Presentation

On

World Bank Loan Assistance

For

Development & Modernisation

Of

State Highways In Rajasthan

Public Works Department, Rajasthan

21.09.2017
 Agenda
Background of current proposal
Status of RSHDP
The Proposal-World Bank

Financial Assistance Sought from WB

Loan Disbursement Schedule
Action Plan

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 Background of Current proposal
Initially, Proposal for WB assistance of USD 500 million
for RSHDP-II considered by Screening Committee, DEA on
19.05.2015;

Accordingly, DEA posed the Proposal to WB for an IBRD

loan of USD 500 million on 04.06.2015;

Appraisal stage not reached after expiry of 18 months,

inspite of seven WB mission due to apprehensions related
to implementation strategy;

As per DEA guidelines, the Proposal is resubmitted for

review after seeking fresh concurrence from FD of the
State.

Public Works Department,

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 Status of RSHDP

Feasibility Studies of 132 no. of Highways, 8910 Km

completed in RSHDP (Phase-I)
Status of Highways on different Mode
PPP(VGF) : 04 Roads
PPP(Annuity) : 21 Roads (16 ADB & 5 WB)
EPC : 17 Roads (11 ADB & 6 WB)
Swiss Challenge Mode : 40 Roads (State Fund)
Highways developed/sanctioned
under other schemes : 27 Roads
Mode yet not decided : 23 Roads

Public Works Department,

21/9/2017 Rajasthan
 Public Works Department,
21/9/2017 5
Rajasthan
 Status of RSHDP (Contd.)

ADB Funded Tranche-I Highways:

Award for 16 Highways (980 Km) with Project Cost of
Rs 1944 Cr completed (3 Packages on 50:50 Annuity
mode and 1 Package on EPC);
Appointed date fixed for all the 4 Packages, Civil work
commenced;
Project formulation for ADB Tranche-II Highways in
progress;
WB Funded proposed Highways (in mixed mode i.e.
50:50 Annuity and EPC);

21/9/2017 Public Works Department, Rajasthan

 Status of RSHDP (Contd.)

WB Funded proposed Highways (in mixed mode i.e. 50:50

Annuity and EPC):
Visit of WB Missions:
Project Identification Mission: September 21-25, 2015;
Project Preparation Mission: Feb 22-26, 2016;
Project Identification Mission: May 30-June 03, 2016;
Implementation Support Mission: Dec 05-09, 2016;
Interim Mission: Jan 24-27, 2017;
Project Interim Preparation Mission: April 06-12, 2017;
Project Preparedness Review Mission: May29- June 05, 2017.

21/9/2017 Public Works Department, Rajasthan

 Status of RSHDP (Contd.)

WB raised apprehensions on proposed 50:50 PPP (Annuity)

mode;
Market sounding exercise carried out through M/s PWC,
appointed by WB, to assess acceptability of above mode
invogue;
In the meantime, General Procurement Notice (GPN)
published on UNDB website on 20.02.2017;
Project Procurement Strategy Development (PPSD) provided
to World Bank on 27.04.2017;
Experts for SIA and EIA engaged by PWD for project support
Activities for Land Acquisition and Forest clearance in
progress;
Identification of Project Highways for Tranche-I, Mode of
implementation firmed up with World Bank Team

21/9/2017 Public Works Department, Rajasthan

 Status of RSHDP (Contd.)
Project specific Draft EPC Documents (RFP/Agreement) for two
highways shared with WB, observations under compliance;

Recently, World Bank proposed to split the Projects in two

operations:

Improvement Project through Investment Project Financing

(IPF)-through additional financing to the ongoing RRSMP or
standalone operation;

Institutional and policy reform project through Development

Policy Financing (DPF);

Modalities for both operations to be firmed up in next interim

preparation mission proposed in October 3-5, 2017.
 The Proposal World Bank
S. Phase Mode No. of Length Indicative Cost
No Roads (Km) (Rs. in Crore)

1. Tranche-I PPP (Annuity) 05 309.444 624.67

EPC 06 506.250 1341.36
Total (Tranche-I) 11 815.694 1966.03

2. Tranche-II To be decided 17 1084.269 2659.82

Total (Tranche-II) 17 1084.269 2659.82

Total 28 1899.963 4625.85

Add 10% for financing plus 462.59

component

Grand Total 28 1899.963 5088.44

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Financial Assistance Sought from
World Bank
External Government Fund Private Investment
Assistance
USD 500 Million USD 50 Million* USD 235 Million**

* Amount to be utilised to meet the expenditure for utility shifting

and Land Acquisition.

** Amount to be paid back to the investor by the state government

in the form of annuity in 20 biannual instalment during a period
of Ten years.

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 Loan Disbursement Schedule
Year Loan Withdrawal Schedule

Amount Rs in Cr Amount USD in Million

2018-19 500.00 78.46

2019-20 800.00 125.53

2020-21 985.69 154.67
2021-22 850.70 133.49
2022-23 50.00 07.85
Total 3186.39 500.00
(As concurred by Finance Department GoR )

1 USD= INR 63.73 (RBI Currency conversion rates of August

08, 2017)

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 Action Plan

2014-16: Preparation of Preliminary

Project Report by Technical
Consultants;

2017-19: Invitation of Proposals from

prospective Concessionaires and
Award;

2018-23: Implementation of civil works.

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 Thank You !

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List of Roads Proposed under WB (Tranche-I)
PPP(Annuity)Mode

S.No. Name of Road Length Estimated

(Km) Cost (in
Cr.)
1 Sriganganagar - Bikaner 92.95 130.60
(Padampur-Raisinghnagar &
Sattasar-Bikaner Section)
2 Jhunjhunu - Rajgarh 62.88 97.63
3 Neemkathana-Khetri-Singhana 53.22 131.44

4 Kishangarh-Arain-Malpura 66.98 109.01

5 Bhinmal-Raniwara section of 33.414 155.99

Ramseen-Bhinmal-Raniwara
road
Total 309.44 624.67

21/4/2015 Public Works Department, Rajasthan 15

List of Roads Proposed under WB (Tranche-I)
EPC Mode

S.No. Name of Road Length (Km) Estimated

Cost (in Cr.)
1 Khood- Dataramgarh-Renwal 51.03 77.50
2 Palri-makrana-Khatu including 74.30 199.63
Parbatsar- Bidiyad-Makrana
3 Banar - Bhopalgarh - Kuchera 126.03 318.90

4 Bhavi-Pipad-Khinvsar 83.23 176.11

5 Jodhpur - Marwar Junction- 118.36 431.00

Jojawar
6 Hurda-Banera 53.30 137.76
Total 506.25 1340.80

21/4/2015 Public Works Department, Rajasthan 16

Payments under PPP(Annuity)
50% of the Project Cost, adjusted for the Price Index Multiple, shall be due and
payable to the Concessionaire in 5 equal instalments of 10% each during the
Construction Period by the Govt..

The remaining 50% of the Project Cost shall be arranged by Concessionaire

during construction period, shall be due and payable in 20 biannual
instalments commencing from the 180th day of Commercial Operation Date
(COD).

Concession period shall be 10 year commencing from date of completion

(COD).

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Payments during Construction
Authority shall disburse the expenditure incurred
by the concessionaire in 5 instalments equal to
10% of the Project Cost, adjusted for the Price
Index Multiple as applicable.

These instalments shall be due upon investment

by the Concessionaire about 20%, 35%, 50%,
65% and 80% respectively of the Total Project
Cost.

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Annuity Payments during Operation Period
ANNUITY PAYMENT SCHEDULE AS PER MCA
Year 1st Semi Annuity 2nd Semi Annuity Total Annual Annuity

1st 1.50% 1.50% 3.00%

2nd 1.50% 1.50% 3.00%
3rd 1.50% 1.50% 3.00%
4th 2.50% 2.50% 5.00%
5th 2.50% 2.50% 5.00%
6th 2.50% 2.50% 5.00%
7th 2.50% 2.50% 5.00%
8th 3.50% 3.50% 7.00%
9th 3.50% 3.50% 7.00%
10th 3.50% 3.50% 7.00%
Total 50.0%

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O & M Payments
Each instalment of O&M Payment shall be adjusted as
per Price Index Multiple on the Reference Index Date
preceding the bid date and due date of payment . It
shall be:-

2% of the Project Cost for each of the 1st , 2nd & 3rd years of the
Operation Period,

3% of the Project Cost for each of the 4th, 5th & 6th years of the
Operation Period,

4% of the Project Cost for each of the remaining instalments of

Annuity Payments.

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 Aide Memoire of World Bank
September 21-25, 2015

Project Objectives, Size, financing, Overall

Project Management, components of the
projects & Overall Implementation arrangement
were discussed.

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 Aide Memoire of World Bank
February 22-26, 2016

Project Objectives, Size, Financing, Scope,

gauging Stakeholders interest, key actions,
over all implementation arrangements &
procurement plan were discussed.

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 Aide Memoire of World Bank
May 30- June 03, 2016

Financing and contract strategy, Strategic Road

Network (SRN), Institutional Strengthening,
Road safety & Land Acquisition issues were
discussed

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 Aide Memoire of World Bank
December 05-09, 2016

Institutional Strengthening, Social and

Environmental Aspects & Land Acquisition issues
were discussed

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 Aide Memoire of World Bank
December 05-09, 2016

Institutional Strengthening, Social and

Environmental Aspects & Land Acquisition
issues were discussed

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 Background
A project able to generate Equity IRR of
15% and Project IRR of 12% at financial
support of 40% of Total Project Cost (TPC)
considered viable on PPP(VGF). Such
projects can get 20% VGF support from
GoI.

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