India: MFF - Rural Roads Sector II Investment Program - Project 4

Sovereign (Public) Project | 37066-053 Status: Closed

The Asian Development Bank is working with India to improve roads in the countryside. The project is upgrading roads that connect many vulnerable and isolated communities and will help about two million people, providing modern roads to 1,503 communities in the states of Assam, Odisha (formerly Orissa), and West Bengal. About 2,900 kilometers of all-weather rural roads were built or upgraded under the project.

Project Name MFF - Rural Roads Sector II Investment Program - Project 4
Project Number 37066-053
Country India
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2535-IND: MFF - Rural Roads Sector II Investment Program - Project 4
Ordinary capital resources US$ 185.00 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 916.77 km rural roads in the state of Assam, 1,498.58 km rural roads in the state of Orissa, and 696.27 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 into all-weather standard

Improved community participation

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
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 The Project does not have any provision for financing consulting services. Technical Support Consultant's (TSC) services required for preparation of the Project 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 IAs 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.
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
[email protected]
New Delhi, India
Concept Clearance -
Fact Finding -
Approval 07 Aug 2009
Last Review Mission -
PDS Creation Date 26 Feb 2010
Last PDS Update 18 Nov 2010

Loan 2535-IND

Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Aug 2009 03 Sep 2009 26 Nov 2009 30 Jun 2012 31 Dec 2012 23 Apr 2013
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 185.00 Cumulative Contract Awards
ADB 185.00 07 Aug 2009 185.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 07 Aug 2009 185.00 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

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