India - Gujarat Rural Roads Project (Credit 1757-IN), June 1992 supervision mission draft aide memoire

 73077 lNDIA GUIARAT RURAL ROADS PROJECT CREDTT 1757 IN rune 1992-SlIpervision Mission Drait Aide Memoire 1. Introduction: 1.1 An International Development Agency mission, led by Mr. C.S. Nawathe, Highway Engineer, visited Gujarat from June 7 through 16, 1992, to carry out a supervision of the above project. The mission held meetings with the Minister, Rand B Department, Secretary and officials of the Roads and Buildings Department, and visited works in four Districts. On its return to Delhi, the mission held a meeting with the Deputy Commissioner, Department of Rural Development, Ministry of Agriculture, Government of India . 1.2 This Aide Memoire summarizes the missions findings and recommendations as discussed during the wrap-up meetings. 1.3 The mission records its appreciation for the assistance and warm reception received from all concerned, in articular for the arrangements made to visit the work sitesinspite of the scorcning hea . A list of officials met is enclosed as attachment 1. 2. Back~round : 2.1 The Credit 1757-IN for 101 million SDR (US $119.6 equivalent) was signed on May 12,1987, and provided for the following : i) construction, reconstruction or improvement of about 4040 Kms of Rural roads in seven districts of Gujarat where the dairy industry predominates; i i) procurement of road construcNon equipment to facilitate the implementation of (i) above; iii) construction of offices, workshops and other project accommodations; i v) technical assistance and engineering services for project management and training; and v) maintenance Planning Study and Road Safety Program. 2.2 During the two year gap between appraisal and project signature, some Panchayats had completed about 350 kms of 100 roads, reducing the total program to about 3700 kms . Although the project became effective in August 27,1987, it could not gather momentum initially for a period about two years, due to severe drought in the state. Since April 90, the project is progressing very weI!. Encouraged with its good performance and confidence of exceeding the physical targets within the project period, GOG has planned to expand the scope of the project to 7500 kms of roads in thirteen districts, including six additional districts. This also coincided with the sharp decline in the value of the Rupee against the SDR, resulting in the availability of credit to finance the reformulated progmm. The March 1991 IDA Supervision mission reviewed the proposal and after being satisfied that it was in tunc with the content and the original objectives of the project, agreed to recommend it for approval of the Bank Manage ment. ;: 2 2.3 According to the Bank's current policy, the project restructuring involving long extensions of the implementation periods are discouraged. As this expanded program needed extension of the seven year project by further three years ( beyond the current closing date,i.e. Dec 31,1994), it was unlikely to get the Board's approval, the Bank management dropped the idea of Project Restructuring. After considering the reasons, the Bank has, however, on May 15,1992, agreed to the expansion of the program to the other six districts of Gujarat, with only a marginal increase (10 %) in the total length to be constructed under the project, against 7500 Kms contained in the GOG's proposal. If the project maintains a satisfactory progress and quality of implementation, the Bank would review the position a year before the closing date and decide on ,the most appropriate arrangement to continue the program beyond December 31, 1994. New Additional Works: 3. GOC has already included a program of 1875 Kms of additional roads, estimated to cost Rs. 1067.6 million in the State's annual budget for 1992 -1993. The Administrative Approval (AA) has also been given for some works and the Survey and Detail Engineering have been completed for part of the program. Contractors have been prequalified and bids are being invHed shortly so that the works can be started immediately after the end of coming monsoon. Civil Works: 4. Progress of the Works 4.1 By the end of April 1992, procurement actions have been completed in respect 902 roads (3661 kms), out of 909 roads (3694 kms) included in original program. Out of the 902 ongoing works, 548 roads totalling 2221 Kms have been completed and the state of progress in other works on hand (354 nos 1440 kms) amounts to completion of 500 kms. This amounts to 74% achievement of the original program, reduced by 340 kms constructed by the Panchayats, even before the project became effective. Table 2 gives a detailed progress by the end of May 1992. 4.2 The total Buildings program envisages construction of 30 Offices (3 circle, 7 divisional and 20 sub divisional), 128 Residential Quarters, 5 Godowns and some workshop sheds. Out of this, 7 office buildings are completed and the progress on other offices (16), residential buildings, (110) and godowns (2) is 82 %. The work of workshop sheds and the remaining buildings would commence as and when land becomes available. 4.3 Out of the total project expenditure of Rs. 1164 million, the expenditure eligible for reimbursement is Rs. 1050 Million (89.74%). Till date, the total claims lodged and settled amount to Rs. 855 million, or 81 % of the reimbursable expenditure. To the end of March 31,1992, the project has disbursed 31.51 million SDRs. Apparently, about US $ 3.5 million worth of claims could not be adjusted in FY 92 due to the delay in submission. Revised Implementation Scheduk: 4.4 Considering that the project restructuring is not envisaged at this stage, and taking i'nto consideration the progress made in completing the detail Engineering for the additional road works in each of the 13 districts, the implementation schedule is being recast. The Govt of Gujarat is planning to complete 6300 kms by the end of December 1995. At the time of review in December 1993, except for the award of contracts, all actions including prequalification would be completed for the balance 630 kms ( which are not included in the current budget). If the Bank does not agree to grant a year's extension, or decide about the best possible way to take up the . " 3 balance program as indicated in headquarters telex dated May IS, 1992, GOG would finance completion of the incomplete works from their own funds after the closure of the project. The main purpose of this strategy is to maintain the tempo of the project. The revised schedule is given in Tables 3 and 4. Accordingly, only about 65% of the credit would be utilized by the closing date of December 31, 1994. AdministraJive Approval (AAl.TechnicaJ Sanction (TS) ; 4.5 Of the planned 6300 kms program, road works totalling 5670 kms have been included in the State's Budget and 4000 kms have been given Administrative Approval. All 3694 Kms of the original program have been sanctioned technically. The process of giving AA & TS was slowed down pending the Bank's approval to the restructured project and now that the position has been made clear recently by the Bank, further process would be expedited, on the basis of the strategy proposed to be adopted by the State Gov!. Procurement Status; 4.6 For the additional 57 Road and bridge packages (valued at Rs. 700 million and involving 373 roads totalloing 1355 Kms), 92 contractors have been prequaJified. Most of the bids would be invited by the end of this month and contracts awarded by the end of September 1992. 4.7 Two road packages from the original program, involving 7 jobs of 40 kms length at an estimated cost of Rs. 40 million could not be finalized due to litigation challenging the award of contract. As soon as the matter is decided by the court, the award would be made. 4.8 For Buildings, the procurement actions for a few offices, residential, buildings, godowns and workshop sheds are held up due to non availability of land. Detail Engineering ; 4.9 The mission has observed that during the project preparation, enough details are not worked out for the geometric design of roads involving transition curves, superelevation, vertical curves etc., presumably as large number of roads works are of the category of improvement of existing roads. However, these aspects should not be neglected. 4.10 The mission also noticed that on some roads, culverts or causeways were deleted while giving technical sanction, mainly with a view to limit the total cost to the appraisal estimates. These works have however been sanctioned subsequently, but too late, and not before completion of the main contracts for the road works, posing problems of executing these works in isolation. Similarly, it was observed that places, where dips arc technically most appropriate, pipe culverts have been wrongly adopted. 4.11 For narrow road sections passing through congested villages, provisions for raising of road level and construction of longitudinal built up pucca drains is necessary. If this is not possible, then asphalting of such sections could be deleted. 4.12 Some of the road improvement treatments proposed two to three years earlier, are no longer valid due to rapid deterioration of these roads. Under the situation, some modifications are necessary at the time of actual construction. ... - 4 Quality of works inspected 4.13 The mission visited 39 work sites involving about 170 kms road works in different stages of construction. The mission was satisfied on the general improvement in the quality of works. However, at present, the State is passing through a severe drought situation and due to the non availability of water, even for drinking purposes, construction activities have to go without water. Under these circumstances, both the department and the contractors are working under great constraints and this has affected the progress as well quality to some extent. Otherwise, the overall progress would have been faster. 4.14 Some of the items which require more attention are: achieving proper grade, camber and superelevation in the formation: providing extra carriage-way widening inside the curves; form finishing of concrete for the blocks around the pipes and coping over head waBs in hume pipe Culverts; control over size and gradation of the stone metal used in the Water Bound Macadam construction; and re-sectioning of the old WBM IBT surface which has failed and gone out of shape. 4:15 On the quality of buildings under construction, the mission has following observations: for the residential building at Palanpur, the wood work is inferior and joinery is poor; the finishing, especially, around the windows needs to be improved; and the window grills do not fit properly and welding is flimsy. All grills should inspected thoroughly before their acceptance. Land Acquisition: 5. The Special Land Acquisition cells are not functioning satisfactorily due to shortage of staff, especially the cadestal Surveyors. The field Engineers are, however, arranging to get the lands mosny through private negotiations and work of 10 packages, part of the 87-88 program could not be finalized due to land disputes in some stretches. Equipment: 6. No further progress has been made in procuring additional machinery mainly because GOG has not yet finalized the proposals to acquire the Stone Crushing Plants. Training: 7. Though the need for dC'monstration works was accepted, delay in clearance of restructured project has resulted in postponement of such works.  5 Staffin~ : 8.1 About 70 vacancies in the post of Junior Ellgineers are existing till date. This amounts to 28% of the sanctioned posts. Although the Candidates have been selected by the State Public Service Commission, some time would be required before all the vacancies are filled in. 8.2 Mr RH.Patel, Chief Engineer for the last two years, would be retiring by the end of this month. While appointing his successor, the government should select a person who would remain till the end of the project. Studies: 9.1 Due to the delay in approval and clearances involving different State departments, Central Govt and the Bank, the Study has received a considerable setback. The agreement with the Consultants (RITES, SWK and CRR!) has not been signed so far, as the Firm has demanded an increase (9.76%in the payment in FOREX and 19.52% in the payment in Rupees) in their price, which was negotiated almost two years ago. Their present demand, however, is still less than their original bid. Since the consultants have been corresponding only with the lower level officials in the past few months, GOG has started doubting their interest in carrying out the study and they wou ld be making a final atlempt to take up the matter with the consultants and decide the future course. The following table indicated the present status of the consultancy proposal: Sr. Nu. Description Date Pound Indian Sterling Rupees 1. Original price May 10, 90 109,810 6,924,765 2. Negotiated price July 7, 90 87,012 5,365,900 3. Now demanded price April )lf,92 95,505 6,416,115 9.2 This study, which was to be completed by December 31, 19~;8, has been inordinately delayed . GOG has therefore been requested to take prompt actions in signing the agreement and commencing the study. nudget for FY 1992-93 : 10. During the current year, an allocation of Rs. 324.4 million has been provided for this project. Further, the state Govt has reached an understanding with NDDB and accordingly, almost an equal amount would be made available. Further, the State Govt would get an advance from the Special Account set up by the World Bank for this project. The R&B Dept! has therefore not to worry about funding of this years ambitious program.  · ... ~ . '. 6 Road Maintenance: 11. Some ro<lds constructed in the past are now being maintained by the R&B Department. The mi'ssion inspected a few roads and was satisfied with the maintenance. The R & B Dept! should maintain road package-wise statements indic<lting the dates of completion, start and f,jnish of contractors Defect liability period, nature of defects noticed during the period and compliance by the contractor. The Executive Engineer sh<lll be responsible for the regular inspection and pointing out defects to the contractors; and will ensure their compliance during the period . Every quarter, a statement should be prepared to indicate the road length taken over by the department for maintenance. On the basis of this statement, funds at the norms prescribed by the Ninth Finance Commission should be demanded from the Government for maintenance. Attach CSN/ej I [q.1.U3 '. Attachment 1 INDlA GU[ARAT RURAL ROADS PROJECT CREDIT 1757-IN [une 1992 - Supervision Mission List of Principal Officials Met Governme nt of India: 1. Mr. R.K. Agarwal, Deputy Commissioner, Department of Rural Development, Ministry of Agriculture, Government of India. Covernment of Gujarat : 1. Mr . Dinshaw Patel, H'ble Minister, Roads and Buildings; 2. Mr. H .P. ]amdar, Secretary, Roads and Buildings Depdrtment; 3. Mr. R.H. Patel, Chief Engineer, Rurdl Roads Project, Gandhinagar. 4. Mr. P.N. Patel, Superintending Engineer, Candhinagar. 5. Mr. V.]. Barot, Superintending Engineer, Palanpur. 6. Mr. M.M. Rana, Superintending Engineer, Rajkot. 7. Mr. P.R. Shah, Superintending Engineer, Vadodara. H. Mr. CN. Ambalia, Superintending Engineer, Mechanical. " INDIA GUTARAT RURAL ROADS Credit 1757-IN Tune 1992 -Supervision Mission List of works visited District Package No lob No Length Km Amadavad AP19 A 30,31,33 11.80 Subtotal 1 ;i 11.0 Banaskatha BP 2 &4 B44 2.55 BP 10 B6, B9 18.27 BP 11 B 12, 14 6.92 BP 38 B 209 9.44 BP 59 B 10 3.65 BP 60 B7 16.30 BP 64 B 35,36 11.92 BP 72 B 195, 199 5.28 BP 70 B 170, 172 2.95 Subtotal 2 14 77.28 Mehasana MP46 M 107,110 4.37 MP 19,20 M 106 5.60 MP39 M48 5.25 MP40 M 128,129 8.05 MP46 M 107,110 4.37 MP49 M 198 2.69 MP50 M200 5.83 MP51 M 223, 224 8.50 Subtotal 9 12 44,66 Sabarkatha SP 27 S 185, 188 61.66 SP34 S 63 3.80 SP40 S 58,60 5.80 SP 36 S47 1.50 SP47 S 152, 157 11.50 SP48 S 179 9.10 SP49 S 162 3.15 Subtotnl 7 10 36.51 Grand Total 26 39 169.45 l3uldings nt Mehasan_ a and Pd!anpur.  • Table 1 INDIA GUJARAT RURAL ROADS PROJECT CREDIT 1757·IN June 1992· Supervision Mission Statement Showing Investment Costs of the Original/ Proposed Revised Project As per SAR AS per Revised Project Particulars Scope Base Physical Financial Total COSt Scope Base Physical Financial Total Kms Cost Conti Conti. Kms. Cost Conti. Conti Rs Millions Rs. Millions A. Civil Works -'Y!lv l~" \ 'l~ . ~, t- 1. Works 4042 1178.1 117.81 397.29 1693.2 6300* 2-2·86.0 1;;6.3 ;)96. Y 2839.0 2. Land Acquisition 22.2 2.22 30.7 ' • '\ 74.2 Sub Total 1200.3 120.03 4 6.28 03.57 1723.9 '., -0 1.8 :' '-;t, 'i-347.8 ". \ ~ -6:- 162. 5 2 " I ~ 402. 9 6.2 - 2913.2 , B. Eng. Sup. 144 1 14.4 55.7 214.1 264 .6 0.0 41.0 305.6 _l A~~ C. Equipment 185.2 9.26 29.84 224 .3 124.9 6.9 13.8 D. Buildings 25.5 1.27 --- 4,43 31.2 30.3 3.0 6.8 40.1 1 E. Studies 23.2 1.16 2.64 1 27 20.0 1 2.0 2.0 24.0 ;;._~_r \~'-' .~ .~ Total 1578.2 146.12 496.18 2220.5 m7.6 174.4 466.5 -,428.5 ~ Wotk will'e0ffimcoceJn_ 551G...kms b-¥-Decemb~F 9~d fe~e-balanceJengili, pr..oc.urement-action eYc1:1Jt fOf the awara ' C.OIltrac~ would \:)~ compleled..h¥-.D.~ember 1993 review, when the future course i.e. either extension o.uepeateI: pro.jeGWll.oul-d-be-decided. CSN/ej  • ~ I • I , ., " Table 2 " INDIA GUJARAT RURAL ROADS PROJECT· CR 1757-IN June 1992 - Supervision Mission Progress Report for the period ending May 1992 'S.No. Details Package No. Job No. Length Categorywise Length of Cost in Rs. Million I Remarks I NC IRC lIMP Civil Total Km. I I 1. Estimates I I a. SAR 287 1025 4042 1031 988 2023 1725 2220 By Dec 31,94, targets b. Current revised ~~ 36e \,:1'(; 1§.:r5 6300 14J,"}~1 445 1 '")1684 3o~ llii 1~' ~82'7 ~ ~¢O 3429 are 5750 kms. II. Civil Works A. A.A.rr.S./Procurement I a. SAR targets 4;92 287 i 1025 4042 1031 988 2023 1067 b. Progress 4/92* ' .~ - i. AA ~ ..3 3-20 1 ~"l 1300...'S;'1 5570 p.'~ 824 ' :...·~W2§) l.:..t. " -:1-84-1 \912'75 ii. T S "y<?> ~9 l~ 909 S -::- I' 3694 1 ").\3 ~' ·~tO~9 o 1 ·84< 1 I::;' 1182 iii. Procurement 'Ot', 237 'Hf.\ 902 t._ 3661 • t' 818 1'''''11016 _.:~, 1827 "S1500 B. Physical Completion ~ a. SAR targets 4;92 213 760 3000 765 735 1500 1280 lb. Progress \ ~_ 105 G. ..,.4-30 2UQ n2.1 ~ 500 - 4-70 I b.:t'" 1251 NA I :~, III. Financial I I a. SAR targets 4;92 ! 1280 1649 b. Actual4/92 985 1164 ** c. Claims lodged " ~.(~ 855 d. Disbursement ' 855 ' 0(1.- - :1 * The process of giving AA and Technical Sanction was withheld by GOG pending the Bank's approval for the restructuring proposals. ** By 31.3.92, the total disbursement amounts to Rs.31.5 ~·lSDR. Targets by project closing date are 65MSDR. CSN/ej  I .' .. .f ' Table 3 GUJARAT RURAL ROADS PROJECT - CREDIT 1757-IN June 1992 Supervision Mission Physical Targets and Financial forecasts Particulars Units July '87 FY FY FY FY Total Remarks (targets by .... to--M-dr'-92 ..... - , , .. 92-93 ~ ~ I t "- 93-94 94-95 95-96 lhe closind dale of Dec 31, 94 ). Physical Targets Roads " 1. Annual kms '2..~'!Js~9 Hf1-2 1009 1070 , 890 6300 2. Cumulati ve kms. ~ -3331 ~ "' 4-340 ... ~ 6300 5750 I -' b v ~-.'" . - - f -,1\ -:;. <..... Reimbursible RS. M l "'!t "t ~ ~ 489.7 530.56 564.1 ' 485~26 31-108042 2552.14 Expenditure ~~ ,-I. r '. ,"" Reimbursement Amounl RS.M /11 f; _,~_ 8@6.1 436.9 47-3.05 502.7 43-2.'42 2633.8 2075.7 10 1 Equivalent Cumulative MSDR MSDR 3';"2.3 ~ '··~H .7 \(,· fu~2-:6 1 .1 \"'4-3.2 ( {2:-3 ..I+.2 6" ·~'g9':3 -55.8 .. ~'r 6!tl • Fr,9.3 65 MSDR i " .H R. ~ - 9·3 8/ .7 . Forecast Rale of exchange Variable from 37.47 39.13 40.78 42.33 INDRs/SDR 18.94 to 34 CSN/ej .....  /' ,/ -~ Table 4 Page 1 of 3 INDIA GUJARAT RURAL ROADS PROJECT - CREDIT 1757-IN June 1992 Supervision Mission Cost Table based on June 1992 Mission Report Physical Targets and Financial forecasts Cost figures in Millions Period Units 87-91 91-92 92-93 93-94 94-95 95-96 Total Length of Road old Ian 1657 602 806 602 27 3694 Ian new Ian 266 407 1043 890 2606 Ian total Ian 1657 602 1072 1009 1070 890 6300 Ian Base Cost old 190 242 170 10 new 92 150 384 325 Price Escalation Factor 1.11 U8 1.25 1.31 1.36 P 723.00 210.90 394.12 398.40 514.17 442.13 2682.72Rs. 1. Ro~d and Q 506.10 189.81 354.71 358.56 462.75 397.92 2269.85 Bridge Work R 26.72 5.58 9.47 9.16 11.35 9.40 71.68 SDR 2.Eguillment Base Cost 32.50 F P=Q 12.00 1.80 38.35 52.15 Rs. Base Cost L P 25.00 25.79 26.00 76.79 Rs. Q 12.50 20.63 20.80 53.93 Sub IT 24.50 22.43 59.15 106.08 R 1.29 0.66 1.58 3.53 SDR 3. Buildings Base Cost 6.93 14.70 2.55 P 6.12 8.46 19.08 3.49 37.15 Rs. Q 3.06 6.77 15.26 2.79 27.89 R 0.16 0.20 0.41 0.07 O.84SDR Base Cost < 0.24 // .' t .... .. ... Table 4 Page 2 of3 Period Units 87-91 91-92 92-93 93-94 94-95 95-96 Total 4. Engineering Services F P=Q 0.25 0.25 Rs. Base Cost 21.8 . 38.42 38.26 38.26 31.71 L P 96.11 24.2 45.34 47.63 49.93 43.13 305.34 Rs. Q 38.44 19.36 36.27 38.11 39.94 34.5 206.62 Sub IT 38.44 19.61 36.27 38.11 39.94 34.5 206.87 R 2.03 0.58 0.97 0.97 0.98 0.82 6.35SDR Base Cost 0.842 2.946 5. I. Assist F P=Q 0.87 3.18 4.06 Rs. Base Cost 12 3.8 Studies L P=Q 1.17 13.32 4.484 18.97 Rs. Sub IT 1.17 14.19 7.66 23.03 R 0.06 0.42 0.2 O.68SDR 6. UnallQ£ated (including Physical Contingency 10% of Base Cost) 5.10 SDR* Total P'S (Rs .) 863.4 285 .6 489.7 530.56 564.1 485.26 3178.42 Rs ..... Total Q'S (Rs.) 573.3 252.8 436.9 473.05 502.7 432.42 (2076)*** Total R's (SDR) 11.7 12.6 12.3 11.2 79.3 SDR**** Cumulative R's (SDR) 31.5 43 .2 55.8 68.1 79.3 IND.Rs./SDR 18.94 34@ 37.47 39.13 40.78 42.33 /' .. Table 4 Page 3 of3 Note: Rate of Reimbursement Till From 90-91 91-92 (1 ) 70% 90% \ (2) Local 50% 80% \ (2) Foreign 100% 100% \ , (3) 50% 80% (4) Foreign 100% 100% (4) Local 40%. 80% ". (5) 100% 100% P: Expenditure admissible for reimbursement Q: Reimbursible amount in Rs. R: Equiv~lent of Q in SDR F : Foreign Expenditure L: Local Expenditure * Forecasts by December 31,1994, the closing date taken below . ** (2552) ***(2076) ****65,02 say 65 actual40@