Completion Report

Project Number: 41127-013

Loan Number: 2443
Technical Assistance Number: 7130
August 2018

India: Bihar State Highways Project

This document is being disclosed to the public in accordance with ADB’s Public Communications
Policy 2011.
 CURRENCY EQUIVALENTS

Currency Unit – India rupee/s (₹)

At Appraisal At Project Completion

(25 August 2008) (31 March 2016)
₹1.00 = $0.0230 $0.0151
$1.00 = ₹43.4550 ₹66.2031

ABBREVIATIONS

ADB – Asian Development Bank

BSRDC – Bihar State Road Development Corporation
EIRR – economic internal rate of return
EMP – environment management plan
FY – fiscal year
GOB – Government of Bihar
km – kilometer
OPRMC – output and performance-based road asset maintenance contract
PCR – project completion review
PIU – project implementation unit
PMU – project management unit
RP – Resettlement Plan
RCD – Road Construction Department, Government of Bihar
TA – technical assistance
VOC – vehicle operation cost

NOTES

(i) The fiscal year (FY) of the Government of India ends on 31 March. “FY”
before a calendar year denotes the year in which the fiscal year ends, e.g.,
FY2018 ends on 31 March 2018.
(ii) In this report, "$" refers to United States dollars.

Vice-President Wencai Zhang, Operations 1

Director General Hun Kim, South Asia Department (SARD)
Director Kenichi Yokoyama, Country Director, India Resident Mission, SARD

Team leader Prabhasha Sahu, Senior Project Officer (Transport), SARD

Team members Shiva Raju Dodla, Associate Project Analyst, SARD
Anil Motwani, Senior Project Officer (Transport), SARD

In preparing any country program or strategy, financing any project, or by making any designation
of or reference to a particular territory or geographic area in this document, the Asian
Development Bank does not intend to make any judgments as to the legal or other status of any
territory or area.
 CONTENTS

Page
BASIC DATA i
I. PROJECT DESCRIPTION 1
II. DESIGN AND IMPLEMENTATION 1
A. Project Design and Formulation 1
B. Project Outputs 2
C. Project Costs and Financing 3
D. Disbursements 3
E. Project Schedule 3
F. Implementation Arrangements 4
G. Technical Assistance 4
H. Consultant Recruitment and Procurement 5
I. Safeguards 5
J. Monitoring and Reporting 6
III. EVALUATION OF PERFORMANCE 7
A. Relevance 7
B. Effectiveness 7
C. Efficiency 8
D. Sustainability 8
E. Development Impact 9
F. Performance of the Borrower and the Executing Agency 9
G. Performance of the Asian Development Bank 10
H. Overall Assessment. 10
IV. ISSUES, LESSONS, AND RECOMMENDATIONS 11
A. Issues and Lessons 11
B. Recommendations 11

APPENDIXES

1. Design and Monitoring Framework 12

2. Summary of Salient Features of the Project 14
3. Project Cost at Appraisal and Actual 15
4. Project Cost by Financier 16
5. Disbursement of ADB Loan Proceeds 17
6. Appraisal and Actual Implementation Schedules Compared 18
7. Chronology of Main Events 19
8. Technical Assistance Completion Report 21
9. Status of Compliance with Loan Covenants 24
10. Summary of Contract Packages 35
11. Economic Reevaluation 36
 BASIC DATA

A. Loan Identification

1. Country India
2. Loan number and financing 2443 from ADB’s ordinary capital resources
source
3. Project title Bihar State Highways Project
4. Borrower Government of India
5. Executing agency Road Construction Department, Bihar
State
6. Amount of loan Original: $420.0 million
7. Project completion report number 1700
8. Financing modality Project loan

B. Loan Data

1. Appraisal
– Date started 6 May 2008
– Date completed 13 May 2008

2. Loan negotiations
– Date started 19 August 2008
– Date completed 19 August 2008

3. Date of Board approval 18 September 2008

4. Date of loan agreement 10 November 2008

5. Date of loan effectiveness

– In loan agreement 8 February 2009
– Actual 8 January 2009
– Number of extensions None

6. Project completion date

– Appraisal 31 January 2012
– Actual 31 March 20161

7. Loan closing date

– In loan agreement 31 July 2012
– Actual 31 July 2012
– Number of extensions None

8. Financial closing date

– Actual 28 January 2013

9. Terms of loan
– Interest rate London interbank offered rate-based
– Maturity (number of years) 25
– Grace period (years) 5

10. Terms of Relending (if any)

– Interest rate London interbank offered rate-based
– Maturity (number of years) 25
– Grace period (years) 5
– Second-step borrower None

1
The balance works under two civil work contracts beyond loan closing date were financed by Road Construction Department,
Government of Bihar.
ii

10. Disbursements
a. Dates
Initial Disbursement Final Disbursement Time Interval
20 March 2009 23 November 2012 44 Months
Effective Date Actual Closing Date Time Interval
8 January 2009 31 July 2012 43 Months

b. Amount ($)
Increased Canceled
Original during during Last Revised Amount Undisbursed
Allocation Implemen- Implemen- Allocation Disbursed Balance
Category (1) tation (2) tation (3) (4=1+2–3) (5) (6 = 4–5)
1 Works 367,700,00 - 24,154,441 343,545,559 343,545,559 -
2 Equipment 4,000,000 - 4,000,000 - - -
3 Consulting
-
services 13,000,000 5,025,559 7,974,441 7,974,441 -
4 Unallocated 35,300,000 - 35,300,000 - -
Total 420,000,00 - 68,480,000 351,520,000 351,520,000 -
Note: The last reallocation was made on 4 June 2012 at partial loan cancellation as the government
decided to finance spillover works beyond the loan closing date.

C. Project Data

1. Project Cost ($ million)

Cost Appraisal Estimate Actual
Foreign Exchange Cost 310.0 298.7
Local Currency Cost 158.0 151.9
Total 468.0 450.6

2. Financing Plan ($ million)

Cost Appraisal Estimate Actual
Implementation Costs
Borrower Financed 29.2 88.4
ADB Financed 420.0 351.5
Total Implementation Costs 449.2 439.9
IDC Costs and other Financial Charges
Borrower Financed 18.8 10.7
ADB Financed
Total IDC Costs and other Financial 18.8 10.7
Charges
ADB = Asian Development Bank, IDC = interest during construction.
 iii

3. Cost Breakdown by Project Component ($ million)

Component Appraisal Estimate Actual
A. Resettlement and Rehabilitation 1.6 1.7
B. Civil Works
1. SH 68 Sheogunj–Baidrabad 29.3 40.2
2. SH 69 Dumaria–Ranitalab 59.1 65.5
3. SH 70 Gaya–Rjauli 19.7 21.7
4. SH 71 Jehanabad–Parwatipur 33.2 36.7
5. SH 73 Siwan–Shitalpur 44.8 48.3
6. SH 74 Hajipur–Aseraj 42.4 47.5
7. SH 75 Arbhanga–Madhwapur 27.1 34.7
8. SH 76 Araia–Bhaptiyahi 72.4 67.7
9. SH 77 Krsela–Forbesgunj 63.5 56.2
Subtotal (B) 391.5 418.6
C. Consulting Services 13.0 11.0
D. Project Management 3.0 8.6
E. Institutional Development (Equipment) 4.0 -
Subtotal (A+B+C+D+E) 411.5 439.9
F. Contingencies
a
1. Physical Contingencies 19.6
a
2. Price Contingencies 18.2
G. Interest During Construction 17.8 9.3
H. Commitment Charges 1.0 1.4
Total 468.0 450.6
a Included in civil works.

4. Project Schedule
Item Appraisal Estimate Actual
A. Project Preparation
Loan Processing and Approval Q3 2007 – Q3 2008 Q3 2008 – Q1 2009
Detailed Design Q1 2007 – Q4 2007 Q1 2007 – Q4 2007
B. Construction Supervision Consultants
Selection Q4 2007 – Q3 2008 Q1 2008 – Q4 2008
Supervision Q4 2008 – Q3 2011 Q4 2008 – Q1 2016
C. Civil Works
Procurement Q4 2007 – Q3 2008 Q1 2008 – Q2 2009
Construction Q4 2008 – Q3 2011 Q4 2008 – Q1 2016
D. Technical Assistance
Implementation Q3 2008 – Q3 2009 Q3 2009 – Q1 2011
iv

5. Project Performance Report Ratings

Ratingsa
Implementation
Implementation Period Development Objectives Progress
From 1 September to 31 December 2008 Satisfactory Satisfactory
From 1 January to 31 December 2009 Satisfactory Satisfactory
From 1 January to 31 August 2010 Satisfactory Satisfactory
From 1 September to 31 December 2010 Satisfactory Highly Satisfactory
From 1 January to 31 March 2011 on Trackb
From 1 April to 31 December 2011 on Trackb
From 1 January to 31 March 2012 on Trackb
From 1 April to 31 December 2012 on Trackb
a Project performance report ratings are based on a different method than that used for the project completion
report.
b Based on new ratings for project performance in the E-operations

D. Data on Asian Development Bank Missions

No. of Specializati
No. of Person- on of
Name of Mission Date Persons Days Members
Fact finding 5–7 and 22–27 November 2007 3 27 t, s, t
Appraisal 6–13 May 2008 7 56 t, o, t, s, y, t, t
Inception 24–28 November 2008 6 30 t, t, s, l, a, t
Inception for TA 31 August–4 September 2009 2 10 t, t
Review 7–10 December 2009 2 8 t, c
Review 13–17 December 2010 3 30 t, t, t, s, c, c
Review 16–20 May 2011 6 30 t, t, t, s, c, c
Special Loan 18–20 August 2011 6 18 t, s, a, c, c, p
administration
Consultation 30–31 January 2012 2 4 p, a
Review 18–21 July 2012 2 8 p, a
Safeguards Review 14–19 October 2012 2 12 f, e
Project Completion 20–24 November 2017 2 10 a, c
Review
a = analyst, c = consultant, e = environmental specialist; f = safeguards officer, l = control officer, o =
counsel, p = project officer, s = social development specialist; t = transport specialist, y = young
professional.
 I. PROJECT DESCRIPTION

1. Bihar is a landlocked state in the middle Gangetic plain region of India. It is surrounded by
Nepal (north) and by the Indian states of Jharkhand (south), Uttar Pradesh (west), and West Bengal
(east). The state is one of the most populated, economically backward, low-income state in India.
At appraisal, the road network in Bihar was poor in terms of coverage and condition and
strengthening the road network was a high priority of the state government to provide momentum
to the economic development of the state.

2. At the request from the Government of India, on 18 September 2008, the Asian
Development Bank (ADB) approved a loan of $420 million from ADB’s ordinary capital resources
for the Bihar State Highways Project for rehabilitating and reconstructing state highways identified
under the State Highway Development Program of the Government of Bihar (GOB). 1 The GOB
was the executing agency through its Road Construction Department (RCD). The project’s
anticipated impact was increased economic growth in Bihar and the anticipated outcome was
enhanced road transport efficiency and safety. The project outputs were (i) rehabilitated and
improved state roads; and (ii) improved sector management. At appraisal, the project comprised
rehabilitation and reconstruction of about 820 kilometers (km) of state highways identified under the
State Highway Development Program. Along with the loan, technical assistance (TA) was also
provided to support the GOB’s sector development initiatives. 2 The aim of the TA was to develop
the RCD into a state-of-the-art road agency equipped with modern systems of business procedures,
planning processes, quality assurance, engineering, and human resources development.

II. DESIGN AND IMPLEMENTATION

A. Project Design and Formulation

3. The project was relevant to Bihar’s road transport sector needs and aligned with ADB’s
country strategy and program update for India (2006–2008) and ADB’s country partnership strategy
for India (2009–2012) 3 as it was designed to help Bihar achieve its poverty reduction and economic
development goals. At appraisal, the road network in Bihar was very poor in terms of coverage and
condition while demand for road transport was increasing. Insufficient funding for road maintenance
had increased the number of roads that were in a beyond maintainable condition. To address this
issue and improve the road network, the GOB undertook the State Highway Development Program,
which aimed to rehabilitate and upgrade 2,831 km of the 3,127 km of state highways during the
Eleventh Five-Year Plan period (2007–2012).4 The improvement of 820 km of state highways under
the project was part of the program, which would help the GOB meet increased demands for road
transport and accelerate the process of economic development of the state.

4. The project was the first road project in Bihar funded by ADB. Given the limited capacity of
the state agencies and the huge infrastructure gap, a project loan modality was considered as a
first intervention towards enhancing the institutional capacity of state agencies. The project was
prepared with the active participation of road agencies within and outside the state, which helped
improve project readiness. Extensive community consultation and focus group discussions were
carried out during project inception and continued throughout implementation. The economic and
poverty analyses and social assessments were also carried out in compliance with ADB guidelines.
During and after implementation, the project was found to be closely aligned with the government’s

1
ADB. August 2008. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to
India: Bihar State Highways Project. Manila.
2
ADB 2008. Technical Assistance to the Government of Bihar for the Institutional Strengthening of the Bihar Road Sector.
Manila (TA 7130-IND).
3
ADB. 2006. Country Strategy and Programing Update: India, 2006–2008. Manila; ADB. 2009. Country Partnership
Strategy: India, 2009–2012. Manila.
4
Government of India, Planning Commission, 2008. Eleventh Five-Year Plan, 2007–2012. Delhi.
2

objectives and strategy and the country partnership strategy for India, 2009 –2012. 5 Overall, the
project’s design and formulation were adequate, and the implementation results fulfilled both the
government’s development objectives and ADB’s country strategy. Considering the importance of
roads to stimulating economic growth and human development, the project remains as relevant with
the government’s objectives and strategy and ADB’s country strategy at completion as at appraisal.

B. Project Outputs

5. The project outputs were (i) rehabilitated and improved state roads (the physical component
of the project) and (ii) improved sector management (institutional development component).

6. Rehabilitated and improved state roads. This output was derived from the project’s
physical component. At appraisal, the project consisted of the improvement of about 820 km of
state highways. Civil works under the project included upgrading the existing roads to two lanes,
strengthening culverts and bridges, constructing new bridges and cross-drainage structures; and
building structures for resettlement and rehabilitation. Upon completion, a total of 825.14 km of state
highways in nine road sections were rehabilitated or upgraded. This work included widening the
existing single-lane roads to two lanes, strengthening culverts and bridges, constructing new
bridges and cross-drainage structures, and building structures for resettlement and rehabilitation.6
During implementation, minor engineering revisions to the design were done based on actual site
conditions to enhance the road design, minimize social impacts, and enhance durability and
performance. Revisions included adjustments in road alignment and center line, pavement
composition, and road width depending on site requirements. The civil works contractors carried
out the quality control of the construction in accordance with their contractual requirements. The
construction supervision consultants assessed and supervised the works to ensure that the
specifications were met. No significant defects or quality problems were reported during the defect
liability period. ADB’s project completion review (PCR) mission in November 2017 observed that
the project roads were of good quality, enabling comfortable and safe ride. A summary of the
outputs of the investment component is in Appendix 2.

7. Improved sector management. This output was derived from the project’s institutional
development component. At appraisal, it was envisaged that the project would provide the
equipment required by the GOB to enhance sector capacity in areas such as quality control, survey
and design, and control of overloading and vehicle emissions. The major equipment included
laboratory equipment, survey and design equipment and software, a vehicle emission and fitness
testing machine, and weighbridges. During project implementation, the RCD adequately planned
and equipped—from its own resources—their central and regional quality control laboratories with
laboratory equipment, and survey and design equipment. The state’s commercial tax department
constructed six commercial check posts, each equipped with weighing bridges at the important
entry points into the state. As the equipment requirements of the RCD envisaged under the project
were met, the allocation for the same was canceled from the loan account as a part of the partial
loan cancellation. All project works were completed without any major delay by the loan closing
date, except for two civil works contracts (para 11). The associated TA provided useful training and
deliverables to improve the institutional framework for roads and overall sector management (para.
13). In recent fiscal years, the RCD made full utilization of the allocated funds for road development
and maintenance. The RCD has implemented proactive measures, including maintenance of roads

5
Government of India, Planning Commission. 2003. Tenth Five Year Plan, 2002-2007. Delhi; Government of India,
Planning Commission. 2008. Eleventh Five Year Plan, 2007-2012. Delhi; Government of India, Planning Commission.
2013. Twelfth Five Year Plan, 2012-2017. Delhi. ADB. 2009. Country Partnership Strategy: India, 2009-2012. Manila.
6
About 658 km of state highways were rehabilitated or upgraded by 2012. Single-lane roads were widened primarily to
two lanes but at a few locations were widened to an intermediate lane due to right of way restrictions. Overall, the
project contributed 825.14 km of upgraded roads with average daily vehicle-kilometer as 3,404,528 vehicles in 2016 to
the ADB Results Framework.
 3

through output and performance-based road assets maintenance contracts (OPRMCs) .7 The RCD
is considering an operate-maintain-transfer model with private sector participation to ensure the
sustainability of the state road network. The proactive measure taken by RCD are likely to reduce
the maintenance costs (para. 28).

C. Project Costs and Financing

8. At appraisal, the total project cost was estimated at $468.0 million equivalent in the local
currency, including base cost, contingency, and financial charges. At project completion, the total
project cost was $450.6 million equivalent. The cost of civil works at completion was higher in rupee
terms than the cost at appraisal due to the prolonged construction period in some of the civil work
contracts. However, due to (i) depreciation of the rupee against the dollar since appraisal;8 (ii) the
non-utilization of the allocation of $4 million for equipment under the institutional development
component; and (iii) lower cost of interest during construction than at appraisal, the total project
cost in dollar at completion was about 3.7% lower than that at appraisal.

9. At appraisal, it was envisaged that the project would be financed through an ADB loan of
$420 million (89.7% of the project cost) and government funds of $48 million (10.3% of the project
cost). Upon completion, the final project financing was $351.5 million (78% of the project cost) from
ADB and $99.1 million (22% of the project cost) from the government. The financing ratio changed
as the GOB increased its finance expenditure on program management and funded the spillover
works beyond the loan closing date. The detailed comparison of the project financing at appraisal
and at completion is in Appendix 3.

D. Disbursements

10. The ADB loan was approved on 18 September 2008, signed on 10 November 2008, and
made effective on 8 January 2009. The loan proceeds were disbursed in accordance with ADB’s
Loan Disbursement Handbook (2007, as amended from time to time). Reimbursement procedures
were used for civil works and consulting services. Individual payment not exceeding $100,000 was
reimbursed using the statement of expenditures procedure. After the first disbursement on 20 March
2009, the disbursements gradually picked up and peaked in 2010 ($114.6 million) and 2011 ($125.3
million). All the civil works contracts except two were completed by the loan closing date of 31 July
2012, with a disbursement of $50.8 million in 2012. The GOB decided to finance spill over works
beyond the loan closing date and a surplus loan amount of $68.5 million was canceled on 4 June
2012. The loan financial account was kept open beyond the loan closing date to complete
disbursement of expenditures incurred up to loan closing. Upon completion, ADB disbursements
totaled $351.5 million (83.7%) of the original loan amount. The actual disbursements of the ADB
loan proceeds are in Appendix 5.

E. Project Schedule

11. At appraisal, it was envisaged that the project would be completed by 31 July 2012. To
expedite procurement, ADB approved advance contracting on 10 November 2007 and the contracts
were envisaged to be awarded by Q3, 2008. During project preparation, the RCD’s procurement
and consultant recruitment activities were well advanced. All nine civil work contracts were bid out
in February 2008. By December 2008, six of the nine civil works packages were awarded while the
remaining three packages were awarded in July 2009 after re-bidding. The consulting services
contracts for the supervision of civil works were signed in December 2008. Despite some
construction delays, seven of the nine contracts had been completed by the loan closing date of 31
July 2012. The remaining two contracts were substantially delayed due to the poor performance of
the contractor, local insurgency in the project area, and financial difficulties of the contractors.

7
OPRMC is an output and performance-based contract adopted for the long-term maintenance of existing road assets.
8
The rupee depreciated about 52% against the dollar between appraisal [2008] and completion [2016].
4

Based on the uncertainty in the progress of works and the completion schedule of remaining two
contracts due to insurgency issues, which also affected contractor’s performance, RCD did not seek
an extension of the loan closing date and decided to complete the balance works under these
contracts from government resources. The works under these two contracts were substantially
completed by March 2016. 9 The actual implementation schedule compared with the schedule at
appraisal is in Appendix 6, and a chronology of the main events is in Appendix 7.

F. Implementation Arrangements

12. The GOB was the executing agency for the project through its RCD. A project management
unit (PMU) was established under the RCD. The PMU was subsequently strengthened and
assigned under the Bihar State Road Development Corporation (BSRDC), a subsidiary agency of
RCD incorporated in April 2009. BSRDC consisted of a chief general manager, three general
managers, and 20 deputy general managers along with other staff. The BSRDC was responsible
for (i) the overall coordination, management, and monitoring of the project implementation; (ii)
supervision of the compliance with the safeguards policies; (iii) recruitment and procurement; and
(iv) financial management, including the preparation of withdrawal applications. Four project
implementation units (PIUs) were established in the field for the implementation of project roads
under the loan. Each PIU was headed by a deputy general manager who was supported by two
managers and five–six supporting staff. The PIU managers were delegated adequate technical and
administrative authority for expeditious project implementation at the site. The PIUs were assisted
by construction supervision consultants (CSCs). These consultants were assigned the power of an
engineer in accordance with the Fédération Internationale des Ingénieurs-Conseils (FIDIC)
condition of contract. The RCD also engaged three nongovernmental organizations (NGOs) to
assist in resettlement activities and addressing social safeguard issues. The BSRDC was effective
in the implementation of the project. Overall, the project’s implementation arrangements were
sufficient and effective.

G. Technical Assistance

13. In conjunction with the project, TA of $1,000,000 was approved by ADB on 18 September
2008 on a grant basis from the ADB TA funding program. 10 The objective of the TA was to provide
support to the GOB’s sector development initiatives with a focus to (i) redefine and restructure the
RCD to a state-of-the-art road agency; and (ii) implement new business procedures and provide
training to RCD officials to enable the RCD to restructure and adopt a new institutional and
management structure. New business procedures covered (i) procurement and contracting
processes; (ii) planning processes; (iii) quality assurance systems; (iv) engineering (pavement
design, maintenance methods, and safety); and (v) human resource management.

14. An international consulting firm was recruited in accordance with ADB Guidelines on the
Use of Consultants (2007, as amended from time to time). The TA commenced on 19 July 2009
and was completed on 30 June 2011. During implementation, the consultants reviewed the
institutional and organizational issues of the RCD and closely worked with the newly formed BSRDC.
As main deliverables, the TA prepared a draft Road Administration Act11, draft Road Safety Policy,
proposed adopting performance-based road maintenance, and developed a pilot Road
Management System. The TA provided useful reports and recommendations and trained RCD and
BSRDC officers in areas such as project management, road safety audit, road maintenance, private
sector participation in road sector, financial modeling, and risk analysis. The TA deliverables laid a
strong foundation for more competent road development agencies in Bihar and these deliverables

9
All road works were completed by March 2016 except for some structure works (bridge approaches and finishing items
on bridges), which are scheduled to be completed in 2018.
10
ADB. 2011. Technical Assistance to India for Institutional Strengthening of the Bihar Road Sector. Manila (TA 7130-
IND).
11
The scope of the Act includes provisions related to road governance and road management including road
maintenance.
 5

have been useful in the formulation of polices, development programs and monitoring systems. The
TA realized its objectives of assisting the GOB to strengthen institutional development initiatives in
the road sector of the State of Bihar. The TA implemented all the tasks specified in the TOR and
the achievements were well recognized by the government. The TA is rated successful. The TA
completion report is in Appendix 8.

H. Consultant Recruitment and Procurement

15. As envisaged at appraisal, two international consulting firms were recruited using the
quality- and cost-based selection method to supervise construction of civil works under the project.
The supervision consultants were selected and engaged in accordance with ADB’s Guidelines on
the Use of Consultants (2007, as amended from time to time). Contracts were signed with the
consulting firms on 5 December 2008. During implementation, the consultants mobilized the experts
and staff required in the terms of reference and established a main office at Patna and the required
site offices for the on-site construction supervision services. The consultants carried out all tasks
specified in the terms of reference, including construction supervision and quality control,
overseeing compliance with the environmental and social safeguards, assisting in financial
accounting, and providing on-site training. The performance of the supervision consultants was
rated satisfactory.

16. The civil works procurement conformed to the ADB’s Procurement Guidelines (2007, as
amended from time to time). As envisaged at appraisal, nine civil works contracts were procured
through international competitive bidding. ADB standard bidding documents for large works with
post qualification under the two-envelope system were adopted. Under the advance procurement
and retroactive financing of the project, the procurement for the civil works contracts started in
February 2008. Six of the nine civil works packages were awarded in November and December
2008, whilst another three packages were awarded in July 2009 after rebidding.

17. The performance of the civil works contractors was overall satisfactory. During
implementation, the contractors mobilized the required staff and equipment, established a camp for
accommodating their staff, set up laboratories and other engineering facilities, provided medical
facility for their workers, and installed road signage during the work as agreed by the local traffic
management authority. The contractors carried out quality control as per the requirements in the
contracts. The contractors were familiar with the practices needed to combat HIV/AIDS and
implemented an appropriate HIV/AIDS awareness program during construction. During
implementation, progress on some contracts was slow and the construction period was extended
beyond the original completion date due to inefficient project and construction management by the
civil works contractors. The BSRDC undertook substantial measures, including regular meetings
with the contractor’s management and issued notices for slow progress to some contractors. Seven
out of nine contractors were able to improve performance and completed the works by the loan
closing date. The performance of the remaining two contractors remained a matter of concern and
the contracts continued beyond the loan closing date. The contractor’s cash flow and local
insurgency at the site further delayed completion of these contract packages, which were
substantially completed in March 2016.

I. Safeguards

18. Environmental safeguards. The project was classified as category B for the environment,
in accordance with ADB’s Environment Policy (2002). Initial environmental examinations were
carried out for the nine subprojects during project preparation. The initial environmental
examinations indicated that the project was not expected to have adverse environmental impacts.
During implementation, the contractors generally implemented all measures required in the
contracts. Initially, the implementation of the environmental safeguards including the environmental
management and monitoring plans (EMMPs) was weak; this improved during project
implementation due to regular reviews and close interaction by the ADB project team with the PMU
6

and PIU staff, consultants, and contractors. Several workshops on compliance with environmental
safeguards were conducted. The BSRDC with the assistance from the supervision consultants
strengthened the monitoring and supervision on the compliance with the environment policies and
implementation of the EMMPs. The PMU worked closely with the construction supervision
consultants to monitor the environmental impacts and implementation of the EMMPs. A grievance
redress mechanism was established at each construction site for effective and timely redressal of
issues. During implementation, the BSRDC did not receive any complaints from the public. Regular
environmental monitoring reports were prepared and submitted to ADB. Ten environmental
monitoring reports are disclosed on the ADB website. 12 The overall implementation of
environmental safeguard measures was satisfactory.

19. Involuntary resettlement. The project was classified as category A for involuntary
resettlement in accordance with ADB’s Involuntary Resettlement Policy (1995). The project was
developed with a view to avoiding or minimizing the need for land acquisition and resultant
involuntary resettlement by means of adopting the most feasible technical design. In addition, the
project entailed rehabilitation of existing state highways within the available right-of-way and no
land acquisition was required. During project preparation, a census of all affected persons was
conducted, and resettlement plans (RPs) were prepared for each project highway, in accordance
with the Government of India’s National Rehabilitation and Resettlement Policy 2007, GOB’s Bihar
Land Acquisition Resettlement & Rehabilitation Policy 2007, ADB’s Policy on Involuntary
Resettlement (1995), and ADB’s Operation Manual F2 on Involuntary Resettlement. Under the
resettlement plans, the compensation was estimated and detailed in the entitlement matrix.

20. At appraisal, the resettlement impacts were limited to 1,984 non-titled households.13 During
implementation, overall resettlement impacts were minimized by further optimizing engineering
design and, upon completion, a total of 1,553 households were impacted. Three nongovernmental
organizations (NGO) were engaged by the PMU to assist the implementation of the RPs. With some
initial delays, the implementation of the RPs was improved through the close coordination between
the PMU, PIUs, NGOs, and local authorities. The compensation and other resettlement benefits
were paid to affected households in accordance with the project entitlement matrix. The training
programs for skill upgradation such as incense stick production, craftmanship of bamboo products,
livestock development, and sewing and stitching, were conducted in the project areas for income
restoration. During implementation, public consultations were conducted regularly as per the RPs.
The project established a grievance redress mechanism; however, no major grievance or complaint
from affected persons was received. The project authorities confirmed that there are no outstanding
issues related to social safeguards at completion. The overall implementation of social safeguard
measures was satisfactory.

21. Indigenous peoples. The project was classified as category B for indigenous peoples in
accordance with ADB’s Policy on Indigenous Peoples (1998). During implementation no separate
indigenous people’s plans were required to be prepared. However, project implemented the specific
measures through additional entitlements accorded to scheduled tribes who were classified as
vulnerable in accordance with the RP.

J. Monitoring and Reporting

22. The borrower and the executing agency complied with most of the loan covenants for the
project, which enabled the state to carry out the project with efficiency and in conformity with sound
administrative, financial, engineering, and environmental practices. During implementation, the
GOB provided adequate oversight, coordination, and the financial support required for project
implementation. The PMU was operating with adequate staff and resources. The procurement for
civil works contracts and the engagement of consultants were carried out in accordance with ADB

12
https://www.adb.org/projects/41127-013/main#project-documents
13
Nine updated resettlement plans were disclosed on the ADB website.
 7

guidelines and procedures (para 15 and 16). The implementation of measures for environmental
and social safeguards was satisfactory. Road maintenance is being undertaken by the RCD through
contracts, with regular fiscal allocations from the GOB. The audited project financial statements of
the project for each fiscal year from 2009 to 2012 were submitted to ADB with minor delays (2.5 –
5.3 months) and auditor opinions were unqualified and acceptable to ADB. The project progress
reports were prepared as required and submitted to ADB on a timely basis. During implementation,
ADB conducted 10 review missions including inception and special project administration missions.
All aspects of the project were comprehensively covered during these missions and a se parate
midterm review mission was not required. The project performance was closely monitored by the
RCD and the BSRDC. However, a systematic project performance monitoring system was not
developed and implemented, which constrained the GOB in capturing project benefits during project
implementation and in the preparation of the project completion report. The status of compliance
with loan covenants of the project is summarized in Appendix 9.

III. EVALUATION OF PERFORMANCE

A. Relevance

23. The project is considered relevant at both appraisal and completion, as the development of
highways and roads is an integral part of the government’s strategy for economic growth and
poverty reduction. The project supported the government’s (i) Eleventh Five-Year Plan (2007–2012)
which articulated the need for adequate, cost-effective, and high-quality infrastructure as a
prerequisite to sustainable growth, and (ii) Twelfth Five-Year Plan (2012–2017), which continued
the focus on inclusive growth and encouraged developments in infrastructure, agriculture,
education, health, and social welfare through government spending.14 The project was also aligned
with ADB’s country strategy and program update for India (2006–2008), and ADB’s country
partnership strategy for India (2009–2012) and was largely implemented as planned.15

24. The project design and modality were appropriate (para. 4). Active participation of road
agencies and extensive community consultations also improved project readiness. Only minor
engineering revisions in the design were done based on actual site conditions and to enhance the
road designs. It was the first ADB-assisted road project in Bihar, which introduced international best
practices for procurement and contract management. A TA was attached to the project to support
GOB’s initiatives for road development. The expected performance targets and indicators
formulated in the design and monitoring framework (DMF) were aligned with the project objectives
and were not changed during implementation.

B. Effectiveness

25. The project is rated effective in achieving its outcome and outputs. The performance targets
and indicators for outcome and outputs were achieved or progressed significantly towards
achievement. Upon completion, the project had improved a total 825.14 km of state highways,
which were widened to two lanes and observed to be in good condition, with international roughness
index ranging between 3 and 4; better than an index of 5.0 as anticipated at appraisal. 16 The
improvement of the project roads has led to a substantial reduction in vehicle travel time and
transport costs for both passengers and freight. The traffic on the project roads has achieved 8.4%
growth rate for cars and the average vehicle speed on the project roads increased from average
30–35 km/hour before the project to 60–80 km/hour after the project. According to the traffic surveys
carried out after project completion, the average vehicle travel time on project roads reduced by
14
Government of India, Planning Commission. 2008.Eleventh Five Year Plan, 2007-2012. Delhi; Government of India,
Planning Commission. 2013. Twelfth Five Year Plan, 2012-2017. Delhi.
15
ADB. 2009. Country Partnership Strategy: India, 2009-2012. Manila.
16
ADB project completion review mission. The roads were widened primarily to two lanes but at few locations were
widened to an intermediate lane due to right of way restrictions.
8

about 55% compared to before the project, which is more than the anticipated reduction of an
average 40% at appraisal. The vehicle operating cost (VOC) is reduced by an average 37%. 17

26. The project has improved the access and the connectivity of the rural poor to social services,
markets, and other economic activities. 18 The accidents rate reduced by about 23% and fatalities
by about 4.4% from 2011 to 2016. This was the first project in Bihar to adopt international
competitive bidding with FIDIC-based contracts and outsourcing of construction supervision. This
exposure has built the capacity of the RCD and BSRDC in project implementation with best
practices of procurement and contract management. The associated TA assisted the RCD and
BSRDC in various aspects of institutional development initiatives . The RCD and BSRDC staff have
gained exposure on advanced concepts in road development and management. The overall
implementation of safeguard measures was satisfactory and there were no unintended effects due
to the project (paras. 18 and 20). The TA delivered a draft Road Administration Act, draft a Road
Safety Policy, proposed adopting performance-based road maintenance, and developed a pilot
road management system, which has been instrumental in improving the effectiveness and
efficiency of the institutional framework for managing the state highway network and sector
management in Bihar.

C. Efficiency

27. The project is efficient in achieving its outcome and outputs. To assess the efficiency of the
project, the economic internal rate of return (EIRR) of the project was reevaluated by using a
methodology similar to that at appraisal and the updated data. The economic benefits were
calculated by comparing the “with-project” and “without-project” cases, including (i) savings in VOC;
and (ii) savings in passenger travel time costs. The EIRR was calculated at 20.5% for the whole
project, which is slightly lower than that estimated at appraisal, mainly because of the long
implementation period, higher capital cost, and lower traffic volumes on some project roads. 19
However, the EIRR is above the ADB recommended discount rate of 12%. The project is therefore
considered to be economically viable. The EIRR was subjected to a sensitivity analysis to test different
scenarios of maintenance costs and benefits. The sensitivity analysis results indicated that the project
continued to be economically viable for all tested scenarios. If a 20% maintenance cost increase
would be combined with a 20% benefit reduction, the EIRR would still be 17.1% for the whole project.
The sensitivity analysis confirmed that the project has robust economic viability. The sensitivity
analysis also showed that the EIRR was more sensitive to changes in economic benefits. For this
reason, the state government needs to pay attention to the socioeconomic development of the project
area and foster local transport services. The details of the economic reevaluation are in Appendix
11.

28. The delay in the completion of two civil work contracts was mainly due to local insurgency
and was beyond the control of the project (para. 11). This led the government to close the project
as scheduled and continue financing the remaining civil works using its own funds.

D. Sustainability

29. The project is rated likely sustainable by considering the institutional and financial
arrangements for the road construction and maintenance. It was not envisaged to toll the project
roads for revenue generation due to the nature of the roads and traffic and, therefore, financial
analysis was not undertaken at appraisal. Hence, the assessment of sustainability is confined to
the institutional and maintenance aspects in the PCR. The RCD is responsible for the maintenance
of state roads. The RCD is organized into four wings namely: north Bihar, south Bihar, national
17
As per the economic reevaluation of the project.
18
Interview with project beneficiaries, ADB-PCR mission during 20-24 November 2017.
19
At appraisal, the EIRR was calculated for each candidate road, which varied from 17.0% to 48.7%. The project was
however, considered as state road transport sector project rather than individual roads as all the subprojects are state
highways with similar characteristics. EIRR satisfying the economic efficiency criteria of 12% was considered robust.
 9

highways, special projects which are responsible for the construction and maintenance of roads.
The GOB has been proactive in ensuring the sustainability of the state road network. To meet the
maintenance requirement of the road network in Bihar, the RCD’s annual maintenance budget
almost doubled from ₹3,500 million in FY2012 to ₹6,000 million in FY2017 and annual maintenance
expenditure was ₹3,275 million and ₹5,970 million in the respective years. The GOB is taking
proactive cost-effective measures to reduce the cost of maintenance. Under the state’s Road
Assets Maintenance Policy, 2013,20 a total 8,828 km of state highways and major district roads are
currently maintained under 74 OPRMCs, with this number planned to increase. Substantial increase
in the allocation of funds for road maintenance, formulation of Road Assets Maintenance Policy,
2013 along with maintenance of road assets through OPRMCs are considered adequate for
sustainability of road assets. The RCD, through the BSRDC, is also considering an operate-
maintain-transfer model with private sector participation for long-term sustainability. The measure
taken by RCD are likely to reduce the maintenance costs per maintainable road by more than 10%.

30. The associated TA assisted the institutional development initiatives of the RCD and BSRDC.
During implementation, the TA consultants provided training on project management, road
maintenance, private sector participation in road sector, financial modeling, and risk analysis. A
Road Master Plan–2035 has further been prepared under technical assistance provided by ADB21
to lead road development and ensure the efficacy of the road network development in the state.

E. Development Impact

31. The project’s development impact is rated satisfactory. At appraisal, a poverty and social
impact assessment of the project was carried out, which focused on poverty, gender, HIV/AIDS,
and indigenous people. The assessment showed that there is no adverse impact on poverty, people,
and gender, did not anticipate any risk on HIV/AIDS, and also revealed limited or no significant
impact on indigenous people. The indigenous groups in the project area had been assimilated into
the local population. Instead, the assessment indicated that the construction and improvement of
the project roads would bring substantial socioeconomic benefits to the project influence areas.

32. The ADB PCR mission conducted consultation meetings with the related government
agencies, local governments and residents to capture the socioeconomic impacts of the project.
From the consultations and data collected during PCR Mission, it was found that (i) the Bihar ’s
economy experienced fast development in the recent decade with an increase in contribution of
road transport sector from 1.7% to 4.3% to the gross state domestic product during 2006 to 2015;
22
(ii) total employment of 56,032 person-months was provided by the project, including 7,920
person-months for unskilled labor; (iii) the vehicle travel time reduced by an average 55% and the
VOC reduced by an average 37%; (iv) the upgraded project roads improved access and
connectivity of the poor to social services, markets, and other economic activities, and travel time
to access health care in the vicinity of project roads reduced by at least 50%; (v) many new hotels,
shops, and garages were opened along the project roads, which has provided substantial new work
opportunities to local people; (vi) the price for the land along the project roads increased an average
3–4 times; and (vii) the road safety features incorporated in the project road design and construction
have significantly improved road safety in the project areas (para 26).23

F. Performance of the Borrower and the Executing Agency

33. The performance of the borrower and the executing agency is rated satisfactory, especially
considering that the project was the first highway project financed by ADB in the state. The related
government agencies, including the Department of Economic Affairs in the Ministry of Finance,

20
Government of Bihar, Road Construction Department, Bihar Road Assets Maintenance Policy, 2013. Patna
21
ADB.2015. TA-8170: Road Master Plan for Bihar’s State Highway Development.
22
Government of Bihar, Finance Department. Economic Survey 2016–17. Patna.
23
Interview with project beneficiaries, ADB-PCR mission during 20-24 November 2017.
10

actively participated in the project coordination and monitoring. The borrower and the executing
agency complied with most of the loan covenants. The state government provided the requisite
counterpart funding and established well-staffed PMU and PIUs. The PMU and the PIUs
coordinated various activities, including the shifting of utilities, resettlement activities, tree-cutting,
environmental clearances, procurement under civil works contracts, and the engagement of
consultants. With assistance from the supervision consultants, the PMU prepared the required
monthly and quarterly progress reports. The project accounts and financial statements were audited
annually by the auditor and were acceptable to ADB, and the audit reports were submitted to ADB
as required in the loan agreement. The RCD and the PMU facilitated and fully supported all ADB
review missions during implementation and at completion.

G. Performance of the Asian Development Bank

34. ADB’s overall performance was satisfactory. The project’s administration was undertaken
by ADB’s headquarters until December 2011, when it was delegated to ADB’s India Resident
Mission. ADB was closely involved in identifying and resolving issues during implementation
through (i) tripartite project review meetings between the borrower, the executing agency, and ADB
and (ii) regular review missions. In all, ADB fielded 10 review missions, including the inception
mission, special loan administration missions, safeguard review mission, and the completion review
mission. The ADB missions analyzed implementation issues affecting the project and provided
substantial inputs in preparing action plans to expedite the project’s implementation. The ADB
project team and experts provided regular training and support to the PMU and PIU staff,
consultants, and contractors on project management and environmental and social safeguards,
which built their capacity. Document approval during processing and implementation was timely
and all claims for payment were processed promptly. The role of the ADB missions in providing
timely advice and technical support on all aspects of the project was recognized by the government.

H. Overall Assessment.

35. Overall, the project is rated successful. The project is relevant to both the government’s
development objectives and ADB’s country partnership strategy. The project was designed
appropriately and implemented without any changes in scope. At completion, the project highways
substantially improved connectivity and supported the socioeconomic development in the project
area. The project has reduced VOCs, travel time, and transport costs. The project has brought
remarkable socioeconomic impacts in the project areas. The project is rated effective in achieving
its outcomes. The project’s outputs and outcomes demonstrate that it was an effective intervention
that substantially improved the transport efficiency of the state highway network, as well as
enhanced the RCD’s operational capacity in road development and maintenance. The project is
rated efficient in achieving its outcome and outputs. The recalculated EIRR of 20.5% is robust and
indicates that the project is economically viable. The project is rated likely sustainable considering
the adequate institutional and financial capacity for road maintenance as well as polices to support
the continued road network development in the state.

Overall Ratings
Criteria Rating
Relevance Relevant
Effectiveness Effective
Efficiency Efficient
Sustainability Likely sustainable
Overall Assessment Successful
Development impact Satisfactory
Borrower and executing agency Satisfactory
Performance of ADB Satisfactory
ADB = Asian Development Bank.
Source: Asian Development Bank.
 11

IV. ISSUES, LESSONS, AND RECOMMENDATIONS

A. Issues and Lessons

36. Implementation Issues. Seven of the nine civil work contracts under the project were
completed by the loan closing date without any major delay. The remaining two contracts were
substantially delayed, and these construction works continued beyond the loan closing date mainly
due to local insurgency at the site, and cash-flow problems of the contractors. At appraisal, most of
the implementation risks were identified, and remedial measures were incorporated into the project
design. However, more attention is needed to identify local issues, security concerns, and the
capacity of contractors so that specific measures, such as more stringent criteria for assessing the
financial resources of the contractor based on package size and risk premium to address security
concerns, can be incorporated in the project design and implementation schedule to avoid delays.

37. Support for project implementation and institutional development. This project was the
first road construction project in Bihar to adopt international best practices in procurement and
contract management. RCD and BSRDC officers were exposed to international competitive bidding
procedures along with the use of FIDIC contract conditions and the outsourcing of construction
supervision services. Initially, overall implementation of environmental monitoring and management
plans (EMMPs) was weak; however, this improved during project implementation due to regular
reviews and close interaction by the ADB project team with the PMU and PIU staff, consultants,
and contractors. The project built the capacity of the RCD and BSRDC officers by providing training
on procurement, safeguards, and contract management. The associated TA provided substantial
recommendations for the way forward in various institutional development aspects. The efforts
initiated during the TA were continued through policy dialogue and further technical assistance
provided by ADB under subsequent projects to ensure continuous and long-term support to
enhance the technical capacity of state government agencies in the transport sector.

38. Project monitoring and control. A PMU was initially established under the RCD and
subsequently strengthened and assigned under the BSRDC. The BSRDC was very effective in
implementing the project. Periodic monitoring and close involvement of high-level BSRDC officials
significantly contributed to the proper control of field activities, which helped in expediting the project
implementation. However, there is scope to improve the coordination with other government
agencies, particularly with local authorities at field level and PIUs to address field leve l
implementation issues (para. 11).

B. Recommendations

39. Future actions or follow-up. The project was well implemented and most of the contracts
were completed on time. The GOB has been implementing subsequent road projects with ADB
assistance and the capacity building and institutional development activities are continuing. All
future projects should take stock and build upon the outputs and knowledge from completed and
ongoing projects to further strengthen the institutional capacity, particularly in road safety, road
asset management, and road maintenance. The GOB should review and implement the draft Road
Administration Act prepared under the associated technical assistance.

40. Project benefit monitoring and evaluation. The project has generated initial socio-
economic impacts in the project area and is likely to have larger impacts in the next few years over
a wider region. For capturing project benefits, a monitoring and evaluation program should be
designed and undertaken to assess and document the socio-economic benefits and lessons
learned for incorporation in future projects.

41. Timing of the project performance evaluation report. The project performance
evaluation report may be prepared in 2020 or later, when all the project roads would have been in
full operation for some time. By then, traffic development, road maintenance and physical condition,
benefits attained, and socio-economic impacts can be better assessed.
12 Appendix 1

DESIGN AND MONITORING FRAMEWORK

Performance
Design Summary Targets/Indicators Project Achievements
Impact
Increased economic Contribution of road transport to Achieved
growth in Bihar the state gross domestic The contribution of road transport
product (1.7% in 2006) to the state gross domestic
increased to 3.5% by 2015 product increased to 4.3% by
2015.
Outcome
Enhanced road Actual growth rates of traffic on Achieved
transport efficiency project roads surpasses The actual traffic increased by at
and safety assumed growth rates, i.e., 8% least 8.4% annually in 2013–2017.
for cars
Achieved
Vehicle operating costs on The vehicle operation cost on the
project roads reduced by 30% project roads reduced by an
for two-axle trucks (from the average of 37%, including 36% for
current average of Rs19/km) two-axle trucks and 41% for
and by 35% for passenger passenger buses.
buses (from the current
average of Rs21/km) by
completion Achieved
The vehicle travel time on the
Travel time on project roads project roads reduced by an
reduced by an average of 40% average of 55% (speed for cars
(speed increased from current increased from average 30–35
average of 35 km/hour to 60 km/hour to 60–80 km/hour).
km/hour) by completion

Access of the rural poor to Achieved

social services, markets, and The project has substantially
other economic activities improved the access and the
improved (e.g., the number of connectivity of the rural poor to
daily trips by the rural poor social services, markets, and other
increased by 50% by 2012) economic activities.

At project completion, accident Achieved

rate (fatalities by vehicle-km) The accident rate reduced by
reduced by 20% from 2008 rate about 23% and fatalities by about
4.4% from 2011 to 2016.

Project roads maintained with Achieved

International Roughness Index At completion, the project roads
below 5 from over 10 at maintained with International
appraisal Roughness Index below 5.

Efficiency of RCD operations Achieved

(length of maintainable state By completion, the length of
roads per RCD engineer) maintainable state roads per RCD
increased by 100% by engineers increased by 100% (In
completion 2016, 750 RCD engineer were
responsible for maintaining about
15,150 km of state roads)
 Appendix 1 13

Performance
Design Summary Targets/Indicators Project Achievements
Outputs
1. Rehabilitated and Approximately 820 km of state Achieved
improved state roads highways rehabilitated or At completion, total 825.2 km of
upgraded to two lanes by 2011 state highways were rehabilitated
or upgraded to two lanes.

2. Improved sector Effective sector institution Achieved

management framework set and RCD TA provided support to RCD and
redefined with adequate BSRDC to set effective sector
powers for managing 11,000 institution framework for managing
km of state highways more than 11,000 km of state
highways.

Project delay reduced by 50% Achieved

All project works were completed
without any major delay (less than
50%), under two civil works
contracts.

Achieved
Annual maintenance costs per The RCD has introduced OPRMC
maintainable roads reduced by and is also considering the OMT
10% model for road maintenance. The
proactive measure taken by RCD
are likely to reduce the
maintenance costs per
maintainable road by more
than10%

Full utilization of allocated Achieved

funds In recent years, the RCD made full
utilization of the funds for
development and maintenance
allocated by the GOB.
ADB = Asian Development Bank; GOB = Government of Bihar; FY = Financial Year, IDC = interest during construction,
IRI = international roughness index; RCD = Road Construction Department, TA = technical assistance; OPRMC = output
and performance-based road assets maintenance contract; OMT= operate-maintain-transfer.
Source: The ADB project completion review mission.
14 Appendix 2

SUMMARY OF SALIENT FEATURES OF THE PROJECT

Box&
State Actual Major Minor Pipe slab
Highway Length bridge bridge culvert culvert
Road Name (km) (no.) (no.) (no.) (no.)
SH-68 Sheogunj–Baidrabad 83.05 1 4 179 49

SH-69 Dumaria–Ranitalab 154.16 3 5 364 93

SH-70 Gaya–Rjauli 58.30 - - 156 18

85.20 1
SH-71 Jehanabad–Parwatipur 4 241 82
88.00 -
SH-73 Siwan–Shitalpur 3 39 44
85.16 -
SH-74 Hajipur–Aseraj 3 99 33
46.72 -
SH-75 Arbhanga–Madhwapur 5 4 45
121.67 4
SH-76 Araia–Bhaptiyahi 9 111 34
102.88 -
SH-77 Krsela–Forbesgunj 9 46 51
Total 825.14 9 42 1,239 449
SH = state highway, km = kilometer, no. = number
Source: Asian Development Bank Project Completion review mission.
 Appendix 3 15

PROJECT COST AT APPRAISAL AND ACTUAL

Table A3.1: Project Costs

($ million)
Appraisal Estimate Actual
Foreign Local Total Foreign Local Total
Item
Exchange Currency Cost Exchange Currency Cost
A. Resettlement and Rehabilitation 1.6 1.6 1.7 1.7
B. Civil Works
1. SH-68 Sheogunj–Baidrabad 19.9 9.4 29.3 27.1 12.9 40.2
2. SH-69 Dumaria–Ranitalab 40.2 18.9 59.1 44.6 21.0 65.5
3. SH-70 Gaya–Rjauli 13.4 6.3 19.7 14.8 6.9 21.7
4. SH-71 Jehanabad–Parwatipur 22.6 10.6 33.2 25.0 11.7 36.7
5. SH-73 Siwan–Shitalpur 30.5 14.3 44.8 32.9 15.4 48.3
6. SH-74 Hajipur–Aseraj 28.8 13.6 42.4 32.3 15.2 47.5
7. SH-75 Arbhanga–Madhwapur 18.4 8.7 27.1 23.6 11.1 34.7
8. SH-76 Araia–Bhaptiyahi 49.2 23.2 72.4 46.0 21.7 67.7
9. SH-77 Krsela–Forbesgunj 43.2 20.3 63.5 38.3 18.0 56.2
Subtotal (B) 266.2 125.3 391.5 284.6 134.0 418.6
C. Consulting Services 4.0 9.0 13.0 3.4 7.6 11.0
D. Project Management 3.0 3.0 - 8.6 8.6
E. Institutional Development (Equipment) 4.0 - 4.0 - - -
Subtotal (A+B+C+D+E) 274.2 137.3 411.5 286.2 153.7 439.9
F. Contingencies
a a a
1. Physical 13.3 6.3 19.6
a a a
2. Price 3.7 14.5 18.2
G. Interest During Construction 17.8 17.8 9.3 - 9.3
H. Commitment Charges 1.0 1.0 1.4 - 1.4
Total 310.0 158.0 468.0 296.8 153.7 450.6
SH = State Highway
a
Included in civil works.
Source: ADB loan financial information system and the project management unit.
16 Appendix 4

PROJECT COST BY FINANCIER

Table A4.1: Project Cost by Financier

($ million)
At Appraisal Actual
Total
Source Cost % of Total Total Cost % of Total
Asian Development
420.0 89.7% 351.5 78.0%
Bank
Government 48.0 10.3% 99.1 22.0%
Total 468.0 100.0% 450.6 100.0%
Source: ADB loan financial information system and the project management unit.

Table A4.2: Project Cost at Completion by Financier and Component

($ million)
ADB Government
% of Cost % of Cost Total
Item Amount Category Amount Category Cost
Resettlement and
A. Rehabilitation 1.7 100.0% 1.7
B. Civil Works 343.5 82.6% 75.1 17.9% 418.6
C. Consulting Services 8.0 72.4% 3.0 27.6% 11.0
D. Project Management 8.6 100.0% 8.6
E. Institutional Development
(Equipment)
Subtotal (A+B+C+D+E) 351.5 79.9% 88.4 20.1% 439.9
F. Contingencies a
G. Interest During Construction 9.3 100.0% 9.3
H. Commitment Charges 1.4 100.0% 1.4
Total 351.5 78.0% 99.0 22.0% 450.6
ADB = Asian Development Bank
a
Contingencies are included in civil works during implementation.
Source: ADB loan financial information system and the Project Management Unit.
 Appendix 5 17

DISBURSEMENT OF ADB LOAN PROCEEDS

Table A5: Annual and Cumulative Disbursement of ADB Loan Proceeds

($ million)
Annual Disbursement Cumulative Disbursement
year Amount % of Total Amount % of Total
2009 60.9 17.3% 60.9 17.3%
2010 114.6 32.6% 175.5 49.9%
2011 125.3 35.6% 300.8 85.6%
2012 50.8 14.4% 351.5 100.0%
Total 351.5
ADB = Asian Development Bank.
Source: ADB loan financial information system

Figure A5: Annual and Cumulative Disbursement of ADB Loan Proceeds

($ million)

ADB = Asian Development Bank.

Source: ADB loan financial information system
18 Appendix 6

APPRAISAL AND ACTUAL IMPLEMENTATION SCHEDULES COMPARED

Q = Quarter
Source: Asian Development Bank Project Completion review mission.
 Appendix 7 19

CHRONOLOGY OF MAIN EVENTS

Date Main Event

2007
5–7 & 22–27 November ADB project fact-finding mission
10 November ADB approval of advance procurement and retroactive financing
to the project
2008
28 March Management review meeting
6–13 May 2008 ADB project appraisal mission
13 June ADB staff review committee meeting
19 August Loan negotiation
27 August RRP Board circulation
18 September Board consideration and approval of the loan
18 September TA Approval
10 November Signing of the loan agreement
22 November Contract signing for the civil works contract package 6 (SH-74)
24 November Contract signing for the civil works contract package 4 (SH-71)
24–28 November Loan Inception Mission
25 November Contract signing with the civil works contract package 8 (SH-76)
and package 9 (SH-77)
5 December Contract signing with the construction supervision consultants
19 December Contract signing for the civil works contract package 3 (SH-70)
30 December Contract signing for the civil works contract package 2 (SH-69)
2009
8 January Loan effectiveness
20 March First loan disbursement
30 June Contract signing with the TA consultant
3 July Contract signing for the civil works contract package 5 (SH-73)
9 July Contract signing for the civil works contract package 7 (SH-75)
15 July Contract signing for the civil works contract package 1 (SH-68)
19 July Mobilization of the TA consultants
31 August–4 September ADB TA inception mission
7–10 December ADB project review mission
2010
13–17 December ADB project review mission
2011
16–20 May ADB project review mission
30 June Completion of civil works contract package 4 and 6
18–20 August ADB Special loan administration mission
30 November Completion of civil works contract package 3
14 December Loan delegation to ADB’s India Resident Mission
20 Appendix 7

Date Main Event

31 December Completion of civil works contract package 8 and 9
2012
30–31 January ADB project consultation mission
31 January Completion of civil works contract package 5
31 March Completion of civil works contract package 7
4 June Partial loan cancellation of $68.48 million
4 June Loan proceeds reallocation
18–21 July ADB project review mission
31 July Loan closing
14–19 October ADB project safeguard review mission
23 November Last loan disbursement
2013
28 January Financial account closing of the loan
2016
Substantial completion of civil works contract package 1 and 2
13 March
(SH68 and SH 69)
2017
20–24 November ADB project completion review mission
ADB = Asian Development Bank, RRP = report and recommendation of the President, TA = technical assistance.
Source: ADB project completion mission
 Appendix 8 21

TECHNICAL ASSISTANCE COMPLETION REPORT

TA Number, Country and Name: Amount Approved

TA 7130-IND: Institutional Strengthening of the Original: $1,000,000
Bihar Road Sector Revised: -
Executing Source of Funding TA Amount Undisbursed TA Amount
Agencies: ADB TA funding program $52,016 Utilized
Road Construction $947,984
Department,
Government of Bihar
TA Approval TA Signing Fielding of First TA Closing Date:
Date: Date: Consultants: Original: 31/08/2009 Actual: 30/06/2011
18/09/2008 30/06/2009 19/07/2009 Account Closing Date:
Original: Actual: 23/12/2011

Description
The Asian Development Bank (ADB) approved Technical Assistance (TA) to support the road
sector development initiatives of the Government of Bihar (GOB), with $1,000,000 financing from
the ADB TA funding program. The TA aimed to (i) redefine and restructure the Road Construction
Department (RCD) to a state-of-the-art road agency and (ii) implement new business procedures
and provide training to RCD officials to enable the RCD to restructure and adopt a new
institutional and management structure. New business procedures would cover (i) procurement
and contracting processes, (ii) planning processes, (iii) quality assurance systems, (iv)
engineering (pavement design, maintenance methods, and safety), and (v) human resource
management.

Expected Impact, Outcome, and Outputs.

The TA supported the project’s anticipated impact to increase economic growth in Bihar and the
anticipated outcome of enhanced road transport efficiency and safety in Bihar. The TA was
aligned with project outputs to improve sector management. It was expected that the TA
consultants would undertake the services in close consultation with the principal secretary and
engineer-in-chief of the RCD, conduct district and state training and workshops as required, and
would consult with all RCD divisions to disseminate the concepts of the sector development
initiative.

Delivery of Inputs and Conduct of Activities.

As planned, an international consulting firm was recruited in accordance with ADB Guidelines
on the Use of Consultants (2007, as amended from time to time). The contract was signed on
30 June 2009 and the consultants mobilized on 19 July 2009. During implementation, the
consultant team, comprising eight international consultants, carried out the tasks specified in the
terms of reference (TOR), mainly to review and analyze (i) the existing institutional structure of
the RCD, (ii) existing and draft laws and acts, and (iii) new business procedures and training
needs. During implementation, the TA identified further areas for capacity building and training
inputs. Approved by ADB, the TA tasks were amended by adding (i) organizing two overseas
study tours, and (ii) designing, developing, and delivering a pilot road management system
(RMS). Accordingly, the consultant team was strengthened by adding more expertise and
reallocating the person-months. The TA closing date was extended twice from, originally, 31
August 2009 to 31 December 2010 and to 30 June 2011. During implementation, the consultant
team prepared and submitted the inception report in August 2009, the interim report in November
2009. Significant numbers of milestone reports, technical reports, and working papers were
prepared and submitted to the RCD and ADB. Accordingly, workshops were organized at each
stage of the TA implementation to discuss and disseminate the project outputs. In addition to
international and in-country study tours, extensive training programs and workshops and
22 Appendix 8

seminars were conducted to discuss and disseminate the TA outputs. Upon completion, the
consultants submitted a final report. The performance of the consultants was rated satisfactory
by the government and ADB. The RCD through the Bihar State Development Corporation
(BSRDC) supported the TA activities and regularly monitored the consultant’s progress.
BSRDC’s supervision was satisfactory.

Evaluation of Outputs and Achievement of Outcome

The TA consulting team closely worked with the newly formed BSRDC and reviewed the existing
institutional and organizational framework of the RCD, draft laws and acts, new business
procedures, and training needs. The TA concluded that the state needed to design and develop
a comprehensive road policy and the capacity of sector agencies needed to be raised while
reallocating assets among the various road sector agencies. The TA studied the existing
business and technical issues, like contract management, road planning, and quality assurance,
then proposed that the RCD should adopt performance-based maintenance, designed and
delivered a pilot road management system (RMS), and recommended a plan for improving the
quality management. After examining the legislation framework of the RDC, the TA prepared a
working paper containing a draft Road Administration Act. Advanced knowledge and practice in
road safety were introduced to the BSRDC and RCD staff, and a draft road safety policy was
prepared and delivered. The TA organized overseas and in-country study tours and provided
substantial training in various aspects of road development and management, as well as
proposed a plan for human resources development of the RCD. A total of 20 people participated
in the overseas study tours to Canada and Australia. The in-country study tours visited Pune and
Madhya Pradesh to learn the practice of and experience in road development and management.
The pilot RMS assisted in understanding the need for maintaining a road database to assist in
decision-making, prioritizing road maintenance works and updating asset records regularly. The
pilot RMS has been delivered to the RMS Unit of the RCD. By the end of the TA, the equipment
procured was transferred to the RCD.

Based on above studies, activities, and study tours, the TA provided substantial
recommendations on road development and management in Bihar. The project completion
review mission was informed that the Road Administration Act is under review, the Road Safety
Policy is being implemented, performance-based road maintenance is now applied in the state,
and the pilot Road Maintenance System is fully functioning and being expanded to include more
functions. The TA deliverables have been useful in the formulation of polices, development
programs and monitoring systems Overall, the TA has contributed substantially to the
institutional strengthening of the road transport sector in Bihar.

Overall Assessment and Rating

The TA was relevant to the GOB for strengthening institutional development in the road sector
of Bihar. TA had provided useful reports /recommendations and was rated efficient for
implementation of all the tasks specified in the terms of reference. The TA is rated effective as it
had provided considerable support to deliver the project’s outcome and outputs and the TA’s
support and achievements were well recognized by the government. Overall the TA is rated
successful.

Major Lessons
The TA was successful due to (i) strong commitment and support from related government
agencies and (ii) the close coordination between the consultant’s team and the government’s
technical team for the effective delivery of envisaged outputs.

Recommendation and Follow-Up Actions

The TA provided substantial recommendations for various aspects. The RCD should review and
implement suitable recommendations as appropriate. While continuing the policy dialogue with
the government and assisting institutional development, institutional development efforts initiated
during the TA were carried forward under subsequent technical assistance provided by ADB.
 Appendix 8 23

This will further enhance the technical capacity of the state government agencies in the transport
sector in Bihar.
ADB = Asian Development Bank, BSRDC = Bihar State Road Development Corporation, GOB = government of Bihar,
MIS = management information system, PCR = Project Completion Report, RCD = Road Construction Department of
GOB, RMS = road management system. TA = technical assistance, TOR = terms of reference.

Prepared by: Designation and Division:

Prabhasha Sahu Senior Project Officer (Transport), SARD

In preparing any country program or strategy, financing any project, or by making any designation
of or reference to a particular territory or geographic area in this document, the Asian Development
Bank does not intend to make any judgments as to the legal or other status of any territory or area.
24 Appendix 9

STATUS OF COMPLIANCE WITH LOAN COVENANTS

Reference
in Loan
/ Project
Covenant Agreement Status of Compliance
Implementation Arrangements
The State, as the Project Executing LA, Complied with.
Agency, shall be responsible for overall Sch. 5
implementation of the Project, and shall Para. 1
perform, or cause to be performed, its
obligations as set forth herein and in the
Project Agreement through the RCD.
The State shall establish a Project LA, Complied with.
management unit at the headquarters of Sch. 5
RCD, headed by a chief engineer, to Para. 2
administer, coordinate, and monitor all
Project activities. The State shall also
establish five Project implementation units,
each responsible for one or two Project
roads. The State shall appoint full-time
Project managers to head the Project
implementation units, and delegate
adequate technical and administrative
authority to them to ensure expeditious
implementation of the Project.
The State shall designate at least one LA, Complied with.
officer in the Project management unit to Sch. 5 The BSRDC designated an officer in
supervise the implementation of the EMPs Para. 3 each of the PIU to supervise the
and RPs. The State shall also ensure that implementation of the EMPs and RPs.
its construction supervision consultants act The construction supervision
as the engineer for the purposes of the consultants were assigned the power of
civil works contracts. engineer in accordance with Fédération
Internationale des Ingénieurs-Conseils
(FIDIC) condition of contracts.
The Borrower and the State shall ensure LA, Complied with.
that all contracts financed by ADB in Sch. 5 The contracts financed by ADB
connection with the Project shall include Para. 4 included provisions specifying the right
provisions specifying the right of ADB to of ADB to review and examine the
review and examine the records and records and accounts.
accounts of the Borrower, the State, and
all contractors, suppliers, consultants, and
other service providers as they relate to
the Project. The Borrower and the State
shall allow and assist ADB's
representatives to carry out random spot
checks on the work in progress and
utilization of funds for the Project.
The State shall (i) standardize bidding LA, Complied with.
documents and endeavor to undertake e- Sch. 5 The state (i) is following standardized
procurement for select contracts; (ii) Para. 5 bidding documents and e-procurement;
strictly monitor work progress through the (ii) monitored work progress through
newly-established supervision and the BSRDC; (iii) disclosed project
monitoring wing; (iii) disclose targets, progress on BSRDC’s website; (iv)
 Appendix 9 25

Reference
in Loan
/ Project
Covenant Agreement Status of Compliance
progress, and achievements to the public outsourcing maintenance works to the
on its website and in the local private sector; (v) facilitated deputation
newspapers; (iv) outsource maintenance of accounting officers in the field offices
works to the private sector; (v) facilitate from accountant general’s office to
deputation of accounting officers in the ensure appropriate recording of
field offices from accountant general’s financial matters; (vi) established
office to ensure appropriate recording of mobile quality control squads in all
financial matters; (vi) establish mobile district offices; (vii) adequately
quality control squads in all district offices equipped its central and regional quality
and introduce third-party quality control control laboratories with laboratory
system; (vii) set up equipment bank and equipment; survey; initiated simplified
simplified contractor registration rules; and contractor registration rules and (viii)
(viii) implement FIDIC-based contract implemented FIDIC-based contract
management. management.
Road Maintenance
The Borrower and the State shall ensure LA, Complied with.
that adequate and timely funding is Sch. 5 The roads are maintained under the
provided for maintenance of the Project Para. 6 Operation and Maintenance Policy of
roads. the state. The State is providing
adequate and funding for maintenance
of the project roads.
The State shall provide adequate funds LA, Complied with.
under the non-plan budget for road Sch. 5 The road is maintained by the
maintenance during implementation of Para. 7 contractor during and after
the Project and also after its completion. implementation up to the end of defect
liability period. Post-completion the
road is maintained under the
Operation and Maintenance Policy of
the state.
Counterpart Funding
The Borrower shall ensure that the State LA, Complied with.
provides the timely and adequate Sch. 5
counterpart funds and facilities for the Para. 8
Project, including the funds needed for
implementing the EMPs and RPs, and
any cost overruns in respect thereof.
Institutional Strengthening
The State shall implement the institutional LA, Complied with.
strengthening action plan as set out in Sch. 5 The project and associated TA have
Appendix 3 of the RRP utilizing the Para. 9 supported intuitional strengthening
recommendations of ADB’s technical action plan. TA recommendations
assistance for Institutional Strengthening have been substantially implemented.
of the Bihar Road Sector during the
Project implementation period.
Environment
The State shall ensure that: LA, Complied with.
(i) the Project is designed, constructed, Sch. 5 (i) The project was designed,
operated, and maintained in Para. 10 constructed, operated, and
accordance with the environmental maintained in accordance with the
laws and regulations of the Borrower environmental laws and regulations
26 Appendix 9

Reference
in Loan
/ Project
Covenant Agreement Status of Compliance
and ADB’s Environment Policy (2002); of the government and ADB’s
Environment Policy.
(ii) the EMPs and the mitigation (ii) The EMPs and the mitigation
measures included therein, as measures were properly
specified in the IEEs, are properly implemented.
implemented;
(iii) the EMPs are incorporated into the (iii) The EMPs were incorporated into
bidding documents and civil works the bidding documents and civil
contracts, and are updated, if works contracts.
necessary, in the course of Project
implementation with prior approval of
ADB; (iv) Project contractors either obtained
(iv) all environmental permits, licenses, or completed the process of
and clearances are obtained in a obtaining requisites clearances
timely manner prior to the prior to the commencement of civil
commencement of civil works in the works in the relevant section of the
relevant section of the Project roads; Project roads.
(v) any adverse impact on the (v) Any adverse impact on the
environment that may arise from the environment was promptly
Project implementation is promptly mitigated or minimized in
mitigated or minimized in accordance accordance with the EMPs.
with the EMPs;
(vi)implementation of the EMPs, including (vi) Implementation of the EMPs was
any safety breaches, violation of reported semi-annually to ADB.
environmental standards, and Reports and information were
corrective measures taken in respect provided to ADB on request. Ten
thereof are reported semi-annually to environmental monitoring reports
ADB; and are disclosed on the ADB website.

(vii) reports and information are (vii) Complied with.

provided to ADB on request to enable
it to verify that the Goods, Works, and
consulting services financed out of the
proceeds of the Loan, have been
produced in a responsible manner
with a view to resource efficiency,
waste minimization, and other
environmental considerations.
The State shall report any change in the LA, Complied with.
alignment of any Project road to ADB, so Sch. 5
as to determine if additional Para. 11
environmental assessment study is
necessary.
Resettlement
The State shall ensure that: LA, Complied with.
(i) the Project is implemented in Sch. 5 (i) The project was implemented in
accordance with the Borrower's Para. 12 accordance with the government's
National Rehabilitation and policy and ADB’s policy on
Resettlement Policy 2007, the State's involuntary resettlement. No land
Bihar Land Acquisition Resettlement & acquisition occurred for the project.
 Appendix 9 27

Reference
in Loan
/ Project
Covenant Agreement Status of Compliance
Rehabilitation Policy 2007, ADB's
Involuntary Resettlement Policy 1995,
and Indigenous People's Policy 1998,
and the RPs;
(ii) all affected people are given adequate (ii) All affected people were given
opportunity to participate in adequate opportunity to participate
resettlement planning and in resettlement planning and
implementation; implementation;
(iii) the RPs are disclosed to the (iii) RPs were disclosed on ADB and
affected people, who are EA’s website and compensation
compensated and assisted prior to was paid prior to displacement of
displacement from their houses, land, affected people.
and assets, before the
commencement of civil works in the
relevant section of the Project roads;
(iv) affected people receive priority for (iv) Affected people received priority
wage employment in Project for wage employment in project
construction; construction.
(v) additional assistance is provided for (v) Additional assistance was provided
vulnerable groups; for vulnerable groups.
(vi) RPs are updated, if necessary, in (vi) Nine updated RPs were approved
the course of Project implementation, by ADB and were uploaded on the
disclosed to affected people, and ADB and EA websites
submitted to ADB for approval and
disclosure on its website;
(vii) civil works contracts under the (vii) The civil works contracts under
Project include requirements to the project included requirements
comply with the RPs; to comply with the RPs.
(viii) implementation of the RPs is (viii) Implementation of the RPs was
monitored (a) internally by the Project monitored internally by the PIU and
implementation units and reported externally by an expert under
monthly to the Project management construction supervision consultant
unit who shall report the results who reported directly to ADB as
quarterly to ADB, and (b) required
independently by an expert under
construction supervision consultant
and reported biannually directly to
ADB;
(ix) affected people have an (ix) Grievance mechanism was in
opportunity to express grievance at place. The affected people were
appropriate levels, and that local given the opportunity to express
officials are instructed to resolve grievance at appropriate levels. No
disputes and implement measures major grievance case was reported.
promptly.

HIV/AIDS, Human Trafficking, and Child Labor

The State shall conduct awareness LA, Complied with.
program in respect of HIV/AIDS and Sch. 5
Human Trafficking and child labor at the Para. 13
Project areas for which the State may
28 Appendix 9

Reference
in Loan
/ Project
Covenant Agreement Status of Compliance
engage an agency/nongovernment
organization. The State shall ensure that
the civil works contracts under the Project
incorporate provisions to the effect that the
contractor is required to (i) carry out
HIV/AIDS awareness programs for labor;
(ii) disseminate information at worksites on
risks of sexually transmitted diseases and
HIV/AIDS as part of health and safety
measures for those employed during
construction; and (iii) follow and implement
all statutory provisions on labor (including
equal pay for equal work and non-
employment of child labor), health, safety,
welfare, sanitation, and working
conditions. The State shall ensure that the
civil works contract also provide for
termination of the contracts by the State in
case of breach of any of the said
provisions by the contractors.
Reporting
The State shall prepare quarterly LA, Complied with.
progress reports, which will cover Sch. 5 The project progress reports were
changes, if any, to the implementation Para. 14 prepared as required and submitted to
schedule; problems or difficulties ADB on a timely basis.
encountered, and remedial actions taken;
anticipated problems and the proposed
remedial measures; work proposed to be
undertaken in the following period. The
State shall submit the quarterly progress
reports to ADB within 45 days from close
of each quarter.
Within three (3) months of physical LA, Partially complied with.
completion of each Project road, the Sch. 5 Project completion reports for each
State shall prepare a Project road Para. 15 project road were prepared, but the
completion report, and within three (3) reports were limited to engineering
months of completion of the overall aspects.
Project, a Project completion report. The
State shall ensure that these reports
include a detailed evaluation of each
Project road and the overall Project,
respectively, covering design; costs;
contractors’ and consultants’
performance; social and economic
impact; economic rate of return; and
other details relating to the Project as
ADB may request.
Project Performance Monitoring and Evaluation
Within three (3) months of the date of the LA, Not complied with.
Loan Agreement, the State shall develop Sch. 5 Project performance was closely
 Appendix 9 29

Reference
in Loan
/ Project
Covenant Agreement Status of Compliance
a systematic Project performance Para. 16 monitored, and progress reports were
monitoring system, in a form and prepared. However, a systematic
substance acceptable to ADB. project performance monitoring system
(PPMS) was not developed.
Within three (3) months of the Effective LA, Partially complied with.
Date, the State shall establish a baseline Sch. 5 At completion, baseline and
for performance indicators, which shall be Para. 17 intermediate baseline data, were
used for monitoring the implementation of collected and project benefits and
each Project road, and thereafter conduct performance were evaluated according
annual surveys in accordance with the to the project framework.
Project performance monitoring system
for each Project road to evaluate the
scope, implementation arrangements,
progress and achievements of the
Project.
Project Review
ADB and the State shall meet regularly LA, Partially complied with.
as necessary to discuss the progress of Sch. 5 During implementation, ADB
the Project and any changes to Para. 18 conducted 10 review missions
implementation arrangements or remedial including inception and special project
measures required to be undertaken. administration. All aspects of the
ADB and the State shall also undertake a project were comprehensively covered
mid-term review of the Project, which will during these Mission and a separate
focus on issues relating to midterm review Mission was not
implementation arrangements, and on fielded.
changes, if any, needed to achieve the
objectives of the Project.
Others
(a) The Borrower shall cause the LA, Complied with.
State to carry out the Project with due Article IV
diligence and efficiency and in conformity Para.
with sound administrative, financial, 4.01
engineering, environmental and state
road development practices.
(b) In the carrying out of the Project
and operation of the Project facilities, the
Borrower shall perform its obligations,
and cause to be performed all obligations
of the State, as set forth in Schedule 5 to
this Loan Agreement and the Project
Agreement.
The Borrower shall make available to the LA, Compiled with.
State, promptly as needed, the funds, Article IV
facilities, services and other resources Para.
which are required, in addition to the 4.02
proceeds of the Loan, for the carrying out
of the Project.
The Borrower shall ensure that the LA, Complied with.
activities of its departments and agencies Article IV
with respect to the carrying out of the Para.
30 Appendix 9

Reference
in Loan
/ Project
Covenant Agreement Status of Compliance
Project and operation of the Project 4.03
facilities are conducted and coordinated in
accordance with sound administrative
policies and procedures.
The Borrower shall take all action which LA, Complied with.
shall be necessary on its part to enable Article IV
the State to perform its obligations under Para.
the Project Agreement and shall not take 4.04
or permit any action which would interfere
with the performance of such obligations.
Particular Covenants in Project Agreement
The State shall carry out the Project with PA, Complied with.
due diligence and efficiency, and in Article II The project was implemented with due
conformity with sound administrative, Section diligence and efficiency.
financial, engineering, environmental, and 2.01(a)
state road development practices.
In the carrying out of the Project and PA, Complied with.
operation of the Project facilities, the Article II The state government performed all
State shall perform all obligations set Section obligations set forth in the loan
forth in the Loan Agreement to the extent 2.01(b) agreement.
that they are applicable to the State.
The State shall make available, promptly PA, Complied with.
as needed, the funds, facilities, services, Article II During implementation, the state
equipment, land, and other resources Section government made available the
which are required, in addition to the 2.02 counterpart fund, facilities, land, and
proceeds of the Loan, for the carrying out other resources required by the
of the Project. project.

In the carrying out of the Project, the PA, Complied with.

State shall employ competent and Article II
qualified consultants and contractors, Section
acceptable to ADB, to an extent and upon 2.03(a)
terms and conditions satisfactory to ADB.
Except as ADB may otherwise agree, all PA, Complied with.
Goods, Works and consulting services to Article II
be financed out of the proceeds of the Section
Loan shall be procured in accordance 2.03(b)
with the provisions of Schedule 4 to the
Loan Agreement. ADB may refuse to
finance a contract where Goods, Works
or consulting services have not been
procured under procedures substantially
in accordance with those agreed between
the Borrower and ADB or where the
terms and conditions of the contract are
not satisfactory to ADB.
The State shall carry out the Project in PA, Complied with.
accordance with plans, design standards, Article II During implementation, the project was
specifications, work schedules and Section carried out in accordance with plans,
construction methods as agreed with 2.04 design standards, specifications, work
 Appendix 9 31

Reference
in Loan
/ Project
Covenant Agreement Status of Compliance
ADB. The State shall furnish, or cause to schedules and construction methods
be furnished, to ADB, promptly after their as agreed with ADB.
preparation, such plans, design
standards, specifications and work
schedules, and any material
modifications subsequently made therein,
in such detail as ADB shall reasonably
request.
The State shall take out and maintain PA, Complied with.
with responsible insurers, or make other Article II
arrangements satisfactory to ADB for, Section
insurance of the Project facilities to such 2.05(a)
extent and against such risks and in such
amounts as shall be consistent with
sound practice.
Without limiting the generality of the PA, Complied with.
foregoing, the State undertakes to Article II
insure, or cause to be insured, the Goods Section
to be imported for the Project and to be 2.05(b)
financed out of the proceeds of the Loan
against hazards incident to the
acquisition, transportation and delivery
thereof to the place of use or installation,
and for such insurance any indemnity
shall be payable in a currency freely
usable to replace or repair such Goods.
The State shall maintain, or cause to be PA, Complied with
maintained, records and accounts Article II
adequate to identify the Goods, Works Section
and consulting services financed out of 2.06
the proceeds of the Loan, to disclose the
use thereof in the Project, to record the
progress of the Project (including the cost
thereof) and to reflect, in accordance with
consistently maintained sound accounting
principles, its operations and financial
condition.

ADB and the State shall cooperate fully to PA, Complied with
ensure that the purposes of the Loan will Article II
be accomplished. Section
2.07(a)
The State shall promptly inform ADB, PA, Complied with
under intimation to the Borrower, of any Article II
condition which interferes with, or Section
threatens to interfere with, the progress of 2.07(b)
the Project, the performance of its
obligations under this Project Agreement,
or the accomplishment of the purposes of
the Loan.
32 Appendix 9

Reference
in Loan
/ Project
Covenant Agreement Status of Compliance
ADB and the State shall from time to PA, Complied with.
time, at the request of either party, Article II
exchange views through their Section
representatives with regard to any 2.07(c)
matters relating to the Project, the State
and the Loan.
The State shall furnish to ADB all such PA, Complied with
reports and information as ADB shall Article II
reasonably request concerning (i) the Section
Loan and the expenditure of the proceeds 2.08(a)
thereof; (ii) the Goods, Works and
consulting services financed out of such
proceeds; (iii) the Project; (iv) the
administration, operations and financial
condition of the State; and (v) any other
matters relating to the purposes of the
Loan.
Without limiting the generality of the PA, Complied with
foregoing, the State shall furnish to ADB Article II
quarterly reports on the execution of the Section
Project and on the operation and 2.08(b)
management of the Project facilities.
Such reports shall be submitted in such
form and in such detail and within such a
period as ADB shall reasonably request,
and shall indicate, among other things,
progress made and problems
encountered during the quarter under
review, steps taken or proposed to be
taken to remedy these problems, and
proposed program of activities and
expected progress during the following
quarter.
Promptly after physical completion of the PA, Complied with.
Project, but in any event not later than Article II
three (3) months thereafter or such later Section
date as ADB may agree for this purpose, 2.08(c)
the State shall prepare and furnish to
ADB a report, in such form and in such
detail as ADB shall reasonably request,
on the execution and initial operation of
the Project, including its cost, the
performance by the State of its
obligations under this Project Agreement
and the accomplishment of the purposes
of the Loan.
The State shall (i) maintain separate PA, Complied with.
accounts for the Project, (ii) have such Article II The annual audited project financial
accounts and related financial statements Section statements for each fiscal year were
(balance sheet, statement of income and 2.09 submitted to ADB with minor delays.
 Appendix 9 33

Reference
in Loan
/ Project
Covenant Agreement Status of Compliance
expenses, and related statements) Audit opinions were unqualified and
audited annually, in accordance with acceptable to ADB.
appropriate auditing standards
consistently applied, by independent
auditors whose qualifications, experience
and terms of reference are acceptable to
ADB; and (iii) furnish to ADB, promptly
after their preparation but in any event not
later than 6 months after the close of the
fiscal year to which they relate, certified
copies of such audited accounts and
financial statements and the report of the
auditors relating thereto (including the
auditors' opinion on the use of the Loan
proceeds and compliance with the
covenants of the Loan Agreement as well
as on the use of the procedures for
statement of expenditures), all in the
English language. The State shall furnish
to ADB such further information
concerning such accounts and financial
statements and the audit thereof as ADB
shall from time to time reasonably
request.
The State shall enable ADB's PA, Complied with
representatives to inspect the Project, the Article II
Goods and Works financed out of the Section
proceeds of the Loan, and any relevant 2.10
records and documents.
The State shall, promptly as required, PA, Complied with
take all action within its powers to carry Article II
on its operations, and to acquire, Section
maintain and renew all rights, properties, 2.11(a)
powers, privileges and franchises which
are necessary in the carrying out of the
Project or in the conduct of its business.
The State shall execute and implement PA, Complied with.
the Project in accordance with sound Article II The project was implemented in
administrative, financial, environmental Section accordance with sound administrative,
and state road development practices, 2.11(b) financial, environmental and state road
and under the supervision of competent development practices, and under the
and experienced management and supervision of competent and
personnel. experienced management and
personnel.
The State shall at all times operate and PA, Complied with
maintain its plants, equipment and other Article II
property relevant to the Project, and from Section
time to time, promptly as needed, make 2.11(c)
all necessary repairs and renewals
thereof, all in accordance with sound
 34 Appendix 9

Reference
in Loan
/ Project
Covenant Agreement Status of Compliance
administrative, financial, engineering,
environmental, state road development,
and maintenance and operational
practices.
Except as ADB may otherwise agree, the PA, Complied with
State shall not sell, lease or otherwise Article II
dispose of any of its assets which shall Section
be required for the efficient carrying on of 2.12
its operations or the disposal of which
may prejudice its ability to perform
satisfactorily any of its obligations under
this Project Agreement.
Except as ADB may otherwise agree, the PA, Complied with.
State shall apply the proceeds of the Article II
Loan to the financing of expenditures on Section
the Project in accordance with the 2.13
provisions of the Loan Agreement and
this Project Agreement, and shall ensure
that all Goods, Works and consulting
services financed out of such proceeds
are used exclusively in the carrying out of
the Project.
ADB = Asian Development Bank; CMBD = construction-cum-maintenance bidding document; EMP = environment
management plan; IEE = initial environment examination; LA = loan agreement; NGO = nongovernment organization;
OPRMC = output and performance-based road asset maintenance contract; PA = project agreement, PMO = project
management office; PPMS = project performance monitoring system; RCD = Road Construction Department; RP =
resettlement plan.
Source: ADB project completion review mission.
 Appendix 10 35

SUMMARY OF CONTRACT PACKAGES

Contract Amount Actual Amount
Pack- Procure- Total ADB
age SH Length ment Contract Curre- Amount Financing
No. Contractor/ Consultant No. Road Name (km) Method Date ncy Amount (₹) ($)
Civil Works
1 M/s MBL Infrastructures 68 Sheogunj– 83.05 ICB 15/07/09 ₹ 1,685,277,650 1,956,412,513 16,061,644
Ltd. Baidrabad
2 M/s Gammon India Ltd. 69 Dumaria– 154.16 ICB 30/12/08 ₹ 3,135,042,580 3,187,457,754 28,697,202
Ranitalab
3 M/s Gammon India Ltd. 70 Gaya–Rjauli 58.30 ICB 19/12/08 ₹ 1,055,078,475 1,054,857,064 19,900,506

4 M/s C&C Construction 71 Jehanabad– 85.20 ICB 24/11/08 ₹ 1,595,713,280 1,785,300,000 38,782,355
Ltd. Parwatipur
5 GR Infra Projects - JKM 73 Siwan–Shitalpur 88.00 ICB 3/7/2009 ₹ 2,294,091,950 2,348,900,000 43,851,135
Projects (JV)
6 M/s C&C Construction 74 Hajipur–Aseraj 85.16 ICB 22/11/08 ₹ 2,254,228,105 2,312,200,000 46,261,704
Ltd.
7 M/s IVRCL 75 Arbhanga– 46.72 ICB 9/7/2009 ₹ 1,566,400,000 1,688,000,000 30,312,136
Infrastructures & Projects Madhwapur
Ltd.
8 M/s BSC - C&C JV 76 Araia– 121.67 ICB 25/11/08 ₹ 2,997,555,506 3,292,550,000 65,098,549
Bhaptiyahi
9 M/s BSC - C&C JV 77 Krsela– 102.88 ICB 25/11/08 ₹ 2,779,261,480 2,734,900,000 54,580,324
Forbesgunj
Construction supervision consultants
1 ICT-PIDC Construction QCBS 5/12/2008 ₹ 188,322,000 264,870,987 4,261,941
supervision for north
region $ 1,360,000 $ 384,778 384,778
2 Scott Wilson India Construction QCBS 5/12/2008 ₹ 154,642,000 283,300,363 3,327,722
supervision for south
a
region $ 650,000

ADB = Asian Development Bank, ICB = international competitive bidding, km = kilometer, QCBS = quality- and cost-based selection, SH = state highway, ₹ =
Indian rupee, $ = United States dollar.
a The dollar component was not utilized since no foreign expert was recruited under the contract.

Source: The ADB loan financial information system; the Project Management Office
36 Appendix 11

ECONOMIC REEVALUATION

1. The Asian Development Bank (ADB) project completion review (PCR) mission conducted
an economic reevaluation of the project using similar methodology as that at appraisal and the
updated data1. In the “without-project” scenario, it was assumed that original state of the roads would
be retained. The “with-project” scenario, state of roads are rehabilitated or upgraded so that vehicles
could drive at higher speeds with lower operating costs and reduced travel time. Economic benefits
were calculated by comparing the “with-project” and “without-project” scenarios. Consequently,
economic internal rate of return (EIRR) for the project was calculated and its sensitivities were tested.

A. Traffic Analysis

2. In 2015, an ADB technical assistance (TA) 2 was provided for the preparation of 20-year
road Master Plan for the development of highways in Bihar. The TA conducted extensive and
systematic traffic survey in the state, which included collection of the traffic data at 54 locations for 7
days or 3 days using uniform and robust methodology. The data at some locations was further
validated with the traffic data collected under a road network study funded by World Bank for Road
Construction Department (RCD) in 2014.3 The traffic data were collected by 14 vehicle types, which
were converted into annual average daily traffic (AADT). Based on traffic survey on project roads and
locations in close vicinity of projects roads, the average traffic on project roads was evaluated as
3,706 vehicles in 2015, which was less than projected traffic at appraisal (5,783 vehicles in 2015).4
The details of the traffic on each project road is in Table A11.1.

Table A11.1: Traffic on the Project Roads

(2015, vehicles, AADT)
Traffic Survey Large
Road Name Car Bus 2W 3W Trucks Tractor Total
location Truck
SH-68 Sheogunj–
Rafigunj 674 95 1275 477 384 259 108 3272
Baidrabad
SH-69 Dumaria–
Ranitalab Bankey 889 206 1470 184 127 374 440 3690

SH-70 Gaya–Rjauli Bandhua 567 198 1931 834 401 97 106 4134
SH-71 Jehanabad–
Patoriya 407 69 1009 101 61 150 131 1928
Parwatipur
SH-71 Jehanabad–
Parwatipur Tesua Bazar 292 64 1832 428 96 84 54 2850
SH-73 Siwan–
Durgauli 1453 201 1800 121 377 647 57 4656
Shitalpur
SH-73 Siwan–
Sarfara Road 624 115 3109 233 59 115 60 4315
Shitalpur
SH-74 Hajipur–Aseraj Ghataro 1536 332 3061 1195 899 641 183 7847
SH-75 Arbhanga–
Gorhtiya 360 9 1278 619 58 272 304 2900
Madhwapur
SH-76 Araia–
Dinapatti 481 83 1888 423 52 183 88 3198
Bhaptiyahi
SH-77 Krsela–
Forbesgunj Kala Balua 380 28 1059 353 113 684 87 2704
Weighted Average 756 142 1,614 406 254 368 164 3,706
Source: Final Report, ADB.2015. TA-8170: Road Master Plan for Bihar’s State Highway Development and ADB project
completion review mission.
2W = two wheeler, 3W = three wheeler

1
Economic evaluation at appraisal was presented for individual subprojects instead of whole project. PCR has undertaken
the economic reevaluation for whole project as all the subprojects are state highways with similar characteristics.
2
ADB.2015. TA-8170: Road Master Plan for Bihar’s State Highway Development.
3
Establishing a road inventory and condition data base for roads in state of Bihar.
4
At appraisal, the base year traffic (2006/07) was average 2,907 vehicles with the future growth rates of 7.67% and 6.52%
per year in 2007-2012 and 2013-2018 respectively.
 Appendix 11 37

Economic Growth Trend and Traffic Forecast

B.
3. The traffic growth trend and traffic forecast for Road Master Plan under TA w ere slightly
adjusted and used in the economic reevaluation of the project at completion. The traffic forecast is
based on state Gross Domestic Product (GDP) growth and elasticity of traffic. This method considers
not only the past growth of the major economic indicators but also the future perspective. During
2008-12, the state GDP and per capita income (PCI) increased at the rate of 9.3% and 8.3% per
annum respectively. The vehicular registration for 2008-12 indicates about 4.6% per annum increase
of growth rate. Regression analysis has been carried out by creating econometric models for
assessing the elasticity values using past vehicle registration data, and economic indicators such as
population and PCI for passenger vehicles and net state domestic project (NSDP) for freight vehicles.
These elasticity coefficients were considered with reduction of 5% in every subsequent five year block
for traffic growth rates projection. The elasticities for 2015 are 0.9 for bus, 1.5 for car, 1.8 for 2-wheeler
and 1.2 for Trucks. The traffic growth factors for each mode were averaged to derive a common
growth factor. Based on the moderated perspective elasticity values and the growth rates of projected
state income, the future average annual compound traffic growth rates by vehicle type have been
estimated. The traffic growth rates used in the economic reevaluation of the project at completion
are in Table A11.2.

Table A11.2: Traffic Growth Rates

(% per year)
Tractor+
year Car Bus 2W 3W Trucks Trailer
2016–2020 11.50% 6.90% 13.80% 9.20% 9.20% 3.80%
2021–2025 9.30% 5.60% 11.20% 7.40% 7.40% 3.10%
2026–2030 5.50% 4.50% 9.00% 5.00% 5.00% 2.50%
2021–2035 4.50% 2.50% 6.00% 4.00% 4.00% 1.50%
2036–2040 3.50% 2.50% 4.00% 2.00% 3.00% 1.00%
Source: Final Report, ADB.2015. TA-8170: Road Master Plan for Bihar’s State Highway Development and ADB project
completion review mission.
2W = two wheeler, 3W = three wheeler

Economic Costs
C.
4. The project costs comprised capital and maintenance costs. Comparing with the cost
estimation at appraisal, the actual project cost in $ equivalent was about 3.7% lower5. However, the
base cost in Rupees (for civil works, resettlement, consulting services and project management) was
higher due, prolonged construction period, price escalation, and increase in quantities of civil works.
The actual annual investment costs for the project and the national norms for maintenance were
used in the economic reevaluation. The costs for routine maintenance were estimated at ₹126,611
per kilometer-year for the state highways. According the general practice and the road conditions, it
was assumed that the routine maintenance cost would increase by 3% along with the road
deterioration. The periodical maintenance was assumed to take place in every 5 years mainly for
overlay of the project roads at the costs of ₹4,366 million per kilometer. All costs were estimated or
adjusted in 2017 prices. Similar to the methodology at appraisal, the financial capital and maintenance
costs were converted into economic costs by using the conversion factor of 0.90.

Economic Benefits
D.
5. Due to improvement of road conditions, the vehicles now drive at much faster speeds, from
average 30–35 km/hour before the project to 60–80 km/hour after the project, which has led to
substantial economic benefits in the project areas.6 Using similar methodology as that at appraisal,

5
During implementation there was significant depreciation in Indian Rupees
6
Based on survey, ADB-PCR mission during 20-24 November 2017.
38 Appendix 11

two types of economic benefits were captured for the project highways, including (i) savings in vehicle
operation cost (VOC), and (ii) savings in passenger travel time costs. The VOC savings were
recalculated using the unit VOC data by road roughness, which were adopted from similar projects in
the country and adjusted to 2017 prices.7 The VOC savings per vehicle-km were estimated at ₹1.7
for cars and vans, ₹6.0 for bus, ₹0.6 for two wheelers, ₹0.9 for three wheelers, ₹6.9 for light trucks,
₹10.3 for large trucks, and ₹2.6 for tractors. Passenger travel time cost savings were recalculated for
different types of passenger vehicles (car/van, two wheeler, three wheeler, and bus). The passenger
time cost was derived from the per capita income of Bihar State in 2015/16.8 This per capita income
was adjusted to 2017 prices by applying 5% annual increase. Other factors taken into account in
calculating passenger time cost savings included average vehicle loads, percentage of work-related
trips, time costs by different road users, and travel speeds for different types of passenger vehicles.
The benefit calculation results showed that the benefit distributions in 2017 were about 85% from
VOC savings and 15% from passenger time cost savings. In future years, the benefit from passenger
time cost increased fast along the traffic development and living standard improvement, which would
achieve 27% in 2035.

Economic Reevaluation and Sensitivity Test

E.
6. Based on the assumptions and parameters above, the EIRR was calculated for a period of
28 years (2009–2036), including 9 years for project implementation and 20 years for operation (with
some overlaps of construction and operation). The EIRR was calculated at 20.5% for the whole
project, which is lower than that estimated at appraisal (average 17.0%–48.7%). The EIRR is
relatively lower because of long implementation period; higher cost capital; and lower traffic volumes
on some project roads. The EIRR is above the ADB recommended discount rate of 12% at appraisal.
The project is therefore considered to be economically viable.

7. The EIRR was subjected to sensitivity analysis to test different scenarios of maintenance
costs and benefits. The sensitivity analysis results indicated that the project continued to be
economically viable for all scenarios. If a 20% maintenance cost increase would be combined with a
20% benefit reduction, the EIRR would be still 17.1% for the whole project. The sensitivity analysis
confirmed that the project has robust economic viability. The sensitivity analysis also showed that the
EIRR was more sensitive to changes in economic benefits. For this reason, the state government
needs to pay attention to the socioeconomic development of the project area, foster local transport
services, and increase incomes for rural road users. The results of the sensitivity analysis are the
following table.

Table A11.3: Sensitivity Test

Tests ENPV @12%
EIRR (%)
Case Maint. Cost Benefits (₹ million)
Base Case 20.5% 41,906.4
Changes (+/-) 10% 20.4% 41,204.4
20% 20.3% 40,502.4
10% 22.0% 50,640.0
20% 23.4% 59,373.5
-10% 19.0% 33,172.9
-20% 17.3% 24,439.3
10% -10% 18.9% 32,470.9
20% -20% 17.1% 23,035.3
595% 12.0%
Switching Point
-48% 12.0%
EIRR = economic internal rate of return, ENPV = economic net present value.
Source: The Asian Development Bank project completion review mission.

7
The international roughness index of the project roads was about 7.5–16 before the project and 3–4 at completion.
8
Government of Bihar, Finance Department Economic Survey 2016-17, Patna.
 Appendix 11 39

Table A11.4: Economic Reevaluation

(₹ million)
Costs Benefits Net Net
Time Present
year Capital Maintain Total VOC Total Benefit
Cost Value
2009 3,349.3 3,349.3 -3,349.3 -8,292.7
2010 6,556.5 6,556.5 -6,556.5 -14,494.3
2011 4,896.1 4,896.1 -4,896.1 -9,664.0
2012 1,409.7 26.1 1,435.8 1,828.9 493.0 2,321.9 886.1 1,561.7
2013 591.1 36.6 627.6 2,560.5 690.2 3,250.7 2,623.0 4,127.4
2014 812.0 73.1 885.2 2,633.6 709.9 3,343.6 2,458.4 3,453.9
2015 908.7 73.1 981.9 2,746.8 724.5 3,471.3 2,489.4 3,122.7
2016 211.2 94.0 305.2 3,006.5 801.7 3,808.2 3,503.0 3,923.4
2017 26.2 94.0 120.2 3,292.0 887.4 4,179.4 4,059.2 4,059.2
2018 96.8 96.8 3,606.1 1,031.7 4,637.8 4,540.9 4,054.4
2019 99.8 99.8 3,951.5 1,199.9 5,151.4 5,051.7 4,027.2
2020 3,929.1 94.0 4,023.1 4,331.7 1,396.0 5,727.7 1,704.6 1,213.3
2021 96.8 96.8 4,664.1 1,593.2 6,257.3 6,160.5 3,915.1
2022 99.8 99.8 5,023.0 1,818.7 6,841.6 6,741.9 3,825.5
2023 102.7 102.7 5,410.5 2,076.4 7,486.9 7,384.1 3,741.0
2024 105.8 105.8 5,829.0 2,371.0 8,200.1 8,094.2 3,661.4
2025 3,929.1 94.0 4,023.1 6,281.1 2,708.0 8,989.1 4,966.0 2,005.7
2026 96.8 96.8 6,618.3 2,943.8 9,562.1 9,465.2 3,413.3
2027 99.8 99.8 6,974.3 3,200.4 10,174.7 10,075.0 3,243.9
2028 102.7 102.7 7,350.4 3,479.6 10,830.0 10,727.2 3,083.8
2029 105.8 105.8 7,747.7 3,783.4 11,531.0 11,425.2 2,932.6
2030 3,929.1 94.0 4,023.1 8,167.5 4,113.9 12,281.3 8,258.2 1,892.6
2031 96.8 96.8 8,510.9 4,421.0 12,931.9 12,835.1 2,626.3
2032 99.8 99.8 8,869.5 4,751.5 13,620.9 13,521.2 2,470.3
2033 102.7 102.7 9,244.0 5,106.9 14,350.9 14,248.2 2,324.2
2034 105.8 105.8 9,635.1 5,489.4 15,124.5 15,018.7 2,187.4
2035 3,929.1 94.0 4,023.1 10,043.7 5,900.9 15,944.6 11,921.5 1,550.3
2036 96.8 96.8 10,470.5 6,343.7 16,814.1 16,717.3 1,941.0
Net Present Value (NPV): 41,906.4
Internal Rate of Return (EIRR): 20.5%
Discount Rate: 12%

EIRR = economic internal rate of return; ENPV = economic net present value; VOC = vehicle operating cost.
Source: The Asian Development Bank project completion review mission.