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: 15 | ARCHIVED on 14-Sep-2017 | ISR29505 | Implementing Agencies: PIU KSHIP, 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: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  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Moderate  Moderate 9/14/2017 Page 1 of 10 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 August 15-23, 2017. 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 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  --  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) Baseline Actual (Previous) Actual (Current) End Target Value 200.00 488.00 467.00 400.00 Date 24-Mar-2011 01-Feb-2017 31-Jul-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 - $ 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 ($ 23.03 mn), Whagdhari –Ribbanpalli ($ 23.76 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 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 PHINDPDOTBL  Roads in good and fair condition as a share of total classified roads (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 55.00 55.00 65.00 Date 24-Mar-2011 31-Jan-2017 31-Jan-2017 28-Dec-2018 PHINDPDOTBL  Size of the total classified network (Kilometers, Custom 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 9/14/2017 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 534 km. through item rate contracts (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 379.00 397.00 534.00 Date 24-Mar-2011 31-Jan-2017 31-Jul-2017 28-Dec-2018 Comments 397 km brought up to bituminous layers (266 km in old item-rate contracts and 131 km in new item-rate contracts) PHINDIRITBL  Completion of upgrading, widening of about 301 km. through DBFOMT (Annuity) Concessions (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 256.00 278.00 301.00 Date 24-Mar-2011 31-Jan-2017 31-Jul-2017 28-Dec-2018 Comments 278 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 31-Jan-2017 31-Jul-2017 31-Dec-2016 9/14/2017 Page 5 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) 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 is done. Pilot Tolling project of KRDCL: Pilot launched successfully on Sandur- Hospet stretch. Toll accrual started on the road. Tolling of co-finance projects: Cofinance Toll policy: Passing of projects will be tolled toll policy is done. soon after CoD. Govt. has permitted KRDCL Tolling on selected for collecting toll on roads: Pilot launched these roads vide G.O. successfully on dated 23.03.2016. Sandur-Hospet stretch. Toll accrual started on Tolling on 19 roads the road. Further 31 developed by Y5: KRDCL roads proposed for KSHIP/KRDCL: Govt. issues debt or tolling. has permitted KRDCL to develops PPP collect User fee on 19 transactions Issuance of debt, and Value Passing of Tolling Policy roads of 1530 km vide backed by toll developing toll Govt. Order revenues Y7: transactions backed by dt.31.03.2017. KRDCL Tolling started toll revenues: Co- has signed an on selected financing projects amendment with the roads piloted on the model. FPTA consultants to In-principal approval provide Transaction received from 6 banks. Advisory services for Final sanction in engaging toll collection process. Further 1,000 contractors. km of projects Issuance proposed on similar of debt and developing model. toll transactions backed by toll revenues: Co- financing 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. Date 24-Mar-2011 31-Jan-2017 31-Jul-2017 28-Dec-2018 9/14/2017 Page 6 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 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: Out of six co-financing Transaction Advisors contracts, five are in engaged; progress. Out of 361 km, All Six packages Y5: Co- 138 km has been awarded. Five out of financing completed up to six achieved financial arrangement DBM.113 km brought up Value Screening commenced closure in September established; to bituminous layers and October2016 and Y7: commenced works. Construction Appointed date for the completed sixth contract is declared The signing of on 4th Aug 2017 and the agreement for sixth work has commenced. project happened in October 2016. Date 24-Mar-2011 31-Jan-2017 31-Jul-2017 28-Dec-2018 PHINDIRITBL  Effective implementation of Safe Corridor (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Lead Agency: Established Lead Agency: Y5:Multi-sector All consultants are in Established intervention place. implementation All consultants except started; Y6: Multi-sector intervention that related to police Multi-sector started and in progress. Lead Agency Established: enforcement are in intervention Value pilot corridor identified place. completed; and Engineering corrections Y7: Minimum 3 substantially completed. Multi-sector star rating Equipment for police intervention started and achieved enforcement given, in progress through iRAP training conducted and investigation enforcement started. Date 24-Mar-2011 31-Jan-2017 31-Jul-2017 28-Dec-2018 9/14/2017 Page 7 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) 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 Y1 Target of IDSAP GAAP endorsed: and GAAP endorsed: completed completed Y4 Target of Key Y6: Studies Y4 Target of Key consultant services Completed; and consultant services procured: QA/QC Recommended procured: only QA/QC equipment procurement actions taken; IDSAP and GAAP equipment Value completed and Y7: Endorsed procurement is pending Assessment of Y6 Target of various IDSAP and Y6 Target of various studies: Varying state of GAAP results studies: Varying state progress, mostly nearing made of progress, mostly completion. nearing completion. Date 24-Mar-2011 31-Jan-2017 31-Jul-2017 28-Dec-2018 PHINDIRITBL  Roads constructed, non-rural (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 673.00 788.00 1,198.00 Date 31-Mar-2011 31-Jan-2017 31-Jul-2017 28-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. PHINDIRITBL  Land acquisition and resettlement implementation (a) land acquisition completed (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 68.00 81.00 100.00 Date 24-Feb-2011 01-Feb-2017 31-Jul-2017 28-Dec-2018 9/14/2017 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- (b) Key R&R assistance provided (alternative housing and livelihood support) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 83.00 86.00 100.00 Date 24-Feb-2011 01-Feb-2017 31-Jul-2017 28-Dec-2018 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 92.00 80.00 Date 24-Feb-2011 01-Feb-2017 31-Jul-2017 28-Dec-2018 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 0.00 193.97 156.03 55% 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 9/14/2017 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 Level 2 Approved on 23-May-2016 Related Project(s) There are no related projects. 9/14/2017 Page 10 of 10 Public Disclosure Copy