Document of The World Bank FOR OFFICIAL USE ONLY Report No: ICR00004803 IMPLEMENTATION COMPLETION AND RESULTS REPORT ON A CREDIT IN THE AMOUNT OF SDR 105.6 MILLION (US$160 MILLION EQUIVALENT) TO THE REPUBLIC OF INDIA FOR THE RAJASTHAN ROAD SECTOR MODERNIZATION PROJECT October 10, 2019 Transport Global Practice South Asia Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective December 27, 2018) Currency Unit = Indian Rupee (INR) INR 70.4 = US$1 US$1.39 = SDR 1 FISCAL YEAR April 1 – March 31 ABBREVIATIONS AND ACRONYMS DPR Detailed Project Report EIRR Economic Internal Rate of Return GOR Government of Rajasthan HDM-4 Highway Development and Management Model HR Human Resources ICR Implementation Completion and Results Report IFMS Integrated Financial Management System iRAP International Road Assessment Programme IRI International Roughness Index IRR Internal Rate of Return ISR Implementation Status and Results Report ITS Intelligent Transport Services M&E Monitoring and Evaluation MDR Major District Road MIRR Modified Internal Rate of Return MMGSY Mukhya Mantri Gram Sadak Yojana MTR Midterm Review NGO Nongovernmental Organization NPV Net Present Value PAD Project Appraisal Document PAT Performance Assessment Tool PDO Project Development Objective PIU Project Implementation Unit PMC Project Management Consultant PMGSY Prime Minister Gram Sadak Yojana PPA Project Preparation Advance PPP Public-Private Partnership PS Principal Secretary PWD Public Works Department RAMS Road Asset Management System RF Results Framework RSMP Road Sector Modernization Plan SCDP Safe Corridor Demonstration Program SDC System Defining Consultant SH State Highway SHA State Highway Authority SPC System Providing Consultant VOC Vehicle Operating Cost VOT Value of Time Regional Vice President: Hartwig Schafer Country Director: Junaid Kamal Ahmad Senior Global Practice Director: Guangzhe Chen Practice Manager: Shomik Raj Mehndiratta Task Team Leader(s): Justin Runji, Reenu Aneja ICR Main Contributor: Oceane Keou TABLE OF CONTENTS DATA SHEET ......................................................................................................................... 1 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ....................................................... 5 A. CONTEXT AT APPRAISAL .........................................................................................................5 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) .......................................9 II. OUTCOME .................................................................................................................... 11 A. RELEVANCE OF PDOs ............................................................................................................ 11 B. ACHIEVEMENT OF PDOs (EFFICACY) ...................................................................................... 12 C. EFFICIENCY ........................................................................................................................... 17 D. JUSTIFICATION OF OVERALL OUTCOME RATING .................................................................... 17 E. OTHER OUTCOMES AND IMPACTS (IF ANY) ............................................................................ 18 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 18 A. KEY FACTORS DURING PREPARATION ................................................................................... 18 B. KEY FACTORS DURING IMPLEMENTATION ............................................................................. 19 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 20 A. QUALITY OF MONITORING AND EVALUATION (M&E) ............................................................ 20 B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ..................................................... 21 C. BANK PERFORMANCE ........................................................................................................... 22 D. RISK TO DEVELOPMENT OUTCOME ....................................................................................... 23 V. LESSONS AND RECOMMENDATIONS ............................................................................. 24 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ........................................................... 25 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ......................... 33 ANNEX 3. PROJECT COST BY COMPONENT ........................................................................... 35 ANNEX 4. EFFICIENCY ANALYSIS ........................................................................................... 36 ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ... 44 ANNEX 6. REVISED THEORY OF CHANGE .............................................................................. 48 ANNEX 7. BORROWER ICR REPORT ...................................................................................... 49 ANNEX 8. COMPARATIVE ASSESSMENT OF STATES’ INITIATIVES ........................................... 50 The World Bank Rajasthan Road Sector Modernization Project (P130164) DATA SHEET BASIC INFORMATION Product Information Project ID Project Name P130164 Rajasthan Road Sector Modernization Project Country Financing Instrument India Investment Project Financing Original EA Category Revised EA Category Partial Assessment (B) Organizations Borrower Implementing Agency Department of Economic Affairs, Ministry of Finance, Rajasthan State Public Works Department Govt. of India Project Development Objective (PDO) Original PDO The project development objective is to improve rural connectivity, enhance road safety and strengthen road sector managementcapacity of the state of Rajasthan. Page 1 of 62 The World Bank Rajasthan Road Sector Modernization Project (P130164) FINANCING Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 160,000,000 131,877,656 121,630,913 IDA-53100 Total 160,000,000 131,877,656 121,630,913 Non-World Bank Financing 0 0 0 Borrower/Recipient 67,000,000 56,000,000 56,000,000 Total 67,000,000 56,000,000 56,000,000 Total Project Cost 227,000,000 187,877,656 177,630,913 KEY DATES Approval Effectiveness MTR Review Original Closing Actual Closing 29-Oct-2013 10-Mar-2014 16-May-2016 31-Dec-2018 31-Dec-2018 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 27-Jul-2017 92.51 Change in Results Framework Change in Components and Cost Reallocation between Disbursement Categories Other Change(s) KEY RATINGS Outcome Bank Performance M&E Quality Moderately Unsatisfactory Moderately Unsatisfactory Modest RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 22-Feb-2014 Satisfactory Satisfactory .60 Page 2 of 62 The World Bank Rajasthan Road Sector Modernization Project (P130164) 02 30-Jul-2014 Satisfactory Moderately Satisfactory 22.71 03 23-Jan-2015 Satisfactory Moderately Satisfactory 23.33 04 04-Jun-2015 Satisfactory Moderately Satisfactory 69.91 05 20-Nov-2015 Satisfactory Moderately Satisfactory 75.55 06 21-Jan-2016 Satisfactory Moderately Satisfactory 75.55 07 26-Aug-2016 Satisfactory Satisfactory 89.79 08 05-Mar-2017 Satisfactory Satisfactory 91.58 09 23-May-2017 Satisfactory Satisfactory 91.58 10 26-Jul-2017 Moderately Satisfactory Moderately Satisfactory 92.51 11 18-Dec-2017 Moderately Satisfactory Moderately Satisfactory 105.12 Moderately 12 10-Apr-2018 Moderately Unsatisfactory 105.12 Unsatisfactory Moderately 13 28-Dec-2018 Moderately Unsatisfactory 112.59 Unsatisfactory SECTORS AND THEMES Sectors Major Sector/Sector (%) Transportation 100 Public Administration - Transportation 3 Rural and Inter-Urban Roads 97 Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Private Sector Development 10 Public Private Partnerships 10 Urban and Rural Development 100 Rural Development 100 Rural Infrastructure and service delivery 100 Page 3 of 62 The World Bank Rajasthan Road Sector Modernization Project (P130164) ADM STAFF Role At Approval At ICR Regional Vice President: Philippe H. Le Houerou Hartwig Schafer Country Director: Onno Ruhl Junaid Kamal Ahmad Director: John Henry Stein Guangzhe Chen Practice Manager: Karla Gonzalez Carvajal Shomik Raj Mehndiratta Task Team Leader(s): Ashok Kumar, Mesfin Wodajo Jijo Justin Runji, Reenu Aneja ICR Contributing Author: Oceane Keou Page 4 of 62 The World Bank Rajasthan Road Sector Modernization Project (P130164) I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL Context 1. At project appraisal in 2013, Rajasthan—one of the largest states of India covering nearly 10 percent of total area of the country—had nearly 5 percent of the total population of India (5.2 percent as of today). Being one of the low-income states of India, its per capita income (US$943) was about 20 percent lower than the national average (US$1,185). About 75 percent of the state’s population was rural and mainly depending on agriculture for its livelihood. It was identified that the state had good potential for growth in agriculture and agro-based industries, mining and minerals processing, tourism, and cottage industries, but this potential was underutilized due to inadequate road infrastructure and market links. 2. Considering the need for high-quality