The Government and the World Bank signed a loan agreement for $69.33 million for the Kandy Multimodal Transport Terminal Development Project, which will develop the Good Shed terminal in Kandy. Located at the city centre and providing access to the railway station, the modernised terminal will integrate rail, bus, three-wheeler, and pedestrian traffic to make it safer and more efficient.
Secretary to the Ministry of Finance, Sajith Attygalle and World Bank Country Director for the Maldives, Nepal and Sri Lanka, Faris H. Hadad-Zervos signed the agreement.
The project will be implemented by the Ministry of Urban Development and Housing. The total project cost is $69.33, with $64.33 million through an International Development Association (IDA) concessional credit with a maturity of 30 years and a five-year grace period. The remaining $5 million will be provided through an IDA non-concessional credit with a maturity of 10 years and a five-year grace period.
“Kandy will benefit significantly from a well-planned urban transport network that enhances accessibility to and from the city, efficient mobility within the city region, and its attractiveness as a tourist destination,” said Hadad-Zervos.
“The project is also critical for the city’s post-Covid economic recovery because it will create many short-term employment opportunities and address pandemic-risk in the design and modernisation,” he said.
“This project is part of comprehensive transport planning and improvements currently underway in the Kandy city region,” said Senior Transport Specialist and Task Team Leader of the project, Winnie Wang. “It will lead to less congestion in the city center, safer and faster commutes for public transport and non-motorized transport users, and greater accessibility to markets, employment, schools, and healthcare facilities.”
The Central Province contributes 11.5 percent to the country’s GDP, second only to the Western Province.
On a weekday, nearly 389,000 commuters come into the city by bus or rail for education, employment and tourism-related purposes. Traffic congestion and transport safety hinders the city’s development potential and Kandy accounts for a high rate of road accidents.
The Good Shed terminal lacks the critical infrastructure — such as adequately planned bus bays, parking areas for buses, waiting and queuing areas for passengers, adequate sanitation facilities, and centralised ticket and information counters — needed to accommodate the high volume of bus and passenger traffic.