Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) Second Karnataka State Highway Improvement (P107649) SOUTH ASIA | India | Transport Global Practice | IBRD/IDA | Specific Investment Loan | FY 2011 | Seq No: 9 | ARCHIVED on 09-Feb-2015 | ISR17868 | Implementing Agencies: Karnataka Road Development Corporation Limited Key Dates Key Project Dates Board Approval date:24-Mar-2011 Effectiveness Date:19-Jul-2011 Planned Mid Term Review Date:11-Nov-2013 Actual Mid-Term Review Date:04-Dec-2013 Original Closing Date:31-Dec-2016 Revised Closing Date:31-Dec-2016 Project Development Objectives Project Development Objective (from Project Appraisal Document) To accelerate the development of the Core Road Network through leveraging public sector outlays with private sector financing and improving the institutional effectiveness of the road sector agencies to deliver effective and safe roads to users. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component 1: Road Improvement Works (IBRD: US$260 million, GOK: US$94 million, Developer: US$249 million):(Cost $603.00 M) Component 2: Highway Financing Modernization: (IBRD:US$67 million; GOK: US$56 million; Developers/Financial Institutions: US$251 mil lion):(Cost $374.00 M) Component 3: Road Safety Improvement (IBRD: US$11 million; GOK: US$3 million):(Cost $14.00 M) Component 4: Road Sector Policy and Institutional Development. (IBRD: US$9.4 million; GOK: US$2.4 million).:(Cost $11.80 M) Project Management (This is not a formal component) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Unsatisfactory  Moderately Unsatisfactory Overall Implementation Progress (IP)  Moderately Unsatisfactory  Moderately Unsatisfactory 2/9/2015 Page 1 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) Overall Risk Rating  --  Substantial Implementation Status and Key Decisions This Implementation Status Report is based on the observations of the Implementation Support Mission during January 1-10, 2015. The Project Development Objective (PDO): Since the last supervision mission in June 2014, the project made progress in the ongoing item-rate contracts and the two DBFOMT concessions where the work has just commenced and in the associated LA and RR activities. However, the project is unlikely to achieve its development objectives within the closing date of the project, that is, December 2016, due to delays in procurement of balance civil works under the new item-rate contracts and co-financing packages. The turnaround strategy agreed during the last mission (in July 2014) essentially predicated on achieving the following three elements by now: (a) substantially complete the six ongoing item-rate contracts; (b) achieve about 25% progress in the DBFOMT concessions; and (c) complete the procurement of 3 new item-rate contracts and 6 concessions under the co-financing component. Implementation of this strategy is progressing but with varying degrees of delays in each of these three elements. The procurement of the new item-rate contracts and 6 co-financing concessions is now expected to come to the logical end of contract award/concession signing respectively in the next two quarters. In terms of other components, activities related to Institutional Strengthening made substantial progress in terms of procurement and the civil works bids for road safety demo corridor are still under evaluation. Based on this, the project could fall marginally short in achieving the PDO especially in the areas of the number of kilometers upgraded and private financing mobilized, by the current closing date in December 2016. In view of this, ratings of the achievement of PDO, implementation progress and project management are being maintained as Moderately Unsatisfactory. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  --  Moderate Macroeconomic  --  --  Low Sector Strategies and Policies  --  --  Moderate Technical Design of Project or Program  --  --  Substantial Institutional Capacity for Implementation and Sustainability  --  --  Moderate Fiduciary  --  --  Moderate Environment and Social  --  --  Substantial Stakeholders  --  --  Moderate Other  --  --  -- 2/9/2015 Page 2 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) Overall  --  --  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Achievement by GOK in generating at least US$500 million in new private sector capital for CRN improvement and management by end-of-project (EOP). (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 200.00 144.00 295.00 500.00 Date 24-Mar-2011 20-Jun-2014 01-Jan-2015 -- Comments Based on the figures noted from the financial closure of WAP 1 and WAP 2 concessions in December 2014, the concessionaires have mobilized private sector capital (debt and equity) to the tune of $151 mn. Earlier, KRDCL raised $ 144 million in four works [Chikkanayakanal-Tiptur – Rs 2260 million, Dharwad–Ramanagar – Rs 2230 million, Whagdhari–Ribbanpalli – Rs 2650 million, Part of SH132 in Bellary district – Rs 1520 million]. PHINDPDOTBL  15% reduction in Vehicle Operating costs and 25% reduction in Travel Time Cost on project corridors by EOP (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target VOC: $0.26 VOC:$0.20 Value -- -- TT: $0.074 TT: $0.06 Date -- 20-Jun-2014 20-Jun-2014 -- PHINDPDOTBL  30% reduction in road accident related fatalities on safe corridor pilots by EOP (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 31.00 -- -- 22.00 Date 15-Feb-2011 20-Jun-2014 20-Jun-2014 -- Comments Interventions for road safety pilot corridor (only one pilot corridor i.e. SH 20 is being considered) are yet to be procured and implemented. Designing of the safety interventions is in progress. 2/9/2015 Page 3 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) PHINDPDOTBL  Roads in good and fair condition as a share of total classified roads (Percentage, Core) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 57.00 57.00 65.00 Date -- 20-Jun-2014 31-Dec-2011 -- Comments Based on CRN in good condition as 11254 km (comprising baseline-8532 km, SHDP-2200 km, KSHIP-200 km & KRDCL-325 km) out of 19735 km; This is 2011 data. Latest data is unavailable. PHINDPDOTBL  Size of the total classified network (Kilometers, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 19735.00 19735.00 19735.00 19735.00 Date -- 20-Jun-2014 31-Dec-2011 -- PHINDPDOTBL  Share of Core Road Network in good condition (IRI < 4) increases from 50 percent to 65 percent by EOP. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 -- 57.00 65.00 Date -- -- 31-Dec-2011 -- Comments Based on CRN in good condition as 11254 km (comprising baseline-8532 km, SHDP-2200 km, KSHIP-200 km & KRDCL-325 km) out of 19735 km; This is 2011 data. Latest data is unavailable. Overall Comments Intermediate Results Indicators 2/9/2015 Page 4 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) PHINDIRITBL  Completion of upgrading and widening of about 269 km. through item–rate contracts (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- 160.00 192.00 269.00 Date -- 20-Jun-2014 31-Dec-2014 31-Dec-2016 Comments 60% of Year 3 target (192 km of road construction) achieved. Rest of the 76 km of roads are under construction and likely to be completed by June 2015. [1] Rest of the 76 km of roads are under construction and likely to be completed by June 2015. PHINDIRITBL  Completion of upgrading, widening of about 562 km. through DBFOMT (Annuity) Concessions (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- -- -- 562.00 Date -- 20-Jun-2014 31-Dec-2014 31-Dec-2016 Comments Concessions for two roads with a total length of about 300 km have been awarded and construction works are expected to be completed by Dec 2016. PHINDIRITBL  Environmental Management - (a) implementation of EMP as agreed (b) ISO 14001 certification obtained for operational units (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Implementation of EMP Implementation of EMP is being carried out, is being carried out, PIU certified however safety on and however safety on and and 1 field Value 0 off site, and regulatory off site, and regulatory division clearances remain clearances remain certified below satisfactory level below satisfactory level 2/9/2015 Page 5 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) ISO certification has ISO certification has been delayed as been delayed as procurement of the procurement of the external certifier is external certifier is ongoing. ongoing. Date -- 20-Jun-2014 31-Dec-2014 -- PHINDIRITBL  KRDCL generates additional road user revenues and commits them for mobilizing debt financing(via securitization) and/or making payment for PPP transactions (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Y1 Target of Passing of Y1 Target of Passing of Tolling Policy: Tolling Policy: Completed Completed Y2 Target of Tolling on Y2 Target of Tolling on selected roads: Not selected roads: Not KRDCL issues achieved. Attempts to achieved. Attempts to debt or award BOT- award BOT- develops PPP Value Passing of Tolling Policy tollconcessions did not tollconcessions did not transaction find any takers find any takers backed y toll revenues Y3 Target of KRDCL Y3 Target of KRDCL issues debt or issues debt or develops develops PPP PPP transactions transactions backed by backed by toll revenues: toll revenues: In In progress progress Date -- 20-Jun-2014 31-Dec-2014 -- PHINDIRITBL  Completion of upgrading widening and O&M of about 400 km through co-financing arrangement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Y1 Target of Co- Y1 Target of Co- financing arrangements financing arrangements established: In established: In progress progress Y1 Target of Transaction Y1 Target of adviser engaged: Transaction adviser completed Construction Value Screening commenced engaged: completed completed Y2 Target of DPR Y2 Target of DPR completed: In progress. completed: In progress. First stage of the two- First stage of the two- stage procurement stage procurement process for works is process for works is completed. Second ongoing. stage in progress. 2/9/2015 Page 6 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) Date -- 20-Jun-2014 31-Dec-2014 -- PHINDIRITBL  Effective implementation of Safe Corridor (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Y1 Target of Lead Y1 Target of Lead Agency established: Agency established: done with delay done with delay Y1 Target of Pilot Y1 Target of Pilot corridor identified: Yes corridor identified: Yes minimum 3 star Y2 Target of Lead Agency Established: Y2 Target of Consultant rating achieved Value Consultant Services pilot corridor identified Services procured: Yes through iRAP procured: Yes investigation Y3 Target of Multi sector Y3 Target of Multi intervention sector intervention implementation started: implementation started: Delayed. However, civil Delayed. However, civil works procurement is works procurement is making progress making progress Date -- 20-Jun-2014 31-Dec-2014 -- PHINDIRITBL  Satisfactory implementation of agreed action plan for institutional development and governance improvement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Y1 Target of IDSAP Y1 Target of IDSAP and and GAAP endorsed: GAAP endorsed: completed completed Y2 Target of Key Y2 Target of Key Assessment of IDSAP and GAAP consultant services consultant services IDSAP and Value Endorsed procured: a few procured: a few delayed GAAP results delayed made Y3 Target of Y3 Target of Studiescompleted: Studiescompleted: Delayed with varying Delayed state of progress. Date -- 20-Jun-2014 31-Dec-2014 -- 2/9/2015 Page 7 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) PHINDIRITBL  Roads constructed, non-rural (Kilometers, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 160.00 192.00 269.00 Date -- 20-Jun-2013 31-Dec-2014 -- PHINDIRITBL  Roads constructed, non-rural (Kilometers, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 562.00 Date -- 20-Jun-2013 20-Jun-2013 -- PHINDIRITBL  Land acquisition and resettlement implementation (a) land acquisition completed (phase I) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 33.00 55.00 -- Date 24-Feb-2011 20-Jun-2014 31-Dec-2014 -- Comments Wt. Ave: 55% 98% for 270 km of roads (item-rate contracts). 30% for 300 km of roads (annuity concessions). 46% for 260 km of roads (item-rate contracts – Phase 2). PHINDIRITBL LA and Resettlement Implementation- (a) Land acquisition completed (Phase I) (b) Key R&R assistance provided (alternative housing and livelihood support - PhaseI) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 47.00 82.00 -- Date 24-Feb-2011 20-Jun-2014 31-Dec-2014 -- Comments Wt. Ave: 82% 2/9/2015 Page 8 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) 98% for 270 km of roads (item-rate contracts). 75% for 300 km of roads (annuity concessions). 72% for 262 km of roads (new item-rate contracts). PHINDIRITBL  LA and Resettlement Implementation (c) Improve the living standards (measured % PAFs with increase/restored income/assets) Phase I (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- -- -- Date 24-Feb-2011 20-Jun-2014 20-Jun-2014 -- Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P107649 IBRD-80220 Effective USD 350.00 350.00 0.00 58.88 291.12 17% P107649 TF-92428 Closed USD 0.44 0.18 0.26 0.18 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P107649 IBRD-80220 Effective 24-Mar-2011 30-May-2011 19-Jul-2011 31-Dec-2016 31-Dec-2016 P107649 TF-92428 Closed 09-Jul-2008 09-Jul-2008 17-Jul-2008 29-Jun-2010 31-Dec-2010 Cumulative Disbursements 2/9/2015 Page 9 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 2/9/2015 Page 10 of 10 Public Disclosure Copy