India: South Asia Subregional Economic Cooperation Road Connectivity Investment Program-Tranche 2

Sovereign Project | 47341-003

Tranche 2 will finance upgrading of a part of Asian Highway (AH)-1 connecting to Myanmar from Manipur state and construction of an international bridge between India and Nepal as the last mile connectivity improvement along AH-2. It will also finance a part of the project cost of the state highway in Manipur being constructed as a subproject under tranche 1. The tranche 2 subprojects will further reduce transaction costs along the targeted cross-border corridors, ushering in economies of scale and commercial prosperity.

Project Name South Asia Subregional Economic Cooperation Road Connectivity Investment Program-Tranche 2
Project Number 47341-003
Country India
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3690-IND: South Asia Subregional Economic Cooperation Road Connectivity Investment Program - Tranche 2
Ordinary capital resources US$ 150.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Private sector development
Sector / Subsector

Transport / Road transport (non-urban)

Gender Equity and Mainstreaming Some gender elements
Description Tranche 2 will finance upgrading of a part of Asian Highway (AH)-1 connecting to Myanmar from Manipur state and construction of an international bridge between India and Nepal as the last mile connectivity improvement along AH-2. It will also finance a part of the project cost of the state highway in Manipur being constructed as a subproject under tranche 1. The tranche 2 subprojects will further reduce transaction costs along the targeted cross-border corridors, ushering in economies of scale and commercial prosperity.
Project Rationale and Linkage to Country/Regional Strategy Trade between SASEC countries via India to Myanmar and Thailand is currently by sea, which makes exchanges slow and expensive, especially for the landlocked countries and the North West Bengal and North Eastern Region of India (NB-NER). Cross-border trade via roads between India and Myanmar, through Moreh, Tamu and Reed, comprises only 1.5% of the total road-based cross-border trade of Myanmar ($1.1 billion), against 70% with China and 26% with Thailand. Industry estimates suggest that seamless connectivity through the India-Myanmar-Thailand trilateral road would ratchet up India's trade with Association of South East Asian Nations (ASEAN) to about $100 billion by 2020.
Impact Connectivity with the North-East, both within the region and with the far eastern region, including Myanmar, Bangladesh and Thailand improved.
Project Outcome
Description of Outcome Road connectivity and efficiency of the international trade corridor in NB-NER improved.
Progress Toward Outcome Works for the international bridge, package 1 and 2 of Imphal-Moreh section are ongoing.
Implementation Progress
Description of Project Outputs Roads for regional connectivity improved
Status of Implementation Progress (Outputs, Activities, and Issues)

Civil works for the 3 EPC contracts are ongoing.

Civil works ongoing.

Civil works ongoing.

Included in civil works contracts.

Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects

Tranche 2 is categorized category B in accordance with ADB's Safeguard Policy Statement (SPS 2009). No significant, irreversible environmental impacts are anticipated from subprojects. The subprojects are not located inside or near any protected or environmentally sensitive areas. Initial environmental examinations (IEE) have been prepared for each subproject. Environment safeguards compliance for subprojects under tranche 1 has been found satisfactory. The environmental due diligence report is disclosed on the ADB website.

Anticipated environmental impacts from the subprojects entail typical road construction related issues 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 have been included in the environmental management plan, which the contractor will implement. Long-term impacts are mainly related to noise and emissions from the increased traffic, which will be curbed through the construction of noise barriers and speed control measures. For the Mechi bridge subproject, precautionary measures will be taken to avoid disturbing the hydrology, contaminating the water, and preventing social and health issues from the construction workers.

Involuntary Resettlement Tranche 2 is categorized A in accordance with the SPS. The projects were developed to minimize impact. All plans were prepared in accordance with the resettlement framework of the investment program. One combined resettlement and indigenous peoples plan was prepared for AH-1 priority section, and two resettlement plans were prepared for Mechi bridge one for India and one for Nepal. A total of 84.28 hectares will be acquired at replacement cost; 2,359 households comprising 12,888 persons will be affected, occupying 621 structures. A total of 404 households will be physically displaced, 1,955 households will be economically displaced, and 1,007 households will experience significant impact. The displaced households will be entitled to compensation for the loss of land and structures at replacement cost, shifting cost, and other income restoration assistance. The resettlement cost is estimated at about $64.5 million.
Indigenous Peoples Tranche 2 is categorized B in accordance with the SPS. Planning was undertaken in accordance with the indigenous peoples planning framework of the investment program. A total of 262 indigenous peoples' households will be impacted by involuntary resettlement, but this does not trigger the requirement for broad community support. The census found that tribal groups in the subproject areas freely interact with outside communities and live along existing roads to benefit from better connectivity. A combined resettlement and indigenous peoples plan has been prepared for the AH-1 priority section subproject. Adequate compensation provisions are made to mitigate adverse impacts on indigenous peoples' households.
Stakeholder Communication, Participation, and Consultation
During Project Design Meaningful consultations were held with affected persons and other key stakeholders while preparing the IEE and RP.
During Project Implementation Consultation, as required, will be carried out during project implementation. A grievance redress mechanism will be established to address any concerns and complaints during implementation.
Business Opportunities
Consulting Services No consultants will be recruited under the project, using ADB loan proceeds.
Procurement All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2015, as amended from time to time).
Responsible ADB Officer Sorti, Mihir
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
Ministry of Finance (Aid Accounts & Audit Division)
[email protected]
5th Floor, B Wing, Janpath Bhawan
Janpath, New Delhi 110 001
India
Ministry of Road Transport and Highways
Transport Bhavan
Room 509
Public Works Department State of Manipur
[email protected]
PWD Complex, Khuyathong, Imphal Manipur 795001
Timetable
Concept Clearance -
Fact Finding -
MRM 14 Jul 2017
Approval 13 Aug 2018
Last Review Mission -
Last PDS Update 17 Nov 2020

Loan 3690-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Aug 2018 01 Oct 2018 29 Nov 2018 30 Jun 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 307.80 Cumulative Contract Awards
ADB 150.00 29 Sep 2021 122.22 0.00 94%
Counterpart 157.80 Cumulative Disbursements
Cofinancing 0.00 29 Sep 2021 64.44 0.00 50%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - Satisfactory - -

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
South Asia Subregional Economic Cooperation Road Connectivity Investment Program-Tranche 2: Audited Project Financial Statements (April 2019-March 2020) Audited Project Financial Statements Mar 2021
South Asia Subregional Economic Connectivity Road Connectivity Investment Program – Tranche 2: Audited Project Financial Statements (September 2017-March 2019) Audited Project Financial Statements Dec 2019
South Asia Subregional Economic Connectivity Road Connectivity Investment Program – Tranche 2: Procurement Plan Procurement Plans Oct 2018
South Asia Subregional Economic Connectivity Road Connectivity Investment Program – Tranche 2: Design and Monitoring Framework Design and Monitoring Frameworks Oct 2018
Project Agreement for Loan 3690-IND: SASEC Road Connectivity Investment Program - Project 2 (National Highways and Infrastructure Development Corporation Limited) Project/Program Agreements Oct 2018
Project Agreement for Loan 3690-IND: SASEC Road Connectivity Investment Program - Project 2 (State of Manipur) Project/Program Agreements Oct 2018
Loan Agreement (Ordinary Operations) for Loan 3690-IND: SASEC Road Connectivity Investment Program - Project 2 Loan Agreement (Ordinary Resources) Oct 2018
Amendment to the Framework Financing Agreement: South Asia Subregional Economic Cooperation Road Connectivity Investment Program-Tranche 2 Framework Financing Agreement Sep 2018
South Asia Subregional Economic Cooperation Road Connectivity Investment Program - Tranche 2: Periodic Financing Request Report and Minor Change of Multitranche Financing Facility Periodic Financing Request Reports Aug 2018

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
South Asia Subregional Economic Cooperation Road Connectivity Investment Program – Tranche 2: Mechi Bridge and Approaches Construction Environmental Monitoring Report (October 2018-December 2019) Environmental Monitoring Reports Jun 2021
South Asia Subregional Economic Cooperation Road Connectivity Investment Program - Tranche 2: Mechi River Bridge and Approach Road (Nepal Section) Social Monitoring Report (July-December 2020) Social Monitoring Reports Dec 2020
South Asia Subregional Economic Cooperation Road Connectivity Investment Program - Tranche 2: Imphal-Moreh Section of NH 39 Social Monitoring Report (January-June 2020) Social Monitoring Reports Sep 2020
South Asia Subregional Economic Cooperation Road Connectivity Investment Program – Tranche 2: Imphal-Moreh Priority Section of AH1 Environmental Monitoring Report (July-December 2019) Environmental Monitoring Reports Jan 2020
South Asia Subregional Economic Cooperation Road Connectivity Investment Program-Tranche 2: Imphal-Moreh Road (Imphal- Khongkhang Section) Updated Initial Environmental Examination Initial Environmental Examination Aug 2019
South Asia Subregional Economic Cooperation Road Connectivity Investment Program – Tranche 2: Imphal-Moreh Priority Section of AH1 Environmental Monitoring Report (January-June 2019) Environmental Monitoring Reports Jul 2019
SASEC Road Connectivity Investment Program - Tranche 2: Imphal-Moreh Section of NH 39 Social Monitoring Report (January-June 2019) Social Monitoring Reports Jul 2019
SASEC Road Connectivity Investment Program - Tranche 2: Imphal-Moreh Section of NH 39 Social Monitoring Report (October-December 2018) Social Monitoring Reports Jun 2019
South Asia Subregional Economic Cooperation Road Connectivity Investment Program - Tranche 2: Imphal-Moreh (Package 1) Road Section Updated Resettlement Plan Resettlement Plans Apr 2019
SASEC Road Connectivity Investment Program - Tranche 2: Imphal-Moreh Section of NH 39 Environmental Monitoring Report (October-December 2018) Environmental Monitoring Reports Feb 2019
South Asia Subregional Economic Cooperation Road Connectivity Investment Program Tranche 2: Social Safeguard Due Diligence Report Safeguards Due Diligence Reports Jul 2017
South Asia Subregional Economic Cooperation Road Connectivity Investment Program Tranche 2: Environmental Safeguard Due Diligence Report Safeguards Due Diligence Reports Jul 2017
SASEC Road Connectivity Investment Program: Updated Environmental Assessment and Review Framework Environmental Assessment and Review Framework May 2017
SASEC Road Connectivity Investment Program: Updated Resettlement Framework Resettlement Frameworks Apr 2017
SASEC Road Connectivity Investment Program - Tranche 2: Mechi River Bridge (Nepal Section) Resettlement Plan Resettlement Plans Apr 2017
SASEC Road Connectivity Investment Program - Tranche 2: Imphal to Khongkhang Section Combined Resettlement and Indigenous Peoples Plan Combined Resettlement Plan and Indigenous Peoples Plans Apr 2017
SASEC Road Connectivity Investment Program - Tranche 2: Mechi River Bridge (India Section) Resettlement Plan Resettlement Plans Apr 2017
SASEC Road Connectivity Investment Program - Tranche 2: Mechi River Bridge Initial Environmental Examination Initial Environmental Examination Apr 2017
SASEC Road Connectivity Investment Program - Tranche 2: Imphal-Moreh Road (Imphal- Khongkhang Section) Initial Environmental Examination Initial Environmental Examination Apr 2017

Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders


Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
CONSTRUCTION OF 4 LANING IMPHAL-MOREH SECTION OF NH39 (PKG 1 REBID) FROM KM 330 TO KM 350 IN THE STATE OF MANIPUR ON EPC MODE Loan 3690 22 Oct 2019 G.S. INFRAPROJECTS LIMITED | REVENUE BLK NO.223, OLD SURVEY NO. 384/1 384/2 PAIKI AND 384/3, KHATA NO.464 INDIA Ministry of Road Transport & Highways 55,779,187.48 42,761,486.76
CONSTRUCTION OF IMPHAL KANGCHUP TAMENGLONG ROAD FROM TRANCHE 1 (L3118)(PD/EAP/SRCIP/CW/AGRT/2016/ 03 Loan 3690 21 Dec 2018 HCC-VCCL (JV) | 11/FLR,247PARK,LAL BAHADUR SHASTRI(LBS) VIKHROLI (WEST) MUMBAI-400083 INDIA Ministry of Road Transport & Highways 158,433,597.21 23,515,553.33
TWO LANING OF IMPHAL - MOREH SECTION NH 39 (PACKAGE II) FROM KM 350.000 TO KM 395.680 IN STATE OF MANIPUR ON EPC MODE Loan 3690 21 Dec 2018 G.R. INFRA PROJECTS LIMITED | REVENUE BLOCK OLD SURVEY AHMEDABAD, GUJARAT - 382220 INDIA Ministry of Road Transport & Highways 65,093,957.30 49,740,225.44
CONSTRUCTION OF MECHI BRIDGE AND APPROACHES IN INDIA-DEPAL BORDER LINKING KAKARVITTA IN NEPAL AND PANITANKI IN INDIA UNDER EPC MODE Loan 3690 21 Dec 2018 DINESHCHANDRA R. AGRAWAL INFRACON PVT LTD | 401 THE GRAND MALL OPP STATE BANK ZONAL OFC S M ROAD, AMBAWADI, AHMEDABAD380015 INDIA Ministry of Road Transport & Highways 14,757,303.64 11,276,493.87