for official use only - world bank · 2019. 4. 24. · for official use only report no: pad2830...

FOR OFFICIAL USE ONLY

Report No: PAD2830

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED LOAN

IN THE AMOUNT OF

US$250 MILLION

TO THE

REPUBLIC OF INDIA

FOR A

RAJASTHAN STATE HIGHWAYS DEVELOPMENT PROGRAM II PROJECT

March 8, 2019 Transport Global Practice South Asia Region

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS

(Exchange Rate Effective February 20, 2019)

Currency Unit = Indian Rupees (INR)

INR 71.1773 = US$1

FISCAL YEAR

April 1 – March 31

Regional Vice President: Hartwig Schafer

Country Director: Junaid Kamal Ahmad

Senior Global Practice Director: Guangzhe Chen

Practice Manager: Shomik Raj Mehndiratta

Task Team Leader(s): Mesfin Wodajo Jijo, Reenu Aneja

ABBREVIATIONS AND ACRONYMS AE Authority Engineer

BOT Build-Operate-Transfer

DLI Disbursement Linked Indicator

e-PMS Electronic Project Management System

e-RAP Electronic Resettlement Action Plan

EIA Environmental Impact Assessment

EIRR Economic Internal Rate of Return

EMF Environment Management Framework

EMP Environment Management Plan

EPC Engineering, Procurement, and Construction

FM Financial Management

GHG Greenhouse Gas

GIS Geographic Information System

GoI Government of India

GoR Government of Rajasthan

GRM Grievance Redressal Mechanism

GSDP Gross State Domestic Product

HAM Hybrid Annuity Model

HDM Highway Development and Maintenance Management System

ICC Internal Complaints Committee

IE Independent Engineer

IRC Indian Roads Congress

ITS Intelligent Transportation System

KPI Key Performance Indicator

MFD Maximizing Finance for Development

MIS Management Information System

MoRTH Ministry of Road Transport and Highways

PIU Project Implementation Unit

PMU Project Management Unit

PPP Public-Private Partnership

PWD Public Works Department

RFCTLAR&R Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

RADMS Road Accident Data Management System

RAMS Road Asset Management System

RAP Resettlement Action Plan

RIDCOR Road Infrastructure Development Company of Rajasthan

RSRDC Rajasthan State Road Development Corporation

RRSMP Rajasthan Road Sector Modernization Project

RSHA Rajasthan State Highways Authority

RSHDP Rajasthan State Highways Development Program

SHWW Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal)

SIA Social Impact Assessment

SLA Service-Level Agreement

SOE State-Owned Enterprise

SPV Special Purpose Vehicle

SRF State Road Fund

TAC Technical Audit Consultant

UDAY Ujwal DISCOM Assurance Yojana

The World Bank Rajasthan State Highways Dev Program II (P157141)

TABLE OF CONTENTS

DATASHEET ............................................................................ Error! Bookmark not defined.

I. STRATEGIC CONTEXT ............................................................................................... 10

A. State Context ............................................................................................................................ 10

B. Sectoral and Institutional Context ............................................................................................ 11

C. Relevance to Higher Level Objectives ....................................................................................... 14

II. PROJECT DESCRIPTION ............................................................................................. 15

A. Project Development Objective ............................................................................................... 15

B. Project Components ................................................................................................................. 15

C. Project Beneficiaries ................................................................................................................. 22

D. Results Chain ............................................................................................................................ 22

E. Rationale for Bank Involvement and Role of Partners ............................................................. 23

F. Lessons Learned and Reflected in the Project Design .............................................................. 23

III. IMPLEMENTATION ARRANGEMENTS ....................................................................... 24

A. Institutional and Implementation Arrangements .................................................................... 24

B. Results Monitoring and Evaluation Arrangements................................................................... 24

C. Sustainability ............................................................................................................................. 25

IV. PROJECT APPRAISAL SUMMARY .............................................................................. 25

A. Technical, Economic and Financial Analysis (if applicable) ...................................................... 25

B. Fiduciary .................................................................................................................................... 27

C. Safeguards ................................................................................................................................ 29

V. KEY RISKS ................................................................................................................ 32

VI. RESULTS FRAMEWORK AND MONITORING .............................................................. 34

Annex-1: Disbursement Linked Indicators and Verification Protocols .............................. 67

Annex 2: Operationalization of the Rajasthan State Highway Authority .......................... 78

Annex 3: Implementation Support Plan .......................................................................... 83

Annex 4: Mainstreaming Gender Actions ........................................................................ 86


Page 1 of 88

DATASHEET

BASIC INFORMATION BASIC_INFO_TABLE

Country(ies) Project Name

India Rajasthan State Highways Development Program II

Project ID Financing Instrument Environmental Assessment Category

P157141 Investment Project Financing

B-Partial Assessment

Financing & Implementation Modalities

[ ] Multiphase Programmatic Approach (MPA) [ ] Contingent Emergency Response Component (CERC)

[ ] Series of Projects (SOP) [ ] Fragile State(s)

[✓] Disbursement-linked Indicators (DLIs) [ ] Small State(s)

[ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country

[ ] Project-Based Guarantee [ ] Conflict

[ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster

[ ] Alternate Procurement Arrangements (APA)

Expected Approval Date Expected Closing Date

29-Mar-2019 29-Mar-2024

Bank/IFC Collaboration

No

Proposed Development Objective(s)

The PDO is to build capacity for better management of state highways and to improve traffic flows on selected state highways in the state of Rajasthan.

Components

Component Name Cost (US$, millions)

Operationalization of the Rajasthan State Highways Authority 5.00

State Highways Improvements 394.36

The World Bank Rajasthan State Highways Development Program II (P157141)

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Institutional Strengthening 3.90

Road Safety 10.00

Project Management Support 4.80

Unallocated 2.33

Front End Fee 0.63

Organizations

Borrower: Republic of India

Implementing Agency: The State of Rajasthan

PROJECT FINANCING DATA (US$, Millions)

SUMMARY-NewFin1

Total Project Cost 421.02

Total Financing 421.02

of which IBRD/IDA 250.00

Financing Gap 0.00

DETAILS-NewFinEnh1

World Bank Group Financing

International Bank for Reconstruction and Development (IBRD) 250.00

Non-World Bank Group Financing

Counterpart Funding 125.55

Borrower/Recipient 125.55

Commercial Financing 45.47

Unguaranteed Commercial Financing 45.47

Expected Disbursements (in US$, Millions)

WB Fiscal Year 2019 2020 2021 2022 2023 2024 2025

Annual 3.01 13.47 26.96 53.56 74.81 69.09 9.09

Cumulative 3.01 16.48 43.44 97.00 171.82 240.91 250.00


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INSTITUTIONAL DATA Practice Area (Lead) Contributing Practice Areas

Transport Gender, Governance, Jobs

Climate Change and Disaster Screening

This operation has been screened for short and long-term climate change and disaster risks

Gender Tag

Does the project plan to undertake any of the following?

a. Analysis to identify Project-relevant gaps between males and females, especially in light of country gaps identified through SCD and CPF

Yes

b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or men's empowerment

Yes

c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes

SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)

Risk Category Rating

1. Political and Governance ⚫ Substantial

2. Macroeconomic ⚫ Moderate

3. Sector Strategies and Policies ⚫ Substantial

4. Technical Design of Project or Program ⚫ Moderate

5. Institutional Capacity for Implementation and Sustainability ⚫ Substantial

6. Fiduciary ⚫ Moderate

7. Environment and Social ⚫ Substantial

8. Stakeholders ⚫ Moderate

9. Other ⚫ Moderate

10. Overall ⚫ Substantial


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COMPLIANCE

Policy Does the project depart from the CPF in content or in other significant respects?

[ ] Yes [✓] No

Does the project require any waivers of Bank policies?

[ ] Yes [✓] No

Safeguard Policies Triggered by the Project Yes No

Environmental Assessment OP/BP 4.01 ✔

Performance Standards for Private Sector Activities OP/BP 4.03 ✔

Natural Habitats OP/BP 4.04 ✔

Forests OP/BP 4.36 ✔

Pest Management OP 4.09 ✔

Physical Cultural Resources OP/BP 4.11 ✔

Indigenous Peoples OP/BP 4.10 ✔

Involuntary Resettlement OP/BP 4.12 ✔

Safety of Dams OP/BP 4.37 ✔

Projects on International Waterways OP/BP 7.50 ✔

Projects in Disputed Areas OP/BP 7.60 ✔

Legal Covenants

Sections and Description 1. RSHA Cell (Section I.A.2(a) of the Schedule to the Project Agreement) Recurrent: YES Due Date: N/A Frequency: Throughout Project implementation Description: GoR to establish a dedicated management cell (RSHA cell) within PWD with qualified and experienced staff in adequate numbers and under terms of reference acceptable to the Bank, vested with powers, financial resources and functions/competencies acceptable to the Bank, for the carrying out the Project activities under Component 1 of the Project.

Sections and Description 2. RSHA Cell Transfer (Section I.A.2(b) of the Schedule to the Project Agreement) Recurrent: NO Due Date: N/A Frequency: N/A


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Description: GoR to transfer the RSHA Cell functions to RSHA, upon the Bank’s satisfactory assessment of: (a) RSHA’s fiduciary and safeguard systems; (b) clear delimitation of RSHA’s governance framework and internal roles and responsibilities; (c) adequate budgetary resources allocated to RSHA.

Sections and Description 3. Project Management Unit (PMU) (Section I.3(a) of the Schedule to the Project Agreement) Recurrent: YES Due Date: N/A Frequency: Throughout Project Implementation Description: GoR to maintain within the PPP division of PWD a PMU with qualified and experienced staff in adequate numbers and under terms of reference acceptable to the Bank, vested with powers, financial resources and functions/competencies acceptable to the Bank, for the carrying out the Project activities under Components 2, 3, 4 and 5 of the Project (including reporting on fulfilment/achievement of DLI(s)/DLR(s)).

Sections and Description 4. Project Implementation Unites (PIUs) (Section I.A.3(b) of the Schedule to the Project Agreement) Recurrent: YES Due Date: N/A Frequency: Throughout Project Implementation Description: GoR to maintain nine (9) PIUs established as field (district) offices, each of them headed by an executive engineer, and all of them with qualified and experienced staff in adequate numbers and under terms of reference acceptable to the Bank, vested with powers, financial resources and functions/competencies acceptable to the Bank, for purposes of providing support to the PPP Division in carrying out the Project activities under Components 2, 3, 4 and 5 of the Project.

Sections and Description 5. Authority Engineer (Section I.A.3(c) of the Schedule to the Project Agreement) Recurrent: YES Due Date: Prior to commencing civil works under EPC Contracts Frequency: Throughout Project Implementation Description: PWD to engage, prior to commencing any civil works under EPC Contracts, and thereafter maintain, the service of an engineering firm, with qualifications and experience acceptable to the Bank, to assist the PPP Division with EPC Contract management.

Sections and Description 6. Independent Engineer (Section I.A.3(d) of the Schedule to the Project Agreement) Recurrent: YES Due Date: Prior to commencing civil works under PPP/HAM Contracts Frequency: Throughout Project Implementation Description: PWD to engage, prior to commencing any civil works under PPP/HAM Contracts, and thereafter maintain, the service of one or more engineering firms, with qualifications and experience acceptable to the Bank, to assist the PPP Division with PPP/HAM Contract management.

Sections and Description 7. Project Management Consultant (PMC) (Section I.A.3(e) of the Schedule to the Project Agreement) Recurrent: YES Due Date: Two (2) months after the Effectiveness Frequency: Throughout Project Implementation


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Description: PWD to engage and maintain the services of project management consulting firm (PMC), with qualifications and experience acceptable to the Bank, to assist the PPP Division with technical advice and implementation support for the Project.

Sections and Description 8. Technical Audit Consultant (TAC) (Section I.A.3(f) of the Schedule to the Project Agreement) Recurrent: YES Due Date: Two (2) months after the Effectiveness Frequency: Throughout Project Implementation Description: PWD to engage and maintain the services of technical audit consulting firm (TAC), with qualifications and experience acceptable to the Bank, to carry out annual integrated performance audits under terms of reference satisfactory to the Bank, including reviewing/assessing EPC Contracts and PPP/HAM Contracts, the Authority Engineer(s)’ and Independent Engineer(s)’ performances, and verifying the achievement of the DLI(s)/DLR(s).

Sections and Description 9. Internal Auditor (Section I.A.3(g) of the Schedule to the Project Agreement) Recurrent: YES Due Date: four (4) months after the Effectiveness Frequency: Throughout Project Implementation Description: PWD to engage and maintain the service of a consulting firm, with qualification and experience acceptable to the Bank and under term of reference agreed with the Bank, to carry out semi-annual joint fiduciary internal audits of PWD and RSHA for purposes of the Project.

Sections and Description 10. Project Documents – Operations Manual (Section I.B of the Schedule to the Project Agreement) Recurrent: YES Due Date: N/A Frequency: Throughout Project Implementation Description: PWD and RSHA to implement the Project in accordance with the Operations Manual.

Sections and Description 11. Annual Work Plans (Section I.C of the Schedule to the Project Agreement) Recurrent: YES Due Date: March 31 of each year (commencing on 2020) Frequency: Annually Description: PWD and RSHA to prepare and furnish to the Bank annual work plans and budgets for their respective parts of the Project, covering the activities proposed for the subsequent fiscal year of Project implementation.

Sections and Description 12. Safeguard Documents (Section I.D.1 of the Schedule to the Project Agreement) Recurrent: YES Due Date: N/A Frequency: Throughout Project Implementation Description: PWD and RSHA to carry out their respective parts of the Project in accordance with the EMP(s), SIA/SMP cum RAP(s) prepare and/or to be prepared pursuant to the EMF and RPF for the Project.

Sections and Description


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13. Safeguard Screening (Section I.D.2 of the Schedule to the Project Agreement) Recurrent: YES Due Date: Prior to inviting any bids for roads Frequency: Throughout Project Implementation Description: With respect to each road, or section thereof, to be rehabilitated, strengthened, widened, upgraded and/or maintained, PWD and RSHA to refrain from inviting bids for any contract or undertaking any activities, until and unless: (a) the proposed activities have been screened by the PPP Division and the PMC as per the EMF and RPF; (b) the respective EMP(s) and/or SIA/SMP cum RAP() has/have been prepared and submitted to the Bank for review, and the Bank notified its no objection thereto; and (c) these safeguard documents have been publicly disclosed for at least thirty (30) days in local language(s) at the relevant Project sites.

Sections and Description 14. Statutory Clearances & Compensations Payments (Section I.D.3 of the Schedule to the Project Agreement) Recurrent: YES Due Date: Prior to commencing any civil works Frequency: Throughout Project Implementation Description: PWD and RSHA to ensure, prior to commencing any civil works on a road, or section thereof, that: (a) all necessary governmental permits and clearances have been obtained; (b) all pre-construction conditions imposed under such permits/clearances have been complied with/fulfilled; and (c) all resettlement measures set forth in the respective SIA/SMP cum RAP have been executed -including full payment of compensation prior to displacement and/or provision of relocation assistance to all affected persons.

Sections and Description 15. Contractors’ Safeguard Obligation (Section I.D.4 of the Schedule to the Project Agreement) Recurrent: YES Due Date: N/A Frequency: Throughout Project Implementation Description: PWD and RSHA to ensure that each contract for civil works under the Project includes the obligation of the relevant contractor to comply with the relevant safeguard documents (including site-specific labor influx management action plans) applicable to such civil works commissioned/awarded pursuant to said contract.

Sections and Description 16. Safeguards Monitoring and Reporting (Section I.D.5 of the Schedule to the Project Agreement) Recurrent: YES Due Date: Quarterly Frequency: Quarterly Description: PWD and RSHA to: (a) maintain monitoring and evaluation protocols and record keeping procedures adequate to supervise and assess, on an on-going basis, the implementation of/compliance with the Safeguard Documents; and (b) furnish to the Bank the reports prepared by the PPP Division, with the assistance of the PMC, on general Project compliance with the Safeguard Documents and the social and environmental impact of Project activities.

Sections and Description 17. Strengthening of GoR’s Anti-Sexual Harassment Committee (Section I.D.7 of the Schedule to the PA) Recurrent: NO Due Date: Two (2) months after the Effectiveness Frequency: N/A Description: GoR to strengthen the internal complaint committee established pursuant to The Sexual Harassment of Women as Workplace (Prevention, Prohibition and Redressal) Act, by developing and adopting standard


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operating procedures therefor, in a manner and substance satisfactory to the Bank.

Sections and Description 18. Road Safety Measures and Enforcement -limitations to financing criminal enforcement activities (Section I.E of the Schedule to the Project Agreement) Recurrent: YES Due Date: N/A Frequency: Throughout Project Implementation Description: In carrying out sub-components 4(a), 4(b) and 4(c) of the Project, PWD to ensure that all goods and technical assistance provided to Rajasthan police are; (a) used exclusively for the sole purpose of managing Rajasthan’s road traffic laws and regulations; (b) not used to support the investigation, prosecution and/or enforcement of judgments that target individuals; and (c) not used to purchase any arms or ammunition or train nay personnel in the use thereof.

Sections and Description 19. Ineligible Expenditures (Section I.F. of the Schedule to the Project Agreement) Recurrent: YES Due Date: N/A Frequency: Throughout Project Implementation Description: GoR to financed out of its own resources: (a) any amounts disbursed or expenditures incurred by RSHA prior to the readiness assessment carried out by the Bank; (b) any expenditures incurred in relation to contractors procured by RSHA prior to the Bank’s carrying out the RSHA readiness assessment; (c) any agency charges and/or centage charges collected by GoR’s agencies for carrying out the Project; (d) any compensation, resettlement and rehabilitation payments to Project affected persons; (e) any compensatory afforestation payments; (f) any interest during construction; (h) any retention money deducted from contract payment and not release by the Closing Date; (i) any purchase for arms and/or ammunition, or any expenses incurred for the training of personnel in the use thereof; and (j) any expenditures objected or considered ineligible by the Bank’s or the Project’s auditors.

Sections and Description 20. Mid-Term Review (Section II.A.2 of the Schedule to the Project Agreement) Recurrent: NO Due Date: November 30, 2021 Frequency: N/A Description: GoR to prepare and furnish to GoI and the Bank a mid-term review report integrating the results of the monitoring and evaluation of Project activities to that day and detailing the progress achieved in carrying out the Project and setting forth the measures recommended to ensure the efficient implementation of the Project thereafter.

Sections and Description 21. Satisfaction Surveys (Section II.A.3 of the Schedule to the Project Agreement) Recurrent: NO Due Date: Months 9th, 30th and 54th after the Effectiveness Frequency: N/A Description: GoR to carry out satisfaction surveys of Project stakeholders.

Sections and Description 22. DLR(s) Verification Reports (Section II.B of the Schedule to the Project Agreement Recurrent: YES


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Due Date: N/A Frequency: Semi-annual Description: PWD and RSHA to undertake, through the TAC, the verification of progress made on the achievement/fulfillment of the DLR(s) pursuant to the verification protocol agreed with the Bank, and thereafter furnish the verification reports to the Bank within 30 days after the TAC’s completion of each such report.

Conditions

Type Description

Effectiveness Operations Manual (Section 5.01 of the Loan Agreement): PWD to have drafted and adopted

and Operations Manual.

Type Description

Disbursement RSHA Readiness (Section III.B.1(b)(i) of Schedule 2 to the Loan Agreement): GoI/GoR to prove

that: (a) the RSHA Cell has been established with the deputation of two senior officials from

Rajasthan civil service and the recruitment of at least two key experts (out of five required);

(b) RSHA has commenced/assumed its functions with at least the Chairperson and four full-

time members (Finance, Safety & Technology, Works Contracts & Operations, and

Concessions & PPP) appointed; (c) a budget-head for RSHA under the PWD’s budget-head

has been created/opened; (d) DLRs 2.8 and 2.9 of DLI 2 (i.e. Cabinet approval of RSHA FM

Rules, and earmarking of at least 50% of SRDF for the development and maintenance of state

highways) have been met.


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I. STRATEGIC CONTEXT

A. State Context

1. During the past two decades, Rajasthan has grown faster and achieved a greater poverty reduction than any other low-income state.1 Rajasthan is India’s largest state in area (342,239 km, covering about 10 percent of the total area of the country) and seventh in population (approximately 75 million estimated in 2018, 5 percent of the total population of the country). Its strong economic and social development performance reflects broad-based efforts toward policy reforms across sectors that have contributed to a more productive and diversified agriculture2 sector, higher investments in manufacturing, and substantial improvements in public service delivery. During 2005–2012, Rajasthan’s poverty rate declined by 19.7 percentage points (from 34.4 percent to 14.7 percent), compared with the national decline of 15.3 percent over the same period. The state’s poverty reduction occurred in both urban and rural areas.

2. Despite achievements, Rajasthan still lags behind many other developed states. Over the last two decades, Rajasthan’s average annual per capita growth rate was 4.9 percent, about 1.2 percentage points above the average of low-income states, though lower by 0.3 percentage points from the all-India average. However, its per capita gross state domestic product3 (GSDP) continues to rank 22nd among India’s states and territories, the same position it had in 1992. While income poverty has declined significantly, social indicators (for example, maternal and infant mortality, gender gaps in education, and health and labor market participation) remain among the worst in India and rank near the bottom even among low-income states.

3. Rajasthan has made major progress in fiscal consolidation since the adoption of the Fiscal Responsibility and Budget Management Act. However, growing pressures from the electricity distribution companies and the rising need for increased development and social expenditure could threaten Rajasthan’s fiscal sustainability going forward. The state currently registers a fiscal deficit of 6.1 percent (with the UDAY scheme)4 and 3.15 percent (without UDAY scheme). Given its strategic geographical location, the economic potential of the state can be unleashed by building on its inherent strengths in agriculture, manufacturing, tourism, and service delivery.

4. Increasing capital expenditure will be essential to build the infrastructure necessary for sustainable and inclusive urbanization including housing and water and sanitation infrastructure, which is one of the key drivers for poverty reduction. Capital expenditures in Rajasthan lag behind other low-income states and have not supported infrastructure development at the scale required. For example, Andhra Pradesh spent nearly 5.3 percent of GSDP on capital outlays during FY06–10 to ramp up infrastructure development; similarly, Bihar and Uttar Pradesh spent an average of 4.3 percent and 4.4 percent of GSDP, respectively, during the same period, while Rajasthan spent only 2.7 percent.

1 Low-income states in India include Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, and Uttar Pradesh. 2 About 75 percent of the state’s population lives in rural areas and depends on agriculture for its livelihood, however, contributing 24 percent to the state gross value added. Manufacturing and services contribute about 30 percent and 45 percent, respectively. 3 The per capita income of the state is US$1,374 compared to the national average of US$1,540 at 2016–17 current prices. 4 Ujwal DISCOM Assurance Yojana (UDAY) is the financial turnaround and revival package of the Government of India (GoI) for electricity distribution companies of India.


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5. The Government of Rajasthan (GoR) has identified critical areas where the state has competitive advantage and has initiated several interventions and investments to exploit the full potential of agriculture5 and agro-based industries, mining and minerals processing,6 tourism, and handicrafts and cottage industries. These initiatives have been showed at investment partnership platforms such as Resurgent Rajasthan7 which have been instrumental in attracting private investment in many sectors including agriculture, manufacturing, IT, electricity, and so on. The GoR’s plan to strengthen the productive sectors of the economy and maintain growth in the service sector will require sustained investments and rapid improvements including management of critical infrastructure such as roads, power, and so on.

B. Sectoral and Institutional Context

6. A high-quality, sustainable road network with inclusive connectivity is essential to grow and diversify Rajasthan’s economic base of agriculture, manufacturing, and tourism and to improve social services. Rajasthan has a road network of 226,854 km, including 8,202 km of national highways, 15,438 km of state highways, 8,462 km of major district roads, 31,431 km of other district roads, and 163,320 km of village/rural roads (data as of 2016).8 Overall road density in Rajasthan is relatively low, at 66 km per 100 km2, compared to the national average of 148 km per 100 km2, but this reflects the fact that nearly 40 percent of the state’s area consists of the Thar Desert, with a very low population density. If the Thar Desert area is omitted, the state’s average road density is about 100 km per 100 km2 but still much lower than key states such as Kerala, Punjab, Bihar, and Uttar Pradesh.

7. State highway development in Rajasthan is crucial to the success of national-level flagship programs. The state has geographical advantage of being strategically situated near commercial and industrial hubs and ports. Nearly 39 percent of the Western Dedicated Freight Corridor passes through the State of Rajasthan, and about 60 percent of the state’s area falls under the project influence zone of the Delhi-Mumbai Industrial Corridor, which makes Rajasthan an attractive destination for setting up industrial and support infrastructure units. In addition, 20 percent of the strategic network under the GoI Bharatmala Pariyojana9 to improve efficiency of road traffic movements across the country traverses the state. Timely improvement of the strategic state highway network (acting as feeder corridors) in the state would reduce the transport cost of interstate freight movement which render the state as a preferred inland transit, thereby improving the competitive economic advantage that comes with the implementation of Goods and Services Tax (GST).

8. Government funding of the road sector in Rajasthan is relatively low and is constrained by structural factors including continued trend of underfunding of ordinary maintenance relative to capital expenditures. Though the GoR has been endeavoring to increase the budgetary support for the road sector in recent years, the expenditure on roads as a percentage of public expenditure in

5 The state accounts for 10 percent of the milk, 35 percent of wool, and 10 percent of the meat produced in the country; it is the largest producer of wool and the second largest producer of milk in the country (reference). 6 Rajasthan has about 65 varieties of minerals and accounts for more than 70 percent of India’s total mineral production(reference). 7 http://resurgent.rajasthan.gov.in/. 8 Source: Government of Rajasthan, Economic Review 2017-18, Directorate of Economics and Statistics, Department of Planning. 9 It is an ambitious umbrella highway development project that focuses on optimizing the efficiency of road traffic movements across the country by bridging critical infrastructure gaps and improving the Logistics Performance Index, creates jobs, and provides an impetus to economic growth. Under Phase 1 of this massive program, a total of around 34,800 km of roads at an investment of over INR 5.35 trillion would be constructed by 2022.


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2013–14 was 5.6 percent, 12th out of a sample of 15 states,10 where the shares ranged from a high of 11.6 percent in Jharkhand to a low of 3.2 percent in Punjab. Financing of the road sector is dependent on the vagaries of yearly budgets and releases from the State Treasury and the GoI. The allocations can vary significantly from year to year, making it difficult to undertake multiyear planning and asset management. In addition, there is no dedicated funding for road maintenance nor is there a network-based system for efficient allocation of resources between asset creation and maintenance. Routine and period maintenance are carried out largely on an ad hoc basis, driven mainly by urgency rather than structured decision making, reactive than preventive and costlier than cost-effective. In FY15–16, the budgetary allocation for non-plan expenditure was about INR 4,500 million (US$70 million) which addresses only 10 percent of the maintenance requirement. The Rajasthan State Road Fund11 (SRF), finances development of roads primarily for viability gap funding12 for public-private partnerships (PPPs) in state highways with no mandate to finance maintenance. Finally, the revenue collected under Rajasthan’s Motor Vehicle Taxation Act accrues to the state’s consolidated fund. Because of these factors that have contributed to years of underinvestment in maintenance, many of the state highways and major district roads are in poor condition in terms of riding quality, geometry, pavement strength, drainage, and safety standards. The Public Works Department (PWD) collects road condition data based on visual inspections and categorize conditions, about 57 percent of this network13 was in good condition.

9. Prospects for traditional toll-based PPPs are limited. Rajasthan was one of the first states in India to engage the private sector to finance highways. Through the PWD, the Rajasthan State Road Development and Construction Corporation Ltd. (RSRDC),14 and the Road Infrastructure Development Company of Rajasthan (RIDCOR),15 about 5,000 km of roads have been developed through PPPs (primarily build-operate-transfer [BOT]). By now, the roads with high enough volumes of traffic to make such schemes viable have already been taken up, and there remains little potential for expansion. The appetite of private contractors for traditional toll-based PPPs has been limited recently in Rajasthan due to lack of commercial viability. However, there is still potential to maximize finance for development by attracting private financing through the hybrid annuity model (HAM). HAM relieves the concessionaires of traffic risks, and it mobilizes part (50–60 percent) of the capital financing during the construction phase.

10. An emphasis on asset creation—as opposed to strategic asset management—has led to suboptimal utilization of limited resources and deficient service for road users. In effect, the state has been creating road infrastructure faster than it can maintain. This approach has been driven by the nature of the funding structure, political imperatives, and a lack of reliable information on road assets to inform decisions on efficient allocation of resources. The state’s PWD has been developing a road asset management system (RAMS), including a functional geographic information system (GIS)-based asset register, physical conditions, maintenance and rehabilitation costs, and other information. The system will be linked to a planning tool such as Highway Development and Maintenance

10 Road Sector Policy Study by ECORYS under the RRSMP. 11 Established under the Rajasthan State Road Development Fund Act 2004 and funded by a cess on motor fuels: INR 1.75 per liter on petrol and INR 1.25 per liter on diesel. 12 Viability Gap Funding is an approach in which a government grant is provided to support an infrastructure project that is economically justified but falls short of financial viability due to factors such as a long gestation periods and/or the inability to increase user charges to commercial levels. 13 The data are based on the survey conducted in 2016 on a sample of 83,579 km of the network. 14 The RSRDC is a government-owned enterprise established under the Companies Act for undertaking works related to roads, bridges, and buildings. 15 RIDCOR is a company developed as a joint venture between the Government of Rajasthan and Infrastructure Leasing and Financial Services Limited (IL&FS) in 2004 to implement 'Mega Highways Project' in the state.


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Management System 4 (HDM 4) to generate an evidence-based prioritization and investment program.

11. The institutional framework for the roads sector in Rajasthan needs to be modernized. The PWD is responsible for about 70 percent of the state’s road network and is focused on road construction through its own Project Implementation Units (PIUs) or through special purpose vehicles (SPVs) such as RSRDC and RIDCOR. The PWD is structured as a traditional government line department and has a broad mandate to manage a huge network of all classes of roads, from the most important state highways to the smallest rural and village roads. As such, the PWD is not designed to provide special attention to the strategic highway network, which carries as much as 80 percent of total traffic, nor does the PWD have the mandate to mobilize outside resources or the kind of accountability to users that a corporate agency has. To help address these issues, a Rajasthan State Highways Authority (RSHA) has been created under the Rajasthan State Highways (RSH) Act of 2014 as a corporate body for management of the state’s strategic road network with greater efficiency, accountability, autonomy, and sustainability. The Act provides power to the RSHA to regulate traffic and take other measures to improve safety and smooth flow of traffic on the highways and improved network financing through investing in funds and raising resources from different sources including corporate borrowings. Giving priority to the strategic network, the Act has also dedicated 50 percent of the annual resources of the SRF for the development and maintenance of the state highways in the state.

12. To focus on strategic network in the state, the GoR launched the Rajasthan State Highways Development Program (RSHDP) in FY14–15 as one of the flagship programs under Resurgent Rajasthan. The RSHDP is an ambitious plan of developing 20,000 km of state highways and major district roads through PPPs, requiring US$10 billion investments for the entire development. In the first phase of the program, 139 priority road corridors with a length of 9,038 km—selected based on traffic levels and viability for private capital investments were identified. To support this huge investment requirement, the state government has sought assistance from multiple development partners such as the World Bank, Asian Development Bank, and Malaysian companies through Construction Industry Development Board (CIDB) Holdings (through Swiss Challenge Mode) which will be implemented under multiple phases. The financial feasibility studies for all these roads have revealed that the traditional BOT-Toll PPP model would not be commercially viable and amenable for these corridors due to low traffic densities. However, there is potential to harness private investment and operational efficiencies in developing and operating such corridors through innovative models such as the engineering, procurement, and construction (EPC)16 and hybrid annuity.

13. Despite efforts made in recent years including a dedicated road safety fund,17 road safety remains a challenge in Rajasthan, as elsewhere in India. Rajasthan is placed among the top 10 worst performers in road safety in India, with 13.7 persons killed annually per 100,000 population.18 Although the state reported a slight reduction in road fatalities over the past two consecutive years, 2016 and 2017, a total of 22,112 crashes were recorded in 2017 in which 10,444 persons died and 22,071 sustained injuries. According to 2016 accident data, the fatality rates of 29 percent for two wheelers (including bicycles) and 8.6 percent for pedestrians indicate the vulnerability of these road

16 EPC is a contracting arrangement in which the contractor is responsible for design, procurement, construction, commissioning, and handover of the project to the end user or owner. This form of contract is covered by the Fédération Internationale Des Ingénieurs-Conseils (FIDIC) Silver Book. 17 Road safety initiatives have included statewide education and awareness campaigns, training of police on enforcement, black spot improvements, and e-challan, a digital traffic enforcement system. 18 Population data used from the Census projections and accident data taken from the Ministry of Road Transport and Highways (MoRTH).


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user groups. The key systemic problems identified19 include absence of proper recording of crash data and scientific crash investigation leading to ad hoc road safety investment with limited outcomes on the ground, inconsistent speed limits or no speed limits, and lack of integration of infrastructure improvement with institutional and educational elements to maximize the synergies among interventions. In addition, institutionally road safety responsibilities are fragmented which leads to unclear accountability for results.

14. Road infrastructure resilience to climatic events is another major concern, considering the current network condition as above-mentioned and critical need to ensure sustainability of road investments. Rajasthan is located in the hottest climatic zone of India, with two thirds of its area comprising the Thar desert, which is exposed to intense solar radiation and high wind velocity. Average temperatures range from 250 to 460 C in summers and 80 to 280 C in winters. Additionally, mean temperatures across the state rose by 0.010 C to 0.020 C during the period 1951 to 2010. Western and southern districts of Rajasthan are more affected by droughts. Eastern districts of Rajasthan are more affected by heavy rainfall. High temperature, increased occurrences of extreme rainfall, severe droughts, and strong winds cause severe damages to the infrastructure. Softening and cracking of pavements due to drastic changes in temperature for example makes it even more vulnerable to heavy rains. The state thus has high vulnerability and low adaptive capacity to climate change challenges.

C. Relevance to Higher Level Objectives

15. The project is aligned with the key focus areas (resource efficiency, enhancing competitiveness and enabling job creation and investing in human capital) and implementation strategy of strengthening public sector institutions as outlined in the Country Partnership Framework for India for FY18–22 (Report No. 1266667-IN).

16. The project will support resource efficient growth by adopting greener and efficient transport pathways by providing better road asset management with increased efficiencies in capital expenditure and operating expenditure, through use of incentive-based contracting structure and use of greener materials. The project’s support for operationalizing a corporatized State Highway Authority and demand-based road network planning, development, and road asset management will contribute toward more efficient and accountable provision of road services and higher quality of the strategic highway network for all users. The upgrading of about 766 km of state highways will promote reduced travel times; lower costs of doing business for producers and consumers; and faster, cheaper access to basic services for the population at large, especially those living in rural areas and smaller centers along the corridors thereby improving competitiveness. The use of efficient contract modalities such as EPC and HAM, which include maintenance, will foster better and longer sustainability of the road improvements, while leveraging public resources to mobilize private sector capital. The project provides support to enhance sector management capacity including road safety management capacity by investing in training and capacity building of the staff engaged in the relevant stakeholder agencies.

19 According to the road safety management capacity review for the state conducted in 2017 under the World Bank-financed RRSMP.


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II. PROJECT DESCRIPTION

A. Project Development Objective

17. The Project Development Objective (PDO) is to build capacity for better management of state highways and to improve traffic flows on selected state highways in the state of Rajasthan.

18. The PDO indicators are as follows: (details are presented in the Results Framework, Section VI).

(a) Build capacity for better management of state highways

• State highways actively managed by the RSHA

• Share of State Road Fund resources earmarked for state highways (b) Improve traffic flows on selected state highways in Rajasthan

• Average travel times on project highways for cars

B. Project Components

19. To provide incentives for achieving results, especially with regard to the modernization of highway management, the lending instrument will be Investment Project Financing (IPF) with Disbursement-Linked Indicators (DLIs). See Section IV.B (Results Monitoring and Evaluation) and annex 1 for details of DLIs. The totality of the US$250 million loan will be disbursed based on achievement of results linked to DLIs (in addition to statements of expenditure).

20. The project will have five components.

Component 1: Operationalization of the Rajasthan State Highways Authority (Total cost US$5 million, including IBRD financing of US$3.50 million)

21. The project will support operationalization of the RSHA, in accordance with the provisions of the Rajasthan State Highways (RSH) Act, 2014. The goal is to transform the management of the strategic road network through operationalizing a corporatized and efficient state highways agency in a manner to be accountable to the public for the services it delivers. This component will support investing in institutional strengthening, beyond just training to have a lasting impact on how state-level transport capital investments are designed, appraised, prioritized, contracted and constructed, maintained, and evaluated. This component will support the institutional development and operationalization of the RSHA through (a) establishing its organizational and governance structure; (b) setting up the RSHA’s human resource management, financing and financial management (FM), procurement, contract management, risk management and accountability systems and frameworks, including environmental and social safeguard management functions; and (c) establishing and operationalizing the RSHA Fund according to the RSH Act, 2014.

22. The operationalization of the RSHA has a clear road map that includes the legal phase, the corporate governance phase, and the managerial and operational phase. The project’s support builds upon the progress done by the state authorities over recent years that culminated in the enactment of the RSH Act, 2014. Following this progress, the first 18 months of project implementation will heavily focus on critical milestones related to setting up the RSHA and making it fully operational. Figure 1 shows the major phases and milestones that cover the initial legal phase, the permanent corporate governance arrangements, and the operational and managerial aspects of the new institution. The details are provided in annex-2.


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Figure 1. Critical Institutional Milestones for Setting Up the RSHA

Component 2: State Highways Improvements (Total cost US$394.36 million, including IBRD financing of 225.47 million)

23. The project will support construction/upgrading/improvement and maintenance of 766 km of state highways and major district roads at an estimated cost of US$394.36 million through two contract approaches explained below:

(a) Subcomponent 2A: Upgrading and Maintenance through EPC Contracts (US$231.08 million). This subcomponent will support civil works under EPC contracts for widening/upgrading/improvement of approximately 472 km of existing state highways and major district roads to two-lane/four-lane with granular/paved shoulders. The scope includes, but is not limited to, widening formation width, realignment, structures, pavement strengthening, construction of toll plazas, fiber-optic ducting, safety improvements, and maintenance for a five-year period after the construction while applying social and environmental safeguard measures.

(b) Subcomponent 2B: Supervision of EPC Contracts (US$4.42 million). This subcomponent will finance the services of one or more firms as ‘authority engineers (AEs)’ for supervision of EPC contracts.

(c) Subcomponent 2C: Upgrading and Maintenance through PPP-Hybrid Annuity Mode (US$155.80 million). This subcomponent will support civil works under PPP-HAM20 contracts for widening/upgrading/improvement of approximately 294 km of existing state highways and major district roads to two-lane/four-lane with paved shoulders. The scope includes, but is not limited to, widening formation width, realignment, structures, pavement strengthening, safety improvements, construction of toll plazas, implementation of social and environmental safeguard measures, and operation and maintenance for 10 years. The concession will leverage private financing of about US$45 million. This subcomponent will also support the piloting of digital highways of approximate length 110 km through design and implementation of Intelligent Transportation System (ITS) interventions such as toll management systems and control center, incident detection and management systems using CCTV cameras, variable message signs, speed management systems using Automatic Number Plate Recognition (ANPR) speed cameras, and

20 Under the HAM contract, about 50 percent of the investment costs (including construction and financing) are met by government milestone construction payments, while the remaining share is met through private investment through debt and/or equity, which, in turn, is repaid by the government through semiannual annuity payments to the developer over the life of the concession period. The developer also receives a regular operations and maintenance payment which is subject to nonperformance deductions if the road is not maintained to specified standards. The private party does not have to bear traffic and inflation risks.

RSHA

cell

RSHACorporate

Governance

RSHAManagement

Systems

• Business model

• Organization structure• Staffing plan

• Manager & technical

staff• Transition strategy

• Permanent

Chairman• Permanent Board

of Directors

• Rules &

Regulations

• Budget

• Rajasthan State

Highway Act

• RSHA Fund

• Temporary

Chairman

& Board of

Directors


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solar-powered animal crossing warning system, among others.

(d) Subcomponent 2D: Supervision of HAM Contracts (US$3.06 million). This subcomponent will support the services of one or more firms as ‘independent engineers (IEs)’ for supervision of HAM contracts.

The upgrading works under subcomponents 2A and 2C will have attached long-term contracts. The Government of Rajasthan will bear the costs of maintenance in both cases including the period after the Project Loan closes.

Component 3: Institutional Strengthening (Total cost US$3.90 million, IBRD financing of US$3.90 million)

(a) Subcomponent 3A: Strengthening Business Processes and Systems (US$0.50 million). The project will support:

(i) the development of an online project management system (e-PMS), together with a companion smartphone application, to handle contract management, data reporting, quality control, invoicing, payments, and financial reporting electronically on a web-based platform;

(ii) the development of an online management information system for the implementation of electronic Resettlement Action Plans (e-RAPs) including georeferenced data gathering features and related smartphone application to track resettlement process on a real-time basis; and

(iii) provision of training for PIU and Project Management Unit (PMU) staff on these tools.

(b) Subcomponent 3B: Road Asset Management System and Network Planning Tool (US$1.50 million). The project will support:

(i) finalization and implementation of RAMS in the RSHA and PWD; (ii) development of a linked system for future highway network expansion/upgrading and

corresponding investment plans based on transport demand modeling; and (iii) strengthening of the existing asset management cell in the PWD and RSHA, including

training, communication, and knowledge exchanges with other states and countries.

(c) Subcomponent 3C: Citizen Engagement and Accountability Mechanisms (US$0.40 million). The project will support the design and implementation of the following mechanisms for citizen engagement and accountability:

(i) A comprehensive communications strategy including all project beneficiaries and project-affected persons to be kept informed of activities and issues that concern them

(ii) A Grievance Redress Mechanism (GRM) to deal with problems raised by project affected persons and serve as a conduit for soliciting inquiries, inviting suggestions, and increasing community participation

(d) Subcomponent 3D: Capacity Building of PWD’s and RSHA’s Staff (US$1.50 million). The project will support a program of training and capacity building for PWD and RSHA staff on, among others, procurement and financial management, PPP on highways, contract management, design of green and digital highways, social and environmental safeguards, road safety and corporate governance, including attending international and/or domestic training


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courses, study tours, workshops, international exposure visits, and knowledge exchanges.

Component 4: Road Safety (Total cost US$10.00 million, IBRD financing of US$10.00 million)

24. The road safety component will adopt a multisectoral approach to building the state’s capacity for road safety management, using both proactive and preventive methods.

(a) Subcomponent 4A: Road Accident Database Management System (RADMS) (US$2.00 million). This subcomponent will support developing and operationalizing an RADMS with the capability of community-based road accident reporting and links with RAMS including: (i) preparation of GIS-based database system for recording, reporting (by community through smartphone application), storage, analysis, and dissemination of road accidents; (ii) development of standard operating procedures; and (iii) implementation support to relevant stakeholders in running the RADMS

(b) Subcomponent 4B: Streamlining and Piloting Speed Management (US$4.00 million). Piloting a speed management program along selected high-risk corridors, including: (i) undertaking studies on current speed management practices and preparing comprehensive guidelines on speed management including recommendation on investment in relevant engineering measures, ITS and speed enforcement activities; (ii) identification of approximately 100 km of high-risk corridors in State Highways and/or major district roads for piloting speed management measures.

(c) Subcomponent 4C: Road Safety Performance Survey (US$0.80 million). This subcomponent will support carrying out comprehensive road safety performance survey for selected high-risk state highway network and/or major district roads (about 500 km) to establish their road safety level and formulate appropriate strategy and multilayer action plan (Subcomponent 4D) aiming to achieve an acceptable road safety risk level.

(d) Subcomponent 4D: Road Safety Strategy (US$0.20 million). Building upon the Road Safety Policy prepared under the RRSMP, this subcomponent will support developing a long-term road safety strategy based on the safe systems approach21 including the identification of funding mechanisms and a multiyear action plan.

(e) Subcomponent 4E: Spots Review of Approach to Black Spots22 (US$3.00 million). (i) Re-assessing the definition, identification and remediation approaches to black spots; (ii) preparing guidelines on prioritization of investment to improve black spots; and (iii) piloting improvement works on about 20 high-priority black spots.

Component 5: Project Management Support (Total cost US$4.80 million, including IBRD financing of US$4.80 million)

(a) Subcomponent 5A: Project Management for PWD (US$1.50 million). This sub-component will support strengthening the institutional capacity of PPP Division for the implementation of Components 2 through 5 of the Project and the performance of financial

21 https://roadsafety.piarc.org/en/road-safety-management-safe-system-approach/safe-system-principles. 22 In road safety management, a black spot is a location where road traffic accidents have historically been concentrated.

https://en.wikipedia.org/wiki/Road_safety

https://en.wikipedia.org/wiki/Road_traffic_accidents


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management, procurement and safeguard compliance functions, as well as the data collection and reporting as per the Project’s monitoring and evaluation requirements.

(b) Subcomponent 5B: Project Management Consultant (US$2.00 million). This subcomponent will finance the services of a Project Management Consultant (“PMC”) to provide technical advice and implementation support to the PPP Division in the implementation of Components 2 through 5 of the Project efficiently within the agreed timeline, budgeted cost, and in full compliance with the World Bank Guidelines and applicable state acts, rules, and regulations.

(c) Subcomponent 5C: Independent Technical Audits and DLI Verification (US$1.00 million). The project will finance the services of an independent Technical Audit Consultant (TAC) to perform an annual integrated performance audit covering, among others, engineering designs, management of social and environmental issues, procurement, quality assurance, contract management, compliance with loan and contract conditions, works supervision, and verification of the achievement of DLIs to trigger disbursements.

(d) Subcomponent 5D: Road Users Satisfaction Survey (RUSS) (US$0.30 million). The project will finance consultancy services to conduct panel surveys of road users’ satisfaction to obtain feedback on citizens’ perceptions of the adequacy and efficiency of services provided under the project. The survey will be carried out thrice during the life of the project: in Year 1 before the project implementation to establish baseline, at midterm, and toward the end of the project period.

Additional Initiatives under the Project

25. Gender equality and the needs of differently abled persons. Potential gender-related interventions23 under consideration include gender audits for road designs and security enhancements for women and girls at bus stops and other locations.24 With regard to differently abled persons, designs adjacent to built-up areas should as well include facilities such as access to and from the road, proper ramps at bus stops, and so on. The project will work with the PWD to support effective implementation of the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal Act, 2013. The project will support strengthening the Internal Complaints Committee (ICC), dissemination of information regarding the ICC, and standard operating procedures to register complaints and address them within the given time. The details are in annex-4.

26. Maximizing Finance for Development (MFD). The project incorporates MFD elements in two areas:(a) mobilizing private capital through a hybrid annuity PPP model on five highway upgrading subprojects of 294 km in length. Once successful financial close is achieved in the HAM state highways contract, the project will leverage around US$45 million in private financing and (b) operationalizing a corporatized highway agency with a mandate to mobilize commercial capital leveraging public resources at its disposal.

27. Climate change mitigation and adaptation mainstreamed in Components 1, 2 and 3. The project design has also incorporated adaption and mitigation measures to support the Government in

23 The team also analyzed the project with the Gender-Based Violence Risk Assessment Tool, based on factors such as scale of construction, labor influx management strategy, provisions for consultation, and supervision and monitoring throughout the project. The project is categorized as Low risk. 24 These include identification of the safest locations, provision of lights, wearable panic buttons to obtain help, and informing public transport times through simple apps to minimize waiting times at bus stops.


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addressing the road sector’s vulnerability to climate change particularly related to high temperature and flooding and develop institutional capacity for climate risk management.

(a) Adaptation (resilience). Based on the result of climate screening, the project design will incorporate measures, to the extent possible, to address the risks of climate vulnerability particularly related to high temperature, and flooding. Under Component 2, the project design will incorporate measures including but not limited to use of asphalt grade VG 30 to withstand high temperature and embankment protection, design of a subsurface drainage layer, and installation of equalizer cross-drainage structures on selected project corridors in the southwest region of the state for flooding. Specific attention will be given to areas in the Eastern region of the state, which are particularly prone to heavy rainfall and flooding, to provide sufficient cross drainage and road height. As construction uses a significant amount of the same shared scarce resource, the project design will, to the extent possible, consider specifications that requires the minimum amount of water; more importantly, the design will look at the adjacent catchment and design outflows from the road drainage system to convey it to the lowest point to harvest storm water for use by the community around, animals, and wildlife. In addition, the asset management system to be developed and implemented under Component 3b will have a built-in risk management mechanism to assess and map climate vulnerability, inform prioritization of network investment, monitoring and evaluation. As it is operationalized under Component 1, the RSHA will be guided by a sector policy which emphasizes on minimizing the carbon footprint of its operation; and the policy will further cascade down to the organizational objectives, business processes, standards and practices.

(b) Mitigation - Green Highways Approach. The project will mainstream, wherever feasible along the project highways, the green highways approach, given the potential in Rajasthan where abandoned mining wastes could be improvised and incorporated in the earthworks and pavements as appropriate. The approach includes resource efficiency and sustainability measures from a menu of options such as pavement recycling, use of local materials, recycled aggregates, use of innovative materials, plantations along the corridor, soil and water conservation, use of new/alternative technologies, and energy-efficient lighting.

28. Citizen’s engagement. The project mainstreams citizens’ engagement in two areas: (a) reporting road traffic accidents in rural areas, through a simple-to-use smart phone application linked to RADMS, and (b) participating in the baseline, midterm, and end line stage user satisfaction surveys, to capture users’ perception of the positive/negative changes that the project brings about.

29. Labor influx. Based on current trends, the road construction workforce is expected to comprise 30–50 percent migrant labor from neighboring and farther states. Labor influx screening matrix has been prepared to develop a site-specific Labor Influx Management Plan including a Code of Conduct for workers. The plan covers preventive measures on use of local resources and addresses safety and security of locals and implementation of welfare measures for migrant labor. This would also include compliance with all applicable labor laws. The labor officer of the PWD will be responsible for monitoring the management plan.

30. Table 1 shows the project costs and share of financing by components and subcomponents.


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Table 1. Project Cost and Financing (US$ Million)

Components/Subcomponents Cost

Including Contingency

World Bank

Financing

Percentage of World

Bank Financing

GoR Financing

Private Financing

Component 1: Operationalization of the Rajasthan State Highways Authority

5.00 3.50 70 1.50 —

Component 2: State Highway Improvements

394.36 225.47 57 123.42 45.47

Subcomponent 2A: Upgrading and Maintenance through EPC Contracts

231.08 164.08 71 67.00 —

Subcomponent 2B: Supervision of EPC Contracts

4.42 4.42 100 0.00 —

Subcomponent 2C: Upgrading and Maintenance through PPP - Hybrid Annuity Mode

155.80 53.91 35 56.42 45.47

Subcomponent 2D: Supervision of HAM Contracts

3.06 3.06 100 0.00 —

Component 3: Institutional Strengthening

3.90 3.90 100 0.00 —

Subcomponent 3A: Strengthening Business Processes and Systems

0.50 0.50 100 0.00 —

Subcomponent 3B: Road Asset Management System and Network Planning Tool

1.50 1.50 100 0.00 —

Subcomponent 3C: Citizen Engagement and Accountability Mechanisms

0.40 0.40 100 0.00 —

Subcomponent 3D: Capacity Building of PWD’s and RSHA’s Staff

1.50 1.50 100 0.00 —

Component 4: Road Safety 10.00 10.00 100 0.00 —

Subcomponent 4A: Road Accident Database Management System

2.00 2.00 100 0.00 —

Subcomponent 4B: Streamlining and Piloting Speed Management

4.00 4.00 100 0.00 —

Subcomponent 4C: Road Safety Performance Survey (iRAP studies)

0.80 0.80 100 0.00 —

Subcomponent 4D: Road Safety Strategy

0.20 0.20 100 0.00 —

Subcomponent 4E: Review of Approach to Black Spots

3.00 3.00 100 0.00 —

Component 5: Project Management Support

4.80 4.80 100 0.00 —

Subcomponent 5A: Project Management for PWD

1.50 1.50 100 0.00 —

Subcomponent 5B: Project Management Consultant

2.00 2.00 100 0.00 —

Subcomponent 5C: Independent Technical Audits and DLI Verification

1.00 1.00 100 0.00 —

Subcomponent 5D: Road Users Satisfaction Survey

0.30 0.30 100 0.00 —


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Components/Subcomponents Cost

Including Contingency

World Bank

Financing

Percentage of World

Bank Financing

GoR Financing

Private Financing

Unallocated 2.33 2.33 100 0.00 —

Front-End Fee 0.63 — 0 0.63 —

Total Financing 421.02 250.00 59 125.55 45.47

C. Project Beneficiaries

31. Building on Rajasthan’s strategic location at the nexus of nationally important economic and transport corridors, the operationalization of the RSHA, which is expected to mobilize more resources from the public and private sectors for improving the quality of highways, will provide benefits to all road users in Rajasthan, including businesses in all sectors of the economy, households who will have better access along key corridors, and visitors contributing to tourism. Users of the specific highway corridors to be improved under the project will benefit from reduced travel times, less wear and tear on their vehicles, and improved safety.

D. Results Chain


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E. Rationale for Bank Involvement and Role of Partners

32. The project builds upon the World Bank’s prior engagement with the road and transport sector in Rajasthan. The project will provide a vehicle for the World Bank to apply its global knowledge and expertise in road sector management and finance to help Rajasthan establish a corporate Highways Authority. The World Bank’s involvement will also promote productive interchanges of knowledge and lessons between India’s states in highway development and management. The World Bank’s engagement also helps emphasize sustainability in terms of the application of modern asset management and planning tools and innovative road contract modalities (EPC and HAM) that build maintenance into contractors’ obligations. Finally, the World Bank’s catalytic financing of selected highway improvements that use such modern contract modes and incorporate advanced road safety measures as well as ITS will give these innovative elements high visibility and promote their replication on a wider scale. No other development partners are involved in this project.

F. Lessons Learned and Reflected in the Project Design

33. The project design incorporates the following lessons learned from other similar projects in India:

(a) Implementing agencies for road projects should strengthen their capacity for technical quality assurance and contract management. This will minimize undue reliance on the supervision consultants and dispute resolution/arbitration mechanisms, which tend to be adversarial and ineffective.

(b) Implementing agencies and their heads should be vested with appropriate authority for most management decisions while reserving higher-risk issues for superior levels.

(c) Ensuring availability of at least 80 percent of the right-of-way required for construction of highways before bidding and the remainder should be fully available within six months of the commencement of works. This includes (i) land for the right-of-way fully acquired and compensated; (ii) forest clearances finalized; (iii) utility shifting implemented; and (iv) all mining, dumping, and camp sites identified and cleared for use. Where contractors are unable to promptly obtain clearances from government agencies, the PWD should step in to directly facilitate them.

(d) Project scope must be tailored to the implementation capacity of the responsible agency and the available works contractors. A properly dimensioned project—in sizes and numbers of contracts—will experience fewer delays and minimum cost overruns.

(e) Effort should be invested in client and contractor capacity building, especially in contract management and performance monitoring.

(f) Physical improvements such as black spot remediation can be very useful, but they are not enough to reduce overall crash rates. Such physical measures must be accompanied by robust programs of safety enforcement and road user information.


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III. IMPLEMENTATION ARRANGEMENTS

A. Institutional and Implementation Arrangements

34. Component 1, Rajasthan State Highways Authority. The PWD will be responsible for implementing this component through the RSHA Cell which has been established for operationalization of the RSHA. This Cell will report to the RSHA Board on a day-to-day basis and periodically report to the State Empowered Committee on Infrastructure Development, which is headed by the Chief Secretary of the state. The Cell will consist of an experienced team of individual (internal and external) experts which will work closely with the Board members and other stakeholders, in accordance with the Act, and will provide day-to-day implementation support to the Board.

35. Components 2, 3, 4, and 5. The PWD will be responsible for implementing the remaining components of the project through the PPP Division. The PPP Division has adequate skills in conventional road engineering and experience of implementing projects financed through other multilateral donors, but its capacity will need to be considerably strengthened in environmental and social safeguards, road safety, and, to some extent, procurement and FM. The PPP Division is headed by an Additional Chief Engineer and has 37 engineers of various grades in the head office. The implementation of the project at the field (district) level will be the responsibility of nine PIUs, each headed by an Executive Engineer supported by Assistant Engineers. The highway works contracts will be monitored by experts of an IE for the HAM contracts and an AE for the EPC contracts, under the guidance of the Project Director. To complement their capacity, the project will support services of a PMC to assist the PPP Division in smooth implementation of the project including the midterm review.

B. Results Monitoring and Evaluation Arrangements

36. Overall arrangements. The PWD’s PPP Division will be responsible for all monitoring and evaluation of the project. The data on travel times for Component 2 will be the responsibility of the PMCs. The user satisfaction surveys for highway improvements will be carried out by a separate consulting firm. The remaining indicator data for Components 2, 3, and 4 will be obtained from the project’s or PWD’s own administrative records. The RSHA Cell will collect and report data/ progress on Component 1.

37. DLIs. Annex 1 presents the DLIs and the annual targets for disbursement along with the verification protocols. A technical audit consultancy firm will be engaged to independently verify and certify achievement of DLIs. To incentivize the institutional reforms, 36 percent of total loan (US$90 million) has been allocated to the achievement of results under Component 1 toward operationalization of the RSHA. The DLIs are grouped into three broad categories:

(a) Road improvements. Targets will be met when a predefined number of kilometers are rehabilitated incorporating safety elements (total of 60 percent of the loan).

(b) Operationalizing of the State Highways Authority. Targets cover steps toward officially establishing the State Highways Authority; funding it adequately; earmarking SRF resources for state highways, network management system, service level agreement of the RSHA; and taking over active management of state highways by the State Highways Authority (total of 36 percent of the loan).


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(c) Road safety. DLIs pertaining to the development and implementation of the RADMS are used (total of 4 percent of the loan).

C. Sustainability

38. The project is part of a statewide flagship program, Resurgent Rajasthan, launched formally in 2015, which includes an ambitious highways and roads program. The state government’s commitment is also demonstrated by its enactment of the Rajasthan State Highways Act 2014. The project’s focus on operationalizing the RSHA will promote the sustainability of the state’s strategic road network because, as a corporate body, the RSHA will operate with greater efficiency and accountability, thereby increasing the likelihood that it will provide a better level of service to the public. Under its enabling legislation, the RSHA will have the ability to mobilize additional resources from commercial borrowings and lending, opening fiscal space for increased operation and maintenance of state highways. The asset management and network planning mechanism to be put in place under the project will promote more efficient resource allocation in the service of asset preservation. Regarding the sustainability of the road improvements financed by the project, both the EPC and HAM works contracts build in multiyear maintenance (5 and 10 years, respectively) as part of the contractors’ performance obligations.

IV. PROJECT APPRAISAL SUMMARY

A. Technical, Economic and Financial Analysis (if applicable)

39. For the World Bank support, 22 priority state highways and major district roads of about 2,100 km were initially identified in the central and western regions of the state based on traffic levels, socioeconomic importance, and the existing level of service/condition of the roads. Out of this group of roads, this project will support construction/upgrading/improvement and operation and maintenance of 11 existing state highway or major district roads with a length of 766 km. The feasibility studies of all selected highways have been completed. The state highways are mostly single or intermediate lanes, and some are existing two-lane highways with low traffic density, however, strategically important corridors. The proposed works will consist of widening to two/four-lane configuration with paved shoulders and include strengthening of existing pavement, junction improvements, drainage facilities, and provision of bus lay-byes and truck lay-byes, widening/reconstruction of structures, bypasses, construction of toll plazas, ITS interventions, road safety engineering measures, and improvement of the geometry of the alignment of the road including maintenance.

40. The traffic levels on these corridors vary between 2,500 to 6,500 passenger car units. Cognizant of this, the project highways will adopt two contract approaches, that is, EPC and HAM. Six highways will be tendered using the EPC model and the remaining five under the PPP-HAM model. The EPC mode of contracting is an improvement over the traditional item rate contracting which relies on assigning the responsibility for investigations, design, and construction to the contractor for a lump-sum price determined through competitive bidding. The contract has in-built five-year maintenance provisions and the payments are linked to specified outputs at predetermined stages of construction as compared to payment for individual items or units specified in the item rate contracts. The model has an in-built incentive for contractor’s innovation on use of materials and technologies to ensure the best value for money. In addition, the project will be able to leverage private financing through the HAM contract where the employer would advance 50 percent of the construction cost during the construction period linked to physical progress, and the balance 50 percent funds for construction will be invested by the private concessionaire through a combination of equity and debt.


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The private concessionaire would be responsible for operation and maintenance of the project highways for a minimum period of 10 years and payment will be made by the employer in the form of semiannual annuities based on performance. The traffic risk under this model will be borne by the employer and the toll collection, if any, would be the responsibility of the employer, that is, the PWD. The project highway contracts will be monitored and supervised by an IE for the HAM contracts and an AE for the EPC contracts, under the guidance of the Project Director.

41. Design standards. The civil works (materials, works, construction, and operations and maintenance) under the project will adopt the relevant standards and specifications developed by the Indian Roads Congress (IRC) and for the design, construction, and maintenance of the highways including the safety requirements. All project highways, including the project facilities to be constructed under the project, would conform to design requirements under the Manual of Specifications and Standards for Two Laning of Highways (IRC: SP: 73-2007) and Manual of Specifications and Standards for Four Laning of Highways (IRC: SP: 84-2009) and MoRTH Specifications for Road and Bridge Works. The design of the project highways will also consider the effects of extreme temperature (assessments have revealed that the current maximum average temperature will increase between 1.5°C and 2.2°C by 2035 in the project areas which could raise the current maximum average temperature of 42°C to 44.5°C), precipitation, and flooding (flash floods) and adopt relevant IRC codes, standards, and specifications. The interventions proposed for digital highways on the project highways would adopt relevant codes, standards, and specification guidelines issued by the Telecommunication Engineering Centre, New Delhi.

42. Preparatory activities related to the state highways improvement component are substantially advanced. Preliminary designs, financial and economic feasibility studies, draft Social Impact Assessments (SIAs), Environmental Impact Assessments (EIAs), and cost estimates have been prepared for all the 11 state highways to be financed under the project. Contracts for three highways, formulated under the EPC mode and with total values equivalent to US$147 million, have been awarded; the bidding process for the fourth contract package with an estimated value of at US$40 million is under way. A model concession bidding document for the PPP/ HAM packages is being formulated considering the findings of the Market Sounding Study financed from the Global Infrastructure Facility. The opportunity to reduce greenhouse gas (GHG) emissions of the project activities have been considered, including the use of improvised abandoned materials, which otherwise are abundantly available in short haulages, thereby requiring less energy to produce, transport, and incorporate in the works. The option of tree plantations wherever possible to contribute to increased carbon sink will be mainstreamed. While utility ducts will be laid along all the project highways, selected project highways of about 110 km will receive fiber optics installation that will be used to feed the various ITS measures which may include installation of video management system (VMS), CCTV camera, and toll operations, all of which will be linked to central control rooms of the police or other appropriate entities. Future possible extreme temperatures are addressed by the current design standards and codes. Project roads located in highly flood-prone areas will be studied in detail to build in appropriate resilient measures in the designs to withstand the impact.

43. Economic analysis of the highway improvements and maintenance for the 11 project highways has been conducted using the HDM 4 tool. The economic internal rates of return (EIRR) and net present values (NPV) vary with the road surface conditions and traffic volumes on each state highway. Traffic was estimated to uniformly grow at 5 percent per year for all categories of vehicles over an analysis period of 25 years.

44. The cost-benefit analysis indicates that the road upgrading, and maintenance of the selected state highways is economically viable. The NPVs discounted at 12 percent are positive for all roads; all


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the EIRRs are above the assumed opportunity cost of capital of 12 percent for base cases. The overall NPV for the full program of 11 roads is Rs 16,171 million with 18.7 percent EIRR (NPV of six roads EPC package is Rs. 12,826 million with 19.1 percent EIRR and NPV of five roads HAM package is Rs. 2,345 million with 17.1 percent EIRR) as shown in Table 2 below. The inclusion of GHG emissions into the calculation increases the overall NPV by Rs. 364 million. A few roads show slightly lower EIRRs for a pessimistic scenario when benefits are reduced, and costs are increased by 20 percent.

Table 2: Economic Analysis with and without GHG Emissions (NPV in Million Rs.)

Without GHG Emissions With GHG Emissions

NPV EIRR NPV EIRR

1. Six EPC Roads combined 13.826 19.1% 14,112 19.2%

2. Five HAM Roads combined 2,345 17.1% 2,423 17.1%

11 Roads combined 16,171 18.7% 16,536 18.8%

B. Fiduciary

(i) Financial Management

45. The PWD implements the four components through the PMU under the PPP Division and the RSHA operationalization through the RSHA Cell (being established), the Additional Chief Engineer, PPP Division having the overall responsibility for project implementation, including FM of the RSHA operationalization component. The PMU and the PIUs in the PPP Division shall have the primary responsibility for the project FM arrangements, which includes budgeting, accounting, reporting, funds flow, internal control, and audit. The role of the RSHA Cell will be mainly for managing the technical aspects of the RSHA operationalization component. The PWD is already implementing the World Bank-funded Rural Roads Projects.25 The FM arrangements of the project will be adequate to account for and report on sources and uses of project resources and to meet the World Bank’s fiduciary requirements subject to compliance with the FM framework detailed below. The project’s FM arrangements shall be based on using the country systems approach except in internal audit. The internal audit system needs strengthening; hence, a joint fiduciary audit covering procurement and FM aspects shall be carried out by a consulting firm to be hired under the project. A Financial Management Manual shall be prepared, setting out the principles of project financial management. Based on the FM arrangements proposed below, the FM risk is considered ‘Moderate’ at this stage.

46. All project-related transactions and records shall be maintained according to the existing policies, procedures, and rules of the GoR and PWD. These include The Public Works Financial and Accounts Rules (PWF&AR), Budget Manual (2012), and the General Finance and Accounts Rules (2015), including the Delegation of Financial Powers.26 Further, project-specific procedures are described in the Operations Manual being prepared for smooth implementation of the project. The existing state government systems such as an Integrated Financial Management System shall be used for all project-related transactions. Details on budgeting, funds flow, normal disbursement arrangements, accounting arrangements, financial reporting, eligible expenditures, internal controls

25 P130164 - Rajasthan Road Sector Modernization Project, PMGSY Rural Roads Project (P124639). 26 These documents are supplemented by circulars and notifications issued by the Finance Department and other concerned departments. Key internal control arrangements include (a) approval of activities by competent authorities; (b) processing of all payments by the State Treasury; (c) periodic reconciliation of accounts with the Auditor General (A&E); (d) approval of deliverables by appropriate authorities, based on which payments will be approved by the designated officials; and (e) recording of assets procured/constructed under the project and yearly verification.


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and audits, and external audits are in the Operations Manual of the project. The annual external audit reports are to be submitted to the World Bank within 6 months of the end of each financial year.

47. In the PWD’s PPP Division Head Office, the Financial Adviser shall be responsible for the project’s FM arrangements. The FA shall be supported by a dedicated accounts officer, assistant accounts officer, and accountant for the project purposes. The FM staff at the PWD headquarters shall ensure that all project-related FM requirements are complied with, which will include preparation of interim unaudited financial reports, follow-up and submission of audit reports, availability of sufficient funds for the project, and so on. At the PIU (district) level, the accountant supported by other accounting staff will be used for the purposes of the project. Against sanctioned positions of 72 FM staff, the PWD’s current FM staffing is only 16. Given the staffing constraints at the PWD, an FM consultant shall be hired as part of the PMC to support the FM functions. The FM staff working on the project will be suitably trained on World Bank FM, contract management, maintenance of contract tracking data, disbursement procedures, and on other FM areas that will help them in fulfilling their responsibilities.

48. Disbursements against DLIs will be made based on satisfactory achievement of DLIs and verified as per the agreed verification protocol, supported by eligible expenditure incurred under the project. The basic principles governing DLI-based disbursements are presented in the Operations Manual of the project. The list of expenditure ineligible for World Bank financing are provided in the Loan Agreement.

49. Retroactive financing. GoR has requested authorization to use the proceeds of the Loan to finance eligible expenditures of up to US$ 50 million incurred since April 15, 2018.

(ii) Procurement

50. Procurement for the project will be carried out in accordance with the World Bank’s Procurement Regulations for Borrowers for Goods, Works, Non-Consulting and Consulting Services, dated July 1, 2016 (revised in November 2017 and August 2018), and applicable to Investment Project Financing (IPF) hereinafter referred to as “Procurement Regulations”. The project will be subject to the World Bank’s Anticorruption Guidelines, dated October 15, 2006, revised in January 2011, and as of July 1, 2016.

51. Summary of the Project Procurement Strategy for Development (PPSD). Extensive market analysis has been carried out for different packages of procurement and based on the findings, decision on packages (EPC and PPP) are finalized for civil works to ensure adequate participation of bidders. Consultancy contracts are also framed based on market research, and packaging of the same in terms of scope of services and period are decided. Based on risk and market analysis, the Procurement Plan for the first 18 months of project implementation has been prepared to set out the selection methods to be followed by the borrower for procurement of goods, works, and consulting services financed by the World Bank.

52. Details of the project’s procurement arrangements are presented in the Operations Manual of the project and the Procurement Plan of the project.

53. The PWD’s PPP Division will be responsible for procurement of Components 2, 3, 4, and 5 of the project. This division, headed by an Additional Chief Engineer, has 37 engineers for planning, procurement, design review, and overall project management. The PPP Division’s Procurement Cell comprises four Superintending Engineers and nine Executive Engineers, supported by an Assistant


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Engineer. Most of the Procurement Cell members have previous experience in the procurement of highway contracts from the agencies such as the National Highways Authority of India (NHAI) and RSRDC. However, the staff will need to gain experience and skills in managing the newer forms of contracts to be used in the proposed project (EPC and HAM). The PWD will send the staff working on procurement to attend the World Bank’s sponsored training programs organized periodically.

54. From the procurement perspective, the separate RSHA Cell for Component 1 will be solely responsible for a limited number of small-value consultancy and goods contracts. A dedicated procurement specialist will be attached to this Cell.

55. Table 3 describes major procurement-related risks and the mitigation plan. Based on the risk factors and mitigation measures, the procurement risk rating for the project is determined as ‘Moderate.’ The rating on procurement will be reviewed and updated periodically by the World Bank.

Table 2. Major Procurement-Related Risks and Mitigation Plan

Risk Factor Mitigation Measure

Limited capacity and inefficiencies resulting in delays in procurement and contract management processes

• Use of skilled procurement staff for handling of procurement process

• Monitoring through Procurement Plan and quarterly reports

• Use of e-procurement and contract management tools

• Participation in training and workshops

Noncompliance with agreed procurement arrangements

• Training and hand-holding provided by the World Bank

• Prior and post reviews by the World Bank

• Internal and external audits

External interference in the procurement process

• Disclosure of procurement-related information

• Appropriate handling of complaints

Table 3. Prior Review Arrangements

Type of Procurement Prior Review Threshold

Works (including turnkey, supply and installation, and PPP)

All contracts more than US$15 million equivalent

Goods, IT, and non-consulting services All contracts more than US$4 million equivalent

Consultant US$2 million equivalent for firms and greater than US$0.4 million equivalent for individuals

C. Safeguards

(i) Environmental Safeguards

56. Key environmental issues/concerns. Overall, the project is expected to promote socio-economic benefits for the state/region and extend opportunities for transformation to the wider rural population through improved and safer highway connectivity. However, the proposed project interventions are likely to create some adverse environmental impacts, particularly during the construction stage. One key area of concern pertains to stress on already limited water availability in the project areas for road construction. Other potential adverse impacts include (a) felling of a limited number of roadside trees; (b) effects on water quality from camp/plant site discharges or silt flow during execution of works; (c) impacts on sensitive receptors (such as education and health facilities); (d) construction phase impacts, including those related to camp/plant site operation, occupational health and safety issues, dust generation and pollution from plants/machinery/vehicles; (e) disposal of debris/other construction wastes; (f) management of materials (such as aggregates, sand, and


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earth); and (g) safety during the construction phase and due to increased traffic speeds during operation for both road users and roadside residents. While the adverse impacts are likely to be fairly limited in the local context, the exact nature and magnitude of impacts will vary in accordance with the location and the type of proposed engineering intervention. In view of the project’s potential impacts on the environment, the World Bank's OP 4.01 on Environmental Assessment and OP 4.11 on Physical Cultural Resources have been triggered, and the project is designated as Category B.

57. Diversion of some forest land may be required for widening/spot improvement in some cases. While no civil works will be financed on roads passing through designated protected areas, the larger institutional systems would need to address the issues of biodiversity management. Accordingly, the Operational Policies on Natural Habitats (OP/BP 4.04) and Forests (OP/BP 4.36) have also been triggered for the project.

58. Environment management. An Environment Management Framework (EMF) has been prepared for the project. The other key environment management instruments include (a) a screening exercise to identify key issues in the selection and design of subprojects, including those related to forests/biodiversity/wildlife, and (b) preparation of EIAs along with corridor-specific Environment Management Plans (EMPs) for works proposed under the project. Corridor-specific Environmental Assessments have been undertaken in line with World Bank policies and applicable environmental laws and regulations of the GoI and GoR. Preparation of the EIA and EMP for priority state highways has been completed and the documents have been disclosed in-country and on the World Bank’s portal. The project design and implementation planning have been informed by the Environmental Assessment process and outputs, which have been integrated in bidding/contract documents for works and terms of reference for AE. Mitigation measures for the project include provision of compensatory plantation in line with the regulatory requirements. Further, an attempt has been made to estimate the magnitude of the climate-related impacts of the proposed improvement to roads considering currently known trends for the future. Based on this, the required adaptation and mitigation options have been evaluated and incorporated in design. For the remaining sub-projects, the EA/EMP documents will be prepared/finalized and disclosed in line with World Bank’s policy on Disclosure prior to initiation of the Bidding process.

59. Implementation arrangements. The implementation of the environmental aspects is the responsibility of several stakeholders, with the PWD being the primary entity. A Nodal Environment Officer is already in place as part of the state-level team and is currently overseeing preparation of Environmental Assessments/EMPs and integration of plans within the civil work contracts. This officer will be responsible for regular reporting on implementation of EMPs or environment, health, and safety aspects. In addition, involvement of local communities is expected in the implementation of plans for the locally important cultural resources identified for enhancement. The contractors’ teams will also include environmental specialists and safety officers who will ensure that the environment, health, and safety-related works contract stipulations are implemented during execution of works.

60. Disclosure. The environment management tools, namely the EMF and EIAs/EMPs for priority roads, have been disclosed on the World Bank’s portal and on the project authority’s website.

(ii) Social Safeguards

61. Legal framework, process, and instruments. Overall, the project will have positive social impacts in terms of improved access, reduction in travel time, and road safety. The widening and upgrading of about 766 km of roads will require approximately 193 ha of land across 11 project corridors. Approximately, 934 households are likely to be affected. Out of them, 920 are titleholders


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and there are more than 14 non-titleholders. In addition, common property resources will be affected. Accordingly, the World Bank’s Operational Policy on Involuntary Resettlement (OP 4.12) is triggered. OP 4.10 on Indigenous Peoples is not triggered as the project does not pass through any scheduled areas.

62. To comply with the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 and OP 4.12, a Resettlement Policy Framework has been prepared. Accordingly, an SIA and a Social Management Plan as well as an RAP have been prepared for each of the three priority corridors. In accordance with the state rules for linear projects, land will be acquired through a negotiated settlement. All payments and resettlement will be completed before handing over land to the contractors.

63. Consultation and citizen feedback. Detailed consultations were carried out in 27 villages across the three priority corridors with project-affected persons and other stakeholders. Concerns regarding compensation, impact of the proposed road, possible alignments, alternative routes, condition of approach roads, bus stops, signages, traffic, and employment during construction were discussed. A Stakeholder Consultation and Citizens Engagement Plan has been prepared, which outlines the methods and tools to be used to ensure that consultations and community feedback are continued throughout project implementation.

64. Labor influx. Assessment of labor requirements on the priority corridors indicates that the contractor would engage semi-skilled migrant labor from other states including Madhya Pradesh, Uttar Pradesh, and Bihar and local labor. The labor camps for the priority corridors are approximately 10–20 km away from settlements. A labor influx screening matrix has been prepared to develop a site-specific Labor Influx Management Plan including a Code of Conduct for workers and compliance with all applicable labor laws.

65. Institutional arrangements. The PWD’s PPP Division will mobilize a full-time social safeguards specialist (consultant) in addition to a nodal officer for social safeguards of the rank of Executive Engineer. A legal officer (consultant) and a labor welfare officer of the rank of Executive Engineer have been appointed to monitor compliance with labor regulations. A nongovernmental organization will be contracted to implement the SIAs and SMPs as well as RAPs. The AE will be responsible to supervise the contractors’ compliance with the SIAs and SMPs as well as RAPs, which include compliance with the contractor’s Labor Influx Management Plan, the applicable labor laws, and mitigation plans for adverse impacts due to labor influx on host communities. The institutional arrangements to facilitate land acquisition in accordance with the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 has been mobilized to carry out the SIA and purchase and/or acquire land.

66. Monitoring. To enhance accountability and transparency and to efficiently track progress of SIAs as well as SMPs or RAPs, a Management Information System (MIS) and mobile application will be developed. The e-RAP system along with a workflow process for tracking resettlement on a real-time basis is a step toward taking timely decisions to address any delays. This system will also enable generation of progress reports.

67. GRMs. To supplement the existing statewide Samprak system, a dedicated and robust GRM with a project-specific toll-free number will be established. The system will ensure accessibility to all, especially women and the vulnerable and help track grievances and generate reports.


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68. Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project-level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org.

V. KEY RISKS

75. The following risk factors are rated Substantial: (a) Political and governance. The code of conduct before the 2018 state elections, the transition required for the elected government to familiarize itself with the project, and the possibility of resetting priorities may slow down project activities. Such risks would be mitigated by the World Bank’s close engagement during any possible governmental transition. In terms of governance, there is a risk that poor coordination between institutions could cause delays, specifically in Components 1 and 4. This risk may be mitigated by ensuring that existing coordination mechanisms at the higher level in the government are effectively used. On the positive side, Rajasthan has demonstrated leadership among India’s states in applying e-procurement and other popular governance reforms to promote transparency and efficiency and in deploying citizen engagement mechanisms.

(b) Sector policies and strategies. The state does not have a comprehensive transport/road sector policy. In the absence of such a policy with strong institutional focus, the state, for instance, may find it difficult to sustain its commitment to operationalize the RSHA. The World Bank supported the formulation of a road sector policy under the RRSMP, and the draft is yet to be approved by the government. The risk of sustaining the commitment to the RSHA may be mitigated by a continuing a program of awareness raising for state officials, sponsored by the project, about the benefits of a corporate body to manage and improve the state highway network including exposure visits to good practices nationally and internationally. This project builds on the ongoing institutional modernization efforts under the RRSMP including the road sector policy, improved business processes and RAMS.

(c) Institutional capacity for implementation and sustainability. Institutional capacity of the PWD is adequate in terms of conventional engineering skills, but deficiencies of skills and experience levels exist in (i) contract management, especially the new forms of contracts to be used in the project (EPC and HAM), and (ii) procurement according to World Bank rules. In all these areas, the project will provide additional contract staff or consultants, training, and exposure to experiences of other states and countries. Another institutional risk is the turnover of managers and staff of implementing agencies. This is difficult to mitigate; the PWD will undertake a succession plan to always avail additional junior-level staff seconded to senior staff positions to minimize the impact of turnover.

(d) Environmental and social. The risk rating from an environment management and safeguards perspective is Moderate. The environmental risks, based on assessment carried out during project preparation missions, are not likely to substantially undermine the sustainability of the project objectives or lead to implementation delays. There is a moderate likelihood that exogenous

http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service

http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service

http://www.inspectionpanel.org/


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environmental risks such as climate-related uncertainties could affect the assets being created under the project. However, the overall social safeguard risk is rated Substantial based mainly on inadequate institutional capacity to implement The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, (RFCTLAR&R ACT), comply with applicable labor laws and apply the World Bank’s OP 4.12. It is the first time for PWD to implement RFCTLAR&R ACT. The project has started to conduct training sessions on the Bank’s Social Safeguard policies and the project specific instruments such as the SIMP and RPF and will continue to do so in a more structured manner. To implement the RFCTLAR&R ACT, the E-RAP tool being developed is designed to provide detailed guidance and support for navigating and monitoring procedural requirements for acquisition and resettlement and rehabilitation, while ensuring transparency and accountability.

76. Based on the above, the overall risk rating of the project is deemed Substantial.


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.

VI. RESULTS FRAMEWORK AND MONITORING

Results Framework

COUNTRY: India Rajasthan State Highways Development Program II

Project Development Objectives(s)

The PDO is to build capacity for better management of state highways and to improve traffic flows on selected state highways in the state of Rajasthan.

Project Development Objective Indicators

RESULT_FRAME_T BL_ PD O

Indicator Name DLI Baseline Intermediate Targets End Target

1

Build capacity for better management of state highways

State Highways actively managed by RSHA (Kilometers)

DLI 16 0.00 5,000.00 10,000.00

Share of State Road Fund resources earmarked for State Highways (Percentage)

DLI 11 0.00 50.00

Improve traffic flows on selected state highways in Rajasthan

Average travel times on project highways for cars (Text)

To be measured To be measured

PDO Table SPACE

Intermediate Results Indicators by Components


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RESULT_FRAME_T BL_ IO


1 2 3 4 5

Operationalization of Rajasthan State Highways Authority

RSHA organizational structure and staffing plan approved by RSHA Board (Yes/No)

DLI 7 No Yes

RSHA rules and regulations notified (Yes/No) DLI 6 No Yes

RSHA Chairperson and Board members appointed (Yes/No)

DLI 3 No Yes

RSHA management (minimum 60%) and technical staff (minimum 60%) appointed (Percentage)

DLI 8 0.00 60.00 100.00

RSHA investment plan approved by RSHA Board (Yes/No)

No Yes

RSHA adopts RAMS (Yes/No) No Yes

RSHA training plan developed and implemented (Percentage)

0.00 100.00

Highway Improvements

Roads rehablitated (CRI, Kilometers)

0.00 30.00 100.00 197.00 244.00 195.00 766.00

Number of kilometres (km) of roads executed under EPC contracts (Kilometers)

DLI 1 0.00 30.00 100.00 147.00 100.00 95.00 472.00


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1 2 3 4 5

Number of kilometres (km) executed through PPP/HAM contracts (Kilometers)

DLI 2 0.00 50.00 144.00 100.00 294.00

Digital technology solutions implemented on project financed roads (Kilometers)

0.00 110.00

Grievances filed through project GRM are properly tracked and receive satisfactory responses (Percentage)

0.00 60.00 65.00 75.00 90.00 90.00 90.00

Institutional Strengthening

Electronic project management system (e-PMS) developed and operational (Number)

0.00 4.00

Electronic system for monitoring Resettlement Plans (e-RAP) developed and operational (Text)

Manual and paper base data collection, no online monitoring system

Develop the RAP management processes and codify them, develop online data collection and management modules, develop data collection mobile app

Enter the RAP data for all the eleven project corridors and roll out the MIS to all project district offices and HQ

Enter the RAP data for all the eleven project corridors and roll out the MIS to all project district offices and HQ

Improvement in perception of safety among women along project corridors (Percentage)

0.00 40.00

improvement in the number of employees 0.00 50.00


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1 2 3 4 5

aware of and comfortable with approaching the Internal Compliants Committee (Percentage)

Road Safety

RADMS established and operational (Text)

DLI 18

Very basic data is being collected in a subjective manner

Delivery of the system

Speed Management Program implemented (Kilometers)

0.00 100.00

Road safety strategy developed and adopted (Yes/No)

No Yes

IO Table SPACE

UL Table SPACE

Monitoring & Evaluation Plan: PDO Indicators

Indicator Name Definition/Description Frequency Datasource Methodology for Data Collection

Responsibility for Data Collection

State Highways actively managed by RSHA

When RSHA has signed contracts for upgrading/ rehabilitating/ construction/ maintenance of 10000 km of highways by taking over the management, as per the

Annually starting in year 4

Government Order/ Notification/ Contract Agreements/ Transition

Extraction of data from RSHA's administrative records and progress reports.

RSHA Cell


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Transition Strategy approved by the GoR, of existing contracts or signing new contracts from PWD and other agencies. Note: The 10,000 km to be assigned/signed by RSHA are not part of the Project scope. The primary purpose of the indicator is to document the operationalization of RSHA. The number of kilometers transferred to RSHA (either assigned or signed by RSHA) for development or O&M are just a proxy of RSHA institutionalization (the actual outcome claimed by the Project).

Strategy

Share of State Road Fund resources earmarked for State Highways

When the GoR allocates at least 50% of the annual resources of the State Road Fund for the year one to the development and maintenance of the state highways.

Year 1

SRF’s Board Meeting minutes, RSHA’s annual financial report

The TAC reviews SRF’s board meeting minutes to verify that 50% of the SRF’s revenues have been allocated to the state highways development and maintenance, with no conditions attached.

RSHA Cell


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Average travel times on project highways for cars

Before commencement of works and after completion of works

Project Progress Report

Speed surveys to be taken on three days for each segment (one non-market weekday, one non-market weekend day, and one market day), twice each day during peak and non-peak hours.

PWD PPP Division

ME PDO Table SPACE

Monitoring & Evaluation Plan: Intermediate Results Indicators

Indicator Name Definition/Description Frequency Datasource Methodology for Data Collection

Responsibility for Data Collection

RSHA organizational structure and staffing plan approved by RSHA Board

This will be met when the RSHA organizational structure and staffing plan is approved by the RSHA Board. The organization structure and staffing plan should at least consist of organogram showing linkages between functional units, roles and responsibilities, skill mapping, staffing estimates, staff acquisition strategy, training plan, succession

Once

RSHA Board Minutes of the Meeting

The TAC reviews the minutes of the Board meeting of RSHA and verifies that the organizational structure and staffing plan has been approved by the Board. The TAC will also review whether the organizational structure and staffing plan have been based on the business model of RSHA and benchmarking

RSHA Cell


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strategy, benefit packages based on the business model of RSHA.

relevant good practices elsewhere.

RSHA rules and regulations notified

This will be met when the approved rules and regulations as per the provisions of the Sections 102 and 103, 106 and other related provisions of the Rajasthan State Highway Act, 2015 are notified for adoption.

Once

Government of Rajasthan' Gazette Notification

The TAC reviews the gazette notification issued by GoR to adopt the rules and regulation approved by Rajasthan State Legislature.

RSHA Cell

RSHA Chairperson and Board members appointed

This will be met when the Chairperson of the RSHA and all the four full-time and three part-time members are appointed.

By the end of Year 1

Government Notification/ Office Order for Appointment

The TAC reviews the government notification/ office order issued to the chairperson and members of the Authority.

RSHA Cell

RSHA management (minimum 60%) and technical staff (minimum 60%) appointed

This will be met when 100% of RSHA management staff, other than chairperson and members and 100% of technical staff are appointed.

60% of the management and technical staff, respectively, by September of year 2, and 100% of both by

RSHA administrative records

Extraction of data from RSHA administrative records

RSHA Cell


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end of year 2.

RSHA investment plan approved by RSHA Board

This will be met when the investment plan is approved by the RSHA Board. The Investment Plan should at least consist of prioritized road network for maintenance, rehabilitation, up gradation, and budget estimates and resource planning.

Once

Board Minutes of the Meeting, Investment plan Report

Extraction of data from RSHA administrative records and GoR records

RSHA Cell

RSHA adopts RAMS

This will be met when RAMS being developed under the bank financed RRSMP is adopted by RSHA to manage the state highways network under its jurisdiction.

Year 3

RAMS consultant’s technical reports, sample RAMS reports, online access to RAMS. RSHA’s maintenance investment planning report.

TAC reviews RAMS consultant's technical reports, views the different modules of the system online, produce sample outputs and reports representing the various modules of the system and verifies that the state highways data are fully automated.

RSHA Cell

RSHA training plan developed and implemented

End of the Project

Project Progress Report and

Extraction of data from progress reports and reports of training

RSHA Cell


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reports of training providers

providers

Roads rehablitated Annually

Project Progress Reports, reports of authority engineers and independent engineers

Extraction of data from reports of authority engineers and independent engineers

PWD PPP Division

Number of kilometres (km) of roads executed under EPC contracts

This will be met when a predefined number of km of state highways under EPC contracts are upgraded as per the designs approved by the Authority Engineer (AE). The upgraded works should also include compliance with the relevant social and environmental safeguards instruments adopted by the project and climate resilient measures.

Annually

Project Progress Report, progress reports of authority engineers and independent engineers

Extraction of information from Project Progress Reports and progress reports of authority engineers and independent engineers

PWD PPP Division

Number of kilometres (km) executed through PPP/HAM contracts

This will be met when a predefined number of km of state highways under HAM contracts are upgraded as

Annually

Project Progress Reports and periodic repo

Extraction of information from Project Progress Reports and

PWD PPP Division


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per the designs approved by the Independent Engineer (IE). The upgraded works should also include compliance with the relevant social and environmental safeguards instruments adopted by the project and climate resilient measures.

rts of authority engineers and independent engineers

periodic reports of authority engineers and independent engineers

Digital technology solutions implemented on project financed roads

This is the laying of fiber cable along a 110 km of state highways and installing intelligent transport solutions such as variable message signs, speed cameras, toll plaza systems, etc. as found appropriate

Annually

Project Progress Reports and periodic reports of authority engineers and independent engineers

Extraction of information from Project Progress Reports and periodic reports of authority engineers and independent engineers

PWD PPP Division

Grievances filed through project GRM are properly tracked and receive satisfactory responses

The indicators measures the percentage of satisfactorily dealt with volume of grievances lodged within the Grievance Redress Management system strengthened under the project

Annual

Project Progress Reports

Extraction of data from GRM system

PWD PPP Division

Electronic project management system (e-PMS) developed and operational

The development and adoption of an online

Quarterly

Project Progress

PWD PPP Division


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construction management system to be used by the parties to the construction contracts plus supervising engineers, on at least four highways

Reports

Electronic system for monitoring Resettlement Plans (e-RAP) developed and operational

it is the development of a online management information system to monitor the implementation of the resettlement action plan. The data collection will be done through a mobile application software.

Quarterly


Extraction of data from project progress reports and consultant reports

PWD PPP Division

Improvement in perception of safety among women along project corridors

This indicators tracks the change in perception of females in their safety in using road side facilities such as bus stops and access roads to project highways

End of the Project

Project Progress Report and User Satisfaction Survey Report

Opinion surveys of female road users

PWD-PPP Division

improvement in the number of employees aware of and comfortable with approaching the Internal Compliants Committee

This indicator tracks the level of comfort female workers have in using the complaint mechanism to address issues of work place safety and security

End of the Project

Project Progress Report and User Satisfaction Survey Report

PWD PPP Division


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RADMS established and operational

This will be met when the RADMS is fully developed as a standalone or as COTS, customized to Rajasthan’s road safety management needs. The DLI is not scalable. The RADMS should at least consist of accident data collection modules, including community data collection module, analytical modules, reporting modules, mobile apps, and GIS platform.

Annual

Project Progress Report, RADMS Consultant’s report, RADMS system

The TAC will review the consultant’s technical report and progress report, witnessing live demonstration of RADMS on test data.

PWD PPP Division

Speed Management Program implemented

This indicator tracks the stretch of highways wherein speed management system implemented by way of posting scientifically studied speed limits, implementing speed calming engineering measures, and installing speed monitoring cameras to deter speed violators and use the data as an input to enforcement measures

Quarterly


Extraction of data from project progress reports and consultant's reports

PWD PPP Division

Road safety strategy developed and adopted

This indicator is to track progress made in the preparation of Rajasthan's road safety strategy and multi-year road safety

Once


Extraction of data from project progress reports and GoR administrative records

PWD PPP Division


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investment plan

ME IO Table SPACE

Disbursement Linked Indicators Matrix

DLI_T BL_MATRIX

DLI 1 Four hundred seventy-two (472) kilometers (km) of roads executed through EPC contracts

Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount

Output Yes Kilometers 90,000,000.00 21.38

Period Value Allocated Amount (USD) Formula

Baseline 0.00

Year 1 30.00 10,000,000.00

Year 2 130.00 20,000,000.00

Year 3 277.00 20,000,000.00

Year 4 377.00 20,000,000.00

Year 5 472.00 20,000,000.00

DLI_T BL_MATRIX

DLI 2 Two Hundred ninety-three (293) kilometers (km) of roads executed through PPP/HAM contracts


Output Yes Kilometers 60,000,000.00 14.25



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Baseline 0.00

Year 1 0.00

Year 2 0.00

Year 3 50.00 10,000,000.00

Year 4 193.00 25,000,000.00

Year 5 293.00 25,000,000.00 cumulative

DLI_T BL_MATRIX

DLI 3 The RSHA Chairperson and Board Members have been appointed


Intermediate Outcome No Yes/No 7,000,000.00 1.66


Baseline No

Year 1 Yes 7,000,000.00

Year 2 0.00

Year 3 0.00

Year 4 0.00

Year 5 0.00


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DLI_T BL_MATRIX

DLI 4 The Cabinet has approved the Rules and Regulations for the RSHA




Baseline No

Year 1 Yes 6,000,000.00

Year 2 0.00

Year 3 0.00

Year 4 0.00

Year 5 0.00

DLI_T BL_MATRIX

DLI 5 Rajasthan has allocated budget for the initial operation of RSHA




Baseline No

Year 1 Yes 5,000,000.00

Year 2 0.00


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Year 3 0.00

Year 4 0.00

Year 5 0.00

DLI_T BL_MATRIX

DLI 6 Rajasthan has notified the Rules and Regulations for RSHA




Baseline No

Year 1 Yes 5,000,000.00

Year 2 0.00

Year 3 0.00

Year 4 0.00

Year 5 0.00

DLI_T BL_MATRIX

DLI 7 RSHA Board has approved RSHA organizational structure and staffing plan





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Baseline No

Year 1 0.00

Year 2 Yes 5,000,000.00

Year 3 0.00

Year 4 0.00

Year 5 0.00

DLI_T BL_MATRIX

DLI 8 RSHA has appointed: (i) its management cadre (other than the RSHA Chairperson and RSHA Board members); and (ii) technical staff


Intermediate Outcome Yes Percentage 8,000,000.00 1.90


Baseline 0.00

Year 1 0.00

Year 2 100.00 8,000,000.00

Year 3 0.00

Year 4 0.00

Year 5 0.00


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DLI_T BL_MATRIX

DLI 9 The RSHA Board has approved the RSHA Business Model


Output No Yes/No 7,000,000.00 1.66


Baseline No

Year 1 Yes 7,000,000.00

Year 2 0.00

Year 3 0.00

Year 4 0.00

Year 5 0.00

DLI_T BL_MATRIX

DLI 10 The Cabinet has approved Financial Management Rules for the RSHA




Baseline No

Year 1 Yes 5,000,000.00

Year 2 0.00


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Year 3 0.00

Year 4 0.00

Year 5 0.00

DLI_T BL_MATRIX

DLI 11 Rajasthan has earmarked at least 50% of annual resources of the State Road Development Fund for development and maintenance of State Highways




Baseline No

Year 1 Yes 5,000,000.00

Year 2 0.00

Year 3 0.00

Year 4 0.00

Year 5 0.00

DLI_T BL_MATRIX

DLI 12 RSHA has adopted the RAMS





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Baseline No

Year 1 0.00

Year 2 0.00

Year 3 Yes 5,000,000.00

Year 4 0.00

Year 5 0.00

DLI_T BL_MATRIX

DLI 13 RSHA Board has approved the Investment Plan




Baseline No

Year 1 0.00

Year 2 0.00

Year 3 Yes 5,000,000.00

Year 4 0.00

Year 5 0.00


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DLI_T BL_MATRIX

DLI 14 Rajasthan has approved the PWD-RSHA Transition Strategy and Plan prepared by the RSHA Cell




Baseline No

Year 1 Yes 5,000,000.00

Year 2 0.00

Year 3 0.00

Year 4 0.00

Year 5 0.00

DLI_T BL_MATRIX

DLI 15 RSHA and PWD have implemented the PWD-RSHA Transition Strategy and Plan




Baseline No

Year 1 0.00

Year 2 Yes 7,000,000.00


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Year 3 0.00

Year 4 0.00

Year 5 0.00

DLI_T BL_MATRIX

DLI 16 RSHA has signed contracts for upgrading/ rehabilitating and/or maintaining 10,000 km of State Highways


Outcome Yes Kilometers 10,000,000.00 2.38


Baseline 0.00

Year 1 0.00

Year 2 0.00

Year 3 0.00

Year 4 0.00

Year 5 10,000.00 10,000,000.00

DLI_T BL_MATRIX

DLI 17 RSHA has drafted and the RSHA Board has approved the first Service Level Agreements between (i) RSHA and Rajasthan’s government; and (ii) RSHA and its cadre of executive managers





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Baseline No

Year 1 0.00

Year 2 Yes 5,000,000.00

Year 3 0.00

Year 4 0.00

Year 5 0.00

DLI_T BL_MATRIX

DLI 18 PWD has fully developed the RADMS




Baseline No

Year 1 0.00

Year 2 Yes 5,000,000.00

Year 3 0.00

Year 4 0.00

Year 5 0.00


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DLI_T BL_MATRIX

DLI 19 The Rajasthan Police has rolled out the RADMS to all thirty-four (34) Police Districts Offices


Intermediate Outcome Yes Yes/No 5,000,000.00 1.19


Baseline No

Year 1 0.00

Year 2 0.00

Year 3 0.00

Year 4 0.00

Year 5 Yes 5,000,000.00

Verification Protocol Table: Disbursement Linked Indicators

DLI 1 Four hundred seventy-two (472) kilometers (km) of roads executed through EPC contracts

Description

Definition: This DLI will be met when a predefined number of km of state highways under EPC contracts are upgraded as per

the designs approved by the Authority Engineer (AE). The upgraded works should also include compliance with the relevant

social and environmental safeguards instruments adopted by the project and climate resilient measures. This DLI is scalable

to provide flexibility in disbursement. Scalability: USD 10 Million upon execution of 30 km, plus USD 4 Million for every

additional 20 km thereafter, up to a maximum amount of USD103 Million.


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Data source/ Agency Project Progress Reports and data prepared by the Authority Engineer (AE) for PPP Division, reports by the Technical Audit

Consultant (TAC)

Verification Entity TAC

Procedure

A comprehensive review will be carried out by the TAC on a randomly selected 10% road sections. The review covers

engineering designs prepared by the contractor and approved by the AE. The review also includes quality assurance,

contract management including settlement of contractor’s claims, compliance with and implementation of ESIMP,

implementation of traffic safety measures, compliance with labor laws especially on child labor and management of migrant

labor. Besides the random selection of road stretches, the TAC will also include review of sensitive stretches on

environment, social and traffic safety. The TAC is expected to start work in June and December of every year and to certify

that the DLIs have been fully or partially achieved or exceeded and on call basis also if ever needed in case of exceptional

achievement.

DLI 2 Two Hundred ninety-three (293) kilometers (km) of roads executed through PPP/HAM contracts

Description

Definition: This DLI will be met when a predefined number of km of state highways under HAM contracts are upgraded as

per the designs approved by the Independent Engineer (IE). The upgraded works should also include compliance with the

relevant social and environmental safeguards instruments adopted by the project and climate resilient measures. This DLI is

scalable to provide flexibility in disbursement. Scalability: USD 10 Million upon execution of 30 km, plus USD 4 Million for

every additional 20 km thereafter, up to a maximum amount of USD69 Million.

Data source/ Agency Project Progress Reports and data prepared by the Independent Engineer (IE) for PPP Division, reports by the Technical

Audit Consultant (TAC)


Procedure

A comprehensive review will be carried out by the TAC on a randomly selected 10% road sections. The review covers

engineering designs prepared by the contractor and approved by the IE. The review also includes quality assurance, contract

management including settlement of contractor’s claims, compliance with and implementation of ESIMP, implementation

of traffic safety measures, compliance with labor laws especially on child labor and management of migrant labor. Besides

the random selection of road stretches, the TAC will also include review of sensitive stretches on environment, social and

traffic safety. The TAC is expected to start work in June and December of every year and to certify that the DLIs have been


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fully or partially achieved or exceeded and on call basis also if ever needed in case of exceptional achievement.

DLI 3 The RSHA Chairperson and Board Members have been appointed

Description

This DLI will be met when the Chairperson of the RSHA and all the four full-time and three part-time members are

appointed. In case the DLI is met later than the target date, the disbursement linked to the indicator will still be made when

the DLI is met. The DLI is not scalable.

Data source/ Agency Government Notification/ Office Order of appointment


Procedure The TAC reviews the government notification/ office order issued to the chairperson and members of the RSHA.

DLI 4 The Cabinet has approved the Rules and Regulations for the RSHA

Description

This DLI will be met when the rules and regulations on all items listed under the Sections 102 and 103 and other related

provisions of the Rajasthan State Highway Act, 2015 governing the duties, responsibilities and authorities of RSHA have

been prepared for efficient discharge of its functions and are approved by the State’s Cabinet of Ministers. In case the DLI is

met later than the target date, the disbursement linked to the indicator will still be made when the DLI is met. The DLI is not

scalable.

Data source/ Agency Cabinet minutes of session, copy of the approved rules and regulations


Procedure The TAC reviews the Cabinet’s minutes of session and confirms the Cabinet’s approval of the rules and regulations.

DLI 5 Rajasthan has allocated budget for the initial operation of RSHA

Description This DLI will be met when RSHA’s operating budget is approved and allocated by the GoR. The DLI is not scalable.

Data source/ Agency Published budget


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Procedure

The TAC reviews the budget published by the Finance Department of GoR and verifies that RSHA’s operating budget for

Year 1 is allocated under a separate budget head or as a budget line in the PWD’s budget.

DLI 6 Rajasthan has notified the Rules and Regulations for RSHA

Description

This DLI will be met when the approved rules and regulations (as approved by the Cabinet under DLI 4) as per the provisions

of the Sections 102 and 103, 106 and other related provisions of the Rajasthan State Highway Act, 2015 governing the

duties, responsibilities and authorities of RSHA for efficient discharge of its functions are notified for adoption.

Data source/ Agency GoR’s gazette notification


Procedure

The TAC reviews the gazette notification issued by GoR to adopt the rules and regulation approved by Rajasthan State

Legislature.

DLI 7 RSHA Board has approved RSHA organizational structure and staffing plan

Description

This DLI will be met when the RSHA organizational structure and staffing plan is approved by the RSHA Board. The

organization structure and staffing plan should at least consist of organogram showing linkages between functional units,

roles and responsibilities, skill mapping, staffing estimates, staff acquisition strategy, training plan, succession strategy,

benefit packages based on the business model of RSHA. In case the DLI is met later than the target date, the disbursement

linked to the indicator will still be made when the DLI is met. The DLI is not scalable.

Data source/ Agency RSHA Board Minutes of the Meeting and Report of the Organization Structure and Staffing Plan


Procedure

The TAC reviews the minutes of the Board meeting of RSHA and verifies that the organizational structure and staffing plan

has been approved by the Board. The TAC will also review whether the organizational structure and staffing plan have been

based on the business model of RSHA and benchmarking relevant good practices elsewhere.


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DLI 8 RSHA has appointed: (i) its management cadre (other than the RSHA Chairperson and RSHA Board members); and (ii) technical staff

Description

Definition: This DLI will be met when 100% of RSHA management staff, other than defined in DLI 3, and 100% of technical

staff are appointed. The DLI is scalable. Scalability: (i) USD 2 million upon the appointment of a at least 60% of managerial

cadre; plus USD 2 million upon appointment of 100% of managerial cadre; and (ii) USD 2 million upon the appointment of a

at least 60% of the technical staff; plus USD 2 million upon appointment of 100% of the technical staff.

Data source/ Agency Government Orders/ notification/ appointment letters


Procedure The TAC reviews government document demonstrating that the staff is hired/ appointed as per the staffing plan of RSHA.

DLI 9 The RSHA Board has approved the RSHA Business Model

Description

This DLI will be met when RSHA’s business model is approved by the RSHA Board. The business model defines the

Authority’s corporate business model, KPIs, strategy to deliver a better service to users, financing, and accountability

mechanisms to the public/GoR as per the rules and regulations of the Rajasthan State Highway Act, 2015.

Data source/ Agency RSHA’s business model report, board’s minutes of approval of the business plan


Procedure

The TAC reviews the Business Model to confirm that it includes Authority’s corporate business model, KPIs, strategy to

deliver a better service to users, financing, and accountability mechanisms to the public/GoR as per the rules and

regulations of the Rajasthan State Highway Act, 2015.

DLI 10 The Cabinet has approved Financial Management Rules for the RSHA

Description

This DLI will be met when the rules and regulations governing the budgeting, fund flow, accounting, and reporting of RSHA

financial resources approved by the Cabinet. In case the DLI is met later than the target date, the disbursement linked to the

indicator will still be made when the DLI is met. The DLI is not scalable.

Data source/ Agency Cabinet minutes of session and copy of approved FM Rules


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Procedure The TAC reviews the Cabinet’s minutes of session, and confirm the cabinet’s approval of the FM rules.

DLI 11 Rajasthan has earmarked at least 50% of annual resources of the State Road Development Fund for development and maintenance of State Highways

Description

This DLI will be met when the GoR allocates at least 50% of the annual resources of the State Road Development Fund for

the fiscal year 2019-20 to the development and maintenance of the state highways. The disbursement linked to this

indicator is to incentivize the first transfer of money from the SRF, assuming that the allocation of money to state highways

will continue every year as per the provisions of the RSH Act. In case the DLI is met later than the target date, the

disbursement linked to the indicator will still be made when the DLI is met. The DLI is not scalable.

Data source/ Agency SRF’s Board Meeting minutes, RSHA’s annual financial report


Procedure

The TAC reviews SRF’s board meeting minutes to verify that 50% of the SRF’s annual revenues have been allocated to the

state highways development and maintenance, with no conditions attached. Furthermore, the TAC reviews SRF’s annual

financial statements to verify that allocation has been made.

DLI 12 RSHA has adopted the RAMS

Description

This DLI will be met when RAMS being developed under the bank financed RRSMP is adopted by RSHA to manage the state

highways network under its jurisdiction. In case the DLI is met later than the target date, the disbursement linked to the

indicator will still be made when the DLI is met. The DLI is not scalable.

Data source/ Agency RAMS consultant’s technical reports, sample RAMS reports, online access to RAMS. RSHA’s maintenance investment

planning report.


Procedure

The TAC reviews RAMS consultant’s technical reports, views the different modules of the system online, produces sample

inputs and output reports representing the various modules of the system, and verifies that the state highways data are

fully automated.


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DLI 13 RSHA Board has approved the Investment Plan

Description

This DLI will be met when the investment plan is approved by the RSHA Board. The Investment Plan should at least consist

of prioritized road network for maintenance, rehabilitation, up gradation, and budget estimates and resource planning. In

case the DLI is met later than the target date, the disbursement linked to the indicator will still be made when the DLI is

met. The DLI is not scalable.

Data source/ Agency Minutes of the RSHA Board meeting and Investment Plan Report


Procedure

The TAC reviews the Investment Plan approved by the RSHA Board which should at least consist of prioritized road network

for maintenance, rehabilitation, up gradation, and budget estimates and resource planning.

DLI 14 Rajasthan has approved the PWD-RSHA Transition Strategy and Plan prepared by the RSHA Cell

Description

This DLI will be met when RSHA Cell prepares a transition strategy in accordance with the RSHA Act for operationalization of

RSHA covering transfer of state highways, human resources and other assets along with the implementation plan and this

strategy is approved by the GoR.

Data source/ Agency GoR minutes of session, RSHA-PMU strategy document for transition


Procedure

The TAC reviews the minutes of session by GoR for approving the transition strategy for operationalization of RSHA covering

transfer of management of state highways, human resources and other assets according to the RSH Act and its

implementation plan.

DLI 15 RSHA and PWD have implemented the PWD-RSHA Transition Strategy and Plan

Description This DLI will be met when the approved transition strategy is implemented by the responsible entities i.e. RSHA and PWD.


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Data source/ Agency RSHA Cell report and Project Progress Report


Procedure The TAC verifies that all the actions/ activities of the approved transition strategy are implemented by RSHA and PWD.

DLI 16 RSHA has signed contracts for upgrading/ rehabilitating and/or maintaining 10,000 km of State Highways

Description

Definition: This DLI will be met when RSHA has signed contracts for upgrading/ rehabilitating/ construction/ maintenance of

5000 km of highways by taking over the management, as per the Transition Strategy approved by the GoR, of existing

contracts or signing new contracts from PWD and other agencies. The DLI is scalable. (Note: The 10,000 km to be

assigned/signed by RSHA are not part of the Project scope. The primary purpose of the DLI is to document the

operationalization of RSHA. The number of kilometers transferred to RSHA (either assigned or signed by RSHA) for

development or O&M are just a proxy of RSHA institutionalization (the actual outcome claimed by the Project). Scalability:

USD 2 million upon the signing of new, and/or assignment assumption, of existing, contracts covering at least 2,000 km, plus

USD 1 million for the contracting or assumption of contracts for every additional 1000 km thereafter, up to a maximum

amount of USD 11.5 million.

Data source/ Agency Government Order/ Notification/ Contract Agreements, Transition Strategy


Procedure

The TAC reviews the government order/ notification stating RSHA as employer of existing contracts and/or new contracts

signed by RSHA as employer as per the Transition Strategy approved by the GoR.

DLI 17 RSHA has drafted and the RSHA Board has approved the first Service Level Agreements between (i) RSHA and Rajasthan’s government; and (ii) RSHA and its cadre of executive managers

Description This DLI will be met when the first service level agreement (SLA) between (i) the RSHA and the GoR; and (ii) RSHA Board and

its cadre of executive management is drafted by RSHA and endorsed by the RSHA Board. The DLI is not scalable.

Data source/ Agency Service Level Agreement, Minutes of RSHA’s management meeting



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Procedure

The TAC reviews the two SLAs which should at least lay out the key performance indicators and related monitoring

mechanism, benchmarking it with good practices of relevant corporate entities. The TAC also reviews the minutes of RSHA’s

management meetings to verify the endorsement of the SLA by the RSHA Board.

DLI 18 PWD has fully developed the RADMS

Description

This DLI will be met when the RADMS is fully developed as a standalone or as COTS, customized to Rajasthan’s road safety

management needs. The DLI is not scalable. The RADMS should at least consist of accident data collection modules,

including community data collection module, analytical modules, reporting modules, mobile apps, and GIS platform.

Data source/ Agency The RADMS Consultant’s report, RADMS system


Procedure

The TAC will review the consultant’s technical report and progress report, witnessing live demonstration of RADMS on test

data.

DLI 19 The Rajasthan Police has rolled out the RADMS to all thirty-four (34) Police Districts Offices

Description

Definition: This DLI will be met when fully developed RADMS is installed and rolled out in all the thirty-four (34) Police

district offices of Rajasthan including the hardware, software, user manual, standard operating procedures and the training

of the staff. The DLI is scalable to provide flexibility. Scalability: USD 3 million upon the roll out of the RADMS to a minimum

of 20 Police District Offices, plus; USD 2 million upon the rolling out of the RADMS in the remaining 14 Police District Offices

for a total of 34 Police District Offices.

Data source/ Agency RADM’s Consultant’s report, RADMS system


Procedure

The TAC will review the consultant’s technical report and progress report, witnessing live demonstration of RADMS with

test data in all districts including provisions of mobile devices and staff trained as specified in the contract of RADMS

consultant.


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Verification Agency - TAC

S. No.

DLI

Total Financing Allocated to

DLI (US$, millions) (% of total financing)

Target Achievement

Timelines (Indicative)

Verification Protocol

Data/ Information Definition and Procedure

Highway Improvements - US$150 million (60%)

1. Four hundred seventy-two (472) kilometers (km) of roads executed through EPC contracts

90.0 (36%) Year 5 Project progress reports and data prepared by the AE for the PPP Division and reports by the TAC

Definition. This DLI will be met when a predefined number of kilometers of the state highways under EPC contracts are upgraded according to the designs approved by the AE. The upgraded works should also include compliance with the relevant social and environmental safeguards instruments adopted by the project and climate-resilient measures. This DLI is scalable to provide flexibility in disbursement. Scalability. US$10 million upon execution of 30 km, plus US$4 million for every additional 20 km thereafter, up to a maximum amount of US$103 million. Procedure. A comprehensive review will be carried out by the TAC on a randomly selected 10% road sections. The review covers engineering designs prepared by the contractor and approved by the AE. The review also includes quality assurance, contract management including settlement of contractor’s claims, compliance with and implementation of Environmental and Social Management Plans implementation of traffic safety measures, compliance with labor laws especially on child labor, and management of migrant labor. Besides the random selection of road stretches, the TAC will also include review of sensitive stretches on environment, social, and traffic safety. The TAC is expected to start work in June and December of every year, to certify that the DLIs have been fully or partially achieved or exceeded and on call basis also if ever needed in case of exceptional achievement.

Annex-1: Disbursement Linked Indicators and Verification Protocols


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S. No.

DLI



Target Achievement




2. Two hundred ninety-three (293) kilometers (km) of roads executed through PPP/HAM contracts

60.0 (24%) Year 5 Project progress reports and data prepared by the IE for the PPP Division and reports by the TAC

Definition. This DLI will be met when a predefined number of kilometers of state highways under HAM contracts are upgraded according to the designs approved by the IE. The upgraded works should also include compliance with the relevant social and environmental safeguards instruments adopted by the project and climate-resilient measures. This DLI is scalable to provide flexibility in disbursement. Scalability. US$10 million upon execution of 30 km, plus US$4 million for every additional 20 km thereafter, up to a maximum amount of US$69 million. Procedure. A comprehensive review will be carried out by the TAC on a randomly selected 10% road sections. The review covers engineering designs prepared by the contractor and approved by the IE. The review also includes quality assurance, contract management including settlement of contractor’s claims, compliance with and implementation of ESIMP, implementation of traffic safety measures, compliance with labor laws especially on child labor, and management of migrant labor. Besides the random selection of road stretches, the TAC will also include review of sensitive stretches on environment, social, and traffic safety. The TAC is expected to start work in June and December of every year, to certify that the DLIs have been fully or partially achieved or exceeded and on call basis also if ever needed in case of exceptional achievement.


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S. No.

DLI



Target Achievement




Operationalization of RSHA - US$90 million (36%)

3. The RSHA Chairperson and Board Members have been appointed

7.0 (2.8%) Year 1 Government Notification/Office Order of appointment

Definition. This DLI will be met when the Chairperson of the RSHA and all four full-time and three part-time members are appointed. In case the DLI is met later than the target date, the disbursement linked to the indicator will still be made when the DLI is met. The DLI is not scalable. Procedure. The TAC reviews the government notification/office order issued to the chairperson and members of the RSHA.

4. The Cabinet has approved the Rules and Regulations for the RSHA

6.0 (2.4%) Year 1 Cabinet minutes of session, copy of the approved rules and regulations

Definition. This DLI will be met when the rules and regulations on all items listed under the Sections 102 and 103 and other related provisions of the Rajasthan State Highways Act 2014 governing the duties, responsibilities, and authorities of RSHA have been prepared for efficient discharge of its functions and are approved by the state’s Cabinet of Ministers. In case the DLI is met later than the target date, the disbursement linked to the indicator will still be made when the DLI is met. The DLI is not scalable. Procedure. The TAC reviews the Cabinet’s minutes of session and confirms the Cabinet’s approval of the rules and regulations.

5. Rajasthan has allocated budget for the initial operation of RSHA

5.0 (2.0%) Year 1 Published budget by the Finance Department

Definition. This DLI will be met when the RSHA’s operating budget is approved and allocated by the GoR. The DLI is not scalable. Procedure. The TAC reviews the budget published by the Finance Department of the GoR and verifies that the RSHA’s operating budget for Year 1 is allocated under a separate budget head or as a budget line in the PWD’s budget.


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S. No.

DLI



Target Achievement




6. Rajasthan has notified the Rules and Regulations for RSHA

5.0 (2.0%) Year 1 The GoR’s gazette notification Definition. This DLI will be met when the approved rules and regulations (as approved by the Cabinet under DLI 4) according to the provisions of the Sections 102, 103, and 106 and other related provisions of the Rajasthan State Highways Act 2014 governing the duties, responsibilities, and authorities of the RSHA for efficient discharge of its functions are notified for adoption. Procedure. The TAC reviews the gazette notification issued by the GoR to adopt the rules and regulations approved by the Rajasthan State Legislature.

7. RSHA Board has approved RSHA organizational structure and staffing plan

5.0 (2.0%) Year 2 The RSHA Board Minutes of the Meeting and Report of the Organization Structure and Staffing Plan

Definition. This DLI will be met when the RSHA organizational structure and staffing plan are approved by the RSHA Board. The organization structure and staffing plan should at least consist of an organogram showing the links between functional units, roles and responsibilities, skill mapping, staffing estimates, staff acquisition strategy, training plan, succession strategy, and benefit packages based on the business model of the RSHA. In case the DLI is met later than the target date, the disbursement linked to the indicator will still be made when the DLI is met. The DLI is not scalable. Procedure. The TAC reviews the minutes of the Board meeting of the RSHA and verifies that the organizational structure and staffing plan has been approved by the Board. The TAC will also review whether the organizational structure and staffing plan have been based on the business model of the RSHA and benchmarking relevant good practices elsewhere.


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S. No.

DLI



Target Achievement




8. RSHA has appointed: (i) its management cadre (other than the RSHA Chairperson and RSHA Board members) and (ii) technical staff

8.0 (3.2%) Year 2 Government Orders/notification/appointment letters

Definition. This DLI will be met when 100% of the RSHA management staff, other than those defined in DLI 3, and 100% of technical staff are appointed. The DLI is scalable. Scalability. (a) US$2 million upon the appointment of at least 60% of the managerial cadre plus US$2 million upon the appointment of 100% of the managerial cadre and (b) US$2 million upon the appointment of at least 60% of the technical staff plus US$2 million upon the appointment of 100% of the technical staff Procedure. The TAC reviews the government document demonstrating that the staff is hired/appointed according to the staffing plan of the RSHA.

9. The RSHA Board has approved the RSHA Business Model

7.0 (2.8%) Year 1 RSHA’s business model report and board’s minutes of approval of the business plan

Definition. This DLI will be met when the RSHA’s business model is approved by the RSHA Board. The business model defines the authority’s corporate business model, key performance indicators (KPIs), strategy to deliver a better service to users, financing, and accountability mechanisms to the public/GoR according to the rules and regulations of the Rajasthan State Highways Act 2014. Procedure. The TAC reviews the business model to confirm that it includes the authority’s corporate business model, KPIs, strategy to deliver a better service to users, financing, and accountability mechanisms to the public/GoR according to the rules and regulations of the Rajasthan State Highways Act 2014.


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S. No.

DLI



Target Achievement




10. The Cabinet has approved Financial Management Rules for the RSHA

5.0 (2.0%) Year 1 Cabinet minutes of session and copy of approved FM rules

Definition. This DLI will be met when the rules and regulations governing the budgeting, fund flow, accounting, and reporting of the RSHA financial resources are approved by the Cabinet. In case the DLI is met later than the target date, the disbursement linked to the indicator will still be made when the DLI is met. The DLI is not scalable. Procedure. The TAC reviews the Cabinet’s minutes of session and confirms the Cabinet’s approval of the FM rules.

11. Rajasthan has earmarked at least 50% of annual resources of the State Road Development Fund for development and maintenance of State Highways

5.0 (2.0%) Year 1 The SRF’s board meeting minutes and the RSHA’s annual financial report

Definition. This DLI will be met when the GoR allocates at least 50% of the annual resources of the SRF for the fiscal year 2019–20 to the development and maintenance of the state highways. The disbursement linked to this indicator is to incentivize the first transfer of money from the SRF, assuming that the allocation of money to state highways will continue every year according to the provisions of the RSH Act. In case the DLI is met later than the target date, the disbursement linked to the indicator will still be made when the DLI is met. The DLI is not scalable. Procedure. The TAC reviews the SRF’s board meeting minutes to verify that 50% of the SRF’s annual revenues have been allocated to the state highways development and maintenance, with no conditions attached. Furthermore, the TAC reviews the SRF’s annual financial statements to verify that the allocation has been made.


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S. No.

DLI



Target Achievement




12. RSHA has adopted the RAMS

5.0 (2.0%) Year 3 RAMS consultant’s technical reports, sample RAMS reports, online access to RAMS, and the RSHA’s maintenance investment planning report

Definition. This DLI will be met when RAMS being developed under the World Bank financed RRSMP is adopted by the RSHA to manage the state highways network under its jurisdiction. In case the DLI is met later than the target date, the disbursement linked to the indicator will still be made when the DLI is met. The DLI is not scalable. Procedure. The TAC reviews the RAMS consultant’s technical reports, views the different modules of the system online, produces sample inputs and output reports representing the various modules of the system, and verifies that the state highways data are fully automated.

13. RSHA Board has approved the Investment Plan

5.0 (2.0%) Year 3 Minutes of the RSHA Board meeting and Investment Plan Report

Definition. This DLI will be met when the investment plan is approved by the RSHA Board. The Investment Plan should at least consist of the prioritized road network for maintenance, rehabilitation, upgrading, and budget estimates and resource planning. In case the DLI is met later than the target date, the disbursement linked to the indicator will still be made when the DLI is met. The DLI is not scalable. Procedure. The TAC reviews the Investment Plan approved by the RSHA Board which should at least consist of the prioritized road network for maintenance, rehabilitation, upgrading, and budget estimates and resource planning.


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S. No.

DLI



Target Achievement




14. Rajasthan has approved the PWD-RSHA Transition Strategy and Plan prepared by the RSHA Cell

5.0 (2.0%) Year 1 The GoR minutes of session and the RSHA-PMU strategy document for transition

Definition. This DLI will be met when the RSHA Cell prepares a transition strategy in accordance with the RSH Act for operationalization of the RSHA covering the transfer of state highways, human resources, and other assets along with the implementation plan and this strategy is approved by the GoR. Procedure. The TAC reviews the minutes of session by the GoR for approving the transition strategy for operationalization of the RSHA covering transfer of management of state highways, human resources, and other assets according to the RSH Act and its implementation plan.

15. RSHA and PWD have implemented the PWD-RSHA Transition Strategy and Plan

7.0 (2.8%) Years 1–2 The RSHA Cell report and project progress report

Definition. This DLI will be met when the approved transition strategy is implemented by the responsible entities, that is, the RSHA and PWD. Procedure. The TAC verifies that all the actions/activities of the approved transition strategy are implemented by the RSHA and PWD.


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S. No.

DLI



Target Achievement




16. RSHA has signed contracts for upgrading/ rehabilitating and/or maintaining 10,000 km of State Highways

10.0 (4.0%) Year 5 Government Order/Notification/Contract Agreements and Transition Strategy

Definition. This DLI will be met when the RSHA has signed contracts for upgrading/rehabilitating/construction/maintenance of 5,000 km of highways by taking over the management, accordion to the Transition Strategy approved by the GoR, of existing contracts or signing new contracts from the PWD and other agencies. The DLI is scalable. Note: The 10,000 km to be assigned/signed by RSHA are not part of the Project scope. The primary purpose of the DLI is to document the operationalization of RSHA. The number of kilometers transferred to RSHA (either assigned or signed by RSHA) for development or O&M are just a proxy of RSHA institutionalization (the actual outcome claimed by the Project). Scalability. US$2 million upon the signing of new, and/or assignment assumption of existing, contracts covering at least 2,000 km, plus US$1 million for the contracting or assumption of contracts for every additional 1,000 km thereafter, up to a maximum amount of US$11.5 million. Procedure. TAC reviews the government order/notification stating the RSHA as the employer of existing contracts and/or new contracts signed by the RSHA as employer according to the Transition Strategy approved by the GoR.


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S. No.

DLI



Target Achievement




17. RSHA has drafted and the RSHA Board has approved the first Service Level Agreements between (i) RSHA and Rajasthan’s government; and (ii) RSHA and its cadre of executive managers.

5.0 (2.0%) Year 2 SLA and the minutes of the RSHA’s Board meeting

Definition. This DLI will be met when the first SLA between (a) the RSHA and the GoR and (b) the RSHA Board and its cadre of executive management is drafted by the RSHA and endorsed by the RSHA Board. The DLI is not scalable. Procedure. The TAC reviews the two SLAs which should at least lay out the KPIs and related monitoring mechanism, benchmarking them with good practices of relevant corporate entities. The TAC also reviews the minutes of the RSHA’s management meetings to verify the endorsement of the SLAs by the RSHA Board.

Road Safety Improvements - US$10 Million (4%)

18. PWD has fully developed the RADMS

5.0 (2%) Year 2 The RADMS consultant’s report and the RADMS

Definition. This DLI will be met when the RADMS is fully developed as a stand-alone or as COTS, customized to Rajasthan’s road safety management needs. The DLI is not scalable. The RADMS should at least consist of accident data collection modules, including community data collection module, analytical modules, reporting modules, mobile apps, and GIS platform. Procedure. The TAC will review the consultant’s technical report and progress report, witnessing live demonstration of the RADMS on test data.


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S. No.

DLI



Target Achievement




19. The Rajasthan Police has rolled out the RADMS to all thirty-four (34) Police Districts Offices

5.0 (2%) Year 5 The RADMS consultant’s report and the RADMS

Definition. This DLI will be met when the fully developed RADMS is installed and rolled out in all the 34 police district offices of Rajasthan including the hardware, software, user manual, standard operating procedures, and the training of the staff. The DLI is scalable to provide flexibility. Scalability. US$3 million upon the rollout of the RADMS to a minimum of 20 police district offices plus US$2 million upon the rolling out of the RADMS in the remaining 14 police district offices for a total of 34 police district offices Procedure. The TAC will review the consultant’s technical report and progress report, witnessing live demonstration of the RADMS with test data in all districts including provisions of mobile devices and staff trained as specified in the contract of the RADMS consultant.


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1. The operationalization of the RSHA has a clear road map that includes the legal phase, the corporate governance phase, and the managerial and operational phase. The project’s support builds upon the progress made by the state authorities over recent years that culminated in the enactment of the Rajasthan State Highway Act, 2014 (Act No. 22 of 2015). Following this progress, the first 18 months of project implementation will heavily focus on critical milestones related to setting up the RSHA and making it fully operational. Figure 2.1 shows the major phases and milestones that cover the initial legal phase, the permanent corporate governance arrangements, and the operational and managerial aspects of the new institution.

Figure 2.1. Critical Institutional Milestones for Setting up the RSHA

Legal Establishment Phase

2. With a view to improve the performance and delivery of the strategic road network, the state government of Rajasthan enacted Rajasthan State Highway Act, 2014 (Act No. 22 of 2015) in April 2015. The act provides the legislative framework for further progress in reforming and modernizing the delivery of state highways in Rajasthan. The establishment of the legislation to transform the state highway management to a dedicated corporate body based on performance management practices signals high-level commitment to reforms. While earlier reforms were driven by funding constraints for the construction of roads, the current reforms focus on strengthening leadership; stronger performance based on clear output requirements; having greater operational autonomy and greater efficiency managing the strategic road network of the state as a utility through adoption of efficient contracting models of public delivery, scientific network planning, and robust asset management system; and entering into PPPs to finance the strategic road network.

3. The Rajasthan State Highway Act constitutes the constitution of the RSHA, including its powers and functions. It provides the legal details of the declaration, development, operation, safety, and regulation of state highways and the use and acquisition of land for highways and other roads. It also establishes a separate RSHA Fund for discharge of its functions, which could be funded from 50 percent of the SRF channeled to the RSHA Fund. The State Highway Authority Fund is intended to be funded from the Treasury budget, grants, loans, and/or the markets. The act also includes details on the list of roads declared as state highways (Schedule 1). It mandates the application of the existing State Road Fund Act to earmark at least 50 percent funds to the development and maintenance of

RSHA

cell

RSHACorporate

Governance

RSHAManagement

Systems

• Business model

• Organization structure• Staffing plan

• Manager & technical

staff• Transition strategy

• Permanent

Chairman• Permanent Board

of Directors

• Rules &

Regulations

• Budget

• Rajasthan State

Highway Act

• RSHA Fund

• Temporary

Chairman

& Board of

Directors

Annex 2: Operationalization of the Rajasthan State Highway Authority


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state highways. It details the powers to invest funds; raise money from different sources including corporate borrowing; and the power of RSHA to control access to highways, regulate traffic, deal with offences and penalties, and prevent unauthorized occupation of highway land. It also regulates the transfer of assets and liabilities from the state government to the RSHA on matters related to state highways.

4. The state government has already started to roll out implementation of the RSHA. First, the provisions of the act came into force on May 8, 2015, and the RSHA was legally constituted on June 3, 2015. The PWD Principal Secretary was temporarily appointed as the Chairman until the permanent appointment is made, and the RSHA part-time members constituting the board were notified on October 28, 2015. Those include the Principal Secretary Finance Department, the Secretary Planning Department, the Secretary Transport Department, and the Secretary of the PWD. The Conditions of Service for the Chairperson and the Full-time Members Rules were notified on December 28, 2015. The Rajasthan State Highways Fee was also finalized (Determination of Rates and Collection Rules, 2015), and the draft rules for the RSHA FM system and investment funds were concurred by the Finance Department (pending concurrence by the Comptroller and Auditor General [CAG]). Table 2.1 summarizes the immediate short-term actions required, according to the act, to operationalize the RSHA, some of which are already under way.

Table 2.1. Short-term Actions Required to Operationalize the RSHA

S. No. Reference Section of

the Act Action Required

1. 44 (4) Establish Search and Selection Committee for the appointment of Chairperson and full-time board members having

• Chief Secretary as Chairman; • An Additional Chief Secretary or a Principal Secretary to be nominated by the

state government - Member;

• Secretary in charge of the PWD - Member;

• Chairman of a public sector undertaking, to be nominated by the state government - Member; and

• Head of a research, technical, or management institute, to be nominated by the state government - Member.

2. 67 The state government will provide capital and loans or grants for efficient discharge of the functions of the authority—after due appropriation made by the Rajasthan State Legislature by law.

3. 68 Constitute the RSHA Fund by crediting the following:

• Any grant or aid received by the RSHA

• Any loan taken by the RSHA or any borrowings made by it

• Any other sums received by the RSHA Utilization purpose:

• Expenses of the RSHA in the discharge of its functions with regard to the purposes for which such grants, loans, or borrowings are received and for matters connected therewith or incidental thereto

• Salary, allowances, other remuneration, and facilities provided to the members, officers, and other employees of the RSHA

• Expenses on objects and for purposes authorized by this act

4. 102 and 103 Prepare rules and regulations for carrying out the provisions of the act and issue official gazette notification (list provided).

5. 69 Authority to prepare its budget for the next financial year and forward the same to the state government


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S. No. Reference Section of

the Act Action Required

6. 90 The state government to issue official gazette notification for delegation of powers under the act to the RSHA

7. 91 Constitute District Road Safety Council in every district of the state.

8. 55 and 56 Entrust additional highway to the RSHA and related transfer of assets and liabilities of the state government to the RSHA.

Corporate Governance Phase

5. State-owned enterprises (SOEs) often encounter many governance challenges. International experience shows that the main hurdles tend to be the existence of multiple principals and/or multiple (often competing) goals and objectives, the protection of the agency from competition, politicized boards and management, low levels of transparency and accountability, and weak protection of minority shareholders. The project will work toward identifying these challenges and risks for the new agency, using international practice and guidance.

6. Based on the analysis of these risks, the project will support the establishment of strong corporate governance arrangements for the RSHA. These include the appointment of permanent, independent, and competent Chairman and Board of Directors members. It also includes the detailed definition of rules and regulations and the initial annual budget. These features will be guided by international standards for SOEs.27

7. Specifically, the OECD guidelines on corporate governance of SOEs28 highlight several principles that need to be followed. The key areas include (a) ensuring an effective legal and regulatory framework; (b) making sure that the state is acting as an owner; (c) promoting an equitable treatment of shareholders and regular relations with them; (d) ensuring transparency and disclosure of information; and (e) clarifying the responsibilities of the board to ensure their authority, competency, and objectivity to carry out its function of strategic guidance and monitoring of management. Additionally, the World Bank team will also support the client using the Governance Tool Kit developed for SPVs29 that will support building institutional capacity in the areas of governance, procurement, and FM.

Managerial and Operational Phase

8. The project will also support institutional aspects for the effective day-to-day operational aspects of the new agency. At the managerial and operational levels, the main milestones will include

27 The official World Bank guidance for SOEs, based on the Organization for Economic Co-operation and Development (OECD) framework, will be followed as well as international benchmarks and practices for the sector. See: http://documents.worldbank.org/curated/en/228331468169750340/Corporate-governance-of-state-owned-enterprises-a-toolkit. 28 OECD (Organization for Economic Co-operation and Development). 2005. OECD Guidelines on Corporate Governance of State-Owned Enterprises. Paris: OECD. 29 The SPV toolkit in India operations is intended as a guide to assist FM and procurement specialists when conducting Institutional Capacity and Governance assessments of project-related SPVs. The toolkit will help the FM and procurement specialists identify key governance and fiduciary risks and mitigation measures, and develop an action plan to help build institutional capacity in the areas of governance, procurement, and FM. It is tailored to India’s institutional and governance context. It guides fiduciary assessments through the provisions of the relevant legislation, specific rules and regulations stipulated by the government, and latest corporate norms and best practices followed within the industry.

http://documents.worldbank.org/curated/en/228331468169750340/Corporate-governance-of-state-owned-enterprises-a-toolkit

http://documents.worldbank.org/curated/en/228331468169750340/Corporate-governance-of-state-owned-enterprises-a-toolkit


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defining the business model; setting up the organization structure, the staffing plan, policies and procedures, integrated software systems such as RAMS, network planning tool (NPT), and enterprise resource planning (ERP);30 and finally appointing the managerial and key technical staff. The new management team will also produce a transition strategy to roll out during implementation.

9. The new managerial structure has the ultimate purpose of ensuring that the agency’s resources are effectively and efficiently transformed into relevant and successful investments. Thus, the business model will adopt strong practices for both cross-cutting functions (for example, FM, procurement, and HR) and core operational functions that are primarily focused on the effective management of public investment projects. The business model will therefore focus on three major areas: (a) planning sustainable investment, (b) allocating investment to the right projects, and (c) implementing projects on time and on budget. Following the business model, the staffing and the organizational structure will be focused on fulfilling the following four objectives and managerial benchmarks: (a) planning sustainable levels of public investment, (b) ensuring public investment is allocated to the right projects, (c) delivering feasible and durable public assets, and (d) improving public investment operations. The features have been developed using international standards and benchmarks.31 Graph 2 summarizes the main areas, objectives, and managerial benchmarks for the RSHA investment projects management system.

Figure 2.2. RSHA Investment Management System: Objectives and Management Processes

10. Indicative road map for the institutionalization of the RSHA. Following the first actions carried out by the state authorities that have been implemented after the Rajasthan State Highway Act enactment, the project team, in coordination with the state authorities, has developed an indicative road map for operationalization of the RSHA that is shown in Figure 2.3:

30 Enterprise resource planning (ERP) is a business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back-office functions related to technology, services, and HR. 31 A Diagnostic Framework for Assessing Public Investment Management. World Bank. http://siteresources.worldbank.org/PUBLICSECTORANDGOVERNANCE/Resources/FrameworkRajaram.pdf; Public Investment Management Assessment (PIMA), IMF http://www.imf.org/external/np/fad/publicinvestment/.

Objective 1: Planning sustainable levels of public investment

• Are there permanent budget rules that support sustainable levels of capital spending?

• Are investment allocation decisions based on the sector and state strategies?

• Is there a favorable climate for the private sector to participate in infrastructure provision?

Objective 2: Ensuring public investment is allocated to the right projects

• Multi-Year Budgeting: Does the agency prepare MT projections of capital spending?

• Budget Comprehensiveness: To what extent is capital spending undertaken through the budget?

• Budget Unity : Is there a unified budget process for capital and current spending?

• Project Appraisal: Are project proposals subject to systematic project appraisal?

• Project Selection: Are there institutions and procedures in place to guide project selection?

Objective 3: Delivering productive and durable public assets

• Protection of investment: Are investment projects protected during budget implementation?

• Availability of funding: Is financing for capital spending made available in a timely manner?

• Transparency: Are major investment projects executed transparently and subject to audit?

• Implementation: Are capital projects well managed and controlled during the execution stage?

• Monitoring: Is the value of assets properly accounted for and reported in financial statements?

Objective 4: Improving public investment operations

• Proper maintenance funding: Is maintenance receiving adequate funding? Are routine

maintenance costs included in the annual or multi-annual budget? Are capital maintenance

projects an integral part of sector, state and national plans? Can expenditures relating to

maintenance be identified?

• Strong procurement: Is the procurement process for major capital projects open and transparent?

Is procurement effectively monitored? Are procurement complaints review process conducted in

a fair and timely manner?

• Cross-cutting issues: Is there a comprehensive integrated computerized information system for

public investment projects to support decision making and monitoring? Is there an adequate legal

basis for planning, budgeting, and implementing capital projects? Do staff capacity constraints

impede public investment management (PIM)?

http://siteresources.worldbank.org/PUBLICSECTORANDGOVERNANCE/Resources/FrameworkRajaram.pdf

http://www.imf.org/external/np/fad/publicinvestment/


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Figure 2.3. RSHA’s Rollout Indicative Road Map

11. Investing in institutional strengthening: beyond just training. The project, particularly the Component 1, has been designed to have a lasting impact on how state-level transport capital investments are designed, appraised, prioritized, constructed and contracted, maintained, and evaluated. Activities financed by the project will include training, consulting, reviewing, appraising, and so on but ultimately attempt to permanently affect managerial processes of the new agency. Institutional strengthening is understood as managerial practices put in place by the new RSHA and that these practices are based on international benchmarks. It means not only to have an appointed board but ensure that the board is active, competent, and independent. It means not only developing strong appraisal guidelines for new investment projects and making them mandatory but ensuring whether these guidelines are really used and the quality of the projects is higher. The rollout of the new agency is expected to follow this principle. Box 2.1 provides a sample of the types of activities contained in the project’s component and that will be detailed in the Procurement Plan.

YEAR 1

• FM Rules of RSHA Fund

approved

• RSHA rules and regulations

approved

• RSHA Budget Head created

(through PWD)

• RSHA operationalization

budget allocated

• RSHA Fund Account set up

• SRF board meets & decides

fund allocation to SH

• SRF board earmarks

funding for SH

• Business model prepared

and adopted

• Organization structure and

staffing plan approved

YEAR 2

• RSHA Managerial

and Technical staff

appointed

• Transition strategy

drafted and approved

• Network planning

tool and asset

management system

developed and

adopted

• RSHA transition

strategy implemented

YEAR 3

• Third year strategy

implemented

• Taking over active

management of 5000

km of state highway

network

YEAR 4

• Taking over active

management of

additional 5000 km

of state highway

network

• Service level

agreement prepared

• SLA signed and

implemented

Box-2.1. Activities to Be Funded under the Project

The project will support the GoR in operationalizing the RSHA according to the RSH Act. The activities to be financed, through individual consultants or consulting firms, may cover, among others, any of the following as needed:

• Definition of the organizational functions of the RSHA and design of its organizational structure and governance, including accountability framework with KPIs, legal aspects, business processes, operational rules and procedures

• Establishment of an HR management framework and systems, including staffing plan, contracts and terms of reference, recruitment and retention strategies, performance management, incentives, and so on

• Design and implementation of a modern, continuous learning platform for RSHA staff, including curriculum development and certification

• Development of a financing framework including private sector participation

• Establishment and operationalization of the RSHA Fund according to the RSH Act (Chapter X, Section 68).

• Establishment of a modern corporate governance framework in line with international practice that ensures the RSHA’s creditworthiness, enabling it to leverage its assets to access commercial financing at a competitive cost of borrowing

• Design of a risk management framework, both for financial matters and performance

• Establishment of FM, procurement, and contract management functions, including procedures and staffing

• Establishment of environmental and social management functions, including procedures and staffing

• Development and implementation of communication plans, both internal (for example, change management) and external (for example, citizen engagement and grievance redress)

• Application of the principles of the public investment management assessment (PIMA) tool to the new agency to make sure that public investment management processes follow international benchmarks and maximize the resource allocation process and implementation of capital investment projects

• Knowledge exchange activities to show how similar agencies have been designed and operate in other settings, in and outside India, and at the national and state levels


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Annex 3: Implementation Support Plan

Country: India Rajasthan State Highway Development Program II

1. The Implementation Support Plan details how the World Bank will support the implementation of the project to mitigate anticipated risks and achieve objectives and targets.

Strategy and Approach for Implementation Support

2. The focus of the implementation support strategy is to support the PWD in the operationalization of the RSHA. Setting up a brand-new institution is a rare undertaking for governments, and the risk associated to operationalize the RSHA is substantial. The PWD would find it difficult to implement this under a traditional institutional setting for a regular infrastructure project. The project envisages setting up a separate body, RSHA Cell, to be headed by senior-level staff from the GoR and supported by experts from the market in the areas of corporate law, governance, HR, corporate finance, technology, and others. The Cell would be answerable to the Board, which in turn is overseen by the state’s high-level empowered committee for policy-related matters. The World Bank’s support would also mirror the same to strengthen the task team, closely working with the Governance practice and the finance and the legal units to include seasoned public sector specialists and corporate finance and legal experts in the team. The World Bank may also reach out to external experts and chief executive officers of modern corporate organizations with mission similar to that of the RSHA for knowledge exchanges and study tours nationally and internationally.

3. The World Bank’s support strategy is also focused on ensuring the PWD’s capacity in the successful financial close of the HAM concessions. The PWD has already made a few successful financial closures for other multilateral development bank financed concessions for state highways improvement projects. The World Bank financing includes five state highways on the HAM implemented by the PWD. The PPP Division has a reasonable capacity but requires transaction advice from structuring the deals, procurement to financial close, and manage these contracts with assistance from an ‘IE’. The World Bank will include financial specialists in the task team to supervise the various stages of the pre-procurement, procurement, and transaction of the HAM contracts. The support provided by the IE will reduce the World Bank staff requirements for supervision during PPP implementation.

4. The PWD will require support from IDA in managing safeguards related to EPC and HAM contracts, introducing digital highways and green initiatives. Although both EPC and HAM contracts are not new to Rajasthan, implementation of Component 2 (State Highways Improvement) of the project involves introducing initiatives in the design and building of low CO2 technologies and implementing digital interventions included in the civil works. The World Bank also fulfills its due diligence through visiting ongoing and completed road and bridge works to verify adherence to the contract standards and the project’s safeguards requirements. The application of the World Bank’s policies and national law in managing land acquisition and compensating the affected people requires close monitoring and taking advantage of the newly introduced e-RAP. This supervision will extend throughout the project lifespan.

5. The World Bank’s support to the implementation of new management support systems is critical. The project will implement a comprehensive multi-sectoral RADMS, RAMS, e-PMS, and e-RAP. The World Bank support to the PWD and other agencies extends to deploying subject experts


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internally and externally to work with their counterparts and consultants working on these initiatives and help knowledge exchanges nationally and internationally.

Implementation Support Plan and Resource Requirements

6. The World Bank team will provide specific support to implementation during each phase of the project life as laid out in tables 3.1 and 3.2.

Table 3.1. Skills Mix

Time Focus Skills Needed Resource Estimate

0–12 months (initial phase of the project)

RSHA Operationalization. Intense implementation support with focus on the preparation of the RSHA rules and regulations, defining the RSHA’s business model. Support to study tours for national/international experiences. State Highways Improvements. Successful procurement of the EPC contracts and related project management support activities. Roadshows and workshops to attract concessionaires for the HAM contracts, support to strengthen procurement documents, and initiations of the procurement processes of the HAM contracts. Institutional Strengthening and Road Safety. Successful procurement of RADMS, NPT, and project management tool.

Corporate governance, corporate legal, corporate financing, HR, IT, change management, procurement, FM, engineering, social and environmental, road safety, gender, and PPP transaction experts

Technical staff time (engineering, road safety, procurement, safeguards, and finance): 40 staff weeks. Organizational experts (corporate governance, corporate legal, corporate financing, HR, IT, and change management): 20 staff weeks

13–36 months

RSHA Operationalization. Support focuses on finalizing of the business model, translation of the business model into organizational functions, organization structure and staffing plan, and adopting of RAMS and NPT. Formulate PWD-RSHA transition strategy and implement the initial phase of the transition strategy with course corrections. State Highways Improvement. Support the implementation of the EPC contracts and supervision of compliance with social and environmental safeguards. Successful procurement processes of the HAM contracts and financial closure and supervision of HAM contracts. Close monitoring of the implementation of the green and digital highways initiatives in HAM contracts. Institutional Strengthening and Road Safety. Successful procurement of road safety related activities, consultancy services for NPT, and project management tool. Close supervision support to the initial implementation of these activities through revising of inception reports outlining consultant’s plan to deliver the outputs.


Technical staff time: 36 staff weeks per year Organizational experts: 20 staff weeks per year


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Time Focus Skills Needed Resource Estimate

37–60 Months (maintenance phase of the OPRC)

RSHA Operationalization. Support focuses on implementation of organization structure and staffing plan, adopting RAMS and NPT, implementing transition strategy of third and fourth years, and preparation of maintenance and capital investment plans. State Highways Improvement. Light support to the implementation of maintenance phase of EPC contracts. Mild support to the implementation of the HAM contracts. Close monitoring of the implementation of the green and digital highways initiatives in HAM contracts. Institutional Strengthening and Road Safety. Close monitoring of the implementation and the quality of the outputs of the activities and their translation on the ground.


Technical staff time: 15 staff weeks per year Organizational experts: 20 staff weeks per year

Table 3.2. Skills, Staff Weeks, and Trips

Skills Needed

Staff Weeks Total Number of Staff Weeks

Number of Trips

Field and Headquarter Staff

Mix Year 1 Year 2 Year 3 Year 4 Year 5

Engineering 14 14 14 9 6 57 15 A combination of field-based and headquarter (HQ) based staff, mainly field-based staff

Road safety 3 4 4 3 3 17 10 Field-based staff

Social development 3 4 4 3 3 17 10 Field-based staff

Environment 3 4 4 3 3 17 10 Field-based staff

Digital development (IT) 2 3 3 3 3 14 10 HQ-based staff

Procurement 3 3 3 2 2 13 10 Field-based staff

FM 3 3 2 2 2 12 10 Field-based staff

Gender 2 2 2 2 1 9 9 HQ-based staff

PPP transaction 2 2 1 0 0 5 6 HQ-based staff

Corporate governance 2 2 2 2 1 9 10 Field-based staff

Corporate legal 2 2 1 1 1 7 7 Field-based staff

Corporate FM 1 1 1 1 1 5 5 Field-based staff

Change management 1 1 1 1 1 5 4 Field-based staff

Financial/private sector development

1 1 1 0 0 3 6 A combination of field-based and HQ-based staff


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Annex 4: Mainstreaming Gender Actions

Country: India Rajasthan State Highways Development Program II

1. Women constitute nearly half the population of the state of Rajasthan.32 The state government has framed and implemented various programs for women’s empowerment and development in various sectors to help women, particularly on equal terms in the decision-making process at all levels including their safety, protection, and rehabilitation.

2. Women’s safety in mobility. Mobility is experienced differently by women and men, as they use different modes of transport for different purposes and in different ways. To that extent, transport infrastructure is not ‘gender neutral’.33 This project aims to understand these differences and inform the design of the project accordingly.

3. A typical gender barrier on account of which women may not feel safe taking public transport is the incidence of gender-based violence. Personal safety and harassment on public transport are significant concerns for women, which affect their mobility. Globally, women-specific barriers to mobility include fear and experiences of sexual harassment and violence while accessing and using public transport. According to a 2014 study on ‘Women’s Safety in Public Transport in Jaipur’ conducted in collaboration with the Traffic Police, Jaipur Police Commissionerate, public transport, buses, and roadsides are reported as spaces where women and girls face high levels of sexual harassment.34 As part of the same study, various gaps in infrastructure were identified, which included absence of proper lighting, absence of proper footpaths, absence of bus stops, inadequate signage, and improperly maintained toilets. These findings are replicated in similar studies across India. Thus, the state of infrastructure or the built environment, including the infrastructural elements of road transport, is a concrete and visible way in which safety or unsafety is determined and which can be changed.35 A review of secondary literature therefore indicates that infrastructure is an important factor in women’s safety in mobility.

(a) Action. To improve the safety of women along the project corridors, a gender audit of infrastructure facilities from a safety perspective along the project corridors would be conducted before the initiation of works, midterm, and end term. The audit would serve two purposes. First, it would help understand the type of infrastructural barriers that affect women’s safety along the proposed corridors. Through this analysis, suitable interventions would be identified and implemented within the project. The infrastructural interventions will include improving safety features on bus stops such as lighting, provision of toilets for women, shelters, display of information, and so on. Additionally, pedestrian infrastructure would be enhanced around bus stops, with particular emphasis on women’s unique safety concerns36 and facilitate access to differently abled people. Second, the survey would help establish the baseline for

32 According to the last Census of 2011, females comprise 48.1 percent of the total population of Rajasthan. 33 Uteng, Tanu Priya. 2011. “Gendered Bargains of Daily Mobility.” World Development Report 2012. 34 Singh, Prerna. 2014. “Women’s Safety in Public Transport in Jaipur.” 35 Mahadeviya, D., S. Lathia, and S. Banerjee.2016. “How Safe are Public Spaces for Women in Ahmedabad.” CEPT University. 36 Shah, Sonal, Kalpana Viswanath, Sonali Vyas, and Shreya Gadepalli. 2017. “Women and Transport in Indian Cities.” Institute for Transportation & Development Policy and Safetipin, New Delhi; Also read IRC 103:2012 Guidelines for Pedestrian Facilities.


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women’s perception of safety along the project corridor, so that progress can be tracked accordingly.

(b) Indicator. Improvement in perception of safety among women along project corridors.

(c) Source. Baseline and information gathered through study.

4. Harassment in the workplace. The risk of sexual harassment in the workplace disproportionately affects women and impairs their ability to function effectively. Under the SHWW Act 2013, employers are required to constitute an ICC to address complaints of sexual harassment in any establishment having 10 or more employees. This act applies to both the government and private sectors. It requires employers to conduct education and sensitization programs and develop policies against sexual harassment, among other obligations. Thus, the PWD as well as contractors and consultants would be required to comply with the act.

5. The PWD has set up an ICC. However, there are gaps in the effective functioning of the ICC as well as compliance with other obligations under the act. Preliminary discussions reflect low levels of awareness regarding the ICC and sexual harassment issues. It has been observed by the International Labour Organization in South Asia that a significant obstacle is the general lack of awareness on the issue of sexual harassment.37 In this regard, the project will carry out an assessment of the gaps in the functioning of the ICCs and other obligations under the SHWW Act 2013. Additionally, support would be provided on the setting up and functioning of ICCs by the contractors and consultants as well.

(a) Action. Gap assessment of effective functioning of the ICC. The findings will be used for developing and delivering training, awareness building, enhancing reporting mechanisms, and other compliances mandated by the statute. Periodic surveys would be conducted among employees to ascertain awareness of and comfort in accessing the ICC.

(b) Indicator. The indicator would be improvement in the number of employees aware of and comfortable with approaching the ICC.

(c) Source. This information would be gathered through surveys.

37 International Labour Organization. 2018. “India Must Have Zero Tolerance for Workplace Sexual Harassment.” Accessed at http://www.ilo.org/asia/info/public/WCMS_220527/lang--en/index.htm on September 2, 2018.

http://www.ilo.org/asia/info/public/WCMS_220527/lang--en/index.htm%20on%20September%202