Common use of Outcome Targets Clause in Contracts

Outcome Targets. (1) Evaluation Indicators (Operation and Effect Indicators) Indicators Target (2014, 2 years after project completion) Average traffic volume per day over 42,186 one year (vehicles/day) Reduction of travel time (million 2,519 rupees/year) Saving of transportation costs 2,797 (million rupees/year) Reduction of traffic accidents 131 (million rupees/year) Targets are set assuming the construction of the southern section (Kaduwela-Kottawa). (2) Number of Beneficiaries 433,080 people (3) Internal Rate of Return (IRR) (Economic Internal Rate of Return (EIRR)) Based on the following assumptions, this project’s Economic Internal Rate of Return (EIRR) is set at 13.0%. Economic Internal Rate of Return (EIRR) Costs: Project costs (excluding costs of land acquisition, tax), operation and maintenance costs Benefits: Saving of travel costs, saving of travel time, reduction in traffic accidents Project Life: 15 years

Outcome Targets. (1) Evaluation Indicators (Operation and Effect Indicators) Indicators Average traffic volume per day over one year (vehicles/day) Sections (between interchanges) Target (20142013, 2 years after project completion) Average traffic volume per day over 42,186 one year (vehicles/day) Reduction of travel time (million 2,519 rupees/year) Saving of transportation costs 2,797 (million rupees/year) Reduction of traffic accidents 131 (million rupees/year) Targets are set assuming the construction of the southern section (KaduwelaKottawa-Kottawa). Kahatuduwa 27,279Kahatuduwa-Gelanigama 34,294 Gelanigama-Dodangoda 21,925 Dodangoda-Welipenna 8,387 Welipenna-Kurundugahahetekma 7,922 (2) Number of Beneficiaries 433,080 Approximately 540,000 people (3) Internal Rate of Return (IRR) (Economic Internal Rate of Return (EIRREIRR)/Financial Internal Rate of Return (FIRR)) Based on the following assumptions, this project’s Economic Internal Rate of Return (EIRR) is set at 13.013.3%. Economic Internal Rate of Return (EIRR) Costs: Project costs (excluding costs of land acquisition, tax), operation and maintenance costs Benefits: Saving of travel costs, saving of travel time, reduction in traffic accidents Project Life: 15 20 years