Project Name MFF - Rural Roads Sector II Investment Program (Project 3)
Project Number 37066-043
Country India
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2445-IND: MFF - Rural Roads Sector II Investment Program (Project 3)
Ordinary capital resources US$ 130.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming Some gender elements
Description The Project will finance part of the cost of a subset of the Investment Program comprising construction and upgrading of 950 kilometers (km) rural roads in the state of Assam and 720 km rural roads in the state of West Bengal that are part of the Government of India's rural roads program - Pradhan Mantri Gram Sadak Yojana (PMGSY) meaning Prime Minister's Rural Roads Program. It is expected that the proposed investment will bring about the outcome of reduced poverty and deprivation, and economic growth of rural communities in the vicinity of the subproject roads by providing them with enhanced access to markets; employment opportunities; and social services including health and education.
Project Rationale and Linkage to Country/Regional Strategy Poor road infrastructure affects economic growth in rural areas. It impacts negatively on domestic and local trade, on the final cost of goods, competition and competitiveness, logistics in general, movement of people, inward investment opportunities, and ultimately on employment. Poor road connectivity has a strong link to poverty. Past neglect of the rural road network has cut off rural communities from mainstream economic centers in the country and even locally. Poor road connectivity has resulted in slow development, and in some cases a faster than needed exodus of young people to cities. The Government is trying to redress this problem under PMGSY, Assam, Orissa, and West Bengal, which are first targeted under the Investment Program, are 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.
Impact Contribute to reduction in poverty and deprivation, and support economic growth of the community connected by Investment Program roads.

Project Outcome

Description of Outcome Improved connectivity of rural community to markets, district headquarters, and other centers of economic activity via Investment Program roads
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Construction and upgrading of rural roads to all-weather standard.

Improved community participation

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Assam and West Bengal

Safeguard Categories

Environment B
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

Business Opportunities

Consulting Services Tranche 3 does not have any provision for financing consulting services. Technical support consultant's (TSC) services required for preparation of PFR3 were financed under Project 1. For the implementation of Project 3, TSC's services will be financed under Tranche 1, and, after closing of Tranche 1, will be financed under Tranche 2.
Procurement Under the advance contracting and retroactive financing provisions of the FFA, the two state Implementing Agencies started procurement action as early as in August 2007. The first contract award under Project 3 was in December 2007 in West Bengal and in May 2008 in Assam. In West Bengal, all the civil works contracts under Project 3 have been awarded. In Assam, contract award is taking place in phases. Procurement of civil works followed national competitive bidding procedure using the PMGSY standard bidding documents and procedures with the agreed ADB-financing specific adjustments in the areas of eligibility, anticorruption, social and environmental safeguards as was used under Project 1. An ADB-engaged procurement consultant carried out post-facto review of the procurement process followed and documentation used, and confirmed that there was no departure from the earlier-agreed procurement arrangements. The Procurement Plan is included as part of the submitted PFR.

Responsible Staff

Responsible ADB Officer Heriawan, Andri
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Ministry of Rural Development
J. K. Mohapatra
New Delhi, India


Concept Clearance -
Fact Finding -
Approval 26 Sep 2008
Last Review Mission -
PDS Creation Date 22 Jul 2009
Last PDS Update 17 Nov 2010

LoanĀ 2445-IND

Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Sep 2008 10 Nov 2008 05 Jan 2009 31 Dec 2010 30 Jun 2013 19 Nov 2013
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 168.80 Cumulative Contract Awards
ADB 130.00 26 Sep 2008 121.73 0.00 100%
Counterpart 38.80 Cumulative Disbursements
Cofinancing 0.00 26 Sep 2008 121.73 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - - - Satisfactory

This page was generated from on 24 April 2017