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BIHAR RURAL ROADS PROJECT Public Disclosure Authorized Document of The World Bank FOR OFFICIAL USE ONLY jjt u J Public Disclosure Authorized Report No. 2986-IN Public Disclosure Authorized INDIA STAFF APPRAISAL REPORT BIHAR RURAL ROADS PROJECT Public Disclosure Authorized October 10, 1980 Public Disclosure Authorized Transportation Division South Asia Projects Department This document has a restricted distribution and may be used by recipients oniy in tm pwiiutmanIe UTur their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS US$1 = Rs 8.4 Rs I = US$0.12 Rs 1 million = US$119,048 SYSTEM OF WEIGHTS AND MEASURES: METRIC Traditional measures and terms: 1 Tola = 11.66 grams 1 Seer = 80 Tola = 933 grams 1 Maund = 40 seer = 37.32 kg 1 Quintal = 100 (usually 100 kg) 1 Lakh = 100,000 1 Crore = 10,000,000 Pucca Road - an all-weather road Katcha Road - a fair weather road PRINCIPAL GLOSSARY OF ABBREVIATIONS ARDC - Agricultural Refinance and Development Corporation CRRI - Central Road Research Institute DBST - Double Bituminous Surface Treatment ERR - Economic Rate of Return FY - Financial Year GOB - Government of Bihar GOI - Government of India IR - Indian Railways IRC - Indian Roads Congress PWD - Public Works Department of Bihar REO - Rural Engineering Organization of Bihar TEC - Technical Examiner's Cell INDIA AND GOB FISCAL YEAR April 1st - March 31st FOR OFFICIAL USE ONLY INDIA STAFF APPRAISAL REPORT BIHAR RURAL ROADS PROJECT Table of Contents Page No. I. THE TRANSPORT SECTOR .................................... 1 A. The Transport Sector in India and Bihar .... ........ 1 B. The Transport Modes in Eastern India and Bihar ..... 2 II. THE BIHAR HIGHWAY SECTOR ................................ 6 A. Bihar in the Indian Context ........................ 6 B. The Highway Network and Highway Traffic .... ........ 7 C. The Administration of Highways ..................... 8 D. Highway and Rural Road Planning and Finance .... .... 8 E. Technical Aspects of Road Construction and Maintenance ...................................... 9 III. BANK GROUP LENDING IN BIHAR ............................. 10 IV. THE PROJECT ....................................... 11 A. Background ...................................... 11 B. Project Objective .................................. 11 C. Project Description . ...............................12 D. Cost Estimates ..................................... 15 E. Execution of the Project ......... .................. 16 F. Project Monitoring .................................. 17 G. Procurement ........................................ 18 H. Financing and Disbursements ...... ..................19 V. ECONOMIC EVALUATION . ....................................19 A. Methodology, Costs and Benefits ..... ...............19 B. Economic Rate of Return ............................ 21 This report is based on information provided by the Governments of India and Bihar, as collected by past missions during 1978 and 1979, and on the findings of an appraisal mis,sion in March 1980, consisting of H. Sydney Thriscutt (Highway Engineer) and Max Pulgar-Vidal (Economist). It includes also the findings of Mark. Baird (Economist, New Delhi Office), Dr. T. H. Mabbett (Consultant, Agriculturalist) and Dr. J. D. G. Howe (Consultant, Transport Technology Specialist) who visited Bihar at different times during project preparation. This document has a restricteddistribution and may be used by recipientsonly in the performanceof their official duties. Its contenst may not otherwisebe disclosedwithout World Bank authorization. - ii1 - Table of Contents (continued) C. Project Beneficiaries ........... ................... 22 D. Project Risks ...................................... 22 VI. AGREEMENTS AND RECOMMENDATIONS .......................... 23 TABLES 1. Road Network in Bihar and India 2. Bihar Motor Vehicle Statistics 3. Non-Motorized Transport in Bihar (1977) 4. Vehicle, Plant and Equipment Fleets of PWD and REO 5. Annual Expenditures on Roads of REO and PWD 1974 to 1980 6. Schedule of Project Roads 7. Schedule of Plant and Equipment for REO Road Construction and Maintenance 8. Schedule of Materials Testing and Survey Equipment 9. Project Costs by Year 10. Estimated Schedule of Disbursements 11. Estimated Staff Requirements for Improved REO Rural Road Maintenance 12. Estimated Planning, Supervision, Monitoring and Quality Control Costs ANNEXES 1. The Role of Road Transport in Bihar 2. Project Reporting and Monitoring Requirements 3. Items Included in the Rural Road Survey Form 4. Sample Economic Calculations 5. Related Documents and Data Available in the Project File 6. GOB's Rural Roads Maintenance Program CHARTS World Bank Chart No. 21599 - Structure of Bihar Public Works Department World Bank Chart No. 21600 - Structure of the Rural Engineering Organization FIGURES 1. Rural Road Design Standards MAPS World Bank Map No. 14878R - Project Roads: North Bihar World Bank Map No. 15088R - Project Roads: South Bihar World Bank Map No. 15089R - Project Roads: Chotanagpur and Santhal Pargana INDIA BIHAR RURAL ROADS PROJECT I. THE TRANSPORT SECTOR A. The Transport Sector in India and Bihar 1.01 India's current long-term policy for the transport sector generally aims at the further development of a transport system which can meet at mini- mum cost, the increased transport demand resulting from growth in the economy. This policy would be implemented through increased support of the highway sector with particular emphasis on facilitating transport in rural areas; encouragement of increased efficiency of railway transport operations; and discouragement of growth in and decongestion of the central business districts of large metropolitan regions. The most recent statement of the Government's economic objectives are in the draft Sixth Five-Year Plan 1978-83. The plan represents GOI's attempt at accelerating economic growth and improving income distribution through increased emphasis on agriculture, small-scale industry, and power. Of the total public investment in the five-year plan, Rs 81.3 billion or 12% would be allocated to transportation, the lowest share of total investments of any plan period. A new plan, covering the period 1980-85 is being prepared. In view of the very substantial investments likely to be required for railways, roads and selected port investments, the allocations for transportation may prove insufficient. The railway and road transport sectors have together received more than 80% of the public investment funds for transport over the past three decades, railways getting an average of 60% more than roads and road transport. Consequently, GOI planners have begun to reconsider the relative share of investment funds allocated to the various transport modes. 1.02 The Indian transport sector is under the concurrent jurisdiction of various ministries: ports, shipping and roads are under the Ministry of Ship- ping and Transport; railways are under the Ministry of Railways; civil avia- tion under the Ministry of Tourism and Civil Aviation; and pipelines under the Ministry of Petroleum. Planning and coordination is undertaken within the context of overall national and regional plans. For national transport in- vestments, in subsectors other than the railways, the Planning Commission acts as a coordinator, scrutinizing, assessing and finally approving for inclusion in the national plan, all the investment proposals emanating from the trans- port sector. The national plan thus formulated by the Planning Commission must subsequently be approved by the Government and the Public Investment Board. 1.03 The State Government of Bihar (GOB) has limited powers in matters of overall transport policy. Decisions regarding railways, civil aviation, national highways and water transport are taken at the national level. Within the purview of the State Governments, the main initiative for overall transport planning lies with the Development Commissioner and the Finance Commissioner. Within the rural sector, integrated planning is achieved through the Rural Development Department. B. The Transport Modes in Eastern India and Bihar (i) Inland Water Transport 1.04 Inland water transport is controlled by the Inland Water Transport Directorate in the Ministry of Shipping and Transport. This Directorate is charged with coordination of inland water transport with other modes as well as formulation and preparation of schemes and projects for improvement of in- land water transport. The two main river systems used in Eastern India are the Ganges River System which spreads throughout Bihar and the Brahmaputra River System. The Ganges-Bhagirathi-Hooghly is navigable throughout the year for vessels up to 5 meter draught between Buxar and the Bay of Bengal with nominal river training work in the upper reaches and during floods in the rest. Currently, however, navigation is restricted to between Patna and Buxar, a distance of 185 km. The traffic consists mainly of coal, stone boulders, foodgrains, pulses, building materials, and general merchandise. However, water transport in Bihar remains poorly developed. Statistics relating to the number of steamers and boats for transport are unreliable but numbers are known to be small. (ii) Railways 1.05 The network of Indian Railways (IR) is owned and managed by GOI. IR is the nation's largest single undertaking with an investment of some Rs 70 billion, a total staff strength of about 1.7 million, and it operates over 60,000 route-km, of which about 12,000 km have multiple track. Statistics concerning IR's originating freight
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