ASIAN DEVELOPMENT BANK TAR:STU 37030

TECHNICAL ASSISTANCE

FOR PREPARING THE

SUBREGIONAL TRANSPORT CONNECTIVITY PROJECT ()

December 2003

CURRENCY EQUIVALENTS (as of 30 October 2003)

Currency Unit – Indian rupee/s (Re/Rs) Re1.00 = $0.022 $1.00 = Rs45.34

ABBREVIATIONS

ADB – Asian Development Bank BRO – Border Roads Organization EA – executing agency EIA – environmental impact assessment IPDP – indigenous people’s development plan km – kilometer MORTH – Ministry of Road Transport and Highways RP – resettlement plan PSP – private sector participation SASEC – South Asia Subregional Economic Cooperation SAGQ – South Asia Growth Quadrilateral SGOS – State Government of Sikkim SGOWB – State Government of West TA – technical assistance

NOTES

(i) The fiscal year (FY) of the Government ends on 31 March.

(ii) In this report, “$” refers to US dollars.

This report was prepared by T. Duncan, South Asia Transport and Communications Division.

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I. INTRODUCTION

1. The Government of India has requested the Asian Development Bank (ADB) for technical assistance (TA) to prepare the Subregional Transport Connectivity Project. The TA is included in the country strategy and program for India. Following the Reconnaissance Mission on 6–14 May 2003, a TA Fact-Finding Mission visited India on 25 July 2003 and held discussions with the Government on the goals, purpose, scope, implementation arrangements, costs, and terms of reference of the TA. 1

II. ISSUES

2. The transport corridor is of strategic importance to the economic development of northeast India and the neighboring countries of Bangladesh, , and . The corridor extends from Haldia port off the via Kolkata to Shiliguri in the north of West Bengal, and then east along the national east-west corridor as far as the state of . The corridor is the transport backbone of West Bengal, the major trade route for India’s northeastern states and neighboring Bhutan and Nepal, and provides important links with Bangladesh.

3. For the West Bengal Corridor to realize its full economic potential, it must be upgraded to national highway standard; improved feeder links are needed to serve the main subregional users; and complementary economic and social infrastructure is needed to support growth in economic activities along the corridor, based on the improved competitiveness and locational synergies arising from improved transport efficiency.

4. ADB is assisting the Government to increase the capacity of the West Bengal Corridor. In 2000 an ADB TA prepared a strategy and investment plan for development of the corridor.2 The ADB-financed West Bengal Corridor Project is financing priority investments in that plan.3 The investments comprise improvement of (i) the national highway (NH34) from Barasat, on the northern outskirts of Kolkata, to Raiganj, about 370 kilometers (km) north; and (ii) two state highways providing connections with the Bangladesh border at Bangaon (SH1) and Hilli (SH10). Additionally, under the Government’s National Highways Development Project, the National Highways Authority of India (NHAI) is upgrading the part of the national east-west corridor in West Bengal (from Dalkhola to the state of Assam) to four lanes. Under the Government’s support for improving port connectivity, NHAI is also upgrading the national highways linking Haldia port with the west side of Kolkata (NH41 and NH6). With the construction of the second Vivekananda bridge and the Belgharia Expressway, this will extend high standard links from Haldia to within about 10 km of the upgraded NH34 at Barasat.

5. To complete the upgrading of the corridor, (i) a bypass is needed between Barasat and the Belgharia Expressway, in order to complete the high quality through route from NH34 to Haldia Port; (ii) NH34 should be upgraded between Raiganj and Dalkhola, to complete the link between NH34 and the east-west corridor; and (iii) bridges are needed on NH34 at Baharampur and Maldah, to bypass congestion. In view of high traffic levels, the Barasat bypass may offer scope for private sector participation.

6. Bhutan, Bangladesh, India, and Nepal have initiated a subregional economic cooperation program to establish the South Asian Growth Quadrangle. ADB has been facilitating this initiative

1 The TA first appeared in ADB Business Opportunities, Internet edition, on 18 July 2003. 2 ADB. 1998. Technical Assistance to India for the North-South Corridor Development Project in West Bengal. Manila. 3 ADB. 2001. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to India for the West Bengal Corridor Development Project. Manila.

2 since 2000, through the South Asia Subregional Economic Cooperation (SASEC) program. ADB has provided regional TAs to identify and prioritize subregional cooperation projects,4 and to establish and consolidate the institutional framework for regional economic cooperation.5 Because transport is fundamentally important to regional economic cooperation, the transport sector has featured prominently in the SASEC program. The initial approach has been to (i) establish a conceptual framework for subregional cooperation in the transport sector; (ii) assess the current performance of each key corridor, and identify specific impediments to transportation along these corridors; and (iii) develop project concepts for removing the impediments, both physical and institutional, so as to facilitate the future funding of those projects. Further regional TA has been provided to support these activities.6 As the subregional cooperation deepens, this may lead to design of improved transit arrangements, and simplification of documentation requirements for cross-border traffic.

7. Two of the high priority investment projects identified by the SASEC program are for feeder links into the West Bengal Corridor.7 These are improvement of (i) the state highway from the Bhutan border at Phuentsholing to the east-west corridor at Hasimara; and (ii) the state highway between the Bangladesh border at Fulbari and the Nepal border at Kakarbhitta, intersecting the north-south corridor. The Phuentsholing-Hasimara link is part of Bhutan’s main trade route between the capital, Thimpu, and Haldia Port. Under its proposed road sector loan to Bhutan in 2005,8 ADB is also expecting to finance upgrading of the road from Phuentsholing to the Thimpu. Another proposed ADB loan to Bhutan, in 2004, is expected to finance development a logistics terminal at Phuentsholing.9 The Fulbari-Kakarbhitta link serves transit traffic between Nepal and Bangladesh, and provides access to the West Bengal Corridor for trade serving eastern Nepal and northwest Bangladesh. ADB is currently financing improvement of Nepal’s east-west highway to Kakarbhitta,10 and expects to include support for development of an inland customs depot at Kakarbhitta under the proposed loan to Nepal in 2004.11 ADB’s road sector loan to Bangladesh in 200312 includes a component to upgrade the road from Fulbari to Banglabhandh, where it connects with the national highway (N5) to Dhaka via Jamuna Bridge. The Government has indicated that before committing to investment in improving the link to Fulbari it will require confirmation that the Government of Bangladesh intends to upgrade the link on the Bangladesh side of the border.

8. The corridor also provides the transport connection between the state of Sikkim and the rest of India, thereby underpinning Sikkim’s economy and sense of integration. The national highway between Sevok and Gangtok (NH31A) is narrow and congested, and needs to be upgraded.13 The state highway from Gangtok to Nathula Pass may also need improving. As a result of the decision of India and the People’s Republic of China (PRC) to resume cross-border trade via Nathula Pass,14 the link from Sevok to Nathula Pass via Gangtok could play an important

4 ADB. 2000. Regional Technical Assistance for Identification and Prioritization of Subregional Projects in South Asia. Manila. 5 ADB. 2001. Regional Technical Assistance for South Asia Subregional Economic Cooperation II. Manila. 6 ADB. 2003. Regional Technical Assistance for Subregional Corridor Operational Efficiency Study. Manila 7 Arnold, John. 2002. Report on Identification and Prioritization of Subregional Projects in South Asia. Manila: ADB. 8 Proposed Road Network Expansion Project. 9 ADB. 2002. Technical Assistance to Bhutan for Preparing the Industrial Estate and Dry Port Development Project. Manila. 10 ADB. 2000. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to Nepal for the Road Network Development Project. Manila. 11 Subregional Transport Facilitation Project, Nepal. 12 ADB. 2003. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to Bangladesh for the Road Network Improvement and Maintenance II Project. Manila. 13 In 2003, the Prime Minister announced that Sevok-Gangrok road is to be improved. 14 On 23 June 2003, India and the PRC signed a memorandum on opening border trade through Nathula Pass.

3 role in promoting regional cooperation with the PRC.15 This forms part of the traditional silk road, which is the shortest route between the PRC and Bangladesh, India, and Nepal.

9. In addition, complementary investments are needed in economic and social infrastructure to help realize the full economic development and trade potential of the West Bengal Corridor. (i) Private investment in productive activities should be facilitated. Under separate TA, ADB is preparing proposals to support private investment in areas of Nepal that connect with the corridor,16 such as through development of industrial estates and commercial areas. Further TA is planned to develop such proposals along the corridor in India.17 (ii) Support is needed for improvements in transport operations along the corridor by developing of complementary facilities such as truck terminals, warehousing and storage facilities, goods transshipment centers, and dry ports. (iii) Investments are required in trade facilitation measures, as recommended under SASEC, including improving customs, immigration, and other facilities at border crossings, and simplifying documentation requirements for cross-border traffic. In view of the high cost of running the existing customs services at Fulbari, the Government has indicated that before committing to investment in further customs facilities there, it will need to have made progress in its dialogue on cross border movement with the Government of Bangladesh. (iv) Investment is also needed in social infrastructure, such as rest areas and services for vehicle drivers and passengers. (v) The scope for developing measures to combat HIV/AIDS18 and cross-border trafficking of women and children should be examined.

III. THE TECHNICAL ASSISTANCE

A. Purpose and Output

10. The purpose of the TA is to assist the Government and the State Government of West Bengal (SGOWB) to prepare a Project to (i) upgrade subregional transport links along the West Bengal Corridor, and (ii) introduce complementary economic and social infrastructure to realize the economic potential of the corridor and address associated social needs. The Project will (i) strengthen the regional network of transport infrastructure serving Bangladesh, Bhutan, PRC, India, and Nepal, including improvement of through connections to and from Haldia Port; and (iii) improve the domestic transport system in India, particularly in Sikkim and West Bengal. These transport improvements will support growth in subregional trade and investment, thereby contributing to economic growth and poverty reduction. Drawing on and supported by the TA, ADB plans to process a loan for the Project in 2004.

11. The Project will be divided into four groups of subprojects on the basis of implementation responsibilities and location: (i) improvements to national highways along NH34, comprising the Barasat bypass, the Raiganj-Dalkhola section, and bridges at Baharampur and Maldah; (ii) improvements to national highways serving Sikkim, comprising the highway from Sevok to Gangtok; (iii) improvement of state highways in West Bengal that provide subregional links, comprising the Hasimara-Phuentsholing and Kakarbhitta-Fulbari sections; and (iv) complementary economic and social infrastructure along the West Bengal Corridor.

15 In order to realize this potential, it will also be necessary to establish necessary customs facilities and procedures at the border, and there may be a need to improve the connecting highway in PRC from Nathula Pass to Yatung. 16 ADB. 2003. Technical Assistance to Nepal for Preparing the Market Access and Productivity Growth for the Private Sector Project. Manila. 17 TA for Preparing the Northeastern States Trade and Investment Creation Initiative is included in the India CSP for 2004. 18 HIV/AIDS = human immunodeficiency virus/acquired immunodeficiency syndrome.

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B. Methodology and Key Activities

12. The TA will complete the preparatory studies required to examine the feasibility of each subproject and to comply with ADB’s safeguard and other policies and requirements for possible loan financing. The TA activities will include (i) assessment of institutional capacity and implementation arrangements; (ii) traffic, engineering, and design studies, and cost estimation; (iii) economic analysis, distribution analysis, and poverty impact ratio estimation; (iv) financial analysis; (v) poverty and social assessment; (vi) environmental impact assessment; (vii) preparation of a resettlement plan; and (viii) support for preparation of indigenous people’s development plan as required on the basis the findings of the poverty and social assessment.19

13. The scope of the TA has been formulated to make full use of preparatory work carried out by the Government. Feasibility studies, preliminary social and environmental assessments, and detailed designs are available for the Barasat bypass, and the northern end of the Raiganj- Dalkhola section (construction of a bypass at Dalkhola), and have been commissioned for the Sevok-Gangtok section. The TA will review, verify, update, and supplement these preparatory studies to ensure that ADB requirements are met. For the other parts of the Raiganj-Dalkhola section, the Baharampur and Maldah bridges, and Hasimara-Phuentsholing and Kakarbhitta- Fulbari sections, only preliminary studies have been conducted, and no studies of complementary economic and social infrastructure have been prepared. For these subprojects, the TA will conduct all necessary studies to meet ADB’s requirements for possible loan financing (para. 12). The summary initial poverty and social assessment is provided in Appendix 1.

C. Cost and Financing

14. The cost of the TA is estimated at $1 million, including a foreign exchange component of about $529,200 and a local cost component of about $470,800 equivalent. The Government has requested ADB to finance $800,000 to meet the entire foreign exchange cost and $270,800 equivalent of local currency cost. The TA will be financed on a grant basis from ADB’s TA funding program. The Government will provide $200,000 in kind to cover the costs of office accommodation, transport, and counterpart staff. Further details are in Appendix 2. The Government has been advised that approval of the TA does not commit ADB to financing any ensuing project.

D. Implementation Arrangements

15. The executing agencies (EAs) for the TA will be the Ministry of Road Transport and Highways (MORTH) and SGOWB. MORTH will be the EA for the national highways subprojects, and SGOWB will be the EA for the state highways subprojects in West Bengal. A steering committee comprised of the EAs and the State Government of Sikkim (SGOS), and chaired by the secretary of MORTH, will oversee implementation of the TA and ensure coordination between the EAs. Each EA will appoint a TA director and will assign suitably qualified counterpart staff to work alongside the consultants and assist with survey and field work when necessary. In view of the location of the subprojects, the consultants will be based in Kolkata, with temporary field offices in Gangtok, Shiliguri, and other places as may be required. For this purpose SGOWB and SGOS will provide suitable office accommodation in West Bengal and Sikkim, together with office support staff, computer equipment, and transport.

19 ADB’s Policy on Indigenous Peoples requires that, if indigenous peoples are likely to be affected significantly or adversely by a project, the Borrower should prepare an indigenous people’s development plan to provide the framework for maximizing project benefits to indigenous peoples and mitigating any negative effects.

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16. The TA will be carried out by a firm of international consultants in association with domestic consultants, together with individual international and domestic consultants. The firm will be responsible for engineering; institutional assessment; study of technical, economic, and financial feasibility of road subprojects; identification and study of the feasibility of the complementary economic and social infrastructure; and overall coordination of the TA consulting services. Individual consultants will prepare the poverty and social assessment, the resettlement plan, indigenous people’s development plan (if required), summary environmental impact assessment, and poverty impact study. The consulting firm and individual consultants will also assist the ADB mission for processing the proposed Project, including the loan fact-finding and appraisal missions. The firm of consultants will include experts in road engineering, institutional strengthening, transport economics, transport services, and trade facilitation. The individual consultants will include experts in social development, environmental assessment, and poverty analysis. Staffing inputs for the firm will be about 14 person-months of international and 29 person-months of domestic consultants. About 5 person-months of individual international and 10 person-months of individual domestic consultants will be required. The consulting firm will be engaged using ADB’s quality- and cost-based selection procedures, on the basis of simplified technical proposals. The individual consultants will be engaged in accordance with ADB’s Guidelines on the Use of Consultants and other arrangements satisfactory to ADB on the engagement of domestic consultants. Outline terms of reference for the consulting services are in Appendix 3.

17. The TA will be carried out between February and September 2004. The TA consultants will conduct stakeholder workshops at the inception of the TA, upon submission of the interim report, and near the time of submission of the draft final report.

IV. THE PRESIDENT’S DECISION

18. The President, acting under the authority delegated by the Board, has approved the provision of technical assistance not exceeding the equivalent of $800,000 on a grant basis to the Government of India for preparing the Subregional Transport Connectivity Project, and hereby reports this action to the Board.

6 Appendix 1

SUMMARY INITIAL POVERTY AND SOCIAL ANALYSIS

A. Linkages to the Country Poverty Analysis Sector identified as a national priority Yes Sector identified as a national priority Yes in country poverty analysis? in country poverty partnership agreement? Contribution of the sector/subsector to poverty reduction in India:

The country strategy and program for India identified infrastructure development, in particular upgrading of road systems, as a key requirement for poverty reduction. India needs to sustain high rates of economic growth to reduce poverty, and growth requires investment in transport since development of the transport network was neglected in the past.

Improved subregional transport will (i) reduce accessibility to the state of Sikkim and disadvantaged parts of the state of West Bengal in India; (ii) significantly assist Bhutan by upgrading its principal trade route, and will enhance trade routes with and between Nepal and Bangladesh; and (iii) enable expansion of economic cooperation between the Bangladesh, Bhutan, India, Nepal, and the People’s Republic of China, contributing to economic growth and poverty reduction in each country.

B. Poverty Proposed Other Analysis Classification: What type of poverty analysis is needed?

The poverty analysis to be undertaken in the project preparatory technical assistance (TA) will focus on improving the ability of the transport corridor to reduce poverty and improve employment and incomes, particularly as a result of increased flows of trade and investment. The analysis will include (i) review of the socioeconomic and poverty status of the project areas of influence, including the nature, extent, and determinants of poverty in these areas; (ii) identification and estimation of the likely socioeconomic and poverty reduction impacts of each subproject; and (iii) preparation of proposals for a program of monitoring and evaluating the benefits and impacts of the Project before and after construction.

For each road improvement subproject, a distribution analysis of the economic benefits between stakeholders will be prepared, including estimation of the poverty impact ratio.

C. Participation Process

Stakeholder analysis: The project will be prepared in a participatory manner. All stakeholders and affected people, including women and ethnic minorities, will be fully consulted during preparation of a resettlement plan and as part of any indigenous peoples development plan (IPDP) required. All affected households will be surveyed and will participate in the inventory of lost assets, identification of compensation and resettlement preferences, and a replacement cost study.

Participation strategy required: Yes. A participation strategy will be included in the resettlement plan and in any IPDP required.

Appendix 1 7

D. Potential Issues Significant, Not Significant, Uncertain, Subject None Strategy to Address Issues Plan Required Resettlement Significant Barasat bypass is expected to require Full resettlement plan acquisition of about 90 hectares. Alignments/designs are still to be prepared for other components, but are expected to require some land acquisition and resettlement. A full resettlement plan acceptable to Asian Development Bank (ADB) will be prepared. Gender Uncertain Gender issues will be identified and No addressed as part of the poverty and social analysis. The ADB Policy on Gender and Development will be followed by the executing agencies during project preparation and implementation. Affordability None The project components will generally not be No suitable for user charges. By reducing vehicle operating costs the road improvements will make transport more affordable for users. Barasat bypass will be considered for possible private-public-partnership. Even if the bypass uses tolls, it will relieve congestion on the existing toll-free alignment and improve transport efficiency for those unable to afford tolls for using the bypass. Labor Not significant The Project will create employment No opportunities during construction. As much as possible, the Project will hire labor from among local people during construction. The Project should incorporate contractual and other provisions to ensure adequate labor standards. Indigenous Uncertain To be examined in detail through poverty and To be determined People social analysis of TA, and if necessary an IPDP will be prepared. Other Risks/ Significant The Project will include measures to address To be determined Vulnerabilities vulnerability of local people to HIV/AIDS, and sexually transmitted diseases, and trafficking of women and children. (HIV/AIDS = human immunodeficiency virus/acquired immunodeficiency syndrome).

8 Appendix 2

COST ESTIMATES AND FINANCING PLAN ($’000)

Foreign Local Total Item Exchange Currency Cost A. Asian Development Bank Financinga 1. Consultants a. Remuneration and Per Diem i International Consultants 414.2 0.0 414.2 ii Domestic Consultants 0.0 156.0 156.0 b. International and Local Travel 30.0 23.0 53.0 c. Reports and Communications 0.0 4.2 4.2 2. Workshops 0.0 8.0 8.0 3. Surveys 0.0 35.0 35.0 4. Miscellaneous Administration and Support Costs 0.0 4.0 4.0 5. Representative for Contract Negotiationsb 5.6 0.0 5.6 6. Contingencies 79.4 40.6 120.0 Subtotal (A) 529.2 270.8 800.0

B. Government Financing 1. Office Accommodation and Transport 0.0 70.0 70.0 2. Remuneration and Per Diem of Counterpart Staff 0.0 130.0 130.0 Subtotal (B) 0.0 200.0 200.0 Total 529.2 470.8 1,000.0 a Financed on a grant basis by Asian Development Bank’s technical assistance funding program. b Includes cost of travel to Manila and per diem for Government observers attending consultant's contract negotiations at Asian Development Bank headquarters. Source: Asian Development Bank estimates.

Appendix 3 9

OUTLINE TERMS OF REFERENCE FOR CONSULTING SERVICES

1. The technical assistance (TA) will help the Government prepare a project to (i) upgrade subregional transport links along the West Bengal Corridor, and (ii) introduce complementary economic and social infrastructure to realize the economic potential of the corridor and address associated social needs. The Asian Development Bank (ADB) plans to process a loan for the Project in 2004.

2. The Project will be divided into four groups of subprojects on the basis of implementation responsibilities and location: (i) improvements to national highways along NH34 comprising Barasat bypass, the Raiganj-Dalkhola section, and bridges at Baharampur and Maldah; (ii) improvements to national highways serving Sikkim, comprising the highway from Sevok to Gangtok; (iii) improvement of state highways in West Bengal that provide subregional links, comprising the Hasimara-Phuentsholing and Kakarbhitta-Fulbari sections; and (iv) complementary economic and social infrastructure along the West Bengal Corridor.

3. The executing agencies (EAs) for the TA will be the Ministry of Road Transport and Highways (MORTH) and the State Government of West Bengal (SGOWB). MORTH will be the EA for the national highways subprojects, and SGOWB will be the EA for the state highways subprojects in West Bengal.

4. The TA is formulated to make full use of preparatory work carried out by the Government. Feasibility studies, preliminary social and environmental assessments, and detailed designs are available for Barasat bypass, and the northern end of the Raiganj-Dalkhola section, and have been commissioned for the Sevok-Gangtok section. The TA will review, update, and supplement these studies to ensure ADB requirements are met. For the other parts of the Raiganj-Dalkhola section, Baharampur and Maldah bridges, and Hasimara-Phuentsholing and Kakarbhitta-Fulbari sections, only preliminary studies have been conducted, and no studies have been prepared of complementary economic and social infrastructure. For these subprojects, the TA will conduct necessary studies to meet ADB’s requirements for loan financing.

A. Scope of Services

5. The TA will complete the preparatory studies required to examine the feasibility of each subproject and comply with ADB’s safeguard and other requirements for possible loan financing. The consultants main tasks are described in the following paragraphs.

1. Traffic, Engineering, Design Studies, and Cost Estimation

6. Review, verify, update and supplement traffic, engineering, design studies, and cost estimates for Barasat bypass, the northern end of the Raiganj-Dalkhola section, and the Sevok- Gangtok section.

7. Conduct traffic and engineering surveys and prepare feasibility-level designs and cost estimates for the Raiganj-Dalkhola section, Baharampur and Maldah bridges, and Hasimara- Phuentsholing and Kakarbhitta-Fulbari sections.

8. Conduct a road safety audit of each subproject and, as appropriate, refine the subproject proposals to mitigate identified accident risks.

9. Review and update draft bid documents for Barasat bypass, and the Sevok-Gangtok section.

10 Appendix 3

10. Prepare implementation schedules for subprojects.

11. Prepare overall cost estimates and indicative contract packages.

12. Prepare terms of reference for consulting services to develop detailed design and bid documents for the Baharampur and Maldah bridges, and the Raiganj-Dalkhola, Hasimara- Phuentsholing, and Kakarbhitta-Fulbari sections.

13. Prepare terms of reference for supervision consulting services for all road improvement subprojects.

14. Make available traffic, technical, and cost information, and coordinate with consultants responsible for poverty and social assessment, resettlement, and environmental assessment.

2. Private Sector Participation and Financial Analysis

15. Assess the scope for private sector participation in Barasat bypass and, on this basis, review options and design a scheme for private sector participation. Subject to findings on the scope for private sector participation, prepare a financial analysis.

3. Economic Analysis, Distribution Analysis, and Poverty Impact Ratio Estimation

16. Review, verify, update, and supplement the economic analyses of the Barasat bypass and Sevok-Gangtok section, and update the estimates of the economic internal rate of return (EIRR) and net present value (NPV) for each of these subprojects.

17. Prepare economic analyses of the Baharampur and Maldah bridges, and Raiganj-Dalkhola, Hasimara-Phuentsholing, and Kakarbhitta-Fulbari sections, including estimation of EIRRs and NPVs.

18. Prepare an aggregate EIRR and NPV estimate for all subprojects.

19. Prepare sensitivity and risk analyses for each subproject, and in aggregate.

20. Drawing on the economic analyses, and through conducting passenger/user and other surveys required for distribution analysis and poverty impact ratio calculation, prepare distribution analyses and estimate the poverty impact ratio for each subproject, and in aggregate.

21. Coordinate with and make analyses available to consultants responsible for poverty and social assessment, resettlement, and environmental assessment, including incorporation of costs of social and environmental mitigation into the economic analyses.

4. Provision of Corridor Economic and Social Infrastructure

22. Identify good examples of complementary economic and social infrastructure along highway corridors, drawing on experience in India, other developing countries, and developed countries if relevant.

23. Review available data and studies and conduct interviews to identify the basis for developing the West Bengal Corridor and its feeder links as an economic corridor, and for enhancing subregional trade flows, through (i) provision of complementary economic infrastructure to facilitate private investment in productive activities, such as truck terminals, warehousing and

Appendix 3 11 storage facilities, goods transshipment centers, and dry ports; and (ii) investments in trade facilitation measures, as recommended under South Asia Subregional Economic Cooperation (SASEC), such as improved customs, immigration, and other facilities at border crossings, and simplification of documentation for cross-border traffic.

24. Review available data and studies, including ADB reports, and conduct interviews to determine the need for social infrastructure to complement the West Bengal Corridor and its feeder links, such as rest areas and services for vehicle drivers and passengers, and development of measures to combat cross-border trafficking of women and children, and the spread of HIV/AIDS1 and sexually transmitted diseases.

25. Drawing on the review and interview program, identify potential stakeholders, and conduct surveys to be used in developing proposals for complementary infrastructure, including with respect to type, role, scale, location and responsibility for construction and operation. Two surveys will be conducted: (i) one among potential users, such as transport operators, truck drivers, and transport service users, and (ii) the other for key interest groups, including public officials from the police, customs, immigration, and national and state highways agencies, nongovernmental organizations, and individuals. Visit potential sites for developing complementary infrastructure.

26. Develop outline proposals, and rank these based on factors to reflect the potential economic returns and positive social impacts, the potential for private sector participation, the level of difficulty of provision and operation, and the major identified risks.

27. Develop proposals for preferred complementary economic and social infrastructure, including layouts, estimated construction costs, arrangements for implementation and operation, estimated operating costs and revenues, and implementation schedules.

28. Prepare financial and economic analyses, sensitivity and risk analyses, distribution analyses, and estimated poverty impact ratios.

29. Prepare terms of reference for consulting services (i) to develop detailed design and bid documents, and (ii) for consulting services for supervision of construction of facilities.

30. Make available data and analyses as required and coordinate with consultants responsible for poverty and social assessment, resettlement, and environmental assessment.

5. Assessment of Institutional Capacity and Implementation Arrangements

31. Review the institutional capacity and implementation arrangements of the three EAs.

32. Propose implementation arrangements and procedures, together with institutional strengthening and capacity building as required, to ensure efficiency, timeliness, and transparency.

33. Review the existing financing and execution of road maintenance for the project roads and for other roads under the responsibility of the EAs .

34. Prepare schedules and cost estimates for routine and periodic maintenance of subprojects.

35. Prepare provisions for inclusion in the subproject road construction contracts, to be financed from the Government counterpart contribution, for the contactors to be responsible for

1 HIV/AIDs = human immunodeficiency virus/acquired immunodeficiency syndrome.

12 Appendix 3 maintenance for an initial period, and for subsequent periodic and routine maintenance to carried out through long-term performance-based contracts by private contractors.

36. Review existing agreements, procedures, and practices for customs, immigration, and other formalities at the border crossings of Fulbari, Kakarbhitta, and Phuentsholing, and identify problems that need to be addressed to facilitate cross-border traffic flows.

37. Prepare proposals and action plans for addressing problems with border procedures and practices with a view to facilitating cross-border traffic flows upon completion of the subprojects serving Fulbari, Kakarbhitta, and Phuentsholing.

6. Study

38. Based on a short review of studies of the possible alternative road and bridge links to Haldia Port (on the south and east side of Kolkata); (i) assess in outline terms the prospects for economic and financial viability, and the practical feasibility taking into account land acquisition, resettlement, and environmental aspects; (ii) recommend a time frame (if any) and an integrated plan of action for further preparation; and (iii) prepare outline terms of reference for all remaining preparation tasks in accordance with ADB’s requirements.

7. Poverty and Social Assessment

39. Based on review of data and reports, and field investigations, prepare a poverty and social analysis for each subproject.

40. Prepare a study of the socioeconomic and poverty status of the project areas of influence, including the nature, extent, and determinants of poverty in these areas. Identify and estimate the likely socioeconomic and poverty reduction impacts of each subproject. Prepare proposals for monitoring and evaluating the benefits and impacts before and after construction.

41. Based on the findings of the poverty and social analysis (para. 40), prepare an indigenous peoples development plan if required.

8. Environmental Impact Assessment

42. Based on a review of data, reports, and environmental field surveys, prepare an environmental impact assessment for each subproject, and prepare a summary environmental impact assessment for the subprojects as a whole.

9. Preparation of Resettlement Plan

43. Based on a review of data and reports, and detailed field surveys, and consultations with affected persons, prepare a resettlement plan for each subproject, in accordance with ADB requirements and applicable national and state laws, and prepare a summary resettlement plan for the subprojects as a whole.

10. Monitoring Framework

44. Help develop a project framework in accordance with ADB’s staff instruction on use of the logical framework for ADB-assisted loan and TA projects, including proposals for the project performance monitoring system.

Appendix 3 13

11. Coordination

45. Coordinate all consulting services inputs under the TA.

12. Processing Missions

46. Support ADB’s loan fact-finding and appraisal missions.

B. Implementation Arrangements

47. Implementation arrangements are given in para. 15 of the main text.

48. The TA will be carried out by a firm of international consultants in association with domestic consultants, together with individual international and domestic consultants. The firm will be responsible for engineering, institutional assessment, study of technical, economic, and financial feasibility of road subprojects, identification and feasibility study of complementary economic and social infrastructure, and overall coordination. The individual consultants will prepare the poverty and social assessment, resettlement plan, indigenous people development plan (if required), summary environmental impact assessment, and poverty impact study. The firm and individual consultants will also assist the ADB loan processing mission. The firm will include experts in road engineering, institutional strengthening, transport economics, and transport services and trade facilitation, at least one being an experienced team leader of multi-disciplinary studies. The individual consultants will include experts in social development, environmental assessment, and poverty analysis. Inputs from the firm will be about 14 person-months of international and 29 person-months of domestic consultants. About 5 person-months of individual international and 10 person months of individual domestic consultants will be required. The consulting firm will be engaged using ADB’s quality- and cost-based selection procedures, on the basis of simplified technical proposals. The individual consultants will be engaged in accordance with ADB’s Guidelines on the Use of Consultants and other arrangements satisfactory to ADB on the engagement of domestic consultants.

49. The TA will be carried out between March and September 2004. To promote dialogue and develop consensus among the stakeholders, the TA consultants will conduct stakeholder workshops at inception, and upon submission of the interim and draft final reports.

C. Reporting Requirements

50. The firm of consultants and individual consultants will each prepare an inception report, monthly progress reports, other reports, an interim report, a draft final report, and a final report. All reports will be in English. Distribution of reports will be as follows: five copies to each EA, three copies to ADB.