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 minimum 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 aviation 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 investments, 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 transport 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 inland 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 and passenger traffic indicate that, over the last two years, there has been a downward trend in the originating tonnage carried by the railways, although the average lead of traffic has increased, and hence the turnaround time of wagons has deteriorated. However, IR is still the most important mode of transport in India, currently carrying about 60% of total ton-km and 40% of total passenger-km.

1.06 Bihar is served by the main broad gauge electrified trunk railway between New Delhi and Calcutta, running across the Chotanagpur plateau south of the Ganges, while Patna is served by the non-electrified main line. Most railway lines north of the Ganges are meter gauge, connected by passenger ferries and the Teghra bridge to the remainder of the system. The railway network is Bihar covers 90% of sub-divisions and 80% of blocks.

(iii) Civil Aviation

1.07 The Civil Aviation Department is responsible for air navigation and safety. A provision of Rs 1,500 million has been made for the projects of the Civil Aviation Department. The program aims at the expansion and improvement of aeronautical communication services, airports and acquisition of aerodrome equipment for ensuring better safety and reliability. Under the program of works at airports, emphasis will continue to be on the development of existing airports rather than the construction of new ones. Extension, strengthening and improvement of runways, taxitracks and aprons will be taken up at a number of airports. Indian Airlines is the Government operated domestic airline, which also operates a limited number of international routes. In 1976, domestic passenger traffic stood at 2,786 million passenger-km, while domestic - 3 -

air freight was 260 million ton-km; the rates of growth during the decade 1966-76 were 11% and 7% respectively.

1.08 In Bihar, Patna and Ranchi are connected by daily qir services, operated by Indian Airlines, to New Delhi and Calcutta. In addition, there are 17 flights per week, operated by Indian Airlines and Royal Nepal Airlines. between Patna and Kathmandu, Nepal. Although it is intended to develop air services within the state under the draft Sixth Five-Year Plan, at present, the 43 landing grounds in Bihar, apart from Patna and Ranchi, are not used by commercial aircraft.

(iv) Highways

1.09 Highways in India are divided into four categories: national highways, state highways, district highways, and block highways. In addition, there are so-called project and urban roads, administered by various departments and municipalities. National highways are under the jurisdiction of the Government of India, which meets construction, maintenance and improvement costs. Most other roads are the responsibility of state authorities. However, administration of district and block highways is generally delegated to local bodies and rural communities. Besides bearing the cost of the national highways, the Government of India through the Roads Wing of the Ministry of Shipping & Transport, participates in the financing of important state highways through grants to the State Governments. In such cases, procedures for review and approval of plans and supervision of execution of the projects are similar to those used for the national highways.

1.10 The development of rural roads, which includes minor district highways and block highways, is important for opening up the rural areas which still contain about 80% of the population of India. They are an essential ingredient of agriculture development programs, since at present a large number of villages are still unconnected with roads to market centers. Out of approximately 576,000 villages in the country, only about 169,000 have all weather road connections, and a further 93,000 only have fair weather road connections. The objective of the draft Sixth Five-Year Plan was to provide road links to all villages having a population of 1,500 and above and to one-half of villages with a population between 1,000-1,500 that remained to be connected with all weather roads in 1978; the remaining half would be covered in the period 1983-88. An outlay of Rs 10,950 million was allocated for these works. A Working Group on Rural Roads which was set up by the National Policv Committee of the Planning Commission recently went into various aspects of rural roads and concluded that it is not be feasible in the foreseeable future to connect each and every village to the road network. A more realistic objective would be that, by the turn of the century, all villages should be no more than 1.6 km from a road. This would give an approximate road density of 60 km per 100 square-km and would require about Rs 110 billion phased over 20 years.

1.11 Although road transport is the most important mode in Bihar, the following table indicates the extent to which the development of an adequate road network lags behind that in other states: -4-

Bihar India (1975/76) (1979)

National and State Highways (surfaced and unsurfaced)

Km 17,400 443,000 Km per 100,000 population 25.9 68.2

Minor roads (mainly rural) /a

Km 62,800 932,200 Km surfaced (% of total) 9,970 (16%) 194,000 (21%)

Km per 100,Q00 population 93.7 143.4 Km surfaced per 100,000 population 14.9 29.9

Motor vehicles per 100,000 population 210 486

/a The bulk of this category consists of Zila Parishad Roads, (maintained by District authorities), Rural Roads (maintained by REO) and Project Roads (maintained by other government departments).

In 1977, the total length of surfaced roads in Bihar was about 26,000 km, of which about 10,000 km were minor roads. According to the draft Sixth Five-Year Plan, these figures are expected to grow to 31,000 and 12,400 respectively in 1982/83. In 1977, the proportion of villages with populations between 1,500 and 5,000 that were connected with all-weather roads was 20%, with 10.4% of the state's population; the draft Plan forecasts growth to 50% and 14.4% respectively in 1982/83. GOI's objective is to connect all such villages to a metalled road, 1/ an ambitious objective for Bihar by 1990. The current insufficient provision of surfaced roads in rural areas highlights the long standing neglect of the rural economy of Bihar. Communication difficulties are increased by seasonal flooding and the nature of the soils, which severely limit movement during the monsoon except on surfaced roads. The highway subsector is discussed in more detail in Chapter II, and statistical data is given in Table 1.

1.12 The bulk of Bihar's agricultural products is consumed near the place of production. Most agricultural freight movements take place, therefore, over short distances between the farm and the local market. The main modes of transport are headload, bicycle, animal-drawn carts and tractors. Each one of these modes is used over more or less well-defined distance ranges with headloads for shorter distances and tractors for longer ones. Hence, these various modes do not compete with each other to any significant extent.

1.13 The number of mechanized vehicles registered in Bihar, excluding auto-rickshaws, motorcycles and scooters, but including farm tractors, is about 75,000 and the average growth rate over the past ten years has been

1/ A metalled road has a brick or stone surface which may or may not have been provided with a bituminous seal against ingress of water. - 5 -

about 6% per annum, although the growth rate for farm tractors, commonly used for road transport, has been 22% per annum. The number of auto-rickshaws and motorcycles and scooters has also increased rapidly (Table 2) at 15% per annum but they e seldom used for freight transport, except in areas close to urban centers. For distances over about 15 km, rural mechanized transport of goods is almost entirely by truck or by tractor trailer combination; the type of mixed passenger/goods transport by light trucks common in many developing countries hardly exists in Bihar. The number of trucks and tractor trailer combinations per 100,000 population is about half the all-India average. They are concentrated around major towns so that nine districts with only 21% of the population have 64% of the trucks available for hire in the state, and the distribution of tractor trailers is similarly uneven. Registration figures suggest a significant increase in the truck fleet in Bihar since 1976, but the increase appears to have taken place in the urbanized districts rather than in the farming areas, and further growth is slowed by long delivery delays for popular truck models. While there do not seem to be any delays in the supply of tractors and trailers, the availability of credit may inhibit continued rapid growth. The draft Sixth Five-Year Plan forecasts growth rates of 10% per annum for buses and trucks and 7.5% per annum for cars, jeeps and taxis. These figures are above the historic rates, and are unlikely to be attained in view of rising fuel costs.

1.14 Throughout Bihar, and particularly in the eastern and southeastern rural districts, non-motorized road transport plays a significant role. Tables 2 and 3 show that there are about 30 times as many animal-drawn carts as trucks in the State. The animal-drawn cart is the most common form of short distance freight transport in rural Bihar (Annex 1), being the principal means for hauling agricultural goods over distances of up to 15 km on both pukka (all- weather) and katcha (fair-weather) roads. The cart fleet in Bihar was estimated at 780,000 in 1972, suggesting that the ratio of cart to population was about half of the all-India average ratio. Although there has been an annual decrease of about 1% in the number of carts since 1966, there has been an increase in the use of rubber-tired carts by an estimated 8% per annum. Since the carrying capacity of rubber-tired carts is two or three times greater than that of the traditional wooden-wheeled variety, the transport capacity of all bullock carts has increased in recent years. Horse and pony-drawn carts and cycle rickshaws are used mostly in and close to towns while pack animals are confined to a few areas for the primary movement of goods from farms to the roadside. In most rural areas, however, bicycles are more common than bullock carts and are a practical and affordable means for the small farmer to move goods over short distances, as well as providing personal transport to the great mass of working population. There is very little information on which to make forecasts for future number of non-motorized vehicles, but given the generally uncertain future for oil supplies and the fact that investment for even the smallest truck is quite out of reach for the average farmer, it seems that increasing reliance on non-motorized forms of transport is likely. Prejudice against rubber-tired carts is lessening and finance for purchase is now easier (Annex 1). Finance for bicycles, whose cost of Rs 200 to 500 makes them a possibility for those on average incomes, is not officially available although it is known that loans given for general agricultural purposes are frequently used to buy bicycles. - 6 -

II. THE BIHAR HIGHWAY SECTOR

A. Bihar in the Indian Context

2.01 India covers an area of about 3.3 million square kilometers and its population is about 650 million, of which about 80% live in rural areas. The Eastern Region of India, where Bihar is located, has largely been bypassed by past development programs and includes the greatest concentration of rural poverty in the world. The state of Bihar lies in the Indo-Gangetic plain, and has a considerable untapped agricultural potential as a result of fertile alluvial soils underlain by massive groundwater resources. With an area of 174,000 square kilometers and, with a population of 67 million, it is the second most populous state in the country. Population density is about 380 per square kilometer, compared to a national average of about 200. Almost 90% of the population is rural and dependetnton agriculture; this proportion is expected to decrease only very slowly in the medium term. The average annual per capita income is about 70% of the national average.

2.02 Bihar divides into three distinct geographic regions: (i) the northern plains between the Ganges River and the Nepal border, made up of young alluvial soils; (ii) the central plains consisting of older alluviums lying along the southern banks of the Ganges; and (iii) the Chotanagpur/Santhal Pargana plateau covering most of the southern half of the state and made up of red and yellow catenary soils. While soils in the northern and central plains are quite fertile, those of the Chotanagpur/Santhal Pargana plateau have restricted agricultural potential. Average rainfall is about 1,250 mm per annum, but varying by as much as 500 mm on either side of average. In the Ganges plain, especially in northern Bihar, there are large anour ts of groundwater at depths of between five and fifteen meters, but on the Chotanagpur/ Santhal Pargana plateau, groundwater exists only in cracks and fissures in the underlying rock so that year round irrigation is impossible except from rainfed storage. Administratively, Bihar is divided into 31 Districts and 72 Sub- Divisions. The key unit for rural development is the Development Block, of which there are 587, each containing about 100,000 people in some 100 villages.

2.03 Most of the land suitable for cultivation in Bihar is already cropped, with 8.7 million cultivated ha increased effectively to 11.3 million cropped ha because of multiple cropping. However, higher yields are a possibility given effective irrigation and more extensive adoption of improved farming methods. Over the past decade, the area under cultivation has remained practically unchanged and total production figures have hardly risen. Hence, increasing rural population has been the main factor behind the stag- nation - and in some years the decline - of rural incomes. Population pres- sures have reduced the average size of farm holdings to about 1.5 hectares, with minimum-size holdings of lesa than one hectare. With traditional agricultural practices, 1.5 to 2.5 hectares farm size is the minimuim necessary to feed an average family. The distribution of holding size is highly skewed and the median size of farm is about 0.6 hectares. Of 7.6 million holdings, 64% are 'Lessthen one hectare, while under 2% have more than 10 hectares. Given the presence of an estimated 6.8 million landless laborers, some 75% of the population is estimated to subsist below the poverty line (US$70 per capita). 2.04 Major expansion of production must come from yield increases, i.e., from improved farming practices, including the use of high-yielding varieties, higher fertilizer intake, better irrigation facilities and more intensive use of irrigation water. About 90% of the cultivated area is i!sed to produce foodgrains (mainly rice, wheat and maize). In recent years, there has been a significant increase in the production of cereals, offset by a comparable decline in production of pulses. Sugarcane, jute and potatoes are becoming important cash crops. Though only 4% of the total area sown is used for these crops, their output in terms of weight (and transport requirements) is about one-half of the statewide total.

2.05 The present project (paras 4.03 to 4.08) addresses, in a modest way the existing deficiencies of Bihar's rural road transport network (para 1.11), as part of the Bank's overall program of assistance to rural development in Bihar (para 3.01).

B. The Highway Network and Highway Traffic

2.06 The highway network in Bihar is made up of national, state and district roads with a total length of about 80,000 km, of which some 26,000 km (32%) are paved to all-weather standards (Table 1). This compares with 39% of paved roads in India as a whole. Most major roads have evolved from tracks, through brick paved roads, into their present bituminous surfaced form so that alignment is frequently unsuitable for present traffic flows, encroachment by roadside development is common and pavement thickness is insufficient, leading to uneven surfaces, potholes and areas of failure. Throughout the Gangetic plain in northern and central Bihar, soils are poorly graded and road making materials lacking. These factors, coupled with annual flooding over large areas, make road building and maintenance expensive and difficult. In hilly areas in southern Bihar (Chotanagpur and part of Santhal Pargana) conditions for road building are easier, but agricultural activity and population density are considerably less, so that the need for reliable all-weather transport by road is correspondingly reduced.

2.07 In November 1975, a statewide origin and destination survey was carried out at 87 survey stations over a 48-hour period. It was intended to repeat the survey after five to ten years in order to establish a base for forecasting traffic growth patterns in deciding road transport investment needs. Plans are being made for a second survey in 1981. Traffic flows on national and state roads in 1975 ranged from a maximum of about 12,000 vehicles per day on one section of national highway in Chotanagpur down to an average of about 550 vehicles per day, half non-mechanized, on state highways in general. No data was collected on rural roads. During the 1975 Bihar traffic survey, it was found that the average loaded truck rear axle weight was about 10.7 tons, equivalent to 3.4 standard axles and indicating almost universal 25% overloading, as is unofficially permitted by GOI. With the present high cost and shortages of fuel, this figure is unlikely to have decreased. Apart from the 1975 survey, no systematic traffic counts have been taken in Bihar from which traffic growth and composition can be estimated, but counts have been taken on some routes for specific projects. As part of the monitoring process under the project (para 4.17 and Annex 2), traffic data will be collected on a sample of project roads. - 8-

C. The Admiftistration of Highways

2.08 National highways in Bihar are designed and financed by GOI, but the state Public Works Department (PWD) normally acts as executing agency. State highways, apart from rural roads, are designed, constructed and maintained by the PWD, generally using state funds. Rural roads are the responsibility of the Rural Engineering Organization (REO), a part of the Rural Development Department. District roads, which make up the majority of total road length, are financed and administered by District Authorities, and urban roads in municipal and smaller urban areas are built and maintained by the municipal and urban authorities concerned, in some cases with grants from state or central government. The structure of the PWD and of REO are shown in Charts 21599 and 21600.

2.09 REO was set up in 1970 to deal with rural roads. However, it is still backed up by PWD with staff, equipment and technical facilities. At the time of appraisal, REO technical staff comprised one Chief Engineer (Works), one Chief Engineer (Advance Planning), 18 superintending engineers, 99 executive engineers, and one economist, plus about 300 assistant engineers and 600 block engineers. Block engineers hold technical college diplomas; other engineering staff are normally university graduates. Duties and respon- sibilities of engineering staff are clearly defined in the Bihar Public Works Department Code, which applies to REO. Financial control is maintained by Divisional Accountants working with REO and reporting to the Accountant General. There is also a statutory requirement for regular audits to be carried out by the Accountant General, GOB, under the GOI Auditor General, responsible directly to the President of India. The technical caliber of REO staff is generally sound. During project preparation, which was carried out mostly by REO, data collection and processing was done effectively and on time and interpretation of results was sound.

D. Highway and Rural Road Planning and Finance

2.10 Planning, project appraisal and design of rural roads are handled in REO by the Chief Engineer (Advance Planning) with a staff of about 230 engineers. Immediately after its inception, REO carried out a crash program during which 5,591 km of roads were built up to 1979. In recent years, REO constructed about 1,000 km of roads annually. Rural road planning is generally guided by the objective of the draft Sixth Five-Year Plan (para 1.09) to connect at least 50% of villages having populations between 1,500 and 5,000 to all-weather roads by 1982/83. Proposals for rural road construction or improvement are put forward by Block Development Committees to the State Planning Department for approval in principle. If approved, a technical report and estimate is prepared by REO's Advance Planning Wing, leading to selection of projects for the work program. Application of economic analysis to build up a suitable work program had not been attempted before this project. The introduction of methods of project planning which are objective has been welcomed by REO and GOB as a means of isolating route selection from narrow vested interests. Introduction of traffic counts on some rural roads as proposed under the project (para 4.17) and the experience gained during project preparation should help improve route selection. Design, carried out by the Superintending Engineer (Design) follows guidelines set by the Indian Roads Congress (IRC), - 9 -

but preconstruction testing of materials has been minimal. Construction techniques are usually traditional using maximum labor and minimum mechanical plant, while quality control has been little used, hitherto. To remedy this, four test4ng laboratories under the Superintending Engineer (Design) are being activated and have commenced material testing for design of project roads. Equipment for these laboratories is to be supplied under the project (Table 8). PWD has offered the facilities of its large and relatively well-equipped materials testing laboratory for use by REQ as required, until all REQ laboratories are fully equipped and staffed.

2.11 Annual expenditures on highways in Bihar since FY 1974/75 are shown in Table 5. Expenditures on rural road construction by REQ have increased over the last five years at rather more than 20% per annum, while their expenditure on other non-highway works has almost doubled. Until FY 1979/80, the amounts allocated for rural road maintenance were insignificant, and the large increase in that year still gave only about Rs 2,200 (under US$300) per km, which is considerably less than necessary for correct routine and periodic maintenance. As a result of the paucity of funds, REQ has not set up a fully operational road maintenance organization. Whatever work has been done was organized on an ad hoc basis using local small contractors who might or might not be familiar with the type of work required and whose standards often left much to be desired. A major shift in emphasis is necessary within REO if roads they have constructed are not to deteriorate rapidly to an unimproved state, and the large increase in REO road maintenance funding since 1978/79 indicates that such a shift is taking place. An increasing level of recurrent financing, suitable equipment, effective organization and some training will all be required if REQ road maintenance is to be effective in the future (see para 4.06).

E. Technical Aspects of Road Construction and Maintenance

2.12 From the Nepal border to a line about 30 km south of Gaya and Bhagalpur, all-weather movement is not possible for wheeled traffic except on surfaced roads. This is due to the prevalence of alluvial soils and annual flooding, or at least saturation, of large areas. In southern Bihar and in the Chotanagpur plateau area, there are a variety of pre-cambrian soils which provide better road building materials, although the presence of micaceous deposits presents problems. Hence, where there is maximum population and agricultural activity in the North of the state, roads must be surfaced even for light traffic flows if year round access is to be reasonably certain, and long hauls are involved for suitable construction materials. Moreover, the large flows of floodwaters make embankments or special treatment necessary to reduce scour damage to roads, so that construction is expensive and maintenance costs high following floods. Typical construction for new rural roads is about 35 cm total thickness of brick soling, broken brick and broken stone base, plus 2 cm of premix bituminous carpet with a surface seal coat. An alternative form of surfacing would be a double bituminous surface treatment (DBST) which would be slightly cheaper. However, local labor is used to working with the thin premix carpet, the chances of complete failure due to improper materials or workmanship are less and performance under light traffic Elows may be better. For these reasons, it is proposed to continue use of the thin premix carpet for project roads, although once maintenance resealing has becone a familiar operation, consideration should be given to using DBST for construction. Labor-intensive construction methods are nonnal and compaction - 10 - of earthworks is often left to time and weather. Such work methods must be supported by checks and quality control to ensure reasonable standards, and mechanical earthwork compaction is necessary to reduce risks of failure due to excessive consolidation. Maps showing command areas of irrigation schemes and flood prone zones are contained in the project file.

2.13 Standards of road maintenance have been inadequate, even on national and state highways, due to a combination of shortage of funds and unsuitable work methods. Until 1979/80, REO undertook very little regular maintenance, which resulted in a deterioration of the roads taken over or constructed by them. District Roads have been and are characterized by seriously deficient maintenance so that surfaced roads fall rapidly into decay, while unsurfaced roads are often impassable by light vehicles even in dry weather. In both PWD and REO, the standard of work depends very much on the competence and skill of the foreman in charge, a situation which often leads to wastage of materials. The situation could improve, given proper supervision by competent engineers, the resources necessary to give correct supervision and better quality control. As is often the case with road maintenance, improvement can best be brought about by suitable managerial attention and by:

(i) making sure that maintenance staff have the funds, equipment and materials they need to do their work (para 4.06); and

(ii) providing instruction and training where required (para 4.07).

2.14 In the circumstances of Bihar, it would be entirely inappropriate and undesirable to suggest wholesale mechanization of road construction and maintenance. However, there are some operations such as compaction of earthwork, sub-base and base, or production of stone chippings below about 2.5 cm size which need to be done mechanically to get good results. Other operations like heating and spraying bituminous binder require more in the way of mechanical aids than they get at present to economize in use of expensive materials and improve work standards.

III. BANK GROUP LENDING IN BIHAR

3.01 Bank group assistance in Bihar has concentrated on the agricultural sector through a variety of complementary projects, designed to improve the living standards of the rural poor. The Bihar Agricultural Markets Project (Cr. 294-IN, 1972, US$14 million) provided funds for the development of agricultural wholesale market facilities in 50 selected towns in Bihar. The Agricultural Credit Project (Cr. 440-IN, 1973 US$32 million) provided long and medium term credit primarily for minor irrigation to farmers through the Agricultural Refinance and Development Corporation (ARDC). Originally envis- aged to benefit approximately 50,000 borrowers in a limited area of the state, the project was expanded to cover 84,000 beneficiaries throughout Bihar. Both these projects have been fully disbursed and have largely met appraisal objectives. The Agricultural Universities Project (Cr. 342-IN, 1972, US$12 million) provides support for the development of the Rajendra Agricultural - 11 -

University in Bihar, in order to improve the quality of their teaching and extension facilities and to foster basic and applied agricultural research. Under two Rural Electrification Projects (Cr. 572-IN, 1975, US$57 million and Cr. 911-IN, 1979, US$175 million) and a Power Transmission Project (Cr. 604-IN, 1976, US$150 million), Bihar is eligible to receive funds to implement electrification schemes designed to accelerate the installation of irrigation pumps and tubewells in rural areas and to strengthen its power distribution system. The Bank Group is also assisting Bihar in reorganizing and strengthening its agricultural extension systems through the Bihar Agricultural Extension and Research Project (Cr. 761-IN, 1978, US$80 million). While unfilled key posts have hampered project implementation, progress is being made in areas where regular extension visits have been instituted. Bihar is also one of the five states participating in the Inland Fisheries Project (Cr. 963-IN, 1980, US$20 million), designed to increase carp production through the construction of hatcheries and improvements to fish ponds. As the project only became effective in May, 1980, it is still too early to assess its impact, but initial implementation tasks, especially the establishment of State Fish Seed Development Corporations and central and state project monitoring units, are progressing satisfactorily.

IV. THE PROJECT

A. Background

4.01 In May 1978, GOB proposed a project consisting of the construction, improvement or strengthening of about 12,700 km of rural roads at an estimated cost of US$340 million equivalent. After identification missions and discus- sions with GOI it was agreed that such a program, although possibly justifia- ble in the long run, would be far beyond the investment resources available to Bihar. Accordingly, IDA agreed to assist with a first phase project of approximately US$50 million total cost (excluding taxes and duties), the roads to be selected on economic grounds. This would form a substantial part of GOB's future rural road construction and maintenance program (para 4.15). Selection was made from about 2,800 routes with a total length of some 19,000 km, at first by a coarse screening process, followed by a more thorough analysis of costs and benefits (paras 5.05-5.06). Project preparation was carried out by GOB through the Advance Planning Wing of REO. The project was appraised in March 1980.

B. Project Objective

4.02 The principal project objective is to provide all-weather road communications between farms and markets so that the full benefits of complementary investments made or about to be made, mainly in irrigation, may be realized (para 5.01). The capabilities of REO for planning and selection of rural roads have already been expanded by project preparation, and during the project it is intended to improve maintenance of REO roads by provision of equipment and the attendance of REO staff at short training courses (paras 4.06-7). In an effort to induce the materialization of more benefits to the - 12 -

farmer, the Agricultural Refinance and Development Corporation (ARDC) is expected to make refinancing facilities available to enable farmers to acquire improved bullock carts for short distance transport of farm produce.

C. Project Description

4.03 As appraised, the project consists of:

(i) the construction, improvement or strengthening of about 700 km of rural roads;

(ii) improvement of routine and periodic maintenance on REO administered rural roads; and

(iii) procurement of road construction and maintenance equipment.

The locations of the road sections selected for construction, improvement or strengthening are shown on IBRD Map Nos. 14878R, 15088R and 15089R, and in Table 6.

(a) Road Construction and Improvement

4.04 From the results of economic analysis, road construction, improvement or strengthening is proposed on about 120 routes (700 km). Construction work will consist of earthwork, drainage, bridging where necessary, and provision of subbase, base and surfacing to typical cross sections as shown in Figure 1. Improvement usually involves provision of subbase, base and surface to existing unsurfaced roads, with improvements to drainage and alignment where required. Strengthening comprises an asphaltic overlay on existing surfaced roads and sometimes the addition of extra base. Details of the work proposed are given in Table 6, and the selection of the road sections included in the project is described in Section V. Detailed survey and design will be completed by the Advance Planning Wing of REO. Design work is in hand, and was about 50% completed at the time of negotiations, based on IRC rural road design standards 1/ and allowing for vehicle overloading which is prevalent. Alignments will generally follow existing tracks and rights- of-way with minimal land acquisition where necessary to attain the design standards. Based on REO estimates, the average cost of road construction will be Rs 360,000 (US$43,000) per km in January 1980 prices, including bridges and culverts. The cost per km reflects the poor soils, the haulage cost of construction materials, and the embankments and surfacing required to avoid flood damage (para 2.06). The work will be carried out in accordance with GOI Ministry of Shipping and Transport (Roads Wing) Specifications for Road and Bridge Works (Revised 1978 edition) which have been reviewed and found acceptable to IDA. These specifications are framed to be suitable for largely manual operations, and it is not proposed to introduce mechanized road construction except where better standards of work or more economic use of materials will result (para 2.14). Agreement has been reached that construction and improvement of roads under the project shall be carried out in accordance with certain criteria mutually agreed. An understanding

1/ As given in the "Manual on Route Location, Design, Construction and Maintenance of Rural Roads," IRC, 1979, and illustrated in Figure 1. - 13 -

has been reached that these criteria shall include that all project road design would be in accordance with IRC standards, construction work will be carried out following the Ministry of Shipping and Transport (Roads Wing) specificat;ons, published by IRC, and that the construction program will encompass the routes shown in Table 6, subject to any revision agreed by GOB and IDA in the light of changed circumstances at the time of construction. Other criteria for selection are given in para 5.07. Work methods will include the use of mechanical equipment for compaction, stone breaking where possible and for bitumen distribution in order to achieve improved standards of work.

4.05 Most PWD and REO roads in Bihar are constructed or improved by local contractors using traditional work methods. PWD has a prequalification process which is appropriate for local conditions and acceptable to IDA. Under this process (the Bihar Enlistment of Contractors Rules, 1970), 76 contractors in the state are prequalified to undertake contracts to an unlimited amount (Class IA), 127 can bid for contracts of a value up to Rs 1.5 million, equivalent to about US$180,000 (Class IB) and 786 can bid for contracts of a value up to Rs 1.0 million, equivalent to about US$120,000 (Class II). Using the same Rules, REO will advertise locally and nationwide inviting contractors to prequalify for work under the project, and those already prequalified for PWD will be automatically included. GOB procedures for bidding, awards of contracts and contract supervision are governed by regulations which have been reviewed and found acceptable by IDA. GOB contract documents and conditions of contract do not contain any provision to compensate contractors for cost increases, although GOB may do so. However, as the major materials are supplied by GOB to contractors at fixed prices, and as most contracts will be for periods of not more than one year, a price escalation clause would not be essential. Quality control during construction will be through one central and three regional materials testing laboratories set up by REO, and agreement has been reached that testing for project works would be carried out on the scales recommended in Sections 901 and 902 of the Ministry of Shipping and Transport (Roads Wing) Specifications for Road and Bridge Works. Results would have to be in accordance with the appropriate specifications, as may be varied by the Chief Engineer, REO in consultation with IDA. Audit of works is done routinely by the Bihar Audit Department financially and by the Technical Examiner's Cell (TEC) for technical standards. TEC is an independent organization reporting directly to the Chief Minister of Bihar, staffed by senior engineers and having its own testing laboratories.

(b) Improvement of Routine and Periodic Maintenance

4.06 Hitherto, rural road maintenance standards in Bihar have not been adequate (paras 2.11 and 2.13) due to lack of funds and equipment. On the present REO maintained network of 6,687 km (of which 1,096 km is unsurfaced), the 1980/81 allocation of Rs 25 million for maintenance is about half of what should be spent, although this is a very significant increase on previous funding - more than six fold in two years (Table 5). GOB plans to increase the funds for maintenance of REO roads to about Rs 40 million by 1983/84, and if proper allowances are made for cost increases, this will approach an adequate level for both project roads and the remainder of the REO maintained network. It has been agreed that GOB will implement a phased program of road maintenance of REO administered rural roads in such a manner that by June 30, - 14 -

1986 the REO road network will receive proper maintenance (para 4.15) and IDA will assist this improvement by providing under the project suitable road maintenance equipment for use by REO (Table 7).

4.07 The operations involved in periodic maintenance of surfaced roads are very similar to many of those in construction, and REO intends to use contractors for most maintenance work under similar conditions to those under which they are employed for construction. Contractors will also be used for a range of routine maintenance operations, leaving REO staff free to undertake supervision and inspection, plus minor works not suitable for contract. In order to familiarize REO staff with use of equipment and improved standards of quality control, arrangements will be made for REO staff to attend courses at CRRI, Delhi or for CRRI to run suitable courses in Bihar on road construction and maintenance methods. Understandings have been reached with GOB on the estimates of staff requirements and training proposed, shown in Table 11.

4.08 The equipment to be provided under the project is only that necessary to obtain acceptable work standards or to economize in use of expensive materials (para 2.14). The largest category of equipment is rollers for compaction of earthworks, subbase, base and surface. Asphalt mixers are to be provided to replace hand methods now generally used, and their size has been selected to conform with parallel manual operations, particularly hand loading. Small size machines will also be suitable for use on maintenance after construction is completed. Bitumen kettles fitted with hand lances and manual pumps will be supplied for applying the tack coat and for maintenance, but for the seal coat in both construction and maintenance, power bitumen distributors are proposed in order to economize in bitumen and reduce "whip-off" of expensive stone chippings. A major impediment to better supervision and quality control has been a shortage of light vehicles, and the project is to supply 12 four-wheel drive vehicles, three per laboratory, to permit improved materials testing and control of work standards, plus a further 36 vehicles for use by engineers on supervision of construction and maintenance operations. Equip- ment for survey and materials testing will also be supplied under the project. Understandings have been reached with GOB on details of mechanical equipment and vehicles and of materials testing and survey equipment to be supplied under the project, as shown in Tables 7 and 8 and procurement details detailed in paras 4.18 - 4.21.

4.09 Farm-to-Market Transport. Increased competition in the supply of farm-to-market transport will reduce transport prices, with part of the reduction being passed to the farmers in the shape of higher farm gate prices for their agricultural products. This will result in a fuller materialization of project benefits and a more equitable distribution of benefits among transport suppliers on one hand and farmers on the other than would occur without this competition. As indicated above (para 1.14), animal-drawn carts, particularly bullock carts, constitute the principal means of transport in rural Bihar, and are the natural target of any drive to increase competition in rural road transport. ARDC refinances loans extended by participating banks to individ- duals who wish to purchase improved rubber-tired bullock carts. Such refinancing schemes, established on the basis of ad hoc guidelines issued by ARDC in May 1978, are now gaining wider acceptance among banks in Bihar despite the - 15 -

relatively high costs associated with this type of lending operation. As of late 1979, participating banks in Bihar had already submitted three applications to ARDC for the refinancing of approximately 2,700 bullock carts over the period 1980-82. This lending target represents a significant increase over their current lending levels.

D. Cost Estimates

4.10 The total cost of the project is estimated at US$52.9 million equivalent, with a foreign exchange cost of US$6.6 million equivalent (12-1/2%) and including a total of taxes and duties of US$2.7 million equivalent. Details are given in Table 9. The following is a summary of costs:

RS million US$ million Local Foreign Total Local Foreign Total

I. Road construction and improvement: 220.0 32.8 252.8 26.2 3.9 30.1

II. Road construction and maintenance equipment and spares: 24.0 5.2 29.2 2.8 0.6 3.4

III. Supervision (a) Operating costs: 5.8 1.3 7.1 0.7 0.2 0.9 (b) Staff 8.0 - 8.0 1.0 - 1.0

Sub-total III 13.8 1.3 15.1 1.7 0.2 1.9

Total Project I, II and III: 257.8 39.3 297.1 30.7 4.7 35.4 Total quantity contingency: 24.6 3.7 28.3 2.9 0.4 3.3 Total price contingency: 83.8 12.6 96.4 10.0 1.5 11.5 Total With Contingencies 366.2 55.6 421.8 43.6 6.6 50.2 Taxes: 22.5 - 22.5 2.7 - 2.7

Total with Contingencies and Taxes: 388.7 55.6 444.3 46.3 6.6 52.9

4.11 The cost estimates are based on prices of January 1980. Construc- tion costs are based on REO quantity estimates and the GOB Schedule of Rates. Estimates for vehicles, equipment and tools are based on early-1980 suppliers' quotations c.i.f. Bihar. Physical contingencies of 10% for civil works and supervision, and 5% for equipment have been incorporated in the project cost. Price contingencies for all project items have been included to cover expected price increases until all contracts are awarded. Price contingency has been estimated for local costs at annual rates of 10% in 1980, 7% in 1981-83 and 5% in 1984-85. For indirect foreign costs, the international price contingency has been estimated at annual rates of 10.5% in 1980, 9% in 1981, 8% in 1982 and 7% in 1983-85. Project cost estimates were discussed at negotiations, and appropriate assurances received. - 16 -

E. xexcutioa. of the Project

4.12 Execution of the project will be the responsibility of REO, working through a Project Cell to be established by March 31, 1981 (Table 12), and assisted by the existing hierarchy of field staff, as shown in World Bank Chart No. 21600, page 62. Agreement has been reached on the setting up of the Project Cell, and GOB confirms that their duties will be according to the PWD Code and Standing instructions. Construction will be carried out by contractors, prequalified under existing GOB procedures. Contracts will be awarded under existing local competitive bidding procedures and contract supervision will be done by REO in accordance with the Bihar Public Works Department Code, 1948 edition, as amended. The Codes, Standing Instructions, procedures for prequalification of contractors, bidding and award of contracts and contract documents have been reviewed by IDA and found satisfactory, and understandings have been reached that they will apply to project work as appropriate. Land acquisition will be minimal, since existing road or right of way alignments are to be used wherever possible and additional land will be necessary only for minor improvement to road geometry or on bridge approaches. Under existing legislation, Government may enter upon arable land fifteen days after publication of a declaration of intent, and thereafter only the amount of compensation is subject to adjudication. Agreement has been reached that GOB will acquire land as and when needed for the project, and the Association has been informed that such action has already commenced.

4.13 Financial control and audit of works carried out under the project will be exercised through GOB financial and audit regulations, which have been reviewed and found acceptable to the Association. Quality control will be exercised through the four materials testing laboratories (para 4.05). Agree- ment has been reached that technical audit would be carried out on 10% of project roads, selected randomly, and that any additional staff necessary for TEC to carry out this audit would be supplied, if required, by GOB.

4.14 Equipment for use by contractors during construction and for the program of improved maintenance of REO rural roads will be procured by REO through normal GOB procurement procedures acceptable to IDA (para 4.19). The terms and conditions under which such equipment will be used by contractors on construction and maintenance work were discussed and found acceptable to IDA. Maintenance and repair of equipment procured under the project will be carried out by the contractors in the case of minor repairs, or by REO for major repairs, through local commercial mechanical workshops, who are used to working on the types of equipment to be provided.

4.15 The physical execution of the project is expected to commence in FY 1980/81 and to be completed in FY 1984/85. At the time of negotiations, approximately 50% of detailed design had been completed, and the balance will be done during the first year of the project, when the first batch of bids will be invited, evaluated and contracts awarded for the purchase of equipment and for some road construction. Approximately one quarter of the equipment will be received in the first year of the project, half in the second year and the balance in the third year. Road construction contracts are expected to be awarded for about 35 km of road in the first year, 110 km in the second year, 220 km each in the third and fourth years and for the balance in the fifth year - 17 - of the project. Improved road maintenance procedures and operations will be introduced from the commencement of the project. On the assumption road construction and improvement under the project will be completed in 1984/85, and that REO road maintenance expenditure will increase to correct levels (para 4.06) by that year, the following appears a likely scenario for total REO expenditures on roadworks until 1984/85, the construction figures being from GOB planned budget:

Year Construction Maintenance Total Km Rate per Own IDA Maintained Km (Rs) Account Project Total ( ----- Rs million at 1980 prices------)

1979/80 95 - 95 15 110 6700 2250 1980/81 112 28 140 25 165 7000 3600 1981/82 92 68 160 33 193 7250 4500 1982/83 85 95 180 41 221 7550 5400 1983/84 112 88 200 49 249 7900 6200 1984/85 155 65 220 58 278 8200 7000

This scenario anticipates a 150% increase in REO total annual expenditures in real terms for roadworks over the next five years, in addition to some Rs 32 million for equipment to be supplied under the project. GOB confirms that this forms a reasonable target for REO activities in road works until 1984/85, and upon request, GOB will inform IDA of the amounts allocated for REO road construction and maintenance during the annual process of budget preparation.

4.16 The location, layout and design of the roads to be constructed will be done in accordance with Indian national standards and it is not likely that there will be any adverse environmental impact as a result of the project.

F. Project Monitoring

4.17 It is expected that the project may form the model for a number of subsequent rural road projects in India, whether financed by IDA or not. It is, therefore, desirable to monitor the progress and effects of this project throughout as a guide to possible changes or improvements in the planning of future projects. During project implementation, it will be important to monitor the effects of road improvement on agricultural outputs, prices, marketing and various socio-economic factors. GOB has, therefore, been asked to provide the following data:

(i) progress of road construction and improvement works;

(ii) actual costs and unit costs of construction, as compared with estimates;

(iii) progress in the implementation of complementary investments, particularly in irrigation;

(iv) classified traffic counts on a sample of project roads before and after the project; - 18 -

(v) agricultural data comprising crops, crop areas, yields, inputs and value of inputs on a sample of areas of influence before and after the project;

(vi) transport data comprising amounts of produce moved, origins and destinations, costs to the transporter and charges levied, ownership and types of transporting vehicles used in a sample of areas;

(vii) farm gate and market prices for principal products in a sample of areas of influence.

Agreement has been reached that GOB will carry out reporting and monitoring, and understandings arrived at that monitoring requirements shown in Annex 2 will be followed. In addition, IDA expects to collect data, with the help of GOB, on changes in industrialization, health, rural electrification, education and fertility which may be due to the project. GOB has also confirmed that the Project Cell will be able to collect and process engineering data and that if necessary, assistance will be obtained from a suitable State-level research institution to collect and process agricultural and economic data. It is estimated that a random sample of 10% of project roads will meet requirements for monitoring, and the cost of monitoring studies will be met from funds allocated under the project for supervision, monitoring and quality control (Table 12).

G. Procurement

4.18 The civil works to be financed under the project will cost approximately Rs 253 million (equivalent to US$30 million) plus taxes and contingencies. Civil works consist of about 120 separate sections of road having an average length of less than 6 km each and an average estimated contract cost of about Rs 2 million (US$240,000) at January 1980 prices. As the contracts will be individually small, scattered over much of the state, and will have to be carried out intermittently according to the prevailing conditions of weather and flooding, it is very unlikely they will prove attractive to foreign bidders and they are, therefore, to be awarded through GOB's LCB procedures which have been reviewed and found acceptable to IDA (paras 4.05 and 4.07).

4.19 Of the Rs 32 million (equivalent to US$3.8 million) plus taxes and contingencies to be spent under the project for equipment and spares, about 60% is accounted for by rollers and supervision vehicles. These are both available locally at very competitive prices. Hence, foreign suppliers are unlikely to be interested. The same applies to most equipment items to be procured, and the specifications of a range of locally produced equipment have been investigated and found satisfactory for the type of work proposed. LCB will, therefore, be used for equipment procurement, which will have the advantage that early delivery will allow work to commence during the 1980/81 dry season, subsequent spares procurement and equipment maintenance will be simplified and there will be better standardization of the PWD and REO fleets. GOB LCB procedures for equipment have been reviewed and found acceptable to IDA and equipment specifications will be reviewed by IDA. - 19 -

4.20 It is the practice of GOB to make bulk purchases of some items under LCB for provision to contractors, whose rates do not then include for the cost of these materials. Commonly, bitumen, cement and reinforcing steel are subject to this arrangement and the total values in this project will be about US$1.5 million equivalent for bitumen and less than US$1 mil1 ion for cement and steel together. In order to reduce the effects of periodic shortages of materials and, as these materials are allocated at fixed prices by GOI but sell at higher prices in the open market, it is proposed to allow the practice of bulk buying by GOB under the project. GOB will be reimbursed appropriately for bulk purchases made for project roads where contract rates do not include for the costs of materials so purchased.

4.21 IDA will review all contracts and related documentation for goods and services costing more than Rs 2.0 million (US$240,000 approximately) before an award is made. Smaller contracts, up to a cumulative total of Rs 70 million (US$8.3 million approximately), will be subject to post-award review by IDA. The project includes retroactive financing for vehicles, equipment, fuel and additional staff for project preparation since June 30, 1979 up to a maximum of US$500,000 equivalent.

H. Financing and Disbursements

4.22 The proposed credit of US$35 million will finance about 70% of the total project cost net of taxes and duties, that is, all foreign costs and about 65% of local costs. The remaining local costs, amounting to about US$15.2 million plus local taxes and duties of about US$2.7 million, would be met by GOB and GOI. GOI and GOB have assured IDA that adequate and timely release of funds will be made in accordance with the agreed schedule of disbursements (Table 10), and that any increase in the cost of the project, foreign or local, would be borne by GOB. Disbursements from the proceeds of the Credit account will be made on the following basis:

(i) 60% of expenditure on civil works and materials;

(ii) 90% of expenditure for equipment, tools and spares; and

(iii) 90% of expenditure for planning and supervision of works, including incremental operating and staff costs.

Disbursement applications for civil works, materials, equipment, tools and spares will be fully documented. Disbursement applications for supervision of work, including operating and staff costs, will be supported by statements of expenditure only, but full documentation will be retained by GOB for inspection by IDA supervision missions.

V. ECONOMIC EVALUATION

A. Methodology, Costs and Benefits

5.01 The economic evaluation of this project has been carried out from the perspective of an integrated rural development "package". Road works are - 20 - viewed as part of the package required to increase agricultural production. The other inputs, including irrigation, seeds, fertilizer, pesticides, extension services and rural markets, will be provided by GOB, in conjunction with the construction and improvement of project roads, as part of GOB's on-going agriculture and rural development plans.

5.02 The required information was provided by REO and GOB and each road was subjected to detailed economic analysis using the methodology outlined below. The main benefit of the project will be the increased agricultural producers' surplus in the areas of influence of the project roads, resulting from the implementation of the package. Agricultural producers' surplus is computed as the net value of agricultural production, i.e., the value of the agricultural output minus the cost of all required agricultural inputs, on the basis of attainable crop yields, input requirements, and projected prices of outputs and inputs. The analysis also takes into account likely changes in total area under irrigation, cropping pattern, use of improved inputs and availability of more competitive rural transport supply. It is assumed that the benefits would build up gradually over a period of up to seven years, starting one year after the completion of the "package". On the infrastruc- ture cost side, the cost of providing additional irrigation is included in addition to the cost of road construction, improvement and maintenance.

5.03 A summary of the items included in the rural road survey forms is provided in Annex 3. As part of project preparation, REO staff in the field were actively involved in the collection of agricultural data, and an economist was appointed to help carry out some economic analysis. As a result, REO is now in a better position to undertake similar economic analysis for future rural road construction programs.

5.04 For each of the three regions of Bihar (North, South and Chotanagpur /Santhal Pargana), within which conditions are reasonably homogenous, it was possible to project "with" and "without" scenarios for purposes of economic evaluation. The "without" scenario assumes a situation where there may or may not be effective irrigation, but where the lack of an all-weather road, results in only limited use of improved seeds, fertilizer or pesticides, resulting in inadequate yields. The "with" scenario assumes satisfactory road and complementary agricultural and irrigation investments, leading to gradually improved yields in the area of influence of the roads.

5.05 For preliminary screening necessary to reduce the initial 2,800 road sections proposed down to manageable proportions, the following criteria were used:

(i) the proposed road would connect major villages with main existing surfaced roads;

(ii) the proposed road would serve arable areas with significant irrigation, or where firm plans exist to provide effective irrigation as part of the "package"; and

(iii) the proposed road would provide all-weather communications to permanent markets. - 21 -

Roads meeting the above criteria, and considered most likely to be economic- ally viable were ranked on the basis of regional average benefits and preliminary cost estimates. This process produced a list of 252 roads worth further analysis.

5.06 loads screened for further analysis fell into one of two types:

(i) where irrigation exists in the area of influence and no significant additional investment in irrigation is planned; and

(ii) where irrigation may or may not currently exist in the area of influence, but significant investments in irrigation are firmly planned.

For currently irr-gated areas, it was assumed that 60% of potential benefits have already taken place, leaving a further 40% to take place as a result of the proposed all-weather road and the resulting improved availability to the farmer of other inputs required for higher yields. Where additional investments in irrigation are planned, the increase in agricultural producers' surplus was computed taking into account, in addition to the cost of road and inputs, the cost of the planned irrigation. In both cases, it was assumed conservatively that only 70% of the total attainable increase in agricultural surplus will take place, and that this increase will take place uniformly over a seven year period, beginning after the "package" is implemented. Sample calculations are shown in Annex 4. The possible alternative method of economic analysis based on transport savings was not adopted since forecasting of traffic would have involved assumptions on average loads and transport costs on which little data exist, and would have resulted in underestimation of benefits.

5.07 A vital input for the generation of benefits is provision of adequate water control. In the case of tubewell irrigation, this will depend on availability of diesel or electrical pumps; in the case of canal irrigation there must be sufficient water for distribution and the system must not produce waterlogging or flooding. Zones known to be liable to annual flooding were not included in the project, although before construction local surveys will be needed to ensure that local topography does not cause unsatisfactory drainage conditions. An understanding has been reached with GOB that additional criteria for route selection for construction or improvement (para 4.04) will be the existence of investments, or firm plans therefor, particularly in irrigation, upon which the economic benefits of the route depend; the existence of a fully operational all-weather road connection; and minimal likelihood of severe flooding affecting the road construction program or the economic benefits thereof.

B. Economic Rate of Return (ERR)

5.08 The overall rate of return for the project is estimated at 21%. On a regional basis, the average ERR's are 19% in North Bihar, 24% in South Bihar, and 22% in Chotanagpur/Santhal Pargana. Changes in the ERR's resulting from changes in benefits and costs are summarized below: - 22 -

Benefits Benefits Benefits Costs Decrease & Delayed Best Decrease Increase Costs Increase One Estimate 15% 15% 15% Year

North Bihar 19 15 17 13 11

South Bihar 24 19 21 16 13

Chotanagpur/ Santhal Pargana 22 16 19 14 13 Overall Bihar 21 17 19 14 12

C. Project Beneficiaries

5.09 The distribution of project benefits and the impact of the project on the target population are illustrated as follows:

(i) Direct beneficiaries. The number of direct beneficiaries of the project, i.e., the farmers who live in the area of influence of the project roads and who will enjoy greater accessibility and agricultural surplus, is estimated conservatively at about 2 million people. Road construction and improvement, including brick and stone aggregate production, will generate about 15 million man-days of direct employment spread over four years; in addition, annual road maintenance will require 60,000 man-days per year after project completion. The employment thus created will mainly benefit landless peasants and small farmers.

(ii) Inter-regional benefit distribution. In terms of allocation of investment under the project, North Bihar is the most favored region, with 55% of the total investment, followed by South Bihar (38%) and Chotanagpur/Santhal Pargana (7%).

(iii) Interpersonal benefits distribution. It is expected that ARDC's refinancing schemes for bullock carts in Bihar will increase competition in rural road transport, and will ultimately result in a more equitable distribution of project benefits among farmers and road transport operators. Also, the distribution of agricultural inputs is likely to improve as a result of GOB's policy to secure their wider and more regular availability to farmers, which will be made easier by improved rural roads.

D. Project Risks

5.10 The following events, if they took place, could affect project benefits: - 23 -

(i) early deterioration of the project roads as a result of unforeseeable floods or traffic growth much larger than forecast, coupled with inadequate road maintenance;

(ii) delay in the implementation by GOB of complementa>y irrigation investments; and

(iii) shortage or irregular availability of agricultural inputs such as seeds, fertilizer, pesticides, and farm-to-market transport.

Precautions have been taken, insofar as possible, through design considerations and suitable assurances from GOB, to minimize the above risks. Road selection will be finalized according to agreed criteria. Roads will be built with adequate drainage standards, and consideration will be given to the use of causeways in flood-prone areas.

VI. AGREEMENTS AND RECOMMENDATIONS

6.01 GOB has already fulfilled an undertaking to complete the detailed engineering of more than 50% of the project roads prior to negotiations.

6.02 During negotiations, the following were discussed and agreed:

(i) reporting and monitoring requirements (para 4.17);

(ii) land acquisition (para 4.12);

(iii) criteria for route selection (para 4.04);

(iv) technical audit of works on 10% of project roads (para 4.13);

(v) quality control (para 4.05);

(vi) a phased program of road maintenance on all REO administered roads to give proper maintenance by June 30, 1980 (para 4.06); and

(vii) establishment of a Project Cell for supervision and monitoring progress of works by March 31, 1981 (para 4.12).

6.03 During negotiations, the following were discussed and understandings were reached:

(i) the criteria for selection of routes from the list given in Table 6 (paras 4.04 and 5.07);

(ii) the desirable level of expenditure for correct road maintenance, (Rs 7,000 per km per year at 1980 prices) and the equipment staff and training required (paras 4.06 and 4.07). - 24 -

(iii) the use of contractorsfor constructionand maintenance and the conditionsunder which they shall be employed (paras 4.04, 4.12 and 4.14);

(iv) the staffing and functions of the Project Cell (paras 4.12 and 4.17);

(v) the schedulesof mechanical equipmentand vehicles given in Table 7 and 8; and

(vi) details of project reportingand monitoring shown in Annex 2.

6.04 Details of project costs and implementationwere discussed and appropriateassurances received (para 4.11).

6.05 The project would provide a suitable basis for an IDA credit of US$35 million on standard terms to the Governmentof India. - 25 -

Table 1

INDIA

BIHAR RURAL ROADS PROJECT

Road Network in Bihar and India

Bihar All India Kms (% Surfaced) Kms (% Surfaced) (1,000's) '(1,000's)

National Highways 2.2 (95) 29.1 (98)

State Highways (maintained by PWD) 15.2 (92) 413.9 (77)

Zila Parashad Roads (maintained by District authorities) 39.8 (7) 231.1 (25)

Rural Roads (maintained by REO) 6.7 (83) 411.0 (14)

Urban Roads (maintained by municipal authorities) 2.2 (61) 85.7 (73)

Project Roads (maintained by other government departments) 14.1 (2.0) 204.4 (8.1)

Total 80.2 (32) 1,375.2 (39)

Source: GOB statistics, GOI, MOST, Transport Research Division "Regional Profile of Roads and Road Transport 1975-76" April 1979.

February 1980 - 26 -

Table 2

INDIA

BIHAR RURAL ROADS PROJECT

Bihar Motor Vehicle Statistics

Average 1967/68 1975/76 1977/78 Annual Increase

Motorcycles and Scooters 14,828 42,274 57,213 14

Auto Rickshaws 198 1,689 2,461 31

Cars, Taxis and Jeeps 23,480 36,273 37,510 5

Buses 3,384 4,390 6,728 6

Trucks 13,295 16,215 21,184 4

Tractors 1,253 8,434 9,109 22

Trailers 1,131 4,912 5,801 18

Total 57,569 114,187 140,006 9

Source: State Transport Department, Bihar

November 1979 - 27 -

Table 3

INDIA

BIHAR RURAL ROADS PROJECT

Non-motorizedTransport in Bihar (1977)

Bullock Carts 713,887

Horses and Ponies 94,274

Mules 1,324

Donkeys 28,090

Source: Livestock Census of Bihar, 1977.

March 1980 - 28 -

Table 4

INDIA

BIHAR RURAL ROADS PROJECT

Vehicle, Plant and Equipment Fleets of PWD and REO

PWD REO Type No. % Available No. % Available

Road Roller, Diesel 328 63 182 90

Road Roller, Steam 106 24

Trucks 17 59

Jeeps 44 77 112 94

StationWagons 3 0

Tractors,Agricultural 9 89 5 80

Trailers 5 60 5 80

Concrete Mixers 120 50

Asphalt Mixers 36 28

Asphalt Heaters 166 36

Asphalt Sprayers 2 0

Hotmix Plant 8 38

Water Pumps 39 26

Water Tankers 7 71

Vibrators 76 100

Stone Crushers 7 14

Hand Roller 1 0

Source: PWD and REO statistics

March 1980 - 29 -

Table 5

INDIA

BIHAR RURAL ROADS PROJECT

Annual Expenditures on Roads of REO and PWD 1974 to 1980 (millions of Rs)

Year National Roads State Roads Rural Roads District Const. Main. Const. Main. Const. Main. Boards /a

1974/75 49.0 7.7 118.7 45.0 41.0 3.0 4.0 1975/76 57.6 18.0 141.3 61.6 45.5 3.0 5.0 1976/77 62.3 29.2 150.1 77.2 60.0 2.0 11.6 1977/78 65.2 29.3 156.2 76.8 61.2 4.0 12.8 1978/79 64.6 5.3 179.3 90.0 112.2 4.0 35.5 1979/80 (Allocation) 64.0 24.7 189.5 97.0 95.0 15.0 20.0 1980/81 (Allocation) n.a. n.a. n.a. n.a. 140.0 25.0 n.a. Maintenance Allocation (Rs/Km) in 1979/80 11,243 6,395 2,243 501

/a For construction and maintenance

Source: Government of Bihar Financial Records

March 1980 INDIA

BIHAR RURAL ROADS PROJECT

Schedule of Possible Project Roads - North Bihar

Survey of India Estimated Route Reference Map Reference Length Work 1/ Cost Number District Description of Route Number (Km) Proposed (Rs'OOOs)

1) N/BEG/2K Begusarai Bhairwar to Gorganwa NG45.10 258 093 1.0 C 334

2) N/BEG/3K Begusarai NH 31 to Phulwaria NG45.10 258 093 2.0 C 664

3) N/BET/IK W. Champaran Binwalia to Chengauna NG45.1 239 115 2.0 C 684

4) N/BET/3K W. Champaran Mathura to Pirari NG45.1 241 114 13.2 C 4,353

5) N/BET/4K W. Champaran Sargatia-Link Road NG45.5 241 112 5.0 C 1,686

6) N/BET/5K W. Champaran Rudalpurpaterwa to Dumri NC45.5 239 111 3.5 C 1,312

7) N/BET/6K W. Champaran Baghambarpurto to Rampumwa NG45.5 242 iII 5.0 C 2,016

8) N/BET/7K W. Champaran Mahespur to Bhasurari NG45.1 240 114 6.4 C 2,098

9) N/BET/8K W. Champaran Kaitwalia to Chauby Tola NG45.5 240 III 6.0 C 2,027

10) N/BET/10K W. Champaran Jagdishpur to Mach Harganwa NG45.5 240 109 16.5 C 5,810

11) N/BET/IIK W. Champaran Gawchari to Marjadwa Station NG45.1 241 113 8.0 C 3.073

12) N/BET/12K W. Champaran Narkatiaganj to Pokharia to Baithar NG45.1 240 114 12.0 C 4,865

13) N/BIR/lK Saharsa PWD Road to Charne NG45.7 267 101 10.0 C 4,413

14) N/BIR/2K Saharsa Piprahi to Barmotra NG45.6 265 103 10.0 C 3,707

15) N/BIR/5K Saharsa Birpur to Baurahia NG45.7 267 106 7.0 C 5,253

16) N/MADHE/lK Saharsa Link Road to Majaura NG45.10 267 096 3.0 C 1,400

17) N/MADHE/2K Saharsa Rajpur-Khurman Malik-Shahidpur NG45.10 265 096 12.0 C 5,445

18) N/MADHE/3K Saharsa Litiahi to Baijnathapur NG45.10 263 100 35.0 C 13.232

19) N/MADHE/SK Saharsa Tikulia to Lakshmipur Bhagwati NG45.7 267 100 10.0 C 5,603

20) N/MOT/IK E. Champaran Kushar to Khizirpur NG45.5 243 105 1.0 C 296

21) N/MOT/2K E. Champaran Patauratola Bhataha to Baswaria NG45.5 245 108 3.0 C 887

22) N/MOT/4K E. Champaran Madubani Village Link NG45.5 243 107 2.0 C 590

23) N/MOT/SK E. Champaran Ranjita to Dudhahi NG45.5 242 109 2.0 C 590

24) N/MOT/6K E. Champarao Tajpur Patkhulia to Sundarpur NG45.5 243 107 2.0 C 681

25) N/MOT/8K E. Champaran isawania to Sinhasini N045.5 243 111 3.0 C 986

26) N/MOT/9K E. Champaran Kanchedwa to Papariya NG45.5 242 108 2.0 C 663 o

27) N/MOT/18K E. Champaran Areraj Market to Bariaria NG45.5 242 107 9.0 C 4.304

28) N/MOT/19K E. Champaran Bhuwachhapr to Koila Belwa NG45.5 245 105 3.0 C 995

1/ C: Construction of new All-Weather Road. I: Improvement or Strengthening of Existing (but deteriorated) All-Weather Road.

September 1960 Survey of India Estimated Route Reference Map Reference Length Work Cost Number District Description of Route Number (Km) Proposed-/ (Rs'OOOs)

29) N/MOT/21K E. Champaran Siswa Narsing to Puran Chapra NG45.5 244 105 6.0 C 2,327

30) N/MOT/22K E. Champaran Mananpur Market to Siswa Kharar NG45.5 244 106 5.0 C 1,921

31) N/SAH/3K Saharsa Pama-Pastwar-Bishupur-Atalkha NG45.10 265 097 23.3 C 9,491

32) N/SAH/4K Saharsa Patarghat to Gulam NG45.10 264 097 6.0 C 2,625

33) N/SAM/1K Samastipur Chand Chauk to Baikunth NG45.10 253 097 4.0 C 1,063

34) N/SAR/3P Saran Manjhi to Barauli (Segment) NG45.9 240 099 14.5 I 5,116

35) N/SIK/3K E. Champaran Patahijado to Kodaria Market NG45.5 247 107 5.0 C 1,804

36) N/SIW/1P Siwan Copalganj to Maharajgani NG45.5 239 103 25.6 I 8,166

37) N/SIW/2P Siwan Manjhi to Barauli (Segment) NG45.5 240 101 30.2 I 12,582

38) N/SIW/3P Siwan Mairwa to Kuchaikot NG45.5 236 104 12.8 I 4,306

39) N/SUP/iK Saharsa Jadia to Purnea Border NG45.7 267 101 18.0 C 7,573

40) N/SUP/3K Saharsa Kankar-Harihar Patti NG45.6 267 101 30.0 C 16,928

41) N/SUP/2K Saharsa Manganj to Pilwaha NG45.6 266 102 5.0 C 2,137

42) N/SUP/4K Saharsa Parsami to Chikni NG45.6 262 101 16.0 C 7,115

Reserve Schedule

43) N/BIR/3K Saharsa Chhatapur to Ratansar NG45.7 267 102 15.0 C 7,797

44) N/MADHE/4K Saharsa Singheshwarsthan to Maura-Bahrari Road NG45.10 265 100 16.0 C 9,616

45) N/SAH/2K Saharsa Sonbarsa Kachehari Station to Bhaghawa NG45.10 261 097 12.0 C 8,514

Average ERR for all Roads in North Bihar (including reserve schedule): 19% Range: 12-63%

l/ C: Construction of new All-Weather Road. X > L: Improvement or Strengthening of Existing (but deteriorated) All-Weather Road.

Note: Roads ntumber1) through 42) constitute the set of project roads. Roads 43) through 45) have ERRs lower than any project road, although at least 12%. o They are listed here so that they may be considered by IDA in the event that additions or substitutions are necessary in the set of project roads, as a result of unit cost underruns or other reasons acceptable to IDA. Any change in the set of project roads will be subject to IDA approval.

Source: REO and Appraisal Mission

September 1980 INDIA

BIHAR RURAL ROADS PROJECT

Schedule of Possible Project Roads - South Bihar

Survey of India Estimated Map Reference Length Work 1/ Cost Route Reference Proposed (Rs'OOOs) of Route Number (Km) Number District Description NG45.13 241 085 3.0 C 1,426 1) S/AUR/3K Ailrangabad Kasma to Arthna NG45.13 238 087 4.9 C 1,110 2) S/AUR/4K Aurangabad Feshar to Unthu C 2,775 Road to Lata NG45.13 240 087 9.0 3) S/AUR/6K Aurangabad Mile 4 of Rafiganj-Goh NG45.13 237 084 2.0 C 524 4) S/AUR/7K Aurangabad Haria to Bairwan NG45.13 236 085 1.3 C 337 5) S/AUR/8K Aurangabad REO Road to Bariawan NG45.13 239 089 2.8 C 754 6) SIAUR/9K Aurangabad Hanspura to Gobardhanpur NG45.13 239 087 15.5 C 3,515 7) S/AtlR/llK Aurangabad Bel to Pauthu NG45.13 239 085 4.0 C 1,211 8) S/AUR/12K Aurangabad Jailwan to Mahuwan NG45.13 238 086 3.9 C 1,307 9) S/AUR/16K Aurangabad Bhupatpur to Kachanpur NG45.13 240 084 5.6 C 1,129 10) S/AUR/17K Aurangabad Madanpur to Umga 9.5 C 3,404 Banua NG45.13 238 084 11) S/AUR/18K Aurangabad Berhni to Pachokhar C 283 PWD Road NG45.15 267 088 1.0 12) K/BAN/IK Bhagalpur Dhauni to Bhagalpur-Duoka NG45.10 266 087 14.4 1 2,644 13) S/BANt2P Bhagalpur Punsia to Dhoraiya 1.5 C 465 11 of Kolhas-Mohania NH NG44.12 231 091 14) S/BHAB/IK Rhotas Barkakatr to Mile 4.0 C 1,288 NH to Kuchilla NG44.12 232 092 15) S/B1AB/2K Rhotas Mile 4 of Kolhas-Mohania C 762 NH to Muian NG44.12 230 091 2.3 16) S/BHAB/3K Rhotas Mile 13 of Kolhas-Mohania C 1,575 NH to Barhupar NG44.12 231 092 5.1 17) S/BHAB/4K Rhotas Mile 11 of Kolhas-Mohania 2.0 C 661 Road to Sehuka 1444.12 229 093 18) S/BHAB/SK Rhotas Mile 3 of Bamgarh-Nuaon 17.6 1 3,504 (Kudra) N044.12 230 090 19) S/BNAB/IP Rhotas Bhabua to Jahanabad 0.7 C 166 PWD Road to Rajpur NG44.12 233 094 20) S/BUIY/lK Bhojpur Km 7 of Chausa-Kolhas N145.9 235 097 5.0 C 1,175 21) S/BUX/2K Bhojpur Parari to Niyajipur C 198 DB Road to Rupsagar V. Road NG45.9 236 093 0.8 22) S/BUX/3K Bhojour Mile I of Nawanagar-Surajpur C 278 PRD Road to Kazpur NG45.9 236 096 1.0 23) S/BUX/5K Bhojpur Mile 4 of Bhojpur-Dumsari 096 5.5 C 1,574 to Delha NG45.9 236 24) StBUY/6K Bhojpur Krishna Brahm C 313 H Road to Pokhraham V Road N145.9 237 095 1.0 25) 5/813717K Ehoinur Km 3 of Raghumatpur-Bagen

o w I/ C: Construction of new All-Weather Road All-Weather Road. 1: Improvement or Strengthening of Existing (but deteriorated) Survey of India Estimated Route Reference Map Reference Lengtb Work 1/ Cost Number District Description of Route Number (Km) Proposed (Rs'OOOs)

26) R/BHAGtlP Bhagalpur Nathanagar to Rhadanagar NG45.10 266 090 9.6 I 2,009 2,698 27) S/BlIAG/2P Bhagalpur Sultanganj to Shakund NG45.10 263 091 12.2 T 119 28) S/GAY/2K Gaya REO Road to Siripur NG45.13 245 088 0.5 C

521 29) S(GAY/4K Gaya Tituia to Gafa Khurd NG45.13 245 085 2.0 C 1,261 30) S/GAY/6K Gaya Wazirganj Station to Ghuriawan NG45.13 247 086 4.0 C

90 31) S/GAY/8K Gaya Mile 15 of Gaya-Daudnagar Road to Utran NG45.13 243 087 0.4 C

32) SIGAY/9K Gaya Gapatpur to Bar NG45.13 242 083 1.0 C 233

33) S/GAY/1lK Gaya Pathara to Tankupa NG45.19 246 085 2.8 C 1,091

1,041 34) S/GAY/14K Gaya Bartara to Mangrawan NG45.13 246 085 3.5 C

35) S/GAY/15K Gaya Tarwan to Meari NG45.13 247 085 2.0 C 802

36) S/GAY/16V Gaya CT Road Near Dobhi to Kusabija NG45.13 243 083 1.0 C 203

37) S/GAY/17R Gaya Hathmarwa to Nagwan NG45.13 248 085 10.0 C 2,327

38) S/GAY/19K Gaya Goitha to Panion NG45.13 240 083 2.5 C 2,835

39) S/GAY/21K Gaya Mile 16 Fatehpur-Gaya Road to Dhibar NG45.13 246 084 0.3 C 220

40) S/GAY/22K Gaya Lakrahi-Dariapur Kurua-Bagdhi NG45.13 242 085 5.0 C 1,030

41) SIGAY/23K Gaya Kormathu to Intara NG45.13 244 086 5.0 C 1,106

42) S/GAV/25K Gaya Kurkihar to Amethi NG45.13 247 086 3.0 C 879

960 43) S/GAY/27K Gaya Sandiha to Kaniausi NG4S.13 242 086 4.0 C 5,087 44) S/GAY/30K Gaya Atribaborma to Jimraur NG45.13 247 088 14.8 C

114 45) S/JAH/IK Gaya Kurtha Road to Sisama NG45.9 243 090 0.5 C

46) S/JAH/2K Gaya Jamanapur REO Road to Kansua NG45.9 243 090 1.3 C 473

C 209 47) S/IAH/3K Gaya PWD Road to Nonhimore NG45.9 245 091 1.0 1,585 48) q/JAH/4K Gaya Kakato to Utter Sarthu NG45.9 245 091 6.3 C

49) S/JAH/SK Gaya Kurtha to Pandaul NG45.9 243 090 3.2 C 895

50) S/JAb/6K Gaya REO Road to Dewara NG45.9 246 092 3.5 C 1,121

51) S/JAH/7K Gaya Bedarabad-Belkhara Road to Rampur Chaurah NG45.9 241 091 3.8 C 1,210 1.0 C 292 52) S/LAK/3K Monghyr Chakandra Link to Sheikhpura-Sikandra PWD Road NG45.10 254 089

C 462 53) S/LAK/4K Monghyr MNP Road No. 68 to Itaun NG45.10 257 089 1.6

0.8 C 258 54) S/LAK/5K Monghyr Dhira Link to Lakhisarai-Sikandra PWD Road NG45.10 256 088

1/ C: Construction of new All-Weather Road. 1: Improvement or Strengthening of Existing (but deteriorated) All-Weather Road. Survey of India Estimated Route Reference Map Reference Length Work Cost Number District Description of Route Number (Km) Proposed1- (Rs'OOOs)

55) S/LAK/6K Monghyr Surajgarha-Kajra PWD Road to Urain NG45.10 258 090 4.8 C 1,384

56) S/LAK/7K Monghyr Unman Link-Bar Bigha-Shekhupur Sarai PWD Road NG45.10 253 090 1.0 C 297

57) S/LAK/8K Monghyr Suraigarha-Barhia PWD Road to Marpur NG45.10 257 090 6.0 C 1,728

58) S/LAK/9K Monghyr MNP Road No. 68 to Gohri NG45.10 257 089 1.6 C 462

59) S/NAW/lK Nawadah Daulatpur to Shur NG45.10 251 088 0.5 C 128

60) S/NAW/lOK Nawadah Bhatta (No. 35A) to Siur NG45.14 252 086 5.0 C 1,505

61) S/NAW/liK Nawadah Toladin to Amawan NG45.14 250 085 3.5 C 916

62) S/NAW/14K Nawadah Lohanipur (NH 31) to Tiar NG45.14 250 086 4.8 C 1,451

63) S/NAW/17K Nawadah Jalpa to Rals NG45.14 251 087 4.1 C 1,044

64) S/PAT/lK Patna Singariawan Station to Shahjahanpur NG45.9 248 093 2.0 C 720

65) S/SAS/lK Rhotas Km 28 of Sasaram-Koihas Road to Balthari NG44.12 233 091 1.0 C 292

66) S/SAS/3K Rhotas KM 14 of Barawan-Dinarar Road to Barahri V. Road NG45.9 234 091 6.0 C 1,616

67) S/SAS/4K Rhotas Km 4 of Amari-Babhanpurwa Road to Nahauna Road NG45.13 235 089 1.0 C 266

68) S/SAS/5K Rhotas Km 30 of Sasaram-Malhipur Road to Ugahni V. Road NG44.16 231 087 1.0 C 281

69) S/SAS/6K Rhotas Km 4 of Nagariganj-Nokha PWD Road to Parsia NG45.9 236 090 2.0 C 563

70) S/SAS/7K Rhotas Km 13 of Bikramganj-Nasariganj Road to Burhawal Road NG45.9 237 090 2.5 C 707

71) S/SAS/8K Rhotas Km 18 of Bikramganj-Nasariganj PWD Road to Baradih V. Road NG45.9 237 090 3.0 C 932

Reserve Schedule

72) S/AUR/1OK Aurangabad Panthu to Itawan NG45.15 239 088 8.0 C 2,610

73) S/AUR/13K Aurangabad Nabinagar to Pawari-Tarwan Road NG45.13 235 084 6.6 C 5,379

74) S/GAY/1CK Gaya Guraru-Mathurpor Road to Tilori NG45.13 242 086 2.4 C 452

75) S/CAY/13K Gaya Kabirpur REO Road to Naili NG45.13 246 088 2.0 C 646

76) S/NAW/4K Nawadah Kachna-Horm Kawakole Road to uiri NG45.14 253 084 1.0 C 375

77) S/NAW/13K Nawadah Manjitur to Mai NG45.14 251 088 1.0 C 348

78) S/NAW/16K Nawadah Mathurapur to Nawadi NG45.14 253 086 3.1 C 1,068

Average ERR for South Bihar Roads: 24% Range: 10-56I of>C

1/ C: Constrrctioo of new All-Weather Road. I: Improvement or Strengthening of Existing (but deteriorated) All-Weather Road.

Note: Roads number 1) through 71) constitute the set of project roads. Roads 72) through 78) have ERRs lower than any project road, althoulgh at least 10%. They arc listed here so that they may be considered by IDA in the event that additions or substitutions are necessary in the set of project roads, as a result of unit coat -nderruns or other reasons acceptable to IDA. Any change in the set of projoct roads will be subject to IDA approval.

Source: REO and Appraisal Mission

September 1980 INDIA

BIHAR RURAL ROADS PROJECT

Schedule of Possible Project Roads - Chotanagpur/santhal Pargana

Survey of India Estimated Route Reference Map Reference Length Work Cost Number District Description of Route Number (Km) Proposed- (Rs'OOOs) Remarks

1) C/DEO/lK Palamnau Madhupur to Lahajori NF45.14 262 078 19.0C 8,842 1,136 2) C/KHU/4K Ranchi Karra to Urikel NF45.5 243 063 5.0 C

C 2,089 3) C/lHU/7K Ranchi Sonahatu to Jamudag NF45.2 252 067 9.0 410 4) C/RAN/IK Ranchi Murma to Tandul NF45.1 246 068 2.0 C 612 5) C/RAN/2K Ranchi Bero to Purio NF45.1 224 068 3.0 C 410 6) C/RAN/3K Ranchi Khelari to Indrapuri NF45.1 244 072 2.0 C 615 7) C/RAN/4K Ranchi Itki Railway Station to Ranikhatanga NF45.1 245 069 3.0 C

C 313 8) C/RAN/7K Ranchi Anandi to Baridih NF45.2 249 070 1.5 C 390 May be submerged by 9) C/SAR/4K Singhbhum Kuju to Icha NF45.6 253 059 2.5 irrigation reservoir 619 10) C/SIM/IK Ranchi Karmdih to Barkibura NF45.5 233 060 3.0 C 49.0 15,436

Estimated E.R.R. for ChotanagpurlSanthal Pargana Roads: 22% Range: 11-54%

1/ C: Construction of new All-Weatber Road. I: Improvement or Strengthening of Existing (but deteriorated) All-Weather Road.

Source: REO and Appraisal Mission

September 1980 - 36 -

Table 7

INDIA

BIHAR RURAL ROADS PROJECT

Schedule of Plant and Equipment for REO Road Construction and Maintenance

No. to be Procured in

Rs lOOO's Year 1 2 3 4

1. 8-10 ton Diesel Rollers, 67 No. @Rs 230,000 15,410 8 35 24 - 2. lOt/hr Asphalt Mixers, 13 No. @ Rs 200,000 2,600 3 7 3 - 3. Bitumen Kettles with Hand Pump and Lance 87 No. @ Rs 19,000 1,653 20 48 19 - 4. Bitumen Distributors, 6,000 L, 2 No. @ Rs 500,000 1,000 1 1 - - 5. Bitumen Preheaters, 6,000 L, 2 No. @ Rs 350,000 700 - 1 1 - 6. Mobile Concrete Mixers, 10/7, 53 No. @ Rs 17,000 901 28 25 - - 7. Concrete Vibrators, 25 No. @ Rs 4,000 100 15 10 - - 8. F.W.D. Pick-ups for Mobile Laboratories, 4 No. @Rs 90,000 360 4 - - - 9. F.W.D. Supervision Vehicles, 48 No. @ Rs 70,000 /a 3,336 32 16 - - 10. Mobile Drilling Rig, 1 No. @Rs 200,000 200 1 - - - 26,289

Spares, 17% (say) 4,716 31,000

Expenditures in Year 1 (1980/81) = 8,012,000 + 1,393,000 from Table 8 Expenditures in Year 2 (1981/82) = 14,988,000 Expenditures in Year 3 (1982/83) = 8,000,000 Expenditures in Year 4 (1983/84) = - Expenditures in Year 5 (1984/85) = - 31,000,000

/a Includes 12 retroactively financed.

Source: Mission Estimates

September 1980 - 37 -

Table 8

INDIA

BIHAR RURAL ROADS PROJECT

Schedule of Materials Testing and Survey Equipment

Rs.

1. Fine sieves, 12 sets @ Rs 750 9,000 2. Coarse sieves, 12 sets @ Rs 950 11,400 3. Sample ejectors, 1-1/2" dia., 8 sets @ Rs 700 5,600 4. Liquid limit-apparatus, 8 sets @ Rs 850 6,800 5. Balance with weights, 250 g., 12 @ Rs 400 4,800 6. Compaction apparatus, 12 sets @ Rs 1600 19,200 7. Gun metal moulds for Item (6), 16 @ Rs 1300 20,800 8. Rammer, 4.39 kg x 450 mm fall for Item (6), 12 @ Rs 500 6,000 9. Core cutter, 8 @ Rs 400 3,200 10. Sand pourer complete, 8 @ Rs 450 3,600 11. CBR gun metal moulds, 32 @ Rs 1400 44,800 12. Slotted metal weights, 5 kg, 32 @ Rs 75 2,400 13. Perforated plates, 148 mm dia., 32 @ Rs 150 4,800 14. Annular metal weights, 2.5 kg, 32 @ Rs 75 2,400 15. Rapid moisture testers, 0-50%, 12 @ Rs 1500 18,000 16. Flakiness thickness gauges, 12 @ Rs 450 5,400 17. Branger balance with weights, 10 kg, 12 @ Rs 750 9,000 18. Hydraulic jack, 10 tons, 8 @ Rs 1,100 8,800 19. Compression teting machine, 100 tons, with pumping unit and pressure gauge to 100 t x 500 kg. 220 v, 4 @ Rs 24,500 98,000 20. Vibrating machine, to I. S. 4031, 220 v, with time switch, 4 @ Rs 5,500 22,000 21. Spare cube moulds for Item (20) 7.06 cm, 48 @ Rs 200 9,600 22. Compression testing machine, 25 ton, for teting cement mortar cubes, 220 v, with pumping unit and presure gauge, 25 ton x 100 kg, 4 @ Rs 16,500 66,000 23. Cube moulds, 14 cm, cast iron with machined base plate, 100 @ Rs 300 30,000 24. Slump cone apparatus to I. S. 1199-1959, 16 @ Rs 900 14,400 25. Transit theodolites with tripods, 22 @ Rs 7,500 165,000 26. Surveyors' levels with tripods, 44 @ Rs 3500 154,000 27. Miscellaneous small materials testing equipment 24,000 28. Miscellaneous small survey equipment 24,000 795,000 29. Materials testing equipment to be retroactively financed 600,000

Total 1,393,400

Source: Mission Estimates

February 1980 INDIA

BIHAR RURAL ROADS PROJECT

Project Costs by Year (Roneen Millions)

1980/81 1981/82 1982/83 1983/84 1984/85 Tonal

local Poreg Tan Cora1 Local toreigo Tan Totaltoretge Local Porelgo Tax Total Local Foreign Tao Total Local ForeRg- Tan Tonal Local Tta Tonal T. load Coos.cro. loo a-d -__Tt___L _I___ ... Inprovenenr__- 10.24 1.45 0.48 12.17 36.55 5.46 2.01 44.02 62.45 9.33 3.41 75.19 63.98 9.56 3.53 77.07 46.86 7.01 2.56 56.43 220.08 32.81 12.09 264.88 Conntigenolen: Q-antity lOT 1.02 0.15 0.06 1.23 3.65 0.55 0.20 4.40 6.25 0.93 0.34 7.52 6.40 0.96 0,35 7.71 4.68 0.70 0.26 5.64 22.00 3.29 1.21 26.50 Price 0.85 0.12 0.115 1.02 7.39 1.10 0.41 8.90 18.48 2.76 1.01 22.25 25.34 3.78 1.40 30.52 23.43 3.50 1.28 28.21 75.49 11.26 4.t5 90.90 Total (:onts. 1.87 0.27 0.11 2.25 11.04 1.65 0.61 13.30 24.73 3.69 1.35 29.77 31.74 4.74 1.75 38.23 28.11 4.20 1.54 33.85 97.49 14.55 5.36 117.40

Total I sith(. ontingn-ia l2.11 1.72 0.59 14.42 47.59 7.11 2.62 22.32 87,18 13.02 4.76 104.96 95.72 14.30 5.28 115.30 74.97 1t.21 4O10 90.28 317.57 47.36 17.33 382.28

TI. load Con trocti-o a-d Maintenaane tquip-ent ead Space Parts 6.54 1,53 0.94 9.41 11.06 2.42 1.51 14.99 5.90 1.29 0.81 8.00 ------23.90 5.24 3.26 32.40 Co-tioeooi-s: Q-ontity 5y 0.34 .09 0.04 0.47 0.55 0.12 0.08 0.75 0.30 0.06 0.04 0.40 - - - - - _ _ _ 1.19 0.27 0.16 1.6Z Price 0.34 0.42 0.06 0.72 2.14 0.47 0.29 2.90 1.67 0.37 0.23 2.27 -4.35 0. 0.58 5.89 Total Coerge. 0.88 0.21 0.10 1.19 2.69 0.59 0.37 3.65 1.97 0.43 0.27 2.67 ------5.54 1.23 0.74 7.51

Tonal II itnh Conrtngencies 7.82 1.74 1.04 10.60 13.75 3.01 1.88 18.64 7.87 1.72 1.08 10.67 ------29.44_ 6.47 4.80 39.91

111. Sopertyisio (a) Operating Coot 1.30 0.31 0.21 1.90 1.17 0.26 0.37 1.60 1.17 0.26 0.17 1.60 1.17 0.26 0.17 1.60 0.95 0.21 0.14 1.30 5.84 1.30 0.86 8.00 (b) Snaff 2.25 - - 2.25 .51 -- - .51 1.50 1.50 1.50l - 1 1.50 1.25 - - 1.25 8.00 - - 8.00 Togal III 3.63 0.31 0.21 4.15 2.67 0.26 0.17 3.10 2.67 0.26 0.17 3.10 2.67 0.26 0.17 3.10 2.20 0.21 0.14 2.55 13.84 1.30 0.86 16.00 C-otitgen-cio: Qoantity lOT 0.36 0.03 0,02 O.4I 0.26 0.03 0.02 0.31 0.26 0.03 0.02 0.31 0.26 0.03 0.02 0.31 0.22 0.02 0.01 0.25 1.36 0.14 0.09 1.59 Price 0.30 0,03 0.02 0.35 0.55 0.05 0.13 0.63 1.84 0.07 0.05 0.96 1.13 0.10 0.06 1.29 1.16 0.11 0.07 1.34 3.98 0.36 0.23 4.57 F Total Cootgs. 0.66 0.06 0.04 0.76 0.81 0.08 0.05 0.94 1.10 0.10 0.07 1.27 1.39 0.13 0.08 1.60 1.38 0.13 0.08 1.59 5.34 0.50 0.32 6.16

Total 117 otth CoenRigencies 4.29 0.37 0.25 4.91 3.48 0.34 0.22 4.04 3.77 0.36 0.24 4.37 4.06 0.39 0.25 4.70 3.58 0.34 0.22 4.14 19.18 1.80 1.18 22.16

OCood Total I - IT7 20.81 3.29 1.63 25.73 50.28 8.14 3.69 62.11 71.02 10.88 4.39 86.29 46.65 9.82 3.70 80.17 49.06 7.22 2.70 58.98 257.82 39.35 16.11 313.28 Qaantity Contingencten 1.68 0.27 0.12 2.017 4.46 0.70 0.30 5.46 6.81 1.02 0.40 8.23 6.66 0.99 0.37 8.02 4.90 0.72 0.27 5.89 24.53 3.70 1.46 29.69 Price Cootingencies 1.69 0.22 0,13 2.09 10.08 1.62 0.73 12.43 20.99 3.20 1.29 25.48 26.47 3.88 1.46 31.81 24.59 3.61 1.35 29.55 83.82 12.58 4.96 111.36 Tonal Contingeocies 3.37 0.54 0.25 4.16 14.54 2.32 1.03 17.89 27.80 4.22 1.69 33.71 33.13 4.87 1.83 39.83 29.49 4.33 1.62 35.44 108.35 16.28 6.42 131.05

Grand Total with Coatingene 24.18 3.83 1.88 29.89 64.82 10.46 4.72 80.00 98.82 15.10 6.08 120.00 99.78 14.69 5.53 120.00 78.55 11.55 4.32 94.42 366.1 7 55.63 22.53 444.34

Ntot: (1) Qlantity Cootingencies: lIT for civil ourko (road coostcac.oln aod inpro--e-t) aod -pers.. ioni 51 fSo eqaipaent. (2) Prico Coatlrnolno : For donestic pricco: 104 in 1980; 7Y in 1981-83; 5Y in 1984-85. Poe Onreraationall prices (applicable en indIrect foreign componeot): 10.5% ic 1980; 98 41 1981; 8% In 192; 7% io 1963-85. (3) Rlad construction awli ip-roemeot caste consls-t of 874 local cost aod 132 indi-ect foreign cost. For eqoip-ent, the relevant figuras are 82Z aod 18%. For -cper-ioin- (operating coot), 82U and 18. Soper-ision (saIff) conI isto of 100% lo_sl cost. (4) T-e Incidence: 4.83 .cr ciil -nrko (road -contracio- and ioproseent); 11.21 for eqalip.ent; 121 for saper-lsion (opee asing coets); and no taxes Soc sopervisoioo (stoff)

Soorce: Appraisal Mission September 1980 - 39 - Table 10

INDIA

BIHAR RURAL ROADS PROJECT

Estimated Schedule of Disbursements

IDA Fiscal Year Cumulative Disbursementsto and Quarter end of Quarter (US$ '000)

1980/81 September30, 1980 December 31, 1980 March 31, 1981 0 June 30, 1981 700

1981/82 September30, 1981 2,300 December 31, 1981 4,200 March 31, 1982 6,200 June 30, 1982 8,300

1982/83 September30, 1982 10,500 December 31, 1982 12,900 March 31, 1983 15,400 June 30, 1983 18,100

1983/84 September30, 1983 20,700 December 31, 1983 23,200 March 31, 1984 25,600 June 30, 1984 27,900

1984/85 September30, 1984 30,000 December 31, 1984 31,900 March 31, 1985 33,600 June 30, 1985 35,000

Source: Mission Estimates

Credit EffectiveDate: January 30, 1981

Closing Date: June 30, 1986

September 1980 - 40 -

Table 11

INDIA

BIHAR RURAL ROADS PROJECT

Estimated Staff Requirements for Improved REO Rural Road Maintenance

Estimated Additional Number of Staff Estimated Necessary Engineering Staff to be Trained at Year Maintenance Expenditure Required CRRI, Delhi (Rs Million) /a (All Grades)

1979/80 15 - 15

1980/81 25 50 15

1981/82 23 50 15

1982/83 41 50 10

1983/84 49 50 10

1984/85 58 50 10

Total 221 250 75

/a 1980 prices

Source: Appraisal Mission

September 1980 - 41 -

Table 12 Page I of 2

BIHAR

BIHAR RURAL ROADS

Estimate of Additional Planning, Supervision,

Monitoring, Quality Control Costs and Operating Costs

Staff and Office Costs

For Planning: Rs

1 SuperintendingEngineer, 18 months @ Rs 2,000 36,000

' Executive Engineers, 72 man months @ Rs 1,500 108,000

1 Agro-Economist,18 months @ Rs 1,500 27,000

12 Asst. Engineers, 200 man months @ Rs 1,100 220,000

Drawing Office Staff (L.S.) 100,000

Consumable Stores 300,000

791,000

Supervision of Construction,Project Monitoring and Quality Control:

2 SuperintendingEngineers, 120 man months @ Rs 2,400 288,000

8 Executive Engineers, 450 man months @ Rs 1,800 810,000

24 Asst. Engineers, 1400 man months @ Rs 1,200 1,680,000

48 Junior Engineers, 2500 man months @Rs 700 1,750,000

Laboratory Technicians, 700 man months @ Rs 600 420,000

Drivers, 2000 man months @ Rs 450 900,000

Casual Labor, 2000 man months @ Rs 250 500,000

Consumable Stores (L.S.) 700,000

Research monitoring on agriculturaland

socio-economicbenefits 100,000

7,148,000

Total staff and office costs: 7,939,000

But say Rs 8.0 million

* For retroactive financing.

Year 1: Rs 2.25 million (includes Rs 791,000 retroactivelyfinanced)

Year 2: Rs 1.50 million

Year 3: Rs 1.50 million

Year 4: Rs 1.50 million

Year 5: Rs 1.25 million - 42 -

Table 12 Page 2 of 2

Operating Costs.

For Planning and Project Preparation:

Spares and repairs to vehicles, 108 veh-months

@ Rs 1,000, say 110,000

POL, 108 veh-months @ Rs 2,400, say 260,000

370,000

For Supervision of Construction, Project Monitoring and Quality Control:

Spares and repairs to vehicles, 1800 veh-months

@ Rs 900 1,620,000

POL, 1800 veh-months @ Rs 3,000 5,400,000

7,020,000

Field Laboratories:

Spares and repairs to vehicles, 150 veh-months

@ Rs 1,000 150,000

POL, 150 veh-months @ Rs 2,400 360,000

510,000

Consumable Stores (L.S.) 100,000

Total Operating Costs: Rs 8,000,000

* For retroactive financing.

Year 1: Rs 1.9 million (includes Rs 370,000 retroactively financed)

Year 2: Rs 1.6 million

Year 3: Rs 1.6 million

Year 4: Rs 1.6 million

Year 5: Rs 1.3 million

Source: Mission estimates

September 1980 - 43 -

ANNEX 1 Page 1

INDIA

BIHAR RURAL ROADS PROJECT

The Role of Road Transport in Bihar

1. Although road transport is becoming more important in long distance freight movement in India as a whole, in Bihar, analysis of the nature of agricultural produce, its market structure, seasonal variations and inputs, indicates that the prime requirement of the small farrmer is for efficient short distance transport providing direct access between farm and market. Government marketing strategies and the extension of the feeder road network will heighten this need and will require an increase in the supply of suitable vehicles. The requirement is for small units of transport able to operate over distances of 10 to 20 km, and either pick-up trucks or the improved rubber-tired bullock cart would be suitable. However, the chronic shortage of motor fuel coupled with the initial cost of a pick-up truck which puts it quite out of reach of the average farmer, means that the animal-drawn cart is the most practicable form of freight transport available for farmers.

2. At present, road goods transport is dominated by trucks, tractor trailers and bullock carts, mostly of the traditional wooden wheeled variety. For the small and marginal farmer, bicycles appear to fulfill a significant role in the transport of small consignments. Motorized light goods vehicles and the mixed passenger/goods vehicle common in many countries are seldom used, but are increasing in numbers. The major forms of transport are unevenly distributed over the state: trucks are found mostly near towns and industrial centers, tractor trailers are found mainly around Patna and in North Bihar where jute and sugar are grown, while bullock carts tend to be concentrated in the East and Southeast of the State. Figures for the growth of the truck fleet in Bihar are erratic, and have averaged about 4 percent a year over the last two or three years. However, this higher rate of growth recently seems to be associated with a shortage of rail capacity for long distance freight, rather than with farm-to-market transport, and future growth is likely to take place in and near towns and industries. With a new truck costing about Rs 150,000 (200 times the annual average per capita income in Bihar) and continuing diesel shortages forecast, it does not seem likely that use of trucks will increase sufficiently to provide the local transport needed by farmers.

3. Growth prospects for tractors and trailers are less clear. There has been a high rate of increase for tractors and trailers for some years, but this seems to have been confined to areas where high bulk products like jute and sugarcane are grown. While there does not appear to be any shortage in the supply of tractors and trailers, the availability of credit and the complexities of its administration are alleged to be a hindrance to faster growth. Finance for tractor purchase is to be had through ARDC and other - 44 -

ANNEX 1 Page 2 organizations,but again the shortage of diesel fuel makes future growth uncertain.

4. The number of bullock carts in the state has declined in recent years, but the annual decline in carts has been less than the increase in improved rubber-tiredcarts: since the latter have a larger carrying capacity than the traditionalcart, the bullock cart transportcapacity in Bihar has increased. Operating under ARDC refinancingschemes, a number of banks are now willing to finance the purchase of improvedrubber-tired carts, and the Land DevelopmentBank is consideringfinancing about 3,000 such carts in four districts in 1980-82, while the State Bank of India plans to finance about 5,000 carts a year over the next two years. The target group in both cases will be sugar and jute growers. Among other forms of non-motorized transport,the bicycle and load carrying tricycle are the most important, especially for short distances over surfaced roads. At present, their use is limited to near urban areas, but any extension of the surfaced road network will widen their area of use. Supply statistics are not available,but ample stocks of bicycles seem to be availableto towns and villages, the price (about Rs 500) is affordableby the averageworker. Even the bullock cart at about Rs 1,800 for the traditionaltype and Rs 3,000 for the ADV cart, plus bullocks in both cases, is almost beyond the reach of the small to medium farmer, and it is likely that unsatisfieddemand will encourage the wider use of load carrying tricycles, as has happened elsewhere.

5. In making cost comparisonsbetween the differentmodes of transport availableto the farmer for his produce, it is necessary to make various assumptionsand comparisonis made more difficult since the differentvehicles are usually not operatingunder the same conditions. However, acceptingthis caveat, the followingcosts are estimated as being typical under Bihar conditions. - 45 -

ANNEX 1 Page 3

Assumed Max Cost per Cost per Average Charge Vehicle Type Payload (kg) km (Rs) tonne-km (Rs) per tonne-km (Rs)

Truck

Tata 1210 SE 15,000 1.7 0.12 ) ) 0.12-1.00 HindustanJ6-167 12,000 1.5 0.14 )

Pick-up

Bajaj Tempo Matador 2,000 0.6 0.28

Tractor-trailer

25 HP 3,000 2.8 0.93 ) ) 1.0-1.3 35 HP 5,000 3.3 0.66 )

Power Tiller

12 HP 1,000 1.4 1.42

Cycle Rickshaw 500 0.2 0.30 12-16

ADV Bullock Cart

Bank loan financed 2,500 1.1 0.44 ) ) Bank loan & subsidy 2,500 1.0 0.38 ) 1.0-1.2 ) Private finance 2,500 0.9 0.36 )

TraditionalBullock Cart

Private finance 1,000 1.0 1.00 0.75-3.0

These figures are general, covering operation on all types of road. Data is not sufficient to differentiatebetween various road types, but as a guide, operation of a heavy truck on a pucca road is estimated locally at Rs 1.5 per km compared with Rs 2.6 per km on kutcha roads, an increase of about 70%. The apparently lower cost of privatelyfinanced bullock carts is due to the very conservativeassumption made in bank financingregarding annual maintenance. The effect of the Government subsidyof 33.3% for marginal farmerson the ADV cart, availableunder the IntegratedRural Development Programme, is seen to be quite small on transportcosts.

6. The largest truck provides the cheapest transport,with the power tiller as the most expensive. The pick-up truck is the second cheapestwith - 46 -

ANNEX 1 Page 4 cycle rickshaws and the ADV cart as reasonablealternatives. However, if damage to the road pavement were taken into account, the latter two alterna- tives would become more attractive. Similarly,consideration of pavement damage would increase the overall cost of operatingthe traditionalbullock cart. There is a reasonablecomparison between costs and charges made in most cases except for cycle-rickshaws,while the sometimeslow charges for truck transportare only made possible by the almost universal 25% overloading.

7. The evidence is that within Bihar there is very little inter-modal competitionfor farm goods transport. On the contrary,their relationshipis largely complementary,since the state of rural roads is often such that trucks cannot penetrateinto the small villages, while with a top speed of about 5 kph, the bullock cart is limited to a maximum range of about 20 km. Tractor trailers are able to operate on rougher roads and so extend the motorized transportservices, but use of tractors for road travel shortens their working life and may not, therefore,be so profitableas it appears. - 47 -

ANNEX 2 Page 1

INDIA

BIHAR RURAL ROADS PROJECT

Project Reportingand MonitoringRequirements

1. Within six months of the completionof the project, Governmentwill submit to the Associationa Project CompletionReport on the executionand initial operationof the project, its costs and the 'senefitsderived or expected to be derived from it, an assessmentof the performanceby Govern- ment and by the Associationof their respectiveobligations under the Credit Agreement and the accomplishmentof the purpose of the credit. Details of the contents and requirementsof the Project CompletionReport were discussed and agreed at negotiations.

2. In order to assess more exactly the agriculturaland transportation benefits likely to accrue from the project, Governmentwill undertake a program to provide the followingdata in respect of an agreed sample of project roads and their areas of influence:

(i) Progress of works. Quarterly reports will be compiled to show the rate of progress of constructionas compared with the bid estimate and detailing causes for overruns of time, if any;

(ii) Cost Information. Final cost of the works will be compared with the engineers'estimate and the bid price. Assessment will be made of the reasons for underruns or overruns of cost, and unit prices will be compared,so far as possible,with unit costs of work as carried out;

(iii) ComplementaryInvestments. Progress in the implementation, by GOB, of complementaryinvestments in the area of influence of the project road;

(iv) Traffic Counts. Classifiedtraffic counts will be carried out on the roads concerned(and on parallel routes which may experiencediversion) over sufficientperiods before and after constructionto give estimates of annual average daily traffic flows, and similar counts will be carried out on nearby roads unaffectedby the project to give a control of local traffic growth. Traffic counts will include both motorized and non-motorizedtraffic and an estimate of loads carried. Origin and destinationsurveys may be required in some cases;

\N - 48 -

ANNEX 2 Page 2

(v) AgriculturalCrops and Yields. Within the agreed area of influence,details will be collectedon types of crops, average yields, crop areas, amounts and types of fertilizers, pesticides and seeds used and availabilityof irrigationfor the periods before and after the project;

(vi) Transportof Produce. Surveys will be made before and after the project to determine the amounts and types of crops moved, origins and destinationsof movement, period of storage (if any) and type of storage used within the area of influece, method of transportused, average transportcosts and the charges levied on clients, and ownership of vehicles used; and

(vii) Prices. Average farm gate and market prices for the principal crops will be collectedbefore and after the project with similar data for control purposes from an area unaffected by the project.

(viii) Socio-EconomicFactors. In order to assess the impact of rural road improvementon the social and economic life of villages affected, IDA expects to collect data, with the help of GOB, on a range of parameters such as industrialization,education,health, rural electrificationand fertility rates in the area of influence,compared with unaffectedareas. Details of what are consideredappropriate parametersare to be found in the GOI National Council of Applied Economic Research publication"Socio-Economic Impact of Roads on Rural Development,"(July 1979). - 49 -

ANNEX 3 Page 1

INDIA

BIHAR RURAL ROADS PROJECT

Items Included in the Rural Road Survey Forms

REO collectedthe following items of informationfor each road in the shortlist:

1. Road Identificationcode; names of locationsat both ends of the road; district and block name.

2. Road length.

3. Present condition (brief description).

4. Average daily traffic, classifiedby mode: cars, heavy trucks, light trucks,motorcycles, bicycles and carts.

5. Soil type, indicatingCBR, %PL and %LL.

6. Estimated cost of construction,including separate estimates for costs of earthworks,sub-base, base, surfacing,culverts and bridges.

7. Area of influenceof the proposed road, and population in it.

8. Size of existing and planned irrigatedareas in the road's area of influence.

9. Type of existing and planned irrigation.

10. For each type of irrigation: average life and replacement cost of civil works and equipment;cost and periodicityof regular maintenanceand partial reconstruction;and annual running cost.

11. Principal crops in the area of influence(present and future): area devoted to each crop; averageyields; and farmgate and market prices.

12. Present and future costs of agriculturalinputs (other than irrigation),for each crop: seeds, fertilizer,pesticides, and insurance. - 50 -

ANNEX 3 Page 2

13. Freight rates of motorized and non-motorized modes.

14. General information of farmers' cooperatives in the area of influence of the proposed road.

15. Commercial banks with branches in the area of influence, providing financing for motorized and non-motorized vehicles.

16. Location of permanent market.

17. Map of proposed road and its area of influence.

NOTE: Survey forms completed by REO for 252 roads are kept in the project file. - 51 - ANNEX 4 Page I

INDIA

BIHAR RURAL ROADS PROJECT

Sample Economic Calculations

CASE I: NO ADDITIONAL IRRIGATION DURING PROJECT PERIOD.

Data used here are from road S/GAY/6K

Area of influence of road (AOI): 2,196 ha.

Present irrigation is 1089 has.(i.e 49.6% of AOI).

It is assumed that irrigation is equally used by all crops.

No expenditures for additional irrigation will take place.

Cost of road construction Rs 1,262,000; road maintenance is Rs 24,000 per year; the salvage value of the road is Rs 310,000 at year 10.

1. CROP AREAS (ha.)

Present Planned Increase /a

PADDY 1,517 1,828 311

MAIZE 229 290 61

WHEAT 995 1,245 250

Total 2,741 3,363 622

/a A sensitivity analysis is carried out below to determine the likely reduction of the rate of return if this increase does not take place. - 52 - ANNEX 4 Page 2

2. AGRICULTURAL PRODUCERS' SURPLUS (Rs per ha)

A B C D

No Irrigation With Irrigation No Irrigation With Irrigation No Road No Road With Road With Road No Improved No Improved With Improved With Improved Practices Practices Practices Practices

PADDY 985 1460 1302 1777

MAIZE 109 274 219 384

WHEAT 436 628 564 756

These figures have been computed for the South Bihar Region where the Gaya Dis- trict is located. The table also reflects the experience elsewhere in India, which has shown that the expansion of irrigation facilities contributes by itself to about 60% of the growth in agricultural production. See Maharashtra Irrigation II Project, Volume II - Sectoral Background.

3. MAXIMUM ATTAINABLE BENEFITS (it will be later assummed that only 70% of these benefits will materialize - Eastern Foodgrain Review - over 7 years).

CAI = Crop Area Irrigated CANI = Crop Area Not Irrigated (Rs per year) Increase in Benefits W/0 Project W Project W vs. W/0 Project

PADDY CAI 1517 x .496 x 1460 1527 x .496 x 1777 238,521 CANI 1517 x .504 x 985 1517 x .504 x 1302 647,290 + 311 x 1302 885,811

MAIZE CAI 229 x .496 x 274 229 x .496 x 384 12,494 CANI 119 x .504 x 109 229 x .504 x 219 26,055 + 61 x 219 38,549

WHEAT CAI 995 x .496 x 628 995 x .496 x 756 63,171 CANI 995 x .599 x 436 995 x .504 x 564 205,189 + 250 x 564 268,360

Total maximum attainable benefits Rs 1,192,720 per year (70% thereof is Rs 834,904 per year). - 53 -

ANNEX 4 Page 3

4. ECONOMIC RATE OF RETURN

(Rs million)

Agricultural Road Road Producers' Net Year Construction Maintenance Surplus Benefits

0 (1.261) (1.261) 1 (.024) 0.119 0.095 2 (.024) 0.239 0.215 3 (.024) 0.358 0.334 4 (.024) 0.477 0.453 5 (.024) 0.597 0.573 6 (.024) 0.716 0.692 7 (.024) 0.835 0.811 8 (.024) 0.835 0.811 9 (.024) 0.835 0.811 10 0.310 (.024) 0.835 1.121

ERR = 28.7%

5. SENSITIVITY ANALYSIS

Assuming a 30% reduction in benefits, ERR = 20.4%

Assuming there is no increase whatsoever in cropped area, ERR = 14.6%

CASE II: ADDITIONAL IRRIGATION TAKES PLACE DURING PROJECT PERIOD

Data used are from road N/MOT/2K

Area of influence (AOI) of road is 931 ha.

CANAL TUBEWELL TOTAL

Present Irrigation 20 ha 120 ha 140 ha (15% of AOI) Additional Irrigation 10 ha 60 ha 70 ha Future Irrigation 30 ha 180 ha 210 ha (22.5% of AOI)

It is assumed that present and additional irrigation are equally used for all crops.

Cost of additional irrigation

Canal: Construction is Rs 10,000/ha; Operation and Maintenance is Rs 100/ha-yr Tubewell: Construction is Rs 5,000/ha; Operation and Maintenance is Rs 750/ha-yr - 54 -

ANNEX 4 Page 4

Therefore, the cost of additional irrigation in the AOI will be:

Construction: 10 x 10,000 + 60 x 5,000 = Rs 400,000 Op + Maint: 10 x 100 + 60 x 750 = Rs 46,000/yr. Salvage value: 0.8 x 10 x 10,000 + 0.5 x 60 x 5,000 = Rs 230,000

Cost of road construction Rs 887,000 Cost of road maintenance Rs 18,000/yr. Salvage value: Rs 218,000

1. CROP AREAS (ha)

Present Planned Increase

PADDY 600 600 - WHEAT 400 500 100 MAIZE 60 60 - SUGARCANE 120 150 30 POTATO 80 120 40

Total 1,260 1,430 170

2. AGRICULTURAL PRODUCERS' SURPLUS (Rs per ha)

A B C D

No Irrigation With Irrigation No Irrigation With Irrigation No Road No Road With Road With Road No Improved No Improved With Improved With Improved Practices Practices Practices Practices

PADDY 921 1,504 1,310 1,893 WHEAT 826 1,255 1,112 1,541 MAIZE 199 341 294 436 SUGARCANE 1,570 1,914 2,466 3,810 POTATO 6,866 10,403 9,224 12,761 - 55 -

ANNEX 4 Page 5

3. MAXIMUM ATTAINABLE BENEFITS

(It will be later assumed that only 70% of these benefits materalize over 7 years - Eastern India Foodgrain Review).

CAI = Crop area irrigated CANI = Crop area not irrigated

(Rs per year) Increase in Benefits W/O Project W Project W vs. WIO Project

PADDY CAI 600 x 0.15 x 1504 600 x 0.225 x 1893 120,195 CANI 600 x 0.85 x 921 600 x 0.775 x 1310 139,440

Rs 259,635

WHEAT CAI 400 x 0.15 x 1255 500 x 0.225 x 1541 98,063 CANI 400 x 0.85 x 826 500 x 0.775 x 1112 150,060

Rs 248,123

MAIZE CAI 60 x 0.15 x 341 60 x 0.225 x 436 2,817 CANI 60 x 0.85 x 199 60 x 0.775 x 294 3,522

Rs 6,339

SUGARCANE CAI 120 x 0.15 x 2,914 150 x 0.225 x 3810 76,135 CANI 120 x 0.85 x 1,570 150 x 0.775 x 2466 126,533

Rs 202,668

POTATO CAI 80 x 0.15 x 10,403 120 x 0.225 x 12,761 219,711 CANI 80 x 0.85 x 6,866 120 x 0.775 x 9,224 390,944

Rs 610,655

Total Maximum Annual AttainableBenefits = Rs 1,327,420/yr (70% thereof is Rs 929,194/yr) - 56 -

ANNEX 4 Page 6

4. ECONOMIC RATE OF RETURN

(Rs million)

Capital Operation and Net Expenditures Maintenance Benefits Benefits

Additional Additional Year Road Irrigation Road Irrigation

0 (.887) (.400) (1.287) 1 (.018) (.046) 0.133 .069 2 (.018) (.046) 0.265 .201 3 (.018) (.046) 0.398 .334 4 (.018) (.046) 0.531 .467 5 (.018) (.046) 0.664 .600 6 (.018) (.046) 0.796 .732 7 (.018) (.046) 0.929 .865 8 (.018) (.046) 0.929 .865 9 (.018) (.046) 0.929 .865 10 .218 .230 (.018) (.046) 0.929 1.313

ERR 28.8%

5. SENSITIVITY ANALYSIS

With a 30% reduction in benefits ERR = 20.0%. - 57 -

ANNE 5 Page I

INDIA

BIHAR RURAL ROADS PROJECT

Related Documents and Data Available in the Project File

I. BACKGROUND INFORMATIONON BIHAR AND INDIA

Draft Five-Year Plan 1978-83, Planning Department,Government of Bihar, 1978.

Bihar StatisticalHand Book 1976, Directorateof Statistics and Evaluation,Bihar, 1976.

Bihar Through Figures 1977, Directorateof Statisticsand Evaluation,Bihar, November 1977.

The Bihar Public Works DepartmentCode, Government of Bihar, Patna, 1960.

Governmentof Bihar Schedule of Rates (Patna Division),January 1980.

Specificationsand Contract Notes for Roads and Bridges, Public Works Department,Ranchi, 1968.

Rural EngineeringOrganization Tender Documents.

Specificationsfor Road and Bridge Work, Ministry of Shipping and Transport (Roads Wing), published by Indian Roads Congress,New Delhi, 1978.

Directoryof EngineeringIndustries, Rajeev Publications,New Delhi, 1979.

II. AGRICULTUREAND RURAL DEVELOPMENTIN BIHAR

Mabbett, T. H. (consultantto IDA), memorandum INDIA: Pro- posed Bihar Rural Roads Project: AgriculturalAssessment: Report, December 7, 1979.

India Eastern States Foodgrain Review - Bihar, World Bank Report, 1977.

Instructionsfor IntegratedRural Development,Government of Bihar, August 1978. -58 -

ANNEX 5 Page 2

A Hand Book on Integrated Rural Development Programme 1978-79, Rural Development Department, Government of Bihar, 1978.

Guidelines for Action Programme for Ground Water Exploitation 1979-80, Government of Bihar, September 1979.

III. RURAL ROADS

Manual on Route Location, Design, Construction and Maintenance of Rural Roads, Indian Roads Congress Special Publication No. 20, New Delhi, 1979.

Employment in Road Transport and Road Construction, National Council of Applied Economic Research, New Delhi, 1974.

Design of Roads for Bullock Cart Transport, Central Road Research Institute, Road Research Paper No. 38, New Delhi, 1959.

IV. ROAD TRANSPORT

Howe, John (consultant to IDA), Report, Bihar Rural Roads: Preparation of a Possible Road Transport Component, ITDG, December 1979.

Sikka, R. P. (Chief Engineer, Ministry of Shipping and Transport, Government of India), Improvement of the Carrying Capacity and Operational Efficiency of Rural Road Transport, Draft Report for ESCAP, mimeo.

Regional Profile on Roads and Road Transport 1975-76, Transport Research Division, Ministry of Shipping and Transport, Government of India, 1979.

Origin Destination Survey and Census of Road Traffic in Bihar, conducted by Advance Planning Wing of Public Works Depart- ment of Bihar, 1976.

Road Transport Industry - A Review, National Council of Applied Economic Research, New Delhi, 1979.

Scheme for Financing Pneumatic Tire Bullock Carts in Saran, Siwan and Gopalganj Districts, prepared by Bihar State Land Development Bank, 1979.

Scheme for Financing Pneumatic Tire Bullock Carts in East and West Champaran Districts, prepared by Bihar State Land Development Bank, 1979. - 59 -

ANNEX 5 Page 3

Scheme for FinancingTire Bullock Carts through Agricultural DevelopmentBank, Jajipur, to the farmers of adopted villages fallingunder the Command Area of B-nar State Sugar CorporationUnit, Goraul; prepared by the State Bank of India, Bihar branch, 1979.

AgriculturalRefinance and DevelopmentCorporation, Guidelines for Provisionof Refinance for Work Animals and Animal Driven Carts, memorandum dated 24 May 1978.

V. PROJECT

Rural Road DevelopmentProject for World Bank Assistance, prepared by the Rural EngineeringOrganization (Advance Planning Wing), Government of Bihar, May 1978).

Rural Road DevelopmentProject for World Bank Assistance, Priority List of Minimum Needs Program Roads (Cost/ Benefit Ratio), prepared by the Rural Engineering Organization(Advance Planning Wing), Government of Bihar, July 1979.

Rural Road DevelopmentProject for World Bank Assistance, Interim Report, prepared by the Rural Engineering Orgnization(Advance Planning Wing), Government of Bihar, November 1979.

Schedule of all roads originally presentedby REO to IDA. Three volumes for North Bihar, South Bihar, and Chotanagpur/ Santhal Pargana.

Fully answered survey forms for all rural roads subjected to detailed economic evaluation.

Sample Economic Calculations

VI. MAPS

Maps of Bihar, scale 1:250,000 indicatinglocation of all roads included in project. - 60 -

ANNEX 6 Page 1

INDIA

BIHAR RURAL ROADS PROJECT

GOB's Rural Roads Maintenance Program

1. The emphasis of GOB's rural roads program over recent years has been on construction rather than on maintenance. This is reflected in the low level of total expenditures for rural road maintenance. Indeed, while it is estimated that adequate maintenance would require annual expenditures of about Rs 7,000 per km, the actual annual expenditures were about Rs 700 per km until 1978/79. Only in 1979/80 was the maintenance allocation increased to an average Rs 2,250 per km, which, although significantly larger than the previous average, is still only about one-third the required level.

2. GOB is aware of the importance of properly maintaining rural roads to avoid their early deterioration. As a result, GOB plans to increase its rural maintenance effort over the period of project implementation through provision of funds, equipment and staff. The elements of this maintenance program (paras 3 to 5) were agreed upon during negotiations, and any significant departure from this agreed program will be discussed between GOB and IDA during project implementation.

3. GOB will gradually increase its allocation of funds to REO for the purpose of rural road maintenance, so that, by June 30, 1986, the entire rural road network under REO responsibility would be subject to correct routine and periodic maintenance. The following table indicates the projected fund allocation and expenditure pattern:

Kms of Rural Road under REO Maintenance Required Total Year Responsibility Expenditure per Km Maintenance Expenditure (1980 Rs) (1980 Rs million)

1979/80 6,700 2,250 15 (already provided) 1980/81 7,000 3,600 25 ( " " ) 1981/82 7,250 4,500 33 1982/83 7,550 5,400 41 1983/84 7,900 6,200 49 1984/85 8,200 7,000 58

Funds allocated as indicated above would be used by REO to carry out its rural road maintenance program, whether by force account or by maintenance contracts.

4. About Rs 38 million worth of equipment will be provided under the proposed project (see Table 7). This equipment is expected to enable REO to carry out the bulk of the projected increase in their maintenance operations - 61 -

ANNEX 6 Page 2

(through 1984/85). Equipment owned by REO for maintenancepurposes would be used eithe- oa force account or would be rented to contractorsunder maintenance contract arrangements. GOB plans to make wider use of contractors than in the past for maintenance purposes so that REO staff would concentrate on supervisionand on maintenanceworks that cannot be adequatelyperformed by contractors. Specific amounts of additionalequipment required by REO to meet their maintenance needs were agreed at negotiations.

5. REO engineeringstaff would have to increaseover the period 1980/81 through 1984/85. It is desirable that REO engineeringstaff become familiar with the use of equipment and improved standardsof quality control for road maintenanceas well as construction;to this end, REO will arrange suitable training over the period 1980/81 through 1984/85 with CRRI, Delhi. Details are provided in Table 11. INDIA BIHAR RURAL ROADSPROJECT STRUCTUREOF BIHAR PUBLICWORKS DEPARTMENT

Principal Secretary, Public Works

Engineer in Chief and Special Secretary

Chief Engineer Chief Engineer Chief Engineer Chief Engineer Chief Engineer Chief Engineer Chief Engineer Chief Engineer (Commucnications) MConmni-ntions) (Communications) Sumilding') (C.D.P.I) I APL) (National IHighways) (Ganga Bridge) Monitoring Patna Darbhanga Ranchi Patna Patnm Patna Patna Patna ;

4 Soperiitending 5 S.perintending 6 Superintending 4 Superintendimg 5 Superintending 6 Saperintending 7 Superintending 2 Superintending Superintending Engineers Engineers Engineers Engineers Engineers Engineers Engineers Engineers Engineer ic

19 Executie i Ececutive 23 Executive 18 Executice 20 Ex-cuti-e 31 Execative 25 Execative 5 Executive 2 Execatine Engineers Engineers Engineers Engineers Engineers Engineers Engineers Engineers ngineers

67 Asssis6t1t i Assistann go Assistant 58 Assistant | 113 Assistant 126 Assistant 76 Assistant 16 Assistant 13 Assistant |Engineers l l Engineers Engineers Engineers Engineers Engineers Engineers Engineers Engineers

Scarce: PWD Aecr.ds Total: 620 Engineers

March 1980 World Bank 21 599 INDIA BIHAR RURAL ROADSPROJECT STRUCTUREOF THE RURAL ENGINEERINGORGANIZATION

|Principal Secretary, Rural Development| Average Contract Monthly Responsibility for T ~~~~~~~~~~~~~~~~~~~~SalaryAward of Contracts (Rs.) and Payments

Chief Engineer Unlimited Award Chief Engineer (Works) l~~~~~~~~AdvancePlanning and World Bank ProjectI)

Superintending Enginee 9 Superintending Engineers Superintending Engineer 4 Superin=ending Engineers 3 Superintending Engineers 2500 Unlimited Award

3 Executive Engineers 35 Executive xecutive Awards up to Rs i/c Designi/cDesgnand nd Materials ateial Engineersi/c Engineers ici/c | 1 ExecutivexcuieAdvance 16i/cner Executive Planning Engineersin 11EngineersrEconomtet Executive | 1 1500 50,000 maximum; checks o Laboratories Districts Zila Parishad Engineer E0% of certificates Roads ~~~~~~~~~~Districts and makes payments

1 1 ~~~~~~~~~~~~~~~~~~Awardsup to Rs Ag st 2 t 200 Assistant Engineers (Advance Planning) l 1000 5,000 maximum; checks ______J50% of certificates

No power of award; 600 measureswork and compiles certificates of payment

Total - 1005 Engineers 1 Economist Source: REO Records March 1980 World Bank - 21600 - 64 - Flgure 1

INDIA BIHAR RURAL ROADSPROJECT RURAL ROAD DESIGNSTANDARDS

TypicalCross Section

7.5 m roadway

3.75 m carriageway-...4

side slope of embankment 2:1 2

Orginal Ground Level

Road Land Width (Right of Way) 15 to 25 m at 3 to 5 m

CarriagewayDetail

15cm ;-1~ 3.75 m *

I21 5% ca rnber 2 cm premix over tack coat with surface seal coat waterbound stone base

3% co _subbase

/ - ~ ~ ~~~ ~compactedearth fill

Design speed, minimum radii, superelevation and pavement thicknesses in accordance with I.R.C. "Manual on Route Location, Design, Construction and Maintenance of Rural Roads", 1979 edition

Source: REO designs March 1980 World Bank - 21601 _ IBRD 14878R '.r 4av00' Arrrax mole tmeof Contro 84° 86 00 COCTOBERi980

INDIA 'PAtISTAN, CHINA BIHAR RURAL ROADS 1 r\, fPfDnelhl r t ^ ' y-r KILOMETERS Project Roads - North Bihar 1 _ J,)!.t z < . _MILES Uv ~~~~9 s s- p / _ p > _ 0~~~~~~~~~~~~~~o30) 60

Road Projects X Airports S fr I N D I A < < \0>_BLOMA < 1 - f X Ro' -(+ Nctiona Hlighways 33 Major Airport

/ a ~ | so} ( Main Roads 0 Distr ct Headquarters All -Weather Roads - District Boundaries - Unpaved Roads - State Bourdar es

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Sa agvata R PRO H AM,DISRCAES H AEBN . South Bihiar I BRO 150-88,O u

'-ICh-otonagpOr & 'Q ~~~~~~~IFNAMESOF OISPTEI5 AND THEIR HEhUOOARTEtS Santhial Pargnano ARE NOT THE SAME, DiSTRIOTNAMES HAthE BEEN IBRD 15089 ADDED N PARENTHESISt

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- -- C ~~~~~~~~UnpovedRoods- - Stolte Boundories0 50 100 - a-. ----- a---- ~~~~~~~Railroads nternotionol Boundaries IOMESt MILES -- -- »~~~~~~~~~-.----.-~~~~~~~~Rivers 0l 30 60 .5 aChotanagp2a1,,

&aISonthal Pargona>-, IF NAMESOF DISTRICTShND THEIR HAOhSIUARTERS - N hitS~~~~~~~~~~RNOT THE SAME, DISTRICT NAMES HAVS BEEN a- , IN PARENTHESIS. IBRED15089 ~~~~~~~~~~~~ASSES N ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~86-00 I IBRD 15089R O¢84°00''>ri / < ,,, _ L;hul Conlool B°0 OCTOBER 1980

v/V - o ~~~~~~~~~~~~~~~~~~~~~~~~INDIA

PAK SIANTAN CHIINA A2 BIHAR RURAL ROADS

Project Roads - Chotanagpur & Santhal Pargana

A tfl I N D I A I IBURMA 'LOMETERS * <: 0; t )\ / 0

I -24°00 / :: ' s¶t )0, C solton/goni/2 24°00'- (10 I.a. Hvo or41 gh,

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w7ldaksth,ecoteyfh- ;/ =. 9,Cl/l1p,.p-d,, R7c- ho < WtddBek oteff-1--looey for M ADHVYA ~-- Tth portotohech bevrerdtthed t ( .~ a 00__t. the reor toh,ofl,t ,smhtcbd bt od--e eo o ts- th7 theP PR A D ES H I0' - The denesorrvt,o otner thsmep 19M/ l do oot ot 09pl on thte paRt of the._ - WtddWrd.-- Bvkettd,toethhete--tKykan fhs ffillt,.P, ax-y .u_ ' ~' L\Z udgrtmet-otheleelta t-t- of emyterotort or anty rodrt ettent . 39 C ~ _w tr acrepteoe of -h bo-tdi,ET

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4~' /'2 < Rood_.,.tZJ, Projects.

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Q BR 148\78/ t 1

."SantholPargano- IF NAMESOF DISTRICTSAND THEIt HEADQUARTERS 0 .t < A \ t, T ARE NOT THE SAME DISTRICTNAMES HAVE BEEN I >...... < <'\ ADSEDIN PARENTHESIS.I f8600'