India : MFF - North Eastern State Roads Investment Program - Tranche 1

Transport / Road transport (non-urban)

The project comprises (a) Investment Component consisting of improvements of about 200 km state roads in the States of Assam, Meghalaya and Sikkim, and associated consulting services for construction supervision; and (b) Project Management and Capacity Development Component consisting of (i) assistance to the Ministry of Development of North Eastern Region (MDONER) and the public works departments (PWDs) in implementing the Investment Subprojects, and (ii) capacity development of the PWDs for improved road asset management.

North Eastern Region (NER) forms a distinct geographical unit, representing about 8% of the country's geographic area. 98% of its borders are with other countries, Bangladesh, Bhutan, the People's Republic of China, Myanmar, and Nepal. Its connection with the rest of the country is only through a narrow land corridor. Except in Assam, NER has predominantly hilly to mountainous terrain and very high rainfall (among the highest in the world), which frequently results in landslides and floods.

Many factors have hampered the process of economic development in NER. Prior to independence, the only major economic activity was tea growing in some parts of present-day Assam. NER's transport connectivity to the rest of India has been limited to the narrow land corridor. Some states joined the planned development process later than other states of the country. Recognizing the need for accelerated development, the Government of India places special focus on the development of NER in its five-year plans, mainly through central funding of development activities in the region. Over the last two decades the government has required 10% of the budgets of central ministries and departments to be allocated for NER, and the creation of a non-lapsable central pool of resources for collecting the unspent allocated central funds for further assistance to the region. However, the recent growth performance of these states has not been encouraging, although some of the human development indicators (HDIs), such as the literacy rate, show remarkable progress. The government's Eleventh Five Year Plan, 2007-2012 states that "while development efforts over the years have made some impact (as reflected in some of the HDIs which are comparable with the rest of the country), the region is deficit in physical infrastructure which has a multiplier effect on economic development."

In 2001, the government created a dedicated ministry, MDONER, to coordinate and give impetus to the various central development efforts. MDONER responsibilities include dealing with matters relating to the planning, execution, and monitoring of development schemes and projects in the region including those for roads and administering the non-lapsable central pool of resources.

To further these development efforts and with renewed recognition that poor roads and bridges supporting the region's single most dominant transport mode of road transport are the major constraints on such effort, the government started a national investment program to improve road connectivity to remote places in the region. The Special Accelerated Road Development Program in the North Eastern Region (SARDP-NE) is to improve higher class roads including national highways and state roads in the region, and provide connectivity to the state capitals and district headquarters in NER by developing two-lane national highways. The investment program was developed in parallel with SARDP-NE and is complementary to it. While SARDP-NE focusses on improving higher class roads, the investment program is developed to improve intrastate connectivity, mainly to district headquarters and other places of administrative and economic importance in the individual states, and enhancing capacity of state PWDs to manage their road assets.

Improved surface transport connectivity in NER

Improved mobility and accessibility in the project areas

1. Reconstructed and rehabilitated state roads

2. Improved business process and staff skills

Completed in December 2014.Completed in December 2014.Completed in December 2014.Maintenance fund is sanctioned and is part of State share of counter part funding- Civil Works contracts in Assam, Sikkim and Meghalaya were awarded on 10 Dec 2012, 17 Nov 2012 and 12 Sep 2013 respectively.Overall physical progress for Assam is 100%, for Sikkim 100% and for Meghalaya, 100%.- Construction Supervision Consultants in Assam, Sikkim and Meghalaya were awarded on 8 Nov 2012, 28 Feb 2012 and 12 Jul 2012 respectively.- Project Management Consultants contract was awarded on 3 Aug 2012.

The project has been physically closed on 30 Jun 2021.