The World Bank India Second Kerala State Transport Project (P130339) REPORT NO.: RES35845 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF INDIA SECOND KERALA STATE TRANSPORT PROJECT APPROVED ON MAY 14, 2013 TOREPUBLIC OF INDIA TRANSPORT SOUTH ASIA Regional Vice President: Hartwig Schafer Country Director: Junaid Kamal Ahmad Senior Global Practice Director: Guangzhe Chen Practice Manager/Manager: Shomik Raj Mehndiratta Task Team Leader: Arnab Bandyopadhyay The World Bank India Second Kerala State Transport Project (P130339) ABBREVIATIONS AND ACRONYMS DEA Department of Economic Affairs ECoPs Environmental Codes of Practice EIA Environment Impact Assessment EMF Environment Management Framework EMP Environmental Management Plan EPC Engineering Procurement and Construction GoK Government of Kerala KHRI Kerala Highway Research Institute KIIFB Kerala Infrastructure Investment Fund Board KSTP Kerala State Transport Project KSTP II India Second Kerala State Transport Project LSGD Local Self Government Department LSGI Local Self Government Institution NCRMP II National Cyclone Risk Mitigation Project II PDO Project Development Objective PIP Project Implementation Plan PIU Project Implementation Unit PMC Project Management Consultant PMU Project Management Unit PMGSY Pradhan Mantri Gram Sadak Yojana or Prime Minister’s Rural Roads Program PPP Public Private Partnership PWD Public Works Department RAP Resettlement Action Plan RFCTLAR&R Act Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013 RKI Rebuild Kerala Initiative RPF Resettlement Policy Framework RPF-TDF Resettlement Policy Framework cum Tribal Development Framework RRDA Rural Roads Development Agency RSA (Kerala State) Road Safety Authority SMP-TDP Social Management Plan cum Tribal Development Plan VRU Vulnerable Road User The World Bank India Second Kerala State Transport Project (P130339) BASIC DATA Product Information Project ID Financing Instrument P130339 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 14-May-2013 30-Jun-2019 Organizations Borrower Responsible Agency Republic of India Mr. Anand Singh,Mr. Ajith Project Development Objective (PDO) Original PDO The project's development objective is to improve condition, traffic flow and road safety with a focus on vulnerable road users on selected roads in Kerala. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-82540 14-May-2013 19-Jun-2013 06-Sep-2013 30-Jun-2019 216.00 113.29 102.71 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank India Second Kerala State Transport Project (P130339) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The Second Kerala State Transport Project II (KSTP II) [P130339] was approved by the World Bank Board on May 14, 2013 and became effective on September 6, 2013, with a total project cost of US$ 445 million, of which US$ 216 is IBRD financing and US$ 229 is counterpart funding from the Kerala State Public Works Department (PWD). The project’s development objective is to “improve condition, traffic flow and road safety with a focus on Vulnerable Road Users on selected roads in Kerala”. The project has three components: Component A - Road Network Upgrading and Safety Improvement (split into sub-components A1 and A2); Component B - Road Safety Management; and Component C - Institutional Strengthening. 2. Overall project implementation of the KSTP II Project has been slow. However, during the last implementation support mission in May 20191, the Bank team noted significant improvement in the implementation of the civil works under Component A1. The overall physical progress for civil works under Component A1 is about 92% (with four out of six civil works packages having been substantially completed). Under Component A2, all three contracts under EPC are in advanced stages of procurement and expected to be awarded by end-June 2019. Progress of Components B (Road Safety Management) and C (Institutional Strengthening) has improved. The safe corridor demonstration project under component B has achieved a physical progress of 81% on the civil works front. All key consultancies2 for both components, B and C, have been awarded, and consultants fully mobilized. The six- point action plan is also in full compliance. The overall disbursement stands at 52.45%. Considering the steady improvement in overall implementation and continuing compliance with the six-point action plan, the last implementation support mission (May 2019) has upgraded the implementation progress rating of the project to Moderately Satisfactory. 3. In April 2019, based on a formal request from DEA, a simple restructuring was carried out to extend the project closing date by two months, i.e. from April 30, 2019 to June 30, 20193 to allow for sufficient time for preparation and disclosure (following the due consultation process) of a revised Resettlement Policy Framework (RPF) duly updated with a Tribal Development Framework (TDF), for carrying out proposed works under the emergency response component. This action has since been completed. B. Rationale for Restructuring 4. From June to August 2018 during the Monsoon season, the state of Kerala was hard hit by an unprecedented level of rain. It was the worst disaster to ravage the state in nearly one hundred years, causing floods and landslides in all 14 districts, and affecting approximately 5.4 million people. The devastating floods and landslides caused extensive damage to houses, roads, railways, bridges, power supplies, communications networks, and other infrastructure. The aftermath of the disaster changed the state’s priorities and presents a risk and an opportunity at the same time, for the state to rebuild itself in a more resilient manner to the growing impact of climate change. 5. In this context, the Government of Kerala (GoK) submitted a request to Department of Economic Affairs (DEA) for restructuring the two currently ongoing World Bank-assisted projects in Kerala: National Cyclone Risk Mitigation Project II (NCRMP II) and KSTP II. The request pertaining to KSTP II entailed project restructuring for reallocation 1 Twelfth Implementation Support Mission; May 21-29, 2019. 2 Including the Project Management Consultant, Center of Excellence Consultant and Road Safety Enforcement Consultant. 3 Refer letter dated April 30, 2019 to Department of Economic Affairs regarding extension of closing date The World Bank India Second Kerala State Transport Project (P130339) of US$ 45 million from the current outlay of KSTP II towards reconstruction of roads for the Rebuild Kerala Initiative (RKI), for urgent rebuilding efforts needed in Kerala4. 6. Pursuant to Section III, Paragraph 12 (Projects in Situations of Urgent Need of Assistance or Capacity Constraints) of the Bank Policy on Investment Project Financing, GoK is deemed by the Bank to be in urgent need of assistance because of natural disaster. Therefore, under this restructuring paper it is proposed to utilize the savings of US$ 45 million from the KSTP II on RKI in the aftermath of the floods and landslides. The proposed adjustments and interventions will support priority investments planned under RKI from various sources for enhancing disaster resilience in the state. II. DESCRIPTION OF PROPOSED CHANGES C. Proposed Changes 7. The below listed changes are proposed as part of this restructuring: a. Changes in project components: With the shift of priorities after the flood, GoK has decided to include a new component D, on “Climate and disaster resilience enhancement” (estimated cost US$ 80.35 million equivalent to a loan amount of US$ 45 million), which would include re-building and re-construction activities for PWD roads [“component D.1”], re-building and re-construction of Local Self Government Institution (LSGI) roads [“component D.2”], and overall programme management. The restructuring would also entail changes in Sub- Component A2 which originally included upgrading 82 km state highway through a Public-Private Partnership (PPP) modified annuity concession. This is now being taken up under EPC mode in suitable packages, owing to the diffficulty of implementing the highway on PPP mode arising from poor market response. Further details of the proposed component/sub-component are provided in Annex C. The overall amount of loan allocated by components/sub-components is shown in table 1 (US$ 45 million would be re-allocated from sub- component A1 to component D, which would both be in the same eligible expenditure category (56%), as shown in table 2). Table 1: Amount of the Loan Allocated by Components/Sub-components (in US$ million) Bank Financing Bank Financing Component (existing) (proposed) A1, B, C, and D* 182.46 182.46 A2 33.00 33.00 Front-end Fee 0.54 0.54 Total 216.00 216.00 *Component D is only included under the Bank (proposed) column. Table 2: Percentage of eligible expenditures to be financed by the Bank – proposed 4Request letter dated April 8, 2019 from DEA, Government of India to the World Bank, following several communications between Government of Kerala and DEA (copy to the Bank) regarding the scope of the restructuring, between November 2018 and February 2019 (the last of which was dated 28th February 2019). The World Bank India Second Kerala State Transport Project (P130339) Percentage of eligible Amount of the loan expenditures to be financed Category allocated (US$ million) – (inclusive of taxes) – original & proposed proposed (1) Goods, works, non- consulting services, consultants’ services, and 182.5 56% Workshops & Training for Components A.1, B, C, and D under the Project (2) Goods, works, non- consulting services and 33 100% consultants’ services under Component A.2 of the Project Amount payable pursuant to Section 2.03 of this Agreement in (3) [Front-end Fee] [ 0.5 ] accordance with Section 2.07 (b) of the General Conditions Amount payable pursuant to (4) Interest Rate Cap or -0- Section 2.07 (c) of this Interest Rate Collar premium Agreement Total 216.0 b. Change in implementing agencies and institutional arrangements: This includes addition of the Kerala Local Self Government Department (LSGD), the state’s agency responsible for local self-government institutions, as one of the implementing agencies of the project, for implementing part of the newly introduced proposed climate and disaster resilience enhancement component. LSGD would be responsible for re-building and re- construction activities for LSGI roads including: (a) construction, rehabilitation and/or improvement of the LSGI Roads; and (b) supporting day-to-day implementation of Component D.2 of the Project. Details of the proposed institutional changes are provided in Annex A. c. Change in Project’s Development Objectives: In accordance with the proposed changes in scope and development objectives of the project to include enhanced resilience to climate change and disaster risk, the PDO is proposed to be revised. The original PDO is: “to improve condition, traffic flow and road safety with a focus on vulnerable road users on selected roads in Kerala.” Considering the impact of the state’s vulnerability to climate and disaster risks, the new PDO will be “to improve condition, traffic flow and road safety with a focus on Vulnerable Road Users on selected roads in Kerala, and to enhance resilience to climate change and disaster risk.” d. Changes in the Results Framework: Following the changes in the project scope, results framework will have to be partly modified to reflect changes in the PDO and project components, and also to reflect changes in some targets/indicators, necessitated by changes in project circumstances. Detailed proposed changes are provided in the Project Implementation Plan (PIP) under preparation/revision by July 31, 2019 (as the prioritization for LSGI roads is still under finalization) and Annex B. e. Extension of Loan Closing Date(s). The loan closing date is proposed to be extended by 22 months from the current closing date of June 30, 2019 to April 30, 2021 in order to provide sufficient time for completion of all proposed activities under the new component D as well as satisfactory completion of other works such as Punalur-Ponkunnam road which was recently converted from PPP to EPC mode, and activities under The World Bank India Second Kerala State Transport Project (P130339) components B and C. A revised procurement and implementation schedule for the proposed and existing components is shown below. This amounts to a cumulative extension of 24 months including the two months’ interim extension given earlier. Table 3: Revised Procurement and Implementation Schedule Procurement Implementation Project Component Schedule Schedule May 2019 – April A2 (EPC Roads) Feb 2019 – May 2019 2021 Implementation Procurement ongoing, to be B&C completed complete by April 2021 May 2019 – April D Jan 2019 – Aug 2019 2021 f. Revision of the Disbursement Estimates. The revised disbursement schedule is proposed according to table 4 below, given actual disbursements of US$ 113.29 million and the proposed remaining project implementation time period of 22 months. Table 4: Revised Disbursements (in US$ million) Fiscal Year Disbursed Amount (up to date) FY 20 FY 21 FY 22 Annual - 40.00 50.00 12.71 Cumulative 113.29 153.29 203.29 216.00 g. Changes in Legal Covenants: Following inclusion of the new component under the proporsed restructuring, changes and additions have been made in the legal covenants of the project agreement. D. Proposed Prioritization Framework for proposed Climate and Disaster Resilience Enhancement Component 8. As stated, the proposed Component D on “Climate and disaster resilience enhancement” would include re- building and re-construction activities for PWD roads, re-building and reconstruction of LSGI roads, and overall programme management. While the exact contours of these sub-components are still under finalization, works and schemes under this component would be selected on the basis of a set of prioritization/eligibility criteria including strategic importance, usage of public/bus transport, population served/habitation connectivity, extent of flood/geo hazard impact and vulnerability, compexity of technical design and social and environmental impacts These criteria would be detailed out in the PIP, currently under preparation/revision and due to be finalized by July 31, 2019 as the prioritization plan for LSGI roads is still under finalization. The PIP would include names of the roads to be re-built/re-constructed and specific procurement and implementation plan for these roads. The loan is expected to be fully committed5 by August 2019 to enable completion of all the works and utilization of the loan proceeds by the revised loan closing date. 9. Overall programme management: This sub-component would include: a. Various consultancies towards re-building/re-construction of PWD roads and LSGI roads, all of which would be procured by KSTP. Both PWD (KSTP) and LSGD would engage two sets of consultants for (a) prioritization and engineering designs, and (b) supervision and contract management. 5 US$ 81 million of the loan is yet to be committed, of which US$ 78 million pertains to components A2 and D (proposed). The World Bank India Second Kerala State Transport Project (P130339) b. Support to RKI Secretariat for overall programme management and monitoring and prioritization and engineering designs for selected infrastructure development identified under the RKI post damage needs assessment6. c. Salaries/travel costs of individual consultants and advisers, and expenses incurred towards logistics arrangements including vehicle hire, etc. The list of consultancies and expenses is being finalized by KSTP and LSGD. E. Environment Management and Safeguards 10. From an environment management and safeguards perspective, the following changes under the proposed project restructuring are of significance: (a) addition of a new component on “Climate and Disaster Resilience Enhancement” (Component D), which would include re-building and re-construction activities for PWD (~75 km) and LSGI roads (~300 km across various flood affected districts); (b) addition of Kerala Local Self Government Department as one of the implementing agencies for rebuilding and reconstructing roads under the said new component and; (c) changes in Sub-Component A2, which originally included upgrading 82 km state highway through a PPP modified annuity concession to an EPC mode. 11. The Environment Management Framework (EMF) prepared for the original project continues to be applicable and will guide the environment management process, including preparation of sub-project specific instruments/ designs for the restructured project as well. It has been updated/revised in April 2019 to include the aspects pertaining to the additional/new component, associated changes in scope of works and implementation arrangements, specifically regarding works to be managed by LSGD. It also addresses requirements of OP 4.11 on Physical Cultural Resources, which is now being triggered for the proposed project restructuring and includes (but is not limited to) procedures related to ‘chance finds’ at work sites. 12. While the same approach, similar management instruments and akin implementation arrangements, as agreed and executed for the original project, will continue to apply to the new road works to be managed by PWD, the process and procedures with regard to environment management for roads to be supervised by LSGD will follow the norms and methodology adopted for PMGSY (also financed and supported by the World Bank with an Additional Financing operation currently under execution). 13. Similar to PMGSY, the national rural roads program, the LSGD works are likely to be confined to existing tracks (in most cases), are similar in nature despite dispersed locations and the scale of the operation is fairly limited (smaller lengths involved for an individual road). Therefore, instead of sub-project specific assessments and management plan preparation, the procedures for environment management, like the national program, will include: (a) screening to identify significant environmental issues, right at the sub-project selection stage; (b) application and implementation of Environmental Codes of Practice (ECoPs) that includes use of comprehensive assessment/audit checklists at four stages - DPR preparation (integrating site specific requirements/mitigation within the design itself and includes transect walk and consultations with community); Pre-construction; Construction and Post-construction; and (c) integration of the standard/generic Environment Management Plan in the Bidding Document to address construction stage environment, health and safety issues. Implementation arrangements, including supervision, monitoring and reporting systems, will be akin to those agreed for PWD and used under the original project. 14. All investments to be covered under the proposed project restructuring (both PWD and LSGD) will first apply the screening protocol for upfront identification of any significant environmental issues, on lines similar to the original project. In the eight flood affected districts (of which some will be selected for reconstruction of damaged roads) as 6As mentioned in Annex A, while KSTP would support the RKI Secretariat in procurement of consultants for above activities covered under the RKI, all payments/reimbursement claims would continue to be routed through KSTP. The World Bank India Second Kerala State Transport Project (P130339) part of the new component, there are ecologically sensitive areas like wildlife sanctuaries, national parks and bioreserves. Some road segments in these districts traverse eco sensitive zones and pass through reserved forests areas as well. Therefore, to avoid/minimize significant environmental impacts, a key sub-project selection criterion entails exclusion of roads located within ecological sensitive areas and critical natural habitats. To minimize potential adverse environmental impacts, roads having available right of way and those with lower environmental/ecological impacts, will be selected and the inclusion or exclusion of a road will be based on results of the screening exercise. Environmental screening exercises for the additional investments are currently underway. 15. The road reconstruction/widening activities could have some local level adverse environmental impacts. Based on the on-going screening exercises and field investigations, it is envisaged that the potential environmental impacts could include: (a) felling of roadside trees; (b) impact on local rivers, water bodies and drainage; (c) possible effect on water resources during construction stage; (d) impacts on slope stability; and (e) construction related Environment, Health, and Safety (EHS) impacts, including work zone safety and camp/plant issues. The exact nature and magnitude of environmental impacts will vary in accordance to the location and type of engineering interventions. In addition to these issues, the sub-project investigations (through sub-project specific EIAs for PWD roads and DPR stage assessment through application of ECoPs/climate screening checklist for LSGI roads) will also assess potential climate change impacts and suggest appropriate measures to be incorporated in the sub-project design, as needed in the light of site conditions, including on the possibilities to reduce damages from floods (such as damage to structures, breach due to missing drainage arrangements etc.) and landslides. Alternative techniques/material options (such as use of rubber, plastic, bio-engineering etc.) will also be explored as part of these assessments and promoted based on site conditions. 16. Sub-project specific EMPs to minimize and mitigate adverse environment, health and safety impacts will be prepared for PWD works and appropriately integrated into the Bidding Documents. Such EMPs will be reviewed and cleared by the Bank prior to approval of the bid documents. For LSGI roads, a generic Environment Management Plan to address typical construction stage environment, health and safety issues will be reviewed/approved by the Bank while giving concurrence to the Model Bidding Document. F. Social Safeguards 17. One of the criteria for selection of roads is availability of clear Right of Way along the corridors considered for rehabilitation. Both PWD and LSGD, will be responsible agency for 3 (~75 km) and 330 (~300 km) roads, respectively. It is assumed that there will be no land acquisition. However, land may be required for geometric improvement and few encroachments (commercial and mixed) along the corridors. Further, the project roads implemented by LSGD will pass through 2 districts Idukki and Wayanad that have high percentage of tribal population. Moreover, the project roads may impact community owned assets in some areas. 18. The Resettlement Policy Framework (RPF) of December 2012 has been updated to align with GoK’s State Resettlement and Rehabilitation (R&R) Policy 2017, organizational responsibility to facilitate negotiated purchase of land for KSTP II roads, automation of grievance management systems, and the PMGSY guidelines to prepare Resettlement Policy Framework-Tribal Development Framework (RPF-TDF) that complies with World Bank’s Operational Policy on Indigenous People and State Panchayat (Extension) Scheduled Areas Act for LSGI roads. 19. LSGD has proposed to rehabilitate 330 roads across 8 districts. These roads are in both rural and urban areas i.e. under gram panchayat and municipalities. LSGD has adopted the safeguard instrument designed for the PMGSY which also covers provisions to comply with the RFCTLAR&R7 Act and World Bank’s Operational Policy 4.12 on Involuntary Resettlement. According to it, the following steps would need to be carried out: (a) information dissemination; (b) consultation in Gram Sabha; (c) transect walk for collaboration and firming up alignment, identifying beneficiaries and 7 Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013. The World Bank India Second Kerala State Transport Project (P130339) those adversely impacted and agreeing on land donation; (d) census of affected people and finalizing list of those who require livelihood support; (f) implementing the mitigation measures; and (g) completing the transfer of land in record of rights. This existing process involves Gram Panchayat – the RPF-TDF has been modified to expand the coverage to include urban local government. The revision has taken into account the requirements of state laws and policy on Indigenous People and on Land Acquisition and Resettlement and Rehabilitation. Accordingly, one document, namely, Resettlement Policy Framework cum Tribal Development Framework (RPF-TDF), has been prepared for the roads to be rehabilitated by LSGD. It also includes action plan to develop a robust grievance management system along the lines of KSTP II. The Detailed Project Report will include the outputs from the implementation of frameworks which will be tracked on real time (geo-referenced) basis. 20. Given the terrain of Kerala, construction induced impacts on people become very pronounced and require appropriate measures. Also, the issues related to labor influx and compliance of labor laws and gender-based violence will be addressed. The revised frameworks for KSTP II and LSGI include guidelines and mechanism to address such risks. 21. Following the finalization of sub-projects, the frameworks will guide the preparation of Resettlement Action Plans (RAPs)/Social Management Plans cum Tribal Development Plan (SMP-TDPs) for the identified sub-projects. It will include site specific Labor Influx Management Plan. The contractors will submit site specific action plan to ensure that the labor follows the code of conduct. This would be monitored including the compliance of applicable labor laws by the Project. 22. In context of the project to address the issues related to Gender based violence at work place, an Internal Complaints Committee (ICC) to address complaints of sexual harassment in accordance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal Act, 2013 (SHWW Act 2013) will be constituted. The contractors and supervision consultants engaged on the project would also be required to establish their respective Internal Complaints Committees. 23. As part of the preparation of RPF and RPF-TDF, the draft document was disclosed in Malayalam and in English language at public places and on the project website as per World Bank’s policy on disclosure, on May 9, 2019. Prior information on the scheduled consultation was provided, following which, consultation was carried out in Idukki District on May 22, 29 and 30, 2019. The final RPF and RPF-TDF (as updated on May 30, 2019) were disclosed on project website and Bank’s external site on June 10, 2019. III. SUMMARY OF CHANGES Changed Not Changed Implementing Agency ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Disbursement Estimates ✔ Safeguard Policies Triggered ✔ The World Bank India Second Kerala State Transport Project (P130339) Legal Covenants ✔ Institutional Arrangements ✔ Procurement ✔ Implementation Schedule ✔ DDO Status ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ EA category ✔ Financial Management ✔ APA Reliance ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_IA_TABLE IMPLEMENTING AGENCY Implementing Agency Name Type Action Mr. Anand Singh Implementing No Change Agency OPS_DETAILEDCHANGES_PDO_TABLE PROJECT DEVELOPMENT OBJECTIVE Current PDO The project's development objective is to improve condition, traffic flow and road safety with a focus on vulnerable road users on selected roads in Kerala. Proposed New PDO To improve condition, traffic flow and road safety with a focus on Vulnerable Road Users on selected roads in Kerala, and to enhance resilience to climate change and disaster risk. The World Bank India Second Kerala State Transport Project (P130339) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Component A: Road Network Component A: Road Network Upgrading and Safety 413.00 Revised Upgrading and Safety 333.00 Improvement Improvement Component B: Road Safety Component B: Road Safety 22.00 No Change 22.00 Management Management Component C: Institutional Component C: Institutional 10.00 No Change 10.00 Strengthening Strengthening Component D: Climate and 0.00 New Disaster Resilience 80.00 Enhancement TOTAL 445.00 445.00 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IBRD-82540 Effective 30-Apr-2019 30-Jun-2019 30-Apr-2021 30-Aug-2021 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2013 0.00 0.00 2014 22,000,000.00 0.00 2015 43,000,000.00 0.00 2016 45,000,000.00 0.00 2017 54,000,000.00 0.00 2018 32,000,000.00 0.00 2019 20,000,000.00 0.00 The World Bank India Second Kerala State Transport Project (P130339) 2020 0.00 40,000,000.00 2021 0.00 50,000,000.00 2022 0.00 12,710,000.00 OPS_DETAILEDCHANGES_COMPLIANCE_TABLE COMPLIANCE Safeguard Policies Safeguard Policies Triggered Current Proposed Environmental Assessment (OP) (BP 4.01) Yes Yes Performance Standards for Private Sector No No Activities OP/BP 4.03 Natural Habitats (OP) (BP 4.04) No No Forests (OP) (BP 4.36) No No Pest Management (OP 4.09) No No Physical Cultural Resources (OP) (BP 4.11) Yes Yes Indigenous Peoples (OP) (BP 4.10) Yes Yes Involuntary Resettlement (OP) (BP 4.12) Yes Yes Safety of Dams (OP) (BP 4.37) No No Projects on International Waterways (OP) (BP No No 7.50) Projects in Disputed Areas (OP) (BP 7.60) No No OPS_DETAILEDCHANGES_LEGCOV_TABLE LEGAL COVENANTS Loan/Credit/TF Description Status Action Finance Agreement :Implementation Units | Description :Kerala to maintain: (i) a Project Steering Committee, for policy guidance, general oversight and procurement IBRD-82540 Complied with No Change approvals; (ii) management unit (KSTP) within the PWD, for day-to-day coordination/implementation of Project activities. | Frequency :Yearly The World Bank India Second Kerala State Transport Project (P130339) Finance Agreement :Implementation Units (contd..) | Description :Kerala to maintain: (iii) an Evaluation Committee, for the evaluation of procurement bids and the preparation of recommendation reports; and (iv) an IBRD-82540 Complied with No Change Environmental & Social Management Cell for assisting KSTP with the implementation of the safeguard documents, and monitoring and evaluating contractors’ compliance therewith. | Frequency :Yearly Finance Agreement :Construction Supervision Consultant (contd...) | Description :Kerala to: (ii) to engage and maintain a supervision consulting firm (Independent Engineer) in order to serve as the construction engineer for the civil works to be carried IBRD-82540 Complied with No Change out under the Project, all of them with qualifications and experience, and terms of reference acceptable to the Bank. Due Date: Twelve (12) months as of the Effective Date | Frequency :Yearly Finance Agreement :Internal Auditors | Description :Kerala to engage and maintain a firm of chartered accountants with qualifications and experience, and under terms of reference acceptable to the Bank, in IBRD-82540 order to perform the internal audit functions within Complied with No Change PWD, monitor payments and ensure compliance with internal control mechanisms. Due Date: Six (6) months after the Effective date. | Frequency :Yearly Finance Agreement :Project Documents | Description :Kerala to implement the Project in accordance with the IBRD-82540 Project Implementation Plan, the FM manual, the GAAP Complied with No Change and the Safeguard Documents (i.e. EIAs, EMPs, EMF and RAP). | Frequency :Yearly IBRD-82540 Finance Agreement :Challenge Fund & Cost Sharing Partially complied No Change Agreements | Description :Kerala through collaborative with efforts of the PWD and the RSA shall mobilize local stakeholders to prepare proposal for the implementation of safe corridors/zones and the piloting of road safety measures; and upon screening and The World Bank India Second Kerala State Transport Project (P130339) selecting feasible proposals shall cause PWD and the RSA to enter into cost sharing agreement for the financing of such proposal (to be implemented by KSTP). | Frequency :Yearly Finance Agreement :Bidding Restriction / Safeguard Compliance | Description :Kerala to refrain from inviting bids and/or selecting any contractors for roads for which: (i) EMPs have not been prepared and disclosed; IBRD-82540 and/or (ii) further details to the existing social impact Complied with No Change assessments might be needed. Kerala to ensure that each contract for civil works includes the obligation of the relevant contractor to comply with the relevant safeguard documents. | Frequency :Yearly Finance Agreement :Government Permits / Clearances | Description :Kerala to ensure that, prior to commencement of any civil works on roads or sections thereof, all relevant government permits/clearances IBRD-82540 Complied with No Change have been obtained, and/or any conditions imposed have been fulfilled/met. Due date: Before any civil work commences | Frequency :Yearly Finance Agreement :Safeguard Reporting & Monitoring | Description :Kerala to (i) maintain monitoring and evaluation protocols and record keeping procedures to IBRD-82540 supervise and assess compliance with Safeguard Complied with No Change Documents; and (ii) to report on quarterly basis on compliance with Safeguard Documents. | Frequency :Yearly Project Agreement: Schedule - Section 1 - H: For purposes of implementing activities for the constructing, rehabilitating and/or improving of the PWD Roads, and the LSGI Roads set forth in Component Marked for IBRD-82540 Expected soon D of the Project, the PWD and the LSGD shall identify Deletion the roads in accordance with prioritization/eligibility criteria, acceptable to the World Bank and further described in the Project Implementation. The World Bank India Second Kerala State Transport Project (P130339) Kerala to ensure that the Kerala Water Authority shall have removed and relocated all water utilities Partially complied IBRD-82540 along the Primbilavu-Perinthalmanna Link corridor, No Change with avoiding to the extent possible, any disruption to civil works. Finance Agreement :Suggestions & Complaint Mechanism | Description :Kerala to maintain and operate a district level grievance redressal mechanism, IBRD-82540 satisfactory to the Bank, for resettlement and Complied with No Change rehabilitation and a state level grievance redressal mechanism for all other aspects of the Project. | Frequency :Yearly PA-Schedule-Sec.I.E.4-The Project Implementing Entity shall ensure that each contract for civil works under the Project includes the obligation of the relevant contractor to comply with the relevant Safeguard Marked for IBRD-82540 Expected soon Documents & all consultancies related to technical Deletion assistance, design & capacity building under the Project shall only be undertaken pursuant to TOR reviewed & found satisfactory to the Bank. Project Agreement - Article II - Section 2.01 - the Project Implementing Entity shall carry out Components A, B, C, D.1 and D.3 of the Project through the PWD, and Component D.2 of the Project through the LSGD, in Marked for IBRD-82540 Expected soon accordance with the provisions of Article V of the Deletion General Conditions, and shall provide promptly as needed, the funds, facilities, services and other resources required for the Project Project Agreement-Schedule-Section I A.1(e)-a project management unit within the LSGD (the “LSGD-PMU”): (i) headed by a chief engineer and assisted by Marked for IBRD-82540 competent staff, all with experience and qualifications, Expected soon Deletion in numbers and under TOR acceptable to the Bank and provided with such powers, financial resources, functions and competencies, acceptable to the Bank The World Bank India Second Kerala State Transport Project (P130339) Project Agreement:Schedule-Section I B (c) - By no later than June 30, 2019, update the Project Implementation Marked for IBRD-82540 Plan, with the prior concurrence of the Bank, and adopt Not yet due Deletion the Project Implementation Plan as updated for carrying out the Project. PA-Schedule-Sec.I.E.2(c)-PWD Roads & LSGI Roads, and/or any other sections thereof, agreed in writing between the Project Implementing Entity (PIE) & the Bank, for which detailed EAs & EMPs, or SIAs have not Marked for IBRD-82540 Expected soon been completed, updated and/or finalized as of April Deletion 30, 2019, will not be awarded until the PIE submits to the Bank the relevant updated/finalized documents to the satisfaction of the Bank. PA-Schedule-Section I.E.1(a)-carry out the Project in accordance/compliance with the EMF, EIAs, EMPs, RPF, RPF-TDF, RAPs, SMP-TDPs and the instruments (to be) prepared pursuant to paragraphs 2 of this Sub-Section, Marked for IBRD-82540 Expected soon and pursuant to the objectives, policies, procedures, Deletion time schedules, compensation arrangements and other provisions set forth therein, in a manner & substance satisfactory to the Bank. PA-Schedule-Section I.E.5(b)(ii)-The Project Implementing Entity shall maintain a supervision consulting firm (Construction Supervision Consultant [CSC]) to assist KSTP with the management & Partially complied IBRD-82540 No Change supervision of regular construction contracts including with payments and quality control and shall furnish to the Bank quarterly reports for sub-components - A.1, D.1 and D.2.prepared by CSC. PA-Schedule-Sec.I.E.2(c)-PWD Roads & LSGI Roads, and/or any other sections thereof, agreed in writing between the Project Implementing Entity (PIE) & the Bank, for which detailed EAs & EMPs, or SIAs have not IBRD-82540 Expected soon New been completed, updated and/or finalized as of June 30, 2019, will not be awarded until the PIE submits to the Bank the relevant updated/finalized documents to the satisfaction of the Bank. The World Bank India Second Kerala State Transport Project (P130339) Project Agreement: Schedule - Section 1 - H: For purposes of implementing activities for the constructing, rehabilitating and/or improving of the PWD Roads, and the LSGI Roads set forth in Component IBRD-82540 Expected soon New D of the Project, the PWD and the LSGD shall identify the roads in accordance with prioritization/eligibility criteria, acceptable to the World Bank and further described in the Project Implementation. Project Agreement: Schedule-Section I B (c) - By no later than July 31, 2019, update the Project Implementation IBRD-82540 Plan, with the prior concurrence of the Bank, and adopt Not yet due New the Project Implementation Plan as updated for carrying out the Project. Project Agreement - Article II - Section 2.01 - the Project Implementing Entity shall carry out Components A, B, C, D.1 and D.3 of the Project through the PWD, and Component D.2 of the Project through the LSGD, in IBRD-82540 Expected soon New accordance with the provisions of Article V of the General Conditions, and shall provide promptly as needed, the funds, facilities, services and other resources required for the Project. Project Agreement-Schedule-Section I A.1(e)-a project management unit within the LSGD (the “LSGD-PMU”): (i) headed by a chief engineer and assisted by IBRD-82540 competent staff, all with experience and qualifications, Expected soon New in numbers and under TOR acceptable to the Bank and provided with such powers, financial resources, functions and competencies, acceptable to the Bank. PA-Schedule-Section I.E.1(a)-carry out the Project in accordance/compliance with the EMF, EIAs, EMPs, RPF, RPF-TDF, RAPs, SMP-TDPs and the instruments (to be) prepared pursuant to paragraphs 2 of this Sub-Section, IBRD-82540 Expected soon New and pursuant to the objectives, policies, procedures, time schedules, compensation arrangements and other provisions set forth therein, in a manner & substance satisfactory to the Bank. The World Bank India Second Kerala State Transport Project (P130339) PA-Schedule-Sec.I.E.4-The Project Implementing Entity shall ensure that each contract for civil works under the Project includes the obligation of the relevant contractor to comply with the relevant Safeguard IBRD-82540 Expected soon New Documents & all consultancies related to technical assistance, design & capacity building under the Project shall only be undertaken pursuant to TOR reviewed & . found satisfactory to the Bank. The World Bank India Second Kerala State Transport Project (P130339) . Results framework COUNTRY: India India Second Kerala State Transport Project Project Development Objectives(s) The project's development objective is to improve condition, traffic flow and road safety with a focus on vulnerable road users on selected roads in Kerala. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Improve condition,traffic flow & road safety, enhance reilience to climate change & disaster risk (Action: This Objective has been Revised) Direct project beneficiaries 13.40 14.80 (Number) Action: This indicator has been Revised Female beneficiaries 7.00 7.70 (Percentage) Kasaragod to Kanjanghad: Kasaragod to Kanjanghad: 29 25 A reduction of travel time on Pilathara to Pappinissery: Pilathara to Pappinissery: the improved project roads (3 21 19 priority corridors) (Text) Thalassery to Valavupara: Thalassery to Valavupara: 58 50 The World Bank India Second Kerala State Transport Project (P130339) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Action: This indicator has been Revised Improved riding quality of 0.00 363.00 project roads (Text) Action: This indicator has been Revised A reduction in annual fatality count of total and vulnerable road users on demonstration 80.00 0.00 20.00 18.00 65.00 corridor (No. of fatalities/year of which women) (Number) Action: This indicator has been Revised Reduction in number of vulnerable fatalities/year 49.00 40.00 (Number) Action: This indicator has been Revised Climate change and disaster resilience vulnerability assessment on all new project No Yes corridors taken up under RKI (Yes/No) Action: This indicator is New PDO Table SPACE The World Bank India Second Kerala State Transport Project (P130339) Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 Component A: Road Network Upgrading and Safety Improvement (Action: This Component has been Revised) State Highways upgraded 0.00 363.00 (Kilometers) Action: This indicator has been Revised Financial closure achieved on PPP Yes Yes pilot project (Yes/No) Rationale: Action: This indicator has been Indicator proposed to be dropped owing to change in mode of implementation of this sub-component from PPP to EPC Marked for Deletion Component B: Road Safety (Action: This Component has been Revised) Pilot safety corridor developed 0.00 80.00 (Kilometers) Action: This indicator has been Revised Number of district level road safety improvement schemes 0.00 5.00 implemented through challenge fund (Number) Rationale: Action: This indicator has been The end target is proposed to be revised because the state is taking other initiatives such as Safe Kerala Program. Also since only 5 districts have evinced Revised interest, it is proposed to do more in these districts with the same resources, rather than spreading resources thin. Component C: Institutional Strengthening (Action: This Component has been Revised) The World Bank India Second Kerala State Transport Project (P130339) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 Study on institutional and financial options for Modernization of PWD (Text) Existing PWD management of road network completed and recommendations adopted Action: This indicator has been Revised Functioning Road Asset No functional road asset Annual maintenance plans Management System (Text) management system disclosed Action: This indicator has been Revised Communications strategy and Communications strategy At least two Atleast two consultations/ interfaces for public engagement No communications strategy developed and action plan consultations/stakeholder stakeholder forums held/year implemented (Text) adopted forums held/year Action: This indicator has been Revised Survey Undertaken and user Regular road user surveys feedback facilitated through No formal road user survey Baseline survey undertaken Final survey undertaken conducted (Text) development of states mobile governance platform Action: This indicator has been Revised Component D. climate and Disaster Resilience Enhancement (Action: This Component is New) Number of km of PWD roads re- built/re-constructed (Kiliometers) 0.00 75.00 (Kilometers) The World Bank India Second Kerala State Transport Project (P130339) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 Action: This indicator is New Number of LSGI roads re-built/re- constructed (Kilometers) 0.00 300.00 (Kilometers) Action: This indicator is New IO Table SPACE . The World Bank India Second Kerala State Transport Project (P130339) Annex A: Proposed Implementation Arrangements India: Kerala State Transport Project II Revised Project Implementation Arrangements: 1. The proposed restructuring would entail changes in the project institutional and implementation arrangements to include a new implementing agency, the Kerala Local Self Government Department (LSGD) - the state’s agency responsible for local self-government institutions, as one of the implementing agencies of the project. This agency would be primarily responsible for construction, rehabilitation and/or improvement of the LSGI Roads, and supporting day-to-day implementation of the LSGI roads sub-component as part of the proposed new component D, on “Climate and disaster resilience enhancement”, which would include re-building and re-construction activities for PWD roads [“component D.1”], re-building and re-construction of LSGI roads [“component D.2”] and overall programme management. The revised project institutional arrangements are depicted in figure A below, with inclusion of component D, and LSGD as an additional implementing agency. Figure A: Revised Project Institutional Arrangements 2. Implementation of the Climate and Disaster resilience enhancement component: The responsibility for implementation of this component (planning, budgeting, procurement, implementation) would be with PWD, LSGD, KSTP, for respective modules on: a. Re-building and re-construction activities for PWD roads including: (a) construction, rehabilitation and/or improvement of the PWD Roads; and (b) supporting day-to-day implementation of Component D.1 of the Project (PWD). b. Re-building and re-construction activities for LSGI roads including: (a) construction, rehabilitation and/or improvement of the LSGI Roads; and (b) supporting day-to-day implementation of Component D.2 of the Project (LSGD). c. Overall programme management, including: (a) overall coordination and management, including monitoring and evaluation, financial audits and reporting to support implementation of Component D; (b) The World Bank India Second Kerala State Transport Project (P130339) carrying out of a post disaster needs assessment to identify adaptation measures through a vulnerability and risk assessment along the proposed road network covered under the RKI; and (c) providing technical support to the RKI Secretariat for carrying out of prioritization, program formulation and designs for infrastructure covered under the RKI (KSTP). 3. Specifically under point 2c. (c) above, KSTP would support the RKI Secretariat in procurement of consultants for carrying out of prioritization, program formulation and designs for various infrastructure (roads, and also other infrastructure such as water, agriculture, solid waste management etc.) covered under the RKI. The consultants would report to the RKI Secretariat. All payments/reimbursement claims would however continue to be routed through KSTP. Further, to the extent that these consultancies/technical assistance (TA) activities have environmental and social implications, triggering one or more Safeguard Policies, these will need to be carried out in a manner satisfactory to the Bank and in accordance with the Safeguard Policies. 4. To ensure successful implementation and day to day management and administration of component D.2, a Project Management Unit (PMU) headed by a Superintending Engineer (SE) Level Officer [Project Director] with at least three years of service to retirement, and supported by a team of one Executive Engineer (EE) [Deputy Director], one Assistant Executive Engineer (AEE), a Procurement Specialist, a Finance Management Specialist, a Social Safeguards Specialist and an Environmental Specialist would be constituted at the head office of LSGD in Trivandrum. The PMU would also include staff from PMGSY Rural Roads Development Agency (RRDA) that are conversant with PMGSY procedures and have been involved in the implementation of the programme. Although procurement of all works and approval of bids, etc. by LSGD are usually subject to Panchayat/Municipality councils, however, all procurement under the World Bank project would be done centrally at the PMU (following the same arrangements as under “PMGSY”), for which LSGD officials (and contractors) would require to be provided with hand-holding support and training in World Bank procurement standards, possibly in partnership with Kerala Highway Research Institute - KHRI. 5. The PMU would be supported by Project Implementation Units (PIUs) at Division levels for implementation (since the number of works would be less in the first phase of the restructured KSTP loan, the number of PIUs would be decided on the basis of the number/length of roads taken up under each district, or alternatively one PIU may manage two or more districts). The Prioritization and Design Consultants, as well as Supervision and Contract Management Consultants would contractually report to the PMU and work alongside the PIUs, in effect being the “engineer” responsible for supervision of works, certifying payments, etc. The prioritization and design consultants would also be responsible for preparing the PIP, doing a second level screening of damages on the 300 km roads to identify whether they qualify to be taken up, helping undertake social and environmental assessments, preparing relevant safeguards documents, and recommending packaging and contract types for selected roads. The PIU would act as the “Employer’s representative” during implementation. Thus, while design would follow the PMGSY framework, implementation would follow the existing KSTP model. 6. While the Prioritization and Design Consultants and the Supervision and Contract Management Consultants are in the process of being procured and brought on board, in the interim, a team of individual consultants from the empaneled consultants of Kerala Infrastructure Investment Fund Board (KIIFB) would be engaged to support the LSGD engineers in prioritization and shortlisting of 300 km roads. The prioritization exercise would also include social and environmental screening of the proposed roads, to identify any significant issues/concerns early-on in the project cycle. KIIFB would also deploy around 30 field engineers for ground truthing, and undertake recruitment of environment and social safeguards consultants with prior experience of working in KSTP. The The World Bank India Second Kerala State Transport Project (P130339) aforesaid team would prepare the DPRs, draft bidding documents, EMPs, and SMPs, as applicable, and initiate the bidding process by end July 2019. The PMU team in LSGD would work full-time with KIIFB consultants, accompany them in ground truthing, and jointly work with the consultants in the preparation of relevant documentation, in addition to coordination with KSTP. 7. The specific responsibilities of the proposed additional implementing agency, LSGD, would thus be as follows:  Post disaster needs assessment (through a vulnerability and risk assessment) along the proposed road network (LSGD responsible along with PWD and KSTP);  Selection and procurement of the re-building and re-construction activities for proposed LSGI roads under the climate and disaster resilience enhacement component.  Acting as the “Employer” for supervision and monitoring of the said roads. 8. As LSGD has been added as a new implementing agency under the project, a procurement assessment of the agency was carried out, the results of which are outlined below. 9. Procurement assessment of LSGD: A procurement assessment of the LSGD was carried out and it was found that the department has an Engineering wing (formed by pooling staff from various departments such as Public Works Department, Water Resources Department, Municipal Common Service, Panchayat Department etc.) headed by a Chief Engineer, which manages all civil works procurement including LSGI roads. LSGD has two circles - south and north - headed by an SE in each circle, managing seven districts each. LSGD has an elaborate process flow for handling civil works. Based on availability of funds, a Municipal Committee/Panchayat Committee selects the work, after which the Overseer/AE in the Municipality prepares the estimate using Price software, which is scrutinized by the office of the Technical Sanctioning authority. Estimates are based on Department Scheduled Rates (DSR). The Municipal Council issues the administrative sanction, while the competent authority of the Engineering wing grants the technical sanction. LSGD states that it uses an e-procurement system for all civil works valued at more than Rs. 5 lakh. However, in reality, the e-procurement system is being used for all civil works irrespective of value. After the tenders are opened, the recommendations of the Tender Committee are accepted by the Municipal Council. A similar system is followed by the Panchayat for procuring civil works. During an emergency, the Chairman of the Municipality has the power to order for execution of works, which can be ratified in the next Executive Council meeting. It was found that the activities are completed in time and there is good bidder participation. 10. During the procurement assessment it was also noted that some LSGD engineers have prior World Bank project experience. As mentioned above, for the World Bank funded component, LSGD plans to procure civil works for rebuilding LSGI roads centrally at the state level in the CE office although as per current practice, the LSGD central office is not responsible for procurement, but only for managing the funds. For managing procurement for the LSGI roads, the CE office of LSGD would form a PMU with officers from the field as well as from PMGSY RRDA. In addition, LSGD plans to hire a Supervision and Contract Management Consultant, who would also assist the PMU in procurement processing. Because of general lack of experience of LSGD engineers on World Bank funded projects, the procurement risk is rated as substantial. Action has been taken to mitigate procurement risks under the project. Residual risks relate to: (i) low bidder participation for works in remote villages, (b) limited capacity of new officials involved in the implementation of activities under RKI, and (c) governance risks relating to interference, fraud and corruption. Measures for risk mitigation and the time frame for their implementation are summarized in table A1: The World Bank India Second Kerala State Transport Project (P130339) Table A1: Assessed Procurement Risks and Mitigation Measures Residual Risk Factor Initial Risk Mitigation Measure Completion Date Risk Limited capacity Substantial  Hiring of skilled procurement staff with World During the project Substantial and Bank procurement knowledge for handling implementation inefficiencies procurement activities period resulting in  Monitoring through Procurement Plan and delays in quarterly reports procurement  Use of e-Procurement and contract and contract management tools management  Participation in trainings and workshops processes Noncompliance Moderate  Training and hand-holding provided by the Continuous for Year Moderate with agreed World Bank 1 procurement  Prior and post reviews by the World Bank arrangements  Internal and external audits Governance Substantial  Disclosure of procurement-related Continuous for Year Substantial risks relating to information 1 interference,  Appropriate handling of complaints corruption etc. in procurement process Overall Risk Substantial Substantial 11. Record keeping. All records pertaining to award of contracts, including bid notification, register pertaining to sale and receipt of bids, bid opening minutes, bid evaluation reports and all correspondence pertaining to bid evaluation, bid securities, etc. would be retained by the implementing agencies for two years after the project closure date. 12. Procurement information disclosure requirements. The project shall comply with the disclosure requirements stipulated in the World Bank’s Procurement Guidelines. Accordingly, the following documents shall be disclosed on the project’s website: (i) Procurement Plan and all subsequent updates; (ii) invitations for bids for works/goods; (iii) requests for expression of interest (REOIs) for selection/hiring of consulting services; (iv) shortlisting of consultants; (v) details of contract awards; (vi) lists of contracts following Direct Contracting, selection based on the Consultants’ Qualifications (CQS), or Single-Source Selection on a quarterly basis; and (vii) action-taken reports on the complaints received on a quarterly basis. 13. Oversight and monitoring by the World Bank. All contracts not covered under prior review by the World Bank would be subject to post review during implementation support missions and/or special post review missions. The World Bank may conduct, at any time, independent procurement reviews of all the contracts financed under the loan. Bank prior review will be carried out for values of procurement as per table A2 below: Table A2: World Bank prior review thresholds Type of Procurement Prior Review Threshold (US$, million) Works 10 Goods and non-consulting services 2 The World Bank India Second Kerala State Transport Project (P130339) Type of Procurement Prior Review Threshold (US$, million) Consultant firms 1 14. Complaint handling mechanism. In LSGD, complaints are handled by the next higher officer in the department. However, timelines for complaint handling are not defined. KSTP has already established a complaint handling mechanism to address complaints/grievances from contractors/suppliers more effectively. A similar complaint handling mechanism would be established by LSGD. On receipt of complaints, immediate action would be initiated to acknowledge the complaint and address it within a reasonable timeframe. All complaints during bidding/award stage as well as complaints during contract execution along with the analysis and response of PMU should be submitted to the World Bank for review. 15. Financial Management arrangements. The KSTP PMU will continue to be the nodal agency for overall financial management, monitoring and processing reimbursement requests. For LSGI roads under Component D, the LSGD PIUs will submit the expense records, which will be further processed by KSTP PMU for preparing reimbursement request to the Bank. The LSGD PMU will include a finance management specialist for collating the expense records and processing of contract payments for LSGI roads. For KSTP roads, the current financial management arrangement will continue. 16. Implementation arrangements for PWD: PWD would continue to follow arrangements as were followed under KSTP for implementation of component D.2. The World Bank India Second Kerala State Transport Project (P130339) Annex B: Revised Results Framework India: Kerala State Transport Project II Revised PDO: To improve condition, traffic flow and road safety with a focus on Vulnerable Road Users on selected roads in Kerala, and to enhance resilience to climate change and disaster risk. ORIGINAL PROJECT RESTRUCTURED PROJECT Original Indicator Associated Original Original Target Retain/ New, Revised Associated New or New or Revised Original Baseline Delete/ or Retained Revised PDO Revised Target PDO Revise Indicator Outcome Baseline Outcome PDO Indicators Direct project Improve 13.4 million8 14.8 million Retain Direct project Improve Same as Same as original beneficiaries, of condition, (7 million) (7.7 million) beneficiaries, of condition, original which female traffic flow which female traffic flow and road and road safety with safety with a a focus on focus on Vulnerable Vulnerable Road Users Road Users on on selected selected roads roads in in Kerala Kerala A reduction of Improve Kasaragod to Kasaragod to Retain A reduction of travel Improve Same as Same as original travel time on the traffic flow Kanjanghad: Kanjanghad: 25 time on the traffic flow on original improved project on selected 29 minutes improved project selected roads roads (3 priority roads in Pilathara to roads (3 priority in Kerala corridors) Kerala Pilathara to Pappinissery: 19 corridors) Pappinissery: 21 minutes Thalassery to Valavupara: 50 Thalassery to Valavupara: 58 minutes Improved riding Improve 0 km with IRI 363 km with IRI <4 Retain Improved riding Improve Same as Same as original quality of project condition <4 quality of project condition on original roads on selected roads 8 Assumes direct beneficiaries are all those living in the eight districts covered by project. The World Bank India Second Kerala State Transport Project (P130339) roads in selected roads Kerala in Kerala Improve 809 56 Revise A reduction in Improve road Same as 65 A reduction in road safety (target) annual fatality safety with a original annual fatality with a focus 4910 34 count of total and focus on 4011 count of total and on Vulnerable Road Vulnerable Vulnerable Road Vulnerable Users on Road Users on Users on Road Users demonstration selected roads demonstration on selected corridor in Kerala corridor roads in Kerala - - - - Revise Climate change and Enhance None (no Climate change (new disaster resilience resilience to vulnerability and disaster indicator) vulnerability climate assessment resilience assessment on all change and undertaken) vulnerability new project disaster risk assessment corridors taken up undertaken & under RKI incorporated in all designs for the new project corridors taken up under RKI Intermediate Indicators Improve 0 km 363 km Retain Improve traffic flow Same as Same as original State Highways traffic flow on selected roads in original Upgraded on selected Kerala 9 The baseline estimates for fatality count on the demonstration corridor has been drawn from the 2012 Kerala State Crime Records Bureau data as available. During the implementation of the project a detailed review and assessment of fatality estimates will be done which may revised the baseline values. In addition to the total fatality count, the assessment will also identify the fatality count for Vulnerable Road Users and female road users for the purposes of the results framework. 10 The fatality count for Vulnerable Road Users was estimated using the fatal victim to crash ratio for all road users and then applying the same ration for Vulnerable Road User victims. The Vulnerable Road Users identified in the results framework includes pedestrians and passengers of two wheelers. 11 These revisions are necessitated by an increase in vulnerable fatality count on the selected corridor since the project baseline, with total fatalities remaining unchanged at a rate of 1/km/year, rather than decreasing. Current counts for number of fatalities/year and number of vulnerable fatalities/year on the demonstration corridor are 79 fatalities/year, of which 52 are vulnerable fatalities/year (2017), as against 80 and 49 as baselines respectively; source: NATPAC analysis. The World Bank India Second Kerala State Transport Project (P130339) roads in Kerala Improve No Financial closure Delete - - - Indicator proposed traffic flow achieved on to be dropped Financial closure and selected pilot (YR achieved on PPP condition of 3) pilot project selected roads in Kerala Improve 0 km 80 km Retain Pilot safety corridor Improve road Same as Same as original road safety developed safety with a original with a focus focus on Pilot safety on Vulnerable corridor Vulnerable Road Users on developed Road Users selected roads on selected in Kerala roads in Kerala Improve 0 10 Revise Number of district Improve road Same as 512 Number of road safety (target) level road safety safety with a original district level road with a focus improvement focus on safety on schemes Vulnerable improvement Vulnerable implemented Road Users on schemes Road Users through challenge selected roads implemented on selected fund in Kerala through roads in challenge fund Kerala - None Study on Retain Modernization of - Same as Same as original institutional and PWD original Modernization of financial options PWD for management of road network completed and 12The end target is proposed to be revised because the state is taking other initiatives such as Safe Kerala program. Also, since only 5 districts have evinced interest, it is proposed to do more in these districts with the same resources, rather than spreading resources thin. The World Bank India Second Kerala State Transport Project (P130339) recommendations adopted Functioning Road - None Annual Retain Functioning Road - Same as Same as original Asset maintenance plans Asset Management original Management disclosed System System Communications - None At least two Retain Communications - Same as Same as original strategy and consultations/ strategy and original interfaces for stakeholder forums interfaces for public public held/year engagement engagement implemented implemented Regular road user - - Final survey Retain Regular road user - Same as Same as original surveys undertaken surveys conducted original conducted - - - - Revise Number of km of - 0 km 75 km (new PWD roads re- indicator) built/reconstructed - - - - Revise Number of km of - 0 km 300 km (new LSGI roads re- indicator) built/reconstructed The World Bank India Second Kerala State Transport Project (P130339) Annex C: Detailed Project Description India: Kerala State Transport Project II Revised Project Components: 1. The proposed restructuring would entail changes in the following components/sub-components of the KSTP II Project. All civil works costs include contigenencies, environmental management, land acquisition and resettlement. The revised components are as follows: 2. Sub Component A 2 (US$ 91 million; Bank financing US$ 33 million) [under Component A: Road Network Upgrading and Safety Improvement (Revised cost US$ 333 million; of which US$ 154 million Bank financing)]: 3. This sub-component will include upgrading 82 km state highway (Punalur-Ponkunnam road) through the EPC mode. The previously prepared DPR which was updated by L&T Infra (Transaction Advisor to KSTP) recently, including revised topographic surveys using LIDAR, would be used. The road has been divided into 3 contract packages, and the Bank approved EPC standard bidding document is being used for NCB procurement (new ESHS and GBV clauses have been included), and bidding is being undertaken separately for each package. L&T would also provide back end support for preparation of tender documents and award of contracts. The procurement process for all three packages has now been initiated. The existing carriageway (5.5m ~ 7 m) is proposed to be widened to 2 lanes with paved shoulders (7m + 2x1.5m). Geometric correction is proposed in a few stretches, which would require land acquisition. Nearly 99.2% acquisition has been completed and about 34 private (8 are along the proposed carriageway, thus critical) and 23 government properties are yet to be acquired. Out of the 8 critical cases, 5 need to follow the LA Act 2013 and may need about one year for settlement. For the other 3 cases, direct purchase would be adopted and this could be completed in 3 months. The cases of Government land comprise 2 Postal, 1 BSNL and the rest state owned (Education-7, Home-2, Irrigation-3, LSGD- 6, Technical-1 and Revenue-1). Further, a nearly 2-3 km stretch under package C falls in forest land and joint ownership of this land is claimed by Revenue and Forest Departments, and private owners. In case this is Reserved Forest Land, MoEF clearance would be required; else no objection from State Forest Department would be needed prior to construction. The number and type of utilities to be shifted would need be included in the bid documents. A provision for mandatory use of RAP (Reclaimed Asphalt Concrete) in percentage terms with proof of compliance as part of the SCC would also be included. As such, the contract schedules and cost would be updated prior to proceeding with the procurement process. 4. Changes in Component A2 are required because GoK has decided, vide their letter dated June 26, 2018, to adopt the EPC mode for implementation of the Punalur-Ponkunnam road. Procurement for the said road under the PPP mode was initiated in early 2014 and the bid published on 25th February, 2016. While procurement was preceded by an investors’ meet, the response was lukewarm with only one qualified bidder. GoK accordingly decided to consider alternative modes of implementation, and decided to change the mode of implementation from PPP to EPC. As agreed with the Bank, the DPR was revised, and the cost of construction is Rs. 6,093.3 million. 5. Component D: Climate and Disaster Resilience Enhancement (US$ 80.35 million; Bank financing US$ 45 million): This component would include the following: a. Provision of assistance to PWD for: (a) construction, rehabilitation and/or improvement of the PWD Roads; and (b) supporting day-to-day implementation of Component D.1 of the Project. The World Bank India Second Kerala State Transport Project (P130339) b. Provision of assistance to LSGD for: (a) construction, rehabilitation and/or improvement of the LSGI Roads; and (b) supporting day-to-day implementation of Component D.2 of the Project. c. Provision of assistance to KSTP for: (a) overall coordination and management, including monitoring and evaluation, financial audits and reporting to support implementation of Component D; (b) carrying out of a post disaster needs assessment to identify adaptation measures through a vulnerability and risk assessment along the proposed road network covered under the RKI; and (c) providing technical support to the RKI Secretariat for carrying out of prioritization, program formulation and designs for infrastructures covered under the RKI. 6. Estimated outlay on various sub-components is provided in table C1 below. Table C1: Break-up of loan amount for proposed Component D (in US$ million) No. Activity Cost Bank financing 1 Re-building and re-construction of PWD roads (D.1) 23.00 2 Re-building and re-construction of LSGI roads (D.2) 19.00 3 Overall programme management 3.00 4 TOTAL 80.35 45.00 7. Inclusion of Component D is necessitated by changes in scope and development objectives of the project, to include proposed interventions for re-building and reconstruction under the Resilent Kerala Inititaive, following the 2018 Kerala floods. Existing and proposed costs by component and Bank funding are indicated in table C2 below. Table C2: Amount of the Loan Allocated by Components/Sub-components (in US$ million) Total cost Bank Financing Total cost Bank Financing Component/Sub-component (existing) (existing) (proposed) (proposed) A1, B, and C 354 182.46 274 137.46 A2 91 33.00 91 33.00 D - 80 45.00 Front-end Fee - 0.54 - 0.54 Total 445 216.00 445 216.00 Total cost Bank Financing Total cost Bank Financing Component/Sub-component (existing) (existing) (proposed) (proposed) A1 322 166 242 121 A2 91 33 91 33 B 22 12 22 12 C 10 5 10 5 D - - 80 45 Front-end Fee - 0.54 - 0.54 Total 445 216 445 216