India - Gujarat Rural Roads Project (Credit 1072-IN) : supervision mission of C.J.D. Lane and C.S. Nawathe highway engineers

 73081 G...~;:tBB.B.I. ".B.!"i. Rf.ib.._".8..QB.Q§ ..".eB.Q.~.~.!;;:T. ( ~;r.:.!:.1.g.t.1:,"".~"9Z;:k::IN.) 1. This document records the discussion and findings of a mission to Gujarat with subsequent discussions in Delhi from February 11 to 17, but is not binding upon the Bank until confirmed in writing from Washington. The mission wishes to thank the Honourable Minister, Shri Dolatbhai Parmar for his time and interest in the project which was crucial in moving it forward, and also to thank Secretary Iyengar and Chief Engineer Trevedi and his staff for their attention to the mission. The mission is also grateful to Chief Engineer Doshi for the opportunity to attend and to address the Workshop on Hotmix Plant at Surat. 2. There are currently three executive engineers (ExEns) and full staff working under the Superintending Engineer (BE) AM Parekh, engaged in project preparation. Plans, estimates and draft tender papers are ready for 266 jobs, with survey, plans and estimates ready for a further 250 jobs. This is a good basis for a take-off. However, it is essential that independent Chief Engineer takes over the leadership of the West Bengal project without further delay. Detailed action is required on various points (see Annex 1 attached) but the documents are satisfactory. All documents for operations being performed for the first time should be cleared with New Delhi Office. Once procedures are established, checking would be on a random basis after tendering, except for large packages or «(:?qui pment. 3. In discussion with Secretary R&B it was decided to eliminate "package and 51 ice" 'fn::>m the contracting methodology, though it may be p(::>!Eisi bl e in l.:\ter-' yec:,r's to gr'oup what are prese.nt 1 y descr'i bed as packages to achieve even larger packages. This decision reduces at a stroke the number of agencies to be fixed in the first year from 266 to 64. The missioli is pleased to note that 35 out of 64 packages are "composite", that is to say, without horizontal slicing. These two factors demonstrate GOG's commitment to the objective of more efficient contracting methods, and so early in the project, it is greatly to be welcomed. 4. The prequalification procedure will now be separate from tendering, and criteria are being established (see Annex 1). However, to achieve an immediate floatation of tenders, nine packages will be offered as soon as possible, using an agreed concurrent prequalification procedure.  - 2 _.. 5. The credit of SDRs 101 million C$ 120 million approx.) was approved by the Bank's executive directors on February 17, 1987. Signature is expected to follow in two weeks with effectiveness being declared by the Bank's legal department iollowing clearance from GOI, in about two to four months. On that date a sum of $ 5.3 million will be deposited with the Controller of Aid Accounts, Delhi. A reimbursement claim under the retroactive financing clause for project preparation expenses should then immediately be forwarded using a statement of expenditure CSOE). The type of form and the procedure for SOEs will be explained in the Disbursement Letter, to be forwarded to you shortly by Mr. Mathew of the Bank's Disbursement Division. Payment will be made to GOI from the revolving fund. Then at intervals to be agreed between GOI and GOG, a transfer of funds to GOG Finance Department, equal to 70% of the value of disbursement made from the revolving fund, or from Washington direct, will be made. The progress of the effectiveness procedure can be monitored through Mr. Nawathe, who will be expected to nudge it along. 6. Most matters of detail are described in Annex 1 which shows status and action required. In most cases supervision missions will attempt to leave an aide memoire befere leaving India, and informal comments are welcome as soon as possible, particularly where it does net correctly describe what was discussed. The aide memoire will then be revised in Washington and forwarded under a covering letter from the Division Chief to the Secretary R&B, with copies to MRD, Delhi, which confirm the decisions of the mission. The Bank would appreciate a reply to the Aide Memoire, within two months, with a line-by-line response to the "aetion required" column of Annex 1, stating actions taken or proposed to be t<7i\k€~!n • 7. ORO will shortly call a meeting with GOG officials to finalise TORs for this study. Bank may expect a copy by the end of March. Once TORs are agreed, GOG should develop a short list of firms to be invited to submit proposals for the Bank's concurrence. Mr. Nawathe could assist with names of firms undertaking this specialist work, or an advertisement can be place in one national and one Gujarati newspaper. Expressions of interest have been made to the mission by Mr. Kadiyali of Consulting Engineers Pvt. and by ORG, which have been referred to GOG.