Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 30085-IN PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED LOAN IN THE AMOUNT OF US$620 MILLION TO THE GOVERNMENT OF INDIA FOR THE LUCKNOW-MUZAFFARPURNATIONAL HIGHWAY PROJECT Public Disclosure Authorized November 29,2004 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Public Disclosure Authorized Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective November 29,2004) Currency Unit = INR INR 1.00 = US$ 0.022 US$ 1.00 = INR45.0 1 Lakh = 100,000 1 Crore = 10,000,000 FISCAL YEAR April 1 - March31 ABBREVIATIONS AND ACRONYMS ABP Allahabad Bypass Project IS0 Intemational Standards Organisation ADB Asian Development Bank LMNHP Lucknow-Muzaffarpur National Highway Project BOT Build, Operate and Transfer MIS Management Information System BOQ Bill ofQuantity MOEF Ministry ofEnvironment and Forests CAS Country Assistance Strategy MORTH Ministry ofRoad Transport and Highways CAG Comptroller and Auditor General MTR Mid Term Review CRF Central Road Fund NGO NonGovernmental Organization CWIP Cost ofWork in Progress NHAI National Highways Authority ofIndia DEA Department ofEconomic Affairs of NHDP National Highway Development Government ofIndia Project DLC District Level Committee NPV Net Present Value EA Environmental Assessment O&M Operation and Maintenance EMP Environmental Management Plan PAFIT Project Affected FamilyiPerson EOP End ofProject PCU Passenger Car Units ERR Economic Rate ofRetum PFMS Project Financial Management System ESW Economic and Sector Work PIU Project Implementation Unit FBS Fixed Budget Selection RAP Resettlement Action Plan FMR Financial Monitoring Report RIS Road Information System FMS Financial Management System ROB Road Over Bridge (for railway) GO1 Government ofIndia ROW Right ofWay GQ Golden Quadrilateral R&R Resettlement and Rehabilitation GM General Manager SIA Social Impact Assessment GRC Grievance Redressal Committee SOE Statement ofExpenditure GTRIP Grand Trunk Road Improvement Project SPCB State Pollution Control Board ha Hectare SPV Special Purpose Vehicle HDM Highway Design and Maintenance Model STD Sexually Transmitted Disease ICB Intemational Competitive Bidding TNHP Third National Highway Project ICR Implementation Completion Report UP Uttar Pradesh IFY Indian Fiscal Year voc Vehicle Operating Cost Vice President: Praful C. Pate1 Country Director: Michael F. Carter Sector Manager: Guang Z. Chen Task Team Leader: Piers A. Vickers FOR OFFICIAL USE ONLY INDIA Lucknow-Muzaffarpur National Highway Project CONTENTS Page A . STRATEGIC CONTEXT AND RATIONALE ..................................................................... 1 1. Country and sector issues.................................................................................................... 1 2 . Rationale for Bank involvement ......................................................................................... 1 3 . Higher level objectives to which the project contributes .................................................... 2 B. PROJECT DESCRTPTION..................................................................................................... 3 1. Lending instrument ............................................................................................................. 3 2 . Program objective and phases ............................................................................................. 3 3 . Project development objective and key indicators.............................................................. 4 4 . Project components ............................................................................................................. 4 5 . Lessons learned and reflected in the project design ............................................................ 5 6 . Altematives considered and reasons for rejection .............................................................. 5 C . IMPLEMENTATION............................................................................................................. 6 1. Partnership arrangements .................................................................................................... 6 2 . Institutional and implementation arrangements .................................................................. 6 3 . Monitoring and evaluation (M&E) ofoutcomes/results A ................................................... 7 * .. 4 . Sustainability....................................................................................................................... 8 5 . Critical risks and possible controversial aspects ................................................................. 9 6 . Loadcredit conditions and covenants ............................................................................... 10 D. APPRAISAL SUMMARY ................................................................................................... 10 1. Economic and financial analyses ...................................................................................... 10 2 . Technical ........................................................................................................................... 11 3 . Fiduciary ........................................................................................................................... 12 4 . Social................................................................................................................................. 12 5 . Environment ...................................................................................................................... 14 6 . Safeguard policies ............................................................................................................. 15 7 . Policy Exceptions and Readiness ...................................................................................... 15 ~ This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization. Annex 1: Country and Sector or Program Background ................................................................ 16 Annex 2: Major Related Projects Financed by the Bank andor other Agencies .......................... 19 Annex 3 : Results Framework and Monitoring.............................................................................. 20 Annex 4: Detailed Project Description ......................................................................................... 23 Annex 5: Project Costs .................................................................................................................. 24 Annex 6: Implementation Arrangements ...................................................................................... 25 Annex 7: Financial Management and Disbursement Arrangements ............................................ 28 Annex 8: Procurement .................................................................................................................. 33 Annex 9: Economic and Financial Analysis ................................................................................. 37 Annex 10: Safeguard Policy Issues............................................................................................... 43 Annex 11 : Project Preparation and Supervision ........................................................................... 48 Annex 12: Documents in the Project File ..................................................................................... 49 Annex 13: Statement of Loans and Credits .................................................................................. 50 Annex 14: Country at a Glance..................................................................................................... 54 MAP@) IBRD No. 33344 INDIA LUCKNOW-MUZAFFARPUR NATIONAL HIGHWAY PROJECT PROJECT APPRAISAL DOCUMENT SOUTH ASIA SASE1 Date: November 29,2004 Team Leader: Piers A. Vickers Country Director: Michael F. Carter Sectors: Roads and highways (100%) Sector Manager: Guang Z. Chen Themes: Infrastructure services for private sector development (P) Project ID: PO77856 Environmental screening category: Full Assessment Lending Instrument: Specific Investment Loan Safeguard screening category: Significant [XI Loan [ 3 Credit [ ] Grant [ ] Guarantee [ ] Other: RECONSTRUCTION AND DEVELOPMENT Total: 582.78 223.19 805.97 Borrower: GOVERNMENT OF INDIA 1 Responsible Agency: NATIONAL HIGHWAYS AUTHORITY OF INDIA Mr. B. P. Kukrety, Chief General Manager (EW) National Highways Authority of India NHAI, Plot No. G5&G6 Sector 10, Dwarka New Delhi, India Tel: 91 11 2509 3527 Fax: 91 11 2508 0360 bpkukretyanhai .org Expected effectiveness date: May 3 1, 2005 Expected closing date: June 30,2010 Does the project depart from the CAS in content or other significant respects? [ ]Yes [XINO Re$ PAD A.3 Does the project require any exceptions from Bank policies? Re$ PAD D. 7 [ ]Yes [XINO Have these been approved by Bank management? [ ]Yes [ IN0 Is approval for any policy exception sought from the Board? [ ]Yes [ IN0 Does the project include any critical risks rated “substantial” or “high”? [XIYes []No Re$ PAD C.5 Does the project meet the Regional criteria for readiness for implementation? [XIYes [ ]No Re$ PAD D. 7 Project development objective Re$ PAD B.2, Technical Annex 3 The project development