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World Bank Document OFFICIAL L go,) IA DOCUMENTS IThe World Bank New Delhi Office Telephone: 24617241/24619491 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 70 Lodi Estate Mailing Address: P.0 Box 416 INTERNATIONAL DEVELOPMENT ASSOCIATION New Delhi - 110 003 India May 23, 2016 Public Disclosure Authorized Mr. Arvind Jadhav Chief Secretary Government of Karnataka Vidhana Soudha Bangalore Karnataka, India Dear Sir: INDIA: Second Karnataka State High way Improvement Project (Loan No. 8022-IN) Amendment to the Project Agreement We refer to the Loan Agreement dated May 30, 2011 between India (the "Borrower") and the International Bank for Reconstruction and Development (the "Bank") Public Disclosure Authorized (the "Loan Agreement"); the Project Agreement between the Bank and the State of Karnataka ("Karnataka") of the same date (the "Project Agreement"); and the supplemental letter of the same date from Karnataka to the Bank regarding the results framework and monitoring indicators, agreed further to the Project Agreement (the "Supplemental Letter"), all for the Second Karnataka State Highway Improvement Project (the "Project"). We also refer to the letter from the Department of Economic Affairs, Ministry of Finance, Government of India dated April 26, 2016 requesting a restructuring of the Project involving amendments to the Loan Agreement and the Project Agreement to facilitate implementation of the Project. We are pleased to inform you that after due consideration, the Bank has agreed with the above request and hereby proposes to amend the Project Agreement as follows: Public Disclosure Authorized (A) Section 1.9 of the Schedule is amended to read as follows: "9. Karnataka shall. no later than December 31, 2017, fully operationalize its road asset management system to provide inputs to prioritize its road investment and management program." (B) Section 1.10 of the Schedule is amended to read as follows: "10. Karnataka shall, on an annual basis throughout the duration of the Project, cause KRDCL to develop a consolidated investment and borrowing plan to improve selected corridors under the Core Road Network commencing December 31, 2017, and thereafter implement such plan taking into account the Bank's comments thereon." Public Disclosure Authorized The attachment to the Supplemental Letter regarding Results Framework and Monitoring Indicators agreed further to Section II.A of the Schedule to the Project Agreement, is revised to read as set forth in the Attachment hereto. Headquarter:: Washington DC -: USA Mr. Arvind Jhadav -2- May 23, 2016 Except as specifically amended hereby, all other provisions of the Project Agreement shall remain in full force and effect. The Loan Agreement is similarly being amended as reflected in an amendment letter to the Loan Agreement of even date. Please confirm your agreement to the foregoing by signing and dating the form of confirmation set forth below, and returning one fully countersigned original of this letter to us. Upon receipt by the Bank of: (i) a duly countersigned original of this letter by the authorized representative of Karnataka; and (ii) a duly countersigned original of the amendment letter to the Loan Agreement by the authorized representative of the Borrower, this amendment letter shall become effective as of the date of the last countersignature of the above two amendment letters. Yours sincerely, Michael Haney Acting Country Director, India CONFIRMED: STATE OF KARNATAKA By: By: ~ (ARVIND MADRWA) Name: Chief Secretary Govemment of Kamataka Title: Date: 2- c> -OI, Encl. Mr. Arvind Jhadav -3- May 23, 2016 cc: Mr. Subhash Chandra Garg, Executive Director, The World Bank Mr. Neeraj Mittal, Sr. Advisor to Executive Director, The World Bank Department of Economic Affairs, Ministry of Finance, Government of India Mr. Bhaskar Dasgupta, Director, MI Division Mr. S. G. Dastidar, CAA &A, DEA, Ministry of Finance, New Delhi Ministry of Road Transport and Highways, New Delhi Mr. D. 0. Tawade, Chief Engineer (Coordinator II) Government of Karnataka Mr. M. R. Kamble, Principal Secretary, Public Works Department Mr. I. S. N. Prasad, Principal Secretary, Finance Department Mr. Manivannan. P, Chief Project Officer, KSHIP Project Implementation Unit Mr. K. S. Krishna Reddy, MD, Karnataka Road Development Corporation Ltd. Mr. Tyagaraja, Project Director, KSHIP Project Implementation Unit ATTACIINIEN'r INDIA: Second Karnataka State Highway Improvement Project Annex 1: Revised Results Framework and Monitoring Project Development Objective (PDO): To accelerate the development of the Core Road Network through leveraging public sector outlays with private sector financing. and improving the institutional effectiveness ofthe road sector agencies to dcliver effective and safe roads to users. Cumulative Target Values** Respon Description sibility (indicator definition Unit of Data PDO Level Results IMeasur Baseline Freque Source/ for etc.) Indicators* c YR I YR 2 YR3 YR 4 YR5 YR6 YR7 ncy Method Data ology Collecti Achievement by GOK USS 200.00 200.00 400 Every PWD PWD, The indicator will in generating at least milli (Currently (KRDC (KRDC two Annual KRDCL measure private sector US$400 million in on raised by LKSHI L. + years Report. debt and equity raised new private sector KRI)CL) PI1) KSHIP KRDCL as part of the capital for CRN 11) Annual 133FOMT concession improvement and Report and by KRDC- as management by end- part of the co- of-project (EOP). financing, and b. KRD)CI. on its o' n through parallel cDat transactions. 15 percent reduction US$ VOC: VOC: When Asset PWD Will measure the in Vehicle Operating per USSO.26 US$0.2 the road Manage impact of the proJect Costs and 25 percent vehic TT: 0 construc ment on road users reduction in Travel le- US$0.074 TT: tion is Unit Time Cost on project Kms US$0.0 complet corridors by EOP 6 ed 30 percent reduction Num 30 (on 30 27 21 Every M&E PWD Will measure abilit% in road-accident ber Belgaum two Report asveof partthe project of t to shox% athe related fatalities on of to years on safe measureable results on safe corridor pilots by fatali Hungund corridor road safety EOP. ties corridor)* s pilot per (ARVIND AFV Chief V onnrr, Asset PWD Will measure Roads in good and Km 50% 50% 65% Every Manage expansion of road fair condition as a (%) atwo quality and expansion share of total years ment in the state classified roads Unit INTERMEDIATE RESULTS Intermediate Result (Component One): Road Improvement Component Every Project PWD Roads Constructed. Km 0 1198 Progress non-rural Year Report 534 Every Project PWD Completion of Km / Contracts 100 269 Progress and Procure awarded kms km Year upgrading Report ment road road widening of about constr mileston constr 534 km. through es uction uction item-rate contracts substa comple ntially ted compl eted Every Project PWD Completion of Km / RFQ Devel 301 O&M Year Progress upgrading. widening Procure issued opers Km phase started Report of about 301 km. ment hired Constr through DBFOMT mileston uCtion (Annuity) eted Concessions , Every Project PWD/KR Land acquisition Percenta 0% 100% Year Progress DCL and resettlement ge Implementation Report (a) Land acquisition completed Every Project PWD/KR Land acquisition Percenta 0% 100% Year Progress DCL and resettlement ge Implementation Report (b) Key R&R assistance provided (alternative housing and livelihood support) Twice in R&R PWD/KR Land acquisition Percenta 0% 80% the Impact DCL and resettlement ge Implementation _ _. I I ,1ARVINDJADHAV, Chief Secretary Govemment of Kamataka (c) Improve the project Assessme living standards period nt Report (measured percent PAFs with increased/restore d income in real terms Environmental Every Project PWD Management Year Progress Implementation No 0 AsRepor of EMP as award PIU(HQ I field agreed. O ed ) division (b) ISO 14001 certified certified certification obtained for operational units Intermediate Result (Component Two): Highway Financing Modernization Component KRDCL generates Passing KRDC Tolling Every Project KRDCL additional road user of L started on Year Progress revenues and commits Policy Tolling issues selected Report them for mobilizing and Policy debt or roads debt financing (via Instituti develo securitization) and/or onal transac making payments for Action tion PPP transactions backed by toll revenu es Completion of Km / Screening DPR Co- Construct Every Project KRDCL upgrading, widening commenc complet financi ton Year Progress and 0 & M of 363 km Procure ed ed, and ng Complete Report Iransac arrange d throughthouhcofiacig co-financing milestonnent tion mcnt arrangements esto Adviser establis engage hed, d Intermediate Result (Component Three): Road Safety Improvement Component .(ARVIND JADHAV) Chief Secretary Govemment of Kamataka Every M&E PWD/ Policy Lead Consul Multi- Multi- Minimu Year Report Road and Agency tant sector sector m 3 star on Safe Safety Instituti Established service interv interve rating Corridors Cell al plot s ntion achieved Effective cions cprridor procur tion comple through Pilot implementation of A dentified ed imple ted iRAP Safe Corridor Pilot mentat investigat Annual ion ion Report of started Road safety Cell Intermediate Result (Component Four): Sector Policy and Institutional Developmen Component Road Assessme Policy IDSAP and Key Studie and GAAP consult nt of Compl IDSAP Endorsed ant Satisfactory Instituti eted- and S onal services implementation of Actions procure atd GAAP agreed Action Plan d results for institutional Reco made mmcn development and governance ded action improvement 5 ___________ taken _____ _____ _____ _____ ND JADHAV) SfsecretarY mentof Karmataka.
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