Project Name Bihar State Highways III Project
Project Number 51180-001
Country / Economy India
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3738-IND: Bihar State Highways III Project
Ordinary capital resources US$ 200.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
Sector / Subsector

Transport / Road transport (non-urban) - Transport policies and institutional development

Gender Effective gender mainstreaming
Description The project will rehabilitate and upgrade about 230 kilometers of state highways in Bihar state and improve road transport connectivity in line with the state's road development plan for 2015-2035. It will involve (i) upgrading state highways to standard two-lane width with paved shoulders; and (ii) reconstructing, widening, and strengthening culverts and bridges. The project will include building institutional capacity in the state for road design and maintenance and incorporating appropriate new technologies in the state's road subsector.
Project Rationale and Linkage to Country/Regional Strategy While the government has been progressively improving carriageway widths of state highways using budgetary and multilateral financing, about 35% of these roads are yet to meet the minimum two-lane standard. The project seeks to advance this government program to upgrade all state highways to at least standard two-lane widths and improve road safety. The roads selected in this project are from the overall master plan, based on (i) development priorities of the government, (ii) key infrastructure roads for agriculture- and industry-based activities, and (iii) the readiness to implement. The project roads selected are spread across Bihar's rural areas that lack reliable road connectivity, causing limited access to health and educational institutions, commercial facilities, and government development agencies. The project will also establish a state institution, proposed by the RCD, to further the objective of institutional capacity at a technical level and in a sustained manner.

Road transport accessibility in the State of Bihar improved.

Project Outcome
Description of Outcome

Transport efficiency and safety on selected state highways in Bihar improved

Progress Toward Outcome Civil works and consulting contracts are in advanced stage of completion.
Implementation Progress
Description of Project Outputs

State highways widened and upgraded

Bihar Road Research Institute established

Status of Implementation Progress (Outputs, Activities, and Issues) Widening/rehabilitation works in around 223 km have been completed . Works in remaining 7 km are ongoing Contract for one of the civil works package comprising construction of two major bridges only have been awarded recently and some work is likely be slipped beyond the loan closing date of 30 June 2024. BRRI implementation, though, has been delayed due to government internal issues, however RCD/ BSRDCL is considering strengthening of its existing facility at ' training testing and research institute functional (TTRI) functional since 1962 as envisaged for BRRI.
Geographical Location Bihar
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project involves improvement of five existing state highways totaling about 230 km from single or intermediate lanes to two lanes with paved shoulders. No significant, irreversible environmental impacts are anticipated and none of the roads are located inside or near protected or environmentally sensitive areas. An initial environmental examination (IEE) has been prepared and disclosed on the ADB website. Anticipated environmental impacts from the project entail typical issues related to road construction, such as removal of trees, generation of dust, noise, exhaust, waste from construction and worker camps, water contamination, occupational health and safety, slope failures, erosion, and siltation. Mitigation measures to address all of these have been included in the environmental management plan, which is part of the bid documents, and will be required to be implemented by the contractor. Meaningful consultations have been held with affected persons and other key stakeholders, such as forestry officials, while preparing the IEE. Concerns of affected people and stakeholders will continue to be addressed during project implementation through the grievance redress mechanism proposed in the IEE.
Involuntary Resettlement The project was developed with a commitment to minimize land acquisition through appropriate technical design. While road widening from single lane to two lanes will occur within existing rights-of-way, some land acquisition cannot be avoided where alignments will be improved for safety reasons. A 100% census of affected households was conducted based on the detailed design. Five resettlement plans and a due diligence report were prepared in accordance with ADB's Safeguard Policy Statement and the policies and regulations of the governments of India and Bihar.
Indigenous Peoples During project preparation, social assessment noted that the scheduled tribes live in the project area as individual households and not as indigenous peoples communities with distinct practices and collective attachment to land. The assessment indicates that scheduled tribe households are well integrated in the general population and will not require indigenous peoples safeguards under the project. One scheduled tribe household will be affected by land acquisition along State Highway 58. The resettlement plan provides that the household will receive additional compensation as a vulnerable affected household, in addition to compensation at replacement cost, transition allowances, and income restoration.
Stakeholder Communication, Participation, and Consultation
During Project Design Salient information regarding the project, including scope, general progress status, beneficiaries, invitation for bid and consultant recruitment notices, has been made available and is being updated through the official website of the BSRDCL. The safeguard documents, i.e., the initial environmental examination including the environmental management plan, resettlement plans, indigenous peoples plan (if any), have been posted on ADBs website. The BSRDCL will continue to provide relevant information, including information from the above documents, in a timely manner, in an accessible place, and in a form and in languages understandable to the displaced people and other stakeholders. If the displaced people are illiterate, other appropriate communication methods have been used.
During Project Implementation Social and environmental monitoring reports are being submitted by BSRDCL for ADB's review as per the requirements of loan docs.
Business Opportunities
Consulting Services Procurement (including consulting services) to be financed by ADB followed ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). An estimated 2,808 person-months (77 international, 2,731 national) of consulting services are required for construction supervision and institutional capacity. Consulting firms have been engaged using the quality- and cost-based selection method with a standard quality cost ratio of 80:20.
Procurement Procurement to be financed by the project followed ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Responsible ADB Officer Jagir Kumar
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission (INRM)
Executing Agencies
Bihar State Road Development Corporation Ltd.
Concept Clearance 09 Oct 2017
Fact Finding 14 May 2018 to 25 May 2018
MRM 26 Jul 2018
Approval 15 Nov 2018
Last Review Mission -
Last PDS Update 20 Mar 2024

Loan 3738-IND

Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Nov 2018 26 Nov 2018 15 Feb 2019 30 Jun 2023 30 Jun 2024 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 304.00 Cumulative Contract Awards
ADB 200.00 20 Mar 2024 148.85 0.00 98%
Counterpart 104.00 Cumulative Disbursements
Cofinancing 0.00 20 Mar 2024 142.24 0.00 94%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory
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