2 Project Description

Consultancy Services for Preparation of Feasibility Report for Two-laning of Km. 0.000 to Km.53.000 of SH- Public Works Department 2B section comprising the Palari-Makrana-Khatu(Highway-I) inclusion of Makrana-Bidiyad-Parbatsar Government of Rajasthan from Km 0.000 to Km 22.300 of SH-2D (Pkg-11) in the State of Rajasthan

EXECUTIVE SUMMARY

0.1 BACKGROUND

The work for Consultancy Services for Preparation of Feasibility Report for Two-laning of Km. 0.000 to Km. 53.000 of SH-2B Manglana-Makrana-Khatu comprising the section from Manglana to Khatu (the “Highway-I”) inclusion of *Makrana-Bidiyad- Parbatsar SH-2D from Km 0.000 to Km 21.000 connecting Makrana (SH-2B) to Parbatsar (SH-21A) in the State of Rajasthan has been awarded to YONGMA Engineering Company Ltd in consortium with M/s. STERLING Indo Tech Consultants P Ltd, by Public Works Department, Government of Rajasthan vide letter no.F- 7(25)/PPP/2014-15/Package-11/D-21, dated on 21-08-2014. The commencement date of the project is 10th September 2014.

0.2 INVESTIGATIONS & EVALUATIONS

Feasibility Study was carried out by YONGMA Engineering Company Ltd in consortium with M/s. STERLING Indo Tech Consultants P Ltd and the report evaluates Financial Viability in terms of Financial Internal Rate of Return (IRR) of the homogeneous road sections for optimum upgrading. The above evaluation has been based on various surveys and investigations carried out during the course of the study and these include traffic, topography, pavement condition, inventory and condition of road/structures and material investigations. Special attention has been given to maximize the use of existing pavement and available land and use of local resources. Beside, due care is also taken to ensure use of modern construction technology to achieve the desired quality and performance requirements and attain the intended level of service.

0.3 PROJECT DEVELOPMENT DESCRIPTIONS

0.3.1 General

The Project Road is comprises of two existing road sections. The main part of the Project Road startsfrom Manglana at Km. 0.000 and ends at the junction of SH-19 at Khatu at Km. 52.000. The project road passes through Nagaur district of Rajasthan and the major settlements along the project corridors are Manglana, Makarana, Borawar, Kalwa, Manana, Manani, Gorawa, Bolathana, Ranigaon Khatu Khurd. Inclusion of Part to the Project Road starts from Makrana at Km. 0.000 and ends at the Parbatsar at Km. 22.424 and the road passes through Makrana, Bidiyad, Kinsariya, Narwa, Parbatsar.. A summary of the project corridor consist the following configuration as given in Table 0.1

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Table 0.1: Project Length

Sl. Description Length (Km) No.

Manglana-Makrana-Khatu (SH-2B)

1 3.75m wide carriageway with 1.0m to 1.5m Earthen shoulder 34.577(66.65%)

2 5.5m wide carriageway with 1.0m to 1.5m Earthen shoulder 2.495 (4.81%)

3 7.0m wide carriageway with 1.0m to 1.5m Earthen shoulder 8.998(17.35%)

4. 10.0 m wide carriageway with 1.0 m to 1.5 m earthen Shoulder 0.250 ( 0.48% )

5. 14.0m wide carriageway with 1.0m to 1.5m Earthen shoulder 4.005 (7.72%)

6. 7.00m wide R.O.B. with 1.5m Footpath 1.550 (2.99%)

Total 51.875 (100%)

Makrana-Bidiyad-Parbatsar (ODR-8)

14.315 1 5.5m wide carriageway with 1.0m to 1.5m Earthen shoulder (63.62%)

2 7.0m wide carriageway with 1.0m to 1.5m Earthen shoulder 8.185 (36.38%)

Total 22.500 (100%)

0.3.2 District and Nodal Towns/Villages on the Project Road

The project road passes through Nagaur district of Rajasthan State. The nodal town/villages on major part of the project road (SH-2B) are Manglana, Makrana, Borawar, Kalwa, Manana, Manani, Gorawa, Bolathana, Ranigaon, Khatu Khurd and in the included part (SH-2D) are Makrana, Bidiyad, Kansariya, Narwa, Parbatsar.

0.3.3 Traffic Volume

The summary of the Average Annual Daily Traffic (AADT) for the project stretch is given in Table 0.2

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Table 0.2: Average of Traffic Survey Data in October 2014 & January 2015(AADT) Km Km Km Type of Vehicles 1+750 44+000 13+000 Car,jeep,Van or Light Motor vehicle or Tractor 1884 361 632 with Trolley carrying Non-Agriculture produce Light commercial vehicle, Light Goods Vehicle 369 182 209 or mini Bus Bus or truck 388 114 140 Heavy construction Machinery (HCM) or Earth Moving Equipment (EME) or multi Axle 400 82 160 Vehicle (MAV)(3++) OSV 0 0 0

Total Tollable Nos 3041 739 1141

Total Tollable PCU 5734 1267 1971

Total Vehicles at each location 5428 1758 3471

Total PCU at each location 7176 1911 3395

0.3.4 Proposed Developmental Plan/Construction features are summarised as here under:

a) Widening scheme can be summarised as given in Table 0.3

Table 0.3: Summary of Widening Scheme-SH2B

Sl. Length Description Remarks No. (km) A. Existing Road Width 3.75m (Single Lane)

Widening of Single Lane to 2-Lane with paved 2 Lane with paved shoulder shoulder & Strengthening with Bituminous Course IA Widening & Strengthening with 0.200 (DBM+BC) + 2.5m Granular Shoulder with extension Bituminous Course (DBM+BC) of Drainage Layer

Reconstruction of Single Lane & Widening to 2-Lane + IIA 2 Lane Reconstruction 27.243 2.5m Granular Shoulder with extension of Drainage Layer

New Construction of Two lane Bypasses with EARTH WORK IN Embankment & Subgrade, Non-Bituminous 2 Lane New Construction IIIA 7.970 sub base & Base Course (WMM+GSB) & Bituminous (Bypasses) Base Course (DBM+BC) + 2.5m Granular Shoulder with extension of Drainage Layer

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Reconstruction of Single Lane & Widening to 2-Lane + 2 Lane Reconstruction 1/2 Width IVA 0.672 2.5m Granular Shoulder with extension of Drainage RHS Layer New Construction of Pavement for Toll Plaza at Km VA Toll Plaza-Rigid Pavement 0.300 44+000

B. Existing Road Width 5.50m (Intermediate Lane)

Reconstruction of Intermediate Lane & Widening to 2- 2 Lane Reconstruction (Flexible IB 0.415 Lane + 2.5m Granular Shoulder with extension of Pavement) Drainage Layer

Reconstruction of Intermediate Lane & Widening to 2- 2 Lane Reconstruction (Rigid IIB 0.450 Lane with Paved shoulder +1.0 m Granular shoulder Pavement) with extension of Drainage Layer

C. Existing Road Width 7.0m (Two Lane)

Widening to two lane with paved shoulder and 2 Lane Strengthening with Strengthening with Bituminous Course (DBM+BC) on IC Bituminous Course (DBM+BC) 6.920 existing 2 lane & Provisioning of 1.00m Granular (Ex. 7.0m) Shoulder,

Reconstruction & Raising of two lane to two lane with IIC 2 Lane Reconstruction 0.720 paved shoulder. Widening to 10 m wide rigid pavement with granular IIIC 2 Lane Rigid Pavement 0.810 shoulder..

2 Lane to Two Lane with paved shoulder Widening & IVC 0.300 2 Lane Exiting to 2Lane with paved shoulder Strengthening with Bituminous Course ( DBM+BC) ( Ex. 7.0m)

New Construction of Pavement for Toll Plaza at Km VC Toll Plaza-Rigid Pavement 0.300 1+750 ROB Under Construction by VIC 1.000 No new work Proposed RUIDFCO at Km 3+660

Strengthening with Bituminous Course (DBM+BC) on VIIC Strengthening of Existing 2 lane 0.050 existing 2 lane & Provisioning of 2.50m Granular Shoulder,

D. Existing Road Width 10.0 m (Two Lane+ Paved Shoulder)

2-Lane + Paved Shoulder Strengthening with Bituminous Course (DBM+BC) & ID Strengthening with Bituminous 0.250 Provision of 1.0m Gravel Shoulder, Drainage Layer Course (DBM+BC) (Ex. 10.0m) Not Extended

E. Existing Road Width 14.0 m (Four Lane)

4 Lane Strengthening with Strengthening with Bituminous Course (DBM+BC) & IE Bituminous Course (DBM+BC) 1.150 Provisioning of 2.50m Gravel Shoulder, Drainage (Ex. 14.0m) Layer Not Extended

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4 Lane Rigid Pavement –No IIE 2.700 Existing Rigid Pavement in Good Condition Work ROB Under Construction by IIIE 0.550 No new work Proposed RSRDCC at Km 7+875 Total Length 52.000 KM

Summary of Widening Scheme-SH-2D

Length Sl. No. Description Remarks (km)

A. Existing Road Width 5.50m (Intermediate Lane)

Widening of Intermediate Lane to 2-Lane 2 Lane Widening & Strengthening &Strengthening with Bituminous Course IA with Bituminous Course 1.042 (DBM+BC) + 2.5m Granular Shoulder with (DBM+BC) extension of Drainage Layer

Reconstruction of Intermediate Lane & IIA 2 Lane Reconstruction 8.696 Widening to 2-Lane + 2.5m Granular Shoulder with extension of Drainage Layer

Widening of Intermediate Lane to 2-Lane 2 Lane Widening & Strengthening &Strengthening with Non Bituminous Course IIIA with Non Bituminous Course 0.126 (WMM+DBM+BC) + 2.5m Granular (WMM+DBM+BC) Shoulder with extension of Drainage Layer

Reconstruction of Intermediate Lane &

2 Lane Reconstruction 1/2 Width Widening to 2-Lane + 2.5m Granular Shoulder IV A 0.425 RHS with extension of Drainage Layer

Reconstruction of Intermediate Lane &

2 Lane Reconstruction 1/2 Width Widening to 2-Lane + 2.5m Granular Shoulder VA 0.605 LHS with extension of Drainage Layer

New Construction of Pavement for Toll Plaza VIA Toll Plaza-Rigid Pavement 0.300 at Km 13+000

New Construction of Two lane Bypasses with EARTH WORK IN Embankment & Sub- 2 Lane New Construction grade, Non-Bituminous sub base & Base VIIA 3.000 (Bypasses) Course (WMM+GSB) & Bituminous Base Course (DBM+BC) + 2.5m Granular Shoulder with extension of Drainage Layer

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Length Sl. No. Description Remarks (km)

B. Existing Road Width 7.0m (Two Lane)

2 Lane Strengthening with Strengthening with Bituminous Course IB Bituminous Course (DBM+BC) 6.473 (DBM+BC)& Provisioning of 2.50m Gravel (Ex. 7.0m) Shoulder, Drainage Layer Not Extended

Reconstruction & Raising + Provisioning of IIB 2 Lane Reconstruction 0.200 2.50m Gravel Shoulder, Drainage Layer not Extended

2 Lane Strengthening with white Strengthening with White Topping over IIIB topping - Rigid Pavement (Ex. 0.720 Existing PQC 7.0m)

Reconstruction of Two lane Rigid Pavement 2 Lane Reconstruction-Rigid IVB 0.150 with 1.5m paved shoulder and 1.0m Granular Pavement Shoulder with extension of Drainage Layer

Total Length 22.300 KM

0.3.5 Bypasses and Realignment

As the existing road passes through the villages having width and geometry constraints requires bypasses. The existing road (SH-2B) & (SH-2D) passes through villages requires bypass as tabulated below 0.4

Side to Section of Project Road Name of Village Length Existing Road

1. Kalwa LHS 1.550

2. Manana RHS 1.420 Manglana-Makrana-Khatu 3. Manani LHS 1.550 (SH-2B) 4. Gorawa RHS 1.300

5. Ranigaon LHS 2.150

Makrana-Bidiyad- 1. Bidiyad LHS 3.000 Parbatsar (SH-2D)

0.3.6 IRC: 37-2012 Method of Flexible Pavement Design –Widening and for New construction

Pavement composition thicknesses were designed for widening, reconstruction and new construction sections as per IRC: 37-2012. For strengthening of existing flexible road pavement,

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overlay thickness were established as per IRC: 81-1997. At Toll Plaza locations provision of rigid pavement is given and pavement composition was determined as per IRC: 58-2011.

The flexible pavement thicknesses required for pavement widening and New Pavement of stretches is given in Table 0.5 & Table 0.6

Table 0.5: Flexible Pavement Thickness for Widening of Existing Lane, New pavement and Reconstruction Stretches

Design Design CBR of Viscosity Proposed Minimum Pavement Existing Chainage Traffic Traffic Subgra Grade of Thickness (mm) (MSA) (MSA) de (%) Bitumen From To 8 Years 15 Years BC DBM WMM GSB Total

16+000 0+000 34 76 12.50 VG 30 40 80 250 200 570 (SH-2B)

51+875 16+000 5 10 12.50 VG 30 40 50 250 200 540 (SH-2B)

22+500 0+000 10 22 12.50 VG 30 40 50 250 200 540 (SH-2D)

0.3.7 IRC: 81-1997 Method of Flexible Overlay – For Strengthening of Existing Pavement

The average characteristic deflection (Dc) values to be used for design purposes have been worked from BBD survey. The thicknesses are deduced from Figure 9 of IRC 81-1997 in terms of bituminous macadam construction.

The overlay thickness calculated and proposed is presented in Table 0.6

Table 0.6: Proposed Overlay Thicknesses on existing lane

Design Characteristic Description Traffic Deflection BC DBM Dc(mm)

For Stretches proposed for Strengthening 34 1.42 40mm 65 mm only (SH-2B)

For Stretches proposed for Strengthening 10 1.36 40mm 50 mm only (SH-2D)

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0.3.8 IRC: 58-2011 Method of Rigid Pavement Design – For Toll Plaza locations and Rigid Pavement Stretches

0.3.9 Pavement composition thickness for rigid pavements at Toll plaza locations and Rigid Pavement Stretches is given in Table 0.7.

Table 0.7: Rigid Pavement Composition at Toll Plaza

Material Type Thickness (mm)

Pavement Quality Concrete (M-40) 300

Dry Lean Concrete (M-10) 150

Granular Sub-base 150

Subgrade 500

0.3.10 Junction Improvement

SH-2B

Existing 13 major and 28 minor junctions are proposed to be improved as a part of up-gradation project. All the 41 junctions have been proposed to be upgraded as a priority intersection.

SH-2D

Existing 5 major and 25 minor junctions are proposed to be improved as a part of up-gradation project. All the 30 junctions have been proposed to be upgraded as a priority intersection

0.3.11 Proposal of Bridges, Culverts and other Structures

There is no major and minor bridge on the project road. All the structures are proposed to meet the requirement of configuration of 2-Lane with paved / granular shoulder width as per the provision given in IRC: SP: 73.

a) Major & Minor Bridges

There is no any major/ minor bridge along the Project Highway.

The development proposal for all the existing bridges is tabulated in Table 0.8.

Table 0.8: Summary of Development of Existing Bridges

Length Average Width of Location Type of Length Number of Span vertical carriageway (Chainage) Structure (m)* of Spans (m) clearance* (m) between kerbs (m)

-NIL-

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b) Culverts

There are total 13 existing culverts in the proposed road corridor. A summary of the development proposal is given in Table 0.9

Table 0.9: Summary of Development of Culverts

Existing Proposed Proposal Slab Pipe Arch Slab Pipe Box

Retained 1 - - - - -

Reconstruction - 5 - - 5 -

Widening 3 - - 3 - -

New Culvert - - - - 22 -

Sub –Total 4 5 - 3 27 -

TOTAL 9 30

c) ROB at Railway line crossing

The project road crosses railway tracks at three locations as level crossing.

Table 0.10: List of Railway crossing and its Development Proposal

Track Detail

S.No. Location Gauge Type of LC No. Proposal Crossing

1 3+660 BG( Single) Level LC-34 Already Two Lane Crossing ROB under Construction

2 7+875 BG( Single) ROB LC-36 Already Newly Constructed Two Lane ROB with Poor Geometry Opened for Traffic 3 15+300 BG( Single) Level LC-41 TVU-22458 Crossing

As per the Railway records the TVU (Train Vehicle Unit) at this level Crossing (LC-41) is 22458 (Year-2011). According to IRC 62-1976, “Grade separations should be provided across existing railway crossings if the product of ADT (fast vehicles only) and the number of trains per

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day exceeds 50,000 within the next 5 years. Table below presents the projection of the TUV (available as per Railway record) for next 5 years (Post Concession)

Considering 5% growth in Year Remarks traffic

2011 22,458 Data Available

2014 0 25,998 Enhanced @5%

In next 5 years; 2019 5 33,181 enhanced @5%

From the above table, as it does not exceeds the threshold level (50,000 TUV’s) ROB is not warranted.

0.3.12 Proposal for Underpass/Flyover

No underpass or flyover is proposed along the project road.

0.3.13 Bus bays and Bus Shelters

Bus Bays and Bus Shelters are tentatively proposed as per the recommendations of IRC:80-1981 and on both sides of all built-up locations. However, the exact locations to be decided on ground in consultation with Independent Engineers/Client.. Table 0.11: List of Bus Bays and Bus Shelters

Design Remarks Side Sl. No. Chainage Settlement (LHS/RHS) (Km) On SH 2B 1 0.300 LHS Manglana Bus Shelter 2 0.350 RHS Manglana Bus Shelter Bus Bay with Bus 3 14.700 LHS Borawar Shelter Bus Bay with Bus 4 14.730 RHS Borawar Shelter 5 51.900 LHS KhatuKhurd Bus Shelter 6 51.950 RHS KhatuKhurd Bus Shelter On SH 2D Industrial Area 7 4.250 LHS Bus Shelter Gunawati Industrial Area 8 4.300 RHS Bus Shelter Gunawati 9 13.650 LHS Kinsariya Village Bus Shelter 10 13.700 RHS Kinsariya Village Bus Shelter 11 16.150 LHS Khidarpura Village Bus Shelter 12 16.200 RHS Khidarpura Village Bus Shelter

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0.3.14 Toll Plaza

Location of toll plazas has been proposed based on the traffic dispersal pattern at the respective homogenous sections, road geometry and vertical profile of the road and the surrounding area. The location and details of the toll plaza is given in Table 0.12.

Table 0.12: Details Toll Plaza

Toll Plaza Total Tolling Location Design Length Bypass >5 Structure >5 Homogenous as per From km to km Length Cr., if any Cr., if any Section # Existing (Km) Km. Stone

Km 0+000 to HS-1 (SH-2B) Km 1+750 21.000 - - 21.000 21+000

Km Km 21+000 to HS-2(SH-2B) 28.850 2.150 - 31.000 44+000 52+000

Km 0+000 to Km 22+300 of SH-2D Km HS-3(SH-2D) and Km 9+800 30.990 2.510 - 33.500 13+000 to21+000 of SH- 2B

Total Length 80.840 4.660 0.000 85.500

0.3.15 The project cost on above items has been worked out based on development proposal of the project corridor. Total Cost of the Project as assessed at this stage is given in Table 0.13.

Table 0.13: Abstract Cost Estimate

Makrana- Total Amount AMOUNT S.No. ITEM OF DESCRIPTION Manglana-Khatu Bidiyad (INR) (Cr.) Parbatsar

1 SITE CLEARANCE 3,239,996 1,077,920 4,317,916 0.43

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Makrana- Total Amount AMOUNT S.No. ITEM OF DESCRIPTION Manglana-Khatu Bidiyad (INR) (Cr.) Parbatsar

2 EARTHWORKS 82,944,315 24,892,906 107,837,221 10.78 SUB-BASE COURSE & 3 BASE COURSE 293,047,156 111,347,627 404,394,783 40.44 BITUMINOUS & RIGID 4 PAVEMENT WORKS 383,552,812 154,149,597 537,702,408 53.77

5 STRUCTURES - - - -

a) Culverts 15,552,453 9,582,358 25,134,812 2.51

a) Minor Bridge - - - -

c ) Major Bridge - - - -

d ) R.O.B - - - -

6 C.C. PAVEMENT 28,450,951 15,664,677 44,115,628 4.41 DRAINAGE & 7 PROTECTION WORK 41,043,783 10,636,018 51,679,802 5.17 JUNCTION 8 IMPROVEMENT 60,163,788 40,907,983 101,071,770 10.11 TRAFFIC SIGNS, MARKINGS & OTHER 9 ROAD 32,673,892 15,369,223 48,043,115 4.80 APPURTENANCES

10 TOLL PLAZA ( 3 Nos.) 45,000,000 22,500,000 67,500,000 6.75 ARBORICULTURE (

11 Bus Shelters) & (Bus 5,048,818 2,649,880 7,698,699 0.77 Bay) Cost of Development of

12 Existing Road along 68,255,201 18,787,650 87,042,851 8.70 Proposed Bye Passes CIVIL CONSTRUCTION 13 COST 1,058,973,166 427,565,838 1,486,539,004 148.65 Add 15% as per Clause 3.16 of RFP (Including Provision for Physical and Price contingencies, 14 intrest during 158,845,975 64,134,876 222,980,851 22.30 construction and other Financing cost , pre Construction expenses,

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Makrana- Total Amount AMOUNT S.No. ITEM OF DESCRIPTION Manglana-Khatu Bidiyad (INR) (Cr.) Parbatsar etc. on Item No. 13

TOTAL PROJECT 15 COST ( A ) 1,217,819,141 491,700,714 1,709,519,854 170.95 PROJECT COST PER 16 KM. 23,419,598.86 22,049,359.36 23,008,342.59 2.30 0.3.16 Results of Financial Analysis The main objective of financial analysis is to assess the likely returns to the investors under realistic conditions/assumptions. In the present studies the financial viability of the project is assessed, assuming minimum Equity IRR to be 15%, on the basis of project’s financial internal rate of return on investments, which is estimated on the basis of cash flow analysis. Financial indicators are presented in Table 0.14. *All figures are in INR Crore

Operating Year (count) 1 2 3 4 5

Revenue Toll Section I: 7.1 7.8 8.8 9.8 10.6

Toll Section II 3.2 3.6 4.1 4.5 5

Toll Section III 4.8 5.5 6 6.7 7.4

Sub total 15.1 16.9 18.9 21 23

Local traffic impact -1 -1.1 -1.2 -1.4 -1.5

Total Realisable Fee 14.1 15.8 17.7 19.6 21.5

Total Revenue 14.1 15.8 17.7 19.6 21.5 Operating expenditure

Toll plaza and O&M 2.8 2.9 3 3.3 3.5 expenses

Routine maintenance 2.1 2.2 2.4 2.5 2.6

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Periodic maintenance - - - - -

Strengthening cost - - - - -

Other office expense - - - - -

Electricity and 0.4 0.4 0.4 0.4 0.5 patrolling

Insurance 0.3 0.4 0.4 0.4 0.4

Operating exp – 5.6 5.9 6.2 6.6 7 Highway EBITDA 13.2 15 17.2 19.3 21.4

Based on the above financial projections, profitability of the Project has been calculated as below:

Project IRR – 9.7%

Equity IRR – 8.3%

As per the Government of India’s Guidelines on ‘Viability Gap Funding (VGF)’, the Concessionaire is eligible to approach Government of India (GoI) for viability gap funding support for the project. Under the scheme, GoI may provide financial support towards the project cost.

From the analysis discussed above, the equity IRR for the project is only 8.3% much below the desired IRR of 15%. From the detailed financial model it was analysed that the Equity IRR of 15% is achieved with a VGF >40%.

0.3.17 RECOMMENDATIONS The Project is not financially viable. It is recommended to take up the project on other than PPP(VGF).

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