The World Bank Second Karnataka State Highway Improvement (P107649)

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized SOUTH ASIA India Transport & ICT Global Practice IBRD/IDA Specific Investment Loan FY 2011 Seq No: 13 ARCHIVED on 13-Oct-2016 ISR25139 Implementing Agencies: Karnataka Road Development Corporation Limited 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 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$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 Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory 10/13/2016 Page 1 of 10

2 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 August 23 - September 1, Since the last supervision mission in January 2016, the project made notable progress across all major components, that is, road improvement works, co-financing, road safety and institutional strengthening, wherein notable progress has been achieved in several areas including Training and E- learning, ISO Certification for both Quality and Environmental Management and Project Management System. Risks Systematic Operations Risk-rating Tool 10/13/2016 Page 2 of 10

3 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 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 Comments Partially Achieved ($296 million): KSHIP 2 works ( WAP 1-Rs.4535 million and WAP 2-Rs.2702 million )- $ 108 million. Earlier, KRDCL raised $ 188 million in 8 works (Rs million) [ Dharwad Ramanagar Rs 1474 million, Whagdhari Ribbanpalli Rs 1520 million,ginigere-gangavathi-rs.1856 million, Yelahanka AP border Rs.2270 million,devanahalli Kolar Rs. 888,Bellary Moka Rs.1580 million, Bangalore Maddur Rs.1880 million and Hubli Lakshmeshwar Rs.1130 million) (exchange-rate considered 1 $ =Rs.67) Expected achievement of another $ 139 million from 6 KRDCL co financing packages. Rs million through (WCP-1- Rs.1605 million, WCP-2- Rs.1538 million, WCP-3- Rs.1886 million, WCP-5 Rs.1495 million, WCP-6- Rs.1405 million and WCP-7 Rs million) (exchange-rate considered 1 $ =Rs.67) 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: $ /13/2016 Page 3 of 10

4 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, Core) Value Date 24-Mar Aug Jul Dec-2018 PHINDPDOTBL Size of the total classified network (Kilometers, Core Supplement) Value Overall Comments Intermediate Results Indicators 10/13/2016 Page 4 of 10

5 Completion of upgrading and widening of about 534 km. through itemârate contracts (Kilometers, Custom) Value Comments 308 km brought up to bituminous layers (266 km in old item-rate contracts and 42 km in new item-rate contracts) Completion of upgrading, widening of about 301 km. through DBFOMT (Annuity) Concessions (Kilometers, Custom) Value Comments 201 km brought up to bituminous layers Environmental Management - (a) implementation of EMP as agreed (b) ISO certification obtained for operational units (Text, Custom) Value 0 (a) Implementation of EMP is being carried out. (b) ISO certification completed: Y3: PIU HQ Certified Y4: 1 field division certified Current Status: Certification completed in all targeted offices (a) Implementation of EMP is being carried out. (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 Sep Dec /13/2016 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. Value Passing of Tolling Policy -- 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. Inprincipal approval received from 6 banks. Final sanction in process. Further 1,000 km of projects proposed on similar model. Y5: KRDCL issues debt or develops PPP transactions backed by toll revenues Y7: Tolling started on selected roads Date 24-Mar Sep Dec-2018 Completion of upgrading widening and O&M of 363 km through co-financing arrangement (Text, Custom) Establishing Cofinancing arrangements: Value Screening commenced Y4: DPR Completed Y4: Transaction Adviser engaged Transaction Advisors engaged; All Six packages awarded. Five out of six are expected to achieve financial closure in September 2016 and the signing of agreement for sixth project is also scheduled to be completed in September Y5: Cofinancing arrangement established; Y7: Construction completed 10/13/2016 Page 6 of 10

7 Effective implementation of Safe Corridor (Text, Custom) Value Lead Agency Established: pilot corridor identified Y1: Consultant services procured Lead Agency: Established All consultants except that related to police enforcement are in place. Multi-sector intervention started and in progress Y5:Multi-sector intervention implementation started; Y6: Multi-sector intervention completed; and Y7: Minimum 3 star rating achieved through irap investigation Satisfactory implementation of agreed action plan for institutional development and governance improvement (Text, Custom) Value IDSAP and GAAP Endorsed Y4: Key consultant services procured Y1 Target of IDSAP and GAAP endorsed: completed Y4 Target of Key consultant services procured: a few delayed Y6 Target of various studies: Varying state of progress. Y6: Studies Completed; and Recommended actions taken; and Y7: Assessment of IDSAP and GAAP results made Roads constructed, non-rural (Kilometers, Core) Value Date 31-Mar Jan Sep Dec /13/2016 Page 7 of 10

8 Land acquisition and resettlement implementation (a) land acquisition completed (Percentage, Custom) Value Date 24-Feb Jan Sep Dec-2018 Comments 414 (59%) of about 705* acres *likely to change KSHIP:414 (95%) out of 435 acres KRDCL: 0 (0%) out of 270 acres LA and Resettlement Implementation- (b) Key R&R assistance provided (alternative housing and livelihood support) (Percentage, Custom) Value Date 24-Feb Jan Sep Dec-2018 Comments 908 (55%) of 1,654 households KSHIP:908 (76%) out of 1,192 KRDCL: 0 (0%) out of 462 LA and Resettlement Implementation (c) Improve the living standards (measured % PAFs with increase/restored income in real terms) (Percentage, Custom) Value Date 24-Feb Dec-2018 Overall Comments Data on Financial Performance Disbursements (by loan) 10/13/2016 Page 8 of 10

9 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 Restructuring History Level 2 Approved on 23-May-2016 Related Project(s) 10/13/2016 Page 9 of 10

10 There are no related projects. 10/13/2016 Page 10 of 10

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