Executive Summary
India's economy has since quite a while experienced the national highway framework's ceaseless traffic limitations. In 1998 the administration propelled the NHDP to address limit issues and redesign key expressways. Its key segments were
(i) Rehabilitating and extending the Golden Quadrilateral, a 6,000 km expressway system to be finished before the finish of 2004 (first stage); and
(ii) Rehabilitating and extending the 4,000-km north– south passageway and the 3,300km east–west hall to be finished before 2007 (second stage).
ADB gave a series of advances in help of the NHDP. The task was the fifth and the toward the end in this arrangement. The venture's principle component was to restore and enlarge need segments of the north–south passage, with an accentuation on 566 km of existing interstate roads covering 313 km of NH26 (Lalitpur– Lakhnadon) and 253 km of NH7 (Kurnool– Andhra Pradesh/Karnataka fringe) in the conditions of Uttar Pradesh, Madhya Pradesh and Andhra Pradesh. The venture was lined up with the techniques sketched out in the Country Strategy and Program Update (2005-2017) and it bolstered the NHDP.ADB's strategies for India’s national highway subsector were to further strengthen project development and implementation capability and to enhance private-sector participation (PSP).
Since 2001, ADB has put into use a systematic approach for NHAI to advance these good changes in a progressive manner and is slowly changing for the better through a lending program spanning decades.
. ADB support to the government under this multi-year program includes:
(i) Strengthening NHAI’s project development and implementation capability;
(ii) Promoting PSP in highway development, tolling, and operation and maintenance
(O&M);
(iii) Strengthening NHAI’s fund mobilization capability;
(iv) Strengthening NHAI’s O&M functions; and
(v) Restructuring NHAI to make it more efficient.
The programmatic approach is highly relevant to support the government’s priority to expeditiously complete a modern, safe national highway network. To perform its role, NHAI must have sufficient implementation capability, secure financing, PSP, O&M capability, and an effective organization.
In 1998, the Government of India propelled the National Highways Development Project (NHDP) to redesign key corridors of the national highways to remove the perpetual traffic limitations. The Asian Development Bank (ADB) gave a series of advances to help the NHDP, which was extended to National Highways Authority of India (NHAI) for execution. The $400 million National Highway Part/area II Project (the task) was recommended on 21 December 2004 and was the fifth phase in this arrangement supporting the last part of the NHAI's institutional strengthening system and financing the updation of the national expressway
along the north- south passage. The task's perceived effects were enhanced transport productivity, promoting higher financial activity.
Description of project and stakeholders
At appraisal, the project outputs were:
(i) Improved efficiency of the authority responsible for managing national highways;
(ii) Upgraded north–south corridor;
(iii) Improved road safety;
(iv) Higher community awareness of the risks of HIV/AIDS and human trafficking.
The project was intended to support NHAI in its institutional strengthening to enable it to carry out its mandate more efficiently and contribute to overall transport efficiency. Traffic would increase along the north–south corridor with improved transport efficiency, shorter journey times, lower vehicle operating costs, and reduced accidents. The project would spread the benefits of economic development by catalyzing forward backward linkages, uplifting the people in the project area, most of whom are poor. Project design and preparation incorporated lessons from implementing previous loans in India. The mitigation measures to address the project risks were:
(i) providing technical support for achieving NHAI’s institutional strengthening objectives,
(ii) Undertaking advance procurement actions,
(iii) Establishing project implementation units (PIUs)
(iv) Strengthening project management to reduce possible implementation delays,
(v) Auditing road safety, and
(vi) Providing a road safety zone to address the potential for an increase in accidents
Following
as a result of improvements to the highway network.
stakeholders were involved in the project-
Project Scope
1. InstitutionalStrengthening
The project started off with the primary goal of helping NHAI achieve its institutional development objectives of improving efficiency, particularly
(i) Strengthening project management
(ii) Updating standards for planning, design, construction and
maintenance of highways.
Under government’s own initiative on institutional development, NHAI
(i) Put in place a restructuring program proposed by consultants
appointed under a World-Bank-funded project to strengthen project
management efficiency
(ii) Adapted updated standards and code of practice for planning, design,
construction and maintenance of highways.
As per the new restructuring program, NHAI increased its board size by creating new functional units responsible for road safety, legal issues, quality control, and project appraisal.
2. HighwayDevelopment
It was expected that the project would lead to widening of 566 kilometres of national highways to four lane ones. The national highways was divided into two sections. Upon completion, 567.03 km of national highways along the north–south corridor had been widened to four lanes and upgraded with substantial safety facilities. The project covered two sections: 314.43 km of NH26 (Lalitpur–Lakhnadon) and 252.60 km of NH7(Kurnool–Andhra Pradesh/Karnataka border). The movement of people and goods on upgraded roads during 2015 was estimated as 2,267,726 average daily vehicle-km
Contractors carried out quality control during construction as required by the agreement. The construction supervision consultants (CSCs) were responsible to monitor the adherence with the specifications. There were no significant defects found during the defect liability period. The roads were found to be of good quality, comfortable and safe to drive on and equipped with systems to maintain good condition by Asian Development Bank’s PCR mission
3. Road Safety
The project was started with an objective to improve road safety. The project was slated to adopt road safety zone concept from the very beginning. A section of the highway in Andhra Pradesh was selected as pilot project. It was to be equipped with an advanced traffic management system and weighing platforms to check overloading. Speed monitoring gadgets, and ambulances along with other relief vehicles were also part of the project. NHAI in its quest for bettering the project engaged consulting firms to deal with activities such as safety audit, designing the road safety zone and preparation of specifics for road safety equipments. The study started late because of delay in recruitment of consultants.
4. HIV/ AIDS and Human-Trafficking awareness
Upon completion of the project it was intended that a program on HIV/AIDS awareness and human trafficking awareness would be taken up in areas alongside the highway. In accordance with the civil works contracts, all contractors conducted the HIV/AIDS awareness and prevention programs for the labor. Several Nongovernment Organisations were engaged by NHAI for the awareness drive at multiple project sites.
Project Framework
Design Summary
Targets
Project Acheivements
Impact
Improved road transport efficiency, leading
to increased economic opportunities
Percentage of 4 lane highways improved from 6% to 20%
Increase in passenger and cargo transport
By 31 May 2016, more than 26,000 km of national highways have been widened to four or six lanes. This constitutes more than 40% of the national highway network of 65,569 km.
Freight traffic on roads has increased by about 100%
Outcome
Strengthen NHAI to perform its responsibilities better
Improve access connecting the northern and the southern parts of the country
Completed the upgrade activity of 13,000 km under the National Highways Development Project by 2008.
Developed an integrated corridor Management System for 6,000 km of highways and awarded to private sector by 2008.
Increased percentage of four-lane highways along the north–south corridor by 15%.
Increased north–south vehicle movement by 9% per annum
Under the NHDP, 24,460 km of the national highways had been upgraded by 31 May 2016.
Integrated corridor management concept for about 48,000 km national highways has been developed. The corridor management and road maintenance for the completed works have been awarded to the private sector under various forms of contracts.
Four-lane highways along north–south corridor have increased by more than 50%.
Although about 80% of the north–south corridor has been completed, the critical highway section connecting the northern and southern part of the country is under implementation. Based on the traffic growth trends on adjoining sections, north–south vehicular movement is expected to increase by 9% per year
Outcome
Efficient authority responsible for managing national highways
Upgraded north–south corridor
Improved road safety
Raised community awareness of the risks of HIV/AIDS and human trafficking
By 2007, the new organization structure and staffing in place, permanent staff proportion increased by 50%, and standards and guidelines updated, and financial management system improved.
Minimum 560 km of national highways upgraded by 2008.
Traffic fatalities in the road safety zone reduced by 20%.
Available and accessible information, prevention tools, and services for testing, counselling and treatment.
NHAI implemented a restructuring program approved by the cabinet in 2007 for improving the institutional and project management efficiency. NHAI also adapted updated standards and codes of practice for planning, design, construction and maintenance of highways.
Upon completion, 567.03 km of national highways along the north–south corridor were widened to four lanes and upgraded with substantial road furniture and safety facilities.
Some of the safety equipment and facilities suggested under the study on road safety under Loan 2029-IND has been incorporated in the completed highway as a part of the
O&M concession. However, the accident data for the project highway still indicate a significant number of fatalities.
All contractors conducted the HIV/AIDS and anti-trafficking awareness and prevention programs for the labor. The NGOs conducted intensive HIV/AIDs awareness and anti-trafficking campaigns at project sites.
Project Organisation for Implementation
National Highway Authority of India Headquarters
PIU-Narsinghpur
Project Directors Project Managers Accountant Support Staff
PIU-Anantpur Project Directors Project Managers Accountant Support Staff
PIU-Sagar Project Directors Project Managers Accountant Support Staff
Construction Supervision Consultants
NGOs
Construction Supervision Consultants
NGOs
Construction Supervision Consultants
NGOs
Civil Works Contractors
Civil Works Contractors
Civil Works Contractors
Funding, baseline budget and time
Funding – The funding of the project was done by ADB (Asian Development Bank) by loan of $ 400.0 million and government funds of $270.6 million from Government of India. The loan from ADB got approved on 21st December 2004, signed on 15th December 2005, and its effective date was from 20th February 2006. During implementation, imprest account and statement of expenditure method were not used as NHAI had enough funds to make payments. Upon completion, utilised ADB loan was $388.3 million and by government it was $356.1 million.
Baseline Budget – For funding loan appraisal completed by 22nd July 2004. Effective loan date was 15th March 2006 but in actual it was 20th February 2006. Due to initial implementation delay, there was a delay in disbursements of loans. In 2007 and 2008 loan disbursement was slowed because of delay in awarding contracts. Some of the civil work contracts expected closing date exceeded but it was estimated the complete budget will be used till the end of the project without any extension requirement. Loan estimated closing date was 31st December 2008 but in actual it was 9th May 2012. On 9th may 2012, 97.08% loan taken was utilised and rest was cancelled. Summary of baseline budget and actual is given in below table.