Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date
PDS Updated as of 15 Sep 2014

Project Name Railway Sector Investment Program - Tranche 2
Country India
Project/Program Number 36330-033
Status Approved
Geographical Location
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector Transport
Subsector Rail transport (non-urban)
Strategic Agendas Inclusive economic growth (IEG)
Drivers of Change
Gender Equity and Mainstreaming Categories

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Loan3108Ordinary capital resources130,000
Counterpart 97,200
TOTAL US$ 227,200

Safeguard Categories

For more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories

Environment C
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Issues

Environmental Aspects
The second tranche involves solely the procurement of track components, i.e. rails and thick-web switches that will be installed on railway corridors being upgraded under the RSIP. According to the ADB s Safeguard Policy Statement (2009), the tranche is categorized as C for impacts on the environment, involuntary resettlement, and indigenous peoples. An assessment for impacts on the three components for all subprojects in the railway corridors upgraded under the RSIP has been conducted during processing of Tranche 1 of the MFF; the assessment includes the impacts from installation of the track components procured under Tranche 2. There are no environmentally sensitive features in the proposed investment. Hence, Tranche 1 has been categorized as B in accordance with ADB's SPS. Accordingly, initial environmental examinations (IEEs) were prepared for all five subprojects (4 doubling and 1 electrification projects) to assess the potential environment impacts and recommend appropriate mitigation measures. The report for Pune Guntakal electrification and Daund Gulbarga doubling has been combined. Hence, there are a total of four IEE reports. These reports include an environment management plan (EMP) and an environment monitoring plan (EMOP). An environmental assessment and review framework (EARF) has been prepared to guide the implementation of environment safeguard requirements for the investment program and subsequent tranches. If there will be any changes in project design or subprojects that will trigger new environmental issues during implementation, the EARF must be referred to for further actions on environment safeguards. The second tranche involves solely the procurement of rails and switches that will be installed on existing railway corridors. According to the ADB s SPS, the tranche is categorized as C for impacts on environment. The EMP is a plan for mitigating all anticipated environment impacts during project construction and operation. Specific mitigation measures with details on location, time and responsible agency for implementation is given in the EMP. Mitigation measures for implementation during the construction stage is implemented by the contractor and during operation stage by RVNL. Monitoring of the EMP implementation during construction is carried out by RVNL and the PMC with appropriate guidance and advice by the General Consultants (GC). Records on implementation of the mitigation measures on site will be maintained by the contractor in the form of checklists or EMP tables on a weekly basis. Based on these checklists and spot checks of at least once a month by the PMC and RVNL, monitoring reports will be compiled on a quarterly basis. These quarterly monitoring reports will further be compiled into an annual monitoring report to be submitted to ADB for disclosure on the ADB website. If there are any changes in the design or alignment, the EMP of the respective sub-project will be updated to account for any additional or new environmental impacts. All required clearances and permits such as forestry clearance and permit from the State Pollution Control Board (SPCB) for operation of hot mix plants must be obtained by the contractor before the implementation of the respective construction activity. All grievances and concerns, particularly related to the implementation of the RP, IPP, and EMP, will be acknowledged, responded, evaluated, and corrective actions taken immediately. All grievances shall be received, assessed, and resolved by the jurisdictional PIU within 30 days of receipt. In case the PIU is unable to resolve the issue, the matter will be forwarded to the social and environment unit at RNVL Headquarters for corrective action. All grievances will be recorded, decisions documented, and made accessible to the public. The outcome of the redress shall form part of the quarterly report to ADB.
Involuntary Resettlement
Under the first tranche, six resettlement plans (RPs) were prepared in accordance with ADB s Safeguard Policy Statement (2009) (SPS), Land Acquisition Act, 1894 (amended in 1984), and National Rehabilitation and Resettlement Policy (NRRP-2007). According to the project census, 3,945 persons will be affected by the project out of which 76 households are physically displaced and 344 households will be economically displaced. The total resettlement budget for the project is INR 135,033,578. The first tranche is categorized as A in accordance to ADB SPS. All grievances and concerns, particularly related to the implementation of the RP, IPP, and EMP, will be acknowledged, responded, evaluated, and corrective actions taken immediately. All grievances shall be received, assessed, and resolved by the jurisdictional PIU within 30 days of receipt. In case the PIU is unable to resolve the issue, the matter will be forwarded to the social and environment unit at RNVL Headquarters for corrective action. All grievances will be recorded, decisions documented, and made accessible to the public. The outcome of the redress shall form part of the quarterly report to ADB.
Indigenous Peoples
The second tranche involves solely the procurement of track components, i.e. rails and thick-web switches that will be installed on railway corridors being upgraded under the RSIP. According to the ADB s Safeguard Policy Statement (2009), the tranche is categorized as C for impacts on the environment, involuntary resettlement, and indigenous peoples. An assessment for impacts on the three components for all subprojects in the railway corridors upgraded under the RSIP has been conducted during processing of Tranche 1 of the MFF; the assessment includes the impacts from installation of the track components procured under Tranche 2. In case of any adverse impacts on indigenous people identified during planning, design or implementation of the subproject, the MOR and RVNL will ensure that the indigenous peoples plan (IPP) is prepared in accordance with the indigenous peoples planning framework (IPPF) and the ADB s SPS and the same is further approved by ADB before award of related civil works contract and implemented before commencement of the relevant section of the civil works contract as applicable. Any update of IPP during implementation shall follow requirements similar to the RPs as described for involuntary resettlement. All grievances and concerns, particularly related to the implementation of the RP, IPP, and EMP, will be acknowledged, responded, evaluated, and corrective actions taken immediately. All grievances shall be received, assessed, and resolved by the jurisdictional PIU within 30 days of receipt. In case the PIU is unable to resolve the issue, the matter will be forwarded to the social and environment unit at RNVL Headquarters for corrective action. All grievances will be recorded, decisions documented, and made accessible to the public. The outcome of the redress shall form part of the quarterly report to ADB.

Stakeholder Communication, Participation and Consultation

During Project Design
In the course of the social assessment, a series of participatory consultations were held with stakeholders and beneficiaries in various socioeconomic groups in the subproject areas, with 125 focus group discussions held at various locations. Groups of men, women, and indigenous people residing in the subproject areas were selected at random. Key stakeholder interviews were conducted with gram panchayat sarpanch (village or small-town head), anganwadi workers (those working at centers offering care for children and mothers), midwives, schoolteachers, farmers, traders, business people, and health workers. A total of 91 focus group discussions exclusively for women were also held. Informants articulated the perceived benefits from the investment program. They were positive about the need for the investment program, especially in terms of improved accessibility for villagers, and better amenities reaching households in the project districts. The MOR will organize further consultations with the stakeholders and beneficiaries within the subproject area to apprise them of economic development in the five states. The perceptions and priorities of the people will be taken into consideration when finalizing the subproject designs and preparing mitigation measures.
During Project Implementation
In the course of the social assessment, a series of participatory consultations were held with stakeholders and beneficiaries in various socioeconomic groups in the subproject areas, with 125 focus group discussions held at various locations. Groups of men, women, and indigenous people residing in the subproject areas were selected at random. Key stakeholder interviews were conducted with gram panchayat sarpanch (village or small-town head), anganwadi workers (those working at centers offering care for children and mothers), midwives, schoolteachers, farmers, traders, business people, and health workers. A total of 91 focus group discussions exclusively for women were also held. Informants articulated the perceived benefits from the investment program. They were positive about the need for the investment program, especially in terms of improved accessibility for villagers, and better amenities reaching households in the project districts. The MOR will organize further consultations with the stakeholders and beneficiaries within the subproject area to apprise them of economic development in the five states. The perceptions and priorities of the people will be taken into consideration when finalizing the subproject designs and preparing mitigation measures.

Description

Project Rationale and Linkage to Country/Regional Strategy

A framework financing agreement (FFA) for the Railway Sector Investment Program (RSIP) was signed on 31 August 2011 between India and the Asian Development Bank (ADB). The RSIP was approved on 18 October 2011 by ADB s Board of Directors as a multitranche financing facility (MFF) for $500 million equivalent from ADB s ordinary capital resources (OCR); the total project cost is estimated at $1,144.6 million equivalent. The availability period of the MFF is up to 30 June 2019 and the last PFR has to be submitted until 31 December 2017. The RSIP will increase the capacity of the existing rail network to handle traffic demand necessary to sustain the country's economic growth by (i) increase in and more efficient utilization of the physical rail infrastructure through electrification, doubling rail tracks on critical routes, (ii) increasing the efficiency of the existing infrastructure usage through the introduction of modern signaling systems, and (iii) improving operational and financial efficiency through institutional reform, especially on accounting reform in synchronization with the Government Accounting Standards Advisory Board (GASAB). This will (i) reduce fuel consumption and enhance energy efficiency, (ii) improve the environment and reduce pollution, (iii) enhance railway safety, enabling railway users to benefit from lower transport costs, (iv) increase line capacity, benefiting consumers, and producers of goods and services through the provision of timely and efficient transport services and lower logistics costs, and (v) improve staff productivity. The first tranche (Loan 2793) under the MFF was approved on 18 October 2011 for $150 million OCR to finance slices of investment subprojects and institutional development. The second PFR was received on 29 October 2013. The government requested for a loan of $130 million OCR to finance procurement of track components, i.e. rails and thick-web switches, which will be installed in the railway lines improved under the RSIP. The procurement of track components under Tranche 2 satisfies the selection criteria for projects to be funded under the MFF as set forth in Schedule 4 of the FFA . This PFR Report Tranche 2 summarizes the contents of the documents submitted together with the government s PFR and explains the steps followed to comply with tranche review, due diligence, and approval process.

Development Impact

Energy-efficient, safe, reliable, affordable and environment-friendly railway transport developed

Project Outcome

Description of Outcome
Improved railway transport capacity in the project rail routes
Progress Towards Outcome
--

Outputs and Implementation Progress

Description of Project Outputs
Track components delivered to construction sites for installation
Status of Implementation Progress (Outputs, Activities, and Issues)
- First contract for $100 million was awarded on 11 February 2014; second contract for $10 million was awarded on 24 March 2014; third contract is likely to be awarded within Q3 or Q4/2014. - Delivery of 60 kg rails started in Q3; delivery of 52 kg rails will commence after approval of yard plans from Zonal Railways.
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2014 Jan 17
Consulting Services
A firm of international consultants in association with national consultants supports the IA to implement the project by (i) preparing the monthly and quarterly reports as required for management of the project and reporting to ADB; (ii) monitoring the implementation of safeguards in accordance with ADB s Safeguard Policy Statement; (iii) scheduling the project implementation and establishing project schedules with milestones and critical path analysis based on international best practice; (iv) advise the IA on any potential issues and coordinate within the project or third parties as necessary; (v) provide proper monitoring of the funds available, fund flows within the project, disbursements of funds from the loan account, projections of future financial needs; and (vi) prepare the reports and documentation needed for the IA to submit the subsequent PFRs to ADB to secure funding of later tranches of the project. About 78 person-months of international consultants and 390 person-months of national consultants is required for this. The consulting firm has been engaged under Tranche 1 using the quality- and cost-based selection (QCBS) method (full technical proposal) with a quality:cost ratio of 80:20. The consulting firm will be partially funded from Tranche 2. RVNL will engage the project management consultants (PMC) by its own financing. PMC will support the IA for construction supervision as the Engineer.
Procurement
RVNL has adequate capacity and staff assigned to the PIUs to carry out procurement and to implement the project. The project management consultants for the investment subprojects were recruited by RVNL on time for project implementation, and the consultant act as the Engineer in the works contracts. A General Consultant was recruited by RVNL to further support the overall program implementation management and ADB s reporting requirements for the RSIP. RVNL has a chief vigilance officer to handle all grievances including those relating to procurement. The Central Vigilance Commission, through its Chief Technical Examiners Organization, conducts systematic analysis and monitoring for compliance with procurement procedures and rules as well as issues guidance and instructions to prevent any irregularities. The independent safety commissioner will undertake final technical audit before commissioning. Contracts financed by ADB will use procurement process and bidding documents that follow ADB s policies and include a policy statement on avoiding corrupt practices. The government will publish information relating to the investment program including business opportunities, and information on procurement of goods, works, and consulting services on RVNL and MOR websites. RVNL will also make available to ADB on request copies of internal audit reports. ADB s Anticorruption Policy (1998, as amended to date) was explained to and discussed with the government, MOR, and RVNL. The specific policy requirements and supplementary measures are described below. All procurement of goods and works will be undertaken in accordance with ADB s Procurement Guidelines. MOR and ADB have discussed procurement packages and procedures and understood that the proposed MFF does not involve national competitive bidding (NCB). The procurement plan should be updated whenever change in the procurement arrangements is required and agreed. An updated 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages is in Section C of the FAM (Procurement Plan). Procurement activities will be the responsibility of the RVNL Director, who will be supported by the staff and consultants. ADB will closely monitor all major project implementation activities. Under Tranche 2, contracts for goods will comprise 3 international competitive bidding (ICB) packages; amongst those, bidding for 2 contracts is completed. Contract packages for equipment under efficiency enhancement and CDM components will be based on required technical features and timing of procurement. Packages will be identified during implementation by consultants engaged under technical assistance for CDM and engaged for accounting reform, and by the general consultant. All contracts for civil works and goods will be procured in accordance with ADB s Procurement Guidelines. ADB s standard bidding documents will be used.
Procurement and Consulting Notices
http://www.adb.org/projects/36330-033/business-opportunities

Timetable

Concept Clearance
Fact-finding
Management Review Meeting 22 Nov 2013
Approval 06 Feb 2014
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Loan 3108 06 Feb 2014 17 Feb 2014 28 Mar 2014 30 Jun 2019

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
18 Sep 2014 Loan 3108 110,697 0 85.00%
Cumulative Disbursements
18 Sep 2014 Loan 3108 17,092 0 13.00%

Status of Covenants

Covenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.

Approval No. Category
Sector Social Financial Economic Others Safeguards Project Financial Statements
Loan 3108

Contacts and Update Details

Responsible ADB Officer Markus Roesner (mroesner@adb.org)
Responsible ADB Department South Asia Department
Responsible ADB Divisions Transport and Communications Division, SARD
Executing Agencies Ministry of Railways
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Links

Project Website http://www.adb.org/projects/36330-033/main
List of Project Documents http://www.adb.org/projects/36330-033/documents