Highway Project - final

CULMINATING PROJECT HIGHWAY ROAD ANALYSIS

1 Culminative Project Highway Road Analysis Table of Contents Contents 1. Executive Summery ............................................................................................................................. 2 1.1 Overview....................................................................................................................................... 2 1.2 Key findings.................................................................................................................................. 2 2. Introduction ........................................................................................................................................ 3 2.1 Introduction......................................................................................................................................... 3 2.2 Industry Analysis .......................................................................................................................... 4 2.3 Research Problem ......................................................................................................................... 5 2.4 Research Objective ....................................................................................................................... 7 2.5 Limitations of the study ................................................................................................................ 8 3.Literature Review ....................................................................................................................................... 9 3.1. Theories, Concepts and Models ......................................................................................................... 9 3.1.1. Purpose........................................................................................................................................ 9 3.1.2. Scope........................................................................................................................................... 9 3.1.3. Concepts...................................................................................................................................... 9 3.1.4. Theories And Models................................................................................................................ 11 4. Research Methodology....................................................................................................................... 12 4.1 Introduction................................................................................................................................. 12 4.2 Methodology ............................................................................................................................... 12 4.3 Research approach ...................................................................................................................... 13 4.4 Population and Sample Selection................................................................................................ 14 4.4.1 Population .................................................................................................................................. 14 4.4.2. Sample Selection....................................................................................................................... 14 4.4.3. Sample....................................................................................................................................... 14 4.5. Research Instruments and Data Collection Methods ....................................................................... 14 5.1 How highway system works ....................................................................................................... 15 5.2 Regulation and policies............................................................................................................... 16 5.3 Impact of environmental social and economic aspects ............................................................... 17 5.4 Financial Feasibility.................................................................................................................... 21

2 Culminative Project Highway Road Analysis 1. Executive Summery 1.1 Overview This study has been focused on the Southern Express Way Research. In this research it will be exploring on the necessity of High Way, sources of funding, existing problems of the highway project, safety improvements of the National High Way, Environmental Social and Economic impacts, how the High Way System works and the affected policies and laws. 1.2 Key findings This research reviews the following key findings. • The project has been budgeted to 44,426,333,159.50 • The raising of the fund is partly from the Japan Bank. • It will take about 30 years to cover the capital expenditure approximately. • The main way to recover the cost is the High way toll. • The revenue is gradually increasing from 2011- 2021. • Identified impacts: Social Impacts • Increase in demand for raw materials • Increased employment opportunities • Promoting development of tourism • Promoting services along the highway Economic Impacts • Higher urbanization • Reliable deliveries • Higher quality of life • More frequent accidents • High use of non-renewable resources (Losing sustainability) Environmental Impacts • Destroys wildlife habitats • Loss of biodiversity • Pollution • Deforestation • Contributes to climate change and global warming

3 Culminative Project Highway Road Analysis 2. Introduction 2.1 Introduction Currently, as Sri Lanka gradually moves into the upper middle- income category, the growth rate of the demands for transport is very high and continues to grow. As highways are being constructed, it will create new employment opportunities, enhancing the standard of living for citizens, this indirectly and directly contributes to the country’s economic growth and development. For the construction of a highway, the first thing that must be done is to ensure an analysis and research is carried out, to make sure that the costs will fit into the budget that has been set, making sure the construction is done in the most effective way possible. This also helps to make sure that a long-term income is made efficiently and sustainably, molding a path for the future generation. Table 1.1 According to the department of motor traffic, the table above shows the vehicle population of Sri Lanka, showing the increase in number of vehicles, leading to an increase in traffic. As the traffic and population continues to increase, we need to solve this dilemma, and one of the solutions is the use of highways.

4 Culminative Project Highway Road Analysis With Sri Lanka agreeing to the UN 2030 agenda for sustainable development, all government organizations are required to ensure the achievement of Sustainable Development Goals by 2030. As highways are constructed, the main focus is on Goal 8- Decent work and economic growth, Goal 9 – Industry, Innovation and Infrastructure and Goal 11- Sustainable cities and communities. 2.2 Industry Analysis Purpose of national road master plan This enables the road sector to respond to economic and social needs connected with countries. This analysis explains the investment in the road sector with available resources. It provides a physical plan for maintenance, rehabilitation, improvement of the existing network, new road construction, and sets out a spending requirement for National Roads. The RDA has a responsibility about the development, maintenance and proper management of the national road network in the country. Therefore, preparation of new masterplan is timely for RDA. Development of national road master plan Development of the National Road Master Plan considered under two features, the existing national road network improvement and new proposals. Existing national road network improvement require detailed inventory and traffic data for each and every road sections of the existing network. New proposals are mainly created on forecasted traffic demands, road safety development and the economic and social needs of the country. This document further presents the importance of road development, giving special emphasis to road safety, and public transport facilitation while following the environmental safeguard and catering to social obligations. Great effort has also been given to streamlining and prioritizing of investment, aligned with the National Development agenda.

5 Culminative Project Highway Road Analysis 2.3 Research Problem Existing Problems Drainage issues Draining out rainwater from the road surface is important in order to maintain the strength of the layers beneath the road structure, as they withhold the impact of heavy moving vehicles. Hence, building roadside drains are extremely important. However, most drainage systems are blocked by residents who pollute the drains with waste material, resulting in water stagnation that damages the roadsides. As a result, large amounts of money is spent for the repairs and maintenance of damaged roads. A lack of proper authority to regulate these drainage issues, and a lack of attention given to make sure the drainage systems function correctly are also some main reasons why it leads to failure. Furthermore, due to urbanization and township development there is a lack of adequate space provision for drainage systems. Overloading of road networks Overloading on highway roads is a serious issue in many countries of the world. A key role played by road pavement is to bear the weight of load distribution, so the pavement must account for the expected lifetime traffic loads. Traffic loads are calculated based on the accepted legal axle loads limits. These legal axle load limits are usually ignored and violated by transporters. Damage to roads by overloading results in higher maintenance and repair costs. It also causes the pavement to fail earlier than it is designed for so the lifespan of the road would be shortened. Road safety Approximately 1.3 million people die in road accidents worldwide, leaving around 20 to 50 million people injured. Ninety percent of road accidents are reported to occur in low- and middle-income countries. Road accidents are currently the ninth leading cause of death and is said to be the fifth leading cause by the year 2030. Many factors cause these fatal accidents, such as speeding, drunken driving, violating traffic rules, poor vehicle conditions, damaged roads, using mobile phones while driving, not wearing a seat belt, falling asleep, poor infrastructure or bad weather conditions. Following table 2-2 shows the statistics of accidents happened in Sri Lanka during the period from 2013 to 2017.

6 Culminative Project Highway Road Analysis Table 2-2: Accident statistics of Sri Lanka during last five years Overall Total Total Total Total Total Fatal 2013 2014 2015 2016 2017 Accidents Grievous 2,190 2,261 2,601 2,824 2,924 Non Grievous Damages 6,872 7,072 8,187 8,518 8,144 Only 13,526 12,782 13,595 13,961 13,592 15,293 13,854 13,726 13,675 13,072 Road accidents are a major issue, and it is up to the infrastructure providers, motor traffic department, the public, drivers, motorists, police and pedestrians to take responsibility in reducing the amount of these accidents. Traffic congestion Currently traffic congestion is a major issue in highways which has many negative effects such as affecting distribution times, environmental pollution, decrease in productivity, higher vehicle operating costs and many more. The main cause of this road congestion is due to a significant increase in the use of vehicles. However, there are many other reasons as well such as: 1. lack of network capacity • Not maintaining an even lane width along national highways. • Narrow bridges • Unplanned city developments • Locations of bus stops • Illegal constructions • Lack of slip lanes in the junctions 2. Driver behavior • Drunken drivers • Drivers violating traffic rules • Attitude issues such as disrespecting others’ rights 3. Road infrastructure • Damaged road surfaces • Lack of maintenance • Lack of attention on road infrastructure components

7 Culminative Project Highway Road Analysis 2.4 Research Objective Necessities of highways Transportation is an unavoidable need for the economy of a country. So, to transport goods from manufactures to market, people from their homes and to other service providing places such as schools, hospitals, banks etc. is a main necessity in the society. Therefore, it is a responsibility of a government to provide its necessity, for the benefit of people, to make their work forces productive and to minimize the cost for fuel. Building highways is a top priority to boost the economy and for the productivity. It is known by other names such as express ways, throughway, parkway, freeway and superhighway. Highway development is increasing across the world. Highways are beautified in many ways. On some of them vast beds of flowers have been planted. Also, to replace the trees which have been chopped off for building the highways are to be replaced with the same amount or more. This can be done in a manner to beautify the environment as a concept of reforestation. This could put a stop to environmentalists protesting against the building of highways. There are innumerable advantages and benefits of using highways. The opening of a new highway usually attracts businesses and investors, both local and foreign which directly and indirectly provide jobs for the unemployed. By travelling on the highway one can get to the desired destination on time and can travel very comfortably. One other indirect advantage is the durability of vehicles. Travelling on highways, unlike other roads, the vehicles can travel smoothly without any bumps. The costs made by making of the highway can be easily covered by the highway and can generate pure profit. The great increase in highway building has opened many primitive or rural areas to high development. The opening of a new highway usually attracts businesses to service the need of travelers, which then cause growth in areas that were previously undeveloped.

8 Culminative Project Highway Road Analysis 2.5 Limitations of the study • Data Collection Problems There were a few errors in data collection, some of which couldn’t be avoided. Our research sample size was small and didn’t take into account highways around the whole country. People who have answered questionnaires may have given false answers. There may have been possible human error while counting number and type of vehicles. • Based on past data The data extracted on revenue and costs of the highway are from 2011 to 2020, predictions were made using these. The predictions made didn’t consider future or present events, and so there may be actual values may differ from predicted values. • Predictions may change with inflation Predicted values may change due to inflation. Inflation and overhead costs weren’t taken into account during the research. With inflation there is possibility that user charges change, this can cause major changes in the income that has been predicted. • Population changes weren’t considered Population will fluctuate as years pass, this change in population wasn’t considered, as population changes number of travelers using the highway may increase or decrease, and an increase in population would mean new highways would emerge, causing a change in profits made. • Number of vehicles in the future not taken into account Number of vehicles in the future is highly likely to increase, it has been increasing the past few years, and will continue to increase. This factor wasn’t considered while making predictions, therefore there may be differences in the predicted value and the actual value in the future, since more vehicles would mean more constructions of highways, so higher costs and income. • Predictions may change due to external factors Many external factors may affect the predictions made, like the COVID-19 pandemic, this will mean that roads close down and highways won’t be used, therefore no income would be made. Sometimes Highways will have to close down for maintenance, once again meaning, income will be stagnant until reconstructed. Such external factors, are unpredictable and authorities may not see them coming, sometimes causing great loss, and very rarely cause a positive change in income.

9 Culminative Project Highway Road Analysis 3.Literature Review 3.1. Theories, Concepts and Models This research paper is an examination of southern highway project in Sri Lanka. 3.1.1. Purpose The purpose of this is to discover existing or experimental practices and financial feasibility of constructing highways in a country. 3.1.2. Scope The referred journal articles are as follows: - road development authority - National road master plan 2018- 2027 - Central bank annual report The referred organizational documents: - Annual ledgers of 2021 - Road development authority from 2011-2021 The referred construction documents: - Road development authority - BOQ of southern expressway project 3.1.3. Concepts The research is considered the following concept and indicators when measuring and analyzing southern highway project. DIMENSIONS: • Human wellbeing; Indicator - safety - good government - equality • Environmental wellbeing; Indicator - Clean air - Clean water - Clean land - Ecological resources - Renewable energy • Economic wellbeing; Indicator - Employment - Economic development

10 Culminative Project Highway Road Analysis Sustainable Construction Practices: Principles Sustainable Practices To comply with different governmental sustainability legislations including Compliance with sustainability legislation environmental requirement and social responsibility to improve business Design and procurement competitiveness. To improve the project’s whole life value Technology and innovation through green design and the promotion of best practice construction procurement throughout Organizational structure and process the supply chain. To enhance the company’s capacity of Education and training technology and innovation for increasing the sustainability of both the construction process Measurement and reporting and its resultant assets. To re-organize and re-engineer the organizational structure and process for facilitating the implementation of sustainable policy and strategy. To increase organizations commitment to sustainable construction through better education and training of every staff in the company. To develop a measurement and reporting system or use existing benchmarks for evaluating companies environmental and social performance and identify the areas for improvement.

11 Culminative Project Highway Road Analysis 3.1.4. Theories And Models - Break even analysis To analyze financial feasibility -Payback period analysis This is the simplest way of looking at one or more project ideas as it calculates how long it will take to earn back the project capital. This is calculated as follows: Cost of project divided by annual cash inflow equals payback period. Payback period= cost of project Annual cash flow

12 Culminative Project Highway Road Analysis 4. Research Methodology 4.1 Introduction This section describes the research approach that has been planned in order to meet research objectives. Basically, the research was carried out in seven steps as shown in figure 4-1. It explains how the research methodology and the fundamental parameters were identified. The population and sample selections are included in this section. Furthermore, the chapter discusses about the research instruments that are used to collect qualitative and quantitative information and methods of measurements of key variables. The chapter ends with a summary. 4.2 Methodology Both qualitative and quantitative research methodologies were used to analyze the facts. The number of informed interviews were used at the initial stage to identify the practical issues of a highway project. Considering road users view and literature, several variables were identified as necessity of highways. The pilot survey was carried out to measure the identified variables and measure the reliability of the questionnaires. After several discussions with managers, it was finalized that conceptual framework and questionnaires were used for data collections. For the quantitative analysis, more questions and observations were used based on the questionnaire for the qualitative analysis. By observing a highway within peak-time and off-peak time, more data has been collected. The research team analyzed these data and figures using secondary resources and identified some strengths, weaknesses and variables related to the highway project.

13 Culminative Project Highway Road Analysis 4.3 Research approach

14 Culminative Project Highway Road Analysis 4.4 Population and Sample Selection 4.4.1 Population The population is 10 highway users (passengers and drivers in Sri Lanka) four executives from road development authority and central bank. 4.4.2. Sample Selection Different criteria were adopted as sampling method to draw the representative sample from the population. Employee sample in RDA and central bank executive were selected based on their position, responsibility and the experience in the same industry. Passengers and drivers were selected based on regular usage basis of highway roads and non- highway roads. 4.4.3. Sample The population table below shows the target sample sizes for each areas of study. Target Population Total No. Of Interviews Taken Passengers 5 Drivers 5 Executive- Road Development Authority 3 Executive 1- Central Bank 1 4.5. Research Instruments and Data Collection Methods Collection Method: -Primary data was collected through pre-planned interviews with key managers/executives in road development authority and central bank to gather qualitative and quantitative information. The interviews were conducted in formal ways followed by a structured questionnaire. -Secondary data was collected from the historical data in the company information systems, annual reports, management reports and survey questionnaires.

15 Culminative Project Highway Road Analysis 5. Data presentation and analysis 5.1 How highway system works Laying out a highway seems like a simple endeavor. You have two points to connect and you’re trying to create a simple, efficient path between them. The decisions taken are mostly designed to keep motorists safe and comfortable. We could race at whatever speed we want. But reality dictates that engineers choose the maximum speed of a roadway based on a careful balancing act of terrain, traffics, existing obstacles, and of course, safety. Engineers should be sure that motorists could traverse the road at a certain maximum speed safely. And that confidence has everything to do with geometry. You would never put a 60 mile per hour speed limit on a city street. Why? Because hardly any competent driver could navigate a turn so fast, let alone avoid a hazard, maneuver through traffic or survive a speed bump. So how do we know which kind of road feature are manageable for a given speed? There are three main features of roadway geometry that are decided as a part of design: The cross section, Alignment and the profile. These three features are used to build a highway. Moreover, a plan will be needed. This is to avoid the risk of failure. Apart from that, there are facilities available with the expressway in order to supply the best service to the expressway users. All of them are under Expressway Operation Maintenance and Management Division. The major facilities are available as follows: Traffic and Patrolling Fire and Rescue Expressway Police Call centers and CCTV Monitoring An emergency call number can be 1969 is available in any case of emergency for users at any time of the day. The operators take the immediate step to solve the problem with the users. CCTV monitoring is also done during 24 hours a day. If any accidents or tragedy occurs on expressway or its bounded area, CCTV inspectors can identify the incident and the responsible person through monitoring and take suitable actions for those tragedies. Traffic and Patrolling is the most supportive unit for expressway users. They are dealing with the traffic in the expressway. If any accident or a break down in vehicles occurs while traveling on the expressway, these people go to the place immediately and get the best solution for the problem preventing secondary accidents or unnecessary traffic on the expressway. They get the help of Fire and Rescue and expressway police to complete their duty. Special service vehicles which are on alert in 24 hours to do their duty. These vehicles are used to remove damaged vehicles from the expressway, carry accident vehicles to the nearest interchanges, ambulances are used for carrying people to the nearest hospitals, fire and rescue

16 Culminative Project Highway Road Analysis vehicles are used to cease fire if occurred by any accidents and prevent occurring fire by accidents. Here, there are costs to be covered up in order to build the highway. For example, administrative costs. Administrative costs can be so large sometimes that it outweighs the welfare benefits. 5.2 Regulation and policies • Motor Traffic (Amendment) Act, NO. 8 Oct 2009 • Gazette extraordinary no:1912/2 dated 24th April 2015, National throughfares (Colombo Katunayake user for National highway) Regulations NO:01 of 2015 • Gazette extra ordinary NO:1924/8 dated 20th July 2015 National throughfares (User fee National highway) Regulation NO: 02 of 2015 • National Physical Planning Policy Objectives, to achieve the vision, the national physical planning policy is expected to protect the environment through limiting development in fragile areas the protected area network and areas or local and regional environmental significance. This national physical policy was formulated in 2007 and enacted in 2011. • National transport policy The ministry of transport issued the policy for all intents and purposes which is known as the National Transport Policy to safeguard the rights of transportation in Sri Lanka. Road Transport is vital to economic development, trade and particularly social integration, which literally rely on the conveyance of both people and goods in a sort of major way. The transport policy to be adopted in the future should aim at restricting number of private vehicles for passengers, while encouraging more efficient public transport services. • Road sector policy and strategies As the road sector is a sub sector of the transport sector, road sector policy can be considered as a part of the overall transport policy of the country. Therefore, the road sector policy will not be able resolve the present transport problems, especially in around an urban area. • Vision 2025, A country enriched • Sustainable Sri Lanka – vision and strategies path

17 Culminative Project Highway Road Analysis 5.3 Impact of environmental social and economic aspects Highways have become an essential part of the business world and serve a huge purpose to the citizens of a country as it is usually the quickest route for travelling from one city to another. Highways have environmental, social and economical impacts, and some of these are beneficial while some cause a great disadvantage. Economical • Increase in demand for raw materials As a lot of raw materials will be needed to construct and maintain a highway, there will be a high demand for them. This will give raw material suppliers a new income, allowing them to gain higher profits. • Increased employment opportunities The constructing of the highway itself gives many employment opportunities, once it is constructed the opportunities increase as people are required to maintain the highway. Apart from the direct opportunities there are many indirect opportunities, like from other services that may emerge along the highway. • Promoting development of tourism A quality road network like a highway makes a destination easier to access, more attractive and famous. Higher tourism would provide greater financial benefits, it boosts the country's image and economy, acts as a source of foreign exchange earnings and helps with the economical side of the country. • Promoting services along the highway Many factories, restaurants, service stations and other services may appear along the highway, as many people use the highway, these services get a large customer base and so they gain good income. These services provide jobs to many locals in the area, giving many of the unemployed a way to survive and cover their daily expenses. • Loss of jobs for some people People like farmers will lose their farming land and therefore lose their jobs, although new job opportunities may arise, they may not have the expertise and skills required for these new jobs, and they are not experienced in the usage of newer machines.

18 Culminative Project Highway Road Analysis Social • Higher urbanization As urbanization of a country increases, it improves the country in many ways. It provides better and more modern infrastructure, reduces poverty, increases employment opportunities and improves wages, provides quality education and makes transportation easier. It diversifies the economy. • Reliable deliveries It enables providers to reach markets in a quicker and cheaper way, encouraging their customer base to increase since deliveries will be more reliable and faster. A wide customer base would mean the business can generate a higher economy and sometimes if they must provide in large amounts, they can exploit economies of scale. • Higher quality of life Quality of life is the degree to which an individual is healthy, comfortable, and able to participate in or enjoy life events. Quality of life increases because faster routes reduce tension and help people reach places quicker, it provides employment to some people, generating a higher income for them. These give an individual great satisfaction and makes their standard of living better in general. • More frequent accidents Number of accidents on highways are very high and much more fatal because higher speeds are reached while on a highway and due to the higher number of miles driven on a highway. • High use of non-renewable resources (Losing sustainability) A non-renewable energy resource is one that will run out, it cannot be replaced quick enough to keep up with consumption. Construction of highways uses two of the main non-renewable resources, coal and fossil fuels. Burning of fossil fuels leads to global warming as it releases greenhouse gases like carbon dioxide. This is not sustainable and harms the lives of the future generation.

19 Culminative Project Highway Road Analysis Environmental • Destroys wildlife habitats Many highways are built in forest areas where a majority of wildlife have their homes. As the forests are cleared away, many animals lose their habitat, causing disturbance in their living and breeding habits, causing them to become endangered. • Higher animal mortality rates Many animals die because they lose their habitat. Some leave their habitat and may wander onto the highway and some leave their habitats in search of food and may get hit by a vehicle. As pollution increases, many diseases may develop and affect the animals, and if this disease evolves into a superbug, it may kill a whole population of animals. • Destroys surface vegetation and soil erosion There is a huge loss of valuable farmland and farms that are already working on harvesting will lose all its vegetation, this indirectly causes the loss of jobs to farmers. Soil nutrients dissolve soon, and soil erodes, destroying ecology and landscapes. • Loss of biodiversity Maintaining biodiversity is important for the health of our planet and all the beings on it. It provides a functioning ecosystem. It provides food resources, protects freshwater resources, helps to break down pollutants, provides nutrients, stabilize the climate and simply makes living possible. • Pollution Building of a highway creates all types of pollution and it is very high and usually disregarded. There is high noise, water, air and land pollution. Many vehicles release carbon monoxide and breathing air with high concentrations of this can lead to asphyxiation, since it reduces the ability of blood to carry oxygen. • Deforestation Deforestation is the clearing away of forests and trees. The removal of trees would mean more carbon dioxide will remain in the atmosphere, contributing to the buildup of greenhouse gases. There is an Increased risk of flooding, leaching- loss of soil nutrients, soil erosion, climate change, habitat loss and so on. • Contributes to climate change and global warming Global warming is the average rise in the world’s temperatures. This is caused by an enhanced greenhouse effect which absorb heat and rebound back to earth, not allowing the heat to escape earth. This leads to rising sea levels, increase in extreme weather and natural hazards, drowning cities due to increased flooding, higher wildlife extinction, more acid rain leading to acidification

20 Culminative Project Highway Road Analysis of water bodies, killing aquatic life and change in ecosystems like the carbon, nitrogen and hydrological cycle. The construction of a highway has many advantages, but at the same time many environmental issues. These issues are sometimes disregarded, but instead they must be mitigated. Sustainability must be maintained. More renewable resources can be used. Energy must be used sufficiently. Governmental laws must be introduced and implemented to reduce pollution and introduce recycling schemes. Biodiversity must be protected because it is vital for the existing of humanity and the planet.

21 Culminative Project Highway Road Analysis 5.4 Financial Feasibility 1. Evaluation period. The financial analysis covers a period of 32 years excluding the construction period. This is in line with the financial objective of the Road Development Authority (RDA) for full cost-recovery over 30 years of Southern Expressway operations. 2. Project cost. The cost of the project includes all costs related to the construction of the expressway, and operating and maintenance costs. Construction cost is actual cost including taxes. The recurrent maintenance cost is based on actual and the periodic maintenance cost unit costs were derived from the actual cost incurred by the RDA on a comparable highway (the Sothern highway). It should be noted that traffic on this highway exceeds current traffic volumes and loads on the Southern Expressway so that the assumption is unfavorable to the financial performance of the expressway. 2.1 Capital Expenditure Preliminaries Capital Expenditure Earthworks Sub-Base And Base Course 3,802,482,598.00 Pavement 6,616,496,674.00 Structures 1,499,437,700.00 Drainage 2,235,113,250.00 Incidentals 19,919,142,740.00 Facilities 2,093,167,110.00 Day Works 2,334,668,039.00 Provisional Sums 511,622,690.00 65,002,358.50 5,349,200,000.00

22 Culminative Project Highway Road Analysis Capital Expenditure PROVISIONAL SUMS 5,000,000,0001.000,000,000,0001.50,0000,000,0002.00,0000,000,0002.50,0000,000,000.00 DAY WORKS FACILITIES INCIDENTALS DRAINAGE STRUCTURES PAVEMENT SUB-BASE AND BASE COURSE EARTHWORKS PRELIMINARIES -

23 Culminative Project Highway Road Analysis Capital expenditure – In detail Capital Expenditure Preliminaries 3,802,482,598.00 Office For The Engineer And The Employer Housing For The Engineer And Employer Vehicles For The Engineer And The Employer Operatives For The Engineer's And Employer Staff Traffic Safety And Control Maintenance Of Temporary Roads Project Signboard Monthly Progress Report Insurances, Bonds And Securities Contractor's Drawings Safety, Security And Protection Of The Environment Design, Survey And Investigation Earthworks 6,616,496,674.00 Clearing & Grubbing Removal 1,499,437,700.00 Removal Of Existing Structures 2,235,113,250.00 Excavation 19,919,142,740.00 Embankment And Other Areas Of Filling Property Condition Survey Sub-Base And Base Course Sub-Base Course Aggregate Road Base Pavement Prime Coat Tack Coat Asphaltic Surface Treatment Asphalt Concrete Surfacing Portland Cement Concrete Pavement Structures Excavation, Backfill For Structures And Rubble Mound Pilling Static Load Testing Of Piles Pile Dyanamic Analysis Test

24 Culminative Project Highway Road Analysis 2,093,167,110.00 Concrete 2,334,668,039.00 Reinforcement Fabrication Of PC-T Girder 511,622,690.00 Fabrication & Transport Of Prestressed Precast Box 65,002,358.50 Girders 5,349,200,000.00 Erection Of Prestressed Precast Box Girders 44,426,333,159.50 Erection Of PC-T Girder Testing Of Beam Elastomeric Bearing Pad Drainage Pipe Culvert Ditches Channel Drop Structures Sub Surface Drains Gabions Geotextile Centermedian Drainage Incidentals Greenery Works Road Furniture Guardrail Fence Traffic Signs Road Markings Roadside Markers Delineators Concrete Curbs Cable Barries Facilities Lighting Facilities Utility Duct Day Works Labour Material Contractors Plant Provisional Sums Total

25 Culminative Project Highway Road Analysis 2.2.Overhead cost CKE OCH Total Overhead cost E.O.M.U- southern - - 27,392,571.55 2011 27,392,571.55 - - 301,288,388.83 2012 301,288,388.83 2013 380,543,409.42 33,967.59 - 380,577,377.01 2014 534,119,398.20 2015 522,331,858.22 199,944,482.71 15,122,946.90 749,186,827.81 2016 590,043,256.41 2017 602,199,880.36 218,221,673.23 41,956,275.33 782,509,806.78 2018 594,091,297.81 2019 565,893,384.27 236,959,518.38 107,646,632.90 934,649,407.69 2020 796,067,443.34 2021 286,896,124.22 234,154,059.59 140,576,341.26 976,930,281.21 255,359,468.54 207,105,620.45 1,056,556,386.80 255,658,932.45 193,475,160.45 1,015,027,477.17 271,779,951.54 230,085,594.04 1,297,932,988.92 725,133,521.26 116,606,245.36 1,128,635,890.84 Total Overhead cost 1,400,000,000.00 1,200,000,000.00 1,000,000,000.00 800,000,000.00 600,000,000.00 400,000,000.00 200,000,000.00 - 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

26 Culminative Project Highway Road Analysis 2.3 Total cost Overhead cost Total Cost Capital Year Expenditure 2011 44,426,333,159.50 27,392,571.55 44,453,725,731.05 2012 44,426,333,159.50 301,288,388.83 44,727,621,548.33 2013 44,426,333,159.50 380,577,377.01 44,806,910,536.51 2014 44,426,333,159.50 749,186,827.81 45,175,519,987.31 2015 44,426,333,159.50 782,509,806.78 45,208,842,966.28 2016 44,426,333,159.50 934,649,407.69 45,360,982,567.19 2017 44,426,333,159.50 976,930,281.21 45,403,263,440.71 2018 44,426,333,159.50 1,056,556,386.80 45,482,889,546.30 2019 44,426,333,159.50 1,015,027,477.17 45,441,360,636.67 2020 44,426,333,159.50 1,297,932,988.92 45,724,266,148.42 2021 44,426,333,159.50 1,128,635,890.84 45,554,969,050.34 Total cost 50,000,000,000.00 45,000,000,000.00 40,000,000,000.00 35,000,000,000.00 30,000,000,000.00 25,000,000,000.00 20,000,000,000.00 15,000,000,000.00 10,000,000,000.00 5,000,000,000.00 - 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Capital Expenditure Overhead cost Total Cost

27 Culminative Project Highway Road Analysis 2.3 Revenues. Revenues used are actual annual gross revenues provided by the RDA’s Expressway Maintenance Operation and Management Unit. The revenues were projected to increase in step with traffic growth. Year Revenue 2011 74,940,383.94 2012 907,039,866.06 2013 1,373,553,409.94 2014 3,607,062,708.05 2015 4,766,737,896.42 2016 6,292,863,021.76 2017 6,838,069,014.37 2018 7,624,853,372.96 2019 7,963,298,687.32 2020 6,778,545,900.83 2021 8,091,546,944.46 Revenue 9,000,000,000.00 8,000,000,000.00 7,000,000,000.00 6,000,000,000.00 5,000,000,000.00 4,000,000,000.00 3,000,000,000.00 2,000,000,000.00 1,000,000,000.00 - 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

28 Culminative Project Highway Road Analysis 2.4 Break even analysis using forecasted data Capital Overhead cost Total cost Revenue Year Expenditure 2011 44,426,333,159.50 27,392,571.55 44,453,725,731.05 74,940,383.94 2012 44,426,333,159.50 301,288,388.83 44,727,621,548.33 907,039,866.06 2013 44,426,333,159.50 380,577,377.01 44,806,910,536.51 1,373,553,409.94 2014 44,426,333,159.50 749,186,827.81 45,175,519,987.31 3,607,062,708.05 2015 44,426,333,159.50 782,509,806.78 45,208,842,966.28 4,766,737,896.42 2016 44,426,333,159.50 934,649,407.69 45,360,982,567.19 6,292,863,021.76 2017 44,426,333,159.50 976,930,281.21 45,403,263,440.71 6,838,069,014.37 2018 44,426,333,159.50 1,056,556,386.80 45,482,889,546.30 7,624,853,372.96 2019 44,426,333,159.50 1,015,027,477.17 45,441,360,636.67 7,963,298,687.32 2020 44,426,333,159.50 1,297,932,988.92 45,724,266,148.42 6,778,545,900.83 2021 44,426,333,159.50 1,128,635,890.84 45,554,969,050.34 8,091,546,944.46 2022 44,426,333,159.50 1,241,499,479.92 45,667,832,639.42 8,900,701,638.91 2023 44,426,333,159.50 1,365,649,427.92 45,791,982,587.42 9,790,771,802.80 2024 44,426,333,159.50 1,502,214,370.71 45,928,547,530.21 10,769,848,983.08 2025 44,426,333,159.50 1,652,435,807.78 46,078,768,967.28 11,846,833,881.38 2026 44,426,333,159.50 1,817,679,388.56 46,244,012,548.06 13,031,517,269.52 2027 44,426,333,159.50 1,999,447,327.41 46,425,780,486.91 14,334,668,996.47 2028 44,426,333,159.50 2,199,392,060.15 46,625,725,219.65 15,768,135,896.12 2029 44,426,333,159.50 2,419,331,266.17 46,845,664,425.67 17,344,949,485.73 2030 44,426,333,159.50 2,661,264,392.79 47,087,597,552.29 19,079,444,434.31 2031 44,426,333,159.50 2,927,390,832.06 47,353,723,991.56 20,987,388,877.74

29 Culminative Project Highway Road Analysis 2032 44,426,333,159.50 3,220,129,915.27 47,646,463,074.77 23,086,127,765.51 2033 44,426,333,159.50 3,542,142,906.80 47,968,476,066.30 25,394,740,542.06 2034 44,426,333,159.50 3,896,357,197.48 48,322,690,356.98 27,934,214,596.27 2035 44,426,333,159.50 4,285,992,917.23 48,712,326,076.73 30,727,636,055.90 2036 44,426,333,159.50 4,714,592,208.95 49,140,925,368.45 33,800,399,661.49 2037 44,426,333,159.50 5,186,051,429.84 49,612,384,589.34 37,180,439,627.64 2038 44,426,333,159.50 5,704,656,572.83 50,130,989,732.33 40,898,483,590.40 2039 44,426,333,159.50 6,275,122,230.11 50,701,455,389.61 44,988,331,949.44 2040 44,426,333,159.50 6,902,634,453.12 51,328,967,612.62 49,487,165,144.38 2041 44,426,333,159.50 7,592,897,898.43 52,019,231,057.93 54,435,881,658.82 2042 44,426,333,159.50 8,352,187,688.28 52,778,520,847.78 59,879,469,824.70 Forecasted data

30 Culminative Project Highway Road Analysis Break even analysis 70,000,000,000.00 60,000,000,000.00 50,000,000,000.00 40,000,000,000.00 30,000,000,000.00 20,000,000,000.00 10,000,000,000.00 - 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 Capital Expenditure Overhead cost Total cost Revenue 6. Overall result. • The project has been budgeted to 44,426,333,159.50 • It will take about more than 30 years to capital expenditure approximately. • The revenue is gradually increasing from 2011-2021.

31 Culminative Project Highway Road Analysis Acknowledgement This highway project was a great success due to the never-ending efforts and teamwork of the Secondary school of Steiner International school. We appreciate the services offered to us by all those who willingly and enthusiastically contributed into the research and help us gather the primary research information. For success of this project, we must thank executives of central bank, executives of Road Development Authority since it was helpful while we do secondary research and also the passengers, Ticketing officers who helped while we collect primary data sources. Special mention should be done on the advice, guidance and cooperation given to us by our Chairman, Dr. Lakmal Ranasinghe, Ms Owini Ranasighe , Our Deputy Principle Ms Kushani Wijethunga, our head of primary Ms Sonali Wjesinghe, head of national school Ms Sujani Wettasinghe and our teachers, Mrs. Ruklanthi Hansika and Mrs. Nadeesha Sumanaratne. Research team Students - Nilakshi Udani - Maneesha Withanage - Maryam Asif - Ashfah Ameer - Geena Hettiarachchi - Dulash Perukanda - Nirein De Silva - Adeesha Bandara - Binuka Fernando - Maneth Ekneligoda - Nohim Nawaratne Teachers in charge - Mrs. Ruklanthi Hansika - Mrs. Nadeesha Sumanaratne -

32 Culminative Project Highway Road Analysis .