquired or injury will be
paid at replacement cost if
economically not viable.
Reasonable time will be given to
harvest perennial crops. If not
payment will be made at market
value.
2. Preference will be given to APs for
land for land option (similar
location and productive quality,
subject to availability)
Compensation for crops: F1
Loss of Income: E1
Livelihood Restoration: I1
A2 Loss of Tenant, User No payment for land CV assess all valuations as per
access to with lease, Compensation for crops: F1 LAA and 2008 regulations
agricultural Sharecropper Land Acquisition Officer of the DS
land Loss of Income: E1
manages the acquisition process
MOT provides funds
DS makes compensation payments
A3 Loss of Non-titled user No payment for land CV assess all valuations as per
access to or squatter on Compensation for crops: F1 LAA and 2008 regulations
agricultural private land or Land Acquisition Officer of the DS
land state land Loss of Income: E1
manages the acquisition process
MOT provides funds
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Type of Entitled
Loss Persons
B. Residential Land and Structures
B1 Loss of Titled owner All (cash) payments for affected land at CV assess all valuations as per
residential with deeds replacement cost in accordance with LAA and 2008 regulations
land and LAA Section 17 Land Acquisition Officer of the DS
structures All (cash) payments for affected manages the acquisition process
structures at replacement cost MOT provides funds
Payment of Transition Settlement DS makes compensation payments
Allowances: G1, G2, G3 and G4
Payment of Additional Allowances/
Incentives: H1 and H2
B2 Loss of Non Titled 1. No payment for land CV assess all valuations as per
residential owner 2. All (cash) payments for affected LAA and 2008 regulations
land and structures at replacement cost Land Acquisition Officer of the DS
structures 3. Payment of Transition Settlement manages the acquisition process
Allowances: G1, G2, G3 and G4 MOT provides funds
4. Payment of Additional Allowances/ DS makes compensation payments
B3 Loss of Person renting 1. Expenses for finding alternative CV assess all valuations as per
rental in a residential accommodation for maximum of 3 LAA and 2008 regulations
accommoda structure months Land Acquisition Officer of the DS
tion 2. Payment of Transition Settlement manages the acquisition process
Allowances: G3 MOT provides funds
C. Commercial Land and Structures
C1 Loss of Titled owner 1. All (cash) payments for affected CV assess all valuations as per
commercial with deeds land at replacement cost in LAA and 2008 regulations
land and accordance with LAA Section 17 Land Acquisition Officer of the DS
structures 2. All (cash) payments for affected manages the acquisition process
structures at replacement cost MOT provides funds
3. Payment of Transition Settlement DS makes compensation payments
Allowances: G1, G2, G3 and G4.
4. Payment of Additional Allowances/
5. Payment for Loss of Income: E2
and E3
6. Payment for Livelihood
Restoration: I1
C2 Loss of Non Titled 1. No payment for land 1. CV assess all valuations as
commercial owner 2. All (cash) payments for affected per LAA and 2008 regulations
land and structures 2. Land Acquisition Officer of
structures 3. Payment of Transition Settlement the DS manages the
Allowances: G1, G2, G3 and G4. acquisition process
4. Payment of Additional Allowances/ 3. MOT provides funds
Incentives: H1 and H2 4. DS makes compensation
5. Payment for Loss of Income: E2 payments
and E3
6. Payment for Livelihood
Restoration: I1
C3 Loss of Person renting Expenses for finding alternative CV assess all valuations as per
commercial in a commercial accommodation for maximum of 3 LAA and 2008 regulations
land and structure months Land Acquisition Officer of the DS
structures Payment of Transition Settlement manages the acquisition process
Allowances: G3 MOT provides funds
Payment for Loss of Income: E2 DS makes compensation payments
Payment for Livelihood Restoration: I1
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Final Report
Type of Entitled
Loss Persons
D. Other Private Properties or Secondary Structures
D1 Partial or Owners of the All payments for affected structures at 1. CV assess all valuations as
complete structures replacement cost per LAA and 2008 regulations
loss of other (regardless of 2. Land Acquisition Officer of
property or the ownership the DS manages the
secondary of land) acquisition process
structures 3. MOT provides funds
(i.e. sheds,
outdoor 4. DS makes compensation
latrines, payments
warehouses,
storage
facilities,
cold storage
facilities,
animal pens,
etc.)
D2 Loss of Owners of Cash payment to cover cost of 1. CV assess all valuations as
statues, structure exhumation and relocation (including per LAA and 2008 regulations
tombs or any religious ceremonies if required) 2. Land Acquisition Officer of
graves the DS manages the
acquisition process
4. DS makes compensation
payments
E. Loss of Income
E1 Loss of Owner, tenant, 1. Cash assistance is included in the CV assess all valuations as per
agricultural sharecropper compensation for agricultural land. LAA and 2008 regulations
land 2. Priority employment in the MOT provides funds
construction period, if the PAPs DS makes payments
wish.
E2 Loss of Affected An allowance of LKR15,000 or 3 MOT will decide the allowances/
business business months basic income/salary whichever is incentives
(Temporary) owners/tenants higher
(in case the with registration
commercial /without
structure is registration
affected (regardless of
partially or ownership of
temporary, land)
and being
rebuilt on
the site)
E3 Loss of Affected Cash payment not exceeding the average 1. CV assess all valuations as
business business owners annual net profit of three years per LAA and 2008 regulations
(permanent) with registration Advertising cost 2. Land Acquisition Officer of
the DS manages the
acquisition process
payments
Affected Cash assistance equal to three months 1. CV assess all valuations as
business owners basic income per LAA and 2008 regulations
without 2. Land Acquisition Officer of
registration the DS manages the
(regardless of acquisition process
ownership of 3. MOT provides funds
land)
payments
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Final Report
Type of Entitled
Loss Persons
E4 Loss of People losing Assistance to get another place to work MOT will decide the assistance
Income of wage
Employees employment
or Hired
Labourers
F. Trees with Timber Value and Standing Crops
F1 Loss of Person who An advance notice to harvest the crop CV assess all valuations as per A “Landless
crops, fruit cultivates crops shall be displayed at Grama Niladhari LAA and 2008 regulations tenant farmer” is
trees and and/or owns (GN) office and reported to AP by GN in Land Acquisition Officer of the DS a farmer who
trees with trees (regardless advance manages the acquisition process rents land for
timber value of the Where harvesting is not possible the cultivation.
ownership of MOT provides funds
market value for lost cash crops will be A
the land) paid DS makes compensation payments “sharecropper”
All payments for affected trees at is a farmer who
replacement cost cultivates the
land and pays
For landless tenant farmers, payment for the land owner
crops will be paid to the tenant in kind (with an
For sharecroppers, payment for crops agreed portion
shall be shared between owner and of crops that he
sharecropper according to the raises).
sharecropping agreement
G. Transition Settlement Allowances
G1 Loss of Households or 1. Expenses for electricity facilities MOT will decide the expenses This is included
electricity, business owners 2. Expenses for water facilities in the amount
water and who will be for structure
telecommun relocated 3. Expenses for telecommunication compensation by
ication (regardless of facilities the Department
connections the ownership of Valuation.
of land)
G2 Cost of For households An allowance will be paid for a CV assess all valuations as per
re-fixing of and owner/s of household to re-fix fixtures and fitting at LAA and 2008 regulations
Fixtures and businesses and the new locations. Land Acquisition Officer of the DS
fittings institutions that manages the acquisition process
will be
permanently MOT provides funds
displaced DS makes compensation payments
G3 The cost Households or Cash assistance (relocation allowance) CV assess all valuations as per
incurred in business owners would be paid to households for LAA and 2008 regulations
change of who will be transportation to new locations based on Land Acquisition Officer of the DS
residence - relocated. floor area of the house in occupation manages the acquisition process
Shifting before relocation.
MOT provides funds
G4 Expenses Households or A rental fee will be paid for up to 3 MOT will decide the amount.
for finding business owners months based on the floor area of the
alternative who will be residential/ commercial building before
accommoda relocated. relocation for those who need any
tion transition assistance.
H. Additional Allowances/Incentives
H1 Expenses All APs who An allowance not exceeding LKR 10,000 CV assess all valuations as per
incurred appear for LAA would be paid to each AP who appears LAA and 2008 regulations
during Section 9 for LAA Section 9 inquiry Land Acquisition Officer of the DS
acquisition inquiry manages the acquisition process
process
MOT provides funds
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Final Report
Type of Entitled
Loss Persons
H2 Payment for Households or 25% of the statutory payment for MOT will decide the payment
handing business owners building in accordance with LAA
over who will be Section 17
possession relocated
of properties
before the
deadline
I. Livelihood Restoration
I1 Livelihood AP having 1. If requested by household, MOT MOT will decide the assistances Consultant shall
Restoration permanent will assist in obtaining professional be hired to
Assistance effects on assistance and advice, to invest conduct
for livelihood funds or to set up a business at a livelihood
permanent commercially viable location. restoration
effects on 2. MOT would assist the household to assistance for
livelihood obtain Micro Credit facilities to the project
obtain production assets.
3. Vocational training, if requested by
the household
J. Special Assistance
J1 Special Households A special grant as assessed by the CV per CV assess all valuations as per “Vulnerable
Assistance / having household to improve living standards of LAA and 2008 regulations APs” include the
Allowances vulnerable APs vulnerable APs and households; - LKR Land Acquisition Officer of the DS old, the disabled
for 15,000. manages the acquisition process or the
Vulnerable handicapped,
APs MOT provides funds isolated groups,
DS makes compensation payments single head of
households,
women headed
families, those
below the
poverty line, the
landless,
indigenous
peoples, ethnic
minorities.
K. Community Assets
K1 Loss of Divisional Restoration in existing location of 1. CV assess all valuations as
small scale Secretary affected community buildings, per LAA and 2008 regulations
community division, local structures, infrastructure and common 2. Land Acquisition Officer of
buildings community or property resources to original or better the DS manages the
and other local authority condition; OR acquisition process
structures owning or Replacement in alternative location
such as benefiting from 3. MOT provides funds
identified in consultation with affected
shrines, community communities and relevant authorities; 4. DS makes compensation
temples, property. OR payments
Kovils etc. Chief priest of 5. Local Authority will carry out
Cash payment at full replacement cost;
the religious AND the works
place.
Restoration of access to community
resources
K2 Loss of Divisional Restoration in existing location of 1. CV assess all valuations as
local Secretary affected local infrastructure and common per LAA and 2008 regulations
infrastructur division, urban property resources to original or better 2. Land Acquisition Officer of
e such as ward, local condition; OR the DS manages the
local roads, community or Replacement in alternative location acquisition process
play local authority identified in consultation with affected
grounds, 3. MOT provides funds
owning or communities and relevant authorities;
footpaths, benefiting from OR 4. DS makes compensation
bridges, community payments
Cash payment at full replacement cost;
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Final Report
Type of Entitled
Loss Persons
irrigation, property. AND 5. Local Authority will carry out
water points Restoration of access to community the works
or resources
communal
hand pumps
etc.
K3 Shifting of Utility agency Relocation in alternative location 1. CV assess all valuations as Shifting of
common who owns the identified in consultation with relevant per LAA and 2008 regulations services will be
resources facility authorities 2. Land Acquisition Officer of carried out by
such as the DS manages the the contractor
High acquisition process under the
tension and provisions of
distribution 3. MOT provides funds civil works
electricity 4. DS makes compensation contract
power lines, payments
water 5. Respective Utility Service
supply lines, Agency (e.g. CEB,
and NWS&DB, SLT) will carry
telecommun out the work
ication lines
L. Unanticipated Adverse Impacts
L1 Any Any unanticipated consequence of the project will be documented and mitigated based on the spirit of the principles
unanticipate agreed upon in this RAP.
d adverse
impact due
to project
intervention
(3) Livelihood and Income Restoration
Each affected person whose income or livelihood is affected shall be assisted to improve or at
least restore his/her livelihood and income to pre-project level. Current livelihood and income
restoration programs are as presented in the Entitlement Matrix above, including providing
professional assistance and advice to invest funds or to set up a business at a commercially viable
location, micro credit facilities to obtain production assets, and vocational training, if requested by
the PAPs. The programs shall be re-arranged through consultation with the PAPs, with support
from relevant agencies and NGO in the later stage.
12.11.5 Grievance Redress Mechanism
MOT will form Grievance Redress Committees (GRCs) in all four DS Divisions once PMU is
established in MOT. Any disagreeing person can bring his/her case to this committee, free of
charge (not even stamp duty), for a hearing of his/her case. The GRC can deal with complaints
relating to unaddressed losses or social and environmental issues resulting from project
implementation. It cannot challenge the statutory entitlements of persons and should refrain
from making decision relating to designs or engineering matters or on any compensation matters
that are pending before the Compensation Review Board or courts. The GRC will be headed by
the Divisional Secretary/Assistant Divisional Secretary of the relevant division, the Representative
of the Project Director (Officer from PMU), civil society representatives (who may be chosen
from among the recognised NGOs/ CBOs, clergy, persons representing APs groups and women),
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Final Report
and officers of CEA. In case of matters that cannot be solved by the above committee, an expert
on the specific area can be invited to the committee. The Figure below shows the proposed
structure of GRC.
DS/Assistant DS
PMU Officer Civil Society CEA

Representatives
Figure 12.11.2 Proposed Structure of GRC
12.11.6 Institutional Arrangements
Involuntary resettlement planning, implementation and monitoring involve various ministries and
agencies. The Project Management Unit (PMU) that will be established under MOT for the
Monorail Project will deal with land acquisition and payment of compensation as per the RAP.
Therefore, it is essential for the PMU to effectively and efficiently coordinate with all relevant
institutions to carry out land acquisition and involuntary resettlement properly and expeditiously.
The institutional responsibilities in resettlement process are shown in the table below.
Table 12.11.20 Institutional Responsibilities in the Resettlement Process

Related Activities Responsible Agency
Setting up Resettlement Unit and placement of staff PMU/MOT
Arrangement of relocation for AHs PMU/MOT
Submission of land acquisition application and RAP to MLLD MOT
Acceptance of the land acquisition application MLLD
Appointment of DS as the Acquisition Officer MLLD
Formal request issued to Survey General DS, Acquisition Officer
Employment of NGO for preparation and implementation of Income Restoration
PMU/MOT
Program
Employment of External Monitoring Agency PMU/MOT
Establishment of GRC PMU/MOT
Request for valuation to Department of Valuation DS, Acquisition Officer
Formal surveys Dept. of Surveys
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Final Report
Related Activities Responsible Agency

Title inquiries DS, acquisition officers,
Valuations Dept. of Valuations (Chief Valuer)
Updating RAP and submit it to JICA PMU/MOT
Assist APs in preparation of land ownership inquiries with necessary documents
PMU/MOT
and proofs
Pay cash compensation and/or other assistance to APs PMU/MOT
Assist displaced APs to find suitable lands if necessary PMU/MOT with assistance of DS
Assist displaced APs to get approval for new housing construction from local
PMU/MOT with assistance of DS
councils, if necessary
Support physical relocation of APs when necessary PMU/MOT
Support APs in schooling of displaced children in nearby schools if necessary PMU/MOT with assistance of DS
Implement income restoration programs PMU/MOT with assistance of DS
Implement day to day monitoring of land acquisition and resettlement activities PMU/MOT
Implement monitoring of damages caused during construction PMU/MOT
Prepare monthly progress/monitoring reports and submit them to MOT PMU/MOT
Prepare quarterly internal resettlement monitoring reports and submit MOT and
PMU/MOT
JICA
The RAP implementation mechanism for the Project is shown in the Figure below.
MLLD
(Implementation of
the NIRP)
MOT
DS Dept. of Survey
(Conduct land survey)
PMU
Dept. of Valuation
CSC (Conduct valuation of
GRC property)
EMA
PAPs
MLLD: Ministry of Land and Land Development

MOT: Ministry of Transport
PMU: Project Management Unit
DS: Divisional Secretary
CSC: Construction Supervision Consultant
EMA: External Monitoring Agency
PAPs: Project Affected Persons
Figure 12.11.3 RAP Implementation Mechanism
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Final Report
12.11.7 Implementation Schedule
A time bound implementation plan is envisaged to be implemented for each activity of land
acquisition and resettlement. This implementation schedule is based on the assumption that
project related construction work, by which time all resettlement activities need to be completed,
will commence four years after the signing of the Loan Agreement. The RAP implementation
schedule is presented in the table below.
Table 12.11.21 RAP Implementation Schedule

Month 6 12 18 24 30 36 42 48 54 60
1 Loan Agreement
2 Consulting Service
3 Engineering Design
4 Civil Work
5 Land take under LAA*
6 Updating RAP
7 Payment of Compensation
8 Physical Relocation
9 Monitoring
*’LAA’: Land Acquisition Act. ’Land take under LAA’: From Submission of land acquisition application to the end of
physical relocation of affected people.
12.11.8 Costs and Budget
Total cost of land acquisition and resettlement is estimated at approximately LKR 932.8 million,
equivalent to US$ 7.15 million (at an exchange rate of LKR 130.455 for 1US$: base year of cost
estimation is May 2014). This amount includes the cost of compensation for land and structures,
compensation for loss of income, and relevant allowances. Table 12.11.22 shows the cost
estimation for land acquisition and resettlement for the Project.
The number of land parcels and structures, and the number of recipients of compensation for
income and allowances are based on the result of SES. The unit costs of compensation for land
and structures are estimated based on the results of the RCS. Other unit costs for loss of income
and allowances are set based on the LAA 2008 and normal practices in Sri Lanka, which are
shown in the Entitlement Matrix. It is also assumed that:
• Land within the secured space for the Monorail alignment is to be acquired.
• All of the land and structure of an affected building are to be acquired when the affected
part of the building exceeds 50% of its original area, and can be assumed that the
remaining part of structure/land is no longer viable.
• Compensations for land acquisition/ relocation for MMC and Park & Ride, for relocation
of utilities, and for government land are not included.
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Final Report
The budget for RAP implementation shall be secured by the project executing agency, MOT.
MOT shall allocate the budget for the compensations to the relevant DSs in a timely manner so as
to conduct land acquisition and resettlement without any delay due to hampering flow of funds.
Table 12.11.22 Cost Estimation for Land Acquisition and Resettlement

Item Total LKR Total US$ Total JPY
Compensation for Lands 812,509,000 6,228,000 633,947,000
Compensation for Structures 27,284,000 209,000 21,275,000
Loss of Income 855,000 7,000 713,000
Allowances 15,326,000 117,000 11,868,000
External Monitoring 1,350,000 10,000 1,018,000
Sub Total 857,324,000 6,572,000 668,964,000
Administration Cost 21,433,000 164,000 16,694,000
Price Escalation 11,145,000 85,000 8652,000
Contingency 42,866,000 329,000 33,489,000
TOTAL 932,768,000 7,150,000 727,799,000
*Exchange Rate: US$ 1 = LKR 130.4550 = JPY 101.79 (May 2014)
*1 perch = 25.29285264m2 (source: http://www.convertunits.com/from/perch/to/square+meter)
*Total amounts are rounded off to the thousand and have rounding errors.
12.11.9 Monitoring and Evaluation
The RAP implementation will be supervised by the Project Director of PMU. The Resettlement
Unit (RU) under PMU will conduct the day today activities regarding the RAP implementation
with assistance of the Construction Supervision Consultant (CSC). The RU, with assistance of
CSC, will prepare and submit reports on a monthly basis as a part of the progress report for the
whole project.
Indicators of the internal monitoring will include but not be limited to the following;
Process Indicators:
• Setting up RU and placement of staff

• Training of RU staff
• Census, IOL, baseline socioeconomic survey
• Placement of funds for land acquisition and resettlement
• Deployment of independent monitoring agency
• Procedure of identification of eligible affected persons
• Procedure of determining loss and entitlements
• Development of livelihood and income restoration program
• Preparation of disclosure instruments
• Disclosure and consultation events
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Final Report
• Formation of GRC
• Grievance redress procedures in-place and functioning
• Level of public awareness on RAP policy and provisions
• Cost of compensation collection by APs
• Monitoring reports submitted
Output Indicators
• Number of households relocated

• Number of households compensated and assisted
• Number of farmers assisted
• Number of businesses assisted
• Amount of compensation disbursed
• Amount of resettlement benefits disbursed
• Number of eligible persons identified for training
• Number of vulnerable households assisted
• Number and contents of received complaints and status of solution
• Implementation of livelihood restoration assistance
Impact Indicators
• Changes in housing
• Changes in occupation
• Changes in income and expenditure
• Changes in vulnerable households and women headed households.
Internal monitoring reports on RAP implementation will be included in the quarterly Project
Progress Report (PPR) prepared by RU. The internal monitoring report will then be integrated
by the PMU with the overall PPR submitted to JICA and/or other agencies associated with
implementation. The CSC will assist PMU in preparing the overall PPR for JICA.
12.11.10 Community Participation
(1) Community Participation during the Draft RAP Preparation
It is important to promote public understanding and fruitful solutions to address the local needs of
the communities and issues pertaining to resettlement, through information dissemination,
consultation and participation processes involved with PAPs and other stakeholders. The Project
employs a range of formal and informal consultative methods, including stakeholder meetings,
awareness programs, focus group discussions (FGD), meetings and individual interviews.
First Stakeholder Meeting
In line with the above approach, prior to land acquisition and resettlement process commencement,
MOT launched a series of public awareness creation and stakeholder consultation meetings at
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Final Report
national, divisional and field levels addressing appropriate audiences. This series of meetings
commenced with the national level stakeholder information sharing meeting held on 18th
February 2014 at Colombo as described in chapter 12.10.
Awareness Program
Prior to the socio-economic survey, the Awareness Programs for the four affected Divisional
Secretaries (DSs) and Grama Niladhari (GN) were held on 4th June 2014 in order to explain the
project outline and to request the DSs and GN’s support for surveys for the RAP. A summary of
the Programs is shown in the Table below.
Table 12.11.23 Summary of Awareness Programs

Colombo DS Thimbirigasyaya DS Sri J’ pura Kotte DS Kaduwela DS
Date & 4th June 2014 4th June 2014 4th June 2014 4th June 2014
Time 9.30am - 10.30am 11.40am -12.45pm 1.15pm -2.30pm 3.00pm - 4.15pm
Venue Auditorium DS Office Board Room DS Office Office Room DS Office Auditorium DS Office
Organiser Ministry of Transport, JICA Study Team
Participants 16, including 10, including 8, including 53, including
(excluding Divisional Secretary, Divisional Secretary, Divisional Secretary, Assistant Divisional
MOT and Additional Divisional Assistant Divisional GN Officers Secretary,
JICA study Secretary, Secretary, GN Officers,
team)
Land Officer, Management Assistant, Development Officers,
GN Officers Land Officer, Agriculture R. & P.
GN Officers Assistant
Objectives Introduce Outline of the Monorail Project

Present brief content and schedule of Resettlement Action Plan (RAP)
Request for the DS and GN schedule of Resettlement Action Plan (RAP)e DS
Discuss cut-off date
Main Cut-off date is the day of Cut-off date is the first Cut-off date is the first Cut-off date is the first
Points Awareness Program (4th day of the socio-economic day of the socio-economic day of the socio-economic
Discussed June).* survey, and DS will take survey, and DS will take survey, and DS will take
Socio-economic survey necessary action to necessary action for necessary action to
can be started after 15th publicise this decision. implementation. publicise this decision.
June. Socio-economic survey Socio-economic survey DS requested to shift the
No need for a can be started after 15th can be started after 15th location of Malabe station
stakeholder meeting for June. June. in order to avoid impact
PAPs before the survey. No need for a stakeholder GNs wanted to know on students and parents of
meeting for PAPs, actual locations of Rahula Girls School.
DS and GN wanted to Survey team agreed to
know the exact location religious /community impacts. Survey team
organizations before the replied that before starting submit this idea to MOT.
of land to be acquired.
MOT explained some survey. the survey maps will be DS and GNs wanted to
land acquisition will be GN showed concerns provided. know actual locations of
necessary for regarding Bo tree at No need for a stakeholder impacts.
constructing stations Boralla junction. MOT meeting for PAPs, No need for a stakeholder
although the land amount explained that the route religious /community meeting for PAPs,
is minimised as much as has been selected to avoid organizations before the religious /community
possible. the Bo tree. survey. organizations before the
survey.
*Cut-off date for Colombo DS has been set as the same date (16th June 2014) as the other DSs, after all the Awareness
Programs.
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Final Report
Focus Group Discussion
In addition to the formal meetings mentioned above, Focus Group Discussions (FGDs) were held
with some civil society groups such as three wheeler drivers and farmers in order to obtain their
perceptions of the Project. Participants’ general perspectives toward the Project are as presented
below.
Three wheeler drivers:
• In general, attendees to the meetings took a supportive stand towards the Project, and
appreciated the selection of this area (IT Park junction) as the destination of the proposed
Monorail (Malabe Corridor). They expect major changes and huge development in the
area with the implementation of the Monorail, and expect that opportunities may arise for
new income generation activities. Due to increasing population, they think they may
have many chances to earn much more money with their three wheelers and expect an
increase in property values in the area.
• In Battaramulla area three wheelers drivers believe, that the value of property and earning
capacity of the business community may increase rapidly.
• However, during the construction period they think that they may face difficulties such as
reducing daily earnings. Therefore if there is impact for their three wheelers park during
the construction period, they requested another place (temporary) be arranged for them.
They also expect assistance to maintain their income levels during this period.
Farmers:
• What were the reasons to select this paddy lands to construct the Monorail depot?
• Any construction in the paddy lands may cause flooding.
• If the government is going to construct a huge monorail depot within a 7-8 ha area, it may
have a huge impact on the surrounding paddy fields.
• “Ande” tenant farmers will lose a great part of their income.
• The sentimental value of the property cannot be converted into Rupees.
• Old farmers cannot find other employment to continue for the rest of their lives.
• A request was made to change the proposed location or shift the IT Park junction. (There
are neglected paddy fields there .)
(2) Further Community Participation
As noted above, it is important to promote public understanding and obtain local opinions through
information dissemination, consultation and participation processes involved with PAPs and other
stakeholders for smooth implementation of the RAP. In this regard, opportunities for PAPs’
involvement should be secured regularly in the further planning and implementation stages of the
RAP process. Especially, stakeholder meetings in the draft RAP stage for the affected people
have not been conducted due to the current situation surrounding the Project. Therefore, such
stakeholder meetings should be conducted by MOT in a later stage, for finalizing the RAP with
reflection of the stakeholders/PAPs’ opinions on the RAP. Other methods of public participation
and information dissemination such as FGDs, interviews and community meetings shall be also
conducted / organised throughout the process of RAP implementation.
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CHAPTER 13 Findings and Recommendations
13.1 Findings
In this Final Report, the entire Feasibility Study result of the monorail system, which is the part of
the Integrated Transport System with Monorail (SKYTRAIN) project, has been presented. As
the summary of the result, following points are the findings of the project:
• The monorail system which includes civil structures and electrical and mechanical
systems was designed as a technically and economically suitable and effective solution for
the introduction of a new transit system in the Colombo Metropolitan Area. The route
and stations were selected to capture many passenger demands under the constrains within
the urban area of Colombo. It can help to alleviate traffic congestion and to match social
and environmental considerations in urban area.
• The project costs for the implementation of the monorail system will be economically
covered by the large amount of benefits from the monorail system.
• In terms of financial sustainability, the public corporation is difficult to operate a monorail
system to increase the fare up to luxury bus level even if the monorail fare setting has the
flexibility for demand control. When the public corporation receives the additional
revenue from MmTH with Mall-1, the public corporation has the possibility to cover the
O&M.
• In terms of environment and social aspect, EIA study revealed that the potential impacts of
the proposed project take place mainly during the construction stage and impact during
operational stage is minimal. Although the impact from the project during construction
stage could be significant particularly for items such as noise/vibration, traffic and social
infrastructure, the impact could be minimised and mitigated to a great extent if appropriate
mitigation measures are implemented as suggested in the EIA study.
• Social study revealed that impact on agricultural land is relatively high due to acquisition
of such land for construction of depot, however, the number of houses and commercial
establishments to be relocated due to the project is relatively low, since the monorail route
traverses mainly through the already existing road network.
Therefore, the project is expected to be implemented as the introduction of the new transit system
not only for the public transport user but also the entire residence of Colombo city. In addition, it
is to be desired that the monorail project is developed together with MmTH in terms of financial
sustainability.
363
Final Report
13.2 Recommendations on the Project

13.2.1 Formulation of Project Management Unit (PMU)
In order to successfully implement the project smoothly and effectively, the project management
unit (PMU) shall play an essential role in communicating among stakeholders and to drive the
project. Before official approval of the project, it is necessary to reinforce the core team in the
MOT since they play a role for the implementation of the project. Then, right after the approval, it
is recommended to start formulating the PMU with a sufficient number of human resources from
the necessary fields and preparing the actual implementation. It will be helpful to study similar
experiences from other countries for the enforcement of the PMU.
13.2.2 Institutional Arrangement for Monorail Operation/Management
Close discussion on how to arrange the institutional arrangement of monorail operation is essential.
This study provided several ideas of operational bodies for monorails, so that more effective
operation/management methods should be examined before starting operation.
13.2.3 Environmental Impact Assessment
Draft EIA report was prepared according with TOR issued by CEA. The draft EIA report shall
be submitted to CEA for adequacy checking and shall be finalized based on comment from CEA.
After finalization of draft EIA, it is recommended to conduct stakeholder meeting to disclose the
result of EIA study to public and seek any comment against the project. The comment raised
from public shall be adequately considered and draft EIA report shall be updated to address a
comment as necessary.
13.2.4 Resettlement and Relocation Activities
As we discussed in the report, the resettlement and relocation activities affect the construction
plan and periods directly. In order to make a smooth implementation of land acquisition and
resettlement, all the necessary arrangements and measures should be taken in accordance with the
Resettlement Action Plan (RAP) prepared for the Project. It is also important to update the draft
RAP based on the stakeholders’ perceptions / opinions through continuous stakeholder meetings.
364

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Preparatory Survey for New Integrated Urban Public Transport System Introduction Project

CHAPTER 8 Institutional Arrangements and Operation & Maintenance

8.1 Transport Administration

Table 8.1.1 Transport Administrative Structure by Transport Mode

Freight vehicles (carriage NTC (Inter) Private Private

Table 8.1.2 Functional Responsibilities of Transport related Institutions

Operation and Management of Equipment & Facility (Upper)

Procurement of Infrastructure Development (Construction)

Operation and Maintenance of Constructed Infrastructure

Formulating and updating Administrative & Technical

Property Management (shops, vendors and so on)

Financial Arrangement for Business Operation

Business Operation Performance Evaluation

Upper Infrastructure (Equipment & Facility)

Managing Fare Collection System

Service Delivery Planning

RDA PRDA &

PRDA & LA LA RDA LA LA LA &

RDA RDA RDA RDA RDA &

General bus service (Private) NTC & NTC &

General bus service (Public) NTC &

General bus service (Private) NTC & RPTA &

Bus terminal NTC &

Bus terminal NTC &

Paratransit RPTA & RPTA &

Private coach services (school van, RPTA & RPTA &

Note: LA: local authorities, OPR: operator

8.2 Implementation Schemes for a New Transit System (Monorail)

8.2.1 Organizational Structure for the Railway Sector

• Supervisory and regulatory agency

The key tasks of the new entity are to provide for:

• Changes in the regulations of public transport operations for a Government-owned

- Accident and incident investigation

Figure 8.2.1 Proposed Organizational Chart for SMA

Supervisory and regulatory agency.

Scheme 1 : Scheme 2: Scheme 3: Scheme 4:

Operator Line 1 Operator Line 2 Operator

Source: SKYTRAIN Study Team

(2) The Implementing and Operating Agency (Agency/Corporation)

The main scope of works of the PMU is summarised below:

Scope of Work of Agency

Table 8.2.1 STC Tasks and Duties

Organization Structure and Staffing of STC

• The rail business unit is designed as a function-based organization. This is necessary to

1) Planning/Basic Design Stage

8.2.2 Operation Scheme

(A) ODA including O&M Concession,

(D) Direct Operation and Contracting Maintenance,

(E) Direct Operation and Direct Maintenance, and

Table 8.2.2 Type of Contract

Type of Contract Definition

8.2.3 Maintenance Schemes

To achieve optimum efficiency of maintenance efforts, maintenance philosophy and planning

• Direct Maintenance (by Owner/Operator)

(2) Maintenance Outsourcing Schemes

An important consideration in making the maintenance outsourcing decision is what aspects of

Figure 8.2.3 Maintenance Task Work Flow

8.2.4 Evaluation of O&M Schemes