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 & ICT Global Practice | IBRD/IDA | Specific Investment Loan | FY 2011 | Seq No: 11 | ARCHIVED on 26-Feb-2016 | ISR22550 | Implementing Agencies: Karnataka Road Development Corporation Limited Key Dates Key Project Dates Bank 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 Satisfactory  Moderately Satisfactory 2/26/2016 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  Substantial Implementation Status and Key Decisions This Implementation Status Report is based on the observations of the Implementation Support Mission during January 3-12, 2016. The Project Development Objective (PDO): Accelerate the development of the Core Road Network (CRN) through leveraging public sector outlays with private sector financing, and improving the institutional capacity of the road sector agencies to deliver effective and safe CRN to users. Implementation Progress: Since the last supervision mission in June 2014, the project made notable progress across all major components, i.e., (a) ongoing item-rate contracts and the two DBFOMT (Design-Build-Finance-Operate-Maintain-Transfer) concessions; (b) mobilization of 3 new item-rate contracts and award of 5 co-financing packages; (c) 30% progress in civil works on Safe Corridor Demo Project; and (d) advancement in quite a few institutional strengthening activities including ISO certification for Environment management and Training. Development Objective: A substantial portion of the balance activities under the project cannot be completed before its current closing date, that is, December 31, 2016. Government of Karnataka is putting together a request for extension of the closing date to complete all the balance activities and achieve the Project's Development Objective. 2/26/2016 Page 2 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Low  Low Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Substantial  Substantial Institutional Capacity for Implementation and Sustainability  --  Moderate  Moderate Fiduciary  --  Moderate  Moderate Environment and Social  --  Substantial  Substantial Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators 2/26/2016 Page 3 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) 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 200.00 295.00 295.00 500.00 Date 24-Mar-2011 30-Jul-2015 31-Dec-2015 -- Comments The latest data available up to July 30, 2015 only. 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 -- -- -- -- Comments Will be measured after completion of substantive portion of the planned civil works, ie, WEP and WAP packages. 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 -- -- 31-Dec-2016 Comments substantive portion of civil works and interventions from other stakeholder departments are still underway. The measurement will be relevant and made after completion of most the various activities envisaged under the pilot are implemented for a reasonable period of say, about 6-12 months. 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 2/26/2016 Page 4 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) Value 50.00 57.00 -- 65.00 Date -- 31-Dec-2011 -- 31-Dec-2016 Overall Comments Intermediate Results Indicators PHINDIRITBL  Completion of upgrading and widening of about 269 km. through item–rate contracts (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 242.00 264.00 269.00 Date 24-Mar-2011 18-Jul-2015 31-Dec-2015 31-Dec-2016 Comments Across the 6 packages, up to 264 km has been brought up to bituminous layers. PHINDIRITBL  Completion of upgrading, widening of about 562 km. through DBFOMT (Annuity) Concessions (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50.00 127.00 562.00 Date 24-Mar-2011 17-Jul-2015 31-Dec-2015 31-Dec-2016 Comments Across the two packages, up to 127 km has been brought up to bituminous layers. 2/26/2016 Page 5 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) 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. PIU certified is being carried out. and 1 field Value 0 ISO certification division ISO certification is completed in all targeted certified being completed. offices. Date 24-Mar-2011 17-Jul-2015 31-Dec-2015 31-Dec-2016 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 24-Mar-2011 17-Jul-2015 31-Dec-2015 31-Dec-2016 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: Construction Value Screening commenced Transaction adviser completed completed engaged: completed Y2 Target of DPR Y2 Target of DPR completed: In progress. completed: In progress. Five out of six packages First stage of the two- awarded and are in the stage procurement process of achieving 2/26/2016 Page 6 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) process for works is financial closure. The completed. Second procurement of the stage in advanced balance one package state with Bid expected tobe Evaluation Report completed by June expected soon. 2016. Date 24-Mar-2011 17-Jul-2015 31-Dec-2015 31-Dec-2016 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. Civil works contract Civil works contract awarded. awarded and achieved minimum 3 star Lead Agency Established: 30% progress. rating achieved Value pilot corridor identified Y2 Target of through iRAP Consultant Services Y2 Target of Consultant investigation procured: Yes Services procured: Yes Y3 Target of Multi Y3 Target of Multi sector sector intervention intervention implementation started: implementation started: Procurement of other Procurement of other equipment in progress equipment in progress Date 24-Mar-2011 17-Jul-2015 31-Dec-2015 31-Dec-2016 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 consultant services IDSAP and GAAP consultant services IDSAP and Value procured: a few Endorsed procured: a few delayed GAAP results delayed made Y3 Target of Y3 Target of Studiescompleted: Studiescompleted: Delayed with varying Delayed with varying state of progress. state of progress. 2/26/2016 Page 7 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) Date 24-Mar-2011 17-Jul-2015 31-Dec-2015 31-Dec-2016 PHINDIRITBL  Roads constructed, non-rural (Kilometers, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 242.00 264.00 269.00 Date 31-Mar-2011 17-Jul-2015 31-Dec-2015 31-Dec-2016 PHINDIRITBL  Roads constructed, non-rural (Kilometers, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50.00 127.00 562.00 Date 24-Mar-2011 17-Jul-2015 31-Dec-2015 31-Dec-2016 PHINDIRITBL  Land acquisition and resettlement implementation (a) land acquisition completed (phase I) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 35.00 54.00 100.00 Date 24-Feb-2011 17-Jul-2015 31-Dec-2015 31-Dec-2016 Comments The current value also includes the figures related to the co-financing component. Wt. Ave: 54% 99% of 81 acres in item-rate contracts; 100% of 258 acres in annuity concessions; 100% of 72 acres in new item-rate contracts; and 0% of 344 acres in co-financing packages 2/26/2016 Page 8 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) 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 55.00 51.00 100.00 Date 24-Feb-2011 17-Jul-2015 31-Dec-2015 31-Dec-2016 Comments The current value also includes the figures related to the co-financing component. Wt. Ave: 51% 97% of 256 families in item-rate contracts; 90% of 433 families in annuity concessions; 83% of 250 families in new item-rate contracts; and 0% of 850 families in co-financing packages 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 -- -- 100.00 Date 24-Feb-2011 17-Jul-2015 17-Jul-2015 31-Dec-2016 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 98.09 251.91 28% 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 2/26/2016 Page 9 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 2/26/2016 Page 10 of 10 Public Disclosure Copy