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World Bank Document The World Bank India Second Kerala State Transport Project (P130339) REPORT NO.: RES43984 Public Disclosure Authorized RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF INDIA SECOND KERALA STATE TRANSPORT PROJECT APPROVED ON MAY 14, 2013 TO Public Disclosure Authorized REPUBLIC OF INDIA TRANSPORT SOUTH ASIA Public Disclosure Authorized Regional Vice President: Hartwig Schafer Country Director: Junaid Kamal Ahmad Regional Director: Guangzhe Chen Practice Manager/Manager: Shomik Raj Mehndiratta Task Team Leader(s): Justin Runji, N. S. Srinivas Public Disclosure Authorized The World Bank India Second Kerala State Transport Project (P130339) ABBREVIATIONS AND ACRONYMS COE Centre of Excellence CRRI Central Road Research Institute DEA Department of Economic Affairs EPC Engineering Procurement and Construction GOK Government of Kerala KHRI Kerala Highway Research Institute KSTP II Second Kerala State Transport Project LSGD Local Self Government Department LSGI Local Self Government Institution PDO Project Development Objective PIP Project Implementation Plan PMU Project Management Unit PPP Public Private Partnership PWD Public Works Department RKI Rebuild Kerala Initiative RMMS Road Maintenance Management System RSA Road Safety Authority SCDP Safe Corridor Demonstration Project The World Bank India Second Kerala State Transport Project (P130339) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID Financing Instrument P130339 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 14-May-2013 30-Apr-2021 Organizations Borrower Responsible Agency Republic of India Public Works Department, Govt of Kerala Project Development Objective (PDO) Original PDO The project's development objective is to improve condition, traffic flow and road safety with a focus on vulnerable road users on selected roads in Kerala. Current PDO To improve condition, traffic flow and road safety with a focus on Vulnerable Road Users on selected roads in Kerala, and to enhance resilience to climate change and disaster risk. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-82540 14-May-2013 19-Jun-2013 06-Sep-2013 30-Apr-2021 216.00 128.86 87.14 The World Bank India Second Kerala State Transport Project (P130339) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. The US$216 million IBRD loan for the Second Kerala State Transport Project (KSTP II) [P130339] was approved by the World Bank Board on May 14, 2013 and became effective on September 6, 2013; the closing date of the loan at approval was April 30, 2019. The project development objective (PDO) at approval was to “improve condition, traffic flow and road safety with a focus on Vulnerable Road Users on selected roads in Kerala”. The project comprised three components: Component A - Road Network Upgrading and Safety Improvement (split into sub-components A1 and A2); Component B - Road Safety Management; and Component C - Institutional Strengthening. 2. The project has so far undergone three restructuring as given in the table below: Restructuring Period Details of Restructuring April 2019 Extension of the loan closing date by 2 months up to June 30, 2019 June 2019 Revision of the PDO by adding the phrase “and to enhance resilience to climate change and disaster risk”; Extension of Loan Closing Date by 22 months up to April 30, 2021; Inclusion of a new component viz; Component D: Climate and Disaster Resilience Enhancement; Reallocation of proceeds under Category 1 of the Loan across the four Components viz; Sub-component A1 under Component A, Component B, Component C and the newly introduced Component D ($45million); Revision of the Results Indicator in accordance with the change in the PDO and revision in the project scope; Inclusion of new Legal Covenant in accordance with the change in the project scope; Revision in the scope of sub-component A2 viz; roads to be taken up under PPP mode were changed to be taken up through EPC mode due to poor market response. Inclusion of the Kerala Local Self Government Department (LSGD) as one of the implementing agencies under the project for managing of the LSGD roads introduced in Component D; Revision in Disbursement Estimates August 2020 Removal of LSGD roads as requested by GOK from the project scope; Reallocation of proceeds to the tune of US$19 million from Component D to sub- component A2 thereby effecting change in the total allocation for sub-component A2 from US$33m to US$52m; Revision of the Results Indicator in line with the change in the project scope; Removal of Kerala LSGD as the implementing agency from the project; The World Bank India Second Kerala State Transport Project (P130339) Revision of Legal Covenant in line with the change in the project scope; 3. The status of the various components is as follows: a. Component A: Road Network Upgrading and Safety Improvement: This component has been divided in to two sub-components: viz; Sub-Component A1 and Sub-Component A2. (i) Sub-Component A1: Six out of 10 civil works packages have largely been completed under this component. Out of a total length of about 285 km, about 275 km has been completed till date. The long pending forest clearance from the Government of Karnataka has been received for the Kootupuzha bridge under Package 3B. Works under Package 3A and 4A are progressing at a slow pace. The land acquisition issue at the Eranholli Bridge site is also progressing albeit at a very slow pace and impacting the overall progress of the package. The performance of these two contracts needs to be monitored very closely for completion by the project closing date in April 2021. (ii) Sub-Component A2: The scope of this component is improvement of 82.17 km as EPC contracts. The total length has been split in to three packages of which two viz; package 8B and 8C, are being funded by the Bank while package 8A will be implemented using the state's own finances. Package 8B is progressing slowly while the progress on package 8C is reasonable. These contracts were awarded in September and October 2019, with a scheduled completion date in October and December 2021, respectively. These packages too will have to be closely monitored for achieving the agreed milestones till the project closure in April 2021. b. Component B: Road Safety Management: The physical progress achieved on the SCDP corridor till September 30, 2020, was about 94%. Overall quality of works is satisfactory. The remaining works of road marking, signage, bus shelters and all other pending work have also been largely completed. Under the project, a funding window, termed as Challenge Fund, has been made available for implementation of road safety interventions in the different districts of Kerala. DPRs have been finalized for these proposed corridors and bids are being invited. A total length of about 47 km across 4 districts (viz; Kozhikode, Thiruvananthapuram, Kollam, Ernakulam, Thrissur) is being improved. Of these, work has been awarded for 5.5 km in Kozhikode district which is expected to be completed by end-November 2020. The other 3 packages are expected to be awarded by end-November 2020. Furthermore, under this component, post-crash care, which includes medical as well as emergency services and crash victim extraction, is being developed on the SCDP stretch from Kazhakoottam to Adoor. The activities undertaken include developing of hospitals in to resourced trauma care facility and procuring of Ambulances for these hospitals. A total of 7 hospitals have been identified for applying of the proposed interventions. The procurement of the medical equipments are in different stages with some of them being retendered due to no response. c. Component C: Institutional Strengthening: Three key activities have been taken up as part of the Road Sector Modernization effort under this component, viz; (i) Upgradation of the Road Maintenance Management System (RMMS); (ii) Setting up of a Centre of Excellence and (iii) E-Governance support. Data collection for the RMMS has been largely completed by Central Road Research Institute (CRRI). Procurement of the consultant for Supply, Installation, Testing, and Commissioning of a Web-based Software for Road Maintenance Management System has been completed. Under the e-governance support, computers, printers and other computer related peripherals are expected to be procured for the Public Works Department, including the Divisional Offices. Procurement of the hardware is currently underway. In addition, post-construction Technical Audit has also been undertaken under this component. The technical audit has been completed and the final report has been recently submitted to the Bank. On the Centre of Excellence, the consultant has submitted all the deliverables including a note to the Cabinet with recommendations and the strategic action plan for implementation of these recommendations for converting Kerala Highway Research Institute (KHRI) into a Centre of Excellence. The World Bank India Second Kerala State Transport Project (P130339) Government of Kerala has approved these recommendations and a Government Order for implementation of the recommendations has been issued. As a first step in this direction, a
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