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: 14 | ARCHIVED on 20-Mar-2017 | ISR27168 | Implementing Agencies: 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:28-Dec-2018 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$294 million, GOK: US$106 million, Developer: US$239 million):(Cost $638.82 M) Component 2: Highway Financing Modernization: (IBRD:US$38 million; GOK: US$42 million; Developers/Financial Institutions: US$200 mil lion):(Cost $280.03 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  Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Moderate 3/20/2017 Page 1 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) Implementation Status and Key Decisions This Implementation Status Report is based on the observations of the Implementation Support Mission during February 8-22, 2017. Since the last supervision mission in August-September 2017, the project made notable 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 five out of the six packages achieved financial close and commenced works. 3/20/2017 Page 2 of 11 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  Moderate Institutional Capacity for Implementation and Sustainability  --  Moderate  Moderate Fiduciary  --  Moderate  Moderate Environment and Social  --  Substantial  Substantial Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Substantial  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) Baseline Actual (Previous) Actual (Current) End Target Value 200.00 295.00 488.00 400.00 Date 24-Mar-2011 01-Sep-2016 01-Feb-2017 28-Dec-2018 Comments Comprising of (A) KSHIP 2 works: $ 137 million (WAP 1-$88 million and WAP 2-$49 mn) and (B) KRDCL works - $ 351 mn, which consists of (a) $163 mn from the 5 co-financing packages (that is, WCP-1 ($44 mn), WCP-3 ($31 mn), WCP-5 ($24 mn), WCP-6 ($22 mn) and WCP-7 ($21 mn); and (b) $ 188 million raised earlier via 8 works ( that is, Rs.12598 million from Dharwad–Ramanagar (Rs 1474 mn), Whagdhari –Ribbanpalli (Rs 1520 mn), Ginigere-Gangavathi (Rs.1856 mn), Yelahanka –AP border (Rs.2270 mn), Devanahalli – Kolar (Rs. 888 mn), Bellary – Moka (Rs.1580 mn), Bangalore –Maddur (Rs.1880 mn) and Hubli – Lakshmeshwar (Rs.1130 mn); Exchange rated assumed at 1 $ =Rs.67) [1] Expected: An additional $ 23 million from 1 KRDCL co financing work WCP-2- Rs.1538 million. 3/20/2017 Page 3 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) 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:$0.20 TT: Value VOC: $0.26 TT: $0.074 -- -- $0.06 Date 24-Mar-2011 -- -- 28-Dec-2018 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 -- -- 28-Dec-2018 Comments Not yet due. Yet, travel on completed sections resulted in notable reductions in travel time. 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 54.00 55.00 65.00 Date 24-Mar-2011 01-Jul-2016 31-Jan-2017 28-Dec-2018 Comments Total length of CRN: 24,266 km Of which, length in good condition (IRI<4): 13,364 km 3/20/2017 Page 4 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) PHINDPDOTBL  Size of the total classified network (Kilometers, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 19,735.00 24,266.00 24,266.00 24,266.00 Overall Comments Intermediate Results Indicators PHINDIRITBL  Completion of upgrading and widening of about 534 km. through item rate contracts (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 308.00 379.00 534.00 Date 24-Mar-2011 01-Sep-2016 31-Jan-2017 28-Dec-2018 Comments 379 km brought up to bituminous layers (266 km in old item-rate contracts and 113 km in new item-rate contracts) 3/20/2017 Page 5 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) PHINDIRITBL  Completion of upgrading, widening of about 301 km. through DBFOMT (Annuity) Concessions (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 201.00 256.00 301.00 Date 24-Mar-2011 01-Sep-2016 31-Jan-2017 28-Dec-2018 Comments 256 km brought up to bituminous layers 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 (a) Implementation of (a) Implementation of EMP is being carried EMP is being carried out. out. (b) ISO certification (b) ISO certification PIU certified completed: completed: and 1 field Value 0.00 Y3: PIU HQ Certified Y3: PIU HQ Certified division Y4: 1 field division Y4: 1 field division certified certified certified Current Status: Current Status: Certification completed Certification completed in all targeted offices in all targeted offices Date 24-Mar-2011 01-Sep-2016 31-Jan-2017 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 Toll policy: Passing of Toll policy: Passing of toll policy is done. toll policy is done. Y5: KRDCL Tolling on selected Tolling on selected issues debt or roads: Pilot launched roads: Pilot launched develops PPP successfully on successfully on Sandur- transactions Sandur-Hospet stretch. Hospet stretch. Toll Value Passing of Tolling Policy backed by toll Toll accrual started on accrual started on the revenues Y7: the road. Further 31 road. Further 31 roads Tolling started roads proposed for proposed for tolling. on selected tolling. roads Issuance of debt, and Issuance of debt, and developing toll developing toll transactions backed by 3/20/2017 Page 6 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) transactions backed by toll revenues: Co- toll revenues: Co- financing projects piloted financing projects on the model. In- piloted on the model. principal approval In-principal approval received from 6 banks. received from 6 banks. Final sanction in Final sanction in process. Further 1,000 process. Further 1,000 km of projects proposed km of projects on similar model. proposed on similar model. Date 24-Mar-2011 01-Sep-2016 31-Jan-2017 28-Dec-2018 PHINDIRITBL  Completion of upgrading widening and O&M of 363 km through co-financing arrangement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Establishing Co- Establishing Co- financing financing arrangements: arrangements: Transaction Advisors Transaction Advisors engaged; engaged; All Six packages Y5: Co- awarded. Five out of six All Six packages financing achieved financial awarded. Five out of arrangement closure in September Value Screening commenced six are expected to established; and October2016 and achieve financial Y7: commenced works. closure in September Construction 2016 and the signing of completed The signing of agreement for sixth agreement for sixth project is also project happened in scheduled to be October 2016. completed in September 2016. Date 24-Mar-2011 01-Sep-2016 31-Jan-2017 28-Dec-2018 PHINDIRITBL  Effective implementation of Safe Corridor (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Lead Agency: Lead Agency: Y5:Multi-sector Established Established intervention implementation All consultants except All consultants except started; Y6: Lead Agency Established: that related to police that related to police Multi-sector Value pilot corridor identified enforcement are in enforcement are in intervention place. place. completed; and Y7: Minimum 3 Multi-sector Multi-sector intervention star rating intervention started and started and in progress achieved 3/20/2017 Page 7 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) in progress through iRAP investigation Date 24-Mar-2011 01-Sep-2016 31-Jan-2017 28-Dec-2018 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 and GAAP endorsed: Y1 Target of IDSAP completed and GAAP endorsed: completed Y6: Studies Y4 Target of Key Completed; and consultant services Y4 Target of Key Recommended procured: only QA/QC consultant services actions taken; IDSAP and GAAP equipment procurement Value procured: a few and Y7: Endorsed is pending delayed Assessment of IDSAP and Y6 Target of various Y6 Target of various GAAP results studies: Varying state of studies: Varying state made progress, mostly nearing of progress. completion. Date 24-Mar-2011 01-Sep-2016 31-Jan-2017 28-Dec-2018 PHINDIRITBL  Roads constructed, non-rural (Kilometers, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 509.00 673.00 1,198.00 Date 31-Mar-2011 01-Sep-2016 31-Jan-2017 28-Dec-2018 Comments In all, 673 km have been brought up to bituminous layers. Of these, 266 km of roads fully completed and taken over. 3/20/2017 Page 8 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) PHINDIRITBL  Land acquisition and resettlement implementation (a) land acquisition completed (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 59.00 68.00 100.00 Date 24-Feb-2011 01-Sep-2016 01-Feb-2017 28-Dec-2018 Comments Total: 440 acres (68%) out of 650 acres, if which KSHIP: 430 acres (95%) out of 451 acres KRDCL: 10 acres (5%) out of 199 acres PHINDIRITBL  LA and Resettlement Implementation- (b) Key R&R assistance provided (alternative housing and livelihood support) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 55.00 83.00 100.00 Date 24-Feb-2011 01-Sep-2016 01-Feb-2017 28-Dec-2018 Comments Resettlement and Livelihood support (Providing alternative housing) Total: 1322 ( 83%) families out of 1590 Families, of which • KSHIP: 981 families out of 1141 (86%); • KRDCL: 341 out 449 families (77%)’ PHINDIRITBL  LA and Resettlement Implementation (c) Improve the living standards (measured % PAFs with increase/restored income in real terms) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 94.00 80.00 Date 24-Feb-2011 -- 01-Feb-2017 28-Dec-2018 Comments Livelihood support Total 1242 ( 94 %) out of 1,316 3/20/2017 Page 9 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) • KSHIP: 901 out of 969 (97%) • KRDCL: 341 out of 347 (98%) 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 0.00 150.22 199.78 43% 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 28-Dec-2018 P107649 TF-92428 Closed 09-Jul-2008 09-Jul-2008 17-Jul-2008 29-Jun-2010 31-Dec-2010 Cumulative Disbursements 3/20/2017 Page 10 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) Restructuring History Level 2 Approved on 23-May-2016 Related Project(s) There are no related projects. 3/20/2017 Page 11 of 11 Public Disclosure Copy