World Bank Document€¦ · The World Bank Board of Executive Directors approved the original Assam...

The World BankAssam State Roads Project (P096018)

REPORT NO.: RES27745

RESTRUCTURING PAPER

ON A

PROPOSED PROJECT RESTRUCTURING

OF

ASSAM STATE ROADS PROJECT

APPROVED ON MARCH 13, 2012

TO

DEPARTMENT OF ECONOMIC AFFAIRS, GOVERNMENT OF INDIA

TRANSPORT & DIGITAL DEVELOPMENT

SOUTH ASIA

Regional Vice President: Annette Dixon Country Director: Junaid Kamal Ahmad

Senior Global Practice Director: Jose Luis IrigoyenPractice Manager/Manager: Karla Gonzalez Carvajal

Task Team Leader: Elena Y. Chesheva, N. S. Srinivas, Sanjeev Deorao Moholkar

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ABBREVIATIONS AND ACRONYMS

ACRONYM EXPANDED DEFINITIONARRTI Assam Roads Research Training InstituteASRB Assam State Roads BoardASRP Assam State Roads ProjectEPC Engineering Procurement ConstructionGOA Government of AssamIBRD International Bank for Reconstruction & DevelopmentINR Indian RupeesPDO Project Development ObjectivePWRD Public Works (Roads) DepartmentRAMS Road Asset Management SystemSIL Specific Investment LoanUSD / US$ United States Dollar


BASIC DATA

Product Information

Project ID Financing Instrument

P096018 Investment Project Financing

Original EA Category Current EA Category

Full Assessment (A) Full Assessment (A)

Approval Date Current Closing Date

13-Mar-2012 31-Mar-2018

Organizations

Borrower Responsible Agency

Department of Economic Affairs, Government of India Public Works Roads Department

Project Development Objective (PDO)

Original PDOThe project development objective is to enhance the road connectivity of Assam by assisting the Public Works Roads Department to improve and effectively manage its road network.OPS_TABLE_PDO_CURRENTPDOSummary Status of Financing

Ln/Cr/Tf Approval Signing Effectiveness ClosingNet

Commitment Disbursed Undisbursed

IBRD-81360 13-Mar-2012 05-Nov-2012 25-Jan-2013 31-Mar-2018 320.00 128.84 191.16

TF-11446 27-Apr-2012 27-Apr-2012 27-Apr-2012 31-Mar-2015 1.75 1.75 0

Policy Waiver(s)

Does this restructuring trigger the need for any policy waiver(s)?No


I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING

1. The World Bank Board of Executive Directors approved the original Assam State Roads Project (ASRP) (LN. 8136-IN) on March 13, 2012, and the project became effective on January 25, 2013. The total loan amount from the International Bank for Reconstruction & Development (IBRD) was USD 320 million. The current loan closing date of the project is March 31, 2018. The project has disbursed to date an amount of USD 113.61 million, which works out to 35.5% of the loan amount.

2. The project has committed 100% of the loan amount. Notable progress has been made in the project over the last 2 years with all the components under the project performing reasonably well. All major procurements envisaged under the project have been substantially completed. Based on the improved project performance, the project IP rating was upgraded to “Moderately Satisfactory”. However, initial delays in the project implementation and delays due to the need to terminate and re-tender some of the civil works contracts, would not allow all project activities to be completed by the current closing date of the project. Therefore, the PDO rating of the project has been rated at “Moderately Unsatisfactory”, even though the PDO remains valid. Once the loan closing date extension is processed, the PDO rating is expected to be upgraded to “Moderately Satisfactory”.

(a) Civil Works: In terms of project progress, the civil works component is moving at a reasonably steady pace. This component, during its initial stages of implementation, came across several challenges that included poor performing contractors, delays in completion of pre-construction activities, lack of availability of materials etc. Over the last two years, Government of Assam and Public Works (Roads) Department took several corrective actions, such as termination of poor performing contracts, swift re-bidding and award of these terminated contracts, speeding up of administrative approvals for completion of pre-construction activities etc. These efforts paved the way for improved project performance. Of the 258 km of upgrading works, about 101 km has been completed to date. Under the rehabilitation packages, about 491 km has been completed to date against a total length of 769 km. Similarly, under the bridge works in this component, 14 bridges are expected to be constructed. Of these, 2 bridges have been completed and the remaining are in different stages of construction. In addition to these standard design bridges, one innovative bridge with EPC mode of contracting was also proposed to be taken up under the project. However, due to the time and cost involved in the construction of this bridge, it was agreed with PWRD not to add it to the project scope. Furthermore, two upgradation packages that are unlikely to be completed during the project life viz; SH-46/1C (ongoing court case) and SH45/9 (terminated due to poor performance of the contractor) are being dropped from the project.

(b) Status of Institutional Strengthening: Progress under this component has been satisfactory. A number of key activities have been substantively completed, including: (i) development and operationalization of Road Asset Management System (RAMS), (ii) development and scaling up including adoption of e-portal for digitizing and DPR approvals, project monitoring (all projects of the state, ~2200 projects monitored online), grievance registration, interfacing with RAMS with public viewing, (iii) revision of Department code and outdated manuals; (iv) design of innovative and standard Bridge Manual for the state. These activities have resulted in a more efficient way of managing PWRD assets and works. Some other long-term transformational activities on this component include strengthening of Assam State Roads Board (ASRB), strengthening of Assam Roads Research Training Institute (ARRTI), however, more support for these activities is required, as well as for the system integration


services to augment web-based PWRD Portal. The documents for development of Assam State Roads Board and ARRTI were extensively deliberated and consulted among the key stakeholders and have been endorsed by Government of Assam for implementation / execution. The Government of Assam would need to explore suitable avenues to take these initiatives forward. Support for them has been included in the proposal for ASRP-II that was recently developed by the government and submitted to the GoI for consideration.

(c) Status of Road Safety: Assam Road Safety Action Plan was prepared with the support by the project, and has been subsequently adopted by the Government of Assam. One demo safe corridor (Amingaon to Kalitakushi) has been completed with road safety engineering measures and enhanced enforcement. The Road Safety Audit has been conducted on 220 km of project roads and specifications for the road safety improvement works have been prepared. It has been agreed with the PWRD that procurement of these works would be undertaken as soon as closing date extension is processed. All road safety improvement works will be completed before the proposed revised closing date. Blackspot mitigation measures have been undertaken on 16 identified blackspots. Development of the Road Accident Data Management System could be accomplished under the project within the proposed revised closing date, provided the procurement is done without delays. The project has supported preparation of designs for the Model Safe Corridor with integrated traffic management system and intelligent transport system on an arterial urban corridor in Guwahati (Jalukbari-Khanapara). However, support for implementation of this corridor is outside of the scope of this project. The Government of Assam needs to identify suitable modalities to take this multi-sectoral initiative forward.

II. DESCRIPTION OF PROPOSED CHANGES

3. The proposed restructuring would entail the following:

Extension of the loan closing date by 18 months;

Revision of the Project Results Framework and Monitoring Indicators.

4. The details of the proposed changes are as given below:

(a) Extension of Loan Closing date: As explained in the previous section, the project implementation has been affected due to the numerous challenges faced by the project. The corrective actions taken by Government of Assam and Public Works (Roads) Department yielded positive results that enabled bringing the project back on track. All the components under the project have been exhibiting an improved performance which has also resulted in improved disbursement performance in the last year and a half. Out of 66 civil works contracts, only 15 are expected to be completed by the current closing date of March 31, 2018. Thus, it would be impossible to achieve the PDO of the project. In view of this, the project proposes an extension of the loan closing date by 18 months, up to September 30, 2019. This time extension should be sufficient for completion of all project activities. This will be the first extension to be sought by the project.

(b) Revision of the Project Results Framework and Monitoring Indicators: In addition to the proposed extension of the loan closing date, the project results indicators are proposed to be revised. The purpose is to align the indicators with the outcomes and outputs likely to be achieved under each of the project components and revise the targets according to the latest project progress and the targets likely to be achieved at the end of the project. The snapshot of the proposed changes / revisions is as given below in Table 1:

TABLE 1: SUMMARY OF ADJUSTMENTS FOR MONITORING AND EVALUATION FRAMEWORK


Items Current number of Indicators

Changes proposed

PDO Indicators 4 Revision of the target (including description) - 2To be Dropped - 1No Change – 1

Intermediate Results IndicatorComponent 1: Road Improvement 2 Revision of the target – 2

To be Dropped – 0No Change – 0

Component 2: Road Sector Modernization and Performance Enhancement

5 Revision of the target– 2To be Dropped – 2No Change – 1

Component 3: Road Safety Management

2 Revision of the target - 1 To be Dropped - 0No Change – 1

Total (Intermediate Indicators) 9 Revision of targets- 5To be Dropped – 2No change – 2

Details of the changes made in the project results framework is provided in Annex 1.

III. SUMMARY OF CHANGES

Changed Not Changed

Change in Results Framework ✔

Change in Loan Closing Date(s) ✔

Change in Implementing Agency ✔

Change in DDO Status ✔

Change in Project's Development Objectives ✔

Change in Components and Cost ✔

Cancellations Proposed ✔

Reallocation between Disbursement Categories ✔

Change in Disbursements Arrangements ✔

Change in Disbursement Estimates ✔

Change in Overall Risk Rating ✔

Change in Safeguard Policies Triggered ✔


Change of EA category ✔

Change in Legal Covenants ✔

Change in Institutional Arrangements ✔

Change in Financial Management ✔

Change in Procurement ✔

Change in Implementation Schedule ✔

Other Change(s) ✔

Change in Economic and Financial Analysis ✔

Change in Technical Analysis ✔

Change in Social Analysis ✔

Change in Environmental Analysis ✔

IV. DETAILED CHANGE(S)

OPS_DETAILEDCHANGES_RESULTS_TABLE

RESULTS FRAMEWORK

Project Development Objective Indicators PDO_IND_TABLE

Secondary road network in good or fair condition (Percentage, Custom)Unit of Measure: PercentageIndicator Type: Custom

Baseline Actual (Current) End Target Action

Value 25.00 15.10 30.00 No Change

Date 01-Jan-2012 22-Mar-2018 30-Sep-2019

Reduction in travel time on the project corridors (Percentage, Custom)Unit of Measure: PercentageIndicator Type: Custom


Value 0.00 0.00 20.00 No Change

Date 01-Jan-2012 14-May-2017 30-Sep-2019

Safety Rating of project corridors (Percentage, Custom)Unit of Measure: TextIndicator Type: Custom



Value 10 Procurement initiated 40.00 Marked for Deletion

Date 01-Jan-2012 14-May-2017 31-Mar-2018

Improved Asset Management (Number, Custom)Unit of Measure: PercentageIndicator Type: Custom



Date 01-Jan-2012 22-Mar-2018 30-Sep-2019

Intermediate IndicatorsIO_IND_TABLE

Increased Maintenance Funding (INR million) (Number, Custom)Unit of Measure: NumberIndicator Type: Custom


Value 1800.00 6000.00 5000.00 No Change

Date 31-Mar-2012 14-May-2017 30-Sep-2019

Effective execution of maintenance works (Percentage, Custom)Unit of Measure: PercentageIndicator Type: Custom


Value 5.00 100.00 50.00 Marked for Deletion

Date 01-Jan-2012 14-May-2017 31-Mar-2018

Development and Implementation of Road Safety strategy (Yes/No, Custom)Unit of Measure: Yes/NoIndicator Type: Custom


Value No Yes Yes No Change

Date 13-Mar-2012 14-May-2017 30-Sep-2019

Annual district performance reports and maintenance plans published (Percentage, Custom)Unit of Measure: Percentage


Indicator Type: Custom



Date 01-Jan-2012 14-May-2017 31-Mar-2018

Road improvement and rehabilitation of 500 km core network roads (Kilometers, Custom)Unit of Measure: KilometersIndicator Type: Custom


Value 0.00 592.00 1000.00 No Change

Date 01-Jan-2012 22-Mar-2018 30-Sep-2019

Pilot projects on innovative design of bridges (Text, Custom)Unit of Measure: TextIndicator Type: Custom


Value None 700 No Change

Date 13-Mar-2012 14-May-2017 30-Sep-2019

Institutional strengthening of PWRD (Text, Custom)Unit of Measure: TextIndicator Type: Custom


Value Not applicable Actions under RSMP are underway

Various actions under the road sector moderninzation plan

No Change

Date 13-Mar-2012 14-May-2017 30-Sep-2019

Training of PWRD staff - percent staff receving one week training annually (Percentage, Custom)Unit of Measure: PercentageIndicator Type: Custom



Date 01-Jan-2012 14-May-2017 30-Sep-2019

Road safety improvements (Kilometers, Custom)Unit of Measure: Text


Indicator Type: Custom


Value 0 0 300.00 Marked for Deletion

Date 01-Jan-2012 17-Jun-2016 31-Mar-2018

Road safety improvements (Kilometers, Custom)Unit of Measure: TextIndicator Type: Custom


Value 0 23.00 300.00 Revised

Date 01-Jan-2012 14-May-2017 30-Sep-2019

Roads rehabilitated, RuralUnit of Measure: KilometersIndicator Type: Custom



Date 01-Jan-2012 17-Jun-2016 31-Mar-2018

OPS_DETAILEDCHANGES_LOANCLOSING_TABLE

LOAN CLOSING DATE(S)

Ln/Cr/Tf StatusOriginal Closing

Revised Closing(s)

Proposed Closing

Proposed Deadline for Withdrawal

Applications

IBRD-81360 Effective 31-Mar-2018 30-Sep-2019 30-Jan-2020

TF-11446 Closed 30-Jun-2013 31-Mar-2015, 01-Oct-2015


ANNEX 1: ADJUSTMENTS TO MONITORING AND EVALUATION FRAMEWORKTable A.1 Summary Analysis for Adjustment to the Monitoring and Evaluation Framework

Project Development Objective: To enhance the road connectivity of Assam by assisting the Public Works Roads Department to improve and effectively manage its road network

Original Indicator Suggestion(s) Justification(s) Modification(s) Revised Indicator

PDO Indicator

Secondary road network in good or fair condition [baseline: 25%; target: 40%]

To be modified - Highly relevant to achieve connectivity

- The current description needs modification – “IRI < 4 or surveys as per the operational manual.” In description only the criteria for good condition (IRI < 4) is mentioned. As PWRD doesn’t have any operation manual, thus the criteria for fair condition cannot be defined. Hence, with current description this PDO can only be assessed partially

Definitions to be revised: Good condition < IRI 4 and Fair condition within IRI 4-6

Secondary road network in good or fair condition.1 [baseline: 25%; target: 40%]

1 Good condition < IRI 4 and Fair condition, IRI 4-6


Original Indicator Suggestion(s) Justification(s) Modification(s) Revised IndicatorReduction in travel time on the project corridors2 [baseline: 0%; target: 20%]

To be Kept - Highly relevant to achieve enhanced connectivity

No modification

Improved Asset Management [baseline: 0; target: 50]

To be modified - Highly relevant to aid PWRD in effectively manage Road Network to enhance connectivity. However, after examining the procedures and documents being used by PWRD, Bank task team has concluded that they are not following the PBMC method, but following a Volume based BOQ method and is also not funded by the Bank.

The sub-indicator “using a performance-based or other system of maintenance contracting for state roads;” may be removed as the activity is not funded by the project and is beyond the control of the project.

Improved Asset Management 3

[baseline: 0; target: 40]

Safety Rating of project corridors 4

[baseline:10%; target: 40%]

To be dropped Road Safety Rating cannot be an outcome indicator as the PDO is focused on achieving connectivity.

Intermediate Results Indicator

Intermediate Results Indicator (Road Improvement Component)Road Improvement and rehabilitation of 500km core network roads [target: 500 km]

Description & Target to be modified

- Highly relevant to achieve enhanced connectivity

Road improvement and rehabilitation of roughly 1000km core network roads has been planned. Hence instead of 500km,

Road improvement and rehabilitation of core network roads [target: 1000 km]

2 Current average speed for cars, buses, and trucks is around 30km/hr, 25km/hr, and 20km/hr, respectively3 Sum of the districts (i) preparing annual maintenance plans using the asset management module of APCP; (ii) having a web-based system allowing road inventory and condition data for state roads for public viewing; and (iii) using computerized workflow of APCP for project management. Maximum value of this indicator could be 3 times the number of districts in the state, i.e., 81 (three times of 27 districts).4 This indicator will apply to the 300km roads for widening and strengthening on which the road safety countermeasures will be applied. % of km having 3+ iRAP star rating.


Original Indicator Suggestion(s) Justification(s) Modification(s) Revised Indicatorthe target may be changed to 1000km to reflect the current situation.

Pilot projects on innovative design of bridges [target (no of bridges):10; baseline: 0]


Bridges are highly relevant to improve connectivity. However, “Innovative technology” not highly relevant to enhance connectivity.

The indicator may be renamed to “Pilot projects on bridges.” Also, the targets may require modification to improve the measurability. Currently 14 Bridges are included with a span length of roughly 700 m. Therefore, targets may be revised as follows:Y6 – 150m bridges completed.5

Y8 – 700m bridges completed.

Pilot projects on innovative design of bridges[(Y6): 150m bridges completed; (Y8): 700m bridges completed]

Intermediate Results Indicator (Road Sector Modernization & Performance Enhancement Component)

Increased Maintenance Funding [target: 500 cr INR.]

To be kept. Essential for maintaining connectivity and effectively managing Road Network. Currently, Rs.600 cr had been allocated towards maintenance for this FY 2016-17.

None

Annual district performance reports and maintenance plans published [target: 50% districts]

To be dropped Districts generating Maintenance plans using RAMS are already being counted in the primary PDO indicator - “Improved Asset Management”. Hence this indicator may be dropped

5 The stage of completion needs to be decided in consensus with PWRD Bridge design team.


Original Indicator Suggestion(s) Justification(s) Modification(s) Revised IndicatorEffective execution of maintenance works6 [target: 50% districts]

To be dropped Since the maintenance will be done through the state budget allocation, performance of this indicator does not have any direct impact on the project.

Institutional Strengthening of PWRD

Targets to be modified. This is an indicator which is quite subjective. The targets may need to be modified to only those outputs which are relevant for institutional strengthening of PWRD within ASRP context

Revised targets proposed are given below:Y2- Road Fund Operational, Strategic Core network established.Y3- PWRD prepares a capacity building plan for the construction industry and starts its implementation Y4- PWRD adopts an HR and professional development strategy for its staff; Y5- Revised PWD Code accepted by GovernmentY6 - Road Board functioning as an apex body for the Road Sector;Asset Management strategy adopted by GoA;

Institutional Strengthening of PWRD.

Target-Y2- Road Fund Operational, Strategic Core network established.Y3- PWRD prepares a capacity building plan for the construction industry and starts its implementationY4- PWRD adopts an HR and professional development strategy for its staff; Y5- Revised PWD Code accepted by GovernmentY6 - Road Board functioning as an apex body for the Road Sector;Asset Management strategy adopted by GoA;

Training of PWRD staff7 [target: 25% staff.]

Target & Description to be modified

PWRD engineers required to be trained to effectively

The indicator description may be revised to “%age staff receiving

Training of PWRD staff8 [target: 25% staff.]

6 % districts contracting routine maintenance for a minimum of 20% of their network7 % staff receiving minimum one-week training annually8 % staff receiving minimum 2-days training annually.


Original Indicator Suggestion(s) Justification(s) Modification(s) Revised Indicatormanage the burgeoning network. However, the indicator needs modification to be more realistic.

minimum 2 days training annually”, as 7 days training is an unachievable proposition given PWRD’s current capacity constraints

Intermediate Results Indicator (Road Safety Management Component)

Development & Implementation of road safety strategy Target - 9

To be kept All the intermediate targets mentioned in footnote can be achieved within project closure date.

Road safety improvements [target: 300 km]


Road Safety Rating is not highly relevant to the PDO. Also, given the current progress of Component 1, iRAP assessment of 300km Upgradation Roads is an unrealistic proposal.

The indicator may be renamed to “Road Safety Improvement on selected Project Corridors”.Target: Y3 – 50 km; Y4- 100 km; Y5 – 150 km; Y6 – 200 km

“Road Safety Improvement on selected Project Corridors”.Target: Y3 – 50 km; Y4- 100 km; Y5 – 150 km; Y6 – 200 km

9 (1) Process initiated to prepare a road safety strategy; (2) GoA adopts Road Safety Strategy; (3) Road safety integrated in engineering tools; (4) Safe Road Demonstration program implemented

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