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Background

The government of India launched the Prime Minister’s Rural Roads Program (PMGSY) on December 2000 as a centrally sponsored scheme to provide all-weather access to unconnected eligible rural habitations.  By improving the connectivity of these habitations, the PMGSY hopes to accelerate agricultural and rural economic growth and thereby reduce poverty more rapidly and inclusively.  The program also aims to establish uniform technical and management standards and facilitate state-level rural road policy development to support the sustainable management of the rural roads network.

At government’s request, the Asian Development Bank (ADB) has supported PMGSY implementation initially through the $400 million Rural Roads Sector I Project, completed in June 2009; followed by the $750 million Rural Roads Sector II Investment Program, completed in June 2014; and the ongoing $800 million Rural Connectivity Investment Program (RCIP), a multitranche financing facility (MFF) comprising three tranches, approved in July 2012.

The RCIP covers five states: Assam, Chhattisgarh, Madhya Pradesh, Odisha, and West Bengal; and has two components: road infrastructure development, and institutional strengthening. Its envisaged long-term impacts are reduced poverty and deprivation, and inclusive socioeconomic growth. Its expected outcome is improved and sustainable accessibility of selected rural communities to markets, district headquarters, and centers of economic activity. 

This report covers tranche 2 of the RCIP, approved in November 2013 for a $275 million loan declared effective in March 2014.  At appraisal, the tranche project’s intended outputs were: (i) selected priority rural roads constructed to all-weather standard, (ii) quality of design of RCIP roads improved, (iii) maintenance of RCIP roads improved and rendered sustainable, (iv) road safety measures incorporated into the life cycle of the roads, and (vi) effective project management.

At completion, the project achieved 90% of its output targets and 100% of its outcome targets.  Against a target of 3,693, a total of 3,648.71 kilometers (km) of priority rural roads were constructed, benefiting 1,810 rural habitations.  But not all the completed roads corresponded to those identified at appraisal, as by the time the project became effective, construction of several sections had already been completed or were ongoing with funding from the government. Some also did not qualify as rural roads under the changed scope of the rural road network due to increased traffic volumes and heavy vehicle loads. Almost 15 packages were consequently dropped, affecting 15 roads (80 km); and 28 new packages (161 km) were added. New and environment-friendly construction technologies were introduced and use of local materials was encouraged.

All works contracts incorporated a 5-year performance-based maintenance contract.  As with project 1, the completed roads were compliant to a standardized detailed project report (DPR) template; however, the DPR provisions for customized planning and costing were not fully incorporated in the design and estimates due mainly to insufficient site investigations.  This resulted in discrepancies between cost estimates and actual expenditure in low-lying areas, leading to rebids, delays, and the dropping of packages. 

The rural road network management unit (RRNMU), piloted under project 1 in each program state, continued to assist the state rural road development agencies under project 2 in preparing estimates for operation and maintenance requirements.  The RRNMUs also supervised the operation and maintenance (O&M) of the project roads, 44% of the maintenance aspect of which was being undertaken by women, surpassing the 33% target.  Participation of the panchayati raj (local governance) institutions and village grievance redressal committees (GRCs) in O&M was however visibly lacking. Moreover, the role of the GRCs was limited to the construction phase, and their performance was inconsistent because of a lack of centralized monitoring and members’ weak capacities.

Road safety audits (RSAs), undertaken based on standardized checklists and improved accordingly, enhanced 44% of the road designs in the RRNMU districts and 22% in the existing road network.  Road safety measures emphasized the needs of vulnerable road users; however, as the scope was limited to sample roads, there may be outstanding issues outside the purview of the RSAs. Community programs promoting road safety awareness were organized, with a special focus on women and children. Road safety programs secured 43% female participation, exceeding the appraisal target of 30%. 

Because of better road conditions, an estimated 1,082,034 average daily vehicle km was recorded in the first full year of operation, exceeding the outcome target of 493,235. Average travel speeds increased from 10–15 km per hour to 25–30 km per hour. Road accessibility also increased to 12 months, without seasonal variations. The improved road access has enhanced the quality of life for 1,134,115 rural inhabitants.  Improved connectivity has also contributed to increased incomes for households engaged in farming, trade, transport, and other services, and greater access to health facilities, quality education, and other development schemes.

The project has also influenced the expansion and growth of women-centered traditional occupations and empowered women’s groups to demand increases in the value of products they are developing.  As with project 1, the tranche 2 project was executed by the Ministry of Rural Development (MORD) and the governments of the program states.  The state governments created their own project implementation units to take charge of day-to-day project activities.

Project Information
Project Name: 
Rural Connectivity Investment Program (Tranche 2)
Report Date: 
November, 2020
Main Sector: 
Country: 
Project Number: 
Report Type: 
Project/Modality: 
MFF
SDG: 
Goal 9: Industry, Innovation, and Infrastructure
Goal 8: Decent Work and Economic Growth
Loan Number: 
3065
Source of Funding: 
OCR
Date Approved: 
25 November 2013
Report Rating: 
Successful

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