India - Rajasthan State Highway Project

Report No. PID5676 Project Name India-Proposed Rajasthan State (@+) ... Highway Project Region South Asia Sector Transportation Project ID INPE50640 Borrower Government of India (GOI) Beneficiary Government of Rajasthan (GOR Responsible Agency Public Works Department (PWD) Government of Rajasthan Jaipur, Rajasthan Attention: Chief Engineer Date Prepared 07/30/97 Projected Appraisal Date 05/01/98 Projected Board Date 09/15/98 Background. The Government of Rajasthan (GOR) is seeking the Bank's assistance to improve the core road network in the State. In order to select the priority investments, the GOR completed in 1994 a comprehensive Strategic Options Study (SOS). The SOS identified about 2,500 km of State Highways (SH) and Major District Roads (MDR) with high density traffic which have been prioritized for upgrading and rehabilitation. The GOR has engaged Consultants to conduct feasibility studies to improve about 1,500 km of these priority roads. In an effort to start addressing road financing for improvement and maintenance, the Government of Rajasthan has established a State Road Fund and is now attempting to reverse the trend of deteriorating allocations (quantity and quality of expenditures) to improve road management. Finally, efforts are underway to assess institutional capacities to improve road management. Project Objectives. The main project objectives are to: (a) reduce transport costs and transport constraints on economic activity, (b) improve the GOR's institutional capabilities in the sector, (c) improve riding quality and capacity of selected segments of the state's core road network, (d) reduce backlog of periodic maintenance on the core road network, (e) improve PWD organizational structure in place, and (f) establish effective systems and procedures for planning, budgeting, procurement, contract administration, monitoring and financial management and stakeholder consultation. Project Components and Estimated Costs. The Project's tentative total project cost will be US$ 500 million in 1997 prices, including contingencies. It would finance (i) the upgrading and rehabilitation of about 1,500 km priority roads, (ii) design and supervision, (iii) increased attention to road maintenance  operations through support of a periodic maintenance program of about 4,000 km, and (iv) technical assistance to strengthen the State's Public Works Department capacity to manage the road network. Rationale for Bank Involvement. Based on previous Bank experience in India, the Bank has developed a state level approach to improve road investment, management and financing which will be reflected in the project design and implementation. The Bank is emphasizing the employment of consultants and contractors on a competitive basis to carry out appropriate and efficient construction and maintenance works during project implementation. The cross-Sate experience is providing insights of ways to internalize national level policy changes into state level programs for improved finance and management in the road sector. Project Financing. The proposed IBRD loan would finance a portion of the total project cost. Bank funds would finance eligible expenditures, excluding taxes and duties. Institutional and Implementation Arrangements. The project will be implemented by the Rajasthan Public Works Department (PWD) over a 5 year period. A Project Implementation Unit has been established to monitor and evaluate the work of the Project Coordination Consultants (PCC) engaged for project preparation and to assist PWD during implementation. An empowered tender committee will be proposed to oversee procurement actions. Financial management of project accounts and external auditing will be developed to monitor each project component and its compliance with the loan agreement. Construction supervision consultants will be engaged to assist in project management, supervision and quality control of works. Sustainability. The sustainability of the project depends on increasing and maintaining road maintenance allocations and spending to cover at least 80% of the standard requirements. Also the project will have to address institutional development issues identified during preparation. Benefits and Risks. the main benefits are: lower transport costs for freight and passengers of motorized and non-motorized vehicles, improved road transport corridors and connectivity of road network, and improved management of road sector resources. The main risk is that inadequate maintenance of road assets prevails, further eroding the capital invested. This risk will be minimized by ensuring that the maintenance budget is increased, making the road fund effective, improving road management, and evaluating performance indicators. Contact Point Juan Gaviria, Team Task Leader The World Bank 1818 H Street, NW Washington DC 20433 Tel: 202-458-5796 Fax: 202-522-1500 - 2-  Note: this information is based on an evolving project. Certain components may not necessarily be included in the final project. Processed by The World Bank Infoshop week ending November 14, 1997. - 3 -  Annex Environmental Assessment Major Environmental Issues: The project is an upgrading of existing roads and work will generally take place within the road reserve. The project is therefore unlikely to have any significant direct adverse effects on the environment. Any sensitive environmental areas identified along the proposed alignments will be assessed in detail. Other Environmental Issues: Road works will be implemented along the existing alignment and within the existing right-of-way. Thus only minimal impact on land use is expected. Environmental issues are: (i) potential air and noise pollution during construction and during operation in urban areas; (ii) potential spill of fuel, lubricants, and bitumen and emission of dust particles from crushers and bitumen plants during construction; and (iii) potential encroachment of the right-of-way by squatters. By contrast, the design standard adopted should achieve significant environmental benefits by reducing traffic congestion and dust and by afforestation. The project will incorporate measures such as careful location of quarries, borrow areas, labor camps, minimize collection of fuel wood, establish speed breakers, etc. Proposed Actions: A Sectoral Environmental Assessment (SEA) has been initiated in accordance with the Bank's Operational Directive 4.01 to develop simple, standard and practical recommendations for environmental considerations to be included in the design and construction of the project. Recommendations from the EA report will be incorporated in project documents and designs to ensure environmental safeguards including (i) proper use of existing borrow areas and quarries; (ii) landscaping of borrow areas, quarries and spoil tips; (iii) development of proper storage areas specially those for diesel fuel and bitumen; (iv) rehabilitation of right-of-way through replanting; (v) minimizing soil erosion; and (vi) protection, enhancement and proper management of sensitive habitats. A baseline Resettlement and Rehabilitation (R&R) survey is under way and an R&R Action Plan will be prepared prior to appraisal in accordance with the Bank's Operational Directive 4.30 and 4.20 to ensure adequate and timely compensation of the Project Affected People. The Plan will be reviewed by the Bank and agreed with GOG. Justification for Environmental Category: Since the majority of the proposed work under the project will involve minor realignment of the existing roads, repair of damaged pavements, including strengthening and widening, installation of drainage structures, and is restricted to the existing right-of-way, - 4 -  direct impact if any will be spatially restricted. Adverse impacts, if any, are expected to be minor. - 5 -