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The newly opened Expressway from Mirigama to Kurunegala
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The Expressway from Mirigama to Kurunegala was opened to the public on 15 January. The construction of the Mirigama to Kurunegala road, the second sector of Kadawatha-Kurunegala highway commenced on 16 January 2017 by four local construction companies, expecting an investment of Rs. 160 billion. The highway has interchanges at Nakalagamuwa and Dambokka within the 39 km length. The project differs from earlier highway projects as total funding obtained from local banks.
The highway section is located within the Highway Minister’s own Kurunegala District and he had a major role to play during the entire project.
Kandy Expressway
Originally, the highway from Kadawatha to Kandy was planned as Kandy Expressway with a feasibility study by a Swedish consultancy company completed in December 2011. According to the report, the expressway would commence from Kadawatha interchange of Outer Circular Road and terminate at Katugastota. The selected corridor lies close to Ganemulla, Gampaha, Balubowa, Banduragoda, Mirigama and Ambepussa (Phase 1 – 48.2 km) and Devalagama, Rambukkana, Hatharaliydda, Hedeniya and Katugastota (Phase 2 – 50.7 km). In addition, a 12 km long ring-road around Kandy city was proposed from Katugastota to Gannoruwa.
Offer to investors
The proposed highway was offered to international investors in May 2011, to be built as a privately financed toll road on BOT (build, own & transfer) basis. The investor was expected to design the road over the pre-selected corridor, acquire land, pay compensation and construct related facilities. The design and construction would be under the supervision of a RDA approved consultant. The consultancy contract was awarded to the Australian consultant SMEC Engineering in December 2012.
Award of contract
In July 2012, Cabinet approved the award of the construction of the 100 km Kandy Expressway under Build Own Transfer (BOT) system to two Chinese companies, China Merchant Holdings and China Merchant Huajin Investment Company and a MOU was signed.
The first 45 km of the Expressway traverses a flat terrain, the next 15 km a rolling terrain and the balance 38 km hilly terrain and the route had been approved by the Central Environmental Authority in 2008. The second section of expressway is the inclusion of 10 tunnels, two around 400 m and eight of length between 30-225 m. The Chinese agreed to construct the Kadawatha-Ambepussa section for a 35-year BOT period and construction was expected to begin in August 2012. The Chinese indicated that Ambepussa – Kandy sector, would require a longer period.
Shifting to Enderamulla
In July 2012 villagers near Gampaha protested against their loss of property due to the highway, Minister Felix Perera agreed to relocate the route. The road commencement was shifted from Kadawatha to Enderamulla and joined the original route at Mirigama, increasing the distance by five kms. The amended route from Enderamulla continued via Ragama, Gampaha, Veyangoda to Mirigama with a sharp right turn to Ambepussa. The principle of avoiding built-up areas was adopted for the entire alignment.
The new route addressed villagers’ concerns, and also accommodated wishes of politicians. Enderamulla is surrounded by marshes and the amended route ran parallel to the railway line, traversing over paddy, marshy and uncultivated lands. Marshes on the diverted route necessitated nine km of viaducts (overhead road). Viaducts cost over six times the cost of a firm-ground road and the increased costs changed the financial viability of the project, and the Chinese investor was no longer interested.
Changes to Kandy route
In March 2013, President Mahinda Rajapaksa during a visit to Kandy reviewing progress noted problems in land acquisitions and directed the expressway be built through Kurunegala and Galagedara. This diversion pushed the highway nearly 20 km northwards increasing the highway length and the costs.
Rajapaksa had developed a soft corner for Kurunegala, as he wished to abandon Hambantota and decided to contest from Kurunegala district. His movement to Kurunegala was supported heavily by Johnston Fernando.
Northern Expressway
With the route change, the entire highway concept changed from Kandy Expressway to Northern Expressway, with a link to Kandy to be implemented in 4 stages.
The revised Northern Expre-ssway intended to connect Enderamulla with Pothuhera and continue to Katugastota and Gannoruwa. Under the revised Expressway, distance wise Enderamulla to Kandy became 120 km, whereas in the earlier proposal Kadawatha-Kandy was only 98.9 km.
Changes to Outer Circular Highway (OCH)
The last section of OCH from Kadawatha to Kerawalapitiya (9.63 km) had been awarded to Metallurgical Group Corporation of China (MCC) in January 2013 for Rs. 66.69 billion with a loan from Chinese Exim Bank. The OCH 3 is a four-lane highway, mostly elevated over the marshlands, but Kadawatha-Enderamulla sector expanded to six lanes to accommodate traffic leading to Kandy Expressway commencing from Enderamulla.
Earlier, Kadawatha to Meerigama with Ambepussa link 54 km was priced by the RDA at Rs. 70 billion. But shifting the commencement from Kadawatha to Enderamulla moved the highway into flood plains, resulting in the RDA revised the Enderamulla to Mirigama estimate to Rs. 100 billion. It was awarded to contractor MCC, at Rs. 129 billion.
Expressway under Yahapalanaya Government
The new Government appointed a three-minister committee to determine the future of the Kandy Expressway. The Committee recommended in March 2015 to bring back the commencement of the Expressway from Enderamulla to Kadawatha, also renaming it as the Central Expressway. The committee hoped the cost of OCH 3 could be reduced by approximately Rs. 24 billion (or 30%) by reducing the road from six lanes to two and the redundancy of the Enderamulla interchange. The Committee recommended that with the savings from OCR 3, Kadawatha to Kossinna (five km) sector could be built. The highway beyond Mirigama would remain unchanged.
Kadawatha-Mirigama sector
The contract was divided into two sectors: Kadawatha-Kossinna 5 km and Kossinna-Mirigama. The contract was offered to China Metallurgical Corporation. The first sector to be constructed from savings from OCH 3. The second sector 32.5 km long Kossinna to Mirigama was negotiated at Rs. 145.8 billion or Rs. 4.5 billion per km funded by a loan from China’s Exim Bank.
However, the savings from OCH 3 proved to be evasive, as the local engineers were completely inexperienced in negotiations with a shrewd international contractor.
Finally, the 37.5 km long Sector 1 commenced construction in September 2020, with the advance payment given to contractor Metallurgical Corporation of China, scheduled for completion in four years i.e. September 2024. The cost is estimated as Rs. 168.5 million, or Rs. 22.7 m higher.
Mirigama to Kurunegala sector
The road section from Mirigama to Kurunegala and branch to Ambepussa spanning 39.29 km, was sub-divided into four packages and local contractors were requested to submit bids, but avoiding competitive bidding. Naturally, bids received were 18% to 20% higher than the Engineer’s estimate of Rs. 126.8 billion, but was negotiated down to Rs. 136.8 billion. The Cabinet of Ministers approved the award in November 2016, with the cost per km at Rs. 3.49 billion.
Accommodating politicians’ wishes
In Sri Lanka most of our highway projects were manipulated by politicians, claiming the locals are against loss of their property due to acquisition to accommodate the highway. First such was the Katunayake Expressway.
Katunayake Expressway
Late President Premadasa wished to construct a four-lane dual-carriageway, connecting Kelani Bridge to the Free Trade Zone and Katunayake airport designed for 100 kmph traffic (same as today’s completed road). The road, 30 km in length, was estimated to cost Rs. 5,544 million or $ 110 million in 1991. The route was finalised, designs were completed, EIA was accepted and RDA was ready to commence acquisition of property for the expressway, when President Premadasa’s demise on May Day 1993 stopped all works.
During the campaign for 1994 Presidential elections, Chandrika Kumaratunga promised to abandon the land route requiring demolition of a large number of houses and shift the road over the Muthurajawela marshes. Kumaratunga won the elections and instructed the route to be moved. The route commenced from Peliyagoda and traversed over flood plain and marshy grounds.
The contract was awarded to the Daewoo-Keangnam joint venture from South Korea for Rs. 9,516 million in August 1999. The Koreans pumped a large volume of sea-sand to fill the road base. In November 2001, people of Uswetakeyyawa protested against off-shore sand dredging by the contractor, but the protest was suppressed by the Police who opened fire, killing three persons and seriously injuring two. The contractor abandoned the project.
The road foundation needed 4.7 million cu.m of sea-sand and the contractor had already dredged 1.5 million cu.m piled at Kerawalapitiya. In settlement, the contractor was paid Rs. 2,794 million, land acquisition and others reached Rs. 2,650 million, making the total expenditure as Rs. 5,444 million.
The long-delayed project was awarded to China Metallurgical Construction Group Corporation (MCC), costing $ 292.4 million, with a $ 252 million loan from China. When the 25.6 km highway was completed in November 2011, the costs had reached $ 310 m (Rs. 35,600 m). The failed Korean contractor’s work cost Rs. 5,444 million, total costs reaching Rs. 50,444 million, almost a 10-fold increase.
Above shows the escalated costs when country’s leaders take politically motivated decisions putting aside lower cost designs proposed by the engineers. But after Katunayake highway, politicians have not learnt and the misery continues.
Kandy Expressway
When the Kandy Expressway was proposed two Chinese Companies agreed to construct the 100 Km highway at their own costs and recover expenses from toll charges. But when the public protested against acquisition of their property, the route was moved to Enderamulla massively increasing costs and the Chinese withdrew their offer. If the Chinese were allowed in July 2012, by 2015 the first section to Ambepussa would have been completed by 2017 and to Kandy by 2020 without any cost to the country.
Modifications to Northern Expressway
After the Chinese offer the entire highway system was modified from the lowest cost highway to a least disruption to public property. The Gampaha district is rolling terrain, Kurunegala is mostly coconut estates with a low population density. But RDA engineers were instructed by the President to move the entire highway away from public residential areas and were moved over the paddy fields and marshes.
Construction as politician’s wishes
When the route is changed over to paddy fields and marshes, the road over marshy grounds are constructed on concrete pillars on piles. Paddy fields need to be stabilised with quarry dust or ABC (stone and quarry-dust mix). Thereafter the base needs to be filled with selected fill as laterite. When the highway crosses existing local by-roads, the earth-fill needs to be over 5 m high to allow bridges over the minor roads, thus making massive road fillings. In addition, fill material needs to be collected from far-away disturbing existing lands. A good example is the current sector to be opened Meerigama-Kurunegala, where TV footage in the RDA website shows details.
Meerigama-Kurunegala sector
The 39 km long Meerigama-Kurunegala sector consists of 12 large bridges and 130 culverts. Along the four-lane road, nearly 11 km of the road (over one fourth) is built on concrete pillars.
It was claimed that the highway was designed considering public ideas to be environmentally friendly and avoid flooding. But nearly five months ago with heavy rains TV news showed large numbers of houses far away from the highway went under water with blocked water due to raised roads.
Highway costs
The newly constructed 39 km long Mirigama to Kurunegala highway, awarded in January 2017 and built by four local contractors with loans obtained from local banks were expected to cost Rs. 160 billion. But when the final bills arrive from contractors it would result in at least 10% increase, pushing the final figure to over Rs. 175 billion. Thus, the cost of KM of highway exceeds Rs. 4.5 billion per km.
The highway construction over firm grounds, generally coconut lands, also with housing, would need compensation payment. If Rs. 1 billion was allocated for a km of land compensation and housing, would allow Rs. 10 million for a 10-metre stretch, a highly excessive amount. Allocating Rs. 10 million for a 50-metre stretch would be reasonable but still high, would require only Rs. 200 million per km, would allow individual houses or apartments near towns as preferred.
In 2013, RDA estimate for 54 km Kadawatha to Meerigama with Ambepussa link on high grounds was only Rs. 70 billion or Rs. 1.3 billion per km. Allowing for price escalations would not exceed Rs. 2 billion per km. So, how can anyone justify Rs. 4.5 billion per km?
Politicians’ responsibility
Above shows how highway costs were raised nearly three times over a well-designed road over firm ground. But when a new highway route is planned over a long period is announced, our people protest at every turn and politicians to become popular agree for relocation and the highway is moved over to paddy fields and marshes.
Politicians need to explain to the public the national importance of the project and the need for the least cost. For persons affected by loss of housing or land, proper compensation or alternate housing should be provided promptly.
Delays in Kadawatha-Meerigama sector
Although the Meerigama-Kurunegala road is open to the public, the important connecting sector to other highways via Kadawatha to Meerigama would be opened earliest by September 2024, provided no further issues. The delays were due to:
1. When the Chinese contractors were ready to construct Kadawatha-Kandy highway without any cost to the government, Mahinda Rajapaksa instructed the shifting of the road to allow additional traffic from Kadawatha to Enderamulla as demanded by local politicians.
2. The shifting needed widening of OCR Kaduwela to Enderamulla as six lanes for accommodating additional traffic from Kadawatha.
3. When the Yahapalanaya Government shifted the road commencement back to Kaduwela, the contractor had already partly commenced work for a six-lane road, thus the savings were minimal.
4. These savings were expected to be used for the 5 km long Kadawatha-Kossinna section. Although the contract was awarded, the delay in finalising savings and finding additional finances for construction delayed the project, resulting in increases in costs.
Finally, if the Kadawatha-Meerigama sector was constructed on high grounds paying for loss of lands and housing, the road would have been opened to the public many years ago at around one fourth the current cost.
Return on investment from road development
Any investment needs a pay-back for the country to survive, allowing the investments made mostly with loans to be paid back. But have the road sector improvements achieved the objectives? Katunayake and Southern expressways are extremely popular with commuters, allowing travel within a fraction of earlier time. The toll collection from highways allows payment of loans taken but slowly.
In addition, the MR government undertook massive upgrading of intercity roads with widening and asphalting. In addition, rural roads were asphalted to the extent, roads without asphalt are difficult to find. Road users are happy, but how about the savings to the economy to pay-back loans obtained for upgrading? Economists complain the two massive loan instalments expected to be paid during 2022 were obtained in 2013 for road improvements.
As shown above, most highways currently under construction were modified to accommodate political requirements; otherwise, they could have been constructed at nearly one-third the cost. Thus, it is clear that the politically involved road developments have contributed heavily to the current financial mess.
Highway costs were raised nearly three times over a welldesigned road over firm ground. But when a new highway route is planned over a long period is announced, our people protest at every turn and politicians to become popular agree for relocation and the highway is moved over to paddy fields and marshes. Politicians need to explain to the public the national importance of the project and the need for the least cost. For persons affected by loss of housing or land, proper compensation or alternate housing should be provided promptly.