KSHIP II

KSHIP II (World Bank)

1. Government of Karnataka has now proposed to take up KSHIP- II to further improve state highways. Strategic Option Studies were carried out on l4,090 Km of State Highways. Feasibility studies were conducted on selected 4888 km roads. The selection of roads for preparation of Detail project report is based on ranking with 80 % weightage for economic internal rate of return and 20% weightage for Deprivation Index derived from Dr Nanjundappa committee report for redressal of regional imbalances. Finally, 3411 Km of State Highways are identified for improvement, which is approved by the Cabinet in Nov 2006. A Government Order was issued to notify the consultants to prepare DPR for selected 3411 kms vide No. PWD 61 EAP 2006 dated 25.11.2006. Consultants M/s.ScottWilson Ltd., U.K in Jv with Scottwilson India Ltd,Delhi have been appointed following World Bank norms to carry preparation of Detailed Project Reports (DPR).

2. The DPR is ready for 3411 Kms.

3. The Department of Economic Affairs, Govt. of India has recommended a loan assistance of US $ 300 million for the project of KSHIP-II from the World Bank.

Successive World Bank Missions headed by Mr. Binyam Reja have visited the project and the state to review the progress of the Project Preparation and to discuss and agree on the remaining Project preparation activities and timeline for project Appraisal and approval of the proposed Karnataka State Highway Improvement Project –II (KSHIP-II). A road length of 831 Kms is proposed for improvement under Stage-I of KSHIP-II with the World Bank financial assistance. Out of 831 kms, 269 kms are proposed for implementation through EPC mode and the remaining 562 kms through Annuity mode, The activities related to Land Acquisition, clearing of encumbrances and Environmental clearances etc are in progress.

4. The World Bank has also provided a Public Private Infrastructure Advisory Facility (PPIAF) grant of 44,000 US $ to provide technical assistance and advisory services to Govt.of Karnataka to develop roads under various Public Private Partnerships by raising resources from private sector, domestic financing and Viability Gap Funding(VGF) grant. The PPIAF consultant has Submitted draft report.

KSHIP-II THE WORLD BANK ASSISTANCE PROJECT (Stage-I)

The Department of Economic Affairs, Govt. of India has recommended a loan assistance of US $ 300 million for the Project of KSHIP-II from the World Bank. The status of the project is as below;

826 kms of State Highways have been finalized for upgradation to 2-lane under WB finance. The implementation is proposed to be under taken in two category of contracts viz EPC contracts (conventional item rate contract) and Annuity contracts. The list of roads is provided in the table below:

EPC Contracts:

Package	Description of Road	Length in kms
WEP-1	Hoskote - H Cross (Hindgnala Cross)- Chinatmani Bypass	52.50
WEP-2	Haveri (NH4) – Hangal- Tadasa	75.30
WEP-3	Dharwada – Saundatti	38.50
WEP-4	Tinthni - Chinchodi - Jalhalli - Karegud – Devadurga- Masarkal - Gabbur - Kalmala	73.85
WEP-5	Chowdapura – Gulbarga	28.67
	Total road length under EPC	268.82

The EPC contracts are regular ICB contracts with defects notification period of one year and the World Bank is expected to fund 80% of the contract cost.

Package	Description of Road	Length in kms
WAP-1	Malavalli – Maddur – Huliyurdurga- Kunigal- Tumkur- Koratagere- Madhugiri- Pavagada.	190.35
WAP-2	Mudhol – Mahalingapura- Kabbur- Chikodi-(NH-4 cross) Nippani.	108.02
WAP-3	Shikaripura - Anandapuram (on NH-206) Shimoga - Savalanga – Shikaripura- Shiralakoppa – Togarsi- Anvatti - Gondi – Hangal	153.67
WAP-4	Managuli - Basavana Bagewadi – Talikota- Hunasagi - Devapur	109.97
	Total Annuity Contract	562.01

The Annuity Contracts would be of 10 years duration with max. of 3 years of construction and 7 years of maintenance. Under Annuity Concession Contracts, it is proposed to avail the World Bank assistance for an upfront payment of 50% of the construction cost and the remaining payments during the maintenance period of 7 years on annuity basis to be met out of State funds.

Bids for EPC contracts have been invited. Bids were opened on 01-06-2010. The bid evaluation at PIU has been completed and the World Bank clearance for the Bid Evaluation Report is expected shortly. The contractors for the five EPC contract works are expected to be mobilized after the clearance of the World Bank in December 2010.

Mobilisation process of Construction Supervision Consultancy Services for EPC contracts is initiated and Banks no objection to Technical Evaluation of RFP is received. Financial proposals are to be opened shortly.

Bid documents for procurement of Annuity Contracts are under finalization in consultation with the World Bank. The clearance of the Bank is expected by January 2011.

Mobilisation of Transaction Advisory Consultancy Services for procurement of Annuity contracts has been initiated.

Pre-project activities of Land acquisition, R&R issues, Shifting of utilities, environmental issues for the entire length of 826 kms are undertaken as per World Bank norms. Provisions of KSHA 1964 has been adopted for land acquisition under the project.

Removal of encumbrances for the EPC roads is in advanced stage of completion.

Details of Award and Performance of Contracts (World Bank Stage-1: EPC Contracts)