India: Rural Connectivity Investment Program - Tranche 1

Sovereign Project | 40423-023

Summary

The components proposed for financing under the requested PFR include Road Connectivity and Capacity Building.

A. Road Connectivity component

This comprises construction of rural roads that are part of the PMGSY to provide connectivity to all habitations of population of 500 persons (250 or more in hilly or desert areas, or scheduled tribe areas) or more with all weather roads. Subprojects covering about 3,461 km in total (342 km in Assam, 1,008 km in Chhattisgarh, 1,187 km in Madhya Pradesh, 757 km in Odisha, and 167 km in West Bengal) are proposed to be taken up in the 1st PFR.

B. Capacity Building component

Latest Project Documents

Consulting Notices

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Procurement Notices

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Procurement Documents

Title Document Date
Rural Connectivity Investment Program Oct 2013

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Project Name Rural Connectivity Investment Program - Tranche 1
Project Number 40423-023
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2881-IND: Rural Connectivity Investment Program - Tranche 1
Ordinary capital resources US$ 252.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector Transport - Road transport (non-urban) - Transport policies and institutional development
Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The components proposed for financing under the requested PFR include Road Connectivity and Capacity Building.

A. Road Connectivity component

This comprises construction of rural roads that are part of the PMGSY to provide connectivity to all habitations of population of 500 persons (250 or more in hilly or desert areas, or scheduled tribe areas) or more with all weather roads. Subprojects covering about 3,461 km in total (342 km in Assam, 1,008 km in Chhattisgarh, 1,187 km in Madhya Pradesh, 757 km in Odisha, and 167 km in West Bengal) are proposed to be taken up in the 1st PFR.

B. Capacity Building component

This component will include (i) support to the establishment of Rural Connectivity Training and Research Centers (RCTRCs); (ii) support to the establishing of Rural Road Network Management Units (RRNMUs) in each participating state; (iii) assistance to the MORD/NRRDA and state governments in implementation of the additional policy, and administrative requirements inherent to ADB-assisted projects; and (iv) additional support in operation, monitoring, evaluation and risk management.

One RCTRC and one pilot RRNMU will be established in each state under PFR 1. The support will include construction of modern field offices, including laboratories and providing all necessary state-of-the art equipment, system and tools. Support to RCTRCs will also include consulting services to assist staff in rolling out systematic and large scale training in participating states and support RCTRCs in research and compiling best practices and experiences in rural roads.

Assistance to the MORD/NRRDA and state governments to comply with administrative requirements inherent to ADB-assisted projects, and additional support in operation, monitoring, evaluation and risk management will be provided through the engagement of a Project Implementation Consultant (PIC) engaged and financed by the Government of India, and Technical Support Consultant (TSC) engaged by NRRDA and financed by ADB.

Project Rationale and Linkage to Country/Regional Strategy

ADB's country partnership strategy (CPS) for India is closely aligned with the priorities of India's Eleventh Five Year Plan, 2007 2012. The CPS reconfirms continuing ADB assistance for development of rural roads, which are critical for rural development as they provide access to markets, health, education, and administrative services. Absence of all-weather road connectivity is a serious problem, making rural communities inaccessible for up to 90 days a year. Poor road infrastructure affects economic growth in rural areas, agricultural productivity, and employment, and has a strong link to poverty. The Government of India is addressing this problem through implementation of a nationwide rural road investment program the Prime Minister's Rural Roads Program (PMGSY) aimed at providing all-weather road connectivity to currently unconnected eligible habitations in India's rural areas. The investment program will support the government's objectives under the PMGSY.

The PMGSY identified the investment program states among the 10 states with large rural populations that lack adequate coverage in terms of all-weather road connectivity. The poverty head count rates in these states are among the highest in India. The PMGSY started in 2000 and has thus far constructed 108,637 km of rural roads in the investment program states, connecting 39,721 habitations to a greater transportation network. Construction of an additional 32,158 km of roads is ongoing. According to the June 2011 program update, 85,690 km of roads to connect all remaining eligible habitations in the investment program states are yet to be constructed under the PMGSY.

The latest estimate for the remaining PMGSY financing requirement to achieve its goal by 2016 in the investment program states is about $7.95 billion, while available PMGSY funding for the same period is estimated to be around $5.04 billion. While exploring the possibilities for domestic borrowing to close the financial gap, the government has approached ADB to provide funding of $0.8 billion under the investment program to assist with the implementation of the PMGSY in the investment program states. The investment program is consistent with the strategic objective set out in the CPS, 2009 2012 and is included in ADB's country operations business plan, 2011 2013.

Apart from the need to provide all-weather road connectivity in India's rural areas, the investment program states need support in improving business procedures covering the whole life cycle of rural roads, and strengthening related capacities. Specifically, while the emphasis is shifting from construction to the operation and maintenance of the rural road network, the related capacities for rural road network management are lagging. There is also a mismatch between the extent of the rural road network (around 80% of the total road network) and supply of skills, as the training of civil engineers, technicians, and site supervisors is oriented towards high-category roads.

Impact Connectivity of selected rural communities in five RCIP states to markets, district headquarters, and other centers of economic activity is improved and sustainable
Project Outcome
Description of Outcome Connectivity of selected communities in five RCIP states prioritized by PMGSY for 2012 sanction is improved and sustainable
Progress Toward Outcome

About 428 habitations connected as follows:

Assam 11

Chhattisgarh 198

Madhya Pradesh 76

Odisha 74

West Bengal - 69

Implementation Progress
Description of Project Outputs

1. Selected priority rural roads prioritized by PMGSY for 2012 sanction are constructed to all-weather standard

2. Quality of design of RCIP roads is improved

3. Maintenance of RCIP roads is improved and sustainable

4. Road safety measures are incorporated into the lifecycle of RCIP roads

5. Qualification and skills of PMGSY engineers, technicians, site supervisors, concerned staff of PRI, design consultants and contractors in RCIP states is improved and maintained

6. Effective project management provided

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

1,690 km (48.5%) length of roads constructed:

Assam 159.92 km

Chhattisgarh 507.63 km

Madhya Pradesh 627 km

Odisha 294 km

West Bengal 101.km

Fully complied with.

Fully complied with.

Barring West Bengal and MP all states have bidded out packages and evaluation are ongoing; WB and MP to bid out packages in February.

Fully complied with.

Fully complied with.

Not yet due.

Bid documents for RRNMUs finalized and approved by ADB. To be bid out shortly

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Project 1 is classified category B in accordance with ADB s Safeguard Policy Statement (2009). In line with the environmental assessment and review framework (EARF), state initial environmental examinations (IEEs) of all road subprojects have been prepared and are disclosed on the ADB website. Pursuant to provisions of the EARF, environmental assessment of non-road subprojects will be conducted during implementation of the MFF. The IEEs rate the scale of environment impacts from the physical interventions of Project 1 as minor. Mitigation measures for all impacts have been developed and integrated into construction works through incorporation of a standard environmental management plan (EMP) in the bidding documents and provision of road-specific EMPs with the detailed project reports. Assessment of institutional capacities and arrangements confirmed that they are satisfactory to effectively implement the requirements of the EARF, IEEs, and EMPs.
Involuntary Resettlement The construction of rural roads will be carried out mostly within existing rights-of-way, with widening and minor realignments in some cases, which will require narrow strips of land to be made available. In such cases, the voluntary land donation system will be used. The system has been widely used under the PMGSY and other rural development schemes across India and proved its effectiveness. Specific procedural requirements involving comprehensive consultations with the communities are provided in the state specific CPFs, which are disclosed on the ADB website. Transect walks conducted in the preparation of project 1 have confirmed the effectiveness of the adopted community consultation and social impact mitigation process. Assessment of institutional capacities and arrangements confirmed that they are satisfactory to effectively implement the requirements of the CPFs.
Indigenous Peoples The social assessment identified the presence of scheduled tribes in all investment program states. However, these groups are largely assimilated into the local population. The investment program will not have any differential impact on scheduled tribes: they will receive similar benefits from the investment program to those received by nonscheduled tribe households, and the impact on tribal and cultural identity will not be significant. All outputs will be delivered in a culturally appropriate and participatory manner. To further mitigate the risks, the CPFs identify special provisions for all scheduled tribe households, ensuring that their living standards are not adversely affected as a result of land donation or in the event of any loss of non-land asset and impacts on their livelihoods.
Stakeholder Communication, Participation, and Consultation
During Project Design tbd
During Project Implementation tbd
Business Opportunities
Consulting Services

Consultant to support the RCTRC rollout will be engaged using international recruitment.

The services of the national Technical Support Consultant (TSC) will be financed from the loan proceeds under Loan 2535-IND and Loan 2651-IND. TSC has already been engaged by MORD (through NRRDA). TSC will continue providing technical support to the MORD/NRRDA and state governments under the same contract up to May 2014. New TSC will be engaged using national recruitment under tranche 1 of the Investment Program.

In addition to above, the services of domestic consultants financed from Borrower's own resources (PIC) will be utilized.

Procurement Civil Works will be procured using national competitive bidding procedure. The Standard PMGSY Bidding Document and procedure developed by NRRDA for procurement of civil works based on item rates, amended as needed and agreed with ADB, will be used for all national competitive bidding (NCB) contracts for construction of roads under the loan. New bidding documents will be developed for the procurement of civil works (NCB) and goods (ICB, NCB and shopping) for the procurement of civil works and equipment for RCTRCs and RRNMUs. Consultant to support the RCTRC rollout will be engaged using international recruitment.
Responsible ADB Officer Ashok Srivastava
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
Ministry of Rural DevelopmentKrishi Bhawan
New Delhi 110001
India
Timetable
Concept Clearance 01 Jan 2011
Fact Finding 06 Dec 2011 to 19 Dec 2011
MRM 20 Mar 2012
Approval 22 Aug 2012
Last Review Mission -
Last PDS Update 18 Mar 2015

Loan 2881-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Aug 2012 02 Apr 2013 05 Jun 2013 31 Dec 2015 31 Dec 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 341.00 Cumulative Contract Awards
ADB 252.00 22 Aug 2012 250.00 0.00 99%
Counterpart 89.00 Cumulative Disbursements
Cofinancing 0.00 22 Aug 2012 134.09 0.00 53%

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Rural Connectivity Investment Program: RCTRC and RRNMU Buildings in Assam, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal under Project 1 and Project 3 Safeguards Due Diligence Reports May 2015
Rural Connectivity Investment Program - Project 3: Due Diligence of Ongoing Projects in Assam, Chhattisgarh, Madhya Pradesh, Odisha, and West Bengal under Project 1 and Project 2 Safeguards Due Diligence Reports Apr 2015
Rural Connectivity Investment Program - Tranche 1: Environmental Monitoring Report Environmental Monitoring Reports Mar 2015
MFF - Rural Connectivity Investment Program (Tranche 1): West Bengal State Subproject Roads Initial Environmental Examination Feb 2012
MFF - Rural Connectivity Investment Program (Tranche 1): Assam Subproject Initial Environmental Examination Feb 2012
MFF - Rural Connectivity Investment Program (Tranche 1): Social Safeguards Compliance Report for State of Assam Social Compliance Audit Report Feb 2012
MFF - Rural Connectivity Investment Program (Tranche 1): Madhya Pradesh Subproject Roads Initial Environmental Examination Feb 2012
MFF - Rural Connectivity Investment Program (Tranche 1): Social Safeguards Compliance Report for State of Chhattisgarh Social Compliance Audit Report Feb 2012
MFF - Rural Connectivity Investment Program (Tranche 1): Chhattisgarh Subproject Roads Initial Environmental Examination Feb 2012
MFF - Rural Connectivity Investment Program (Tranche 1): Social Safeguards Compliance Report for State of Orissa Social Compliance Audit Report Feb 2012
MFF - Rural Connectivity Investment Program (Tranche 1): Orissa Subproject Roads Initial Environmental Examination Feb 2012
MFF - Rural Connectivity Investment Program (Tranche 1): Social Safeguards Compliance Report for State of West Bengal Social Compliance Audit Report Feb 2012

Evaluation Documents

See also: Independent Evaluation

No documents found.


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