47341-003: South Asia Subregional Economic Cooperation Road Connectivity Investment Program-Tranche 2 | Asian Development Bank

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

Sovereign (Public) Project | 47341-003 Status: Approved

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 Approved
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 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
Implementation Progress
Description of Project Outputs Roads for regional connectivity improved
Status of Implementation Progress (Outputs, Activities, and Issues)
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 Lu, Yang
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
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 15 Aug 2018

Loan 3690-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Aug 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 13 Aug 2018 0.00 0.00 0%
Counterpart 157.80 Cumulative Disbursements
Cofinancing 0.00 13 Aug 2018 0.00 0.00 0%

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.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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