The project will improve about 1600 km of major district roads in the state of Madhya Pradesh, in line with the state's road development plan for 2013-2033. It will involve upgrading major district roads to intermediate lane-width of 5.5 m, or two lane-width of 7 m, depending on traffic requirements, reconstruction, widening and strengthening culverts and bridges, and maintaining the improved road assets for a period of five years after construction.
Modality. The project is prepared as a sector loan, which is particularly well suited for the financial assistance for the following reasons: (i) the project pertains to a number of MDRs distributed across the state; (ii) the state has a sector development plan in place (Development Plan for State Roads in Madhya Pradesh 2013-2033); (iii) the state has the requisite institutional capacity to prepare and implement the sector plan and to prepare the individual road packages. Key to this capacity is the MPRDC, which was set up under an ADB TA. MPRDC was incorporated in 2004, and designated as a highway authority' under the state's highway legislation to develop state highways, major district roads, and other infrastructure. MPRDC is an empowered organization, with the Chief Minister of Madhya Pradesh being the Chairperson of the Board, and the Minister for Madhya Pradesh Public Works Department (MPPWD) and the Chief Secretary of the state being Vice Chairpersons. MPRDC has developed a strong managerial and technical team, headed by its Managing Director, who is a senior official. MPRDC has substantive experience from prior ADB loans in project design and implementation.
Sample Roads. Under the sector lending modality, four sample subprojects have been prepared, which are (i) Chitrangi Kasar road, (ii) Dabra Bhitarwar Harsi road, (iii) Mahua Chuawahi road, and (iv) Ujjain Maksi road. These four roads aggregate to about 188 km, about 11% of proposed road length under the project, for which the project cost is assessed as about $77 million. The non-sample roads will be selected and approved in line with the criteria and process outlined in the project administration manual (PAM).
Sustainable Maintenance. To ensure better construction quality and also better maintenance of the road assets after construction, the project will also include a 5-year, performance based maintenance period adjunct to the construction contract. This will transfer a modicum of construction quality risk and maintenance risk to the private sector, and garner better value for money to the users. While this is being done on national and state highway projects in the country, this may be the first system-wide attempt for MDRs in a state.
Road Safety and Accident Response. Previous ADB loans have supported MPRDC's endeavor for improving road safety and designing an accident response system. MPRDC is already in the process of implementing a geographical information-based, information technology-enabled accident response system in the state. To make the system amenable to the first-response financial exigencies of accident victims, MPRDC is also proposing to link insurance funds to the accident response system, which is amongst the first such initiative in the country. MDRs being improved under this project will also be covered under the accident response system and insurance fund structure being developed by MPRDC.
The impact of the project will be improved road transport connectivity in the state of Madhya Pradesh. The outcome of the project will be improved road transport efficiency in Madhya Pradesh. The project outputs will be: (i) reconstructed and rehabilitated major district roads, to all weather standards, and designed for road safety; and (ii) improved road maintenance and asset management. About 1,600 km of MDRs will be reconstructed and rehabilitated to intermediate lane-width of 5.5 m, or two lane-width of 7 m, depending on traffic requirements. The roads will be designed for road safety. The contracts will include 5 year performance based maintenance obligations. MDRs under the project will be integrated into the accident response system being developed by MPRDC.
The project is estimated to cost $500 million. The Government has requested a loan of $350,000,000 from ADB's ordinary capital resources to help finance the project, which is 70% of the project cost.
The executing agency for the project will be GOMP acting through MPRDC. MPRDC will implement the project through its field offices at key locations, which will be responsible for day-to-day project implementation and management and will assign staff to work on the project. One or two full-time project managers will be assigned for each contract package. The project managers will be delegated adequate technical and administrative authority for expeditious project implementation. MPRDC will engage construction supervision consultants as the engineers for the construction contracts. All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (March 2013, as amended from time to time). All consultants will be recruited according to ADB's Guidelines on the Use of Consultants (March 2013, as amended from time to time). ADB approved advance contracting of civil works in December 2013.