India - World Bank highway mission : aide memoire (June 7 - July 5, 1988)

., - "t!..".L:':w... 73092 1 .. J \ INDIA WORLD BANK HIGHWAY MISSION ,JUNE 7 - JULY 5, 1968 AIDE I1EI10IRE 1. Introduction 1.1 A mission comprising Messrs Schulz (economist), Ragsdale (environmental specialist) and Mulligan (engineer) visited India between the above dates in connection ~ith the following projects: ti) proposed States' Road Project; (ii) proposed second National Highway Project; (iii) National Highway Project (Loan 2534-IN); (iv) Sujarat Rural Roads Project (Credit 1757-IN); and Iv) Bihar Rural Roads Project (Credit l072-1M)' Mr. Nawathe (Engineer) of the Bank's New Delhi office, accompanied the sission and !'Ir. Blackshaw (economist) join~d the mission for the visits to Patna and LucknoM. 1.2 , . The ~ission wishes to thank the officials of all the States vi si ted (.IIndhra Pradesh, Karnataka, Rajasthan, tlaharashtra, West Bengal, Bihar and Uttar Pradesh), as well as those of the centra! Ministry of Surface lransport (MOST) for their efforts in facilitating the si£sion's field visits and for arranging meetings. Their assistance is greatly appreciated. 1.3 The following Aide Hemoire represents the mission's findings. They are subject to confirmation by the World Bank. A. Proposed States' Road Project " 2.1 The sission appraised this project comprlslng road works in the States of Rajasthan, l1aharashtra, Uttar Pradesh and,Dihar in January/February 1988, and on th~ basis of 'data then available, prepared ;-1·3.1./3 its appraisal report. HOMever, subsequent developments have prompted some changes in project composition. These, as well as current project status, rl.t,.1.13 are dealt with below: K.I.1.13 Rajasthan H.c./' 13 }f.b.I.13 ~.2 lhe program of works and project cost estimates are unchanged. Bidding documents are ready, but before issue, a copy shQuld.be given to the ~ank tor clearance. Contractor prequalification clase~ an July 15. However. at the time of the mission's visit. 30 fires had bought the . documents. 22 of whom had responded. Land needs to be acquired on one ~ \ ...... ., , \, ...v! \. , \to .' , \" ' "." 14 - 1.3 HGSr 15 maKloa etforts to make up tor some of the lost time, and ha asked each contrictcr to proVide a revIsed program ot Norks plus an eauipment schedule showlno how the works may be completed within the allotted tlme trames. Ihess programs, due at end-June, are still belng recelved, and MUSI is requested to keep the Bank intormed of the likely impact ot the programs on ioan disbursement. ~.4 In the meantime. and on a monthly basis, Mr. Nawathe of NDO will monitor With HOST the progress of payments to the contractors, and ensure that disbursement applications are made promptly to the Reserve Bank of indla fQ~"payment trom the revolving fund. 2.5 In this cDnnection if shOUld be noted that up to 31/12/1988, reimbursement tor construction works will be at the rate of 80% and thereafter at a rate to be calculated so that the remaining loan proceeds for this category will spread over the project period. Bi har Rur OIl Roads 2.6 fhe credit closed on June 30 and no further commitments will be entertained. However, it is understood from discusslons in Patna that the credit amouant WIll be fully depieted with current commitments by December 31. GUB is preparing a peR in accordance wlth guidelines already provided bv an earlier mission. 2.1 rhe reouirement for technical audit of 10% of the project roads has not been ~et satisfactorily by the Vigilance Department of the Home ~ftairs Ministry~ and the mission agreed. that. on a trial hasIs, the Planning Department of PWD should carry Gut some audits. Hr. Nawithe will monitor progress. 2.8 Th~ mission was unable to visit Sujarat an this occasion, but a recent supervision mission by Mr. Nawathe of RMD (May 13-16) made a comorehension review of programs. Up to end-"arch 1988 the value of works completed was Rs. 23.7 million result1ng in withdrawals from the revolving fund at Rs. 12.5 million. 1his amount is well below expectations. 2.9 Howeyer, the revised procedures Nhich now cater well in advance tor contractor prequaiification Hill result in shorter lead times for contract awards for the annual programs, and materially improve pertormances atter the monsoon is over. Mr. Nawathe will continue to monitor progress. 2.1u fhe maintenance planning study provided in the project shDuld be held Dack until a draft of the revised terms af reference. presently under preoaraticn. are available. They Hill be forwarded shortly.