Aide-Memoire INDIA: Himachal Pradesh State Roads Project [Ln

Aide-Memoire INDIA: Himachal Pradesh State Roads Project [Ln. 4860-IN, Ln. 8199-IN] Implementation Support Mission (June 5 - 10, 2017)

EXECUTIVE SUMMARY

A World Bank mission visited Himachal Pradesh during June 5 to 10, 2017, to review and evaluate the implementation progress towards the likelihood of achieving the project development objectives, and to provide support to the Government of Himachal Pradesh (GoHP) in the implementation of the Himachal Pradesh State Roads Project (HPSRP). The achievement of the Project Development Objective is rated Moderately Satisfactory and Implementation Progress rating has also been maintained Moderately Satisfactory on account of the overall progress of project activities.

1. STATUS OF THE OVERALL PROJECT 1.1. Overall: The project has been implemented over a course of 10 years with two time extensions. The project achieved all its PDO level indicators even surpassed the targets except for one. However, given the excessive delays of the benefits to the beneficiaries and some project activities are yet to be completed, the PDO is rated Moderately Satisfactory. It has completed 94% of the civil works and disbursed about 96% of the adjusted loan after cancellation. It has substantially achieved the results targeted at appraisal, some exceeded and some short of the targets. The project when conceptualized did not factor in lots of the challenges that were unforeseen but became apparent during implementation. Himachal Pradesh being new to such large scope of operations, compounded by the geohazard nature of the topography and the challenges of adverse weather and local circumstances, the project was forced to move at slower pace than planned. Notwithstanding the upcoming independent ICR work, the mission has put together a note of its takeaways, of the overall project implementation, which is annexed to this aide memoire. Component-1 comprises 12 roads upgrading and two bridge works; out of which 10 road contracts have been completed, 2 in progress and both bridge contracts have been substantially completed. The overall physical progress has reached 94% based on the revised scope, which includes a huge additional works. The two ongoing road contracts will likely take another 6 months to one year to be completed. Component-2 comprises maintenance of core road network and institutional development activities, most of which have been completed including all the 78 periodic maintenance works of over 1484 km. Four of the five planned performance based maintenance contracts have been awarded and being implemented. The remaining one was reclassified and transferred to NH; hence have been dropped from the project. Several institutional development activities have been either completed or progressing well except two: (i) transferring the management of core road network maintenance to RIDC and; (ii) creating a sustainable road maintenance funding mechanism. On maintenance funding PWD maintained that the existing maintenance funding mechanism and sources is quite adequate and sustainable demonstrating that the maintenance budget allocation has doubled over the last ten years, but the sustainability of the source is still a question. Regarding maintenance management responsibility of for the core road network, PWD argued that a substantial size of the core road network (18 State Highways 1466.300 Km and 53 Major District Roads 2144.915 Km) is now reclassified as NH and are to be transferred to National Highways Authority, and as such there is not so much of the network left to be transferred to RIDC. Disbursement and Loan Closure: The original loan Ln-4860 (USD 220 mil) disbursed 100% and closed on June 30, 2016. Disbursement as on November 30, 2017 from the additional loan IBRD 81990 was USD 46.32 million, which represents 99.2% of the loan of USD 46.7 million. The additional loan was closed on June 30, 2017. INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

1.2. Social and Environment Management Environmental Safeguards: The implementation of environment management activities/works was rated Moderately Satisfactory on account of some improvements made to address lists of Bank’s observation in the last missions on noncompliance to the environmental safeguard requirements. There are however some issues still relapsing and need to be attended diligently. Overall the project has done exemplary work in environmental management and safeguards, despite the difficult and eco-sensitive environment in which the civil works had to be executed. It has even gone beyond complying with the environmental norms, but adopted innovative practices such as bioengineering to minimize soil erosion, landslides thereby stabilizing fragile slopes to a possible extent. The rock cut from the slopes was incorporated to the maximum possible in the construction and also used for landfills, which in turn was used for social purpose like playground, small schools, small businesses, recreational spots, etc. Social Safeguards: the implementation progress of social safeguards is Satisfactory. The project has been closed on satisfactory note for the implementation of social safeguards – all the entitlements including compensation was disbursed except for those under litigation; through design revisions about 342 structures were saved; all the CPRs were relocated; impact evaluation study informs satisfaction levels of the majority surveyed on the implementation of RAP and achieving project R&R objectives. However, a few actions in the short term are pending to be completed and need to be followed up in the follow-on project.

1.3. Procurement and Financial Management Procurement is rated Moderately Satisfactory. The mission noted that most of the procurement activities have been completed. A few under procurement need to be expedited. Financial Management performance is rated Moderately Satisfactory. Loan under IBRD 48600 is fully disbursed and the disbursement record was closed on October 31, 2016. Disbursement from the World Bank as on June 31, 2017 for the additional financing IBRD 81990 is USD 25.97 million, which represents 42% of the original signed loan of USD 61.7 million and 55.61% of the loan after cancellation, i.e. USD 46.7 million. The closing date of the additional financing falls on June 30, 2017. It is expected that entire loan will be disbursed by the closing date, after the cancellation of USD 15 million. The internal audit function is working satisfactorily with reports till quarter ending March 31, 2017 have been shared with the Bank. The external audit report for FY 2015-16 was submitted in time and is unqualified.

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

2. Key Issues: the project has yet to complete about 6% of the civil works after the Bank loan closes. The Government has already approved the required budget for FY 2017/18 Indian fiscal year. It has also retained the independent supervision consultant to ensure proper supervision and quality control of construction works.

3. KEY LESSONS FROM IMPLEMENTATION

• Market study prior to tendering: to maximize the participation of contractors and get the best value for money, a market study of the demand and supply has to be carried out upfront. This helps to package the tenders commensurate with the local construction market supply.

• Package sizing: the topography, length of construction season, the contractors’ capacity, and availability of material, proximity to input supply centers determine the appropriate size of the package that can be implemented in a predetermined period. This must be considered in future planning.

• Detailed design with proper geohazard investigation: the cost of some contracts exceeded more than 50% of the original cost due to unforeseen additional work caused by slide and design changes to cater for geotechnical risks apparent during implementation. A more detailed geotechnical investigation at design stage using latest technologies and the resulting appropriate design measures would have avoided GoHP substantial number of reworks encountered and associated cost.

• Mainstreaming the Bio-engineering technique: bioengineering has been piloted and proved to be cost effective and environmentally friendly slope stabilization measure. Based on the lesson learnt in the pilot, it should be properly mainstreamed in the design standards and specifications. PWD engineers and contractors’ training program should be designed and delivered at regular intervals, more research and development works have to be carried out based on the local geology and bio-diversity situation in collaboration with the academic institutions.

• Encumbrance free right-of-way for contractors: in a few packages, contractors did not have 100% encumbrance free sites even at the original completion dates. Most of the extension of time granted was due to failure to provide possession of encumbrance free sites on time. Going forward, it should be be made mandatory a minimum of 80% of the land should be available before invitation for bids is out and the remaining should be fully available within six months of commencement of works.

• Mining, forest, material, crushing and camp site clearances: traditionally incoming contractors are responsible to secure clearances from the respective government departments through a tedious bureaucratic process where there is no accountability to the performance of the departments. Contractors with high incentive to get the clearances, may be subject to rent seeking and other malpractices, including for example, dealing with illegal material suppliers to meet their contractual obligations. This would be avoided if PWD takes this responsibility to identify as part of the design process, the requirement for forest, mining and sites and gets it cleared from the respective departments. Considering the opportunity cost of delays in capital investment projects such as HPSRP, GoHP may consider setting up a governance and accountability mechanism including developing a one-stop-shop clearance mechanism monitored by high- level oversight committee for all key infrastructure investment projects.

• Strengthened contract management capacity: the project has not built in a systematic contract management capacity building program; hence PMU unduly leans on the construction supervision consultant and the dispute resolution/arbitration mechanisms, which proved to be adversarial and ineffective. RIDC needs to assess key areas of competence required at each level of management and design a contract management capacity building program. This will enable deal with contractual issues at earlier

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

stages before they developed in to disputes.

• Sufficient authority to PMU including FM: most contractual decision making has been centralized for a good part of the implementation period, with the project management board which convenes every occasionally. This has caused a lot of delays in implementation and contractual complications, when sometimes decision have been indefinitely held back. As good practices elsewhere suggest, PMUs are vested with appropriate authority to smoothly implement projects, while some authorities depending on risk levels could still be retained at higher levels.

• Rolling out performance based contracting: the project has implemented both input and out performance based maintenance operations (OPBMC), and the later proved to transform the way maintenance is to be managed, provided the best value for money. It is much cheaper per km than the traditional inputs based maintenance, road condition are much better as contractors are required to maintain the roads at a prescribed service level. GoHP has already started to scale up the operation outside this project through its own resources.it is suggested to rollout state wise as a norm with a proper institutional system and operations manual. • GoHP to own and drive institutional reform initiatives: implementation of the institutional reform initiatives have not been achieved as expected. This might have been partly due to such initiatives would be suggested at project conception by the Bank team, but rushed into implementation before deeper discussion at all concerned levels of the Government and not fully owns and start driving it.

• Lay out long term sector program, including investment, institutional and financing reforms: after ten years of implementation of this project, it is observed that PWD was struggling to put together the next phase of program. This was due to lack of a long-term sector program. Going forward it is suggested that a phased long term investment program, financing framework and associated institutional framework be designed as part of the preparation of the follow-on project.

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

DETAILED AIDE MEMOIRE

INTRODUCTION

1. A World Bank mission1 visited the state of Himachal Pradesh during June 5-10, 2017, to carry out a final implementation support mission before the closing of the Bank loan and review overall implementation progress made since the last mission for the Himachal Pradesh State Roads Project (HPSRP). The mission visited the sites of the two ongoing projects and held extensive discussions with officials and engineers from the Public Works Department (PWD) and the Himachal Pradesh Roads and other Infrastructure Development Corporation (RIDC). 2. This Aide-Memoire (AM) summarizes the findings, recommendations, and agreements reached during the mission. The main findings and actions to be taken, an update of actions agreed during the last mission, were all discussed with PWD and RIDC at a wrap-up meeting in Shimla.

II. KEY PROJECT DATA & PERFORMANCE RATING Table 1 Key Project Data & Performance Rating

Key Project Data Project Performance since the last mission Total Project Cost (PAD): US$ 401 million Project Development Objective: MS Loan Amount: -Original Loan: US$220 million Implementation Progress: MS -Additional Loan: US$61.7 million -Cancellation of AF: US$ 15 mil Bank Board Approval Date: -Original Loan :June 5, 2007 Project Management: MS -Additional Loan: October 25, 2012 Effectiveness Date: -Original Loan: October 5, 2007 Procurement: MS -Additional Loan: April 2, 2013 Loan Closing Date: -Original Loan---June 30, 2016 (Closed) Financial Management: MS -Additional Loan---June 30, 2017 (Closed) Project Age: 120 months Environmental Safeguards: MS Loan Disbursed: - IBRD-81990 99.2% ($ 46.32 out of $46.7 m) Social Safeguards: S - IBRD-48600 100% ($ 220 m out of $220 m)

Flags: (one) Country Record Ratings: HS=Highly Satisfactory; S=Satisfactory; MS=Moderately Satisfactory; MU=Moderately Unsatisfactory; U=Unsatisfactory; HU=Highly Unsatisfactory 3. Project Development Objective (PDO). The development objective of the Project is to reduce transport costs and to improve traffic flows on priority segments of the core road network of Himachal Pradesh. This objective is to be achieved through a package of prioritized infrastructure investments and improved management practices. The indicators to measure performance in achieving the development objective are: (i) condition of the core network; (ii) speeds on the project upgrading roads; (iii) fatal accident rate on the state highways and; (iv) the level of road user satisfaction on the core network. The mission together with the GoHP reassessed the Project Development Objective (PDO) and concluded that the PDO

1 The mission comprised of Mesfin W. Jijo (Task Team Leader and Sr. Transport Specialist), Dilip Kumar Prusty Chinari (Finance Analyst), Venkata Rao Bayana (Social Development Specialist - Consultant), R. Thiagarajan (Road Safety Consultant), Deepali Uppal (Program Assistant). 5

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017 remains valid and it has been substantially achieved by the end of the project. The progress in achieving these performance indicators is presented at Annex 1. 4. The project achieved all its PDO level indicators even surpassed the targets except for one. However, given the excessive delays of the benefits to the beneficiaries and some project activities are yet to be completed, the PDO is rated Moderately Satisfactory. The mission discussed the necessity of a transport cost indicator as implied in the PDO statement, to which none of the original outcome/output indicators are directly linked. It was understood that the transport cost is driven by many of other factors and agreed that the project will look at vehicle operation costs (VOC) before and after the upgrading works along the road corridors. It is therefore understood that the VOC is only a proxy indicator to transport cost. In this regard, RIDC has carried out primary field data and secondary data collection on VOC before and after the project. This indicator has also shown a considerable success in reduction of transport cost to the users. Table 2 PDO Indicators

Target Value/Status of performance Outcome Indicators Baseline Value by indicator completion % of the entire core network 40% 10% 10.40 (~4,000 km) in poor condition 2Reduced Transport cost as 14.39 10.71 9.78 measured by VoC (Rs/km) Average speeds on the WB 25% for financed roads, which received Average Speed = 38.4 25 kmph completed upgrading, predicted using HDM- Km/Hour (38% increase) stretches 4, (% increase) Death rate on HP state highways 23 (number of deaths involved in Revised 2.0 0.21 traffic accidents/1,000 veh) value 0.54 Level of road user satisfaction with the entire core network, index 1.5 3.0 3.104 1-5

III. DETAILED PROJECT IMPLEMENTATION Overall Implementation Progress: The Project consists of two components. The overall Implementation Progress is rated as Moderately Satisfactory and the details are as follows.

Component – 1: Core Network Improvement Component (Moderately Satisfactory):

5. Overall: The overall Implementation Performance was rated moderately satisfactory both for the review period and for the entire project implementation period. Since the last mission owing to the average rate of progress in civil works, i.e. about 8% since the last mission and the completion of two more contracts namely package 1 bridges, package 7 bridge and package 9 road bringing the total completed packages to 12. Despite missing the intended completion date – June 30th 2017, package 5-2 has made a good progress, while package 5-1 trails behind the plan.

2 A newly introduced indicator to proxy cater for the “reduction in transport cost” part of the PDO. 3 This baseline was found to be irrelevant as it relates to accidents recorded in the entire road network, while it should have been only for the state highways. The baseline was corrected accordingly 4 (Survey conducted in April/May 2015)

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

6. Highlights: As of the current mission, 12 out of 14 road upgrading and contracts namely contracts have been completed and taken over by PWD. These include 2 bridge packages and 10 road upgrading works. The overall physical progress of civil works is 94% compared to 89% in June 2015. As expected in the previous missions, Packages 5-I and 5-II remained to be completed beyond the loan closing date. 7. Contract 1: completed with exemplary quality and handed over to the RIDC in December 2014. Defect liability period will be over in December 2015, no serious defects have been observed, as built drawings have been submitted to the Employer. 8. Contract 1-B bridges: This contract consisting of 6 bridges and 2 minor drainage structures with approach works, has been awarded in August 2014 and works commenced in October 2014. The contractor’s progress in mobilization, organization of the site and programming of works has continued to be satisfactory and the physical as well as financial progress is about 100% from 79% in the last mission. The contract has been completed and in its defects liability period.. 9. Contract 2 has been completed and a final taking over has been made by RIDC, disputed contractor’s final payment has been amicably settled and payment is being processed. 10. Contract 3: The package has been substantially completed and under the defects liability period of the last section. 11. Contract 4 and the realignment section. The package has been substantially completed and under the defects liability period of the last section.

12. Contract 5-I and 5-II: these two contracts have had a history of slow progress and were expected to spill beyond the loan closing date, however they have shown improved progress but not good enough to be completed on time. . Contract 5-I achieved 63%, an increase by 10% since the last mission and 5-II achieved 92% an increase by 19%. At this pace, contract 5-2 is set to complete the works by December 31, 2017, while Contract 5-I will likely run for another one year. 13. Contract 6-I and 6-II: implemented by the same contractor, both contracts have been completed on December 16 and December 31, 2016 respectively, well ahead of the revised completion dates. RIDC and the supervision consultant need to follow up the rectification of the defects identified at the provisional acceptance of the works before the final taking over of the entire works 14. Contract 7: new bridge works has been substantially completed as of the current mission 59% in the last mission to about 100% in this mission- quite an impressive progress. Some defective works have been observed and communicated to RIDC/contractor for immediate rectification. 15. Contract 7 road upgrading work has been substantially completed and taken over 3 years ago. 16. Contract 8 has been substantially completed and already taken over 2 years ago. Payment was suspended on account of some surface cracking observed in few stretches and difference of opinion on final quantities between the CSC/RIDC and the Contractor. The two parties were engaged in amicable settlement and agreed on most of the outstanding claims, with a few still under discussion. 17. Contract 9 has been substantially completed as of the current mission 98% in the last mission to 100% in this mission. RIDC and the supervision consultant need to follow up the rectification of the defects identified at the provisional acceptance of the works before the final taking over of the entire works 18. Contract 10 completed 3 years ago and all pending claims have been settled.

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

Table: update of progress of civil works

Incre Orig Fin. Phy % Phy. % Fin. % Phy. ase Cont. Rev Original Rev Date Prog Progre Progres Progre Progre since Price Cont Commenc Date of of June ss - s- Package ss- ss- the (Rs price (Rs ement Completio Completio 2017 June Decem June June last million million) Date n n Rs. 2017 ber 2017 2017 missi ) mil. Rs. Mil 2016 on

(10=9/ -1 -2 -3 -4 -5 -6 -7 (8=7/3 -9 3) ) Phase I works

1 1265.0 1327.0 8-May-08 7-Nov-10 31-Dec-14 1327.0 100.0% 1327.0 100% 100% 0% 1-Bridge 659.7 597.9 21-Sep-14 30-Jun-16 30-Jun-17 597.9 100.0% 597.9 100% 79% 21% 2 979.5 1164.5 6-May-08 13-Nov-10 12-Dec-12 1164.5 100.0% 1164.5 100% 100% 0% 3 1039.4 1475.8 14-May-08 13-Feb-11 31-Oct-14 1475.8 100.0% 1475.8 100% 100% 0% 4 335.0 438.9 10-May-08 9-Feb-10 31-Mar-14 438.9 100.0% 438.9 100% 100% 0% 4 By pass) 58.7 55.3 16-Sep-14 31-Oct-15 31-Dec-15 55.3 100.0% 55.3 100% 100% 0% 5 2282.5 782.6 5-Jun-08 4-Jun-11 31-Jan-13 782.6 100.0% 782.6 100% 100% 0% 5-I 1794.4 2177.8 1-Jan-14 30-Jun-16 30-Jun-16 1378.2 63.3% 1378.2 63% 47% 16% 5-II 1433.2 1861.0 23-Dec-13 22-Jun-16 22-Jun-16 1716.0 92.2% 1716.0 92% 79% 13% Phase II works 6 938.5 32.2 5-Aug-11 14-Feb-14 32.2 100.0% 32.2 100% 100% 0% 6-I 636.7 716.7 1-Mar-14 29-Feb-16 16-Dec-16 716.7 100.0% 716.7 100% 84% 16% 6--II 947.8 937.1 10-Jan-14 9-Jan-16 30-Dec-16 937.1 100.0% 937.1 100% 78% 22% 7 626.8 698.5 8-Mar-10 7-Sep-11 15-Jul-12 698.5 100.0% 698.5 100% 100% 0% 7-Bridge 92.9 141.2 15-Dec-14 14-Sep-16 30-Jun-17 141.2 100.0% 141.2 100% 59% 41% 8 1422.2 2030.0 26-Oct-09 25-Jul-12 29-Mar-14 2030.0 100.0% 2030.0 100% 100% 0% 30-May- 9 430.2 554.0 1-Dec-09 31-Oct-15 554.0 100.0% 554.0 100% 98% 2% 11 10 560.7 518.1 8-Mar-10 7-Dec-11 17-Sep-12 518.1 100.0% 518.1 100% 100% 0%

Cumulative Progress 94% 86% 8%

Component– 2: Core Network Maintenance and Management (Moderately Satisfactory): 19. The rating for this component is maintained Moderately Satisfactory. All the planned periodic maintenance works – 74 road segments with a total length of 1483 km have been completed. Four PBMC contracts with a total length of 347 km have been awarded out of planned five, cancelling one the specific roads have been re-classified as NH. The works on all is underway and there has been a great deal of excitement within PWD in witnessing a better performance of maintenance by moving away from the traditional input based contracting to output performance based model. This has even aroused a huge appetite to roll it out to the wider network through the Government financed maintenance program. 20. On the institutional development front, impressive results have been achieved in (i) developing multi-sectoral road accident database management system, (ii) developing a web based project management

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017 system, (iii) studying ways and implementing inefficient gang labor usage on maintenance activities. However, PWD did not achieve two important reforms: namely (a) graduating RIDC from a project management unit to a core road network manager, (ii) establishing a sustainable road maintenance funding mechanism. The brief update of the status of each activity under Component 2 is highlighted as follows. 21. Periodic maintenance: All the planned 1483 km periodic maintenance works phased in three tranches - Tranche I- 532 km, Tranche II- 517 km works and Tranche III 434 km have been procured and completed. 22. Long Term Performance Based Maintenance Contract (LTPBMC). Four packages (347 km out of planned 446 km) in Mandi, Hamirpur, Kangra and Shimla zones have been awarded. The remaining length planned for LTPBMC have recently been reclassified as NH and taken out of PWD’s mandate hence no further contracts will be processed under the loan. The maintenance activities have been going on as planned where in all the three contracts the initial rectification works have been completed, and routine maintenance is being taken care of. 23. Black spot improvement. 31 blackspot improvement works have been packaged in 15 contract and awarded. As of the current mission all works have been completed successfully, initial observation of accidents revealed that there are less fatalities and severe injuries at these blackspots. 24. Road Accident Database Management System (RADMS). The RADMS is now in place and being implemented in all districts which is going well. An Accident Management Cell (ADMC) is functioning well from the office of the Director General of police. All local police stations have been equipped with android tablets to capture the accident data at the scene. The server is now hosted in the state’s department data center. The possibility of cloud hosting is under consideration.

Table Road accident records

Number of fatalities due to road Total number of registered Death rate on HP state highways accidents on state highways during the Year vehicles [as on March of (number of deaths involved in year [from 1st July of previous year to the year] traffic accidents/1,000 vehicles) 30 June of the current year] 2009 522,983 281 0.54 2010 583,673 286 0.49 2011 621,714 322 0.52 2012 766,959 244 0.32 2013 974563 241 0.24 2014 974563 271 0.278 2015 1175510 300 0.3 2016 1326742 239 0.18

25. Road Maintenance Financing and Core Road Network Management. A year ago PWD shared with the Bank team a draft road policy which included road maintenance funding. Further PWD agreed to carry out an assessment of the existing maintenance situation and funding mechanism through an independent consultant with the objective of identifying the scope for improvements and eventual implementation. In this mission also PWD maintained that the existing maintenance funding mechanism and sources are quite adequate and sustainable. PWD management continued to argue that the existing maintenance system and funding mechanism is adequate without demonstrating its sustainability. Further the department strengthens its argument by providing maintenance budget allocations which has doubled (see table below) over the last ten years.

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

Table Maintenance budget and expenditure

Year-wise Details of Funds Available/Expenditure incurred for Repair & Maintenance /Salary (Rs. x1,00,00,000)

Year Amount for Additional Total Total Expenditure for Maintenance Work Daily HP PWD Total % of Maintenance Grant-in- of Roads including Salary Charged Waged Salary Expenditure maintenance of Roads as Aid for Gang Labor for expenditure per Finance Maintenance Labor Maintenance w.r.t. Finance Commission of Roads as of Roads Commission Norms per Finance excluding norms Commission Salary Norms

1 2 3 4=(2)+ (3) 5 6 7 8 9 = (5)- 10 = (6)-(7)-(8) [(9)/(4)]*100 Plan Non Total Plan 2006- 307.39 65.41 372.8 3.1 478.18 481.28 253.31 - 75.25 152.72 41 07 2007- 322.76 65.41 388.17 5.09 671.97 677.06 417.19 - 90.89 168.98 43.5 08 2008- 338.89 65.41 404.3 0 685.58 685.58 394.2 - 90.2 201.18 49.8 09 2009- 355.84 65.41 421.25 132.22 756.31 888.53 456.74 - 106.84 324.95 77.1 10 2010- 373.63 65.41 439.04 108.02 957.53 1065.55 559.24 - 132.99 373.32 85 11 2011- 392.314 89.33 481.64 50.05 1157.45 1207.5 692.13 20.68 170.06 345.31 67.4 12 Dec- 411.93 102.36 514.29 36.66 1123.55 1160.21 650.32 21.89 146.8 341.2 66.3 13 13-14 432.53 115 547.53 51.78 1047.81 1099.59 611.87 20.46 145.27 321.99 58.8

14-15 454.15 130 584.15 37.62 1326.27 1363.89 748.64 27.26 205.01 382.98 65.5

15- 476.86 476.86 24.66 1289.33 1313.99 782.01 27.27 211.18 293.53 61.55 16* 16- 500.76 500.76 19.28 1486.07 1505.33 902.1 27.27 239.05 336.91 67.27% 17* 17- 525.8 525.8 31.56 1499.24 1530.8 932.89 19.72 214.37 363.82 69.19% 18*

26. RIDC’s expanded mandate. The GoHP issued a notification to all concerned that RIDC is entrusted to manage the state’s core road network. PWD thereafter was supposed to prepare an organization manual for RIDC’s expanded mandate including structures, functions, responsibilities, workflows, etc. and this was supposed to be completed in 2015, but it was never the case. The mission over many missions cautioned PWD that failing on this task would jeopardize a sustainable maintenance management of the road network. While PWD continues to promise the reform would be done, the Bank team felt that PWD seems to be disinterested in the reform. PWD informed the mission that a substantial size of the core road network (18 State Highways 1466.300 Km and 53 Major District Roads 2144.915 Km) is now reclassified as NH and are to be transferred to National Highways Authority, and not so much of the network left to be transferred to RIDC.

27. Project Management System: the consultant hired to develop electronic based project management system, has completed the system development stage, and the data entry task had started by contractors of active packages. Initially the data collection from each package took longer, but slowly the system was partially implemented in a few packages with not full-fledged but promising results. Until the system is fully

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017 understood and well mainstreamed, the mission suggested to limit the data collection to the essentials while keeping the flexibility of the system for future expansion as capacity increases.

28. Construction Supervision. With a weak capacity at the start of the project, the role of a CSC was supposed to be critical in implementing the civil works in compliance with the contract and the Bank’s fiduciary and safeguard requirements. The mission observed that the performance of the construction supervision consultants (CSC) has been below expectations as evidenced by the poor contract management practices often observed during Bank missions. And there have been only incremental improvements to the rectification suggested in every mission. Some of the drawbacks were: • failing to ensure/enforce each contract to have a resource based work program (WP), which is a key to manage any civil works contract. As the local contractors proved to be weak in this aspect, the CSC did not go that extra mile to provide them with guidance as appropriate how to produce a realistic work program; • Because of the absence of WP more of than not, contractual communications and instruction, warning, etc. were made on a haphazard manner such communications include: with the Employer and Contractors, informing how ahead or behind the actual work progress is w.r.t to the WP, advise if the WP is no more relevant and its appropriate revision; • Lack of appropriate advise the contractor on the adequacy of its human, equipment, material resources in line with the work program as revised from time to time; • Lack of timely response to any contractor’s requests for possible variation instruction when required, process variations including timely issuing the instruction and determining rates for new items, issuing designs and drawings in a reasonable period of time; • Failure to ensuring the deployment of qualified staff in the CSC’s team; • suboptimal quality progress report focusing merely on physical and financial progress in lieu of the overall contract management, including social, environmental, safety, and construction quality, claims, etc. in a succinct but informative manner;

Environmental Management 29. With the completion of pavement works, the overall compliance with the environmental management has significantly improved in the ongoing contracts. There are however areas which still require proper attention by all the parties in the contract, Contractor, CSC and RIDC. These include tiding up debris in the completed works of the bridge projects, taking care of electric cables running on the surface which pose a risk for workers safety, appropriate resources to remove snow and mud for smooth traffic flow, etc..

Social Safeguards 30. The project has been closed on satisfactory note for the implementation of social safeguards – all the entitlements including compensation was disbursed except for those under litigation; through design revisions about 342 structures were saved; all the CPRs were relocated; impact evaluation study informs satisfaction levels of the majority surveyed on the implementation of RAP and achieving project R&R objectives. However, a few actions in the short term are pending to be completed and these will be followed up in the follow up project. Upon closing the project, the following action points were discussed and agreed to be completed. Suggested Action Points - Short Term

(i) Disburse the R&R assistance for the 4 land owners acquired recently in package 5 (1); (ii) Complete LA of about 200 sqm which was arisen due to land slide on account of slope cutting;

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

(iii) Revise and finalize the draft RAP evaluation report; (iv) Repair and restore the properties affected on account of construction works in packages 5(1) and 5

Suggested Action Points - Long Term

(i) Institutionalize and make functional the LA and R&R office at HPRIDC by filling in vacant positions and providing required logistic support; Recruit Kanungo (Supervising Revenue Officer) and Patwari at each PWD Divisional Office; (ii) Draw and implement training program on LA and R&R to the critical staff through exposure visits and through deputing to Training Institutes; (iii) Develop the E – PMIS on LA and R&R; (iv) Mainstream providing wayside amenities provisions into DPRs; (v) Establish RoW for the state road network physically and digitize the records (see Annex for details).

ICT systems 31. Project management Consultant (for ICT infrastructure): This has been one of the institutional development identified to modernize PWD/RIDC. M/S Wipro Ltd. were appointed as Project Management Consultant for computerization of HPRIDC & HPPWD on March 04, 2015. The consultant helped to define the system architecture and requirements, based on which RFPs have been prepared and procurement of the system integrator has been launched. Proposals have been received but none of the participants could not meet the technical evaluation requirements, which triggered cancellation of the selection process. The process has taken too long, RIDC in the coming months need to investigate the reason for unsuccessful selection process and move forward on the section of the system integrator.

Procurement 32. Procurement performance during the review period is rated as Moderately Satisfactory. 33. Civil Works: All the packages of civil works have been awarded. Since the last mission, the progress of civil works have been improved, with overall progress of 8%, all comes from the 4 contracts, two bridges and two roads. 34. Consultancy Services: The selection of consultant for feasibility of about 2000 kms and detailed engineering / safeguard assessment of about 500 kms was unsuccessful, and RIDC is considering this activity be financed under a PPA related to the follow-on project, hence dropped from HPSRP 1. The contract for the Consultancy Services for carrying out Terminal Impact Evaluation of the implementation of RAP for all road upgradation packages of HPSRP has been awarded, and the consultant presented its final report before the mission. The procurement of the system integrator for ICT infrastructure services has been launched, proposals will be received on 9th February 2017. all the firms failed to qualify the technical evaluation requirements, hence the selection was cancelled. It was suggested that the government would continue with the initiative financed from its own sources.

Financial Management

35. Financial Management performance is rated Moderately Satisfactory. Loan under IBRD 48600 is fully disbursed and the disbursement record was closed on October 31, 2016. Disbursement from the World Bank as on June 31, 2017 for the additional financing IBRD 81990 is USD 25.97 million, which represents 42% of the original signed loan of USD 61.7 million and 55.61% of the loan after cancellation, i.e. USD

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

46.7 million. The closing date of the additional financing falls on June 30, 2017. It is expected that entire loan will be disbursed by the closing date, after the cancellation of USD 15 million. The internal audit function is working satisfactorily with reports till quarter ending March 31, 2017 have been shared with the Bank. The external audit report for FY 2015-16 was submitted in time and is unqualified.

Project Costs, Expenditure and Budget

36. Expenditure as of June 3, 2017 was Rs 1974.49. This time no forecast was made as the project loan was closing in a month. The expenditure made and projected expenditure is presented below.

Table 3 Project Costs, Expenditure and Budget

Estimated Cost at Estimated Cost at Expenditure up to Appraisal (2007) 20125 (US$) June 30, 2017 (Crore) (US$) Upgrading Works 211.18 276.78 1515.17 Utility Shifting Tree Cutting, 1.73 7.99 18.92 Afforestation Periodic Maintenance Works, BIP, 55.97 55.97 231.10 OPRC Goods 1.31 1.31 6.90 Consultancy Services and Trainings 18.51 18.51 111.58 Land acquisition 12.42 35.72 182.04 R&R 2.14 3.87 5.71 Incremental cost 0.61 0.61 3.07 TOTAL 303.87 400.76 2074.49

Project Management 37. RIDC Staffing. RIDC has been doing reasonably well in terms of discharging its responsibilities, this was despite the corporation has been operating at 50-60% staff in the staffing plan. Now that most contracts have been completed, it is inevitable to settle outstanding disputes, RIDC management staff need to be harnessed with dispute resolution skills including amicable settlement and arbitrations. 38. Project Monitoring and Reporting. RIDC has been using the agreed formats (8 excel-based reports agreed at the project appraisal stage) to monitor and report project progress. The monitoring of project indicators has been reasonable with some flaws on methodology on measuring on a few indicators, which at later stage was rectified. This includes the increased speed on the completed roads. The CSC produces a quarterly progress report for the civil works, excluding maintenance. There hasn’t been a focus on mainstreaming other project activities in the consultant’s report such as road safety, environmental and social safeguard management, etc., except the information captured in the above said excel-based tables. 39. Performance Monitoring Indicators (PMI).The mission and RIDC jointly reviewed the PMIs and updated the value of PMI indicators based on available information. The mission noted that for one of the outcome indicators to measure increase in average speed in completed roads, RIDC was able to establish data on baseline and current speed using the consultant hired for RMS development. The second user

5 Estimate revised in 2012 led to additional loan of US$61.7million 13

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017 satisfaction survey has been completed and the consultant made a presentation during the mission. The status of achievement of the performance indicators is presented in Annex 1. 40. Compliance with Loan Covenants. The status of compliance of the Project and Loan Agreement covenants is in Annex 2. All covenants are in compliance. 41. Implementation Completion and Results Report (ICR). The mission was accompanied by the ICR team leader and a consultant author, who discussed the scope of the Bank’s ICR and the reciprocal Borrower’s project completion report. An ICR mission with a stakeholders’ workshop was scheduled for October 2017. 42. Compiling best practices of the project: the project has demonstrated various good practices during its implementation. The Bank team suggests to PWD to start compiling the information including slope stabilization through bio-engineering techniques. The project has also demonstrated good social and environmental management practices that can be showcased to other projects to replicate, and this may also be documented in print and electronic media.

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

IV. ANNEXES

Annex 1 Progress of achievement of performance indicators Annex 2 Status of compliance of legal covenants Annex 3 Status of Actions/Activities Agreed During the Last Mission) Annex 4 Actions/Activities Agreed During this Mission (to be reviewed during next mission) Annex 5 People Met by the Mission Annex 6 Mission Comments on Upgrading Works Annex 7 Mission Comments on Maintenance Works Annex 8 Details of Social Issues and Agreed Actions Annex 9 Details of Environmental Issues and Agreed Actions Annex 10 Financial Management Issues and Actions Annex 11 Status of Upgrading Works Annex 12 Status of Maintenance Works Annex 13 Status of all Consultancy Services Annex 14 Status of Encumbrance in Upgrading Roads Annex-15 Computerization of PWD

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

Annex 1 Progress of Achievement of Performance Indicators

Target Value Value/Status of performance Outcome Indicators Baseline by indicator completion reduced of transportation cost as measured by Rs 10.71 Rs 9.78/km VOC savings6 10.5/km % of the entire core network (~4,000 km) in 40% 10% 10.40% poor condition Average speeds on the WB financed roads, 29 km/hr 36 km/hr, which received upgrading, predicted using 25% for 38.4 km 38% HDM-4, (% increase) completed stretches Death rate on HP state highways (number of 27 deaths involved in traffic accidents/1,000 Revised 2.0 0.21 veh) value 0.54 Level of road user satisfaction with the entire 1.5 3.0 3.10 core network, index 1-5 Component 1 (Core Network Upgrading): % of target roads (~ 447 km) of core network 0% 100% 79.4% completed upgrading % of target roads (~447 km) in excellent 0% 95% 99 % condition (no cracking; IRI < 3.5) % of fiscal year contracts let within 120 days 0% 100% In 2016-17 of bidding (after deadline of bids received) - Overall: 100% - Upgrading works procurement: Nil. Consultancies: Two no. - (i) RUSS & Speed Survey : 100% - (ii) Terminal Impact Evaluation of R&R component: 100% Contracts: Goods  (i) Axle weigh pads: 100%  (ii) ROMDAS- 100%

% of PAPs paid compensation and provided 0% 100% for Land compensation progress: with R&R assistance Phase II Phase 1=100%, Phase 2 = 100%, R&R assistance progress 100% % survival rate for trees planted under the 0% 50% Periodic Maintenance Works = Project 29%. Compensatory Afforestation of Upgradation works = 71.08%

6 New indicator agreed in the January 2017 mission 7 This baseline was found to be irrelevant as it relates to accidents recorded in the entire road network, while it should have been only for the state highways. The baseline was corrected accordingly 16

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

% of road users and project construction 10% 50% Data was not available worker aware of correct ways of HIV/AIDS prevention and transmission % of target roads (~2,000 km) of core 0% 100% 100% (1484 Km road network network receiving periodic maintenance received periodic renewal of targeted 1484 Km) % of performance-based contract packages 0% 100% 100% All the 4 contracts have executed on target roads (~300 km) been awarded and in progress. Total expenditure till November 30, 2016 is INR 37.950 Crore against awarded amount of INR 87.11 Crore. % of 20 target locations receiving black spot 0 100% 125%- 25 BS locations have treatment been improved Full operation of stable road financing Nil No GoR believes the existing mechanism for the core network (~4,000 km) financing sources and size is adequate and sustainable. This was however without proper substantiations Reduction in share of permanent gang labor 75% 50% 62% costs in total spending on routine and emergency works Setting up of Quality Assurance System Nil RIDC (incl. 3 Completed CMUs) completed ISO registration Development of Accounting Policies and Nil Recommenda RMMS developed and Annual Procedures Relating to Road Assets tion maintenance plans are being implemented prepared using RMMS system. However, RMS consultancy services has been awarded to the Consultant HIMS-SATRA (JV) to develop the policies & procedures relating to Road Assets. Rolling annual training plan prepared, Nil Yes Completed implemented and evaluated

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

Annex 2 Status of Compliance of Legal Covenants

Date Description of Covenant Status Due GoHP shall maintain the Board of Directors of the RIDC with composition and powers sufficient Recurrent C to function and direct the carrying out of the Project in a timely and effective manner. GoHP shall maintain a dedicated team of suitably qualified staff in RIDC both at HQ and in at Recurrent C least 3 dedicated field divisions, with sufficient resources RIDC shall prepare EMPs and RAP for Phase II roads in accordance with Operations Manual and 4/5/2009 C R&R policy, satisfactory to the Bank RIDC shall implement the Project in accordance with Operations Manual, EMPs, RAPs, Recurrent C Financial Management Manual GoHP shall transfer Loan Proceeds to RIDC within 3 weeks of receiving them from GOI Recurrent C RIDC shall prepare and make public by March 31 of each year starting from 2008 an annual Road Maintenance Plan for core road network for following FY and implement it in a timely & Recurrent C efficient manner RIDC shall prepare and make public by April 30 of each year starting from 2008 a core road network condition and traffic survey report and a core road network maintenance achievement Recurrent C report for the proceeding FY GoHP shall have the financial statements audited by acceptable auditors and furnish the Bank the Recurrent C audited reports no later than 6 months after the closing date for the statements RIDC shall maintain a financial management system in accordance with agreed requirements Recurrent C GOI shall make Loan proceeds available to GoHP according to the agreed arrangements Recurrent C RIDC shall prepare and furnish to the Bank quarterly Project Reports including agreed Recurrent C performance monitoring indicators no later than 45 days after end of each quarter All goods, works and services to be financed out of the Loan shall be procured in accordance Recurrent C with the provisions of the Project Agreement Prepare project reports for each fiscal year quarter and submit to Bank not later than 45 days after Recurrent C the end of the period. Prepare and furnish to the Bank (a) by Nov 15, 2009, a comprehensive Project progress report satisfactory to the Bank; (b) two(2) impact assessment reports of the implementation of the RAP, C the first by May 31, 2009 and the second within 120 days of completion of all resettlement under the project

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

Annex 3 Status of Project Implementation Action/Activities (agreed during the last Mission – January 2017) S. No Item Action Timeline Status Component 1- Core Network Improvement Component 1. Package 1 Ensure completion as per the revised time June 30, 2017 completed bridges schedule, June 30, 2017 2. Package 5-I Ramp up the resource capacity of bridge immediately construction works Ensure the acquisition of aggregates for immediately pavement, which is critical for the completion of road works Complete Road works June 30, 2017 delayed Complete bridge works June 30, 2017 Delayed Improve workers camp facilities Immediately Complied with 3. Package 5-II Complete Road works June 30, 2017 Delayed Complete bridge works June 30, 2017 Delayed Improve workers camp facilities Immediately Complied 4. Package 6-I Strict implementation of the defects immediately Reported to have identified at provisional acceptance been substantially complied with 5. Package 6-II Strict implementation of the defects immediately -ditto- identified at provisional acceptance

Component 2 - Core Network Maintenance and Management 6. Road PWD to submit a report on the March 31, 2017 Not done Maintenance sustainability of the existing maintenance Financing funding mechanism/or proposal for a new Mechanism one.

7. RIDC’s PWD to submit a report on the adequacy of March 31, 2017 Not done expanded PWD to continue managing the entire road mandate network in lieu of transferring the core road network to RIDC 8. Road accident PWD, Transport and HD need to start Immediately In progress database entering crash related data assigned to management them system

9. Road Appropriate budget provisioning for March 2017 Done Management expenses that continue beyond the June System 2017 10. Developing ICT Appropriate budget provisioning for March 2017 Done infrastructure expenses that continue beyond the June and automated 2017 systems for PWD

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

Annex 4 Detailed Actions/Activities Agreed during this Mission – January 2017 (to be reviewed during next mission)

N/A

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

Annex 5 List of Persons met by the Mission

S. Name Designation/ Address No. Govt. of Himachal Pradesh 1. Mr. Narinder Chauhan IAS Additional Chief Secretary , PWD, GoHP RIDC 2. Mr. R.K. Verma Chief Engineer – cum – Project Director, RIDC, Shimla 3. Mr. P.K. Sharma Superintending Engineer, RIDC, Shimla 4. Mr. L.K. Chauhan Social Development Officer, HPRIDC, Shimla 5. Mr. Kulbir Singh Thakur E.E. (CM), RIDC, Shimla 6. Mr. R.S. Chandel E.E. (P), RIDC, Shimla 7. Mr. Aparna Roheala E.E. (T&D) RIDC, Shimla 8. Mr. S.K. Katoch E.E. (CMU) RIDC, Hamirpur 9. Mr. Dinesh Dhiman E.E. (CMU) RIDC, Una 10. Mr. Rajeshwar Singh Jaswal E.E. (CMU) RIDC, Shimla 11. Mr. Parvesh Sharma E.E. (Hort.) RIDC, Shimla 12. Mr. Lalit Kumar Pandey Nodal Officer (IT), HPPWD 13. Mr. D. K. Nag Nodal Environmental Officer 14. Mr. Arvind Lakhanpal A.E. (CMU), RIDC, Hamirpur 15. Mr. Rakesh Sharma A.E. (P), RIDC, Shimla 16. Mr. Shakti Negi A.E. (CMU), RIDC, Shimla 17. Mr. Arun Lakhanpal J.E. (IT), SRP, HPRIDC, Shimla 18. Mr. Neter Prakash J.E., CMU Shimla HPPWD 19. Mr. Ashok Kumar Chauhan Chief Engineer, HPPWD, Shimla RIDC (Finance) 20. Mr. Virender Bhardwaj Manager (Fin. & Accounts), RIDC Shimla The Louis Berger Group Inc. 21. Mr. Andrew Bogle Team Leader, CSC, LBG 22. Mr. Narpati Katel R.E. (Pkg.-5) 23. Mr. Anoop Kumar R.E. (Pkg. – 3, 4 & 6), LBG 24. Mr. Sanjeev Kumar Environmental Officer M/S M.G. Contractors Limited (Package ICB-6 and NCB-6) 25. Mr. Pramod Kumar Sharma M/S C&C Constructions, India 26. Mr. P.S. Thukral GM (Projects), C&C Construction 27. Mr. AshwaniDogra Project Manager (Pkg-5/ICB), C&C Construction 28. Mr. Tarun Prasad Project Manager (Pkg-5/NCB), C&C Construction M/S HIMS-SATRA Pvt. Ltd, 29. Mr. Raj Mallela Team Leader, HIMS-SATRA Limited 30. Mr. Rajshekhar Deputy Team Leader, HIMS-SATRA Limited M/S TRL Limited, UK Consultant – RADMS 31. Mr. Ratheesh Associate Consultant, TRL M/S Wipro Limited 32. Ms. Sagrika Pathania Consultant (ICT Development) M/S Royal Haskoning Consulting Pvt. DHV Ltd. 31. Dr. Samir Rai RHDHV

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

Annex 6

Detailed Mission Comments on Upgrading Works

The Component 1 (Core Network Upgrading) of the project envisages upgrading of 437 km of roads in the Core Road Network (CRN). RIDC initially started implementing this component through 10 contract packages in two phases. However, in the course of implementation the following changes were made: (a) packages 5 and 6 performed very poorly and were terminated, and later each split into two contracts (5-I, 5- II, 6-I and 6-II) and retendered; (b) an amicable agreement between RIDC and the contractor led to the removal of the bridge works from contract 1 and tendered separately; and (c) a missing bridge link in contract 7 from the original contract, was included in the project and tendered separately; raising the total number of contracts to 14 (7in phase-I and 7 in Phase-II).

Table: update of progress of civil works

(10=9/ -1 -2 -3 -4 -5 -6 -7 (8=7/3 -9 3) ) Phase I works

Cumulative Progress 94% 86% 8%

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

Phase 1 Works: the seven civil works contract packages of phase 1 upgrading works, which constitute a total length of 232 km, were awarded at a total contract price of Rs 7495 million. Five out of the seven contracts 1, 1-bridge, 2, 3, and 4 have been completed in phase I. The ongoing packages, Package 5-I and 5- II will likely need another six months and one year respectively to complete.

Phase 2 Works: the seven civil works contracts of phase 2 upgrading works, which constitute a total length of 203 km, were awarded at a total contract price of Rs 4711 million. All of the packages stand complete by this mission.

The mission, along with the officials of RIDC, the respective PMUs and the Supervision Consultants, visited packages 1-B, 5(I) and 5 (II) and then discussed the progress of Works with the respective contractors and the PIU team.

Site visits were undertaken on all project roads, upgrading as well as performance-based maintenance contracts, during the mission duration. A brief synopsis of comments and observations which emerged during these visits and discussions are encapsulated here below.

The roads visited during this mission can be broadly categorised as (i) completed upgrading roads which have been taken over by RIDC/PWD and the Defects Liability Period (DLP) is also over – Package-1: Mehatpur-Una-Amb (about 45km) Package-2: Una-Barsar (about 45km) Package-3: Barsar-Jahu (about 45km) Package-4: Jahu-Kalkhar (about 15km) Package-7: Ranital-Kotla (about 39km) Package-8: Kumarhatti-Nahan (about 72km) Package-10: Bhawarna-Lambagaon (Jungadevi) (about 26km)

(ii) completed upgrading roads where work is completed but DLP is still not over – Package-6: Sarkaghat-Jahu-Ghumarwin (about 41km)-later divided into two contracts of 6(I) and 6(II) Package-9: Draman-Sihunta (about 24km)

(iii) ongoing upgrading road works- Package-5 [now further divided as 5(I) and 5(II)] (about 80km) Package-7(B) – comprising additional bridge from in road section of Package 7 Package-1(B) – comprising bridges which were removed from original Package 1

(iv) ongoing performance-based maintenance contracts (PBMC) – Dhalli-Taptapani road section Taptapani-Karsog-Dadour road section Lambagaon-Bhawarna/Thakurdwara-Alampur/Ranital-Kotla/and couple more contract sections.

3. General observations on completed roads [categories (i) and (ii) above]: (i) The local residents refer to the WB implemented roads as “super highways” and wish that the PWD/RIDC undertake more such roads – in fact they rate these SH as better than even the NH of the state. In general, in spite of 3-4 years being the duration after taking over in category-(i) roads, the overall riding quality is good. Most road sections the travel time has reduced to half or atleast 75% of the original travel times- This can be attributed to wider and better quality roads. However, there seems to be mixed feelings about road safety and accidents. Some say that the roads are now safer

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

while many others feel that the road accidents have increased due to increased speeds and reckless driving. (ii) All the completed upgrading component roads have been notified to be taken over by MoRTH as NH after being upgraded. However only Package 8 and Package 1 have actually been taken over MoRTH and maintenance being now undertaken by the NH wing of PWD. The rest of the roads are being maintained by the zonal wings of PWD. (iii) When going on these roads it was seen that • Commercial and business activities have sprung up with better opportunities for the local villagers and roadside businesses. • Debris dumping yards are being used for economic activities in some places while in other places they are being used as helipads, sports stadium, school grounds etc; • Crocodile cracks, bleeding, rutting and potholes have started appearing on the road sections and need immediate attention towards sealing and repairs. • One could observe shoulder dips/depression in many sections- shoulder maintenance is always a neglected area in roads and this needs to be corrected as soon as possible. Especially on narrow single/intermediate lane roads the importance of good shoulders is immense. • Some packages like 4 and 9 are still experiencing a lot of road slips and landslides and this is creating problems to the quality of road. • Many places the guardrails and parapet walls have been broken or bent and need immediate repairs or replacement. • Another area of neglect is debris lying on the valley side of many hill roads and needs to be cleared before the ensuing monsoon season to prevent water stagnation on the road leading to distress to users and the road structure. • Longitudinal drains need cleaning in some of the roads. • Because of the age of the road since completion, the centreline and edge markings wherever originally done have started fading and have also disappeared in some stretches. Driving in foggy weather will be more hazardous now if these are left as it is. • Similarly, the road signage boards in some places are missing – probably stolen by the local residents. However, these need to be replaced as soon as possible to ensure better and safer roads. • The contractor on package 9 is absconding after 6-7 months of the DLP and the road has just started being maintained by the local PWD even within the DLP. iv) On the roads where the DLP still remains and the contractor has presence in the field, the RIDC/PWD engineers should ensure proper taking over in line with the punch list or defect list. At the same time regular maintenance on these roads should be undertaken by the PWD since that will not be the responsibility of the contractor under the DLP. v) Some of the upgrading roads like Packages 7 and 10 are under PBMCs now and their conditions are better in terms of culvert/drain clearance, landslide and debris clearance and attendance to shoulder and pavement maintenance. This will be discussed more in detail under the PBMC sections below.

4. The packages 1(B), 7(B), 5(I) and 5(II) fall under the category where the upgrading road and bridge works have not yet been completed. Of these, the bridge packages are nearly completed and expected to achieve substantial completion by June 30, 2017 and taken over for DLP. The road packages 5(I) and 5(II) will take a lot more time for substantial completion – say anywhere between 6-12 months more depending upon the contractors’ intent, work planning and the vagaries of monsoons and snowfall this year. Packages 5(I) and 5(II) have been discussed in greater detail below – a) Package 5-I, Theog- Kotkhai- Kharapatthar, Km 0.000 to Km 48.000, Contractor: C & C Construction limited. The scope of the total works under this project is about 39 km in a stretch of 48 km of original contract; as some of the works have been executed under the terminated previous contract. The physical

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017 progress during the mission was reported 63% as per the revised scope. This is an increase of 23% since the last Bank mission in January 2017. This is not good enough given 33% of the work to be completed by June 30, 2017 – the current completion date and the Bank Loan closing date. The main points observed by the Bank mission on this contract are • Absence of longer term planning in the project office continues to hold back the potential to optimally use resources for a better pace. The contract is moving on what seems to be only a haphazard type of planning. • In about 4 km the lower pavement structural layers are not in place – like DBM, WMM, GSB etc. • The DBM in many stretches have been laid quite some time back (in most places more than a year back). The current quality of DBM on the road due to wear and tear as well as poor workmanship in some places will need rectification and repair before laying of the wearing course of BC. • There has been no wearing course of BC laid yet and this is not an acceptable situation keeping in mind the rectifications required on the DBM layer as well as the monsoon rains expected by end of June/early July 2017. The sub-layers below the DBM might get affected if the proper crack sealing and other rectification works are not undertaken in a timely manner as soon as possible • The progress on structural works pertaining to bridges, retaining walls, gabions etc is also very slow. Except one minor bridge all other major and minor bridges have not even achieved sub-structure completion. Works have not commenced on about 28 culverts and works are in progress in 50 culverts. • The quality/workmanship of concreting is abysmally poor in a couple of major bridges. The retaining walls breast walls have dysfunctional weep holes and the finishing of the concrete is poor. The finishing of the drains are not aligned and many times in zig-zag alignment. • Many places the guard rails/crash barriers have not been anchored properly to be effective. The original design/drawings need to be referred and the changes incorporated wherever necessary. • The Bank team was informed that as Contract 5-II is winding up earthworks, it would make resources that will be redundant to contract 5-1with the aim of boosting the latter’s capacity. About 8 km of the contract 5-I have been reportedly handed over to the project manager of Contract 5-II for execution.

Despite the contractor’s assertions that the contract would be substantially completed by Dec 31, 2017, it seems obvious that with the intervening monsoons and increased traffic during the apple harvesting seasons this will not be possible. Mission requested the CSC and the RIDC to request for the resource- based progress charts from the contractor to check the veracity of his statement. b) Kharapatthar-Hatkoti-Rohru, Km 48.000 to Km 80.684; Contractor: C & C Construction limited. The contract has shown a marked progress since the mission in January 2017, bringing the total physical progress to 92%. Though the progress is much better than the contract package -I and is also better planned and executed, the progress has fallen very much short of expectations raised during the previous mission. In spite of the best efforts it seems that the road works will not be completed before Aug 31, 2017 at best (with intervening monsoon rains and apple harvesting seasons). The bridge and structural works, as per the contractor/CSC will substantially be completed by October 2017. One major bridge is expected to be completed y December 2017 and another by May 2018 only. Thus this contract will also not achieve completion before the Bank loan closing date of June 30, 2017. The main points observed by the Bank mission on this contract are- • The U-drains with geotextile wrapped perforated pipes seem to be functioning well when the mission observed them during rains at site. The water was not spilling over to the pavement. However, the full functionality of the longitudinal and cross drainage system will be tested during the forthcoming monsoons depending on how well the clogging is prevented in them. • The DBM in many stretches have been laid quite some time back. The distreesed DBM on the road due to wear and tear as well as poor workmanship in some places will need rectification and repair before the wearing course of BC is laid.

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

• There has been only 2km of wearing course of BC laid till date and that too has been done only within the last one week before Bank team’s visit. Though the new BC appears to be well laid but the aggregate and bitumen texture seems to be a bit too smooth. This needs to be checked after about a month and, if need be, the design mix may need to be changed to improve skid resistance. • The progress on structural works pertaining to bridges, retaining/revetment walls, and drains are slower than required and cannot be completed by June 30, 2017. • There is scope for improvement in quality/workmanship of concreting in the structural works of retaining walls and drain alignments. The retaining walls breast walls have dysfunctionl weep holes due to blockages. Though bridge works are of better workmanship/quality the progress is considerably behind schedule. • Many places the guard rails/crash barriers have not been anchored properly to be effective. This needs to be verified with the original provisions in the drawing/designs and bid documents and modified wherever required as per site conditions. • The Bank team was informed that as Contract 5-II has enough aggregates for the DBM/BC works required for itself and the package 5-I if it is required to be shared. Since the same contractor is executing both packages the project managers need to cooperate and work toward early completion of both contracts.

Both contract packages would need to complete cleaning and minimal protection works prior to the monsoons so that the drains and culverts are fully functional. Debris clearance on the valley side needs to be done to enable water to flow laterally into the valley. Protection works need to be strengthened and the structural safety of CD works/foundations etc should be ensured amply before the rains/flash floods. c) Contracts 1(B) and 7(B): The bridges in both these contracts have been substantially completed and expected to be taken over by June 30, 2017 before the closing of loan. As per data received from RIDC/PWD the progress up to May 31, 2017 was about 91% for Package 1(B) and about 98.5% in Package 7(B). • However the workmanship of the pedestals, side restraints and other observable components of the bridge in package 7(B) are not good and have honeycombing and other observable defects. This has been pointed out to the RIDC/PWD and will need to be rectified by the contractor at the earliest. Safety aspects in terms of the existing/old bridge cables need to be taken care of since the clearance may not be sufficient for fully loaded tall trucks especially at night and in foggy conditions. Guardrails/parapet walls and lane marking on approaches need to be completed also.

In Package 1(B) work pertaining to approach road one side including final earthwork and other pavement layers, shoulders, guard rails/parapets and lane marking to be completed. The workmanship of this contractor on concrete observable seems good.

Construction Supervision Consultant Contract (Louis Berger Group): During the site visits to the roads, and subsequent discussions, it was clear that the supervision consultant has a lot to improve to play its role as the Engineer under the contract. First and foremost the consultant is plagued by a frequent turnover of resident engineers and replacing those takes longer and contracts are supervised by the RE from adjacent contracts. Secondly, those REs on site are not conversant with the conditions of the contract and do not seem to manage the contracts accordingly. They are not that helpful in analyzing what the implication of the delays in the contracts, alerting the contractor on the amount of slippages, indication to the contractor and the Employer the details of remedies to be done to catch up progress and other contractual actions to be taken. RIDC needs to work better with the consultant to get proper reports with credible data on costs, progress and claims. The quality of progress reports remains unreliable and inconsistent.

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

Annex 7 Mission Comments on Maintenance Works

The Project includes maintenance of about 2000 km of roads in CRN [Core Road Network] of the State. The works have been taken up in three tranches. Periodic maintenance of 1482.73 km of roads in CRN has been completed. Four packages of total length 347 km have been awarded on long term performance based maintenance contracts and in progress.

Implementation of Tranche-1: Periodic maintenance of 532 km of roads in 25 contract packages has been completed.

Implementation of Tranche-2: 517 km of roads are being improved in tranche-2 maintenance works all of which have been completed.

Implementation of Tranche-3: Periodic maintenance of 435.47 km of roads is taken up in tranche-III in 22 packages. The works have been completed.

Long Term Performance Based Maintenance Contracts (LTPBMC). Four packages (347 km out of planned 425 km) in Mandi, Hamirpur, Kangra and Shimla zones have been awarded and being implemented successfully.

Four sets of roads have been let out under the PBMC type contracts in the 4 zones of HP, namely Shimla (about 34km), Mandi (about 133km), Hamirpur (about 53km) and Kangra (about 126km). These types of contracts were included in the project design to counter the decrease in gang labor within PWD and the lack of machinery and other resources for carrying out ordinary maintenance all year through along with emergency actions if and when there is a cloud burst, snowfall or landslide. These occurrences are fairly normal on the hill roads most parts of the year. Majority of the contract is paid through the service level compliance of the roads w.r.t. riding quality, road safety, shoulder maintenance, drain and culvert clearance, debris clearance due to landslides etc and many more such activities.

Visits to the PBMC sections mentioned in para 2(iv) were only carried out by me through this mission. Most of these contracts were 2-3 years old. It was really encouraging to see the positive response received for these types of contracts from the PWD/RIDC officials, a few members of the public, contractors etc and it seems to be a win-win situation for all. The PWD has decided to take up another 300-400km of new PBMC roads for 4-5 year using their own budget in the current FY and have made provisions for it in the budget. It was emphasized by the Bank team that it will be a good idea to conduct a workshop before the finalization of the DPR and contract documents so that views of the field PWD/RIDC engineers, contractors and any other important stakeholder can be considered for improvement in the second phase of the contracts.

The riding quality on most of the roads were good and it was observed that in most cases the drains were functional and so were the culverts. The patrol maintenance unit was functional and a sample check carried out by me showed that most of the equipment mentioned were being carried by the PMU. The contractor has carried out initial rectification and minnow improvement works in most contracts. The ordinary/routine maintenance was ongoing and the periodic maintenance intervention is being carried out as per contract on stretches in consultation with PWD/RIDC. In package 10, certain repairs where subsidence was taking place frequently has been repaired under this contract giving a big relief to road users. Most of the workers were seen wearing the reflective jackets which was an encouraging sight especially where sufficient sight- distance is not available and in foggy weather.

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

However, in spite of all the good points mentioned above the following observations need to be taken into account when in these contracts – • Shoulder maintenance in some contracts is not up to the mark and need to be improved. On narrow single and intermediate lane roads, the importance of good shoulders is paramount. This is clearly visible where the PM intervention has been done recently and the pavement raised due to the laying of wearing course. • Pavement edge cracks need to be repaired in some stretches; • Wherever PM intervention has been carried out the centerline/edge marking should be provided to enable better visibility and safety; • Even though the contractors are putting in a very good effort in clearing debris during landslide etc from the road, in some cases it is stacked by the road edge on the valley side. IF the material is of suitable quality this can be used to re-roll the shoulders or else it should be properly disposed off. • In some cases, due to landslides the guardrails/parapets have been affected and some of the road signs have been bent. This need to be rectified as soon as possible within the rectification period provided in the contract. • In any new contracts, which come up in the future, it might be a good idea to include more provisions for debris clearance and landslips, providing center/edge line markings, guardrails where originally not provided, cleaning of the bus shelters and any other PWD appurtenances on the roadside. • A common complaint which some of the contractors were making was that other contractors from telephone cable laying/erection or other utility agencies are given permission to work on the road section and these guys damage the road and leave without rehabilitating it. If true and common in HP, this needs to be given a thought during the finalizing of the future PBMC contracts.

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

Annex 8

Detailed Discussions on Social Issues and Agreed Actions

The project has been closed on satisfactory note for the implementation of social safeguards– all the entitlements including compensation was disbursed except for those under litigation; through design revisions about 342 structures were saved; all the CPRs were relocated; impact evaluation study informs satisfaction levels of the majority of PAPS surveyd on the implementation of RAP and achieving project R&R objectives. However, few actions in the short term are pending to be completed and these will be followed up in the follow up project.

Last implementation support mission has visited, the Packages 5(1), 5 (2), and 6 where civil works completed substantially and had deliberations with the PIUs, HPRIDC, Consultants, and contractors on the overall project progress, outstanding issues, challenges and accomplishments. Upon closing the project, the mission has agreed with the HPRIDC the following short term measures, and suggested the long term measures for the sector.

Action Points - Short Term

Settle all outstanding LA, compensation and R&R payments: For acquisition of 131.57 hectares of land, an amount of 158.89 crores was eligible to be disbursed. Of this 156.31 crores was disbursed and the balance amount to be disbursed is 1.6%. The amount is not disbursed due to (i) death of land owners (ii) disputes among shareholders (iii) court stay orders (iv) land owners not interested to take as they find the amounts are too small to receive. This balance amount 1.6% is deposited with the Revenue Department and will be disbursed as the cases get resolved.

Couple of other actions remain to complete are (i) disbursing the R&R assistance for the 4 land owners acquired recently in package 5 (1) (ii) completing land acquisition of about 200 sq mts in Package 5(2) which was arisen due to land slide recent past on account of slope cutting. Micro Plans are prepared for four THs and they are under approval process. These two actions should be completed before end November 2017 and the HPRIDC should address any other issues as they arise in accordance with the Project R&R Policy.

Finalise the RAP Impact Evaluation Study: The Consulting Agency (CA) has submitted the draft report. The report was reviewed and discussed during the mission with the CA and PMU and provided the comments. The report needs to be improved substantially and corrected for the inconsistencies. The revised report is agreed to be shared with the Bank before end June 2017. The report while needs to be revised substantially, it brings out that about 86% have utilized the compensation and R&R assistance for productive purposes and the remaining used for clearing loans and household functions. In terms of process of delivery, about 88% satisfied on the timely delivery of compensation, 72% received entitlements through organized camps; women in general satisfied, however expressed difficulties in collection of firewood from the forests.

Repair and restore the properties affected on account of construction works in packages 5(1) and 5 (2) : As agreed during last mission, the HPRIDC has provided temporary access to school at Parasari, Package 5 (2). It is agreed that the permanent access will be built immediate after the completion of bridge works which is close to the school. It is also agreed that the HPRIDC will address all construction related damages as they arise.

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

Grievance Redress Mechanism and the Project Website: As agreed, the HPSRP web site has the provisions for receiving complaints through web site. About 35 complaints on website and 830 complaints at the field offices/CMUs were received. However, the mission noted no classified information on type of complaints and their disposal were available at the Head Office. The HPRIDC has agreed to have the proper classified MIS on the grievances.

Progress in capacity building proposals: Limited progress has been made in capacity building. Few officers have undergone on LA and R&R at ASCI.

Improved conditions for working labour: HPRIDC has shared the compliance note to the observations provided during the previous mission. The mission noted substantial improvements in the living conditions of the labour camps. The mission visited labour camps at Chhaila camp office and camp in rented premises located at Charubagh village in package 5 (1). The contractor has provided new rugs and blankets, and improved floor conditions, storage facilities at the camps. The contractor has shown the EPF records of the employees. To sustain these practices the Social Officer HPSRP should visit time to time and monitor the implementation of contractual provisions of the labour.

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

Annex 9

Environmental Safeguard Management (No separate annex was required in this mission)

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission June 5-10, 2017

Annex 10

Financial Management The implementation support mission reviewed the continuing adequacy of the financial management arrangements at the project and the progress made on the action plan agreed during the previous mission. The recent developments and key issues are highlighted below:

Disbursements: The project is regular in submission of IUFRs and claims till month ending March 31, 2017 have been filed. Disbursement from the World Bank as on date stands at USD 25.97 million, which represents 42% of the original signed loan of USD 61.7 million and 55.61% of the loan after cancellation, i.e. USD 46.7 million. The closing date of the additional financing falls on June 30, 2017. It is expected that entire loan will be disbursed by the closing date, after the cancellation of USD 15 million.

Internal auditor: The existing internal auditors M/s Soni & Rustogi Chartered Accountants have been decided to extend the contract till closing of the loan. The internal audit function is working satisfactorily with reports till quarter ending September 2016 have been shared with the Bank. Few inconsistencies were reported with respect to contract execution, particularly in payment terms, VAT payment, non-deduction of works contract tax, non-recovery of mobilization and material advance etc.

External Audit: The audit report for FY 2015-16, furnished by M/s Anil K Sood & Co, had been shared with the Bank by the project e-mail dated September 30, 2016. The project audit report submitted by the AG has been reviewed and found to be acceptable. The project has continued to follow suitable financial management practices for the benefit of the project. However, there are audit paras in the entity audit report, which reports few inconsistencies in the contract executions, particularly in payment terms, VAT payment, non-deduction of works contract tax, non-recovery of mobilization and material advance, pre-release of retention money, awarding contracts against the guidelines, non-deposit of Government dues, inappropriate calculation of price escalation etc. The team has been advised to address these issues.

Closing Date: The Project team has been advised about the Bank’s closure/house-keeping procedures. Special provisions with respect to audit fees, retention money have been explained. The project team was asked to work closely with the AG office to submit the FY 16-17 audit report timely. The project team was also advised about the disbursement deadline date and to submit the final reimbursement application to the Bank’s Chennai office by this date, for the expenditure incurred till the closing date.

ISR FM Rating: Based on the above, project Financial Management performance is rated Moderately Satisfactory.

Agreed FM Actions:

Action By When Share internal audit report for half year ended March 31, 2017 June 30, 2017 Submission of IUFR for the period ending June 15, 2017 June 20, 2017 Submission of IUFR for the period ending June 30, 2017 August 15, 2017 Submission of project audit report for FY 16-17 December 31, 2017 Submission of all withdrawal applications to Chennai office October 31, 2017

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

Annex 11

Contract Package No.33

Contract Origina Date of Present Total Total Amount of Latest Status of Execution (in Km.) Remark Package l Award/ Status of Expd. Progress price s Details Contra stipulated Hindrance (Rs. in (%) adjustment Compone Scope Likel Achievemen Total Expected ct price. completio free land Crores (in crores) nt As per y ts progres Completio (Rs. in n Date/ ) contra final s Item n date Crores) Likely ct scope wise As per Completion (%) latest Date Work Program me (Item Wise) Mehatpur- 126.498 30.04.2008/ 100% 98.77 100% 26.215 Earthwor 44.823 43.60 100% Work Una-Amb 07-11-2010/ Cr. (Project k 0 43.600 Complete Work Road, 23-11- Complet completed Sub- 44.823 43.60 100% Work Length 2012 e) 43.600 Grade 0 Complete 44.700 (Schedule . Kms.(Km. d Time for Granular 44.823 43.60 100% Work 5/600 to completio Sub-Base- 0 43.600 Complete 50/300) n = 30 300 mm WMM-250 44.823 43.60 100% Work months) 43.600 (i)Double mm 0 Complete DBM-80- 44.823 43.60 100% Work Lane- EOT 43.600 28.100 Determine 100 mm 0 Complete th BC-50 44.823 43.60 100% Work Km. d upto 31 43.600 (22/200 to Dec,2014 mm 0 Complete 50/300) Bridges 12 5 5 nos. 100% Work (ii)Four completed. Complete Lane- Cross- 101 nos. 104 104 nos. 100% Work 16.600 Drainage nos. completed Complete Km. structures (5/600 to 22/200)

Contract or M/s Longjian Road & Bridge

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

Limited Company.

CONTRACT -01 (NCB)

Present Total Amount of price Date of Award/ Status of Expd. adjustment Latest Status of Execution stipulated completion (Rs. in Hindrance (in crores) Date/ Millions) Remarks free land Scope of work Achievements Likely Completion Component Date As per Contract As per Revised ( Up to 31st Dec 2016) Items Quantity Progress Status Earthworks (Road Work) (Excavation, Embankment 57282 Cum 87497 cum 53544.78Cum - and Sub grade) 20-09-14/ - Granular Sub Base Grading 4524.07Cum 1 (Table: 400 – 1) 4988 Cum 7159 cum 30-06-2017/ 3162 Cum Wet Mix Macadam 4543 cum 3396.31 cum -

DBM 1119 Cum 1295 cum 887.94 cum - 100% 521.7 -0.8776 Bituminous Concrete 609 Cum 1256 cum 900.12 cum -

(Scheduled Time 1 No Major Bridge for completion = 33 completed & 5 No’s Major Works are Major Bridges 6 No’s 2 No’s Bridge approaches & months) substantially complted miscellaneous works are in progress. Minor Bridge 1 No - 1 No - Box Culvert 1 No - Completed - Cross Drainage Structures 600 RM - 26 RM Completed -

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

Contract Package No. 2 Contract Package Origina Date of Present Total Total Amount Latest Status of Execution (in Km.) Remarks Award/ Details l Status Expd. Progre of price Total Expected stipulated Compone Scop Likely Achieve Contra of (Rs. in ss adjustme progress Completi completio nt e final ments ct price. Hindranc Crores (%) nt (in Item wise on date n Date/ As scope (Rs. in e ) crores) (%) As per Likely per latest Crores) Completion free contr Work Date land act Program me (Item Wise)) Una-Barsar Road, 97.95 06.05.2008/ 100% 93.10 100% 22.417 Earthwor 45.00 45.00 45.00 100% Work length 45 Kms. 13-11-2010/ (Projec k Complete (Km. 0/0 to 45/0). 12/12/201 t Sub- 45.00 45.00 45.00 100% Work Four Lane – 2 Compl Grade Complete ete 1.900 Km. (0/0 to (Scheduled Granular 45.00 45.00 45.00 100% Work Work completed 1/900) Time for Sub- Complete Double Lane- completion Base-300 43.100 Km. = 30 mm (1/900 to 45/000) months) WMM-250 45.00 45.00 45.00 100% Work Contractor mm Complete M/s C&C DBM-80- 45.00 45.00 45.00 100% Work Construction 100 mm Complete Limited, Gurgaon Work (Haryana) BC-40 45.00 45.00 45.00 100% Complete mm Bridges 9 12 12 100% Work Complete Cross- 152 151 151 100% Work Drainage Complete structures

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

CONTRACT -03

Contract Package Original Completion Project Project Total Amount Latest Status of Execution (in Km.) Remarks Details Contract Date cost as Completion Progress of price Component Scope Likely Achievements price. per Cost (Rs. in (%) adjustme As per final (Rs. in VO.16 Crores) nt (in contract scope Crores) (Rs in crores) Crores) Earthwork 45.80 46.03 46.03

Package-3 (ICB) 31st Oct ,2014 111.56Cr. 110.62Cr 100% 33.87 Sub-Grade 45.80 46.03 46.03 BarsarJahukm 45.00 to 102.89 Project km 91.03 Complet Work Granular Sub- 45.80 46.03 46.03 ed completed Base-300 mm

Contractor WMM-250 mm 45.80 46.03 46.03 M/s C&C DBM-80-100 45.80 46.03 46.03 Construction Limited, mm Gurgaon (Haryana) BC-40 mm 45.80 46.03 46.03 Bridges 5 nos. completed. Cross-Drainage 78 nos. 78nos 78 nos. completed structures .

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

CONTRACT -04

Contract Origina Present Final Physica Total Amount of Latest Status of Execution (in Km.) Remarks Package l Completion Status of project l Progress price Compone Scope Likely Achievemen Details Contrac Date Hindrance cost Progres (%) adjustment nt As per final ts t price. free land (Rs in s as on (in crores) contrac scope (Rs. in Crores date t Crores) ) (Rs. in Crores) Earthwork 15.39 15.39 15.390

Package-4 31st Mar 100% 35.87Cr. 35.83 100% 7.13 Sub- 15.39 15.39 15.390 (NCB) 33.50 2014 Cr as per works Jahu – Grade Final are Kalkharkm Granular 15.39 15.39 15.390 Project complete 93.440 to Sub-Base- Cost d km 108.830 150 mm &107% WMM-250 15.39 15.39 15.390 as per mm Contracto Original Project DBM-50 15.39 15.39 15.390 r M/S mm ANS 5.87 Cr. 15 Dec, 100% 5.16Cr. Cost Constructio 2015 SDBC-25 15.39 15.39 15.390 n Ltd mm Bridges NIL NIL Cross- 56 nos. 56no 56 nos. 100% Drainage s. completed

as per structures

Final 32000 Earthwork Cum 27000Cum Project 5.16 Cr. Cost & 88.92% as per GSB 1.300 1.300km Bypass in a Original R/Wall km 3822 Cum length of Contrac 3500 1.30 kms t Price Cum

WMM 1.300 1.300km DBM km 1.300 km 37

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

SDBC 1.300 1.300 km km 1.300 km

Contract Package No. 5 (Work terminated and Re-awarded) Contract Package Origin Total Amount of Total Latest Status of Execution (in Km.) Remarks Details al Expd. price Progress Contr (Rs. in adjustmen (%) act Crores) t (in Component Scope Likely Achievements Total Expected price. crores) As per final ( Till progress Completio (Rs. in contrac scope Termination) Item wise n date t (%) As per Crores latest

) Work Programm e (Item Wise) Theog-Kotkhai- 228.25 65.07 12.55 28.50% Earthwork 80.684 80.684 45.560 56.46% Work Hatkoti-Rohru Road, Sub-Grade 80.684 80.684 24.980 30.96 % Terminate Final IPC d on 26-07- Granular 80.684 80.684 16.640 20.62% Length 80.684Kms. Submitte Work 2012. Sub-Base- (Km. 0/0 to Km. d by the Terminat Contract 300 mm 80/684). contractor ed retender WMM-250 mm 80.684 80.684 11.260 13.95% after ed and Double Lane-80.684 amicaible DBM-80- 80.684 80.684 7.563 9.37 given to Km. settlemen 100 mm M/s t. BC-50 mm 80.684 80.684 Nil - C&C Contractor Constru M/s Longjian Road & Bridges 14 nos. 14 nos. Nil - ction Bridge Company, Ltd China Cross- 327 nos. 327 87 nos. 26.60% Compan Drainage nos. completed y structures R/wall 7.051 7.051 3.783 53.65% Gabion 7.385 7.150 0.500 6.99%

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

CONTRACT -05-I

Contract Origin Date of Present Likel Physical Total Amount Package al Award/ Status y Progres Progress of price Latest Status of Execution (in Km.) Details Contr stipulated of proje s as on (%) adjustm Remarks act completio Hindran ct date ent (in Component Scope Likely Achievements price. n Date/ ce cost (Rs. in crore) As per final In Km (Rs. in Likely free (Rs in Crore) contra scope in Crores Completion land Crore ct In Km ) Date ) Km

16.200 Theog- 179.44 09 -10-2013/ Earthwork 26.00 18.50 Completed, 1.670 Kotkhai- 100% 223.75 101.95 45.56% 0.42 in progress Kharapatt 30.06.2016/ with 34.805 har Road, 31-12- (V.O.4 respect Sub-Grade 39.00 39.00 2016 ) to Completed Length (as per Revised Granular 48Kms. IEOT-2) Contrac Sub-Base- 34.275 39.800 39.800 (Km. 0/0 And t Price 150- 200 Completed to Km. 30.06.2017 mm 48/00). as per And CSUS 3.860 7.700 7.700 approved 56.82% 150mm Completed Double work with WMM- I - 30.135 39.800 39.800 Lane- programm respect 125 mm Completed 48/00 Km. e to WMM- II 28.130 Origina 39.800 39.800 Contracto l 125 mm Completed r Contrac ( 27.530 M/s C&C t Price DBM-65- 35.630 +8.100 Constructi 39.800 48.00 100 mm Completed overlay on Ltd

Company BC-40 mm 48.00 48.00 0

1 no Completed, 4 no. in progress Bridges 7 nos. 7 nos. (1 Complete as existing slab culvert extended)

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

7.532 Retaining/ Completed, Revetmen 19.149 19.149 1.073 in t wall progress

Gabion 0.222 Completed, 0.519 0.519 wall 0.140 in progress

218 No. 218 No. 129 to be 129 no. Cross- constructed + ( 89 to be Drainage No protection work construct structures pending of the ed + (89 26 no. completed, previous Contract/ No. 47 no. in progress retained protectio n works pending the previous Contract/ retained.

CONTRACT -05-II

Latest Status of Execution (in Km.) Date of Likel Origina Physic Award/ y l Present al Contract stipulated proje Amount of Contra Status of Progre Total Scope Likely Package completio ct price Achieveme Remar ct Hindranc ss as on Progress Compone As per final Details n Date/ cost adjustmen nts ks price. e date (%) nt contract scope in Likely (Rs in t (in crore) (Rs. in free land (Rs. in In Km Km Completio Crore Crores) Crore) n Date ) 24.150 Kharapatth 100% 215.1 147.16 68.41% -0.92 Earthwor Completed, 25.00 25.00 ar – 143.32 09 -10- 0 with k 0.850 in Hatkoti - 2013/ respect progress

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

Rohru- 22.06.2016/ (V.O. to Sub- 30.570 Road, 31.12.201 5) Revised 32.684 32.684 6 (As Per contract Grade Completed Length IEOT– 2) price Granular 32/684Km and Sub- 29.955 s. (Km. 102.68 Base- 32.684 32.684 Completed 48/00 to % with 150- 200 Km. respect mm 80/684). to 8.580 Original CSUS 9.700 9.700 Completed Double Contrac t price 29.355 Lane- WMM- I - 32.684 32.684 Completed 32/684 125 mm Km.

WMM- II 29.145 Contracto 32.684 32.684 r 125 mm Completed M/s C&C Constructi DBM-75- 28.273 32.684 32.684 on Ltd 100 mm Completed Company

) BC-40 32.684 32.684 0 mm 5 nos. (1 converted in slab culvert 5 no. in Bridges 7 nos. and 1 in progress box culvert)

14.215 Protectio Completed, 16.751 16.751 n work 0.300 in progress 120 No. 125 No. 90 no. Cross- -(113 to -(118 to Completed, Drainage be be 26 no. in structures construct construct progress ed + 7 ed + 7 41

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

No. No. Protectio Protectio n work n work pending pending of the of the previous previous Contract/ Contract/ retained retained

Contract Package No. 6 (Work terminated and Re-awarded) Contract Original Total Amount of Total Latest Status of Execution (in Km.) Remarks Package Contrac Expd. price Progress Componen Scope Likel Achievement Total Expected Details t price. (Rs. in adjustment (%) t As per y s progres Completion (Rs. in Crores (in crores) contrac final s Item date Crores) ) t scope wise As per latest (%) Work Program(Ite m Wise) Sarkaghat- 93.85 3.16 0.261 2.66% Earthwork 41.950 41.95 9.340 22.26% Work Ghumarwi 0 Terminated n Road, Sub-Grade 41.950 41.95 3.130 7.46% on 16-10- 0 2012 Length – Granular 41.950 41.95 0.470 1.12% Work 41.950Kms Sub-Base- 0 Terminated on Contract . (Km. 300 mm 16.10.2012 retendered 61/420 to WMM-250 41.950 41.95 Nil and given to 103/370). mm 0 MG DBM-80- 41.950 41.95 Nil Contractor’s Double 100 mm 0 Pvt. Ltd. Lane- BC-50 mm 41.950 41.95 Nil 41.950 0 Km. Bridges 9 nos. 9 nos. Cross- 84 nos. 84 17 nos. Contracto Drainage nos. completed r structures M/s HCIL- R/wall 3.68 3.68 0.198 5.38% DRAIPL (JV) 42

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

CONTRACT -06-I

Contract Origina Present Total Total Amount of Latest Status of Execution (in Km.) Remarks Package l Likely Likely Status of Expd. Progress price Componen Scope Likel Achievements Details Contra Projec Completio Hindrance (Rs. in (%) adjustmen t As per y ct t Cost n Date free land Crore t (in contra final price. (Rs. in s) crores) ct scope (Rs. in Crores Crores) ) Earthwork 16.790 16.79 16.790 km 0 63.67 68.00 (16-12- 100% 67.20 98.82% 0.52 Sub-Grade 17.180 17.18 17.180 km based on 2016) as per 0 Pkg 6 (I) Contract Likely Granular 17.180 17.18 Sarkaghat- price. Project Sub-Base- 0 17.180 km Jahu Cost & 100,150,2 Road, 105.54 60 mm % as WMM-250 17.180 17.18 Length – per mm 0 17.180 km 17.180Km Origina Top s. (Km. l DBM-80- 17.180 17.18 17.180 km 61/920 to Project 100 mm 0 79/100). Cost. BC-40 17.180 17.18 17.180 km mm 0 Contracto Bridges 5 nos 5 nos 5 nos r completed . Work MG ALL Completed Contractor COMPLTED . ’s Pvt. Ltd. Cross- 47 Nos. 50 3 Box Drainage nos. culvert structures completed,9 slab culverts completed , 38 pipe 19629 culvert Cum Completed .( 43

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

5905 All Cross 6 drainage Retaining Cum works Wall Completed) 54550Cum

CONTRACT -06-II

Contract Origina Present Total Total Amount of Latest Status of Execution (in Km.) Remarks Package l Likely Likely Status of Expd. Progress price Componen Scope Likel Achievemen Details Contra Projec Completion Hindrance (Rs. in (%) adjustment t As per y ts ct t Cost Date free land Crore (in crores) contra final price. (Rs. in s) ct scope (Rs. in Crores Crores) ) Earthwork 24.270 14.93 14.930km 0 Work 94.78 85.00 (05-01- 100% 82.80 97.41% 1.01 Sub-Grade 24.270 24.27 Completed. 24.270km Pkg-6 (II) based on 2017) as per 0 Jahu- Contract Likely Granular 24.270 24.27 Ghumarwi Price Project Sub-Base- 0 24.270 km n Road, Cost & 100,150,2 87.36% 60 mm Length – as per WMM-250 24.270 24.27 24.270km 24.270Km Original mm 0 top s. (Km. Project DBM-65 24.270 24.27 24.270 km 79/100to Cost. mm 0 103/370). BC-40 mm 24.270 24.27 24.270 km 0 Bridges 6nos 6nos 6 completed .

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

Contracto Cross- 93 Nos 98 5 no. box r Drainage nos. culvert MG structures complete & Contractor 82 nos. pipe ’s Pvt. Ltd. culvert 33677 completed,1 Cum 6725 1 nos of R/Wall 3 Slab Cum Completed (All Cross Drainage works Completed )

47695 Cum

Contract Package No. 7

Contract Origin Total Date of Award/ Present Amount Total Latest Status of Execution (in Km.) Remark Package al Expd stipulated Status of price Progres Compo Scop Like Achieve Total Expected s Details Contra . completion Date of adjustm s nent e ly ment progr Completio ct (Rs. Hindran ent (in (%) As final ess n date price. in ce crores) per scop Item As per (Rs. in Cror free contr e wise latest Crores es) land act (%) Work ) Program( Item Wise) Ranital- 62.67 58.40 08.03.2010/15.0 100% Nil 100% Earthwo 39.1 39.173 39.173 100 % Completed Kotla 7.2012 (Proje rk 73 Road, ct Sub- 39.1 100 Work 39.173 39.173 Completed Compl Grade 73 % Complete Length – ete Granula d. 39.170K r Sub- 39.1 100 39.173 39.173 Completed ms. (Km. Base- 73 % 300 mm

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

0/0 to WMM-250 39.1 100 39.173 39.173 Completed 39/170). mm 73 % DBM- 39.1 100 39.173 39.173 Completed Interme 50mm 73 % diate SDBC- 39.1 100 39.173 39.173 Completed Lane- 25 mm 73 % 39.173 100 Bridges Nil Nil Nil Completed Km. % Cross- Contract Drainag 154 nos. 158 154 100 or e complete Completed nos. nos. % M/s structur d VALEC es HA- DILIP 2.6 100 R/wall 2.200 2.650 Completed Ltd. 50 %

CONTRACT -07-(NCB)

Contract Package Details Origin Date of Present Likel Total Total Componen Scope Like Achievem Total Remarks C-07(Bridge) al Award/ Status y Expd Progre t As per ly ent progre Contr stipulate of Final . ss (%) contract( final ss act d Hindra Cost Qty) in scop Item price. completi nce free ( Rs cum e wise (Rs. in on Date land in (Qty (%) Crores Crore ) in ) s) cum (Rs. in Crore s) Construction of Bridge and 9.30 15.12.20 100% 15 8.90 59.33 Earthwork 3573 9991 9261 92.69 Work Approaches on Ranital- Cr. 14/ Cr % % Complete Kotla at Km 01+081 d.

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

(Ranital Bridge 14.09.20 Length – 102 M (3 X34 M+ (2116 Approach Length 200 M Months) Approx.)

Contractor PCC for 2204 64.61 J.C. Gupta Engineers & (Pier –P-1, 652 3411 % Contractors Pier –P-2 & Abutment A-1 & (Contract No.- Abutment- PW.SRP/RIDC/Procureme A-2) & nt/NCB-7/Bridge/2014 of Other December-12,2014) Protection Works

Raft 700 700 567 81% Concrete in M-30 for Pier – P-1, Pier – P-2 &Abutme nt A-1 ,A-2 Abutment 975 975 975 100% Wall (A-2) Cap Completed Pier P-1 Pier Cap completed RCC M-30 (Sub- structure)

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

Pier P-2, completed RCC M-30

Pier P-2, Pier Cap RCC M-30 M-45 750 405 54% (Girder & Deck Slab) HYSD 60 (TMT) Fe 4150 grade reinforcem ent bars in (MT) for Girder & Deck Slab

Contract Package No. 8

Contract Package Origin Date of Prese Tota Total Amount Latest Status of Execution (in Km.) Remarks Details al Award/ nt l Progre of price Contra stipulated Status Exp ss adjustm ct completio of d. (%) ent (in Component Scope Likel Achieveme Total Expected price. n Date Hindra (Rs. crores) As per y nt progress Completion (Rs. in nce in contra final Item wise date Crores free Cror ct scope (%) As per latest Work ) land es) Programme (Item Wise) Kumarhatti- 142.22 14.10.2009 100.00 146.2 100% 42.52 Earthwork 71.540 71.540 71.540 100% Work Work Sarahan- / % 3 Complete Completed. Nahan(Dosarka) 29th Sub-Grade 71.540 71.540 71.540 100% Work Road, March ,2 Complete 014 GSB 71.540 71.540 71.540 100% Work Complete 48

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

Length – WMM-250 71.540 71.540 71.540 100% Work 71.740Kms. (Km. mm Complete 0/300 to 72/040). DBM-50-75 71.740 71.740 71.540 100% Work mm Complete Intermediate SDBC-25 62.400 62.400 62.400 100% Work Lane-71.740 Km. mm Complete BC 9.335 9.335 9.335 100% Work Contractor Complete M/s Somdatt Cross- 449 444 444 100% Work Builders Pvt. Ltd. Drainage nos. nos. Completed Complete structures R/wall 7.715 12.500 13.005 100% Work Complete

CONTRACT -09

Contract Original Date of Present Total Expd. Amount of Latest Status of Execution (in Km.) Remarks Package Details Contract Award/ Status (Rs. in price Component Scope Likely Achievement price. stipulated of Crores) adjustment As per final scope (Rs. in Crores) completion Hindran (in crores) contract Date ce free land Draman- 43.02 20.11.2009/ 100% 48.39 Cr. 8.57Cr. (Till Earthwork 24.000 24.050 24.050 Sihunta Road, October, Aug, 2016) Sub-Grade 24.000 24.050 24.050 49.75 2013 Granular Sub- 24.050 24.050 24.000 Length – ( (Approved EOT -9 is As Per Base-150 mm 24.050kms. V.0. 19) approved Balance WMM-225 mm 24.000 24.050 24.050 (Km. 0/0 to up to 5th Work as on DBM- 50 mm 24.000 24.050 24.050 24/050). September 21st Dec Work 2016. 2016, SDBC-25 mm 24.000 24.050 24.050 Completed. Bridges Nil Nil Nil

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

Intermediate Financial Cross-Drainage Lane -20.000 Progress is structures 105 nos. 97 97 Km. (2/0 to =97.85 % 22/0) Double Lane – Protection Work 5350 LM 5465 LM (As 4.000 Km. (0/0 (Retaining Wall) 5465 LM per VO-19) to 2/0 and 22/0 to 24/0) Drainage V- Contractor Type 20000LM 11000 LM 10000 LM M/s NKG Infrastructure Drainage U- Ltd. 10691 LM 13000 LM 13000 LM Type

Contract Package No. 10 Contract Origina Tota Date of Prese/ Total Amount Latest Status of Execution (in Km.) Remarks Package l l Award/ presen Progre of price Details Contra Exp stipula t ss adjustme Component Scope Likel Achievem Total Expected As per y ent progress Completion ct d. ted Status (%) nt (in date price. (Rs. comple of crores) contra final Item wise (%) As per (Rs. in in tion Hindra ct scope latest Work Crores) Cror Date nce Programm e (Item es) free Wise) land Bhawarna- 56.07 43.57 08.03. 100% 100% Nil Earthwork 26.28 Complete Work 26.280 26.280 100 % Lambagaon 2010/ (Projec 0 d Complete t Road, 17.09/ Sub-Grade 26.28 Complet d. 2012 Compl 26.280 26.280 100 % ete 0 ed Length – Granular Sub-Base- 26.28 Complet 26.280 26.280 100 % 26.280Kms. 100-200 mm 0 ed (Km. 0/0 to WMM-250 mm 26.28 Complet 26/280). 26.280 26.280 100 % 0 ed 50

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

DBM-50 mm 26.28 Complet 26.280 26.280 100 % Intermediate 0 ed Lane-26.280 SDBC-25 mm 26.28 Complet 26.280 26.280 100 % Km. 0 ed Bridges 2 2 no. Complet 4 Nos. 100 % Contractor Nos. complete. ed M/s Cross-Drainage 81 nos. 81 Complet VALECHA- structures 73 nos. complete 100 % nos. ed DILIP Ltd. d R/wall Complet 6.090 2.844 2.844 100 % ed

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

Annex 12 Status of Maintenance Works (Tranches I, II and III)

Periodic Maintenance Works No. of Total Total Status of Procurement Status of Work Remarks Packages length Contr DPR Status ( in act km) value in INR Millio n 1 2 3 4 5 6 7 Tranche-I 25 Nos. All works have been Total expenditure to 532 408 Completed All works completed. date is Rs. 389.80 awarded million (38.98 Crore).

Tranche-II

28 Nos. Total expenditure to 517.32 740 Completed All works All works are date is Rs. 748.4 awarded complete million (74.84 Crore).

Tranche-III 22Nos. 432 762 Completed All works Total expenditure to awarded Works have been date is Rs. 695.20 completed in 433.432 million (69.52 Crore). Km. Total 22 no. works have been completed.

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

Annex 12-A

RADMS Road Accident Database Management System (RADMS) (No separate annex required)

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

Annex 13 Status of Consultancy Services

Detailed of Studies & Consultancy Services under HPSRP Sr. No. Name of Consultancy Services Status 1. Consultancy services for feasibility of 1675 km and Completed Detailed Design/Safeguard Assessment of 413km of roads under Phase-1 (Package-1) 2. Consultancy services for feasibility and detailed design Completed of road tunnels in Shimla and other parts of the state 3. Consultancy Services for ISO 9001:2008 Quality Completed Management System (QMS)& ISO 14001:2004 Environmental Management System (EMS)Implementation 4. Consultancy Services to undertake a study of the Completed Productivity of Force Account Staff in the Public Works Department 5. Road Sector Finance Study Completed

6. Road User Satisfaction Survey (Commencement of Completed Project) 7. Road User Satisfaction Survey (Mid-Term) Completed

8. Services to assist HPRIDC in the implementation of the Completed RAP for Phase 1 (413 km) of State Roads 9. Independent Review Environmental Screening and Completed Environmental Assessment for Phase-1 Upgrading Roads 10. Technical Examination of the first two tranches of Completed periodical maintenance works 11. Construction Supervision for Phase 1 Upgrading of State The proposal to extend the contract upto June 30, 2017 Roads (413km) in Himachal Pradesh has been sent to the World Bank for their approval. “No Objection” is awaited. 12. Consultancy Services for a Study to Short-List/Prioritize Completed 20 Number Blackspots and Design Countermeasures on the Core Road Network under Black Spot Improvement Program (BIP) of HPSRP 13. Proof Review of Design of Tunnels in Shimla & Other Completed Parts of State 14. External Evaluation for Resettlement & Re-Evaluation Completed

15. Consultancy Service for Human Resource Development Completed Strategy for HPPWD 16. Design & Development of Performance Based Completed Maintenance Contracts@ (under TA-MMS^) 17. Consultancy Services for Road Accident Data base Variation Order No.-2 (Mulit-Ministerial International Management System STuyd visit) and VO-3 (Annual Maintenance Contract) already signed with the Consultant and the Consultant rendering the services. 18. Consultancy Services for PMC for computerization of Bids invited for the selection of System Integrator by HPRIDC & HPPWD publishing the procurement notice published in National Daily Newspapers and for publishing in UNDB the notice was sent to the World Bank vide e-

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

mail dated December 21, 2016. The Last date of submission of bids is February 09, 2017. 19. Consultancy Services for System and Application -As above.- Development Integrator for computerisation in HPRIDC & HPPWD 20. Consultancy Services for software on e-based Project The Annual Maintenance Contract was signed with the Management & Monitoring System for HPRIDC Consultant and the Consultant rendering the services. 21. Consultancy Services for Road User Satisfaction Completed. Survey(Final) and Speed Survey on upgraded roads - 22. Consultancy Services for Feasibility of about 2000 Kms. No Bid was received. The process for the revised and detailed engineering / safeguard assessment of about Design consultancy services is to be initiated after the 500 Kms. of roads for the proposed H.P. State Roads approval of the revised proposal for 2nd phase of Project-II in the State of H.P. HPSRP from the Department of Economic Affairs (DEA), Ministry of Finance, Govt. of India. 23. Consultancy Services Technical assistance to upgrade The Consultant has submitted the Final Need Analysis the Road Maintenances Management System to Road Report and Draft Road Classification and GPS road Management System in HPPWD & HPRIDC referencing Report. 24. Consultancy Services required for carrying out Terminal The Consultant has submitted the Draft Report. Impact Evaluation of the Implementation of RAP for all packages of upgrading roads in the State of Himachal Pradesh under Himachal Pradesh State Roads Project (HPSRP) (Loan no. 4860-IN & 8199-IN).

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission July 11-15, 2015

Annex 14 - Appendix A

Forest Land Diversion/Trees Status in upgrading roads under Phase-I of the State Roads Project

Status of Forestry Clearances – Phase I (needs update)

Area to Contract Name of the Chainage be In-principle Amount Formal Package Road (Forest Case) diverted Approval Deposited Approval (in ha.) Km 5.600 to 31.300 11.31 Obtained Yes Obtained Mehatpur-Una- Km 5.600 to 31.300 (additional 0.5020 Obtained Yes Obtained Amb requirement) 1 (Km 5.600 to Km 31.300 to 50.300 3.80 Obtained Yes Obtained 50.426) Km 31.300 to 50.300 (additional 0.1420 Obtained Yes Obtained requirement) Sub-total - 15.754 Obtained Yes Obtained Km 0 to 4 2.0 Obtained Yes Obtained Una-Barsar Km 4 to 45 10.0885 Obtained Yes Obtained 2 (Km 0 to 45) Km 4 to 45 0.5800 Obtained Yes Obtained (additional requirement) Sub-total - 12.6685 Obtained Yes Obtained Barsar-Jahu 3 (Km 45 to Km 60 to 65 2.88 Obtained Yes Obtained 90.800) Jahu-Kalkhar 4 (Km 93.440 to Forest Area in 5 kms length 1.79 Obtained Yes Obtained 108.830) Km 10.470 to 29 0.4930 Obtained Yes Obtained Theog-Kotkhai- Km 29 to 51 13.52 Obtained Yes Obtained Rohru Km 29 to 51 5 7.11 Obtained Yes Obtained (Km 0 to 80.600) (additional requirement) Km 55.500 to 56.700 1.9316 Obtained Yes Obtained Sub-total - 23.0546

Status of Forestry Clearances – Phase II Works (needs update)

Area to be Contract Name of Chainage In-principle Amount Formal diverted Remarks Package the Road (Forest Case) Approval Deposited Approval (in ha.) Sarkaghat- Km 61.950 to 2.36 Obtained - - Ghumarwin Km 76 6 (Km 61.420 In-principal Final approval to 103.370) -do- 0.59 approval from Govt. of received. India awaited.

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission July 11-15, 2015

Area to be Contract Name of Chainage In-principle Amount Formal diverted Remarks Package the Road (Forest Case) Approval Deposited Approval (in ha.) Km 6 to 14 Ranital- and 1.7146 Obtained Yes Obtained - Kotla Km 24 to 7 (Km 0 to 39.173 39.173) Km 0 to 6 and 17.4769 Obtained Yes Obtained - Km 14 to 24 Km 0.500 to 15.91 Obtained Yes Obtained - Kumarhatti- 14.310 Nahan Km 14.310 to 8 15.61 Obtained Yes Obtained - (Km 0.300 43.150 to 72.035) Km 43.150 to 18.129 Obtained Yes Obtained - 72.035 Draman- Km 0 to 14 1.212 Obtained Yes Obtained - Sihunta 9 (Km 0 to Km 14 to 24 12.8473 Obtained Yes Obtained - 24) Bhawarna- Km 3 to 12 1.0 Obtained Yes Obtained - Lambagaon Km 0 to 3 & 10 Km 19 to 2.0956 Obtained Yes Obtained - (Km 0 to 26.28 26.280) Km 12 to 19 9.0 Obtained Yes Obtained -

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission July 11-15, 2015

Tree Cutting Status (as on April 30, 2015)

Trees to be Cut Trees Cut Balance Trees to be Cut

Forest Private Forest Private Forest Private Contract Name of the RoW Total RoW Total RoW Total Package Road Land Land Land Land Land Land

No. No. No. No. No. No. No. No. No. No. No. No. %

Phase I

Mehatpur- 1 3314 0 457 3771 3314 0 457 3771 0 0 0 0 0 Una-Amb 2 Una-Barsar 2301 0 518 2819 2301 0 518 2819 0 0 0 0 0

3 Barsar-Jahu 447 1154 169 1770 447 1154 169 1770 0 0 0 0 0

4 Jahu-Kalkhar 70 512 0 582 70 512 0 582 0 0 0 0 0 Theog- 5 3837 3848 0 7685 3822 3840 0 7662 15 8 0 23 0.3 Kotkhai-Rohru TOTAL 9969 5514 1144 16627 9954 5506 1144 16604 15 8 0 23 0.3 Phase II Sarkaghat- 6 223 1336 529 2088 200 1336 529 2065 0 0 0 0 0 Ghumarwin 7 Ranital-Kotla 7694 551 405 8650 7446 551 405 8402 248* 0 0 0 0 Kumarhatti- 8 30659 0 0 30659 30659 0 0 30659 0 0 0 0 0 Nahan Draman- 9 3915 763 0 4678 3503 763 0 4266 412* 0 0 0 0 Sihunta Bhawarna- 10 2152 964 572 3688 1983 964 572 3519 169* 0 0 0 0 Lambagaon TOTAL 0 0 0 0 44643 3614 1506 49763 43791 3614 1506 48911 852 * Trees Saved – Cutting Not Required;

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission July 11-15, 2015

Annex 14 - Appendix-B Utilities in respect of upgrading roads under Phase-I of HP State Roads Project

S. Contract Mile Stone Handing Status no. Package over Date IPH HPSEB Hand Pipe Lines Poles, Transformers/ Pumps HT/LT Substation Lines 1 Package No- 1-(Km 41+300 to Km 50+426) May 08,2008     ICB-1 2- (Km 6+600 to Km 11+080)& August _ 07,2008    (Una-Amb (Km 33+200 to Km 41+300) from Kms 3-(Km 5+600 to Km 6+600)& February 5+600 to Km 07,2009 _ 50+426) (Km 11+080 to Km 33+200)   

2 Package No- 1- (Km 2+000 to Km 11+000) May 14,2008     ICB-2 2- (Km 25+000 to Km 35+000) November    _ 13,2008 (Una-Barsar 3- (Km 0+000 to Km 2+000 & February _ from Kms Km 11+000 to Km 25+000) 13,2009    0+000 to Km 45+000) 4- (Km 35+000 to Km 45+000) May 13,2009    -

3 Package No- 1- (Km 51+000 to Km 65+000) May 14, 2008     ICB-3 2- (Km45+000 to Km51+000 November 13, 2008    ______(Barsar- Jahu & Km65+000 to Km 67+250 from Kms 3- (Km 67+250 to 73+000 & February 13,    ______45+000 to Km Km 79+000 to Km 88+000) 2009 90+800) 4- (Km73+00 to 79+000 & May 13, 2009     Km 88+000 to Km 90+800) 4 Package No- 1- (Km 96+200 to Km 101+800 August 10, NCB-4 2008     (Jahu- Kalkhar from Kms 2- (Km 93+440 to Km 96+200 & November 09, 93+440 to Km 101+800 to Km 108+830) 2008    - Km 108+830)

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission July 11-15, 2015

S. Contract Mile Stone Handing Status no. Package over Date IPH HPSEB Hand Pipe Lines Poles, Transformers/ Pumps HT/LT Substation Lines 5 Package No- 1- (Km 20+000 to Km 30+000 & June 05, 2008 ICB-5/PKG-I Km 53+000 to K 68+000 Modified to Km 5+000 to (Theog-Rohru Total=6900 Total=80 m. Nos. from Kms Km 17+000 & Km18+000 to Total=4 0+000 to Km 48+000) Shifted= Shifted=68 Km 31+000  Shifted=3 3920 m Nos.

Balance=1 Balance= Balance=12 2980 m Nos.

Package No- 2- (Km 35+000 to Km 45+000 & February 04, NCB-5/PKG- Km 68+000 to Km 80+600) 2009 II Modified to Km 45+000 to Total=3730 (Theog-Rohru Total=65 m. from Kms Km 67+684 Nos. Total=4 Nos. 48+000 to Km 80+600) Shifted=3630  Shifted=60 Shifted=2 m Nos. Balance=2 Balance=100 Balance=5 m

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission July 11-15, 2015

Utilities in respect of upgrading roads under Phase-II of HP State Roads Project

S.N Contract Package Mile Stone Handing Status over Date IPH HPSEB Hand Pumps Pipe Lines Poles,HT/LT Transformers/ Lines Substation 6 ICB-6: Widening & ICB-6 Total = 16 Nos. Total = 105 Strengthening of Sarkaghat- Km. 79+100 to Shifted= 14 Total = 33773 Nos. Ghumarwin road Km 61.420 Km. 103+370 Nos. m Shifted= 105 ______to Km 103.370. = 24.270 Km Balance=2 no. Shifted = 33773m Nos. Length= 41.950 (Km) Balance=Nil Balance= Nil

NCB-6 Total = 13 Nos. Total = 71 Nos. Km. 61+920 to Shifted= 11 Total = 9742 m Shifted= 71 Km. 79+100 Nos. Shifted= 9742 m nos. ______Balance=2 Balance=Nil Balance=Nil Nos.

7 ICB-7: Widening & 1- (Km 6+000 March 08, Strengthening of Ranital- to Km 14+000 2010.     Kotla road Km 0.00 to km & Km 24+000 39.173 to Km 39+173) Length= 39.173 (Km) 2- (Km 0+000 July 07, to Km 6+000 & 2010.    ______Km 14+000 to Km 24+000) 8 ICB-8: Widening & 1- (Km 0+300 October     Strengthening of Kumarhatti- to Km 10+800) 14, 2009 Sarahan-Nahan road Km 2- (Km 10+800 April 13,     0.300 to Km 72.035 to Km 29+340) 2010 Length= 71.735(Km) 3- (Km 29+340 July 13, to Km 2010     54+340) 4- (Km 54+340 October     to Km 72+040) 13, 2010 9 NCB-9: Widening & 1- (Km 0+000 November     Strengthening of Draman- to Km 14+000 20, 2009 Sihunta road Km 0.00 to km 2- (Km 14+000 March 20, 24.00 to Km 24+000) 2010.     Length= 24.000 (Km) 10 ICB-10: Widening & 1- (Km 3+000 March 08, Strengthening of Bhawarna- to Km 12+000) 2010. Lambagaon Road Km 0.00 to     km 26.280 Length= 26.280 (Km) 2- (Km 0+000 September to Km 3+000 & 07, 2010. Km 19+000 to     Km 26+280)

3- (Km 12+000 December     to Km 19+000) 07, 2010.

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

Annex 14 - Appendix – C

Land Acquisition in respect of upgrading roads under Phase-I of HP State Roads Project

S.N Contract Package Mile Stone Handing over Status Date 1 Package No- ICB-1 1- (Km 41+300 to Km 50+426) May 08,2008 Compensation disbursed in all 6 villages (Una-Amb from Kms 2- (Km 5+600 to Km 18+180) August 07,2008 Compensation disbursed in all 10 villages 5+600 to Km 50+426) 3-(Km 18+180 to Km 41+300) February 07,2009 Compensation disbursed in all 19 villages

2 Package No- ICB-2 1- (Km 2+000 to Km 11+000) May 14,2008 Compensation disbursed in all 7 villages. (Una-Barsar from Kms 2- (Km 25+000 to Km 35+000) November 13,2008 Compensation disbursed in all 25 villages. 0+000 to Km 45+000) 3- (Km 0+000 to Km 2+000 February 13,2009 Compensation disbursed in all 11 villages. & Km 11+000 to Km 25+000) 4- (Km 35+000 to Km May 13,2009 All payments disbursed. 45+000) 3 Package No- ICB-3 1- (Km 51+000 to Km May 14, 2008 Compensation disbursed in all 13 villages. (Barsar- Jahu from Kms 65+000) 45+000 to 2- (Km45+000 to Km51+000 November 13, 2008 Compensation disbursed in all 10 villages Km 90+800) & Km65+000 to Km 67+250 3- (Km 67+250 to 73+000 & February 13,2009 Compensation disbursed in all 29 villages Km 79+000 to Km 88+000) 4- (Km73+00 to 79+000 & May 13,2009 Compensation disbursed in all 7vilages Km 88+000 to Km 90+800) 4 Package No- NCB-4 1- (Km 96+200 to Km August 10,2008 Compensation disbursed in all 5villages. (Jahu- Kalkhar from 101+800 Kms 93+440 to 2 - (Km 93+440 to Km 96+200 November 09,2008 Compensation disbursed in all 6 villages. Km 108+830) & Km 101+800 to Km 108+830) 5 Package No- ICB-5 1- (Km 20+000 to Km 30+000 June 05,2008 Compensation disbursed in all 26 villages. (Theog-Rohru from & Km 53+000 to K 68+000 Kms 0+000 to Modified to Km 5+000 to Km 80+600) Km 17+000 & Km18+000 to Km 31+000 2- (Km 35+000 to Km 45+000 February 04,2009 Compensation disbursed in all 13 villages. & Km 68+000 to Km 80+600) Modified to Km 45+000 to Km 67+684 3- (Km 30+000 to Km 35+000 June 04,2009 Compensation disbursed in all 5 villages & Km 45+000 to Km 53+000) Modified to Km 0+000 to 5+000 & Km67+684 to Km 75+684 4- ( Km 0+000 to Km 20+000) September 04,2009 Compensation disbursed in all 14 villages. Modified to Km 17+000 to 18+000, Km 31+000 to Km 45+000 & Km 75+684 to Km 80+684.

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

Annex 14 - Appendix – D

Land Acquisition in respect of upgrading roads under Phase-II of HP State Roads Project

S.No. Contract Package Mile Stone Handing Status over Date 1 Package No- ICB-6 ICB-6 (Sarkaghat to Km. 79+100 to Km. Payment disbursed in all 18 villages. Ghumarwin from Km 103+370 = 24.270 Km 61..420 to Km NCB-6 Payment disbursed in 17 villages out of 18 villages. 103.370) Km. 61+920 to Km. Only 1200 sqm. Area is to be acquired the acquisition 79+100 is being done through direct sale deed. Sufficient land is available with contractor.

2 Package No - ICB 7 1 (Km 6+000 to Km March 08, Disbursement made in all 21 villages. (Ranital to Kotla 14+000 and Km 24+000 2010 Road – From Km to Km 39+173) 0.000 to Km 39.173) 2 (Km 0+000 to Km July 07, 2010 Disbursement made in all 9 villages. 6+000 and Km 14+000 to Km 24+000) 3 Package No – ICB 8 1 (Km 0+300 to Km October 14, Disbursement made in all 4 villages. (Kumarhati – Sarahan 10+800) 2009 – Nahan Road from 2 (Km 10+800 to Km April 13, 2010 Compensation disbursed in all 5 villages. Km 0.300 to Km 29+340) 72+035) 3 (Km 29+340 to Km July 13, 2010 Compensation disbursed in all 10 villages. 54+340) 4 (Km 54+340 to Km October 13, Compensation disbursed in all 3 villages. 72+040) 2010 4 Package No. NCB 9 1 (Km 0+000 to Km November 20, Compensation disbursed in all 7 villages. (Draman to Sihunta 14+000) 2009 Road from Km 0.000 2 (Km 14+000 to Km March 20, to 24.000) 24+000) 2010 5 Package No ICB 10 1 (km 3+000 to Km March 08, Compensation disbursed in all 19 villages (Bhawarna to 12+000) 2010 Lambagaon from Km 2 (Km 0+000 to Km September 07, Compensation disbursed in all 10 villages. 0.000 to Km 26.280) 3+000 and from Km 2010 19+000 to Km 26+280) 3 (km 12+000 to Km December 07, No private land to be acquired. Forest land transferred 19+000) 2010 in 8 villages.

INDIA: Himachal Pradesh State Roads Project (Ln. 4860-IN) Aide-Memoire Implementation Support Mission Jan 17-20, 2017

Annex 15 - Computerization of PWD

(A separate annex is not required in this mission)