Document of The World Bank FOR OFFICIAL USE ONLY Report No: ICR00004930 IMPLEMENTATION COMPLETION AND RESULTS REPORT 8066-IN, 8301-IN, 8513-IN ON LOANS OF US$975 MILLION, US$1,100 MILLION, AND US$650 MILLION TO INDIA AND THE DEDICATED FREIGHT CORRIDOR CORPORATION OF INDIA LIMITED FOR THE EASTERN DEDICATED FREIGHT CORRIDOR 1, EASTERN DEDICATED FREIGHT CORRIDOR 2, AND EASTERN DEDICATED FREIGHT CORRIDOR 3 27-Feb-2024 Transport Global Practice South Asia Region CURRENCY EQUIVALENTS (Exchange Rate Effective {Nov 30, 2023}) Indian Rupees Currency Unit = (INR) 83.08 = US$ 1 FISCAL YEAR April 1 – March 31 Regional Vice President: Martin Raiser Country Director: Auguste Tano Kouame Regional Director: Pankaj Gupta Practice Manager: Jung Eun Oh Task Team Leader(s): Saroj Ayush, Martha B. Lawrence ICR Main Contributor: Saurabh Sood ABBREVIATIONS AND ACRONYMS APL Adaptable Program Loan bn Billion C-ESMP Contractor’s Environmental and Social Management Plan CGFA Corporate Governance and Financial Accountability CII Confederation of Indian Industry COVID-19 Coronavirus Disease 2019 CPF Country Partnership Framework CSNDAD Consultancy Services for Non-Discriminatory Access Charges for DFCCIL CWT Civil Works and Tracks DDU Pandit Deen Dayal Upadhyaya Station DEA Department of Economic Affairs, Ministry of Finance, Government of India DFC Dedicated Freight Corridor(s) DFCCIL Dedicated Freight Corridor Corporation of India Limited DPE Department of Public Enterprises EDFC Eastern Dedicated Freight Corridor EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return EMF Environmental Management Framework EMP Environmental Management Plan EPC Engineering-Procurement-Construction contracts ERP Enterprise Resource Planning FIDIC Fédération Internationale des Ingénieurs-Conseils FY Financial Year GAAP Governance and Accountability Action Plan GBV Gender Based Violence GHG Green House Gas GNIDA Greater Noida Industrial Development Authority GOI Government of India GRM Grievance Redressal Mechanism GST Goods and Services Tax GTKM Gross Ton-Kilometer HHRI Heavy Haul Research Institute HSE Health, Safety and Environment ICONIS Integrated Control and Information System IR Indian Railways ISTA Institutional Strengthening and Technical Assistance ITMS Integrated Traffic Management System IUFR Interim Unaudited Financial Reports JNPA Jawaharlal Nehru Port Authority km Kilometer kmph Kilometer per hour MIGA Multilateral Investment Guarantee Agency MoR Ministry of Railways MoU Memorandum of Understanding MPA Multiphase Programmatic Approach NGO Non-Governmental Organization NPV Net Present Value NRP National Rail Plan NTKM Net Ton-Kilometer OCC Operations Control Center OHS Occupational Health & Safety OPRC Operations Procurement Review Committee PAP Project Affected Persons PDO Project Development Objective PMC Project Management Consultant QSAC Quality and Safety Audit Consultant RAP Resettlement Action Plan Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, and amendment to the Act via the Right to Fair RFCTLARR Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Amendment) Ordinance, 2015 RLP Rail Logistics Project RPF Resettlement Policy Framework SBD Standard Bidding Documents SCADA Supervisory Control and Data Acquisition SEMU Social and Environment Management Unit SESMRC Social and Environmental Safeguard Monitoring and Review Consultant SOE State Owned Enterprise SPV Special Purpose Vehicle SRAP Social Rectification Action Plan WDFC Western Dedicated Freight Corridor The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) TABLE OF CONTENTS DATA SHEET: EASTERN DEDICATED FREIGHT CORRIDOR 1 ...................................................... 1 DATA SHEET: EASTERN DEDICATED FREIGHT CORRIDOR 2 ...................................................... 6 DATA SHEET: EASTERN DEDICDATED FREIGHT CORRIDOR 3.................................................. 10 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ..................................................... 14 A. CONTEXT AT APPRAISAL ....................................................................................................... 14 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION .............................................................. 23 II. OUTCOME ....................................................................................................................... 25 A. RELEVANCE OF PDOs ............................................................................................................ 25 B. ACHIEVEMENT OF PDOs (EFFICACY) ...................................................................................... 25 C. EFFICIENCY ........................................................................................................................... 31 D. JUSTIFICATION OF OVERALL OUTCOME RATING .................................................................... 33 E. OTHER OUTCOMES AND IMPACTS ......................................................................................... 33 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 34 A. KEY FACTORS DURING PREPARATION ................................................................................... 34 B. KEY FACTORS DURING IMPLEMENTATION ............................................................................. 36 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 38 A. QUALITY OF MONITORING AND EVALUATION (M&E) ............................................................ 38 B. ENVIRONMENTAL, SOCIAL, FIDUCIARY AND PROCUREMENT COMPLIANCE ............................ 40 C. BANK PERFORMANCE ........................................................................................................... 42 D. RISK TO DEVELOPMENT OUTCOME ....................................................................................... 44 V. LESSONS AND RECOMMENDATIONS ............................................................................. 45 ANNEX 1A. RESULTS FRAMEWORK AND KEY OUTPUTS: EASTERN DEDICATED FREIGHT CORRIDOR 1 ........................................................................................................................ 48 ANNEX 1B. RESULTS FRAMEWORK AND KEY OUTPUTS: EASTERN DEDICATED FREIGHT CORRIDOR 2 ........................................................................................................................ 55 ANNEX 1C. RESULTS FRAMEWORK AND KEY OUTPUTS: EASTERN DEDICATED FREIGHT CORRIDOR 3 ........................................................................................................................ 63 ANNEX 2A. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION: EASTERN DEDICATED FREIGHT CORRIDOR 1 ........................................................................................ 74 ANNEX 2B. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION: EASTERN DEDICATED FREIGHT CORRIDOR 2 ........................................................................................ 76 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) ANNEX 2C. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION: EASTERN DEDICATED FREIGHT CORRIDOR 3 ........................................................................................ 78 ANNEX 3. PROJECT COST BY COMPONENT ........................................................................... 81 ANNEX 4. EFFICIENCY ANALYSIS ........................................................................................... 82 ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ... 99 ANNEX 6. SUPPORTING DOCUMENTS ................................................................................ 101 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) DATA SHEET: EASTERN DEDICATED FREIGHT CORRIDOR 1 BASIC INFORMATION Product Information Project ID Project Name P114338 Eastern Dedicated Freight Corridor - I Country Financing Instrument India Investment Project Financing Original EA Category Revised EA Category Full Assessment (A) Full Asssment (A) Organizations Borrower Implementing Agency Department of Economic Affairs, Government of India Dedicated Freight Corridor Corporation of India Ltd. Project Development Objective (PDO) Original PDO The development objectives of the project are to: (a) provide additional rail transport capacity, improved service quality and higher freight throughput on the 343 km Khurja and Kanpur section of the Eastern rail corridor; and (b) develop the institutional capacity of the Dedicated Freight Corridor Corporation of India Limited to build and maintain the dedicated freight corridor infrastructure network. Revised PDO The Development Objectives of the Project are to: (a) provide additional rail transport capacity, improved service quality and higher freight throughput on the Khurja - Kanpur section and the Khurja – Dadri section of the Eastern rail corridor; and (b) develop the institutional capacity of DFCCIL to build and maintain the DFC infrastructure network. PDO as stated in the legal agreement The objectives of the Project are to: (i) provide additional rail transport capacity, improve service quality and higher freight throughput on the 343 km Khurja to Kanpur section of the Eastern rail corridor; and (ii) develop the institutional capacity of DFCCIL to build and maintain the DFC infrastructure network. 1 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) FINANCING Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 975,000,000 530,809,460 530,809,460 IBRD-80660 Total 975,000,000 530,809,460 530,809,460 Non-World Bank Financing 0 0 0 Borrower/Recipient 483,440,000 552,690,540 552,690,540 Total 483,440,000 552,690,540 552,690,540 Total Project Cost 1,458,440,000 1,083,500,000 1,083,500,000 KEY DATES Approval Effectiveness MTR Review Original Closing Actual Closing 31-May-2011 30-Dec-2011 08-Jun-2015 30-Jun-2017 31-May-2019 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 17-Nov-2015 110.92 Change in Project Development Objectives Change in Results Framework Change in Components and Cost Change in Financing Plan Change in Procurement 28-Jun-2017 240.95 Change in Components and Cost Change in Loan Closing Date(s) Cancellation of Financing Reallocation between Disbursement Categories Change in Implementation Schedule 18-Dec-2018 411.44 Cancellation of Financing Reallocation between Disbursement Categories Change in Implementation Schedule 25-Dec-2018 411.44 Change in Results Framework Change in Loan Closing Date(s) Change in Implementation Schedule 2 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) KEY RATINGS Outcome Bank Performance M&E Quality Moderately Satisfactory Moderately Satisfactory Modest RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 01-Oct-2011 Satisfactory Satisfactory .19 02 14-Apr-2012 Satisfactory Satisfactory .47 03 16-Oct-2012 Satisfactory Moderately Satisfactory .47 04 15-May-2013 Satisfactory Moderately Satisfactory 20.56 05 14-Dec-2013 Satisfactory Moderately Satisfactory 21.06 06 18-Jun-2014 Satisfactory Moderately Satisfactory 42.78 07 06-Sep-2014 Satisfactory Moderately Unsatisfactory 51.98 08 26-Nov-2014 Moderately Satisfactory Moderately Unsatisfactory 61.79 09 04-Jun-2015 Moderately Satisfactory Moderately Unsatisfactory 100.46 10 25-Sep-2015 Moderately Satisfactory Moderately Unsatisfactory 110.92 11 02-Dec-2015 Moderately Satisfactory Moderately Unsatisfactory 115.55 12 28-Jun-2016 Moderately Satisfactory Moderately Satisfactory 184.11 13 23-Nov-2016 Moderately Satisfactory Moderately Satisfactory 216.15 14 08-Jun-2017 Moderately Satisfactory Moderately Satisfactory 240.95 15 02-Jan-2018 Moderately Satisfactory Moderately Unsatisfactory 260.24 Moderately 16 12-Jun-2018 Moderately Unsatisfactory 325.24 Unsatisfactory Moderately 17 05-Dec-2018 Moderately Unsatisfactory 411.44 Unsatisfactory 18 31-May-2019 Moderately Satisfactory Moderately Satisfactory 498.90 3 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) SECTORS AND THEMES Sectors Major Sector/Sector (%) Transportation 93 Public Administration - Transportation 3 Railways 90 Industry, Trade and Services 7 Other Industry, Trade and Services 7 Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Private Sector Development 32 Jobs 32 Job Creation 32 Urban and Rural Development 32 Urban Development 32 Urban Infrastructure and Service Delivery 32 Rural Development 32 Rural Infrastructure and service delivery 32 Environment and Natural Resource Management 100 Climate change 100 Mitigation 100 ADM STAFF Role At Approval At ICR Regional Vice President: Isabel M. Guerrero Martin Raiser Country Director: N. Roberto Zagha Auguste Tano Kouame Director: John Henry Stein Pankaj Gupta Practice Manager: Michel Audige Jung Eun Oh 4 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Martha B. Lawrence, Atul Benedictus Eijbergen, Atul Task Team Leader(s): Agarwal, Sanjeev Deorao Agarwal, Nupur Gupta Moholkar ICR Contributing Author: Saurabh Sood 5 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) DATA SHEET: EASTERN DEDICATED FREIGHT CORRIDOR 2 BASIC INFORMATION Product Information Project ID Project Name P131765 Eastern Dedicated Freight Corridor - II Country Financing Instrument India Investment Project Financing Original EA Category Revised EA Category Full Assessment (A) Full Assessment (A) Organizations Borrower Implementing Agency Department of Economic Affairs, Ministry of Finance, Dedicated Freight Corridor Corporation of India Ltd. Republic of India Project Development Objective (PDO) Original PDO The development objectives of EDFC2 are to: (a) provide additional rail transport capacity, improved service quality and higher freight throughout on the 393 km Kanpur- Mughal Sarai section of the Eastern Dedicated Freight Corridor; and (b) develop institutional capacity of DFCCIL to build, maintain and operate the entire DFC network. Revised PDO The objectives of the Project are to: (i) provide additional rail transport capacity, improved service quality and higher freight throughput on the Khurja to Mughalsarai section of the Eastern Dedicated Freight Corridor; and (ii) develop Institutional capacity of DFCCIL to build, maintain and operate the entire dedicated freight corridor network. 6 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) FINANCING Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 1,100,000,000 653,633,549 653,633,549 IBRD-83180 Total 1,100,000,000 653,633,549 653,633,549 Non-World Bank Financing 0 0 0 Borrower/Recipient 550,000,000 0 0 Total 550,000,000 0 0 Total Project Cost 1,650,000,000 653,633,549 653,633,549 KEY DATES Approval Effectiveness MTR Review Original Closing Actual Closing 22-Apr-2014 16-Jan-2015 04-Sep-2017 31-Dec-2019 31-Dec-2020 RESTRUCTURING AND/OR ADDITIONAL FINANCING Amount Disbursed Date(s) Key Revisions (US$M) 01-May-2019 263.73 Change in Components and Cost 27-Dec-2019 350.92 Change in Loan Closing Date(s) Cancellation of Financing Reallocation between Disbursement Categories 29-Jan-2020 357.35 Change in Project Development Objectives Change in Results Framework Change in Components and Cost Change in Loan Closing Date(s) KEY RATINGS Outcome Bank Performance M&E Quality Moderately Satisfactory Moderately Satisfactory Modest 7 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 05-Aug-2014 Satisfactory Satisfactory 0 02 18-Feb-2015 Satisfactory Satisfactory 0 03 28-Jul-2015 Satisfactory Satisfactory 32.00 04 02-Dec-2015 Satisfactory Moderately Satisfactory 32.03 05 11-Jun-2016 Satisfactory Moderately Satisfactory 33.15 06 20-Dec-2016 Satisfactory Moderately Satisfactory 67.39 07 08-Jun-2017 Satisfactory Moderately Satisfactory 104.53 08 16-Jan-2018 Moderately Satisfactory Moderately Satisfactory 132.30 09 06-Dec-2018 Moderately Satisfactory Moderately Unsatisfactory 217.69 Moderately 10 04-Jun-2019 Moderately Unsatisfactory 281.07 Unsatisfactory Moderately 11 13-Dec-2019 Moderately Unsatisfactory 350.92 Unsatisfactory 12 22-Jan-2020 Moderately Satisfactory Moderately Satisfactory 357.35 13 14-Aug-2020 Moderately Satisfactory Moderately Satisfactory 492.82 SECTORS AND THEMES Sectors Major Sector/Sector (%) Transportation 100 Railways 100 Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Private Sector Development 32 Jobs 32 Job Creation 32 8 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Urban and Rural Development 64 Urban Development 32 Urban Infrastructure and Service Delivery 32 Rural Development 32 Rural Infrastructure and service delivery 32 Environment and Natural Resource Management 3 Climate change 3 Mitigation 3 ADM STAFF Role At Approval At ICR Regional Vice President: Philippe H. Le Houerou Martin Raiser Country Director: Onno Ruhl Auguste Tano Kouame Director: John Henry Stein Pankaj Gupta Practice Manager: Karla Gonzalez Carvajal Jung Eun Oh Saroj Ayush, Martha B. Task Team Leader(s): Benedictus Eijbergen Lawrence, Sanjeev Deorao Moholkar ICR Contributing Author: Saurabh Sood 9 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) DATA SHEET: EASTERN DEDICDATED FREIGHT CORRIDOR 3 BASIC INFORMATION Product Information Project ID Project Name P150158 Eastern Dedicated Freight Corridor-3 Country Financing Instrument India Investment Project Financing Original EA Category Revised EA Category Full Assessment (A) Full Assessnt (A) Organizations Borrower Implementing Agency Dedicated Freight Corridor Corporation of India Dedicated Freight Corridor Corporation of India Limited Limited (DFCCIL) Project Development Objective (PDO) Original PDO The PDO for EDFC3 is to: (a) provide additional rail transport capacity, improved service quality and higher freight throughput onthe 401 km Ludhiana- Khurja section of the EDFC; and (b) develop the institutional capacity of DFCCIL to build, maintain and managethe DFC infrastructure network. Revised PDO The PDO for EDFC3 is to: (i) provide additional rail transport capacity, improved service quality and higher freight throughput on the Ludhiana - Khurja and Kanpur - Mughalsarai section of the Eastern Dedicated Freight Corridor; and (ii) develop Institutional capacity of DFCCIL to build maintain and operate the entire dedicated freight corridor network 10 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) FINANCING Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 650,000,000 541,112,870 541,112,870 IBRD-85130 Total 650,000,000 541,112,870 541,112,870 Non-World Bank Financing 0 0 0 Borrower/Recipient 457,000,000 0 0 Total 457,000,000 0 0 Total Project Cost 1,107,000,000 541,112,870 541,112,870 KEY DATES Approval Effectiveness MTR Review Original Closing Actual Closing 30-Jun-2015 16-Feb-2017 11-Apr-2019 30-Nov-2021 31-Mar-2022 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 29-Jun-2020 173.85 Cancellation of Financing Reallocation between Disbursement Categories 30-Jun-2020 173.85 03-Sep-2021 316.31 Change in Project Development Objectives Change in Results Framework Change in Components and Cost Change in Loan Closing Date(s) Reallocation between Disbursement Categories Change in Legal Covenants KEY RATINGS Outcome Bank Performance M&E Quality Moderately Satisfactory Moderately Satisfactory Modest 11 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 28-Oct-2015 Satisfactory Satisfactory 0 02 21-Dec-2015 Satisfactory Satisfactory 0 03 11-Jun-2016 Satisfactory Satisfactory 0 04 23-Nov-2016 Satisfactory Moderately Satisfactory 0 05 19-May-2017 Satisfactory Moderately Satisfactory 18.90 06 26-Feb-2018 Moderately Satisfactory Moderately Unsatisfactory 21.61 07 01-May-2018 Moderately Satisfactory Moderately Satisfactory 36.55 08 05-Dec-2018 Moderately Satisfactory Moderately Satisfactory 49.71 09 04-Jun-2019 Moderately Satisfactory Moderately Satisfactory 84.96 10 18-Dec-2019 Moderately Satisfactory Moderately Satisfactory 118.90 11 04-Mar-2020 Moderately Satisfactory Moderately Unsatisfactory 143.93 12 14-Aug-2020 Moderately Satisfactory Moderately Satisfactory 173.85 Moderately 13 19-Feb-2021 Moderately Satisfactory 243.02 Unsatisfactory 14 04-Oct-2021 Moderately Satisfactory Moderately Satisfactory 316.31 SECTORS AND THEMES Sectors Major Sector/Sector (%) Transportation 100 Railways 100 Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) 12 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Private Sector Development 42 Jobs 32 Job Creation 32 Public Private Partnerships 10 Urban and Rural Development 64 Urban Development 32 Urban Infrastructure and Service Delivery 32 Rural Development 32 Rural Infrastructure and service delivery 32 Environment and Natural Resource Management 3 Climate change 3 Mitigation 3 ADM STAFF Role At Approval At ICR Regional Vice President: Annette Dixon Martin Raiser Country Director: Onno Ruhl Auguste Tano Kouame Director: Pierre A. Guislain Pankaj Gupta Practice Manager: Karla Gonzalez Carvajal Jung Eun Oh Benedictus Eijbergen, Atul Saroj Ayush, Martha B. Task Team Leader(s): Agarwal Lawrence ICR Contributing Author: Saurabh Sood 13 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL Context 1. At the beginning of the 21st century, Indian Railways (IR) operated the fourth busiest railway network in the world in terms of total traffic carried. However chronic and continuing under-investment in transport infrastructure had resulted in widespread capacity constraints and low levels of service quality in the country’s rail sector. Road transport, which had witnessed an increase in investments since the late-1990s advanced more rapidly than railways and accounted for nearly 65% of freight modal share and 90% of the passenger market in India during 2000-2005. However, increase in the price of oil and escalating concerns about Greenhouse Gas (GHG) emissions began to favor increasing use of rail transport. 2. During 2000-2010, IR faced serious constraints and challenges. While the Indian Railways had initiated several measures to improve operational and commercial performance of its rail freight operations which resulted in an operating surplus, this surplus significantly declined in 2009 due to the recession and a large salary increase awarded to government employees during the year. The operating ratio reached 92.1% in the financial year ending March 2011. IR had also been consistently losing market share in freight transport to trucking due to inadequate capacity and poor service quality. Such continuing inadequate rail freight capacity had forced freight to move by uneconomic alternative modes of transport which imposed high avoidable cost on the Indian economy and increased environmental impact, as alternative modes are less energy efficient than rail and far more polluting. The “Golden Quadrilateral” routes connecting Delhi, Mumbai, Chennai, and Kolkata, which were the most congested rail routes accounted for 16 percent of the network’s route length and carried more than 60 percent of the IR’s freight volume. The mixed corridors where Mail, Express and Passenger trains share the same track with freight trains and take precedence over freight movement had resulted in the relatively low average speed of approximately 23.8 kmph1 for freight trains on the IR network. Such low speed of freight trains and the fact that freight tariffs on the IR network were some of the highest in the world, resulted in higher supply chain costs which, in turn, further resulted in loss of modal share for rail in India. 3. In 2010, the Indian economy experienced a recovery from the global financial crisis of 2007-2008 with GDP growth of eight percent in fiscal year 2009-2010. To achieve sustained high economic growth over the medium-to- long term, Government of India (GOI) set an infrastructure investment target of US$1 trillion in the Twelfth Five Year Plan (2012-2017). This included investments in the rail network, whose main corridors were severely congested. In addition to infrastructure improvements, GOI was committed to sector reforms to reduce subsidies for public services and improve efficiency and quality of public service delivery in the rail sector. Over the past years, IR had implemented many successful operational and commercial performance improvements to regain freight modal share, but additional sustained and significant improvements could only be achieved through large-scale capacity expansion especially for freight. The Bank supported IR in evaluating alternatives for network capacity enhancement through development of Dedicated Passenger Corridors (DPC), Existing Line Improvements (ELI) (i.e., augmenting the existing network by laying quadrupled lines), and development of Dedicated Freight Corridors (DFC). 4. To relieve severe network capacity constraints, serve rapidly growing demand for freight, facilitate economic growth, prevent large-scale disruption to running traffic, avoid challenges in land acquisition in and around urban 1 https://dfccil.com/upload/CP_17_22__Jan_18.pdf - accessed on 01-February-2024 14 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) centers, and reduce the carbon intensity of India’s transport sector2, GOI approved an IR proposal to establish dedicated freight-only lines parallel to the existing Golden Quadrilateral mixed-traffic routes. In addition to expanding freight capacity, such dedicated freight-only lines were also envisaged to facilitate enhanced passenger services on existing IR routes where service suffered due to the mixing of faster passenger services with slower freight traffic. The diversion of freight to the DFCs on trunk routes would lower logistics costs, integrate industrial corridors, increase operational efficiency of rail transport, and decrease energy consumption.3 5. By development of such DFCs, MoR and IR aimed to reduce the unit cost of transportation with higher speed of freight trains, better turnaround of wagons (improving wagon productivity), increased payload to tare ratio by introducing high axle load wagons on the rail network, enhanced locomotive utilization and improved specific fuel consumption. For industry, the DFCs were envisaged to be instrumental in reducing inventory requirements and enabling private sector participation in the development of freight terminals to bring in world-class efficiency in freight transportation and help IR tap new streams of commodities4. At the same time, the Program involved significant monetary risk, institutional, and organizational complexity, large-scale environmental and social safeguards challenges, a wide spectrum of diverse stakeholders, and other implementation and technological difficulties. 6. In view of the above factors and recognizing the need for a quantum jump in IR’s capacity to meet freight transport requirements for India’s long-term, sustained economic growth, GOI decided to introduce a fundamental shift in the traditional IR approach to new railway infrastructure development and service delivery. For this purpose, MoR and GOI embarked upon a long-term strategic plan to construct high-capacity, high-speed Dedicated Freight Corridors through an innovative model. For the first time in India’s rail sector, under a concession from the Ministry of Railways, a commercial and arms-length State-owned-Enterprise (SOE) independent from IR would be responsible for construction, operation, and maintenance of the DFCs. This concession entity (a publicly owned special purpose company) would provide access to IR and other qualified operators who would be responsible for freight operations. 7. GOI therefore established the Dedicated Freight Corridor Corporation of India Limited (DFCCIL) on October 30, 2006, under the Companies Act of 1956 as a Special Purpose Vehicle (SPV) wholly owned by the Ministry of Railways (MoR). DFCCIL’s mandate was to become a market-oriented, independent, commercial corporation to build and maintain the DFCs and offer non-discriminatory access to IR and other qualified operators. The relationship between IR and DFCCIL would be governed by the Concession Agreement5 between MoR and DFCCIL, and IR would pay DFCCIL track access charges for use of the DFC tracks by the Zonal Railways6’ freight trains. The Concession Agreement would be based on commercial principles and include utilization incentives for DFCCIL. Since most of the DFC traffic would come from and to the IR network, the Concession Agreement and traffic coordination was expected to be a crucial component for success of the DFCs. 2 Eastern DFC Greenhouse Gas Reduction Study prepared for DFCC by Ernst & Young, May 2010 estimated a 15% reduction in carbon intensity for EDFC. 3 Banerjee, Kallal (2022). Dedicated Freight Corridor (DFC): Current Scenario and Socio-Economic Benefit-An Analytical Study. [S.l.]: SSRN. – accessed via https://www.zbw.eu/econis-archiv/bitstream/11159/522446/1/EBP085807583_0.pdf 4 https://timesofindia.indiatimes.com/business/india-business/dedicated-freight-corridors-multiplier-impact-of- transformational-railway-project-for-india-watch-video/articleshow/101682366.cms?from=mdr 5 The Concession Agreement was signed between the Ministry of Railways and DFCCIL on 28th February 2014, after necessary reviews and approvals from the Railway Board, the Department of Economic Affairs (Ministry of Finance) and the Planning Commission. The Track Access Agreement formed part of the Concession Agreement. 6 India Railways’ main service delivery institutions are the zonal railways, which are vertically integrated infrastructure and train operations entities. 15 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) 8. The Dedicated Freight Corridor (DFC) program was planned to be implemented in phases: the first phase would cover the Western Dedicated Freight Corridor (WDFC) (connecting Rewari/Dadri-Jawaharlal Nehru Port Authority, (JNPA)) and the Eastern Dedicated Freight Corridor (EDFC) (connecting Dankuni-Khurja-Ludhiana, Khurja-Dadri). The Khurja – Dadri section was planned as the critical link between EDFC and WDFC and to provide customers in the eastern parts of the country access to ports on India’s west coast. The Western Corridor was financed by the Japan International Cooperation Agency (JICA) for a total length of 1,534 km. The World Bank (the Bank) financed the Eastern Corridor for a total length of 1,2007 km. More details on the Eastern Dedicated Freight Corridor Program are included in the Project Files, as mentioned in Annex 6 – Supporting Documents. Figure 1: Alignments of the EDFC and WDFC corridors 7At appraisal, the total length of the EDFC-1, EDFC-2 and EDFC-3 projects was 1,184 km based on the initial alignment and Detailed Project Reports. During construction, the alignments were modified to suit the terrain and existing railway yard connections which resulted in an increase of 16 kms in the total length. The final commissioned length of the three EDFC projects funded by the Bank is 1,200 km. (source: https://dfccil.com/Home/ProgressStatusImage) 16 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) 9. The Eastern Dedicated Freight Corridor (EDFC) covers a total distance of 1,816 km and extends from Ludhiana8 to Dankuni (Figure 1). At inception, the EDFC program was the largest and most complex public works project in India’s railway sector since independence. Prior to EDFC, IR construction procurement had traditionally relied on item-rate contracts which had been prone to delays and cost overruns. To deliver the Eastern Dedicated Freight Corridor projects (EDFC-1, EDFC-2, and EDFC-3), DFCCIL required to employ more effective procurement methods. GOI thus stipulated that the contracting arrangements should not be the traditional ones, and new approaches such as Public Private Partnerships or lump-sum Engineering-Procurement-Construction (EPC) type contracts be introduced. Eventually a modified contract type, the Design-Build Lump Sum contract was chosen. This method allowed introduction of international best practices and provided incentives to contractors to contain costs and speed up construction. As discussed in the section on Procurement, the Bank and DFCCIL chose the right contracting and procurement strategy which resulted in adequate competition and significant cost savings. 10. The financing of the EDFC corridor presented a key strategic and long-term opportunity for the Bank in supporting MoR and IR to improve construction efficiency and increase infrastructure productivity through innovation, introduce commercial operations by increased private sector participation, and implement institutional reforms through sustained capacity building in a vertically integrated rail market. The support to the EDFC program was intended to increase the railways share of the national freight market and thus reduce India’s logistics costs as well as fuel consumption thereby contributing directly to reduction in carbon emissions, which matched the Bank’s goal of promoting environment-friendly infrastructure, in particular reducing greenhouse gas emissions9 in the transport sector and increasing the country’s logistics efficiency. The program aimed to create one of the world’s largest heavy-haul freight operations, adopt proven advanced technologies and best practices, and serve as a pilot for innovations in India’s rail sector. The EDFC program represented the Bank’s support to create large-scale infrastructure and promote institutional capacity enhancement in the country’s rail sector after several decades. 11. The Bank loan was to address the financing gap (complementing support offered by other donors10) for the large and critical infrastructure investment for which commercial long-tenor loans were not readily available at that time. The EDFC program comprised of a significant component of Technical Assistance which was used to introduce several innovations for DFCCIL (for both EDFC and WDFC) and rail sector reforms within IR as well as strengthen DFCCIL’s institutional capacity for heavy haul network construction and operations. Besides being a program of national and strategic importance, the spatial and economic impact (direct and in-direct) as well as the expected long-term implications of the EDFC program were very high. 12. The 1,200-km length EDFC program (and specifically the EDFC-1 Project) was DFCCIL’s first implementation of a World Bank financed project in India’s rail sector which helped introduce many international best practices in the technical, fiduciary, safeguards, project management and sustainability components of EDFC. At the Program’s start, DFCCIL was a relatively new and lean special purpose vehicle which was to transition into a full-fledged commercial entity managing two mega public works programs (EDFC and WDFC). DFCCIL was tasked with developing both technical and operational capabilities to operate heavy haul freight systems in India. Given the many firsts of the Project and a new, lean DFCCIL, implementation was an extremely challenging yet rewarding experience because it would enable DFCCIL, IR, and the Indian construction industry to learn, adapt, improve, innovate, and create a model for others to follow. Table 1 highlights some of the unique characteristics and expected benefits of the DFC program: 8 These are the main cities cited in respective PADs to aid geographic understanding; the precise route sections are discussed in the text. 9 Clean, Safe, Affordable Transport, World Bank, 2007 10 Government of Japan had offered 450 billion yen to build the Delhi – Mumbai Western DFC 17 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Table 1: The EDFC Program – A Quantum Leap in Rail Infrastructure Development11. • The DFC program, which created one of the world’s largest heavy-haul freight operations network, was the largest and most complex public works project undertaken in India’s railway sector since independence. • The Government of India introduced fundamental changes in the traditional IR approach to new railway infrastructure by establishing an arms-length SOE (DFCCIL) that would operate under a Concession Agreement with IR. Significantly, the Dedicated Freight Corridors will bring about a paradigm shift in rail services, enabling multiple freight operators to use the tracks. • The EDFC Program has enabled DFCCIL to access USD 100 million in commercial financing with the support of a MIGA guarantee, which was made possible by the Concession Agreement that created the required revenue assurance for DFCCIL. • The electrified EDFC railway lines will allow freight trains to travel three times faster while pulling heavier loads. The quicker, cheaper, and more reliable movement of goods will contribute to reducing India’s inordinately high logistics costs and help bind the country into a single market. • DFCs will enable India to reduce its unduly high logistics costs from around 13-15 percent of GDP, helping it move towards the target of 8 percent, bringing them more in line with global standards. • Each kilometer-long freight train on the EDFC will replace around 72 trucks on average, thereby easing congestion on India’s overcrowded roads and highways, and make the roads safer. • The decongestion of roads along stretches parallel to EDFC will save India around Rs 4.9 billion in logistics costs, with additional benefits of Rs 2.4 billion accruing from reduced pollution. • Besides, the move from diesel-operated trucks to electrified rail, together with the shift from older railway lines to the energy-efficient corridor, will reduce India’s fossil fuel consumption and lower its carbon footprint. The EDFC is expected to reduce about 13.19 million tons of GHG emissions by 2041- 42, a reduction of 55 percent of GHG emissions from 23.29 million tons. • Number of passenger trains on Khurja – Kanpur (EDFC-1) section increased from 69 (baseline, during project preparation) to 128 (after section commissioning), thereby signifying additional capacity availability for passenger trains on the parallel IR network. • The EDFC program has generated about 9 million days of employment during project implementation. 13. The EDFC Program and the Adaptable Program Loan (APL) concept for EDFC-1 were aligned with the Bank’s Country Strategy for India (2009-12), specifically with the objectives of “achieving rapid inclusive growth” and “help remove infrastructure constraints”. The subsequent projects (EDFC-2 and EDFC-3) were likewise aligned with the Bank’s ‘Country Strategy for India (2009-12)’ and the Bank’s Country Partnership Strategy for India for the period FY 2013-17 respectively. The World Bank’s Country Partnership Strategy for India 2013-17 spelled out the Bank’s plans to support integration, transformation, and inclusion by driving enhanced transport connectivity, reduction in greenhouse gas emissions, and release of passenger transport capacity on existing IR network. 14. The World Bank funding for EDFC was operationalized as a series of three projects: EDFC-1, EDFC–2, and EDFC– 3, to be delivered sequentially but with considerable overlap in their construction schedules. Infrastructure creation and institutional capacity building through this Program was proposed in a phased manner across the three projects. 11 https://www.worldbank.org/en/news/feature/2021/01/12/india-takes-a-quantum-leap-in-building-new-freight-corridors 18 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) At appraisal for EDFC-1, Bank financing for EDFC-1, 2 and 3 was planned as an APL in three phases. Each phase of the APL was proposed to be a loan for one of the three sections and a continuing, overarching program of institutional strengthening and capacity building for DFCCIL. The sequence of these APL loans was envisaged as: APL1 for the Khurja – Kanpur section; APL2 for the Kanpur – Deen Dayal Upadhyaya Station12 (DDU, formerly Mughalsarai Station) section; and APL3 for the Ludhiana13 – Khurja section, with about a one-year lag between these APL phases. The Bank’s FY2013 investment lending reform, which included a gradual phasing out of APLs, resulted in the EDFC-2 and EDFC-3 projects being approved as standalone projects. The three loans and the sections of EDFC that they originally financed are shown in Table 2 below. Table 2: IBRD Loans for the EDFC Projects Length Original Actual Number of at Approval IBRD Loan Disbursement Original Loan Loan Section Tracks appraisal Date Amount (US$ million) Closing Date (km) (US$ million) • Khurja- Kanpur • Double 343 May 31, EDFC-1 975 530.81 June 30, 2017 • Khurja- • Double 47 2011 Dadri • Kanpur- April 22, December 31, EDFC-2 • Double 1,100 653.63 Mughal Sarai 393 2014 2019 • Khurja- June 30, November 30, EDFC-3 • Single 401 650 541.11 Ludhiana 2015 2021 Total 1,18414 2,725 1,725.55 15. The three projects were managed by GOI as a single program with the same program development objectives. GOI used the flexibility of the program to shift project activities among the three projects to use loan savings and better manage project schedules. As discussed in the subsequent sections of this document, starting in 2015, the GOI sought to restructure the loan program to reduce commitments and better match the World Bank financing to the timing of the program’s financial requirements. This was accomplished by closing each of the loans before the construction of its original section completed, cancelling the unused funds, and shifting its components to subsequent loans in the series. 12 The Government of India changed the name of Mughalsarai station to Deen Dayal Upadhyay Station in August 2017. For consistency of narrative in this document, the station is referred to as - Deen Dayal Upadhyay Station (DDU) – unless quoting for a pre-2017 document, in which case the station is referred to as Mughalsarai Station. 13 These are the main cities cited in respective PADs to aid geographic understanding; the precise route sections are discussed in the text. 14 The total commissioned length is 1,200 km. (source: https://dfccil.com/Home/ProgressStatusImage) 19 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Theory of Change (Results Chain) 16. The Theory of Change of the EDFC Program is presented in Figure 2. Figure 2: EDFC Program Theory of Change Project Development Objectives (PDOs) 17. The Development Objectives of the EDFC Program were to meet the growing freight and passenger demand on the Eastern Corridor with an improved level of service and develop institutional capacities of DFCCIL to build, maintain and manage the entire network. The Project Development Objectives (PDOs) of the three EDFC projects at appraisal are summarized in Table 3. 20 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Table 3: Project Development Objectives for EDFC-1, EDFC-2, and EDFC-3 Projects at Appraisal EDFC Project PDO - Objective 1 PDO - Objective 2 Provide additional rail transport capacity, improved service quality and higher freight Develop the institutional capacity of DFCCIL to EDFC-1 throughput on the 343 km Khurja to Kanpur build and maintain the DFC infrastructure network section of the Eastern rail corridor Provide additional rail transport capacity, improved service quality and higher freight Develop the institutional capacity of DFCCIL to EDFC-2 throughput on the 393 km Kanpur – Mughal build, maintain and operate the entire dedicated Sarai section of the Eastern Dedicated Freight freight corridor network Corridor Provide additional rail transport capacity, Develop the institutional capacity of DFCCIL to improved service quality and higher freight EDFC-3 build, maintain and manage the DFC infrastructure throughput on the 401 km Ludhiana - Khurja network. section of the Eastern DFC Key Expected Outcomes and Outcome Indicators 18. At appraisal, the PDO outcomes were to be measured by the indicators shown in Table 4. The indicators for EDFC–2 mirrored those of EDFC-1, except that the number of new passenger services on existing lines was omitted, as it was decided that such impact could not be realistically attained within the relative brief period of the project. The indicators for EDFC-3 mirrored those of EDFC-2. Table 4: PDO Level Results Indicators for EDFC-1, EDFC-2, and EDFC-3 Projects at Appraisal EDFC Indicators for measuring achievement of PDOs Indicators for measuring achievement of PDOs Project for Objective 1 for Objective 2 • Additional freight train paths on DFC (pairs/day) • Average Speed of freight train on DFC (Kmph) EDFC-1 • Increased number of express passenger train -- on section • DFC Freight Traffic (GTKM bn ton) • DFC Freight Traffic (NTKM bn ton-km) • Additional freight train paths on EDFC (pairs/day) EDFC-2 • Freight traffic carried on the EDFC (NTKM • DFCCIL MoU (with MoR) rating billion / year) • Average speed of freight trains (kmph) 21 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) • Additional freight train paths on EDFC-3 (pairs per day) • Freight traffic carried on the EDFC-3 (net EDFC-3 • DFCCIL MoU (with MoR) rating billion ton-km per year) • Average speed of freight trains on EDFC-3 (km per hour) Components 19. The components of the EDFC Program and the three EDFC projects at appraisal are summarized in Table 5. Table 5: Project Components of EDFC–1, EDFC–2 and EDFC–3 At Appraisal EDFC Project Component – A Component – B Design, construction, and commissioning of the Khurja–Kanpur section: This component Institutional development to assist DFCCIL and will construct 343 km of double track EDFC-1 MoR to develop their capabilities to best utilize electrified railway capable of freight train heavy haul freight systems. operation with 25-ton axle loads at 100 km/h. Design, construction, and commissioning of the Kanpur-Mughal Sarai section of the Eastern DFC consisting of 393 km of double- Continuing the provision of institutional support EDFC-2 track electrified railway designed for to assist DFCCIL to develop its capability to best freight only train operations with 25-ton utilize heavy-haul freight rail systems. axle-load (upgradable to 32.5-ton axle loads) at 100 km/h. Design, construction, and commissioning of the Ludhiana-Khurja section of the Continuing development of DFCCIL’s/IR’s Eastern DFC consisting of 401 km of single- institutional capacity to build, maintain and track electrified railway with 1500 m manage DFC lines including both technical crossing loops at approximate 10 km assistance and ancillary works and equipment EDFC-3 intervals, designed for freight only train focusing on supporting three priority areas of operations with 25-ton axle-load operational management, commercial (upgradable to 32.5-ton axle loads) at management (including private participation) maximum speed of 100 km/h. The DFC lines and environmental management. are being built to carry bulk freight trains of 6,000 or 12,000 gross tons. 22 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) B. SIGNIFICANT CHANGES DURING IMPLEMENTATION Revised PDOs and Outcome Targets, Revised PDO Indicators and Revised Components Table 6 lists the loan cancellations undertaken during the various restructurings of the EDFC program. Table 6: Loan Cancellations during Project Restructuring Month of Restructuring for Reasons for loan cancellations EDFC-1, 2 & 3 EDFC-1 • Cancellation of financing of USD 175 million due to loan savings on exchange rate, June 2017 unused project preparation advance and competitive bidding. December 2018 • Cancellation of financing of USD 245 million due to loan savings on exchange rate. EDFC-2 • Cancellation of financing of amount USD 250 million due to loan savings on account December 2019* of exchange rate, and reducing loan commitments to match the timing of disbursements. EDFC–3 • Cancellation of USD 90 million in financing on account of loan savings on account June 2020* of exchange rate and repurposing due to the COVID-19 pandemic. *The short-fall in financing to complete the project construction for EDFC-2 and 3 was taken up under the Rail Logistics Project15. EDFC-1 20. The November 2015 restructuring, the first restructuring during project implementation of EDFC-1, revised the PDO Objective 1 to include the 47-km Khurja-Dadri section while Objective 2 remained unchanged. The Khurja-Dadri section was originally planned to be financed in EDFC-3 and was shifted to EDFC-1 to utilize the loan savings arising in EDFC-1 due to depreciation of the rupee. Having the Khurja-Dadri section constructed and commissioned sooner would enable early integration of the EDFC with the WDFC and expedite the EDFC program. The PDOs were revised to: (i) provide additional rail transport capacity, improved service quality and higher freight throughput on the Khurja-Kanpur section and the Khurja-Dadri section of the Eastern rail corridor; and (ii) develop the institutional capacity of DFCCIL to build and maintain the DFC infrastructure network. This restructuring also revised the target values of two PDO indicators, namely, DFC freight traffic (GTKM bn ton) and DFC freight traffic (NTKM bn ton-km), to reflect addition of the 47-km Khurja-Dadri section. These revised PDO indicators included: (i) DFC freight traffic (GTKM bn ton) 50.1 in year 2021-22 from the earlier target value of 46.5 in 2021-22; and (ii) DFC freight traffic (NTKM bn ton-km) 32.5 in year 2021-22 from the earlier target value of 15 Rail Logistics Project (P177856) 23 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) 29.5 in 2021-22. This restructuring expanded Component 1 to include the design, construction, and commissioning of the 47-km Khurja-Dadri section. The World Bank funding percentage for Category 1: Goods, Works, Consultants’ Services and Training under Component 1 was increased from 66 to 80 percent. 21. The second restructuring of EDFC-1, which was approved in June 2017, extended the project completion date by 18 months, and canceled US$175 million due to loan savings on exchange rate, unused project preparation advance, and competitive bidding which resulted in around 14 percent cost savings for EDFC-1 packages under the Design-Build lump-sum contract. 22. The December 2018 restructuring of EDFC-1 resulted in the extension of the loan closing date from December 31, 2018, to May 31, 2019, and the cancellation due to loan savings of US$245 million on exchange rate. This extension was to allow construction of the Khurja – Kanpur section of the line to be substantially completed and to bring the project to a logical conclusion. EDFC-2 23. The first restructuring of EDFC-2 in December 2019 was to cancel US$250 million from the loan and to extend the loan closing date from December 31, 2019, to January 31, 2020, as well as to reallocate the remaining loan amount between the disbursement categories. The cancellation of financing was on account of loan savings due to exchange rate and because of reducing loan commitments to match the timing of disbursements. 24. The second restructuring of EDFC-2 in January 2020 resulted in a change in Objective 1 of the PDO from “a) provide additional rail transport capacity, improved service quality and higher freight throughout on the 393 km Kanpur- Mughal Sarai section of the Eastern Dedicated Freight Corridor;” to “(i) provide additional rail transport capacity, improved service quality and higher freight throughput on the Khurja to DDU section of the Eastern Dedicated Freight Corridor”. It also revised the Intermediate Results Indicators (IRIs) for (i) Physical construction – civil works (Kanpur – Mughal Sarai section) and (ii) Physical construction – system works (Kanpur – Mughal Sarai section). At the time of EDFC-1 loan closing in May 2019, the remaining activities of the Khurja-Kanpur section, namely remaining civil works of the Bhadan-Bhaupur section and integrated testing and commissioning, were transferred to EDFC-2. EDFC-3 25. The June 2020 restructuring reduced the original IBRD Loan amount from US$650 million to US$560 million due to the cancellation of US$90 million from the EDFC-3 loan on account of loan savings due to exchange rate fluctuations and repurposing due to the COVID-19 pandemic. This cancellation also resulted in a reallocation of the remaining loan between disbursement categories and a revision of the disbursement estimates. 26. The September 2021 restructuring revised PDO Objective 1 and the relevant PDO indicators to include the completion of the Kanpur – DDU section of EDFC-2. The revised PDO for Objective 1 of the project was: “(i) provide additional rail transport capacity, improved service quality and higher freight throughput on the Ludhiana – Khurja and Kanpur – DDU section of the Eastern Dedicated Freight Corridor”. The restructuring added new PDO indicators for the Kanpur – DDU section and an indicator on the percentage of grievance received from Project Affected Persons (PAPs) that were resolved withing three months of receipt. It also revised the components and costs due to the shifting of the remaining activities associated with the Kanpur – DDU section of EDFC-2. The closing date of the EDFC-3 loan was revised from November 30, 2021, to March 31, 2022. 24 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Rationale for Changes and Their Implication on the Original Theory of Change 27. Restructuring of the three EDFC projects enabled the Bank to engage effectively with GOI in developing heavy-haul freight rail in India and undertake timely course corrections during the long tenure of the EDFC program, as well as to utilize Bank financing for EDFC more efficiently. These changes ensured that the Theory of Change would be realized, albeit with delay. II. OUTCOME A. RELEVANCE OF PDOs 28. At the time of loan closing for the EDFC Program (i.e., loan closing for EDFC-1 in May 2019, for EDFC-2 in December 2020, and for EDFC-3 in March 2022) the PDOs remained highly relevant to the World Bank Group’s India CPF for FY18–FY2216 (Report No. 126667-IN). The PDOs are aligned with Pillar 2 of the CPF Focus Areas and Objectives pertaining to “Enhancing Competitiveness and Enabling Job Creation”, Objective 2.3 “Improve connectivity and logistics”, which focuses on developing multi-modal transport with a greater emphasis on sustainable market-oriented institutions, asset management strategies, and logistics supply chain infrastructure. 29. MoR, in its National Rail Plan17 (NRP) 2030 - 2051 document, carries forward GOI’s vision of developing dedicated high-speed, high-axle-load carrying corridors for freight transportation along with multi-modal logistics infrastructure over the next three decades. As part of the NRP, MoR has proposed three green-field DFCs which underline the continuing significance of DFCs in the rail freight sector. The EDFC program, as part of the national DFC program, has remained a GOI priority and was included in India’s Nationally Determined Contributions (NDC) for the Paris Climate Agreement because of its expected positive impact on environmental sustainability. Assessment of Relevance of PDOs and Rating The relevance of the PDOs is rated High. B. ACHIEVEMENT OF PDOs (EFFICACY) Assessment of Achievement of Each Objective/Outcome Objective 1 30. For the overall EDFC program (and for each of EDFC-1, EDFC-2, and EDFC-3 projects), Objective 1 was to: (i) provide increased rail transport capacity; (ii) improve service quality; and (iii) achieve higher freight throughput along the EDFC. The extent of achievement of the targets of the PDO indicators for Objective 1 under each project is shown in Table 7. 16 A Performance and Learning Review for the India CPF is under preparation and is expected to propose a 2.5-year extension. 17 National Rail Plan 2051, Final Report, August 2021 of the Ministry of Railways 25 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Table 7: Achievement of PDO Indicator Targets for Objective 1 Indicator Section Project Baseline Target Actual Current^ Achieved at Completion Capacity Indicators Khurja-Kanpur & EDFC-1 0 100 0 100 Additional Khurja – EDFC-2 freight train Dadri* paths EDFC-2 Kanpur-DDU 0 100 0 100 (pairs/day) EDFC-3 Khurja- EDFC-3 0 23 0 23 Ludhiana Increased Khurja - number of Kanpur EDFC-1 express & 69 NA NA 128-1361 EDFC-2 passenger trains Khurja – on section Dadri* Service Quality Indicators Khurja-Kanpur & EDFC-1 25 60 NA 572 Khurja – EDFC-2 Average speed Dadri* of freight train EDFC-2 (kmph) Kanpur-DDU 25 60 NA 473 EDFC-3 Khurja- EDFC-3 25 60 NA 414 Ludhiana Throughput Indicators Khurja-Kanpur & EDFC-1 18 32.5 0 17.315 Khurja – EDFC-2 Net TKM Dadri* (billions) EDFC-2 Kanpur-DDU 0 22 0 19.845 EDFC-3 Khurja- EDFC-3 0 22 0 0.746 Ludhiana Khurja-Kanpur Gross TKM EDFC-1 & Khurja – 0 50.1 0 30.535 (billions) EDFC-2 Dadri* 26 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Notes: ^ At time of ICRR preparation * Khurja – Dadri was implemented under EDFC-1 only 1 Number of passenger trains on the sections (excluding freight and other trains) (2022-23). 2 Average speed since line commissioned (2+years) 3 Average speed since line commissioned (4 months) 4 Average speed during testing & commissioning (4 months) 5 First Ten months of FY2023-2024, annualized. 6 Three months of FY2023-24, annualized. Increase in Capacity 31. Increase in rail transport capacity was measured by an increase in freight train paths over existing freight train paths on the IR network.18 The targets of creating additional capacity for 100 freight train pairs in Khurja- Kanpur, Kanpur-DDU, and Khurja-Dadri sections and 23 freight train pairs in the Khurja-Ludhiana section were achieved. For example, prior to commissioning of EDFC-1 (in November 2020), the Kanpur – Khurja section of the IR network witnessed an average 32 freight train pairs. The commissioning of EDFC-1 increased the freight train capacity by an additional 100 freight train pairs between Kanpur and Khurja over EDFC. The project has thus fully achieved the objective of creating additional rail transport capacity over the existing capacity of the IR network. 32. During 2022-23, the indicator ‘Increased number of express trains on section’ achieved between 128 and 136 passenger trains between the Kanpur – Khurja and the Khurja-Dadri sections of IR network19. As an increasing number of IR freight trains are transferred to the EDFC corridor, the capacity available for operating passenger trains on the parallel IR section is expected to increase further. Thus, the project has achieved the capacity enhancement objective. Improved Service Quality 33. IR’s prioritization of passenger trains over freight trains used to result in slow and unreliable freight services. The presence of multiple level-crossings along the IR network used to further delay freight services. The DFCs permit continuous, uninterrupted, and reliable train services that would not have been possible over the highly dense and congested mixed passenger and freight lines of the IR network. Against the baseline speed of 25 kmph of IR freight trains, freight trains the Khurja – Kanpur DFC section have averaged 57 kmph for the more than two years that the line has been in operation; this is five percent lower than the target. On the Kanpur - DDU section, freight trains have been operating at an average of 47 kmph in the first four months of its operation, i.e., about 22 percent below the 60 kmph target. During the testing and commissioning phase of the Khurja – Ludhiana DFC section, freight trains have been running at an average of 41 kmph. After commissioning in October 2023, the average speed on this section is expected to be similar or faster. The average speeds across EDFC-1, 2 and 3 are expected to increase further and achieve/exceed the targets, as traffic ramps up and as the complete length of the EDFC corridor is commissioned. 18 In EDFC-1, throughput was also measured by the number of express trains that could operate on the parallel IR line, once traffic was shifted to EDFC. However, a meaningful target for that indicator was never set. Currently IR is operating 59-102 passenger trains at various sections on the IR line parallel to the EDFC Khurja-Kanpur section. 19 Source: IR Line Capacity statements, mid-section volumes 27 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Higher Freight Throughput 34. As per the Concession Agreement signed between IR and DFCCIL, IR is obligated to transfer at least 70 percent of the traffic from the parallel IR lines during each year after the DFC is commissioned. Such traffic would form the baseline traffic for EDFC. The Concession Agreement also incentivizes DFCCIL to develop new traffic along the corridors. To attract newer traffic, DFCCIL plans to develop around 20 rail freight terminals along WDFC and EDFC to transport containers, food products and construction materials. These measures are expected to further boost throughput on the EDFC network. In addition, the Ministry of Ports, Shipping and Waterways has announced a new mega-port at Vadhavan20, to be located around 160 km north of JNPA. The new major port is also expected to increase freight traffic along WDFC and the Khurja-Dadri section of EDFC. 35. Increase in throughput was measured by the net ton-km transported over the corridor.21 When the Khurja- Dadri section was added to EDFC-1, this section was anticipated to add around 12.5 billion NTKM of traffic to the network, as this section forms the critical link between EDFC and WDFC and provides customers in the eastern parts of the country access to ports on India’s west coast. However, construction of WDFC to the Jawaharlal Nehru Port (JNPA) on the country’s western coast is yet to be completed. As a result, traffic in FY 2023-2024 is expected to be less than 1 billion NTKM. As on January 31, 2024, traffic was in the ramp-up stage after the delayed commissioning of the EDFC projects. Annex 4: Efficiency Analysis depicts the expected ramp up in traffic over the EDFC, based on the shift of traffic from the IR lines and growth in the transport of specific commodities. The throughput on the EDFC-1, 2, and 3 corridors is on track to exceed the original target, albeit with a delay of a few years. 36. Achievement of Objective 1: The commissioning and operations of EDFC-1, 2 and 3 have created significant rail capacity in the region with the average speed of trains nearing the target speeds at project completion; the speed targets are expected to be achieved in the short-term. Freight trains will be able to travel at three times the speed compared to the average speed on the IR network and carry more than twice the load using trains that would be double the length of trains running on the IR network22. The planned EDFC throughput is expected to be achieved on completion of WDFC and will be exceeded once the Vadhavan Port is operational. Taking these factors into account, Objective 1 is assessed as substantially achieved. Objective 2 37. Objective 2 was to be achieved through a combination of hands-on support, regular staff trainings and a detailed Technical Assistance program. DFCCIL’s institutional strengthening was planned and delivered across multiple domains including environmental and social safeguards management, procurement management, commercial management, operations management, and safety management, as well as training and capacity building of its workforce. These initiatives are discussed in the following paragraphs, and more details are provided in the Project Files, as stated in Annex 6: Supporting Documents. 20 https://timesofindia.indiatimes.com/business/india-business/as-ports-on-imeec-get-capacity-boost-vadhavan-port-set-to-be- countrys-biggest-on-corridor/articleshow/104091798.cms?from=mdr 21 In EDFC-1, gross ton-km was also added as an indicator in the restructuring that added the Khurja-Dadri section. This was not taken forward in EDFC-2 or EDFC-3. 22 https://www.indiatoday.in/india-today-insight/story/the-railways-dedicated-freight-corridors-thrice-as-fast-twice-the-load- 1754917-2020-12-31 28 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Institutional strengthening during the Construction phase 38. Environmental and Social Safeguards Management: The program supported DFCCIL’s overall capacity development in: (i) incorporating climate resilience in the design standards; (ii) undertaking the first project level GHG assessment in the World Bank’s India portfolio; (iii) preparing and integrating for the first time a silicosis reduction strategy into bidding and contracting documents on a railway project in India; (iv) instituting the first environmental systems certification requirements in contracting documents in a World Bank financed project in India; and (v) creating the first Social and Environment Management Unit (SEMU) for a railway project in India. During the implementation of EDFC-2 and EDFC-3, the new Land Acquisition legislation introduced by the GOI (i.e., the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act) in September 2013 necessitated a steep learning curve and expanding DFCCIL staff capacity in field offices. Specific trainings on the World Bank Environmental and Social Safeguards Policies have created significant organizational capacity for DFCCIL to manage safeguards requirements. About 30 employees from DFCCIL’s headquarters and field offices, together with contractor’s environment and safety staff, participated in workshops organized by the Social and Environmental Safeguard Monitoring and Review Consultant (SESMRC) every year. The Bank supported study on climate resilience identified key climate risks for DFCs such as flooding, heat, and fog, and suggested measures for addressing these risks, which DFCCIL adopted and included in the designs and construction of the EDFC corridor. 39. Procurement Management: The EDFC program supported DFCCIL to develop institutional capacity in preparing, bidding, and contracting of India’s first Design & Build lump-sum contract of this size and nature in India’s railway sector. DFCCIL gained valuable institutional knowledge and experience in Design & Build lump-sum contracting, and the standard bidding documents prepared for EDFC-1 were then used in EDFC-2 and EDFC-3. Trainings on procurement and contract management, which formed an integral part of the institutional capacity building program, ensured the quality of the bid documents, as well as the integrity and efficiency of the bidding process. DFCCIL’s success has encouraged IR to adopt Design & Build lump-sum contracting for all its new infrastructure contracts. Details of procurement management are included in the Project Files, as indicated in Annex 6: Supporting Documents. 40. Commercial Management: The EDFC Technical Assistance and training program contributed to progressive building of institutional capacity in commercial business development in areas such as developing auxiliary logistics infrastructure along the DFC and attracting private participation), climate resilience (e.g., energy efficient technology), and research and development (e.g., establishing India’s Heavy Haul Research Institute). The TA program assisted in undertaking studies to enable DFCCIL to: (i) analyze and understand safety related aspects of the DFC program and their management; (ii) examine energy optimization options for the DFCs; (iii) develop specifications for heavy haul wagons and initiate their procurement; and (iv) assess alternative approaches to non-discriminatory access and develop a methodology for establishing track access. Marketing and commercial strategies were prepared for EDFC and its catchment areas, and these strategies are currently under implementation as part of the EDFC program and the on-going Rail Logistics Project. Institutional strengthening for the Operations & Maintenance phase 41. Operations Management: The EDFC program developed DFCCIL’s capacity in key areas of operational efficiency, safety, and market development. The program supported the preparation of DFCCIL’s Operating Manual, which enabled DFCCIL to operate and maintain DFCs and handle multiple train operators, rolling stock maintenance systems, environmental requirements, Occupational Health & Safety (OHS) requirements, and 29 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) undertake risk management. To facilitate computer-based control and monitoring of trains, signaling, and traction power systems over EDFC, DFCCIL has created the world’s second largest Operations Control Center (OCC) in Prayagraj (formerly Allahabad). 42. Safety Management: The Safety Management System, developed using a risk management approach, includes a digitally enabled system over the entire corridor for disaster risk mitigation and is in use. Institutional strengthening for long-term impact 43. Heavy-haul rail infrastructure development and operations: An important element of Objective 2 involved: (i) DFCCIL’s evolution into an efficient and commercially oriented provider of heavy haul infrastructure services with the requisite capability, both in terms of staff and systems; and (b) provide DFCCIL and IR access to international technologies, tools, and best practices in heavy haul freight systems and commercial freight planning. The EDFC program supported the organization of the 10th International Conference of the International Heavy Haul Association (IHHA) in India during 201323. The Conference was attended by nearly 700 delegates from 21 countries and officers of Indian Railways and delved on the theme of “Sustaining Heavy Haul Operations by Best Practices” and helped showcase several global good practices that could be applied to India’s rail sector. The 2016 Heavy Haul Rail Capacity Development Plan developed by DFCCIL with World Bank’s support envisaged the establishment of a Heavy Haul Research Institute (HHRI), which would be responsible for implementing a long- term Heavy Haul Research, Development, and Application (HHRD&A) Program. The HHRI has been established in Noida with the objective of helping build capacity and improving operational efficiency of heavy haul rail systems in India. 39 executive trainees commenced their training in the institute during 2022-23 in the first batch24. IR utilized the outputs of a study on Heavy Haul Wagons for DFCs to purchase 2,500 higher axle-load wagons. 44. Supporting innovations across the DFC program: Innovations introduced during the EDFC program include: (i) executing the first lump sum Design-Build contract in a railway project; (ii) developing the first Design-Build standard bidding documents for railway civil and system works; (iii) applying mechanized track laying and mechanized installation of overhead equipment for the first time in India; (iv) implementing systematic safety management for the first time in a railway project in India; (v) undertaking the first project level GHG assessment in the World Bank’s India portfolio; (vi) preparing and integrating a silicosis reduction strategy in bidding and contracting documents on a railway project for the first time in India; and (vii) instituting the first environmental systems certification requirements in contracting documents in a World Bank financed project in India. Additional details about these technical innovations are included in the Project Files as mentioned in Annex 6: Supporting Documents. 45. Trainings imparted for staff capacity building. DFCCIL staff, whose numbers grew to 3,215 in 2022 from a baseline of 380 in 2011 benefited from a comprehensive capacity building program under the EDFC program. More than 600 trainings were organized for DFCCIL staff on governance, institutional strengthening, project finance and PPP, rail reforms, project management, logistics and supply chain management, procurement and contract management, financial management, social and environmental safeguards, engineering, disaster management, safety, labour law, land acquisition and resettlement, and Gender Based Violence (GBV) between 2018-19 and 2022-23. These trainings offered a balance between just-in-time support for project management and capacity building for business planning, attracting private financing, and resilient freight railway operations. 23https://ihha.net/past-conferences-ihha 24https://dfccil.com/images/uploads/img/DFC-Press-Release_MD-DFCCIL-inaugurates-Heavy-Haul-Institute- 11.07.2022_7U23.pdf - accessed 02-Feb-2024 30 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Additional details about institutional capacity building are included in the Project Files as mentioned in Annex 6: Supporting Documents. 46. Achievement of Objective 2: Achievement of Objective 2 was to be measured by the PDO Indicator “DFCCIL MoU (with MoR) rating”. The Concession Agreement, which was signed in February 2014, formalized the institutional arrangement of DFCCIL becoming an arm’s length independent commercial entity for building and maintaining the DFC assets and offering non-discriminatory access to qualified operators. It established the specific roles, rights, and obligations of DFCCIL and MoR and the framework for DFCCIL to construct and operate the DFC network efficiently and effectively. The Track Access Charges for train operators were conceptualized as part of the Concession Agreement and form the basis of DFCCIL’s revenue stream as an infrastructure manager. As such, this indicator was rated ‘Good’ throughout, signifying achievement of the target. 47. The EDFC program has substantially strengthened DFCCIL’s institutional capacity and helped the organization develop into a robust, growing company capable of managing large complex railway infrastructure projects using an advanced contracting model. Institutional strengthening and capacity building have also introduced DFCCIL (and indeed IR) to new ways of doing business in building, maintaining, and developing the EDFC assets, preparing commercial strategies, designing access charging principles, and developing Public-Private Partnership models. The outcomes of the overarching institutional strengthening program are expected to produce long-term positive impacts on DFCCIL’s business operations, future DFC projects and on the rail sector in India. As such, Objective 2 has been rated as fully achieved. Justification of Overall Efficacy Rating 48. Based on the substantial achievement of Objective 1 and full achievement of Objective 2, the efficacy of the EDFC program is rated Substantial. C. EFFICIENCY Assessment of Efficiency and Rating 49. Economic Efficiency. The main benefits of the Project are: (i) the economic advantages of transporting large quantities of strategic bulk freight that otherwise could not be carried or would have to be sent by road at high social and environmental cost; (ii) savings in IR’s operating costs due to improved efficiency of the DFC track (including freight and passenger traffic on the parallel routes); and (iii) savings in travel time of passengers due to faster movement of passenger trains on the existing track. Benefits are also derived from savings in carbon emissions (around 9.6 million tons of CO2 estimated to be saved between 2010 and 2045 under the EDFC program) and improved safety of passengers and freight moving by rail instead of on congested road networks. A detailed analysis was made of the traffic demand in the corridor for the three years to 2018-19 (the last year before the COVID-19 outbreak disrupted both rail traffic and economic activity more generally). During 2018-19, the principal westbound traffic on all sections was coal, being 85% of the tons carried between DDU and Allahabad, reducing until in the Punjab it only represents 57% of the traffic. A detailed discussion of economic efficiency is provided in Annex 4. 50. EIRR, NPV and Sensitivity Analysis. Economic analysis for the ICR followed the methodology at appraisal. Table 8 compares the results of the economic analysis at appraisal and at ICR. The base EIRR of 14 percent for such large program is considered good, despite it being lower than the projections at appraisal due to a 31 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) combination of implementation delays and resultant cost escalations, as well demand being lower than forecasts at appraisal. The lower demand vis-à-vis the demand forecast at appraisal is primarily because the WDFC section connecting to the Jawaharlal Nehru Port and the Sonnagar – Dankuni section of the EDFC are yet to be commissioned. As these sections get commissioned, traffic on the EDFC is expected to ramp up. Table 8: Economic Analysis EIRR (%) NPV INR Billion Base (at completion) for EDFC-1+2+3 14 113 Base (at appraisal) for EDFC-1 22 98 Base (at appraisal) for EDFC-1+2 22 208 Base (at appraisal) for EDFC-1+2+3 23 316 51. Design Efficiency. The program design was based on three principles: (i) modernizing India’s heavy haul infrastructure; (ii) delivering the EDFC program with high levels of confidence in schedule and cost; and (iii) building capacity in the delivery of high-quality heavy haul infrastructure and services. The design principles intended to achieve the right balance between infrastructure and institutional development. The program design borrowed from the lessons and successes in similar projects in China. The use of APL as the Bank financing instrument aligned the Bank’s strategic sectoral objectives with GOI policy on IR reforms. The program design enabled specific EDFC sections to be moved among EDFC-1, 2 and 3, and the implementation of a consistent and progressive technical assistance and training program. Although ambitious in scale and scope, including major institutional reforms and the application of new contracting and project management strategies, it was essential in supporting GOI’s vision of transforming India’s railway sector. 52. Implementation Efficiency. Despite significant investment in upfront planning and preparation, strong commitment, and support of GOI and the World Bank, the EDFC Program encountered delays. The large-scale land acquisition and resettlement that involved multiple local jurisdictions acquiring land, resettling, and compensating nearly 85,000 Project Affected Persons (PAPs) across 1,000 villages spread over 4 states and 1,200 km of the EDFC projects, modifications of alignment during project implementation, and a major change of land acquisition law were some of the reasons that contributed to implementation delays. The Bank mandated the use of QSAC and SESMRC which helped manage risks related to quality, safety, and adherence to safeguards, especially considering the size and complexity of the program. Innovations in construction, electrification, signaling and telecommunication, and project supervision benefited DFCCIL in ramping-up institutional capacity, and improved construction quality and operational efficiency. 53. The absence of standard bidding documents suited for a large-scale program, such as EDFC, resulted in a steep learning curve for the Bank. As a result, the first ever Design-Build lump sum contract in India and within the World Bank was drafted for EDFC-1. Preparation of these standard bidding documents by the Bank was one of the key reasons for a delay of over two years in procurement of the first three civil works contracts for EDFC-1. The reasons for delays are discussed in detail in the section on Procurement. These standard bidding documents for the Design-Build lump sum contracts were devised to encourage bidders to optimize their resources while ensuring equitable risk-sharing between DFCCIL and contractors, which resulted in more efficient pricing of bids and cost savings of 14 percent for the EDFC-1 packages. 54. The recurring waves of the COVID-19 pandemic stopped project implementation intermittently. New Standard Operating Procedures (SOPs) were developed, and preventative practices were implemented at work 32 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) sites during the pandemic for the health and safety of workers, and steps were taken to ease cash flow to contractors. Implementation efficiency was further enhanced through the Bank’s regular and sustained Implementation Support Missions and Mid-Term Reviews, as well as virtual missions during the COVID-19 pandemic. 55. On balance, the loan cancellations and extension of loan closing dates were unavoidable in such a large and complex program involving large scale infrastructure construction and transformational institutional reform. 56. Overall Efficiency. The overall efficiency of the Program is rated Substantial, considering that the projects have been commissioned and are commercially operational despite delays. The project design was ambitious, involving both transformational changes in the railway sector and the implementation of a very large infrastructure program with many innovative features. D. JUSTIFICATION OF OVERALL OUTCOME RATING 57. Despite the ratings of High for relevance and Substantial for both efficacy and efficiency, the overall outcome of the program is rated Moderately Satisfactory as some of the efficacy outcomes will take some more time to be fully achieved. E. OTHER OUTCOMES AND IMPACTS Gender 58.The EDFC Program benefited women through the resettlement action plans, which included a provision for supporting widows and single women as vulnerable people. For example, skills training was provided to women who were affected by the project: under EDFC-1, ten percent of the 693 PAPs who received vocational training were women. Of the female PAPs surveyed as part of the impact assessment study for EDFC-1, 76 percent said they did not face any difficulty in receiving compensation and resettlement assistance; 50 percent expressed satisfaction with the compensation and resettlement assistance compared to 40 percent men; and 63 percent stated that they are aware of the policy provisions for land acquisition and resettlement impacts. During focus group discussions with vulnerable PAPs, women expressed their satisfaction with the assistance received by female-headed households. Institutional Strengthening 59. Objective 2 of the Program is on developing the institutional capacity of DFCCIL. Achievement of this objective is discussed in the Efficacy section. 33 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Poverty Reduction and Shared Prosperity 60. The Program contributed to poverty reduction and shared prosperity by providing skills training, creating employment opportunities, and providing cash grants for livelihood losses, which resulted in improving the living standards of PAPs in the communities along the corridor. Key achievements (as of March 2022) include: (i) livelihood skills trainings and vocational trainings provided to 2,350 PAPs in areas such as electrician, fitter, and data entry; (ii) decrease in the number of projects affected families below poverty line from 63 percent at baseline to 23 percent at project completion25; and (iii) generation of about 9 million days of employment. Additional details about Social Safeguards Management are included in the Project Files as mentioned in Annex 6: Supporting Documents. Other Unintended Outcomes and Impacts N.A. III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME A. KEY FACTORS DURING PREPARATION 61. The Program design reflected lessons learned from previous railway projects in India and other geographies and provided flexibility to meet the changing policy and legal scenario during the three phases. The DFC program built on the Bank’s experience with a large portfolio in the transport sector and lessons from the Bank’s long and on-going experience with railway projects in China. The choice of the APL instrument allowed setting strategic sectoral milestones and enabled GOI to establish key medium-term policy and implementation benchmarks which may not have been possible otherwise. The Program was designed to support both EDFC infrastructure development as well as significant institutional strengthening of DFCCIL. 62. Each phase of DFC built on lessons learned during the earlier projects of the Program. Learnings from EDFC-1 were incorporated in design of EDFC-2, and learnings gained during the implementation of EDFC-1 & EDFC-2 were included in the design of EDFC-3, including the DFCCIL Human Resource Plan. The capacity of SEMU on environmental and social safeguards, and the engagement of an independent Quality Safety and Audit Consultant (QSAC) and Social and Environmental Safeguard Monitoring and Review Consultant (SESMRC) across the three EDFC projects also played a vital role in ensuring continued adherence to safeguards requirements by DFCCIL. 63. The use of the Design-Build lump sum contract structure was aligned with international best practices and was suited to the Indian context. Drafting of the new standard bidding and contracting documents for the Design-Build lump sum contract type combined and customized relevant key provisions from several existing World Bank Standard Bidding Documents (SBDs) and conditions of contracts published by Fédération Internationale des Ingénieurs-Conseils (FIDIC). The contract structure was developed following 25End-term Impact Evaluations of land acquisition and resettlement implementation conducted in 2019-20 through independent consultants for Khurja-Bhaupur section. 34 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) extensive stakeholder consultations. However, it required subsequent review and approval by the respective authorities in IR and the World Bank, which resulted in considerable delays during implementation. 64. Environmental and social aspects were diligently evaluated, and suitable mitigation measures were incorporated in Program design. Land acquisition and resettlement requirements were reduced by adjusting alignments to reduce impact on agricultural land and PAPs. The Environmental Impact Assessment (EIA) for EDFC-1 was the first such assessment on an IR project; IR was exempt from preparing EIAs and obtaining environmental clearances for its projects. The EDFC program incorporated the first project-level GHG assessment in the India portfolio. A silicosis reduction strategy to reduce the negative health impacts on construction workers due to silicosis from quarrying materials was prepared and integrated into bidding and contracting documents on an IR project for the first time. A Readiness Filter was adopted to ensure 80 percent of the land required for the project was encumbrance free at the time of award of the civil works contracts. A multi-stage public grievance redressal mechanism was included at appraisal, along with an Ombudsman to address grievances related to land acquisition. 65. The Program design adopted a robust governance mechanism to monitor quality during implementation. A comprehensive Corporate Governance and Financial Accountability Action Plan (CGFA) as well as a broader Governance and Accountability Action Plan (GAAP) were prepared to reduce corruption and improve governance through systems that enhance transparency and accountability. When GOI enacted the new Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act (RFCTLARR) in 201326, land acquisition for the EDFC-2 and EDFC-3 projects, along with the corresponding compensation, were modified to reflect the RFTCLARR Act. 66. The Program design adopted well-designed project components and incorporated enablers for augmenting institutional capacity. Lessons from the Bank’s large railway portfolio in other countries indicated that too many project components and limited client institutional capacity could negatively impact implementation. The Program design therefore included simple project components and focused on building DFCCIL’s institutional capacity. It envisaged engaging a General Consultant, a Civil Engineering Proof Consultant, a Design Review Consultant, and a Legal Advisor to assist DFCCIL in procurement activities; a Project Management Consultant (PMC) to supervise construction activities; an independent QSAC to monitor contractors’ quality and safety performance; and a dedicated Social and Environment Management Unit (SEMU) to monitor social and environmental safeguard performance and ensure compliance. In addition, an independent SESMRC was included to audit the implementation of environmental and social safeguards. 67. Readiness for operation was addressed at entry. Given that most of the expected EDFC traffic would originate from and be destined for points outside of the EDFC via the IR network, the Program’s legal covenants included provisions for the signing of a Concession Agreement at the start of project implementation and prior to the commissioning of facilities. Detailed planning for institutional capacity building, human resource planning, adherence to environmental and social safeguards, and overcoming potential challenges in land acquisition was an integral part of Program design. 26References to RFCTLARR in this document include the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act (RFCTLARR) passed during 2013 by the Government of India, and the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Amendment) Ordinance, 2015 passed by GOI during 2015 35 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) B. KEY FACTORS DURING IMPLEMENTATION (a) Factors subject to control of the government and/or implementing agencies 68. DFCCIL evolved as a capable organization for project implementation and subsequent operations. DFCCIL developed the required institutional capacity and successfully leveraged innovation and technology, while displaying robust administrative efficiency and management capacity. It worked closely with the central ministries, state governments, and the local administrations to overcome challenges in land acquisition, obtaining environmental clearances, and adherence to environmental and social safeguards, as well as in adopting design changes. 69. DFCCIL successfully introduced several technical innovations in construction, electrification, signaling and telecommunications, and Program supervision which not only accrued benefits to the EDFC and WDFC projects but are likely to benefit India’s rail sector going forward. These technical innovations were in areas of cost reduction, leaner workforce, increased productivity and throughput, better quality, and improved safety. 70. The Project experienced significant implementation delays. The main causes of such delays were: (i) slow pace of land acquisition due to the large number of stakeholders and the change in land acquisition law during the course of the Program; (ii) delays in bidding and long procurement cycle for civil works, track and systems contracts due to introduction of the new contract type; (iii) issues with contractors’ cash-flow due to the delayed land acquisition; (iv) absence of integrated hand-over of completed civil works and track works to Systems contractors; (v) program scale and overall complexity; (vi) challenges in resettlement and rehabilitation; (vii) inadequate performance of PMCs in construction management due to frequent changes of team leader(s) and lack of experience in managing Design-Build lump-sum contracts of this size and scale; (viii) differences of opinion between DFCCIL and the PMC during implementation; (ix) arbitration cases from contractors; and (x) the impact of the COVID-19 pandemic. Such delays in implementation resulted in project cost escalations. 71. Land acquisition proved to be a major issue. The new land acquisition law issued in 201327 required substantial upward adjustments to compensation packages and resulted in many complaints related to lower payments for land acquired prior to implementation of the new law. During implementation, delay in handing over encumbrance-free land severely impacted construction schedule and was considered a major delay- event for claims filed by the contractors. The introduction of the Readiness Filter for ensuring 80 percent of land availability proved inadequate as significant time was required to acquire the remaining 20 percent of land. Civil disturbances arising from non-payment or delayed payment of compensation to the villagers was another factor that severely impacted the construction schedule at select locations. 72. DFCCIL, with Bank support, ensured the effective and timely roll-out of social safeguards measures, including: (i) continuing with the NGO for RAP implementation almost till the end to address residual cases of compensation and assistance; (ii) strengthening the multi-level Grievance Redressal Mechanism (GRM), including through the setting up of an Interactive Voice Recording (IVR) system, that supplemented the complaint boxes placed at district offices; (iii) proactively addressing Gender Based Violence (GBV) issues through the preparation of a GBV risk mitigation plan that involved all workers’ signing the Code of Conduct and raising awareness among village communities by sponsoring street plays and reaching out to schools and colleges. 27 Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 36 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) 73. The Bank worked with DFCCIL to streamline the enforcement of safety management through existing contractual structure and organized safety workshops to educate staff and contractors on construction safety management and occupational safety; appointed dedicated safety assistant project managers; reinforced the role of the QSAC; implemented standard safety reporting across the EDFC program; created and maintained a comprehensive list of activities and safeguards compliance for sharing across the EDFC program; and conducted regular safety reviews. 74. Measures to strengthen governance were introduced in line with the GAAP/CGFA. The key achievements include: (i) strengthening the Board of DFCCIL with independent directors and the constitution of an Audit Committee; (ii) establishing an internal audit and enterprise risk management system under the oversight of the Audit Committee; (iii) setting up the disclosure policy and practices, including the hiring a Public Information Officer to manage and respond to requests filed under the Right to Information Act; (iv) creation of an online grievance submission portal and publishing grievance statistics online; (v) instituting regular monitoring through the PMC and the third party independent quality assurance entities, e.g., QSAC, SESMRC, and audit teams; and (vi) operationalizing an Enterprise Resource Planning (ERP) program to streamline processes, although a full and timely transition to ERP could not be achieved till Program closure. These advances in governance practices were a major step forward and significantly assisted in streamlining Program implementation. (b) Factors subject to World Bank control 75. While DFCCIL, contractors, and the Bank did not fully anticipate the challenges encountered during the execution of Design-Build contracts for such a mega program, these stakeholders cooperated closely to ensure successful implementation and completion of the program. The Bank and DFCCIL did not recognize that contactors required significant capacity building before and during the bidding process to ensure that the contractors suitably modeled adequate working capital and contingency fund requirements for long-term Design-Build lump sum contracts. During implementation, DFCCIL made efforts to address these challenges, including revising interim milestones in compliance with contract provisions, and in consultation with the Bank, DFCCIL partly released retention funds, expedited the billing and payment process, and assisted the contractors in completing milestone activities. In parallel, the contractors made joint efforts to better manage their construction schedules and working capital requirements. 76. Adequacy of Bank reporting & supervision: While the Bank’s team conducted regular Implementation Support Missions and Mid-Term Reviews during the Program; the Bank support was not limited to only formal missions. The Bank’s team supported the projects on a regular basis and throughout the complete duration of program implementation. The implementation support included frequent visits of the Bank’s senior management for discussions with DFCCIL officials and senior officials of MoR and GOI, and adoption of innovative mechanisms for incorporating benchmarking and comparative analysis in Aide Memoirs and Implementation Support Reports. During the COVID-19 pandemic, Bank teams, along with DFCCIL representatives, undertook virtual missions to assess progress and identify potential implementation bottlenecks. The Bank team was responsive to DFCCIL’s evolving requirements as the Program progressed, including the identification of issues, proposal of practical solutions, and follow up. Critical issues were escalated promptly for management support in IR and GOI. (c) Factors outside the control of government and/or implementing entities 77. Changes in banking regulations to reduce Non-Performing Assets (NPAs) significantly impacted contractors’ ability to raise bank finance. Due to the considerable rise in NPAs during 2014-18, India’s banking 37 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) system undertook corrective measures such as loan write-offs, stringent monitoring of loans, and stricter credit approvals. As a result, project contractors faced difficulties in borrowing from the commercial banks for their working capital requirements which resulted in construction delays for EDFC-2 and EDFC-3 projects. 78. Disruptions caused by COVID-19 pandemic28: The successive waves of the COVID-19 pandemic caused frequent work stoppages, stressed global supply chains, and affected construction schedules, and resulted in cost escalation of construction materials. Prevention protocols were developed for work sites in accordance with government guidelines and adequate food and supplies, including medicines, masks, and sanitizers were ensured for workers and their families. DFCCIL provided additional mobilization advances to contractors, simplified billing processes, and released ‘Performance Guarantee’ in proportion to the progress of work29. Despite losing crucial working seasons to the COVID-19 pandemic induced lockdowns and the ban on construction activity, DFCCIL achieved its highest ever capital expenditure during FY 2021-22. IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME A. QUALITY OF MONITORING AND EVALUATION (M&E) M&E Design 79. The Results Framework was suitably ambitious, yet meaningful, for a large-scale program such as EDFC and represented a clear linkage between project activities, outputs, and project outcome. The Program’s (i.e., each of the three projects’) Results Framework was designed with a clear Theory of Change that was logical and presented a clear linkage between project activities, outputs, project outcomes, EDFC program outcomes, and long-term impact (refer to Figure 2, Results Chain, in Section I). External factors outside the direct control of the Project, such as (i) rolling stock acquisition by IR, (ii) IR’s train operation performance, and (iii) capacity upgradation of IR feeder network and their potential impact on the achievement of the PDOs were clearly articulated in the respective Project Appraisal Documents (PADs). 80. There were, however, shortcomings in the PDO indicators even after multiple restructurings. The target value for the PDO indicator in EDFC-1 “Increased number of express passenger trains on the section” was missing. However, this PDO indicator was subsequently dropped for EDFC-2 and EDFC-3 projects. The PDO indicator for the Program’s Objective 2: ‘Improved institutional capacity of DFCCIL to build and operate the entire DFC network’, focused on the Concession Agreement and was not adequate to fully assess achievement of this objective. The target values for the Khurja – Ludhiana single line section were the same as for the Khurja – DDU double line section, even though the rationale for developing the Khurja – Ludhiana section as single line was mainly due to significantly lower traffic demand projections. The targeted increase in traffic (48 percent) when the Khurja – Dadri section (47 km) was added to EDFC-1 was also not realistic. These shortcomings in M&E design could have been addressed in the multiple restructurings undertaken during each of the three projects but the restructurings failed to do so. 81. Intermediate indicators supplemented the PDO indicators to monitor the Program’s progress. Intermediate indicators for measuring the progress of construction and the various studies for strengthening DFCCIL’s institutional capacity were included in EDFC-1, 2 and 3. These indicators included the development of Heavy Haul systems; locomotive and wagon program; DFCCIL staff strength; Civil Works and Track (CWT) 28 https://blogs.worldbank.org/endpovertyinsouthasia/keeping-indias-flagship-railway-project-track-during-covid-19 29 DFCCIL Annual Report 2021-22 38 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) contracts and systems contracts awarded; construction of civil works, system works and unfinished works of prior EDFC phases; and percentage of grievances received from PAPs resolved within three months of receipt. M&E Implementation 82. DFCCIL and project stakeholders diligently and regularly collected M&E data and provided progress reports. DFCCIL was assigned the responsibility for coordinating data collection, analysis, and periodic reporting. These were clearly documented in Aide-Memoires, along with analysis of issues and proposed solutions. DFCCIL was diligent in providing quality reports pertaining to adherence to E&S safeguards, Interim Unaudited Financial Reports (IUFRs), and annual audited reports on entity and project audits to the Bank. 83. The M&E implementation incorporated a robust mechanism for monitoring quality during program implementation through regular Implementation Support Missions, Mid Term Reviews, and discussions with DFCCIL and MoR. During COVID-19, when physical travel was restricted, the Bank teams, along with DFCCIL representatives, undertook virtual missions to assess physical progress and identify potential implementation bottlenecks. Additionally, the Bank team undertook timely restructuring of the projects and, through client consultations, shifted select parts of the projects to subsequent phases. M&E Utilization 84. M&E data and reports served as an important tool for DFCCIL and the Bank to track and communicate progress, flag emerging issues when delay in progress was pronounced, determine necessary course correction activities, such as escalating relevant issues to MoR or to Bank management, and prioritize necessary resources to support implementation. This practice allowed the Bank to provide timely guidance to DFCCIL and to inform decision making on allocating cost savings and preparation for various restructurings. Analysis of M&E data highlighted the challenges in project implementation for the Bank’s team and DFCCIL to undertake corrective actions to address the problems. 85. The Bank regularly and effectively monitored EDFC’s financial progress through DFCCIL’s IUFRs and the annual entity and project audit reports. These steps were incorporated to strengthen program governance and the accounting function to provide fiduciary assurance over project funds. 86. The Environmental and Social safeguards: In response to the resettlement quality audit, DFCCIL undertook measures to improve implementation quality for resettlement. To overcome challenges faced during land acquisition and the new law, significant efforts were made to update the RAP compensation matrix and properly manage grievances. Justification of Overall Rating of Quality of M&E 87. Based on the Project’s M&E design, implementation, and utilization, the overall quality of M&E is rated Modest because of the shortcomings in M&E design, which remained despite multiple restructurings. However, M&E implementation provided sufficient information of the formal Results Framework to assess achievement of the PDO. 39 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) B. ENVIRONMENTAL, SOCIAL, FIDUCIARY AND PROCUREMENT COMPLIANCE Environmental Safeguards 88. The EDFC Program triggered three World Bank safeguard policies: Environmental Assessment (OP/BP 4.01), Physical Cultural Resources (OP/BP 4.11), and Involuntary Resettlement (OP/BP 4.12). It was classified as an Environmental Category – A project due to the large-scale civil works and expected complex environmental and social impacts. An Environmental Management Framework (EMF) was established during the preparation of EDFC-1. Environmental Impact Assessment (EIA) studies were undertaken, and Environmental Management Plans (EMPs) were prepared to mitigate the anticipated impacts of the projects. During project preparation, a detailed analysis on Green House Gas emissions (GHG) reduction and appropriate strategies were incorporated for the entire EDFC corridor. A study on Energy Optimization was carried out to reduce the consumption of energy. 89. The Social and Environmental Monitoring Unit (SEMU) monitored environmental safeguards at the Corporate Office, while day-to-day management at the Field Offices was led by the respective Chief Project Managers. Supervision was carried out by the Project Management Consultant’s environmental and safety engineers. Environmental safeguard management was implemented by a large team of the contractor’s Safety, Health, and Environment engineers. Independent monitoring was conducted by a third party Social and Environment Safeguards Monitoring and Review Consultant (SESMRC), which prepared quarterly and annual safeguard review reports, and by the designated Quality and Safety Monitoring Consultant’s safety engineer. The contractors were mandated to develop their own Contractor’s Environmental and Social Management Plan (C-ESMP), which was monitored for implementation. DFCCIL developed an Environmental Policy and Environmental Management Framework applicable for all its activities. 90. At Program close (March 2022), there were no pending activities for compliance with the Bank’s environmental safeguards for EDFC-1. All required noise barriers had been constructed; 1,407 borrow areas utilized and rehabilitated as per EMP requirements; storm water drainage completed; forest clearance obtained; and compensatory afforestation carried out by the forest department. For EDFC-2, nine of the required 20 required noise barriers had been constructed; 1,038 of 1,191 approved borrow areas had been successfully rehabilitated as per the EMP requirements; 34,660 trees had been planted from the targeted plantation of 34,984 trees, of which 24,956 trees have survived; the green belt development undertaken; 8.78 km of the 50.18 km planned length of drains at the edge of DFC corridor had been completed, as was 219.14 km of the 262.039 km of drain between the IR and DFC tracks. For the EDFC-3 project, five of the twelve planned noise barriers at sensitive locations have been constructed and work is in progress at one location, (February 2024); 1,435 of the approved 1,986 borrow areas had been successfully rehabilitated as per EMP requirements; 26,954 trees had been planted (till February 2024) of the total required 85,112 trees; 28.63 km of side drainage (lined / unlined) of the 28.985 km had been completed and mid drain of length 343.495 km (of the 363.779 km) completed between the IR and DFC corridor. DFCCIL has made significant progress in completing pending activities for compliance with the Bank’s environmental safeguards for EDFC-2 and EDFC-3. The Bank will continue to monitor implementation progress of these safeguards requirements as part of the Corrective Action Plan for Mitigation of Environmental and Social Impacts and Risks under the Rail Logistics Project. Social Safeguards 91. EDFC-1, 2 and 3 triggered the World Bank Operational Policy 4.12 (Involuntary Resettlement) and involved 40 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) the acquisition of extensive private-owned land and resettlement. At project appraisal, a Resettlement Policy Framework (RPF) and Resettlement Action Plans (RAPs) were prepared. The RPF was to apply in case of alignment change during implementation and was the framework for EDFC-2 and EDFC-3. Local governments, i.e., state revenue officers who were appointed as Competent Authorities and Arbitrators, carried out land acquisition and resettlement, but DFCCIL paid compensation by depositing funds with the Competent Authority to compensate PAPs. 92. The third-party Social and Environment Safeguards Monitoring and Review Consultant monitored and quality audited land acquisition and resettlement activities to ensure compliance with the RAP. DFCCIL hired NGOs to assist in community participation, income restoration, and grievance resolution. Land acquisition for the EDFC program spanned 1,000 villages covering 4,336 hectares of land and nearly 85,000 PAPs. 93. In 2015, the RPF was revised to incorporate the provisions of India’s new land acquisition law, which provided more liberal land compensation and included additional provisions for the resettlement of displaced families and affected informal settlers, as well as cash grants for livelihood loss. To help expedite land acquisition for EDFC-1, GOI issued an addendum to allow the use of the policies of the State Governments for direct land purchase in case of missing plots or additional land acquisition. 94. A 4.5 km stretch in the Khurja – Dadri section of EDFC-1 was acquired by the Greater Noida Industrial Development Authority (GNIDA) using a different benefit matrix. As the market value of the developed plots was higher than the “circle rate” adopted by government for valuation, the 265 households resettled under the GNIDA policy have had no complaints, while some others being compensated under the project entitlement matrix went to court asking for the use of the GNIDA policy instead. This suggests that at least in the perception of such affected households, the GNIDA policy was superior to the entitlement matrix. Nonetheless, concerns about meeting the Bank’s resettlement standards caused the Khurja-Dadri section of EDFC-1 to not be included in EDFC-2 during EDFC-1 restructuring and this section was completed by Government funding. 95. Some of the good social safeguards practices in the project included: (i) efforts to minimize the impact of land acquisition on people by exploring alternative alignment options; (ii) establishment of a dedicated Social and Environment Unit to manage social and environmental impacts; (iii) aligning the RPF with India’s new land legislation provisions immediately after it came into effect; (iv) operating a joint dedicated Bank account with the state government, where funds for land acquisition were maintained; (v) reimbursement of stamp duty and registration charges, if alternative land and assets were purchased by people from their compensation amount; (vi) inclusion of informal settlers for resettlement assistance and additional support to vulnerable people such as marginal farmers, below poverty line households and widows; (vii) employment to local people under contractors; (viii) skill training provided to the local population, including women; and (ix) use of NGOs to support project affected people and engaging independent consultants for concurrent monitoring and reporting of land acquisition and resettlement implementation. Additional details about Social Safeguards Management are included in the Project Files as mentioned in Annex 6: Supporting Documents. Financial Management (FM) 96. At entry, DFCCIL set up the institutional structure for preparing and submitting financial reports and conducting audits. Financial reports, including IUFRs, were submitted timely and were satisfactory. Though SAP-ERP could not be implemented, DFCCIL switched to an off-the-shelf-accounting application and accounting was outsourced. 41 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) 97. DFCCIL instituted a system of periodic internal audits by a private audit firm with observations flagged to the Audit Committee. Frequent changes of finance staff and lack of automation of financial management functions were a concern in field offices. This contributed to slow responses to audit findings and extended delays in determining payment adjustments due to the new Goods and Services Tax (GST) and changing price indices, despite the engagement of consultants for this purpose by some of the field offices. To address the cash flow problems of the contractors, the impact of GST was paid on an ad hoc basis till the close of EDFC-3. 98. Overall, DFCCIL’s FM was acceptable and complied with the statutory corporate reporting and accounting requirements, as well as agreed project specific requirements. Procurement 99. The three projects had multiple, high-value and complex procurements. The innovative lump sum design- build contracting model was used for civil works contracts and systems contracts. The customized design-build bidding and contracting documents prepared for EDFC-1 subsequently became Standard Bidding Documents for EDFC-2 and EDFC-3. The time to complete procurement of the Design-Build lump sum contracts far exceeded the planned timelines because of the following factors: (i) scale and complexity of the Project; (ii) the steep learning curve for managing pre-qualification plus the two-stage bidding process with the new standard bidding and contracting documents; (iii) a large number of international and domestic bidders; (iv) bunching of the first three civil works contracts stretching limited resources; and (v) the lengthy review and approval processes at both the IR and the World Bank at the various stages of tendering. DFCCIL gained valuable experience through the procurement process and enhanced its procurement capacity for future DFC corridors. Details about Procurement Management are included in the Project Files as mentioned in Annex 6: Supporting Documents. 100. Overall, DFCCIL performed well in executing a complex and challenging procurement plan. The EDFC Program complied with the World Bank’s procurement policies and procedures. In retrospect, DFCCIL and the Bank made the right decisions to invest time and resources upfront in choosing the right contracting and procurement strategy, which resulted in adequate competition and large cost savings, with no cancelled contracts. C. BANK PERFORMANCE Quality at Entry 101. The Bank’s engagement in the nationally strategic EDFC program was the result of many years of active engagement and project preparation with GOI and MoR. The Bank support included a US$3 million Project Preparation Facility (PPF) to DFCCIL and MoR. This project preparation facility was used in conducting various studies – such as the Environmental Impact Assessment, Social Impact Assessment, cost-benefit analysis of DFCs and alternate options for railway capacity enhancement (i.e., Dedicated Passenger Corridors and Existing Line Improvements) etc. – required for the Bank’s support to EDFC projects. Lessons from Bank financed transport projects in India and railway projects in China, as well as regular exchanges with JICA (which finances the WDFC) and the DFCCIL team working on the WDFC, informed the preparation of EDFC-1 and the overall EDFC program. The Bank ensured quality at entry through alignment of the Program’s development objectives with GOI’s and the Bank’s strategic priorities, proper design of components, and appropriate implementation arrangements. 42 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) 102. The Program’s strategic relevance to GOI was high, and the Program was relevant to the Bank’s India CAS for 2009-12. The Program’s technical design and alignment were based on a rigorous analysis of various options and wide consultations with domestic and international experts. The engineering design would achieve optimal system performance in the long term, the chosen alignment minimized negative environmental and social impacts, and the technical assistance component supported India’s heavy haul rail research and development as well as DFC’s commercial operation plan. There were, however, weaknesses in the design of the RF, as discussed in the section on M&E Design. 103. As discussed in the previous section on Environmental, Social, Fiduciary and Procurement compliance, the procurement approach was innovative and well thought through in terms of appropriate risk allocation, opportunities for value engineering, and built-in assistance to DFCCIL in managing procurement and construction. The financial management plan and the GAAP were designed to strengthen DFCCIL’s corporate governance, financial accountability, and financial management. An Enterprise Resources Planning (ERP) System was included in the Project. The Environmental Management Plan, incorporation of silicosis reduction strategy requirements in bidding and contracting documents, the RAP and RPF, and appointment of a third-party SESMRC were some of the key interventions that ensured quality at entry for the program. As discussed in previous sections, many lessons learned during EDFC-1 were carried forward in the design and implementation of EDFC- 2 and EDFC-3 projects. 104. In retrospect, despite the strong buy-in from GOI and careful planning, the Program’s design was ambitious in introducing several innovations and new ways of doing businesses in a relatively short time. The project design was fitting for an ambitious national strategy that considers transforming India railways to be more efficient and competitive. Quality of Supervision 105. The Bank worked closely with MoR and DFCCIL to ensure this nationally significant project be completed with high quality, and in compliance with Bank policies. The Bank supervised the project diligently with the required expertise. Lessons and experiences gained during EDFC-1 were successfully incorporated in the preparation and implementation of EDFC-2 and EDFC-3. The Bank also engaged international experts to conduct in-depth performance reviews at various critical times of project implementation to identify issues, draw lessons, and disseminate learnings with DFCCIL, IR, contractors, and other key stakeholders. It also worked proactively with the GOI to better align the financing provided by the Bank to the timing of financing needed by the program. The Bank took prompt actions to restructure the Project to ensure that loan savings were effectively utilized to either support additional activities or were cancelled. As part of these restructurings, the Bank processed a series of loan cancellations and transfers of components from one project to the next to reduce loan funds tied up in the program and to free up funds for other priorities. However, a key drawback during supervision was the failure to rectify shortcomings in the Results Framework of the three EDFC projects in the project restructuring activities. 106. When the rating of EDFC-1 implementation progress was downgraded in 2014, the Bank organized additional technical missions to support DFCCIL in resolving procurement issues, preparing a realistic disbursement plan, expediting TA activities, and monitoring social and environmental safeguard activities. Similarly, when accidents occurred in 2017, the Bank made a big push to improve construction safety on the part of DFCCIL and the contractors. On key issues impeding project progress, the Bank engaged in a dialogue with high level GOI officials to build consensus on resolving such issues. The Aide-Memoires communicated key 43 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) messages effectively by using KPI dashboards and progress charts. Management letters to the Chairman of the Railway Board were clear on the issues requiring IR management attention. Implementation Status Reports accorded ratings in a candid and appropriate manner. 107. Given the requirement of large-scale land acquisition in EDFC-1, 2 and 3 projects, and a significant number of PAPs, the Bank helped establish a Grievance Redressal Mechanism (GRM) for such PAPs. The PAPs could directly approach DFCCIL field offices or SEMU at Head Office, and these offices were mandated to maintain registers of complaints received and resolved. Alternatively, PAPs could also register their grievances via the 24X7 Interactive Voice Response (IVR) GRM helpline that was established by DFCCIL. The Bank worked with DFCCIL in closely monitoring the resolution of such complaints received from PAPs. Nearly 95% of grievances received had been resolved by December 2023. 108. The Bank highlighted concerns and critical matters related to social and environmental safeguards and procurement activities to DFCCIL in a timely manner and provided additional requisite technical assistance to resolve such issues. For instance, the Bank highlighted concerns including inadequate measures undertaken to protect flooding of sites and adjoining areas, in-sufficient labor amenities, and the need for timely restoration of borrow areas to DFCCIL management. The Bank worked to improve occupational safety at construction sites in close coordination with DFCCIL and contractors. For EDFC-3, DFCCIL agreed on a Corporate Governance and Financial Accountability Plan to strengthen its financial system as per the Bank’s suggestions. During the COVID- 19 pandemic, as travel to the project site was not possible, the Bank teams undertook virtual missions supported by live site photographs and drone videos. 109. The Bank proactively engaged with GOI and MoR to ensure that works not completed in EDFC-2 and EDFC- 3 were transferred to the Rail Logistics Project. Such works included completion of activities envisaged under Bhaupur to DDU section (initially covered under EDFC-2) and Sahnewal to Khurja section (initially covered under EDFC-3) and compliance with the Bank’s environmental and social safeguards requirements. The construction works for EDFC-2 and EDFC-3 have since been completed under the RLP and the two sections have been commissioned. The Bank continues to closely monitor compliance with environmental and social safeguards requirements through the Corrective Action Plan for Mitigation of Environmental and Social Impacts and Risks under the Rail Logistics Project. 110. The Borrower’s ICR acknowledges the Bank’s contribution towards institutional strengthening and capacity building during project preparation via the Project Preparation Fund, and during project implementation through provision of continuous support from experts in diverse fields which helped DFCCIL establish a system for procurement, land acquisition, social and environmental issues, financial management, and risk management. Justification of Overall Rating of Bank Performance 111. Based on the above analysis of Bank Performance at entry and during implementation, the overall rating of Bank performance is Moderately Satisfactory. D. RISK TO DEVELOPMENT OUTCOME 112. In the short-term, achievement of the anticipated traffic volumes is dependent on trains being diverted by IR from the existing IR network to the EDFC corridor; the Concession Agreement mitigates this risk. Risks to 44 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) sustained strengthening of institutional capacity arises from the fact that many senior officers at DFCCIL are on secondment from IR or MoR for an average tenure of three to five years. From a Program perspective, frequent movement of senior officials can potentially disrupt institutional knowledge. However, DFCCIL has started to recruit entry- and mid-level staff and is providing such staff with adequate trainings to build and strengthen institutional capacity. Subject to the anticipated throughput capacity being achieved in the near term in EDFC, the Program is expected to achieve the envisaged development outcome, i.e., transform freight and passenger rail services on the eastern corridor with an improved level of service and develop the institutional capacities of DFCCIL and IR to build, maintain, and operate the DFC network. V. LESSONS AND RECOMMENDATIONS 113. The Bank’s engagement with MoR and DFCCIL in a consistent and programmatic manner to implement a nationally strategic program enabled the Bank to inform policies toward private sector participation in railway infrastructure. For more than a decade, the Bank closely supported DFCCIL in undertaking several initiatives and studies for institutional capacity building and exploring avenues for private sector participation in railway infrastructure development as well as private freight train operations on DFCs. The Institutional Strengthening and Technical Assistance provided by the Bank, as part of the EDFC Program, helped DFCCIL to achieve these objectives. Now, as part of the Rail Logistics Project, DFCCIL has invited private sector to set up freight terminals and multi-modal logistics parks on PPP mode along the DFC corridors. 114. The Bank’s long-term strategic support is crucial in enabling SOEs harness commercial financial markets and introduce fundamental changes in a country’s rail sector. The timeframe for large-scale, long-term reforms in a country’s rail sector is significantly longer than most project cycles in the sector. These strategic reforms require the SOE to evolve from a traditional government-funded organization to a commercial, market-focused, and operationally efficient entity. Thus, the Bank’s long-term support is best suited in the form of a series of projects to facilitate such reforms. At inception, DFCCIL, a rail sector SOE, had no experience in borrowing from commercial markets and was entirely dependent upon GOI funding and concessional financing. To tap commercial markets, DFCCIL required continuous Bank support for developing the required institutional capacity and revenue assurance. Figure 3 below depicts DFCCIL’s transition (and the fundamental change in India’s rail sector) discussed earlier in this document and the current stage of DFCCIL in the evolutionary journey. The Bank and MIGA are assisting DFCCIL to raise US$100 million commercial financing as part of the Rail Logistics Project. 45 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Figure 3: Transforming India's Rail Sector Financing from GoI-Backed to Revenue-Backed Commercial Finance. (illustrative) 115. The long-term engagement with DFCCIL enabled the Bank to facilitate adoption of sound social and environmental safeguard policies and procedures, as well as fiduciary and procurement policies in the Indian Railways ecosystem. The EDFC-1, 2 and 3 projects followed the World Bank’s policies and procedures in social and environmental safeguards, fiduciary and procurement processes for the first time in India’s rail sector. The Bank also actively supported MoR and DFCCIL in implementing such policies and resolving implementation challenges. A key learning from the EDFC program is that a strong, robust, central unit (such as the SEMU created in the DFCCIL Head Office) is critical for projects that require large-scale land acquisition, rehabilitation, and resettlement of PAPs and that such activities pertaining to land acquisition may not be most effectively undertaken by field offices alone. The engagement of independent third-party consultants (such as SESMRC and QSAC) further strengthened adherence to environmental and social safeguards management requirements. 116. Taking a program approach proved to be effective for the Bank’s long-term engagement in the large and complex EDFC program, but the lack of an appropriate tranche-based lending instrument complicated Program implementation. EDFC-1 was financed as Phase 1 of an APL, which was discontinued by the Bank prior to the approval of EDFC-2 and EDFC-3. However, GOI and DFCCIL continued to manage the three projects as a single Program which resulted in program continuity and benefits, including: (i) consistency in implementing the reform agenda; (ii) taking an adaptive approach in shifting project activities among the three projects to utilize loan savings, better manage the project schedule, and cancel unused portions of the loan; (iii) delivering a long-term institutional strengthening program; and (iv) ensuring experience gained and lessons learned were incorporated in the design and implementation of the succeeding projects. 46 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) 117. Robust institutional framework, along with an effective project management and delivery architecture is critical to achieving long-term success. The creation of DFCCIL as an independent entity at arms-length from IR and signing of the Concession Agreement between DFCCIL and MoR were key milestones in establishing a robust institutional setup for ensuring the program’s success. Such a setup empowered DFCCIL with the requisite operational and financial autonomy to undertake planning and development of the DFC corridors. A robust institutional framework was vital to the program’s success since many senior officers at DFCCIL are on secondment from IR or MoR for an average tenure of three to five years. However, despite the institutional framework, the Program required strong and effective project management and delivery architecture to timely achieve key milestones. The incorporation of DFCCIL as an independent SOE is expected to provide such autonomy in train operations and infrastructure management; however, the program design could have evaluated the need for introduction of relevant regulations for permitting open access to IR and other authorized rail operators during project implementation to provide additional regulatory strength to DFCCIL. 118. Large projects involving multiple state governments in India need to plan carefully for the management and coordination of land acquisition. In India, national-level projects rely on state governments for the complex process of land acquisition. This process required intensive coordination between DFCCIL, the state government land offices, the contractors, and local governments. Over time, as land acquisition delays impeded construction, DFCCIL became much more systematic in coordinating land acquisition issues as it came to realize that coordination with local authorities was in the interest of timely project completion. 119. Introduction of new contracting structures for large-scale, strategically significant projects need to consider the Bank’s as well as contractors’ capacity and experience in managing such contracts. While the Design – Build lump sum contract was conceptualized to ensure equitable risk sharing between DFCCIL and the contractors, it failed to foresee and correctly estimate the time required for Bank’s internal approvals, financial challenges faced by contractors, and delays in land acquisition by DFCCIL. A new contracting strategy should, ideally, incorporate the time required for Bank’s approvals, involve sustained initiatives for capacity building of contractors during the bidding stage and in the finalization of contracts, as well as foresee potential challenges in project implementation. Moreover, the milestone and payment schedules should be designed based on an understanding of the local financial market conditions to avoid unnecessary burden on the contractor’s financial resources. 120. The Bank and the Borrower need to be agile and collaborative for ensuring successful implementation of mega projects. Mega projects, such as the EDFC program, can encounter delays due to challenges in land acquisition, change in national regulations, introduction of new contracting strategies, or enforcement of stricter norms for commercial bank lending. DFCCIL, supported by the World Bank, played a vital role in recognizing the contractors’ challenges and diligently worked on arriving at an amicable solution by splitting cost centers to enable contractors to meet project timelines. Similarly, after the change in the land acquisition law, the Bank and DFCCIL worked together to revise the RPF and RAPs to align them with the new national regulations and thus expedite the land acquisition process. 121. An over-arching program of institutional capacity building needs to align with the Borrower’s requirements and staffing strength over the course of project planning, construction, and operation. A well- designed institutional strengthening and TA program must recognize the need for adequate staffing and capacity building as well as the evolution in the Borrower’s capacity building requirements as the project transforms from the planning and construction phase to an operational phase. The capacity building program must therefore be aligned with this change in the Borrower’s learning and training needs and staffing strength. 47 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) ANNEX 1A. RESULTS FRAMEWORK AND KEY OUTPUTS: EASTERN DEDICATED FREIGHT CORRIDOR 1 A. RESULTS INDICATORS A.1 PDO Indicators Objective/Outcome: Provide additional rail transport capacity, improved service quality and higher freight throughput Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Additional freight train paths Text 0.00 100.00 100.00 0.00 on DFC (pairs/day) 01-Jun-2011 30-Jun-2017 31-May-2019 31-May-2019 Comments (achievements against targets): Target was achieved in December 2020 when the full Khurja - Kanpur line was commission. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Average Speed of freight Kilometers 25.00 60.00 60.00 0.00 48 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) train (Kmph) 30-Apr-2011 30-Jun-2017 31-May-2019 31-May-2019 Comments (achievements against targets): Average speed in last 2+ years of operation is 57 kmph, about 5 percent lower than target. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Increased number of express Text 69.00 0.00 0.00 0.00 passenger train on section 01-Jun-2011 30-Jun-2017 31-May-2019 31-May-2019 Comments (achievements against targets): The target for increased the number of express passenger train could never be established. Therefore, a value of zero is included. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion DFC Freight Traffic (GTKM bn Text 0.00 50.10 50.10 0.00 ton) 30-Apr-2011 31-Mar-2022 29-Mar-2024 29-Mar-2024 Comments (achievements against targets): This target was added when the Khurja - Dadri line was added to EDFC-1 project in the October 2015 restructuring. The Khurja - Dadri lines connects the Western and Eastern corridors, giving freight customers in the East access to the western port. It is anticipated to carry a large volume of traffic between 49 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) locations on the EDFC and the ports served by the WDFC. However, while the Khurja -Dadri line has been completed, the WDFC is not completed so volumes carried on the section have been very low. The EDFC-1 sections were not completed when the project closed in May 2019 and the Khurja-Kanpur section was shifted to EDFC-2. It was subsequently completed, and traffic is in the ramp up phase. Traffic is expected to reach 30.53 billion GTKM in DFCCIL’s FY 2023/24 (annualized traffic of the first 10 months of traffic). Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion DFC Freight Traffic (NTKM bn Text 18.00 22.00 32.50 0.00 ton-km) 01-Jun-2011 31-Mar-2022 29-Mar-2024 29-Mar-2024 Comments (achievements against targets): Traffic over the Khurja-Kanpur line is in a ramp-up phase. It is expected to be 17.31 billion NTKM in DFCCIL’s FY 2023/24 (annualized traffic of first ten months of FY2023/24) and is anticipated to reach 22 billion NTKM in 2026. When the Khurja – Dadri line was added to EDFC-1 project in the October 2015 restructuring, the ntk target was increased to 32.5. The Khurja - Dadri lines connects the Western and Eastern corridors and was anticipated to carry a large volume of traffic between the EDFC and the ports served by the WDFC. However, the WDFC is not completed, so volumes carried on the section have been very low. The timing for completion of WDFC is uncertain, making the timing of achieving the revised target also uncertain. A.2 Intermediate Results Indicators Component: Design, Construction and Commissioning of the Khurja - Kanpur and Khurja - Dadri Sections 50 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion CWT and Systems Contracts Yes/No No Yes Yes Yes Awarded 01-Jun-2011 30-Jun-2017 31-May-2019 31-May-2019 Comments (achievements against targets): This indicator tracked a key step in implementing the physical construction of the project lines. Component: Institutional Development to assist DFCCIL and MOR to develop their capabilities best utilize heavy haul freight systems. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Development of Heavy Haul Text No heavy haul systems Study completed Study completed Study completed Systems in place. 01-Jun-2011 30-Jun-2017 31-May-2019 31-May-2019 Comments (achievements against targets): The study on creating a heavy haul institute was completed in May 2019. In November 2022, the institute was inaugurated with the first batch of 39 trainees from operationas and maintenance roles receiving specialized training. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion MoR and DFCCIL sign Text Not signed Agreement signed Agreement signed Agreement signed Concession Agreement 01-Jun-2011 30-Jun-2017 31-May-2019 31-May-2019 51 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Comments (achievements against targets): The concession agreement between Ministry of Railways and DFCCIL gives DFCCIL the concession to create the dedicated freight corridors. It establishes the principals for IR use of DFCCIL lines and payment for that use. It further establishes the principle that DFCCIL will eventually provide non-discriminatory access to other operators and principles of payment by IR and other operators in that circumstance. The concession agreement created the revenue assurance DFCCIL needed to be able to raise USD 100 million in commercial financing with the support of a MIGA guarantee. The agreement was signed on 28.02.2014. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion DFCCIl Staff Strength Number 380.00 9,800.00 9,800.00 1,106.00 30-Apr-2011 30-Jun-2017 31-May-2019 31-May-2019 Comments (achievements against targets): The end target of 9,800 is a typo in the original project document, which had not been corrected during implementation. This indicator tracked DFCCIL’s scaling up from a start-up company to full staff strength to be able to manage the DFCs. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Locomotive and Wagon Text No plan Specifications and Specifications and Specifications and Program requirements for year requirements for year requirements for year 2017 finalized and 2017 finalized and 2017 finalized and procurement strategy procurement strategy procurement strategy 52 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) in place. in place. in place. 01-Jun-2011 30-Jun-2017 31-May-2019 31-May-2019 Comments (achievements against targets): This target tracked IR’s preparedness to operate wagons and locomotives with heavier axle loads that would be needed to take advantage of the DFC lines higher track standards. It is mirrored in the indicator “study on heavy haul wagons specifications and procurement” shown in Annex 1b. Over 2,500 heavier axle load wagons have been procured using the specifications developed. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion DFCCIL staff in officer cadre Text 200.00 497.00 497.00 584.00 01-Jun-2011 30-Jun-2017 31-May-2019 31-May-2019 Comments (achievements against targets): This indicator also tracked DFCCIL’s scaling up from a start-up company to full staff strength to be able to manage the DFCs. It was fully achieved before project close. B. KEY OUTPUTS BY COMPONENT Objective/Outcome 1: Provide additional rail transport capacity, improved service quality and higher freight throughput 1. Additional freight train paths on DFC (pairs/day) Outcome Indicators 2. Average Speed of freight train (Kmph) 3. Increased number of express passenger train on section 53 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) 4. DFC Freight Traffic (GTKM bn ton) 5. DFC Freight Traffic (NTKM bn ton-km) Intermediate Results Indicators 1. CWT and Systems Contracts Awarded 1. Design, Construction and Commissioning of the Khurja - Kanpur and Key Outputs by Component Khurja - Dadri Sections (linked to the achievement of the Objective/Outcome 1) Objective/Outcome 2: Institutional capacity strengthening Outcome Indicators 1. -- 1. Development of Heavy Haul Systems 2. MoR and DFCCIL sign Concession Agreement Intermediate Results Indicators 3. DFCCIL Staff Strength 4. Locomotive and Wagon Program 5. DFCCIL staff in officer cadre Key Outputs by Component 1. Institutional Development to assist DFCCIL and MOR to develop (linked to the achievement of the Objective/Outcome 2) their capabilities to best utilize heavy haul freight systems. 54 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) ANNEX 1B. RESULTS FRAMEWORK AND KEY OUTPUTS: EASTERN DEDICATED FREIGHT CORRIDOR 2 A. RESULTS INDICATORS A.1 PDO Indicators Objective/Outcome: To meet growing freight and passenger demand on Eastern corridor Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Additional freight train paths Number 0.00 100.00 0.00 on EDFC 31-Mar-2014 31-Dec-2019 01-Jun-2020 Comments (achievements against targets): Target was achieved in May 2023, when last section of Khurja - Kanpur line was commissioned. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Freight traffic carried on the Tons/year 0.00 22.00 0.00 EDFC 01-Jan-2015 31-Dec-2019 01-Jun-2020 Comments (achievements against targets): 55 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Traffic over the Kanpur-DDU line segment is in a ramp-up phase. It is expected to be 11.2 million tkm in DFCCIL’s FY 2023/24 (annualized traffic of first four months of FY2023/24) and is anticipated to reach 22 billion ntkm in 2026. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Average speed of freight Kilometers 25.00 60.00 0.00 trains 31-Mar-2014 31-Dec-2019 01-Jun-2020 Comments (achievements against targets): Average speed for the Kanpur - DDU section in first four months of FY 2023/24 was 47 km, about 80% of the target. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion DFCCIL MoU (with MOR) Text good or higher good or higher Good rating 31-Mar-2014 31-Dec-2019 31-Mar-2019 Comments (achievements against targets): The MOU reflected an understanding between the Ministry of Railways (MoR) and DFCCIL that set out MoR’s expectations for DFCCIL and MoR’s commitment of counterpart funding for the project. Rating of the MOU was used as a proxy measure of the institutional development of DFCCIL in its ability to construct, maintain and operate the DFCs. 56 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) A.2 Intermediate Results Indicators Component: Design, construction & commissioning of Khurja Mughalsarai Section of EDFC Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Physical construction-civil Percentage 0.00 100.00 53.00 works (Kanpur Mughalsarai Section) 31-Mar-2014 31-Dec-2019 01-Jun-2020 Comments (achievements against targets): This indicator tracked physical construction of the infrastructure. Target was achieved in May 2023, when line was commissioned. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Physical construction- system Percentage 0.00 100.00 20.82 works (Kanpur Mughalsarai Section) 31-Mar-2014 31-Dec-2019 01-Jun-2020 Comments (achievements against targets): This indicator tracked physical construction of the electric power supply and signaling systems. Target was achieved in May 2023, when line was commissioned. Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Formally Revised Completion 57 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Target Physical construction of civil Percentage 80.00 100.00 94.30 and systems works - unfinished work of EDFC 1 01-Jun-2019 31-Dec-2021 01-Jun-2020 (Khurja Bhaupur Section) Comments (achievements against targets): This indicator tracked physical construction of the infrastructure. Target was achieved in December 2020, when the line was commissioned. Component: Continuing the provision of institutional support to assist DFCCIL develop its capability to best utilize heavy-haul freight rail systems. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Study to analyze and Text Study not done Study Completed Initial study has been understand different safety completed. related aspects of the DFC Implementation of program and their Safety management implementation system TOR has been cleared by the Bank and RFP is under process. further financing would be done from EDFC3 31-Mar-2014 31-Dec-2019 01-Jun-2020 Comments (achievements against targets): 58 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) The study was completed June 30, 2019 and contributed to the development on DFCCIL’s safety management system which is in operation in the commissioned sections of the EDFC and WDFC. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Study on heavy haul wagons Text Study not done Study completed and Study completed. specifications and implemented. Regular induction of procurement Wagon is in Progress. Total more than 2500 wagons inducted. 31-Mar-2014 31-Dec-2019 01-Jun-2020 Comments (achievements against targets): Study was completed and outputs were used in Indian Railways wagon procurements. More than 2,500 wagons have been purchased using the new specifications. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Assessment of alternative Text Study not done study done Completed approaches to non- discriminatory access and 31-Mar-2014 31-Dec-2019 31-Mar-2019 development of a methodology for establishing track access charges 59 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Comments (achievements against targets): The study was completed and has informed DFCCIL’s negotiations with MoR over the track access charges to be paid by Indian Railways. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Study on energy optimization Text Study not done study done Completed options for the dedicated freight corridor 31-Mar-2014 31-Dec-2019 31-Mar-2019 Comments (achievements against targets): The study was completed and Indian Railways is considering running a pilot on its trains in the DFCCIL’s Khurja – Kanpur section. 60 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) B. KEY OUTPUTS BY COMPONENT Objective/Outcome 1: Provide additional rail transport capacity, improved service quality and higher freight throughput 1. Additional freight train paths on EDFC Outcome Indicators 2. Freight traffic carried on the EDFC 3. Average speed of freight trains 1. Physical construction – civil works (Kanpur – Mughalsarai section) 2. Physical construction – systems works (Kanpur – Mughalsarai Intermediate Results Indicators section) 3. Physical construction of civil and systems works – unfinished work of EDFC 1 (Khurja Bhaupur section) Key Outputs by Component 1. Design, construction & commissioning of Khurja Mughalsarai (linked to the achievement of the Objective/Outcome 1) Section of EDFC Objective/Outcome 2: Institutional capacity strengthening Outcome Indicators 1. DFCCIL MoU (with MoR) rating 1. Study to analyze and understand different safety related aspects of the DFC program and their implementation 2. Study on heavy haul wagons specifications and procurement Intermediate Results Indicators 3.Assessment of alternative approaches to non-discriminatory access and development of a methodology for establishing track access charges 4. Study on energy options for the dedicated freight corridor 1. Study to analyze and understand different safety related aspects of Key Outputs by Component the DFC program and their implementation (linked to the achievement of the Objective/Outcome 2) 2. Study on heavy haul wagons specifications and procurement 61 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) 3.Assessment of alternative approaches to non-discriminatory access and development of a methodology for establishing track access charges 4. Study on energy options for the dedicated freight corridor 62 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) ANNEX 1C. RESULTS FRAMEWORK AND KEY OUTPUTS: EASTERN DEDICATED FREIGHT CORRIDOR 3 A. RESULTS INDICATORS A.1 PDO Indicators Objective/Outcome: Provide additional rail transport capacity, improved service quality and higher freight throughput Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Additional freight train paths Text N/A 23.00 NA: line not on Ludhiana - Khurja section commissioned yet (pairs per day) 30-Jun-2015 30-Nov-2021 19-Jul-2021 Comments (achievements against targets): Target achieved after the final section of the Khurja-Ludhiana line was commissioned in October 2023. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Freight traffic carried on the Text N/A 22.00 NA: line not Ludhiana-Khurja Section (net commissioned billion ton-km per year) 30-Jun-2015 30-Nov-2021 19-Jul-2021 Comments (achievements against targets): 63 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Line has been commissioned in October 2023. Traffic will require a ramp up period and is forecast to be achieved in 2031. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Average speed of freight Text 25(Existing line) 45.00 NA: line not trains on Ludhiana-Khurja commissioned Section (km per hour) 30-Jun-2015 30-Nov-2021 19-Jul-2021 Comments (achievements against targets): Average speed for first four months of FY2023/24 for commissioned sections was 41, about 10 percent below target. Speed for the final section, commissioned October 2023 is expected to be similar or faster. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Additional freight train paths Text N/A 100.00 NA: line not on Kanpur-Mughalsarai (pairs commissioned yet per day) 15-Apr-2021 03-Sep-2021 19-Jul-2021 Comments (achievements against targets): Target was achieved in May 2023, when the last section of this line segment was commissioned. Date of target reflects the date that the Kanpur - Mughalsarai section was shifted to EDFC 3 loan. 64 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Freight traffic carried on the Text N/A 22.00 N/A (line not Kanpur-Mughalsarai Section commissioned) (net billion ton-km per year) 15-Apr-2021 03-Sep-2021 19-Jul-2021 Comments (achievements against targets): Line was commissioned in October 2023. The targets are likely to be met, albeit with delay. Date of target reflects the date that the Kanpur - Mughalsarai section was shifted to EDFC 3 loan. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Average speed of freight Text 25 (existing line) 60.00 N/A (line not trains on Kanpur-Mughalsarai commissioned) Section (km per hour) 15-Apr-2021 03-Sep-2021 19-Jul-2021 Comments (achievements against targets): Average speed in first four months of FY 2023/24 was 47 km, about 80% of the target. Date of target reflects the date that the Kanpur - Mughalsarai section was shifted to EDFC 3 loan. 65 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Objective/Outcome: Develop institutional capacity of DFCCIL to build, maintain and manage the DFC infrastructure Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion DFCCIL MoU (with MOR Text Very good Good Good for 2019-20 rating) 30-Sep-2015 30-Nov-2021 19-Jul-2021 Comments (achievements against targets): The MOU reflected an understanding between the Ministry of Railways (MoR) and DFCCIL that set out MoR’s expectations for DFCCIL and MoR’s commitment of counterpart funding for the project. Rating of the MOU was used as a proxy measure of the institutional development of DFCCIL in its ability to construct, maintain and operate the DFCs. A.2 Intermediate Results Indicators Component: Design, construction, testing & commissioning of Ludhiana-Khurja & Kanpur-Mughalsarai sections Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Physical construction: Civil Percentage 0.00 100.00 69.00 Works (Ludhiana - Khurja) 30-Jun-2015 30-Nov-2021 19-Jul-2021 Comments (achievements against targets): This indicator tracked physical construction of the infrastructure. Target achieved in October 2023, when the last section of the Khurja - Ludhiana line was commissioned. 66 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Physical construction: System Percentage 0.00 100.00 16.00 works (Ludhiana - Khurja) 30-Jun-2015 30-Nov-2021 19-Jul-2021 Comments (achievements against targets): This indicator tracked physical construction of power supply and signaling systems. Target achieved in October 2023, when the last section of the Khurja - Ludhiana line was commissioned. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Physical construction: Civil Percentage 67.00 100.00 74.30 Works (Kanpur - Mughalsarai) 15-Apr-2021 30-Nov-2021 19-Jul-2021 Comments (achievements against targets): This indicator tracked physical construction of the section. Target achieved in October 2023, when the last section of the Khurja - Ludhiana line was commissioned. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion 67 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Physical construction: Percentage 67.00 100.00 71.00 Electrical Works (Kanpur- Mughalsarai) 15-Apr-2021 30-Nov-2021 19-Jul-2021 Comments (achievements against targets): This indicator tracked the physical construction of the electric power supply system. Target achieved in October 2023, when the last section of the Khurja - Ludhiana line was commissioned. Component: Institutional capacity strengthening Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Identification of potential Text Study to be initiated Study completed and 14 locations have private investors in freight implemented been awarded terminals and logistics between 3 private centres parties and discussions are underway to prioritize their development. Feasibility study for remaining locations now proposed to be done from MOR Equity. 68 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) ToR for a consultancy study to identify opportunities for private sector investment for development of intermodal freight terminals and the required policy and regulatory adjustments is under review and expected to be published in October 2021 30-Jun-2015 30-Nov-2021 19-Jul-2021 Comments (achievements against targets): This study builds on the marketing study that analyzed potential opportunities to build up traffic on the DFCs. This study focused on the development of multimodal logistics facilities along the DFCs. These are now being implementation with support from the Rail Logistics Project. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Energy optimization pilot Text Pilot project to be Pilot project Pilot Project is to be project initiated implemented taken up on Khurja- Bhaupur section. 30-Jun-2015 30-Nov-2021 19-Jul-2021 69 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Comments (achievements against targets): The energy optimization study was completed and Indian Railways is considering running a pilot on its trains in the DFCCIL’s Khurja – Kanpur section. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion MOR/DFCCIL adoption of Text System to be system in place Interchange protocol system to optimize developed has been approved by interchange of trains Railway Board. between IR and EDFC line at interchange stations 30-Jun-2015 30-Nov-2021 19-Jul-2021 Comments (achievements against targets): This study developed the processes for safe and efficient interchange of trains between IR and DFCCL. The resulting interchange protocol was approved in July 2021 and has been used since then to guide the interchange of trains to/from commissioned section of DFCCIL lines. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Percentage of grievance Percentage 75.00 90.00 75.00 received from PAPs resolved within three months of 01-Jun-2021 31-Mar-2022 19-Jul-2021 receipt Comments (achievements against targets): This target was added in the September 2021 restructuring, which extended the project closing date until March 31, 2022, so that date is taken as the original target date for this indicator. The indicator was created to track DFCCIL’s performance on resolving complaints. 70 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) 71 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) B. KEY OUTPUTS BY COMPONENT Objective/Outcome 1: Provide additional rail transport capacity, improved service quality and higher freight throughput 1. Additional freight train paths on Ludhiana - Khurja section (pairs per day) 2. Freight traffic carried on the Ludhiana – Khurja Section (net billion ton-km per year) 3. Average speed of freight trains on Ludhiana-Khurja section (km per Outcome Indicators hour) 4. Additional freight train paths on Kanpur-Mughalsarai (pairs per day) 5. Freight traffic carried on the Kanpur-Mughalsarai Section (net billion ton-km per year) 6. Average speed of freight trains on Kanpur-Mughalsarai section (km per hour) 1. Physical construction: Civil Works (Ludhiana – Khurja) 2. Physical construction: System works (Ludhiana – Khurja) Intermediate Results Indicators 3. Physical construction: Civil Works (Kanpur – Mughalsarai) 4. Physical Construction: Electrical Works (Kanpur – Mughalsarai) Key Outputs by Component 1. Design, construction, testing & commissioning of Ludhiana-Khurja & (linked to the achievement of the Objective/Outcome 1) Kanpur-Mughalsarai sections Objective/Outcome 2: Institutional capacity strengthening Outcome Indicators 1. DFCCIL MoU (with MoR) rating 1. Identification of potential private investors in freight terminals and Intermediate Results Indicators logistics centers 2. Energy optimization pilot project 72 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) 3. MOR/DFCCIL adoption of system to optimize interchange of trains between IR and EDFC line at interchange stations 4. Percentage of grievance received from PAPs resolved within three months of receipt Key Outputs by Component 1. Institutional capacity strengthening (linked to the achievement of the Objective/Outcome 2) 73 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) ANNEX 2A. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION: EASTERN DEDICATED FREIGHT CORRIDOR 1 A. TASK TEAM MEMBERS Name Role Preparation Supervision/ICR Martha B. Lawrence, Atul Agarwal, Sanjeev Deorao Task Team Leader(s) Moholkar Atin Kumar Rastogi Procurement Specialist(s) Puneet Kapoor Financial Management Specialist I. U. B. Reddy Social Specialist Gaurav D. Joshi Team Member Nitika Surie Team Member Parthapriya Ghosh Team Member Harinath Sesha Appalarajugari Environmental Specialist Pamela Patrick Team Member Tema Alawari Kio-Michael Team Member Saroj Ayush Team Member Helena Goetsch Team Member B. STAFF TIME AND COST Staff Time and Cost Stage of Project Cycle No. of staff weeks US$ (including travel and consultant costs) Preparation FY09 66.536 522,200.95 FY10 92.489 650,650.21 FY11 87.201 410,252.96 74 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) FY12 .225 - 197.39 Total 246.45 1,582,906.73 Supervision/ICR FY11 0 0.00 FY12 79.501 428,223.59 FY13 88.246 598,717.39 FY14 73.361 310,095.53 FY15 61.091 394,354.10 FY16 32.676 314,159.41 FY17 27.620 291,812.76 FY18 34.759 252,883.52 FY19 45.108 257,544.27 FY20 23.951 167,069.15 FY21 5.934 34,048.44 FY22 1.042 6,613.20 Total 473.29 3,055,521.36 75 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) ANNEX 2B. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION: EASTERN DEDICATED FREIGHT CORRIDOR 2 A. TASK TEAM MEMBERS Name Role Preparation Benedictus Eijbergen Task Team Leader(s) Samuel Haileselassie Kebede Procurement Specialist(s) Manoj Jain Financial Management Specialist Satya N. Mishra Social Specialist Harinath Sesha Appalarajugari Social Specialist Supervision/ICR Saroj Ayush, Martha B. Lawrence, Sanjeev Deorao Task Team Leader(s) Moholkar Sanjeet Kumar, Heenaben Yatin Doshi Procurement Specialist(s) Puneet Kapoor Financial Management Specialist Gopalaswamy Srihari Team Member Payal Malik Madan Procurement Team Gaurav Dilipkumar Joshi Environmental Specialist Nitika Surie Procurement Team Parthapriya Ghosh Social Specialist Atul Agarwal Team Member Sivaramakrishnan Kumar Procurement Team Tema Alawari Kio-Michael Team Member Helena Goetsch Team Member 76 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) B. STAFF TIME AND COST Staff Time and Cost Stage of Project Cycle No. of staff weeks US$ (including travel and consultant costs) Preparation FY13 41.671 179,353.94 FY14 65.787 263,021.35 FY15 31.360 103,642.93 FY16 .111 741.92 Total 138.93 546,760.14 Supervision/ICR FY15 16.326 98,906.63 FY16 34.324 250,916.42 FY17 21.691 166,300.76 FY18 29.739 211,057.46 FY19 30.320 194,726.36 FY20 37.723 198,537.70 FY21 47.096 213,584.43 FY22 1.525 5,151.45 FY23 2.001 6,756.01 Total 220.75 1,345,937.22 77 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) ANNEX 2C. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION: EASTERN DEDICATED FREIGHT CORRIDOR 3 C. TASK TEAM MEMBERS Name Role Preparation Benedictus Eijbergen, Atul Agarwal Task Team Leader(s) Samuel Haileselassie Kebede Procurement Specialist(s) Manoj Jain Financial Management Specialist Ranjan Kumar Jain Team Member Carylann Lobo Team Member Davinder P. S. Sandhu Team Member Bernard Aritua Team Member Harinath Sesha Appalarajugari Social Specialist Krishnan Srinivasan Team Member Satya N. Mishra Social Specialist Neetu Sharda Team Member Sudip Mozumder Team Member Martin M. Serrano Counsel Sanjay Srivastava Team Member Junxue Chu Team Member Comfort Onyeje Olatunji Team Member I. U. B. Reddy Team Member Geeta Shivdasani Chawla Team Member 78 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Martha B. Lawrence Team Member Supervision/ICR Saroj Ayush, Martha B. Lawrence Task Team Leader(s) Sanjeet Kumar, Heenaben Yatin Doshi Procurement Specialist(s) Puneet Kapoor Financial Management Specialist Rishi Kothari Team Member Tema Alawari Kio-Michael Team Member Sivaramakrishnan Kumar Procurement Team Bianca Bianchi Alves Team Member Parthapriya Ghosh Team Member Sudip Mozumder Team Member Nitika Surie Team Member Gaurav Dilipkumar Joshi Environmental Specialist Payal Malik Madan Procurement Team Gopalaswamy Srihari Social Specialist Radha Narayan Procurement Team I. U. B. Reddy Team Member D. STAFF TIME AND COST Staff Time and Cost Stage of Project Cycle No. of staff weeks US$ (including travel and consultant costs) Preparation FY15 50.423 303,226.28 FY16 0 0.00 Total 50.42 303,226.28 Supervision/ICR FY15 0 5,253.41 79 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) FY16 25.613 195,906.32 FY17 18.894 134,752.89 FY18 38.110 215,460.02 FY19 44.651 256,116.20 FY20 39.756 271,252.40 FY21 36.571 208,250.85 FY22 60.186 353,684.67 FY23 3.300 12,230.53 FY24 .450 4,043.50 Total 267.53 1,656,950.79 80 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) ANNEX 3. PROJECT COST BY COMPONENT Amount at Approval Actual at Project Percentage of Components (US$M) Closing (US$M) Approval (US$M) Design, construction and commissioning of Khurja – Kanpur & Khurja – 1403.00 1063.50 76% Dadri section of Eastern DFC Design, construction and commissioning of Kanpur 1,643.75 3,108.00 189% – DDU section of Eastern DFC Design, construction and commissioning of 1,087.40 1,587.40 146% Ludhiana - Khurja of Eastern DFC Institutional capacity 50.00 20.00 40% strengthening – EDFC-1 Institutional capacity 6.00 6.00 100% strengthening – EDFC-2 Institutional capacity 18.00 18.00 100% strengthening – EDFC-3 Total 4,208.15 5,802.9 81 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) ANNEX 4. EFFICIENCY ANALYSIS INDIA - Eastern Dedicated Freight Corridor INTRODUCTION 1. Development of the DFC concept was motivated by two strategic objectives: first, to increase capacity on the main transport corridors making up the Golden Quadrilateral linking Delhi, Kolkata, Chennai, and Mumbai; and second, to reduce operating costs for freight carried over these corridors. The main beneficiaries of the Eastern DFC, one side of the Quadrilateral, are the owners and consumers of bulk commodities strategic to the region’s economy, notably coal for power plants, grain from Punja b, iron, and steel. 2. Accordingly, the main benefits of the Project are (a) the economic advantages from being able to transport large quantities of strategic bulk freight that otherwise could not be carried or would have to be sent by road with associated social and environmental costs; (b) savings in IR’s operating costs over the dedicated freight corridor (existing traffic), and (c) savings in travel time of passengers due to faster movement of trains on the existing track. 3. The EDFC corridor consists of six sections (Table 1). Table 1: EDFC sections as on 31 August 2023 From To Distance (km) Track Plan Open 1 Ludhiana Khurja 401 401 Single 2 Khurja Kanpur 401 401 Double 3 Kanpur Mughal Sarai 352 352 Double 4 Mughal Sarai Sonnagar 137 137 Double 5 Sonnagar Dankuni 538 0 Double 6 Khurja Dadri 46 46 Double Total 1875 4. The sections have been progressively commissioned over the last four years. The Khurja- Kanpur section was historically the most congested and was therefore the first to be completed. The other sections have only been operating for a year or less. This economic evaluation considers only the four sections funded by the IBRD loan and has not undertaken any evaluation of the two sections east of Mughal Sarai (DDU). At the present time the DFC corridor is still in the ramp-up stage. 5. The DFC tracks almost always run alongside existing IR tracks, except for some greenfield alignments to bypass built-up urban areas. They are connected to IR’s network where important sources of traffic can be expected: major cities and junctions with other IR main lines. In addition to the DFC network proper, IR has been upgrading about 20 lines feeding into EDFC, to bring their bridge and track standards to take advantage of the 25-ton axle-loads allowed on DFC. By February 2023, IR had upgraded nearly 2000 km of track (out of a plan total of 3300km) and 718 bridges (the more critical) out of a plan total of 777. 82 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) CURRENT CORRIDOR TRAFFIC 6. Freight traffic that could potentially use the EDFC line was defined as that between two catchment areas at the eastern and western ends of the corridor. A detailed analysis has been made of the traffic demand in the corridor for the three years to 2018-19, the last year before the COVID outbreak disrupted both rail traffic and economic activity more generally. This covers routes not only on the routes immediately parallel to the DFC network but also traffic to and from Punjab which can use an alternative route from DDU via Lucknow and Moradabad. Table 2 gives the estimated flows by section and direction in the EDFC corridor based on the 2018-19 volumes. Table 2: Estimated corridor flows by EDFC section 2018-19 (million tons) From To Westbound Eastbound DDU Allahabad 53.2 17.4 Allahabad Kanpur 58.4 21.7 Kanpur Tundla 51.6 21.6 Tundla Khurja 35.1 13.4 Khurja Dadri 15.8 3.8 Khurja Saharanpur 28.2 19.3 Saharanpur Ludhiana 28.9 20.0 2020-21 forecast in 2006-7 Kanpur Tundla 62.8 21.5 7. The most heavily used sections are between DDU and Tundla, the junction for traffic to/from Agra and the North-Western zone. At Khurja, the Delhi traffic diverts to Dadri with the remainder continuing to the Punjab. In practice, in 2018-19, about 25% of the Punjab traffic moved along the Saharanpur – Moradabad-Lucknow – DDU corridor rather than the main route. The Kanpur – Tundla estimated actuals for 2018-19 are remarkably close to the corridor forecasts for 2020-21 made at appraisal. 8. Since 2018-19, rail traffic has been affected by COVID-19. The impact on passengers was severe and traffic is still recovering but freight was only lightly affected and is now (March - June 2023) some 25% higher than in March – June 2019 (Figure 1). No detailed data is available for traffic flows since 2018-19 but summary statistics of freight handled on the Northern Railway (NR) and North Central Railway (NCR, the IR lines parallel to the EDFC, NR and NCR show growth like that for IR as a whole. Freight trains on NCR have increased by 20% since 2018-19 after allowing for the diversion to EDFC while in NR traffic terminating has increased by 5% and traffic dispatched increased by 30%, giving an average increase of 10%. In the absence of more detailed data, a single figure for the growth between 2018-19 and 2020-21 of 16% has been adopted. 83 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Figure 1: IR monthly traffic 2017-18 – 2023-24 800 160 700 140 Passengers/month (million) 600 120 500 100 Ton 400 80 300 60 200 40 100 20 0 0 Apr-17 Oct-17 Apr-18 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Apr-21 Oct-21 Apr-22 Oct-22 Apr-23 Jan-18 Jul-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jul-17 Jul-19 Jul-20 Jul-21 Jul-22 2017 2018 2019 2020 2021 2022 2023 Passengers Long-dist passengers Tonnes 9. Tables 3 and 4 give the principal commodities carried by section and direction in 2018-19. Table 3: Corridor tonnage by commodity (west bound) 2018-19 (000 tons) M-A A-K K-T T-K K-D K-S S-l Cement 581 552 495 200 0 1207 1207 Coal 45133 46551 39341 25113 9773 16497 16497 Containers 711 1402 1402 1023 365 3261 3249 Fertilizer 0 221 522 727 96 2845 3487 Iron and steel 5242 8476 8476 6907 4789 2373 2373 Petroleum 840 759 753 746 715 798 798 Other 733 482 567 375 84 1209 1246 Total 53241 58444 51556 35090 15823 28189 28856 10. The principal westbound traffic on all sections is coal, being 85% of the tons carried between DDU and Allahabad, reducing until in the Punjab it only represents 57% of the traffic. This is largely coal for power stations, either publicly owned or belonging to private generators. A small amount (about 3%) is for other users, such as fertilizer plants. Iron and steel make up most of the difference, other than containers and fertilizer moving into the Punjab. Foodgrains dominate the eastbound flows, being over 75% of the traffic as far as Khurja and remaining at over 50% throughout the remainder of the corridor. 84 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) Table 4: Corridor tonnage by commodity (east bound) 2018-19 (000 tons) L-S S-K D-K K-T T-K K-A A-M Cement 1111 930 0 262 1082 583 411 Containers 2265 2264 157 300 2468 2468 754 Fertilizer 45 45 13 24 143 1589 1685 Food grains 15519 15029 2693 11645 11041 10827 10305 Ores 184 184 0 121 2811 2665 2227 Petroleum 183 183 0 0 0 0 0 Salt 0 0 0 0 761 692 661 Other 665 665 897 1023 3250 2897 1337 Total 19972 19301 3760 13375 21556 21721 17380 11. Passenger traffic comprises a large but variable part of total traffic in the Eastern Corridor (Table 5). Longer-distance passenger trains (more than 500 km) represent about 50% of the corridor’s total traffic. Whilst freight traffic is reasonably consistent through the year, passenger traffic increases in summer months and the volumes and capacity usages in this table allow for this. Table 5: Train Traffic on the Existing Parallel Line -2022/23 (Trains/day) From To Trains/day % capacity Passenger Freight Other Capacity 3 hr. MB DDU Allahabad 110 74 10 150 148 Allahabad Kanpur 110 74 10 150 148 Kanpur Tundla 136 32(1) 20 162 129 (1) Tundla Khurja 136 42 20 176 129 Khurja Dadri 128 52 20 182 126 Khurja Saharanpur 128 60 20 164 145 Delhi Ambala Saharanpur Ludhiana 122 68 16 148 159 DDU Lucknow 66 46 16 52 281 Lucknow Moradabad 130 66 20 110 224 Moradabad Saharanpur 78 62 20 110 166 Source: IR Line Capacity statements, mid-section volumes 12. A capacity usage of 100% does not mean complete paralysis of the network but rather that there are significant delays to traffic. IR typically prioritize passenger services so that as usage increases the speed of freight trains reduces faster from the free-flow speed than do the passenger services. A detailed analysis was made of one of the competing corridors and the evaluation assumes that, at capacity, passenger services operate at 65%, and freight trains at 40% of their free-flow speeds. In practice, this means passenger services are operating at 60-70 km/hr. on the conventional network and freight trains at 25-30 km/hr., including en-route delays because of congestion. 85 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) CURRENT DFC OPERATIONS 13. The first commercial operations on EDFC began in December 2020 between Khurja and Bhaupur and full operations between DDU and Dadri in October 2022. The traffic volumes are still in the ramp-up stage, and this is particularly relevant for eastbound traffic, the majority of which originates in the Punjab (Table 6). Table 6: DFC Operating statistics 2020 -21 to date (July 2023) DDU - Kanpur Khurja - Kanpur Khurja - Dadri Up Down Up Down Up Down Train-km (000) Dec 2020-21 220 361 2021-22 1 1 1295 1678 2022-23 1028 783 2689 2465 77 76 2023- July24 872 832 1109 1144 76 60 Gross tons/train- km Dec 2020-21 4497 2048 2021-22 4308 2321 2022-23 4273 2046 4712 2191 4180 1397 2023- July24 5329 2097 4987 2344 6096 1752 Net tons/train-km Dec 2020-21 863 718 2021-22 1878 1185 2022-23 2731 916 2396 1147 3038 87 2023- July24 3835 464 3220 616 3219 289 14. The table clearly shows the ramp-up in terms of traffic moving from the IR network to DFC, with the Khurja – Kanpur section doubling its train-km between 2021-22 and 2022-23 with a further increase of about 30% so far in 2023-24. DDU – Kanpur similarly shows 2023-24 traffic is likely to be well over double that in 2022-23. In 2022-23, the Khurja – Kanpur handled the equivalent of 20 pairs of trains daily, or about 56 percent of the trains operating in that section of the corridor. Its share of through freight services would have been rather larger. In 2023-24, it is handling the equivalent of 26 pairs daily, well over 60 percent of the through services. 15. Table 5 clearly shows the much smaller trainloads in the ‘Down’ (or eastbound) direction. This imbalance will be less pronounced as Phase 3 traffic ramps-up and the Punjab-originating traffic uses the complete DFC route. The evaluation assumptions of an overall average train size of 3700 tons (gross) and 2500 tons (net) appear to easily achievable once the ramp-up is complete. 16. The agreement between DFC and IR expects 70 percent of the traffic on the parallel routes to transfer but this is likely to be a minimum as the ramp-up continues. The evaluation is based on a long-term 86 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) diversion of 80 percent of the through traffic. On the DDU – Khurja route, this has been taken as 80 percent of the traffic, with the Lucknow-Moradabad route diverting 60 percent as far as Lucknow and 40 percent north of Lucknow. 17. Operational data gives the average speed of freight trains on DFC as 59.3 km/hr. An average speed of 60 km/hr. has been assumed for the evaluation. TRAFFIC FORECASTS Corridor Passenger 18. Passenger traffic demand on the parallel IR lines was forecast following national passenger traffic growth estimates, based on a regression of IR historical data, at an average 3.3% p.a. up to FY30 between FY31 and FY40, and 2.1% between FY41 and FY52. This was adjusted for COVID based on the data underlying Figure 1 and is forecast to have fully recovered by 2024-25. Corridor Freight 19. Traffic growth rates have been estimated for the main commodities from FY19 to FY45. The commodities form two groups: • those whose growth will be closely related to real growth in GDP, with the relationship defined by elasticities. Their growth is based on real GDP growth rates of 6% p.a. until FY40 and 5% p.a. thereafter. The elasticity of total freight demand to GDP is commonly about 0.9, with some variations depending on individual commodities. • Those whose growth will be affected by structural changes in their economic sector. For these commodities (coal, food grains, fertilizer and petroleum products, detailed analyses have been made based on sector-specific plans for changes in supply and consumption patterns 20. Coal: this was about 40 Mt in FY19, 56% of total traffic; 97% of this was used for power generation while the rest was destined for fertilizer production and other industrial uses. All coal traffic went westwards, mainly from the collieries in Jharkhand, Chhattisgarh, Odisha, and Madhya Pradesh to the coal-fired thermal power stations (TPS) in Haryana, Punjab, and Rajasthan. Forecasts for thermal coal demand growth indicate less than the 2.1% CAGR seen in coal-based electricity generation in the FY09- FY19 period due to: i) increasing importance of the services sector in the GDP growth; ii) improvement in end-user consumption efficiency and energy conservation; iii) reduction in transmission and distribution losses; iv) significantly higher renewable energy penetration; v) improved specific coal consumption (SCC) in TPSs; vi) improved long-distance power transmission from more cost-efficient thermal power stations, such as coastal, pithead, and Ultra Mega Power Plants (UMPPs). Considering these trends, coal traffic on the EDFC is forecast to grow at 1.1% p.a. until FY30 and then stabilize, with marginal growth of 0.1% p.a. to FY40 and then decreasing at 1.8% p.a. as the Punjab stations reach the end of their economic life. 21. Food grains: this was 11 Mt in FY19. Most of the traffic (98.5%) goes eastwards, mainly rice and wheat from Punjab and Haryana to Bihar, West Bengal, Assam, and Uttar Pradesh. Traffic travelling westwards (1.5%) is mostly maize transported from Bihar and Madhya Pradesh to Punjab and Haryana. Historically, total food grains consumption has slowly and consistently increased due to increasing population, although per capita consumption has declined even among poor households, both in rural and urban settings. Changes in the dietary pattern towards animal products have also led to an increased demand 87 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) of food grains as feed. Following the trends shown in different studies and driven by a growing population, food grains traffic travelling east (mostly wheat and rice) is expected to increase at 2% up to FY30 and 1% p.a. thereafter. This deceleration is due to the slowing population growth and the transition of different income groups to higher levels of income, where elasticities of wheat and rice consumption to per capita income are more negative. 22. Iron and steel: This was 9 MT in FY19, all of it travelling westwards, mainly from Jharkhand, Odisha, West Bengal, and Andhra Pradesh to Uttar Pradesh, Haryana, and Punjab. Iron and steel demand is highly related to the secondary sector growth (construction, real estate, capital goods production, etc.), which has shown historical elasticities with respect to GDP of around 1.0. With the Indian government’s focus on infrastructure (e.g., dedicated freight corridors), manufacturing (e.g. National Manufacturing Policy and the Make in India campaign) and the increasing urbanization (e.g. affordable housing and smart cities initiatives), the outlook for the secondary sector and iron and steel consumption remains positive. However, as the tertiary sector gains importance over time, the elasticity of the secondary sector growth with respect to GDP is expected to decline. In this scenario, the projection for the secondary sector growth, and therefore that for iron and steel transport demand, based on GDP growth elasticities, is 0.95 to FY30, reducing to 0.90 between FY30 and FY40 and 0.85 thereafter. 23. Containers: This was around 3 MT in FY19. 56% travels eastwards, mainly from Rajasthan to Uttar Pradesh and West Bengal, and 44% westwards, from Odisha, West Bengal, and Uttar Pradesh to Punjab and Rajasthan. The projection for container traffic, which usually consists of time-sensitive higher-value products which would take advantage of higher service levels on EDFC, is based on JICA and PWC estimates and other market reports, which indicate elasticities above 1.0 with subsequent deceleration towards 1.0. In the forecast, an elasticity of 1.25 has been adopted up to FY30 for both directions, reducing to 1 thereafter. 24. Petroleum, Oil, and Lubricants (POL): This was 2 MT in FY19. On average, 67% of the total (mostly High-Speed Diesel, HSD) travels eastwards from Haryana and Uttar Pradesh to Uttar Pradesh and Bihar. 33% (mostly Naphtha, a flammable oil) travels westwards, from Bihar, Assam, and West Bengal to Haryana. Based on India’s oil demand forecasts by IEA, in line with those by BP and OPEC, POL traffic is expected to grow at 3.5% p.a. to FY30, reducing to 2.5% to FY40 and 1.5% thereafter. 25. Fertilizers: These flows are about 3MT westbound in the Punjab and up to 2MT eastbound from Kanpur. 60% travels eastwards from Lucknow and Moradabad to West Bengal, Assam, and Bihar and 40% travels westwards from Odisha and Uttar Pradesh to Delhi, Haryana, and Punjab. The increase in fertilizer consumption has contributed significantly to sustainable production of food grains in the country. With the increase in population and urbanization levels fertilizers are expected to play a key role in improving average crop yields. Based on estimates by the Indian Chamber of Food and Agriculture (ICFA), the Department of Fertilizers, and PwC, fertilizer traffic is forecast to grow at 2% p.a. westwards and 3% p.a. eastwards up to FY30, by 1% p.a. westwards and 2% eastwards to FY40 and by 1% p.a. in both directions thereafter 26. Ores, salt, clinker, cement, and others: Most of the remaining commodities and goods, which totaled 6.5 MT in FY19, are related to the secondary sector. Their growth is estimated through elasticities giving 88 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) sectoral growth with respect to GDP of 0.95 to FY30, 0.90 to FY40 and 0.85 thereafter. Traffic is expected to grow at the rates shown in Table 7. Table 7: Traffic Growth Rates, 2008-2045 Growth related to GDP Growth independent of GDP 2024-30 2031-40 2040+ 2024-30 2031-40 2040+ GDP growth (% p.a.) 6% 6% 5% Elasticity Westbound (Up) Cement 0.95 0.90 0.85 Coal 1.1% 0.1% -1.8% Containers 1.25 1.00 1.00 Fertilizer 2.0% 1.0% 1.0% Iron and steel 0.95 0.90 0.85 Petroleum 3.5% 2.5% 1.5% Other 0.95 0.90 0.85 Eastbound (Dn) Cement 0.95 0.90 0.85 Containers 1.25 1.00 1.00 Fertilizer 3.0% 2.0% 1.0% Food grains 1.5% 1.0% 0.5% Ores 0.95 0.90 0.85 Petroleum 3.5% 2.5% 1.5% Salt 0.95 0.90 0.85 Other 0.95 0.90 0.85 27. These rates and elasticities have been applied to the existing traffic in each section of EDFC as summarized in Tables 3 and 4 to give the tonnages and overall growth rates by section summarized in Table 8. Table 8: Forecast corridor volumes by section DDU- Allahabad- Kanpur- Tundla- Khurja- Saharanpur- Khurja-Dadri Allahabad Kanpur Tundla Khurja Saharanpur Ludhiana 2018-19 70621 80165 73112 48465 19583 47489 48828 2023-24 81594 92621 84472 55996 22626 54868 56415 2029-30 92733 107662 99189 64228 26780 64373 66160 2039-40 109899 133803 126067 77976 34618 81465 83634 2044-45 118674 151280 145605 84089 38632 93116 95638 Growth FY19– 1.7 2.1 2.2 1.8 2.2 2.2 2.2 FY45 (% p.a.) 89 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) 28. In addition to growth in the existing traffic flows, EDFC can expect to carry traffic diverted from road to rail. This has been included as a progressive escalation from 0% to about 10% of transferred traffic to EDFC by FY30, based on a detailed market survey by consultants. Diversion to DFC network 29. The new line will provide much faster transits for freight traffic as well as additional capacity on the parallel routes, as shown in Table 4. Most traffic could be expected to divert to DFC, as there is a significant operating cost advantage, especially in terms of the capital cost of rolling stock, as well as the benefits to shippers of more reliable service. This diversion will not happen immediately, as operating arrangements, crewing and locomotive rostering need to be adjusted but has already taken place to a significant degree on Phase 1, where the expected 100% diversion is likely to be reached five years after commissioning (and Year 1 was only 3 months). Transfer should be faster for the other two phases, as many services will already be on DFC for part of their journey, and Table 9 shows the ramp-up profiles adopted in the analysis. Table 9: Ramp-up (% of ultimate diversion) Year after opening 1 2 3 4 5 Phase 1 6% 35% 60% 80% 100% Phase 2 24% 60% 85% 100% 100% Phase 3 35% 75% 100% 100% 100% 30. Table 10 summarizes the number of trains by section for the base year of 2018-19 and for the forecast years of 2022-23, 2025-26 (the first year after project completion) and 2029-2030. Table 10: Demand forecasts by section Year ending March 2019 2025 2030 2040 Passenger trains/day Phase 1 136 161 179 222 Phase 2 110 130 145 180 Phase 3 122 97 113 134 IR freight trains/day Phase 1 77 17 19 24 Phase 2 74 25 18 22 Phase 3 68 35 20 25 DFC freight trains/day Phase 1 0 76 105 133 Phase 2 0 59 90 111 Phase 3 0 41 69 88 90 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) 31. Figure 2 shows the freight traffic forecasts by section. The growth consists of three stages for each phase: • The initial ramp-up phase of 3-4 years • The period to 2030 during which additional rail traffic is generated which would otherwise travel by road. • The period after 2030 during which growth is solely caused by natural market growth. Figure 2: Net ton-km by section (million) ECONOMIC EVALUATION 32. The economic evaluation follows the same methodology employed at appraisal. The costs and benefits have all been expressed in INR 2022 and form five groups: • The construction cost measures the difference in capital cost between the with- and without- projects scenarios. • Operator benefits estimate the benefits to railway operators through the increased network capacity, allowing faster operating speeds, lower operating costs for those services transferring to DFC and benefits from being able to defer investment in additional capacity that would otherwise be required 91 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) on the existing network. They also include the difference between the DFC network maintenance cost and the reduced maintenance costs on the existing IR network because of traffic transferring to DFC. • User benefits estimate the gains to the existing end users of the services, covering both passenger and freight. Passengers will gain a small benefit from the small increase in travel speed because of freight traffic transferring to DFC (passenger services currently get priority so the increase is relatively small). Freight shippers will get a faster service but, more importantly, will get a far more reliable service as DFC is a dedicated freight line which, when fully operational, should be able to run through fixed timetables. • Generated traffic benefits are primarily the operating cost savings because of freight being shipped by rail rather than road. There are also some small benefits to the shippers themselves. • External benefits are a combination of the benefits from generated traffic transferring from road to rail (decongestion, reduction of accidents, etc.) and the benefits from the reduction in GHG emissions. Emissions savings come from the road freight transferring and the improved fuel economy of better operating conditions on the new line. Construction cost 33. The construction cost used includes expenditure using both IBRD funds and funds provided by GOI as equity. This have been provided by DFC on an annual basis and converted to 2022 using the rail Construction Cost Index for Delhi. The total expected construction cost for EDFC-1, EDFC-2 and EDFC-3 is INR 300 billion (INR 2022). Operator benefits 34. Operator savings internal to IR when the base traffic switches from the existing tracks to the DFC tracks will consist of savings in energy and materials, replacement of locomotives and wagons, and staff. The triggers for these train-related savings (which are known as above-rail variable costs) are: • reduced energy consumption from running at steady speed rather than stop-go, thanks to DFC’s improved track quality and avoiding the need for trains to slow down to pass through stations and yards. (The existing lines have stations every 10-15 km, whereas the only turnouts on the DFC line will be at junctions with feeder lines, at intervals of 80-100 km.) On the existing mixed-traffic lines passenger trains often require freight trains to stop and wait in sidings while the faster trains overtake them. Such waiting is partly programmed (foreseen in the timetable), and partly un- programmed but triggered by other trains running late. The un-programmed waiting gets worse as the existing line gets more congested. DFC, by eliminating the need for this practice, will also help keep freight train speeds constant. • savings in wagons from larger wagon capacity made possible by 25-ton axle-load limits instead of 22.5 tons, and wagons with lower tare weight relative to their payload capacity. These will be achieved as the wagon fleet is progressively renewed to the higher capacity. There will also be savings in locomotives from the resulting larger train size (net tons), and in wagons and locomotive capital cost and crew costs from faster turnaround (i.e., more paying ton-km performed per year). In addition, all rolling stock will have slightly lower maintenance costs because of the better track condition provided on DFC. 92 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) 35. The infrastructure staff requirements per unit distance will be substantially less on DFC than on the existing network and there will be savings on the IR network because of the tonnage transferred to DFC. The construction of road over-bridges replacing level crossings will save labor on both lines, and the modern signaling and telecommunications on DFC will greatly reduce staff in this area. Overall, there will be a net reduction in infrastructure-related costs for IR and DFC combined. 36. The savings in above-rail operating costs have been estimated by analysis of the IR operating costs for 2021-22 and are summarized in Table 11. They are a function of speed because of the significant contribution of capital and crew costs. Overall, they show a 35% reduction in total above-rail operating costs on DFC, largely due to train crew and rolling stock capital cost savings. Table 11: Savings in Above-Rail Operating Costs on DFC (Rs per 1000 ntkm) Freight Trains IR With DFC Saving Energy 34 29 5 Rolling stock replacement 92 40 52 Locomotive maintenance 18 10 8 Wagon maintenance 120 91 29 Train crew 173 107 67 Total 160 37. The savings in infrastructure cost have been estimated using DFC’s estimates of the staff required for operation and routine maintenance plus an allowance for periodic maintenance (tamping, re-sleepering and rail renewal), calibrated against the costs for the operational Kanpur – Khurja section. 38. The ‘without DFC’ scenario assumes that IR would add additional track to existing lines when the volume/ capacity (V/C) ratio exceeds 110%. As that track too reaches capacity further into the future, IR would continue to add additional tracks as required and a fourth track, that would take the capacity of all four tracks to about 400 trains per day. The cost of this has been estimated by looking at the cost of triplication and quadruplication projects currently in progress on Northern and North Central railways. The estimates include that about 1400 track-km would be laid under this assumption, about 75 percent of the track-km constructed under the project. 39. Savings in operating costs of ‘base’ passenger trains: Once the freight trains are routed onto the DFC tracks, the passenger trains will experience fewer delays due to congestion and will be able to sustain stable higher speeds. This saving varies with the reduction in congestion on each section but is typically about 15% of the passenger above-rail costs (i.e., excluding infrastructure and corporate overheads) for the sections included in the evaluation. User Benefits 40. Savings in travel time of ‘base’ passenger trains: With the decongestion of the IR existing tracks and faster movement of trains, there is expected to be a significant savings in travel time of passengers. This is the product of very large flows and substantial time savings. Typically, when the freight leaves the existing lines, the average speed of passenger trains will increase by about 15 km/hr., from about 55 km/hr. to about 70 km/hr. This is worth about three hours for a 700 km trip (Phases 1 and 3). There are 93 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) around 100-150 passenger trains on the various links, and it is assumed 1,000 passengers per train (the average for all India is about 1,000, for Northern is 1,600 and for North Central about 1,200), since these are mainline services. The 2022 value of time for rail passengers has been taken as Rs 56/hr. ($0.69) (this is equivalent to a wage of about Rs 16,000 per month), increasing in line with per capita GDP. 41. The improved level of service available from the DFC lines should also benefit freight customers, providing a more reliable service with better en-route information. Typically, rail customers perceive a penalty of about 15-20% of the rail tariff from the level of service, primarily because of unreliability and lack of information. The improved service on DFC should reduce this significantly. However, as much of the traffic is coal, a relatively low quality, a penalty of 10% of the tariff has been assumed for the existing network, reducing to 5% for traffic carried on DFC. Diverted Traffic 42. Diverted traffic: modal shift from road to rail: ‘Diverted traffic’ moves by road in the ‘without project’ scenario but switches to rail in the ‘with project’ case, attracted by rail’s lower tariff and shorter journey time. Because of lack of network capacity, IR until now has had a national policy to accept only full trainload shipments of freight, which cost far less to handle than smaller shipments. Privately operated logistics terminals are being planned along the EDFC route to consolidate train loads of cargo presently going by road, with most traffic diverting to rail likely to be containers and possibly new cars, both of which fall under a specific policy of IR to attract intermodal freight and continue the profitable expansion of today’s containers-on-rail operations. 43. On the line under evaluation IR has set itself the target of attracting 2-4 pairs of trains per day of containers and other high-value freight such as new automobiles. Non-bulk freight now carried by multi- axle trucks over distances greater than about 500 km will be targeted by CONCOR, and other private (or semi-private) firms licensed by IR to retail its carrying capacity to the market. Containers will be the main means for consolidating shipments, but the concept may be extended to car-carriers, RO-RO, and other specialized wagons. Such firms will contract with IR to haul –on a scheduled basis-- rakes of flatcars carrying the containers and trucks, or of closed car carriers (to protect the cars against vandalism). The licensed operators will own the flatcars and bear the commercial risk of filling the contracted capacity. This type of operation has been operating successfully for several years in other parts of IR’s network, and IR plans to expand it as its immediate approach for handling non-bulk freight. 44. The relevant incentive is the improvement in the generalized cost that the project will allow rail transport to offer. Its quantity is calculated by reference to the reduction in generalized cost (tariff + value of time). External benefits Modal Shift Impacts 45. The diversion of freight traffic from road to rail will reduce traffic volumes creating road decongestion benefits and accident benefits. The decongestion benefits have been estimated as the road construction 94 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) that can be deferred as traffic diverts to rail. This used a construction cost of Rs 250 million per lane-km, with a capacity of 3.6 million trucks per lane per year. 46. Accident benefits have been estimated using a rate of 10 fatalities per 100 million vehicle-km and a cost per fatality of Rs 13.7 million. Reduced Emissions of Carbon Dioxide 47. The energy consumption by freight traffic that would use IR’s tracks in the ‘without-DFC’ scenario was 5.90 kWh per 1000 gross ton-km. On the DFC tracks, with less congested operation, more efficient rollingstock and better infrastructure, it would normally be less but, because of the increased speed of operation, in practice the DFC services are using 6.90 kWh per 1000 gross ton-km, 17% less. 48. The ratio of CO2 to electricity generation –low-thermal coal being the fuel for 70-80 percent of total generation—in 2019-20 was 0.713 gram per kWh. This has been increased by 5% to allow for transmission losses to the railway and by a further 10% to convert to a well-to-wheel (WTW) value. This is expected to reduce as the older and less efficient power stations are retired and as renewable energy provides a much greater share of supply. The analysis has adopted the Baseline scenario developed in an ICCT working paper30, which expects CO2 emissions per kwh to reduce by 35% by 2030 and by 82% by 2040. 49. Modal shift from road to rail will also reduce CO2 emissions. Whilst heavy road freight is effectively all diesel-hauled at present, it is expected electric trucks will be introduced as battery technology is improved. The ICCT working paper estimates that 50% of heavy and medium truck sales by 2040 will be electric vehicles (EV). The analysis assumes that 10% of the fleet will be EV by 2030 and 30% by 2040. 50. The loss from the apparent increase in traction energy consumption on DFC is estimated at savings from the improved operating conditions that are estimated at 65,000 tons p.a. in 2030, reducing to 27,000 tons p.a. as the grid decarbonizes. The transfer of freight from road to rail has a much larger impact, saving 500,000 tons in 2030, which only increases to 534,000 tons in 2045. 51. In addition to the emissions associated with operations, the analysis has also included the emissions from the construction activities for both road and rail. This has been done using typical values of emissions per kilometer, based on estimates developed from actual transport projects in India31. These have totaled 2.8 million tons for the DFC construction, offset by 3.3 million tons for the rail capacity increases that will be avoided and 0.2 million tons for the avoided road capacity increases. 52. The economic value put on CO2 avoided is the standard IBRD rate of $47 per metric ton in 2020, increasing to $83 per ton in 2045. 30 Understanding the emissions impact of large-scale vehicle electrification in India, Sen A et al, Working paper 2021-12 31 Life cycle analysis of transport modes, TERI,2012 95 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) RESULTS Base Case 53. Table 12 summarizes the economic evaluation of the project at appraisal. The EIRRs have been calculated for the project over a life of 30 years from the start of significant construction in 2015.It includes the EIRR, the NPV (in INR 2022), and the principal costs and benefits included in the evaluation. Table 12: Estimated EIRR and NPV (discounted at 10% p.a. to 2022) (INR 2022 billion) % of Total Component Rs billion Benefits Infrastructure –related costs DFC infrastructure -179 Feeder network -8 IR investment avoided 43 Infrastructure maintenance (net) 15 Road construction avoided 10 Subtotal -119 - Benefits Base traffic benefits Passenger users 33 14 Passenger operating costs 9 4 Freight users 13 6 Freight operating costs 113 49 Subtotal 169 73 Diverted traffic Customer benefits 11 5 Operating costs 41 17 Subtotal 52 22 External benefits 11 5 Total benefits 232 100 TOTAL NPV 113 54. The project has an EIRR of 14 percent and an NPV, discounted at 10% to 2015, of Rs. 112 billion ($7.2 billion); Table 2 lists the key benefits by component. • 73 percent of the benefits are savings associated with existing traffic. Of these, 18% are associated with passenger services, largely accruing to passengers through reduced journey times, and 49% are from freight services, largely because of the reduced operating costs on the DFC. • Around 35 per cent of the cost of construction of DFC is offset by the savings from avoiding the expansion of the existing corridors, at a higher unit cost, and from the savings in infrastructure maintenance. • About 22% of the benefits are associated with generated traffic, mostly from the reduced operating cost of rail (including road access/egress) compared with road. 96 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) • Finally, about 5% of the benefits are external benefits, about two-thirds from reduced accidents with the transferred freight and the remainder from CO2 emissions avoided. 55. Table 13 summarizes a series of sensitivity tests on the key variables, including the growth rates of the freight traffic and Table 14 depicts the EIRR and NPV at appraisal. Table: 13 Sensitivity tests Test EIRR (%) NPV (INR 2022 bn) Base 14 113 No generated traffic benefits 13 60 Freight growth from 2022 reduced by 50% 14 87 Generated traffic from 2022 reduced by 50% 13 77 All freight growth from 2022 reduced by 50% 12 54 DFC operating cost 80% of IR 14 94 Externalities excluded 14 102 Passenger benefits excluded 12 57 Passenger growth reduced by 50% 14 115 Table 14: Estimated EIRR (2008/09 constant prices) EIRR (%) NPV (INR bn) Base Phase 1 22 98 Phase 1+ 2 22 208 Phase 1+2+3 23 316 Sensitivity Tests (on 1+2+3) Construction costs increased 30% 19 269 Transfer rate to DFC reduced to 75% from 85% 22 277 DFC above-rail cost savings reduced from 25% to 15% 22 274 IR construction avoided reduced 50% 21 263 No diverted traffic 19 174 56. The project is robust to variations in the capital costs and assumptions about traffic transfer rates and avoided investment. It is virtually independent of growth in passenger traffic. This is because, once the capacity of the parallel routes has been increased to a capacity of 110% of traffic, with the accompanying benefits, any further growth is very largely driven by growth in passengers, and this is the same for both the with and without-project cases. Passenger train performance is virtually static after the initial burst of capacity expansion and annual performance improvements per passenger are thus unchanged. Overall, benefits due to the reduction in additional track capacity are balanced by reduced passenger benefits, both due to the reduction in growth 57. The impact of changes in freight growth is similarly reduced, although in this case the slower overall growth means DFC carries a smaller traffic volume and the operating cost benefits are correspondingly reduced. A reduction in the growth of generated freight traffic has a larger impact as it also reduces the 97 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) external benefits due to road construction, accidents and GHG emissions. However, even when both the existing freight and the generated freight have their growth rates halved, the project still returns an EIRR of 12%. 58. The underlying reason for this solid performance is that these lines are extremely congested and are experiencing continuing growth; without the project, capacity will be provided but slower and more expensively, delivering a lower level of service. 98 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS Borrower’s Comments Performance of the World Bank: 1. World Bank initially provided 3 million USD as Project Preparation Fund which was utilized for preparatory study for Project Appraisal. During this period, Civil Engineering Proof Consultant for verification of site data, Design and Performance Parameter Review Consultant to examine Design and Performance Parameters included for Civil and System Works Bid Document, International Panel of Experts to advise DFCCIL regarding Project Procurement Strategy, Legal consultant to review Project Procurement Document from legal perspective were engaged. All these consultants provided the necessary help during Project Appraisal as well as created confidence of stakeholders with respect to Project Planning and reliability of Project Data. 2. During Project Implementation, the World Bank Team included experts of various field having great exposure and international experience, which was very helpful for DFCCIL for establishing systems related to procurement, land acquisition, social and environmental issues, financial management, risk management etc. World Bank helped DFCCIL by arranging training in various fields including FIDIC based GCC and provided valuable inputs during prior review process for Engagement of Consultant and Contractors. This was very helpful in institutional strengthening of DFCCIL with respect to International Competitive Bidding, Financial control as well as management of Environmental and Social issues for such large linear infrastructure project. 3. After the contract award in the process of project supervision, World Bank conducted various supervision missions at regular interval along with mid-term review and during these mission, World Bank team guided DFCCIL with advance technology for project monitoring leading to knowledge gain for DFCCIL officials. DFCCIL was executing for the first time such large infrastructure project on Design Build Lump – sum basis and system of PMC was also new for DFCCIL, however very helpful in supervision of the work considering the skeleton manpower planned with DFCCIL and monitoring of various items of the projects and bringing international expertise in the PMC Team which led to experience gain by DFCCIL officials for project execution and monitoring. 4. World Bank mandated the requirement of QSAC during the construction phase to ensure that quality and safety issues are given due importance during project execution. Input of QSAC was very helpful for DFCCIL and World Bank for close monitoring of Quality and Safety issues to ensure that quality infrastructure for heavy haul train operation is created in a safe environment as per best international practices. 5. Under the TA Component, various studies were conducted for strengthening DFCCIL as an institution to construct, operate and maintain Heavy Haul Railway System and best international standards are incorporated related to manpower requirement for operation phase, savings in energy consumption during train operation, to provide access to DFCCIL network to private operators. Reports prepared by consultants were reviewed by World Bank and very useful inputs provided by the World Bank team to ensure reports provided by consultant met the purpose. 99 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) 6. Overall DFCCIL experience with World Bank team was extremely good and DFCCIL found World Bank team members very cooperative and responsive to the project requirement and provided all assistance and guidance for execution of such large infrastructure projects. World Bank team was also helpful for bringing the support of stake holders due to their acquaintance as they were executing large portfolio in various sector in India. 100 The World Bank Eastern Dedicated Freight Corridor 1 (P114338), Eastern Dedicated Freight Corridor 2 (P131765), Eastern Dedicated Freight Corridor 3 (P150158) ANNEX 6. SUPPORTING DOCUMENTS Additional documents available in the Project Files: 1. The Eastern Dedicated Freight Corridor Program 2. Institutional Capacity Building 3. Procurement Management 4. Social Safeguards Management 5. Technical Innovations 101