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: 10 | ARCHIVED on 31-Jul-2015 | ISR18834 | Implementing Agencies: Karnataka Road Development Corporation Limited Key Dates Key Project Dates Board 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 Unsatisfactory  Moderately Satisfactory 7/31/2015 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 July 7-17, 2015. The Project Development Objective (PDO): Since the last supervision mission in June 2014, the project made notable progress in (a) implementation of the ongoing item-rate contracts and the two DBFOMT (Design-Build-Finance-Operate-Maintain-Transfer) concessions; (b) procurement of 3 new item- rate contracts (awarded) and 5 co-financing packages (in bid evaluation stage); (c) commenced civil works on Safe Corridor Demo Project; and (d) in various institutional strengthening activities including ISO certifications for Environment and Quality management, Training, IT-ICT-MIS. Keeping this in view, the rating for the Implementation Progress has been revised upwards to Moderately Satisfactory. However, owing to the delyas in major procurements that had already occured since inception of the project, the balance time available till the current closing date (December 31, 2016) is insufficient for completing the remaining activities and achieving the project development objective. Keeping this in view, the rating for the achievement of DO has been retained at Modertely Unsatisfactory. Recently, GoK have made a request to the DEA for restructuring of the project including an extension of the closing date. Risks 7/31/2015 Page 2 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) 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 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 01-Jan-2015 30-Jul-2015 -- 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 -- 20-Jun-2014 -- -- PHINDPDOTBL  30% reduction in road accident related fatalities on safe corridor pilots by EOP (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 7/31/2015 Page 3 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) Value 31.00 -- -- 22.00 Date 15-Feb-2011 20-Jun-2014 -- -- 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 Value 50.00 57.00 57.00 65.00 Date -- 31-Dec-2011 31-Dec-2011 -- 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 0.00 192.00 242.00 269.00 Date 24-Mar-2011 31-Dec-2014 18-Jul-2015 31-Dec-2016 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 -- 50.00 562.00 Date 24-Mar-2011 31-Dec-2014 17-Jul-2015 31-Dec-2016 7/31/2015 Page 4 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 is being carried out, however safety on and off site, and regulatory Implementation of EMP clearances remain PIU certified is being carried out. below satisfactory level and 1 field Value 0 division ISO certification is being ISO certification has certified completed. been delayed as procurement of the external certifier is ongoing. Date 24-Mar-2011 31-Dec-2014 17-Jul-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 31-Dec-2014 17-Jul-2015 31-Dec-2016 7/31/2015 Page 5 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 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 progress established: In progress Y1 Target of Transaction adviser engaged: Y1 Target of completed Transaction adviser engaged: completed Construction Value Screening commenced Y2 Target of DPR completed completed: In progress. Y2 Target of DPR First stage of the two- completed: In progress. stage procurement First stage of the two- process for works is stage procurement completed. Second process for works is stage in advanced state completed. Second with Bid Evaluation stage in progress. Report expected soon. Date 24-Mar-2011 31-Dec-2014 17-Jul-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 minimum 3 star Y2 Target of awarded. Lead Agency Established: rating achieved Value Consultant Services pilot corridor identified through iRAP procured: Yes Y2 Target of Consultant investigation Services procured: Yes Y3 Target of Multi sector intervention Y3 Target of Multi sector implementation started: intervention Delayed. However, civil implementation started: works procurement is Procurement of other making progress equipment in progress Date 24-Mar-2011 31-Dec-2014 17-Jul-2015 31-Dec-2016 7/31/2015 Page 6 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 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. Date 24-Mar-2011 31-Dec-2014 17-Jul-2015 31-Dec-2016 PHINDIRITBL  Roads constructed, non-rural (Kilometers, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 192.00 242.00 269.00 Date 31-Mar-2011 31-Dec-2014 17-Jul-2015 31-Dec-2016 PHINDIRITBL  Roads constructed, non-rural (Kilometers, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 50.00 562.00 Date 24-Mar-2011 20-Jun-2013 17-Jul-2015 31-Dec-2016 7/31/2015 Page 7 of 10 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 (phase I) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 55.00 35.00 100.00 Date 24-Feb-2011 31-Dec-2014 17-Jul-2015 31-Dec-2016 Comments The current value also includes the figures related to the co-financing component. Wt. Ave: 35%: 98% for 90 acres in Item rate contracts; 79% of 276 acres in annuity concessions; 4 % 0f 105 acres in new Item rate contracts; and 0% of 405 acres of Highway Financing contracts 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 82.00 55.00 100.00 Date 24-Feb-2011 31-Dec-2014 17-Jul-2015 31-Dec-2016 Comments The current value also includes the figures related to the co-financing component. Wt. Ave: 55% 96% 350 families in Item rate contracts; 75% of 624 families in annuity concessions; 77 % of 383 families in new item rate contracts;and 0% of 770 families in Highway Financing contracts 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 20-Jun-2014 17-Jul-2015 31-Dec-2016 Comments Not Available. 7/31/2015 Page 8 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) 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 81.91 268.09 23% 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 Cumulative Disbursements Restructuring History 7/31/2015 Page 9 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Karnataka State Highway Improvement (P107649) There has been no restructuring to date. Related Project(s) There are no related projects. 7/31/2015 Page 10 of 10 Public Disclosure Copy