The World Bank Uttar Pradesh Core Road Network Development Project (P147864) REPORT NO.: RES38695 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF UTTAR PRADESH CORE ROAD NETWORK DEVELOPMENT PROJECT APPROVED ON MARCH 29, 2019 TO REPUBLIC OF INDIA TRANSPORT SOUTH ASIA Regional Vice President: Hartwig Schafer Country Director: Junaid Kamal Ahmad Regional Director: Guangzhe Chen Practice Manager/Manager: Shomik Raj Mehndiratta Task Team Leader: Sanjeev Deorao Moholkar, Elena Y. Chesheva The World Bank Uttar Pradesh Core Road Network Development Project (P147864) ABBREVIATIONS AND ACRONYMS CRN Core Road Network DEA Department of Economic Affairs, Government of India GIS Geographical Information System GoUP Government of Uttar Pradesh PMC Project Management Consultant PWD Public Works Department RAMS Road Asset Management System (RAMS) UP Uttar Pradesh UPHP Uttar Pradesh Highway Police UPCDAS Uttar Pradesh Crash Database Analysis System The World Bank Uttar Pradesh Core Road Network Development Project (P147864) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID Financing Instrument P147864 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 29-Mar-2019 30-Jun-2025 Organizations Borrower Responsible Agency UP-PWD,UP Police Traffic Directorate,Transport REPUBLIC OF INDIA Department Project Development Objective (PDO) Original PDO The Project Development Objective is to build capacity for results-focused road safety management in Uttar Pradesh and to improve traffic flows and safety for all road users on selected corridors of the state core road network OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-89400 29-Mar-2019 30-Jun-2025 400.00 0 400.00 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Uttar Pradesh Core Road Network Development Project (P147864) Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Components 1. The project comprises of four (4) components; (a) Component 1: Network Improvement – to be implemented by PWD, this component includes pavement strengthening, upgrading (widening and strengthening), and maintenance of about 500 kms high priority state highway corridors, part of the defined Core Road Network (CRN). (b) Component 2: Institutional Strengthening of PWD - to be implemented by the PWD, this component includes operationalization of Road Asset Management System (RAMS), integrated with GIS database, and training and capacity building of PWD staff. (c) Component 3: Road Safety – to be implemented by Traffic Police (Home Department), Transport Department and PWD. (i) Component 3A : Road Safety initiatives by Traffic Police comprises establishment of UP Highway Police (UPHP) to implement proactive, mobile, highly visible, general deterrence enforcement operations on two pilot corridors; Social marketing and media campaigns; implementation of crash database and analysis system (UPCDAS); and training and capacity building of the Police. (ii) Component 3B : Road Safety initiatives by Transport Department comprises support and capacity building to the Road Safety Cell; state-wide media campaigns; development of optimal designs and implementation of vehicle testing stations; strengthening commercial driver training and certification, training courses in Driver Training Institute, training of state bus transport and commercial drivers, developing health check-up system for commercial drivers; and training and capacity building of Transport Department staff. (iii) Component 3C : Road Safety initiatives by PWD includes design, implementation and evaluation of low-cost safety engineering measures on the core road network; capacity building support to Road Safety Division of PWD; and safety engineering training programs. (d) Component 4: Contingent Emergency Response Component B. Project Status 2. Under Component 1, all four civil works contracts of Phase 1 are currently under implementation. The implementation of Garautha-Chirgaon commenced in January 2018 and is expected to be completed in January 2020. The current physical progress is 75%. Three contracts (for road sections Hamirpur-Rath, Gola-Shahjahanpur and Badayun-Bilsi-Bijnour) were signed in June 2019 and while the design activities are in progress some field work has started. The Project Management Consultants (PMC) are in place for monitoring of all the activities under component 1 and construction supervision. Preparation of feasibility study reports for Phase 2 roads is in progress. The PMC is also working on operationalization of the Road Asset Management System (RAMS), included under Component 2 of the project. Consultancy services contract for Gender Assessment along Road Corridors was signed in August 2019 and the Inception Report has been submitted. The World Bank Uttar Pradesh Core Road Network Development Project (P147864) 3. Activities under Component 3 (Road Safety) are yet to be initiated. C. Background for proposed changes related to Road Safety Component by Traffic Police (Component 3A) 4. Throughout the Project Appraisal, the Bank mission emphasized that establishment of UPHP and its legal framework was an important requirement to be completed by the Uttar Pradesh Traffic Police/ Home department prior to the loan negotiations. Since the process was getting delayed, the DEA, World Bank and GoUP agreed to conclude the Negotiations and proceed with the Board Approval while the GoUP pursued the cabinet approval for Road Safety component and establishment of the UPHP. Accordingly, the following provision was introduced in the Loan Agreement at negotiations stage, and was expected to be filled out with the required information by the Loan signing. Loan Agreement : APPENDIX, Section I. Definitions 50. "UPHP Legal Framework" means the UPHP framework approved through Uttar Pradesh's Cabinet decision No._____________ dated _________ and/or ancillary regulation thereof, in place as of the date of this Agreement. 5. The Loan Negotiation was concluded on February 27, 2019, followed by the Board Approval on March 29, 2019. Subsequently, the GoUP State Cabinet approved the Road Safety component and shared the minutes of the Cabinet meeting dated August 28, 2019. However, the Minutes did not contain any provision for the establishment of UPHP and its legal framework. In the absence of a documentary evidence on UPHP, the Legal Agreement could not be signed. 6. Since civil contracts for road works are already under implementation, the DEA proposed to restructure the project by including a disbursement condition in the Loan Agreement that would allow withdrawal of the loan proceeds for Component 3A only after the Traffic Police establishes the UPHP and its legal framework. A formal request for restructuring was submitted by the DEA vide their letter No. F. No. 01/05/2010-Infra & Rural, dated September 30, 2019. II. DESCRIPTION OF PROPOSED CHANGES D. Proposed Changes 7. The restructuring proposal is to revise the Loan Agreement to include a disbursement condition by allowing withdrawal of loan proceeds under Component 3A only after the Traffic Police establishes the UPHP including its legislative framework. 8. Accordingly, the following changes are proposed in the Loan Agreement: Schedule 2, Section III, Withdrawal of Loan Proceeds, B.1. Withdrawal Conditions; Withdrawal Period, New clause under (b)(ii): ii. duly established the UPHP, within the Traffic Police Directorate of the HD, with a clear mandate, functions/powers and limitations thereto, structured on the basis of a general deterrence model of trauma-promoting vehicular offences, including comprehensive governance arrangements such as: (A) separate chain of command; (B) own and adequate budgetary allocations; (C) own and adequate staff and equipment, with clear and distinctive The World Bank Uttar Pradesh Core Road Network Development Project (P147864) identification/logos; and (D) a communications or general public liaison/ombuds(wo)man office responsible for UPHP’s own grievance mechanism and the outreach/communication strategy with the general public; all in a manner and substance satisfactory to the Bank. Loan Agreement : APPENDIX, Section I. Definitions; Revised as follows; 50. “UPHP Legal Framework” means the UPHP framework to be approved by Uttar Pradesh pursuant to Section III.B.1(b)(ii) of Schedule 2 of this Agreement, and in a manner and substance satisfactory to the Bank. Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. III. SUMMARY OF CHANGES Changed Not Changed Disbursements Arrangements ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ The World Bank Uttar Pradesh Core Road Network Development Project (P147864) Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) . Click here to enter text. Note to Task Teams: End of system generated content, document is editable from here. Please delete this note when finalizing the document