The World Bank Second Karnataka State Highway Improvement (P107649)

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1 Public Disclosure Authorized SOUTH ASIA India Transport & ICT Global Practice IBRD/IDA Specific Investment Loan FY 2011 Seq No: 15 ARCHIVED on 14-Sep-2017 ISR29505 Implementing Agencies: PIU KSHIP, Karnataka Road Development Corporation Limited Public Disclosure Authorized Key Dates Key Project Dates Bank Approval Date:24-Mar-2011 Planned Mid Term Review Date:11-Nov-2013 Original Closing Date:31-Dec-2016 Project Development Objectives Effectiveness Date:19-Jul-2011 Actual Mid-Term Review Date:04-Dec-2013 Revised Closing Date:28-Dec-2018 Public Disclosure Authorized 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 Public Disclosure Authorized Name Component 1: Road Improvement Works (IBRD: US$294 million, GOK: US$106 million, Developer: US$239 million):(cost $ M) Component 2: Highway Financing Modernization: (IBRD:US$38 million; GOK: US$42 million; Developers/Financial Institutions: US$200 mil lion):(cost $ M) Component 3: Road Safety Improvement (IBRD: US$7.3 million; GOK: US$1.9 million):(cost $9.21 M) Component 4: Road Sector Policy and Institutional Development. (IBRD: US$6.5 million; GOK: US$1.7 million).:(cost $8.17 M) Project Management (This is not a formal component):(cost $6.11 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate 9/14/2017 Page 1 of 10

2 Implementation Status and Key Decisions This Implementation Status Report is based on the observations of the Implementation Support Mission during August 15-23, Since the last supervision mission in February 2016, the project is continuing to make satisfactory progress across all major components, especially w.r.t. the new item-rate contracts which are now progressing as per schedule and the co-financing component, wherein all six packages achieved financial close and commenced works. 9/14/2017 Page 2 of 10

3 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 -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Moderate Moderate Environment and Social -- Substantial Substantial Stakeholders -- Moderate Moderate Other Overall -- Moderate Moderate Results Project Development Objective Indicators PHINDPDOTBL Achievement by GOK in generating at least US$400 million in new private sector capital for CRN improvement and management by end-of-project (EOP). (Amount(USD), Custom) Value Date 24-Mar Feb Jul Dec-2018 Comments Comprising of (A) KSHIP 2 works: $ 137 million (WAP 1-$88 million and WAP 2-$49 mn) and (B) KRDCL works - $ 330 mn, which consists of (a) $134 mn from the 5 co-financing packages (that is, WCP-1 ($38 mn), WCP-3 ($24 mn), WCP-5 ($20 mn), WCP-6 ($17 mn) and WCP-7 ($36 mn); and (b) $ 196 million raised earlier via 8 works (from Dharwad Ramanagar ($ mn), Whagdhari Ribbanpalli ($ mn), Ginigere-Gangavathi ($29.00 mn), Yelahanka AP border ($35.47 mn), Devanahalli Kolar ($13.88 mn), Bellary Moka ($24.69 mn), Bangalore Maddur ($29.38 mn) and Hubli Lakshmeshwar ($17.66 mn); Exchange rated assumed at 1 $ =Rs.64) 9/14/2017 Page 3 of 10

4 PHINDPDOTBL 15% reduction in Vehicle Operating costs and 25% reduction in Travel Time Cost on project corridors by EOP (Text, Custom) Value VOC: $0.26 TT: $ VOC:$0.20 TT: $0.06 Date 24-Mar Dec-2018 PHINDPDOTBL 30% reduction in road accident related fatalities on safe corridor pilots by EOP (Number, Custom) Value Date 15-Feb Dec-2018 PHINDPDOTBL Roads in good and fair condition as a share of total classified roads (Percentage, Custom) Value Date 24-Mar Jan Jan Dec-2018 PHINDPDOTBL Size of the total classified network (Kilometers, Custom Supplement) Value 19, , , , Overall Comments Intermediate Results Indicators 9/14/2017 Page 4 of 10

5 Completion of upgrading and widening of about 534 km. through itemârate contracts (Kilometers, Custom) Value Comments 397 km brought up to bituminous layers (266 km in old item-rate contracts and 131 km in new item-rate contracts) Completion of upgrading, widening of about 301 km. through DBFOMT (Annuity) Concessions (Kilometers, Custom) Value Comments 278 km brought up to bituminous layers Environmental Management - (a) implementation of EMP as agreed (b) ISO certification obtained for operational units (Text, Custom) (a) Implementation of EMP is being carried out. (a) Implementation of EMP is being carried out. Value 0.00 (b) ISO certification completed: Y3: PIU HQ Certified Y4: 1 field division certified Current Status: Certification completed in all targeted offices (b) ISO certification completed: Y3: PIU HQ Certified Y4: 1 field division certified Current Status: Certification completed in all targeted offices PIU certified and 1 field division certified Date 24-Mar Jan Jul Dec /14/2017 Page 5 of 10

6 KRDCL generates additional road user revenues and commits them for mobilizing debt financing(via securitization) and/or making payment for PPP transactions (Text, Custom) Toll policy: Passing of toll policy is done. Pilot Tolling project of KRDCL: Pilot launched successfully on Sandur- Hospet stretch. Toll accrual started on the road. Value Passing of Tolling Policy Toll policy: Passing of toll policy is done. Tolling on selected roads: Pilot launched successfully on Sandur-Hospet stretch. Toll accrual started on the road. Further 31 roads proposed for tolling. Issuance of debt, and developing toll transactions backed by toll revenues: Cofinancing projects piloted on the model. In-principal approval received from 6 banks. Final sanction in process. Further 1,000 km of projects proposed on similar model. Tolling of co-finance projects: Cofinance projects will be tolled soon after CoD. Govt. has permitted KRDCL for collecting toll on these roads vide G.O. dated Tolling on 19 roads developed by KSHIP/KRDCL: Govt. has permitted KRDCL to collect User fee on 19 roads of 1530 km vide Govt. Order dt KRDCL has signed an amendment with the FPTA consultants to provide Transaction Advisory services for engaging toll collection contractors. Issuance of debt and developing toll transactions backed by toll revenues: Cofinancing projects piloted on the model and loan secured from Vijaya Bank. Securitisation of toll revenue of 19 roads for development of new roads will be taken up in due course depending upon the future revenue generation in 19 roads. Y5: KRDCL issues debt or develops PPP transactions backed by toll revenues Y7: Tolling started on selected roads 9/14/2017 Page 6 of 10

7 Completion of upgrading widening and O&M of 363 km through co-financing arrangement (Text, Custom) Establishing Cofinancing arrangements: Establishing Cofinancing arrangements: Value Screening commenced Transaction Advisors engaged; All Six packages awarded. Five out of six achieved financial closure in September and October2016 and commenced works. The signing of agreement for sixth project happened in October Out of six co-financing contracts, five are in progress. Out of 361 km, 138 km has been completed up to DBM.113 km brought up to bituminous layers Appointed date for the sixth contract is declared on 4th Aug 2017 and the work has commenced. Y5: Cofinancing arrangement established; Y7: Construction completed Effective implementation of Safe Corridor (Text, Custom) Lead Agency: Established Value Lead Agency Established: pilot corridor identified Lead Agency: Established All consultants except that related to police enforcement are in place. Multi-sector intervention started and in progress All consultants are in place. Multi-sector intervention started and in progress. Engineering corrections substantially completed. Equipment for police enforcement given, training conducted and enforcement started. Y5:Multi-sector intervention implementation started; Y6: Multi-sector intervention completed; and Y7: Minimum 3 star rating achieved through irap investigation 9/14/2017 Page 7 of 10

8 Satisfactory implementation of agreed action plan for institutional development and governance improvement (Text, Custom) Y1 Target of IDSAP and GAAP endorsed: completed Y1 Target of IDSAP and GAAP endorsed: completed Value IDSAP and GAAP Endorsed Y4 Target of Key consultant services procured: only QA/QC equipment procurement is pending Y6 Target of various studies: Varying state of progress, mostly nearing completion. Y4 Target of Key consultant services procured: QA/QC equipment procurement completed Y6 Target of various studies: Varying state of progress, mostly nearing completion. Y6: Studies Completed; and Recommended actions taken; and Y7: Assessment of IDSAP and GAAP results made Roads constructed, non-rural (Kilometers, Custom) Value , Date 31-Mar Jan Jul Dec-2018 Comments In all, 788 km have been brought up to bituminous layers. Of these, 266 km of roads fully completed and taken over. Land acquisition and resettlement implementation (a) land acquisition completed (Percentage, Custom) Value Date 24-Feb Feb Jul Dec /14/2017 Page 8 of 10

9 LA and Resettlement Implementation- (b) Key R&R assistance provided (alternative housing and livelihood support) (Percentage, Custom) Value Date 24-Feb Feb Jul Dec-2018 LA and Resettlement Implementation (c) Improve the living standards (measured % PAFs with increase/restored income in real terms) (Percentage, Custom) Value Date 24-Feb Feb Jul Dec-2018 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P IBRD Effective USD % P TF Closed USD % Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P IBRD Effective 24-Mar May Jul Dec Dec-2018 P TF Closed 09-Jul Jul Jul Jun Dec-2010 Cumulative Disbursements 9/14/2017 Page 9 of 10

10 Restructuring History Level 2 Approved on 23-May-2016 Related Project(s) There are no related projects. 9/14/2017 Page 10 of 10

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