India: Public–Private Partnership in Madhya Pradesh Road Sector Project

Transport / Road transport (non-urban)

Madhya Pradesh is the second largest state in the country with an area of about 308,000 square kilometer and is the fifth most populous with a population of 73 million. Agriculture is the mainstay of the state, with 72% of population living in rural areas. From 2011 to 2018, the state''s economy experienced an average growth of 8% attributed to various industrial developments and policy measures, such as the development of industrial nodes on the Delhi -Mumbai Industrial Corridor, and other industrial areas and growth centers. Despite the recent economic growth, Madhya Pradesh is still among the poorer states in the country with per capita income (at constant prices) at about 63% of the national average and about 32% of the state''s population living below the poverty line. The large size of the state, dependence on agriculture, and distributed industrial development, make transport infrastructure, particularly roads, a critical necessity.

The project is also consistent with the strategic pillar set out in the country partnership strategy for India, 2018 -2022 in providing inclusive access to infrastructure networks and services, and in line with the government's plan to revitalize PPPs by strengthening PPP institutions and promoting improved contractual modalities.

State highways upgraded to two-lane and all-weather roads

Single-lane major district roads upgraded to two-lane and all-weather roads

Capacity for hybrid-annuity model implementation, and road asset maintenance and management improved

Total of 13 contracts awarded.

Deferred due to COVID-19.

Total of 13 contracts have been awarded

Deferred due to COVID-19.

Total of 13 contracts have been awarded.

A resettlement framework has been prepared for the sector project in accordance with (i) the Right to Fair Compensation and

Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (Land Acquisition Act, 2013); (ii) state laws and regulations; and (iii) the ADB SPS (2009). The resettlement framework guides the screening and planning for all subprojects that have resettlement impacts.

Displaced persons (titleholders and non-titleholders) will be compensated at replacement cost and the rates for different categories of loss and special assistance are detailed in the resettlement framework. The project was developed with a view to avoid land acquisition and involuntary resettlement by adopting the most feasible technical design. The proposed improvement of roads will all occur within the existing right-of-way. The sample subprojects are representative of the kinds of impact likely to be encountered in non-sample roads. No category A subprojects will be financed under the project.

All consultants will be recruited according to ADB's Procurement Regulations for ADB Borrowers (2017, as amended from time to time).

An estimated 8,217 person-months of consulting services (15 person-months for international consultants, 8,202 person-months for national consultants) are required for construction supervision and institutional capacity. Consulting firms will be engaged using the quality- and cost-based selection method with a standard quality cost ratio of 80:20.