India: National Highway Corridor (Sector) I Project (Supplementary Loan)

Sovereign Project | 34420-023

Summary

The original loan of $400 million for the National Highway Corridor (Sector) I Project was approved by ADB in December 2003. The scope of the Project consists of: (i) Highway Investment Component : widening and upgrading of 595 km of national highway stretch along east west corridor from Chittorgarh -Orai, passing throgh Rajasthan, MP and UP; (ii) Private Sector Participation Component: widening and upgrading of 62 km national highway section from Orai-Bara through private sector participation (PSP); (iii) Road Safety Component; and (iv) HIV/AIDS and Human Trafficking Awareness Component.

The Project experienced substantial cost overruns mainly due to underestimation of cost of noncore subprojects, price escalation of construction materials and the financing gap caused by the local currency appreciation.

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Project Name National Highway Corridor (Sector) I Project (Supplementary Loan)
Project Number 34420-023
Country India
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2527-IND: National Highway Corridor (Sector) I Project (Supplementary Loan)
Ordinary capital resources US$ 100.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Transport - Road transport (non-urban)
Gender Equity and Mainstreaming
Description

The original loan of $400 million for the National Highway Corridor (Sector) I Project was approved by ADB in December 2003. The scope of the Project consists of: (i) Highway Investment Component : widening and upgrading of 595 km of national highway stretch along east west corridor from Chittorgarh -Orai, passing throgh Rajasthan, MP and UP; (ii) Private Sector Participation Component: widening and upgrading of 62 km national highway section from Orai-Bara through private sector participation (PSP); (iii) Road Safety Component; and (iv) HIV/AIDS and Human Trafficking Awareness Component.

The Project experienced substantial cost overruns mainly due to underestimation of cost of noncore subprojects, price escalation of construction materials and the financing gap caused by the local currency appreciation.

The supplementary loan of $100 million was approved on 30 June 2009 to ensure completion of the Project by addressing: (i) constraints impeding the project implementation and undertaking remedial measures to resolve them; and (ii) the issue of cost overrun in civil works.

Project Rationale and Linkage to Country/Regional Strategy ADB has pursued a programmatic approach to realize medium-to long-term goals to assist the Government in its efforts to upgrade the National Highway Development Program (NHDP) to rehabilitate three key arterial corridors. The Project is part of country strategy and program for India.
Impact Improved mobility of people and goods to contribute to the economic growth of the states connected by the Project corridor
Project Outcome
Description of Outcome Improved road transport services and safety along the project corridor
Progress Toward Outcome The travel time and vehicle operating cost has reduced significantly on completed highway corridor. The full benefits of the project would be realized upon project completion.
Implementation Progress
Description of Project Outputs

1.Stretches between Chittorgarh and Orai are widened into four-lane roads.

2.10% of the project corridor is developed through a build operate-transfer concession.

3.A road safety zone concept is implemented.

4.Campaigns to help prevent the spread of HIV and increase awareness of the risk of trafficking in women and children are conducted.

Status of Implementation Progress (Outputs, Activities, and Issues)

(i) Highway Investment Component:

Out of 12 contracts awarded for 4 laning of 595 km National Highway on the north-south corridor, 11 contracts have been completed and remaining 1 contracts in Uttar Pradesh is expected to be substantially completed by December 2011

(ii) PSP component:

Construction work on Bara-Orai section (62 km) (on BOT basis) commenced in October 2006. The physical progress of civil works as of February 2011 is 94%, and the completion is anticipated by December 2011.

(iii) HIV/AIDS and anti-trafficking component:

NHAI engaged NGOs to conduct HIV/AIDS and human trafficking awareness program. Also, civil works contracts incorporated a provision requiring contractors to carry out HIV/AIDS awareness and prevention programs for their workers. The NGOs and the contractors have conducted these activities.

(iv) Road safety component:

NHAI had identified the Jhansi-Orai section in Uttar Pradesh as a pilot section for the implementation of 'road safety zone' concept. The consultants for developing and designing the road safety component have been engaged in April 11.

Geographical Location Uttar Pradesh, Madhya Pradesh, Rajasthan
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The implementation of environmental management plans have been monitored by supervision consultants and NHAI has been submitting environmental monitoring reports.
Involuntary Resettlement The resettlement activities have been undertaken in accordance with the resettlement plans and have nearly been completed.
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The stakeholders including local governments and communities have been consulted during design stage.
During Project Implementation The stakeholders including local governments and communities have been consulted during implementation stage.
Business Opportunities
Consulting Services Consultants for construction supervision and road safety zone implementation have been recruited in accordance with ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB.
Procurement Procurement under the Project has been carried out in accordance with ADB's Guidelines for Procurement and the Government's tender procedures acceptable to ADB. 12 civil works contracts have been procured under international competitive bidding (ICB).
Responsible ADB Officer Anil Kumar Motwani
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
National Highways Authority of IndiaMr. J.K. BansalJhansi (Uttar Pradesh)
Timetable
Concept Clearance 20 Feb 2009
Fact Finding 12 Feb 2009 to 26 Feb 2009
MRM 27 Mar 2009
Approval 30 Jun 2009
Last Review Mission -
PDS Creation Date 03 Mar 2009
Last PDS Update 24 May 2011

Loan 2527-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Jun 2009 04 Aug 2009 15 Sep 2009 31 Dec 2011 - 09 May 2012
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 338.80 Cumulative Contract Awards
ADB 100.00 30 Jun 2009 100.00 0.00 100%
Counterpart 238.80 Cumulative Disbursements
Cofinancing 0.00 30 Jun 2009 100.00 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory - - Satisfactory

Evaluation Documents

See also: Independent Evaluation

No documents found.


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