QPR Report

GOVERNMENT OF KARNATAKA
PUBLIC WORKS, PORTS & INLAND WATER TRANSPORT

DEPARTMENT
PROJECT IMPLEMENTATION UNIT
KARNATAKA STATE HIGHWAYS IMPROVEMENT PROJECT - II
World Bank Funded-Loan No 8022-IN
Quarterly Progress Report
(July-September-2013)
PIU-KSHIP
Quarterly Progress Report 2 (1 July to 30 September 2013)
Quarterly Progress Report 1

(1 July 2013 to 30 September 2013)
Contents
1.
EXECUTIVE SUMMARY..................................................................................................................................1
2.
SUMMARY OF PROJECT ACTIVITIES.........................................................................................................9

2.1 COSTS AND BANK LOAN FOR PROJECT COMPONENTS.....................................................................................9
2.2 OVERALL PROJECT IMPLEMENTATION STATUS (PROGRESS AND ISSUES) BY COMPONENT AND CONTRACT.10
2.3 SUMMARY OF PROCUREMENT PACKAGES FOR WORKS, GOODS AND SERVICES...........................................18
2.4 LOAN STATUS.................................................................................................................................................18
THE REASONS FOR SLOW DISBURSEMENT ARE MAINLY DUE TO TERMINATION OF WEP-2 CONTRACTOR M/S
ROMAN TARMAT LTD, PENDING FINALIZATION OF DBFOMT PACKAGES ...............................................................18
2.5 DISBURSEMENT CLAIMS................................................................................................................................18
2.6 AUDIT OF PROJECT ACCOUNTS FOR THE FINANCIAL YEAR 2013-14............................................................19
2.7 BANK MISSIONS & RATINGS..........................................................................................................................19
2.8 MAJOR ISSUES AND PROPOSED RESOLUTIONS FOR EACH COMPONENT........................................................20
2.9 PROJECT PERFORMANCE INDICATORS............................................................................................................22
2.10 ACTIONS EXPECTED FOR NEXT QUARTERLY PERIOD....................................................................................22
3.
INTRODUCTION..............................................................................................................................................24
3.1
3.2
4.
DETAILED PROJECT IMPLEMENTATION/PROGRESS BY COMPONENT AND CONTRACT......27

4.1
4.2
4.3
5.
PROJECT BACKGROUND.................................................................................................................................24
PROJECT DATA...............................................................................................................................................25
WB-EPC PACKAGES......................................................................................................................................27
CIVIL WORKS PROGRESS...............................................................................................................................29
MAJOR ONGOING ISSUES...............................................................................................................................31
PROJECT IMPLEMENTATION MONITORING.........................................................................................39

5.1
5.2
PHYSICAL PROGRESS......................................................................................................................................40
FINANCIAL PROGRESS....................................................................................................................................44
6.
PAYMENT AND DISBURSEMENT PROGRESS..........................................................................................48
7.
SOCIAL, RESETTLEMENT & REHABILITATION....................................................................................50

7.1
7.2
7.3
8.
COVENANTS.....................................................................................................................................................53
8.1
8.2
9.
SUMMARY OF RESETTLEMENT AND REHABILITATION ACTIVITIES................................................................50

RESETTLEMENT COMPLAINTS........................................................................................................................52
HIV/AIDS EDUCATION MONITORING............................................................................................................52
LOAN COVENANTS.........................................................................................................................................53
LEGAL COVENANTS.......................................................................................................................................54
SUMMARY OF PROCUREMENT PACKAGES...........................................................................................57

9.1
PROCUREMENT PLANS FOR WORKS, GOODS, AND SERVICES........................................................................57
10. ENVIRONMENTAL MANAGEMENT ACTIVITIES...................................................................................58

10.1 CLEARANCES AND COMPLIANCE...................................................................................................................58
10.2 EMP COMPLIANCE.........................................................................................................................................60
11. PERFORMANCE MONITORING INDICATORS........................................................................................65
12. SEMINARS, WORKSHOPS AND TRAINING..............................................................................................71
13. REPORT DELIVERY SCHEDULE.................................................................................................................72
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PIU-KSHIP
Table of Contents
TABLE 1: CURRENT PROBLEMS & ACTIONS
TABLE 2: SUMMARY OF COST & BANK LOAN AMOUNT FOR PROJECT COMPONENTS (US$ MILLION)
TABLE 3: EPC CIVIL WORK PROGRESS
TABLE 4: R&R AND LA STATUS - EPC PACKAGES
TABLE 5: R&R AND LA STATUS-ANNUITY PACKAGES
TABLE 6: ROAD SECTOR POLICY & INSTITUTIONAL DEVELOPMENT
TABLE 7: SUMMARY OF PROCUREMENT FOR WORKS, GOODS & SERVICES
TABLE 8: LOAN STATUS
TABLE 9: DISBURSEMENT CLAIMS
TABLE 10: BANK MISSIONS AND RATINGS
TABLE 11: MAJOR ISSUES AND PROPOSED RESOLUTIONS
TABLE 12: ACTION EXPECTED FOR NEXT QUARTERLY PERIOD
TABLE 13: PROJECT DATA
TABLE 14: CIVIL WORK PROGRESS
TABLE 15: MAJOR ONGOING ISSUES
TABLE 16: PROJECT IMPLEMENTATION MONITORING
TABLE 17: PHYSICAL PROGRESS OF WEP-1
TABLE 18: PHYSICAL PROGRESS OF WEP-2A
TABLE 22: FINANCIAL PROGRESS, WEP-1
TABLE 23: FINANCIAL PROGRESS, WEP-2A
TABLE 26: FINANCIAL PROGRESS-WEP-5
TABLE 27: PAYMENT AND DISBURSEMENT PROGRESS
TABLE 28: STATEMENT OF RECEIPTS AND PAYMENTS
TABLE 29: PROJECTS OVERALL DISBURSEMENT PROGRESS
TABLE 30: RESETTLEMENT AND REHABILITATION ACTIVITIES FOR WEP PACKAGES.
TABLE 31: RESETTLEMENT AND REHABILITATION ACTIVITIES FOR WAP PACKAGES.
TABLE 32: RESETTLEMENT COMPLAINTS
TABLE 33: HIV-AIDS CAMPAIGNS AT WEP PACKAGES
TABLE 34: LOAN COVENANTS
TABLE 35: LEGAL COVENANTS
TABLE 36: RIGHT TO INFORMATION ACT
TABLE 37: COMPLAINT MANAGEMENT CELL (CMC) CASES FOR THE YEAR 2013(JULY TO SEPT 2013)
TABLE 38: SUMMARY OF PROCUREMENT PACKAGES
TABLE 39: ENVIRONMENTAL CLEARANCES
TABLE 40: STATUTORY COMPLIANCE STATUS
TABLE 41: STATUS OF WATER BODIES
TABLE 42: DETAILS OF FOREST LAND DIVERSION
TABLE 43: TREE CUTTING STATUS OF EPC PACKAGE
TABLE 44: TREE CUTTING STATUS OF ANNUITY PACKAGE
TABLE 45: ENVIRONMENT POLLUTION MONITORING STATUS
TABLE 46: BORROW AREAS OF THE CONTRACTORS
TABLE 47: CRUSHERS/QUARRY PRODUCTION
TABLE 48: PROJECT DEVELOPMENT OBJECTIVES MONITORING
TABLE 49: SEMINARS, WORKSHOPS AND TRAININGS CONDUCTED BY PIU
TABLE 50: SEMINARS, WORKSHOPS AND TRAININGS CONDUCTED BY CSC
TABLE 51: REPORT DELIVERY SCHEDULE
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6
9
11
15
15
17
18
18
18
19
20
22
25
27
31
39
40
41
41
42
43
44
45
45
46
47
48
49
49
50
51
52
52
53
54
56
56
57
58
59
60
61
62
62
63
63
64
65
71
71
72
PIU-KSHIP
Abbreviations
AIDS
BC
CAAA
CA
CDTA
CFE
CFO
CSC
DBFOMT
DBM
DBMS
DPR
EMP
EMS
EOI
EOT
EPC
FD
FMM
FPTA
GAAP
GOK
GSB
HIV
HMP
HRD
HT
IBRD
ICB
ICT
IE
IRAP
IRC
ISO
IT
IUFR
JV
KRDCL
KHSDRP
KSHIP
KSPCB
KPWD
LHS
M&E
MIS
MOEF
MS
NCB
NGO
PAD
PAF
PAP
Acquired Immune Deficiency Syndrome

Bituminous Concrete
Controller of Aid Accounts and Audit
Concession Agreement
Capacity Development &Technical Assistance
Consent for Execution
Consent for Operation
Construction Supervision Consultant
Design, Build, Finance, Operate, Maintain, and Transfer
Dense Bituminous Macadam
Data Base Management Services
Detailed Project Report
Environment Management Plan
Environmental Management System
Expression of Interest
Extension of Time
Engineering and Procurement Contract
Finance Department
Financial Management Manual
Financial Planning and Technical Advisory
Governance and Accountability Action Plan
Government of Karnataka
Granular Sub-base
Human Immunodeficiency Virus
Hot Mix Plant
Human Resource Development
High Tension
International Bank for Reconstruction and Development
International Competitive Bidding
Information and Communications Technology
Independent Engineer
International Road Assessment Program
Indian Road Congress
International Organization for Standardization
Information Technology
Interim Unaudited Financial Report
Joint Venture
Karnataka Road Development Corporation Limited
Karnataka Health System Development & Reform Project
Karnataka State Highways Improvement Project
Karnataka State Pollution Control Board
Karnataka Public Works Department
Left Hand Side
Monitoring and Evaluation
Management Information System
Ministry of Environment and Forests
Milestone
National Competitive Bidding
Non-governmental Organization
Project Appraisal Document
Project Affected Families
Project Affected People
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PIU-KSHIP
PCB
PCC
PIU
PMS
PPP
PRAMC
PWD
QM
RAP
R&R
RFP
RHS
RIS
RSM
RUSS
SCDP
SDRC
STD
TA
TD
TIMS
TOR
TPH
TRSC
VFM
VO
WMM
Pollution Control Board

Project Coordinating Consultant
Project Implementation Unit
Project Management System
Public Private Partnership
Planning and Road Asset Management Centre
Public Works Department
Quality Management
Resettlement Action Plan
Resettlement and Rehabilitation
Request for Proposal
Right Hand Side
Road Information System
Road Safety Management
Road User Satisfaction Survey
Safety Corridor Demonstration Program
Social Development Research Cell
Sexually Transmitted Disease
Technical Assistant
Transport Department
Traffic Incident Management System
Terms of Reference
Tonne per Hour
Traffic & Road Safety Cell
Value for Money
Variation Order
Wet Mix Macadam
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PIU-KSHIP
1.
EXECUTIVE SUMMARY
1.1 The IBRD assistance covers the following four components.
Component 1: Road Improvement Works (Total Cost: US$ 603 million; IBRD: US$ 260 million;
GOK: US$ 94 million; Developer: US$ 249 million).
Component 2: Highway Financing Modernization (Total Cost: US$ 374 million; IBRD: US$ 67
million; GOK: US$ 56 million; Developers/Financial Institutions: US$ 251 million).
Component 3: Road Safety Improvement (Total Cost: US$ 14 million; IBRD: US$ 11 million;
GOK: US$ 3 million).
Component 4: Road Sector Policy and Institutional Development (Total Cost: US$ 11.8 million;
IBRD: US$ 9.44 million; GOK: US$ 2.36 million).
1.2 The total estimated project cost is US$ 1,005 million (IBRD: US$ 350 million, GOK: US$ 155
million, and Private Sector Developers: US$ 500 million). The duration for implementation of the
project is 5 years from June 2011 to December 2016. Further information on the project components
are given in Chapter 3.
1.3 Current Loan Status
As at the end of September 2013, a sum of US$ 41.511 million representing 11.90% of the available
loan had been disbursed against the target amount of US$ 167 million as per PAD. Disbursement is
considerably behind the schedule by 75.14% because of the following reasons:
The five (6) EPC contracts failing to achieve targets due to reasons noted in Para 1.4 below.
Delay in procurement of four (4) Annuity contracts.
There are delays in the procurement of Goods and Services, but these contracts being of much
smaller value compared to the civil works do not significantly impact the overall disbursement.
1.4 Project Implementation Status:
The project implementation status for Civil Works, Goods and Services are summarized below.
a) Civil Works:
i) World Bank EPC Contracts: The physical progress achieved for the Second Quarter 2013/14 for
the six (6) EPC contracts is 4.77% compared to the programmed 3.50%. The overall physical
progress achieved since inception is 49.30% compared to the programmed 65.82%. These contracts
are running up to 13 months behind the original schedule. WEP-2A Contractor has mobilized
sufficient men & machineries and started CD works and bridge works. Procurement of Package
WEP-2B has been concluded and the 24-month Contract awarded to M/s DRN Infrastructure Pvt. Ltd
the same Contractor who won the WEP-2A Contract. The WEP-2B Accepted Contract amount is
US$ 21.75 million. The Contract Agreement was signed on 6 th July 2013. The Contractor started the
mobilization of men and machineries and PIU KSHIP paid 5% mobilization advance. Details of these
Contracts are presented in Chapter 2.
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PIU-KSHIP
The slow progress is mainly due to the following reasons:
Delay in locating suitable quarry and crusher sites due to a High Court stay order on operation of
quarries. Most of the quarries were only finalized after approximately nine months from the
commencement of implementation. Due to the delay in the mobilization of the crushers, the
Major structural works in all the Contracts were delayed and delays have also been experienced
for the pavement layers.
Delay in obtaining statutory clearances for quarries and the operation of stone crushers due to
Supreme Court and High Court directives on operation of stone crushers in the State. Contractors
for WEP-3, WEP-4, and WEP-5 have got quarry approval and clearance for establishment of
crushers. In WEP-1, the application for establishment of a crusher has been filed in this regard
PIU-KSHIP official requested District Commissioner, Bangalore to clear the application of the
Contractor which is pending from long time.
Due to insufficient cash inputs from JV partners in WEP-3 and shortage of funds and shortage of
key experienced staff in WEP-5 leads to the slow progress.
In package WEP-3 no proper coordination between JV partners still persists, and no

improvement after several meeting with the Management and PIU KSHIP.
ii) Annuity Contracts: The Project Governing Board (PGB) decided to rejection of bids for not
having Value for Money (VFM). During the June 2013 mission, the Bank suggested reviewing the
DBFMOT Concession, restructuring and rebidding the four annuity packages.
b) Goods: There are nine (9) contracts for Goods to be procured out of which two already procured.
The Disbursement of Goods is delayed mainly due to delay in procurement of services.
c) Services: Out of fifty (50) contracts for Services, nineteen (19) contracts have been signed and
representing 38.0% of the total contracts. All nineteen (19) Contracts are in progress against the
twenty seven (27) planned and the balance eight (8) contracts are under procurement. An amount
of US$ 3.143 million has been disbursed.
1.5 Project Achievements during Reporting Period
a) Component 1:
Works Progress
The financial progress achieved for the second quarter of 2013/14 for the EPC contracts is 4.23%
compared to the programmed 4.13%. The overall financial progress achieved since inception is
40.19% compared to the planned 62.33%.
In WEP-1, the Contractor has completed equivalent length of Section-I (28.90 Kms) and the
Taking over Certificate is pending due to non-submission of as built drawings by the Contractor.
In WEP-5, the section between Km 17+650 to Km 17+750 where there is a court stay have been
resolved.
Procurement
WEP-2B NCB Contract: Procurement process has been completed and the contract awarded to
M/s DRN Infrastructure for US$ 21.75 million (INR 978.74 million). The Contract Agreement is
signed on 6th July 2013.
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PIU-KSHIP
For the two (2) Safe Corridor Demonstration Projects, M/s URS Scott Wilson India Pvt. Ltd was
selected for the design/documentation services under single source selection process for an
amount of USD 100,000 (INR 4.5 Million). The NOC obtained from the Bank and Contract
agreement is expected to be signed in the month of October 2013. The draft DPR for SH-20
(Yaragatti-Belgaum) is expected to be finalized by 15 thDecember-2013. The tender notification
by 31st December-2013 for SH-20 project (Belgaum to Yaragatti section).
RFP for preparation of DPR for KRDCL Co-financing: Out of ten (10) bids received five (5) met
the technical evaluation criteria. Among the five (5) bids, M/s Feedback Ventures was the lowest
quoted at USD 404,444 (18.2 INR Million). The contract duration is 12 months and the Contract
Agreement is signed on 24th August 2013. The DPR consultant has submitted inception report
and made a inception presentation along with reconnaissance survey findings on 5 th Sept 2013. It
is proposed to complete Revalidation of components essential for project structuring by
December 2013. R&R survey and land acquisition surveys will also progress concurrently since
these tasks are time consuming.
QM/Quality control capacity enhancement in PWD: Two times EOIs called, no firm has
qualified, and bank suggested KSHIP any known firm with similar services experience and
approve for hiring on Single Source Selection or to invite 3rd call of EOI.
Periodic Road User satisfaction survey-I: Contract awarded to MDRA (Marketing and
Development Research Associates, New Delhi) for USD 95,291.00. The Contract Agreement was
signed on 1st July 2013. The Consultant submitted draft report.
IT/ICT/MIS enhancement services and action plan preparation and implementation: Shortlist
along with RFP submitted to the Bank for clearance.
QM ISO certification (Phase II): The eight (8) consultants submitted the Expression of Interest
(EOI) and evaluation is under process. The shortlisted evaluation report will be submitted to the
bank by 5th December 2013.
Consultancy services for collection of Non-CRN Road condition data for population and
operationalization of Road Information System (RIS) and Payment Management System (PMS):
EOI evaluation completed and evaluation report along with draft RFP shall be sent to Bank by
end of December 2013.
Recruitment of GAAP Consultant: Task to be assigned to Project Management System (PMS)

consultant (M/s. Backend Services as additional scope of services. Additional VO of USD 33333
(INR 1.5 million) issued to the PMS Consultant. KSHIP website under development. Complaint
Handling System (CHS) at UAT stage.
Extended Core Road Network (CRN): Extended Core Road Network report is under
consideration in Government of Karnataka. Issue of Government order is expected by end of
December 2013.
Management of HIV Aids along the Roads: This Consultancy is awarded to Karnataka State Aids
Prevention Society and Agreement signed on 27th March 2013 for USD 34,896 (INR 1.57
Million). The Contract duration is one year. During the first half of the contract period, the
project roads under EPC packages will be covered and in the second half the roads under annuity
packages will be covered.
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PIU-KSHIP
An updated Procurement Plan with agreed new activities will be submitted to Bank for No
Objection in November 2013.
Environmental
In all packages except WEP-1 (crusher license awaited). In this regard, PIU KSHIP official
requested the District Commissioner of Bangalore rural, to clear the application of the Contractor
which is pending from long time. In WEP-2B package, identification of quarry and crusher
locations is in progress.
Archeological Department Clearance: Application seeking prior permission from ASI in link
M7B and M7C has been forwarded to the National Monument Authority, New Delhi, with
recommendations by the Department of Kannada and Culture, GOK. Further on 21st May 2013,
KSHIP along with Project Coordinating Consultants attended a meeting in the National
Monument Authority office at New Delhi and Project Coordinating Consultants gave a power
point presentation on each application. The NMA has cleared application pertaining to link M7B.
M7C permission is awaited. NMA is reminded on this issue.
Re-use of Scarified Bitumen: A pilot project has been undertaken in WEP-1 for the re-use of
scarified materials has been identified for re-surfacing using scarified bitumen in WEP-1(Link
67A) package. In this regard a proposal/estimate from KSHIP division of Tumkur of USD 11,044
(INR 0.49 Million) has been approved. Subject to the success of the pilot project, it will be
extended to other packages.
ISO 14001 Service for Operationalising in KPWD: Contract Signed with M/s.Allied Boston
India Pvt.Ltd. New Delhi. The consultants have submitted their Inception Report in February
2013 as per their Task I activity. The Inception Report is accepted by PIU. A three-day training
program from 28th Oct 2013 to 30th Oct 2013 on EMS and internal audit is organized in
Bangalore by the Consultant. All the 14 designated concerned officers have been requested to
attend the training.
Resettlement and Rehabilitation (R&R) and Land Acquisition (LA)
In all the five WEP packages, as many as 313 PAPs were identified and all of them are issued
with Identity Cards. Of them, 170 are commercial squatters and 113 are encroachers. The
commercial squatters have been assisted with shifting allowance, subsistence allowance and
assistance for income generation asset as provided in the Entitlement Matrix and they have been
shifted outside the ROW. The Land acquisition is 99% completed in EPC packages.
Implementation RAP in WAP packages have already been taken up. Joint Verification of affected
structures has been completed in all the packages except the town limits of Shimoga, Shikaripura
and Hangal where 4 lane roads are proposed. A total number of 844 PAPs, consisting of 505
commercial squatters, 60 residential squatters, 271 encroachers and 8 tenants, have been
identified and out of them 519 PAPs (61%) have been issued ID Cards. So far, 137 PAPs
16.23% (83 commercial squatters and 54 encroachers) have received full assistance. Issue of ID
Cards and release of assistance to the remaining PAPs are under. The Land acquisition progress is
slow in Annuity packages (0.51%).
Other
NGOs services extended up to Dec, 2013 and M&E consultant service extended up to 31 st March
2014.
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PIU-KSHIP
The internal audit of the PIU-KSHIP and KRDCL accounts for the quarter ending 31 st March
2013 has been completed. The internal auditor is yet to submit the Draft Report to PIU-KSHIP.
Based on Banks comments on Aide Memoire 17th -25th June 2013 regarding internal audit, a
letter has been addressed to the Internal Auditor to submit the pending audit reports and to
comply with the terms of contract.
Vacancy of the position of Assistant Commissioner (Land Acquisition). Appointed two Assistant
Commissioner Post (Land Acquisition) in the month of July 2013.
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PIU-KSHIP
1.6 Issues Identified in the Previous Quarter that Still Exist in the Current Quarter
Table 1: Current Problems & Actions
Sl No
Component-1
Current Problems
Action Taken
In the Management meeting held on 22nd May 2013, it was agreed that the
Contractor will infuse at least INR 100 Million of working capital in July
2013 to start improving progress to about 5% per month from
August/September, failing which stringent Contractual measures including
Contract termination could be resorted to.
WEP-2A, WEP-3 WEP-4 and WEP-5 Contractors have established their
quarries and crushers. In WEP-1 the quarry license has been approved and
crusher application submitted to KSPCB for approval. In this regard PIUKSHIP is official requested DC, Bangalore to clear the application of the
Contractor,
The sites have been allotted to 11 families who are eligible. The payment of
compensation is in progress.
Poor co-ordination between JV partners on WEP-3 affecting

progress.
Delay in getting quarry and crusher operation approvals on WEP

Contracts.
Delays in completing compensation on WEP Contracts.
Clearance under Forest (Conservation) Act
KSHIP has complied all conditions except alternate land to be provided by

the DC Shimoga. Land identified, handing over process to forest
department is in progress.
Completion of evaluation and award process for DBFMOT

Annuity.
The Project Governing Board (PGB) decided to rejection of bids for not
having Value for Money (VFM). During the June 2013 mission, the Bank
suggested reviewing the DBFMOT Concession, restructuring and rebidding
the four annuity packages.
Component-1B
Selection of Independent Engineer (IE) for DBFOMT Annuity.
EOIs were Evaluated and a shortlist and RFP submitted to the Bank and the.
Bank had already provided no objection. Further action will depend on the
Govt decision on rebidding the four annuity packages.
Component-3
8
Completion of Staffing for the Road Safety Cell.
GO regarding formation of Road Safety Cell is issued and posting of staff to

the cell is being pursued with Transport Department.
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PIU-KSHIP
Sl No
Current Problems
Delay in the starting the SCDP designs.
10
Safe corridor program consultancy services for monitoring and

evaluation
Action Taken
M/s URS Scott Wilson India Pvt. Ltd is selected under single source process
for an amount of USD 100,000 (INR 4.5 Million). NOC obtained from the
Bank and Contract agreement is expected to be signed in the month of
October 2013. The draft DPR for SH-20 (Yaragatti-Belgaum) is expected to
be finalized by 15th December-2013. It is expected to be issued tender
notification by 31st December-2013 for SH-20 project (Belgaum to Yaragatti
section).
The scope of the consultancy is already covered under RSM consultancy
services, already staffs have been mobilized.
11
Clearance for revised D-Code to be obtained from Finance

Department
The proposal for revision of D-Code is in the Finance Department. To be

cleared before 15th December 2013.
12
Submission of disbursement projection.
The estimated disbursement projection for the quarter ended July-Sept 2013
is US $ 5.0 Million. The report has been sent to the Bank in the month of
August 2013.
Component-4
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PIU-KSHIP
1.7 Summary of the Main Problems Affecting the Civil work progress:
The package-wise key issues which caused delays in achieving the target values are given below.
WEP-1
Crusher license pending with District Collector. In respect of this, PIU KSHIP official requested
DC, Bangalore to clear the application of the Contractor which is pending from long time.
WEP-2A
Contractor not yet started the crusher production and highway activities as the completion date
for Section-I, is already over and Section-II is on 1st January 2014.
WEP-2B
The completion date of Section-I is 19 th December 2013, still Contractor not yet deployed the
machinery, manpower, not identified the quarry sites.
WEP-3
Shortage of key staff.
Insufficient cash flow from the JV partners adversely impacts work progress.
No proper co-ordination between JV partners.
No motivation or interest towards the work from the Contractor.
Identification of source approval is in progress.
Poor Safety and road maintenance of Diversion roads by the Contractor.
WEP-4
Delay in construction of Major Bridge and Diversion road.
WEP-5
Insufficient Cash flow on site resulting in slow progress.
Shortage of Key staff.
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PIU-KSHIP
2.
SUMMARY OF PROJECT ACTIVITIES
2.1 Costs and Bank Loan for Project components

Table 2: Summary of Cost & Bank Loan Amount for Project Components (US$ million)
Component
1 - Road Improvement Works

a) Item-Rate Contracts*
Project
Costs
Including
Contingenc
y
602.6
166
Bank
Loan
Amount
GOK
Financing
Developer
/ Private
Sector
Banks
Contracted
Value
259.8
119.6
197.26
40.03
180.86
0
132.8
132.7
b) DBFOMT Annuity Concession**
436.6
140.2
157.23
180.86
0.1
2 - Highway Financing Modernization

a) TA Services for KRDCL
b) Civil Works under Co-financing Pilot
c) Consultancy Services-NGO &
Environment/Social Audit
3 - Road Safety Improvement
4 - Policy and Institutional
Development
Incremental Operating Costs
Total Project Cost
Front-end Fee
Total Financing Required
Total Cumulative Disbursement till
September
373.9
5
368.9
67.3
4
63.3
60.52
1
59.46
269.18
0
269.18
1.1
1.1
0
0.06
13.8
11
1.98
1.9
11.8
9.4
1.71
0.3
2
1004.1
0.9
1005
1.6
349.1
0.9
350
0.45
261.92
0
261.92
0
450.04
0
450.04
1.6
137.7
0.9
138.6
Balance Loan (Bank Loan Amount)
41.511
308.489
Note- Exchange rate Rs. 45 per dollar as per Loan agreement.

*
The amount US$ 132.8 million is exclusive of WEP-2 terminated amount of US$ 27.12 million (INR
1220.2million). However, the awarded WEP-2A Contract amount of US$ 20.5.million (INR 925.4)
and WEP-2B Contract amount of US$ 21.75 million is included.
Initially five (5) Works Packages had been contracted in Mar, 2011. Package WEP-2 was terminated
in Nov, 2012 and re-procured in two packages WEP-2A and WEP-2B. Package WEP-2A was
procured and a Contract signed in Feb, 2013. Package WEP2B is also procured and the Contract is
signed on 6th July 2013. The total contracted value is inclusive of civil works of WEP-1, WEP-2A,
WEP-2B, WEP-3, WEP-4, WEP-5, CSC, NGO and EMP services.
** Bids evaluated and placed before Project Governing Board recommending rejection of bids for not
having VFM. Bank suggested reviewing the DBFMOT Concession, restructuring and rebidding for
the four annuity packages.
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PIU-KSHIP
2.2
Overall Project Implementation Status (Progress and Issues) by

Component and Contract
a) Component 1: Road Improvement Works

Component 1 comprises two parts, namely Civil Works under traditional Item-Rate Contracts (EPC
Contracts, 266 km) and Civil Works under Design Build Finance Operate Maintain and Transfer
(DBFOMT) Annuity Concessions (565 km).
i) Component 1A: EPC Works
Out of the five (5) EPC contracts, WEP-2 was terminated in Nov, 2012 due to consistently poor
performance of the Contractor. After the termination of WEP-2, the works have been split into two NCB
packages namely WEP-2A (Haveri-Hanagal) of length 31.784Km (Link T8) and WEP-2B (Hanagal to
Tadasa) of length 43.459Km (Link M7D) in order to save construction time. WEP-2A has been awarded
to M/s DRN Infrastructure for an amount of US$20.5.million (INR 925.4) and the Contract Agreement
were signed on 22nd Feb, 2013. The Contract Duration is 21 months. WEP-2B has also been tendered
under NCB and Contract was awarded to M/s DRN Infrastructure for an amount of US$ 21.75 million.
The Bank NOC has been received and the Contract was signed on 6 th July 2013.
For the six (6) EPC contracts including WEP-2A and WEP-2B, the physical progress achieved for the
Second Quarter of 2013/14 is 4.77% against the programed 3.50%. The overall physical progress
achieved since inception is 49.30% against the programmed 65.82%. The 12.63km (both lanes) of road
was blacktopped in the present quarter against a programmed length of 10.13 km. Total 114.33km (both
lanes) has been completed against a programmed length of 145.00 km.
The package-wise civil works progress is summarized in the Table below.
Page 10 of 72
PIU-KSHIP
Upgradation
of Road
From
Tinthini-
*13-May13
52.4
31.78
43.45
36
73.8
M/s Lanco
Infratech Ltd.
12Apr11
M/s DRN
Infrastructure,
Engineers &
Contractor
22Feb13
M/s DRN
Infrastructure,
Engineers &
Contractor
6Jul13
M/s RVCPLRIDL JV
7Apr11
M/s Patel
Engineering
Ltd.
31Mar11
21.83
20.56
28.90
28.90
Actual, %
Overall
Financial
Progress
Planned, %
Actual, %
Financial
Progress in
Current
Quarter
Planned, %
Actual, %
Overall
Physical
Progress
Planned, %
Actual, %
Physical
Progress in
Current
Quarter
Planned, %
Advance
Payment,
US$ Million
Duration Elapsed, Months
Achieved Length, (SectionI/Section-II)Km
Planned Length, (SectionI/Section-II)Km
Completion Date (SectionI/Section-II), Km
Milestones (Section-I / SectionII)

Date of Commencement
Contract Value,
US$ Million
Contract Signing Date
Upgradation
of Road
from
DharwadSaundatti
Name of Contractors
Description of Contract
WEP-2B
Upgradation
of Road
From
Hanagal to
Tadasa
Length, Km
Packages
WEP-1
WEP-2A
Upgradation
of Road
From
Haveri
(NH-4) to
Hanagal
WEP-4
Upgradation
of Road
from
Hoskote to
Chintamani
Bypass)
WEP-3
Table 3: EPC Civil Work Progress
13-Aug-11
12-Feb-14
23.50
2.04
1-Aug-13
3.00
1-Jan-14
7.00
19-Dec-13
4.00
19-May-14
12.00
*24-Oct-12
20
7.63
11
22-Feb-13
1.09
9.29
4.28
66.17
61.16
10.14
5.34
54.64
49.83
1.03
1.59
1.62
1.59
1.62
Major
Issues
that led to
Delays
Insufficient
cash flow.
Crusher
license
pending
with
District
Collector
21.75
18.76
28-Jul-11
35.71
13-Aug-11
27-Mar-13
18.5
*12-June-13
32.45
32.45
0.94
10.35
3.78
38.41
33.11
12.63
2.56
40.4
28.34
Insufficient
cash flow
from JV
partners
3.43
8.23
10.47
62.95
60.55
8.9
7.3
55.41
48.24
Page 11 of 72
Actual, %
23.83
Advance
Payment,
Duration Elapsed, Months
Achieved Length, (SectionI/Section-II)Km
Planned Length, (SectionI/Section-II)Km

28.63
Planned, %
*18-Apr-13
Actual, %
19-Jul-11
Planned, %
13.68
Actual, %
31Mar11
Overall
Financial
Progress
Planned, %
M/s SRKKCl JV
7.86
Financial
Progress in
Current
Quarter
Actual, %
28.63
41.35
Overall
Physical
Progress
Planned, %
Upgradation
of Road
From
ChowdapurGulbarga
12-Aug-14
Physical
Progress in
Current
Quarter
US$ Million
WEP-5
Kalmala
Completion Date (SectionI/Section-II), Km
Milestones (Section-I / SectionII)

Date of Commencement
Contract Value,
US$ Million
Contract Signing Date
Name of Contractors
Length, Km
Description of Contract
Packages
PIU-KSHIP
1.37
7.60
5.32
94.74
91.71
11.19
4.35
78.12
72.91
Major
Issues
that led to
Delays
*Note: EOT approved for Section-I for packages WEP-1, 3, 4, and 5 for 3 months.
Page 12 of 72
PIU-KSHIP
WEP-1: In package WEP-1 the Contractor was able to finish 7.94Km of BC against the 10.14Km in
current quarter and cumulative length completed is 30.94Km against the 33.14 Km till the end of this
quarter, which is 93.36% to the targeted value. Completed 2 culverts against planned 4 nos and overall
35 culverts completed against 55 and 1 Major Bridge completed against planned 1 no and overall 8
Major Bridges completed against the 17 nos till the end of this quarter.
The Contractor has achieved 5.34%financial progress for this quarter against the planned 10.14%, the
cumulative financial progress is 49.83% against the planned 54.64% till the end of this quarter.
Contractor is lagging 4.81 % behind the schedule. The Contractor already completed equivalent length of
Section-I and requested for taking over certificate and Taking Over Certificate is pending due to nonsubmission of As Built drawings by the Contractor. The Contractor has to complete the Section-II length
(23.50Km) by end of 12th Feb 2014, based on the Contractor past performance, the Contractor seems to
be complete the Section-II within scheduled target date. PIUKSHIP cleared all pending IPCs till August
2013 and September month IPC is under review. All encumbrances are cleared in Section-I & Section-II.
All design issues have been resolved. Work zone safety arrangements and traffic management measures
have been taken care and no accidents reported in this quarter.
WEP-2A: In package WEP-2A, the Contractor completed 20 nos cross drainage structures against
planned 38 nos. The MOEF cleared the operation of quarry which was pending from the last quarter. The
Contractor has to start the crusher production and highway activities as the completion date of Section-I
(3.00Km) is 19th December 2013. On 16th July Contractor submitted EOT proposal for 8 months due to
delay in approval of his crusher and quarry license; this was rejected by the Engineer. The Mobilization
and equipment advance paid to the Contractor. The Contractor has achieved 1.62%financial progress for
this quarter against the planned 1.59%.
WEP-2B: The contract is awarded to M/s DRN Infrastructure Pvt. Ltd and the Contract is agreement was
signed on 6th July 2013. Letter to proceed with the works was issued on 20 th July 2013 and site was
handed over on 20th July 2013. Identification of quarry and borrow areas is in progress.
WEP-3: In package WEP-3, the progress is poor due to lack of proper planning and inadequate
resources. In this quarter there was no progress on construction of BC layer, the Contractor was able to
finish 7.63 Km against the 36.00Km which is 21.19% to the targeted value. No progress on construction
of culverts in current quarter and overall 27 culverts completed against 41 nos. The Contractor finished
the 2 Major Bridges in current quarter against the total 8 nos.
The Contractor has achieved 2.56% of financial progress for this quarter against the planned 12.63%. The
cumulative financial progress is 28.34% against the planned 40.40% till the end of this quarter. Three
month EOT has been given by the Engineer. The original completion date of Section -I (20.00 Km) was
27th July 2012 and the revised completion date of Section -I is 24 th October 2012. The contract
completion date for Section -II has also expired on 27 th March 2013. The contractor has to achieve
balance length of Section -I along with work on Section -II. Proper planning must be done with additional
resources mobilization. The JV partner M/s RIDL is not working and there is no coordination with Lead
partner M/s RVCPL. This contract is being closely monitored by PIUKSHIP holding periodic
management meetings. Further Contractor proposed new km-wise Section-I from Km 2+500 to Km
22+500 and Section-II from Km 22+500 to Km 38+500 with the completion date as December 2013 for
Section-I and June 2014 for Section-II, the Engineer instructed Contractor to submit the revised work
Programme. All encumbrances cleared (Shifting of Electric Poles & Tree felling work completed). The
PIU KSHIP cleared July month IPC, August and September months IPCs not submitted by the
Contractor.
Page 13 of 72
PIU-KSHIP
WEP-4: The performance of this contract is better although the Contractor is not fully meeting the
targeted quantities. The contractor is able to finish 17.31 Km of BC against the 13.68 Km in the current
quarter and cumulative length completed is 40.31 Km against the 44.58 Km till the end of this quarter
which is 90.40% to the targeted value. Completed 16 culverts against planned 15 nos and overall 72
culverts completed against 110 nos. Eleven (11) Major Bridges completed against planned 4 nos and
total 24 major bridges completed against the total 38 nos till the end of this quarter.
The Contractor has achieved 7.3%financial progress for this quarter against the planned 8.90%, the
cumulative financial progress is 48.24% against the planned 55.41% till the end of this quarter.
Contractor is lagging 7.17 % behind the schedule. The Contractor already completed equivalent length of
Section -I, traffic signs & road marking works are pending in Section -I. As per the contract, actual date
for completion of Section - I (32.45 Km) is 12 th March 2013. An EOT of three months with revised
completion date of 12th June 2013 has been granted for Section -I. PIU KSHIP cleared Contractor IPCs
of July, August 2013 and September month IPC is under preparation. The two quarries and two crusher
licenses has been approved by KSPCB. All encumbrances are cleared in Section -I & Section -II. All
design issues have been resolved. Work zone safety arrangements and traffic management measures have
been taken care and no accidents reported in this quarter.
WEP-5: The progress of this package is very slow, running 5 months behind the schedule. The contractor
was able to finish 6.53 Km of BC against the 11.33 Km in the current quarter and cumulative length
completed is 23.83 Km against the planned 28.63 Km till the end of this quarter which is 83.23% to the
targeted value. There is no progress on construction of Culverts and finished 1 Major Bridge work in
current quarter. So for thirty eight (38) culverts out of forty (40) have been completed. Five (5) bridges
out of seven (7) have been completed.
The Contractor has achieved 4.35%financial progress for this quarter against the planned 11.19%. The
cumulative financial progress 72.91% against the planned 78.12% till the end of this quarter and
Contractor is lagging 5.21 % behind the schedule. As per the Contract the completion period of the
project ends on 18th January 2013 and Engineer granted an EOT of three months with revised completion
date is 18th April 2013. The contractor has applied for a further EOT up to October 2013 which is not
accepted by the Engineer. Contractor further claimed the EOT up to December 2013, due to delay in
approval of quarry licenses, which was rejected by the Engineer.
The Contractor has not submitted IPC from April to August 2013 and recently submitted IPCs are under
review. The quarry and crusher licenses have been approved. All obstructions cleared. Work zone safety
arrangements and traffic management measures have been taken care in this quarter and no accidents
reported in this quarter.
Environmental Management
Environmental Clearance has been obtained by KSHIP for project roads.
Environmental clearances obtained by KSHIP Contractors for all WEP Packages, except WEP-2A,
where contractor is yet to identify locations for establishing camp and crusher installations
Environmental Management Plan (EMP) implementation is satisfactory and covers enhancement of
water bodies, construction of noise barriers, borrow area management, construction materials
management etc.
Independent Environment Pollution Monitoring (air quality, water quality, noise levels, and soil
quality) for WEP packages has been carried out as per the EMP during June-July 2013. The results are
satisfactory.
Page 14 of 72
PIU-KSHIP
R&R and Land Acquisition (LA) Status: The status of R&R and LA for EPC Packages is given in the
table below.
Table 4: R&R and LA Status - EPC Packages
Description
ID Card
Issued, %
No of PAPs
received all
benefits, %
Subsidence
& Shifting
allowance
paid, %
Non-Title Holders
Completed
Completed
Completed
Title Holders
99
12.5
R&R Status
LA Status
R&R Completed
in all EPC
packages except
13 families in
WEP-2
The total Land

Acquisition
completed is 99%
ii) Component 1B: Annuity Works

The Project Governing Board (PGB) decided to rejection of bids for not having Value for Money (VFM).
During the June 2013 mission, the Bank suggested reviewing the DBFMOT Concession, restructuring
and rebidding the four annuity packages.
Environmental clearances obtained by KSHIP for all four (4) Annuity package roads.
Environmental Management Plan (EMP) covers enhancement of water bodies, construction of noise
barriers, construction materials management etc. Above measures except noise barriers which have
already been executed by KSHIP, are part of the civil works under the Annuity concessions.
R&R and Land Acquisition (LA) Status: The status of R&R and LA for EPC Packages are given in the
table below.
Table 5: R&R and LA Status-Annuity Packages
Descriptio
n
Non-Title
Holders
ID Card Issued, %
Out of the 844 PAPs

identified in the WAP
packages, 519 PAPs
(61.49%) have been
issued ID cards. Issue
of ID cards to the
remaining PAPs is in
progress.
No of
PAPs
received
all
benefits,
%
16.70
Subside
nce &
Shifting
allowan
ce paid,
%
70.51
R&R Status
LA Status
The R&R work is

progressing, Joint
verification completed in
all links, except town limit
of Shimoga, Shikaripura
and Hanagal where four
lanes is proposed. Out of
362 commercial squatters
36 squatters are assisted
with shifting and
subsidence allowance, 83
commercial squatters are
assisted with IGA, 54
encroachers have received
reconstruction cost.
Release of assistance to
other is in progress.
Progress is slow due

to delay in
conducting of price
fixation meetings.
Page 15 of 72
PIU-KSHIP
The Independent Engineer (IE)

The Transaction Advisory Consultant has assisted PIU KSHIP in procurement process of IE for the
Annuity packages. EOIs were Evaluated and a shortlist and RFP submitted to the Bank on 27 th September
2012, and the Bank had already provided no objection. However, further action will be subject to the
Government decision on rebidding the four Annuity Contracts.
b) Component 2: Highway Financing Modernization

The details of Contract status for roads developed under KRDCL given below.
The DPR preparation of roads developed under co-financing Contract awarded to M/s Feedback
Ventures and Contract agreement signed on 24th of August 2013. The DPR consultants have been
mobilized on 22nd Aug 2013. The DPR consultant has submitted inception report and made a inception
presentation along with reconnaissance survey findings on 5 th Sept 2013. It is proposed to complete
Revalidation of components essential for project structuring by end of December 2013. R&R survey
and land acquisition surveys will also progress concurrently since these tasks are time consuming.
Strategic presentation has been prepared by FPTA and has been presented to MD, KRDCL in
September 2013. FPTA Consultants submitted the White Paper on Financial policy and White Paper
will be finalized after meeting with Finance department of GoK.
KRDCL OMT roads, tender notification was issued on 28 th Feb 2013. The RFP issued to bidders and
last date for submission of bids is on 17 th June 2013. There is no response received from bidders,
decided to modify the bid document and invite tender in second call.
c) Component 3: Road Safety Improvement

Road safety capacity building consultants M/s Vic Roads have been mobilized. The inception stage
almost completed, awaiting FD/TD outcome on RSC establishment to finalize Inception Report.
Safe Corridor Demonstration Program (SCDP): This covers road safety pilot of two corridors,
Maddur to Mysore (53.8km) and Belgaum to Yaragatti (61.85km section). CDTA Consultant has
finalized the iRAP recommendations on road safety measures for these roads. M/s URS Scott Wilson
(Project coordinating consultants) is selected under single source lump sum contract, Contract amount is
USD 100,000, and NOC from Bank is received. The Contract Agreement is expected to be signed in the
month of October-2013. The draft DPR for SH-20 (Yaragatti-Belgaum) is expected to be finalized by
15th December-2013. It is expected to be issued tender notification by 31 st December-2013 for SH-20
project (Belgaum to Yaragatti section).
Capacity Building for Lead Agency: Contract Road safety capacity building consultants M/s Vic
Roads have been mobilized. The inception report was reviewed by all the stake holder departments and
accepted. The consultant is submitting the final Inception Report soon. The consultant will cover other
procurement for goods and services in coordination with the respective stake holder departments.
Road Safety Cell: GO regarding formation of Road Safety Cell is issued and posting of staff to the cell
is being pursued with Transport Department.
Page 16 of 72
PIU-KSHIP
d) Component 4: Road Sector Policy and Institutional Development

Table 6: Road Sector Policy & Institutional Development
Sl
No
1
2
Items
D-Code Clearance
Formalize the Core
Road Network
IT-ICT
PWD-wide QM /ISO
certification program
Road User Satisfaction

Surveys (RUSS)
GAAP Implementation
Support
Black-Spot
Rectification program
Status
Awaiting approval of the GOK. To be cleared before 15th December 2013.
Proposal is under consideration of Government. Issue of Government
order is expected by end of December 2013.
Shortlist along with RFP submitted to Bank for no objection. Bank
clearance is awaited.
Second call request for Expression of Interest (REOI) was advertised on
1st of Feb 2013 and only two firms were shortlisted. Further Bank during
its mission to KSHIP in the month of June 2013 instructed to issue letters
to the various interested consultants who have ISO operationalizing
background and experiences. Thus letters with REOI have been sent to
various consultants. Eight (8) consultants submitted the Expression of
Interest (EOI) and evaluation is under process. The shortlisted evaluation
report will be submitted to the bank by 5th December 2013.
Contract awarded to MDRA (Marketing and Development Research
Associates New Delhi). Contract amount is USD 95291.00 and Contract
agreement signed on 1st July 2013.
Task to be assigned to Project Management System (PMS) consultant
(M/s. Backend Services as additional scope of services. Additional VO of
USD 33333 (INR 1.5 million) issued to the PMS Consultant. KSHIP
website under development. Complaint Handling System (CHS) at UAT
stage.
It is proposed to improve 35+33 Black spots on SH-23 and SH-25 by
KSHIP for 2013 and 2014. Approval of Steering committee is accorded in
the 59th Steering committee on 16th August 2013.
Page 17 of 72
PIU-KSHIP
2.3
Summary of Procurement Packages for Works, Goods and Services

Table 7: Summary of Procurement for Works, Goods & Services
Sl No
1
2
Procurement
Package
Works
Total
Nos
10*
Contracts
Completed
No's
-Nil-
Contracts
Under Progress
No's
5
Contracts Not Yet

Awarded
No's
5
Services
50**
19
23
3
Goods
9
2
-Nil7
Note:
* WEP-2 Contract is terminated and WEP-2 package is split in to two packages, WEP-2A & WEP-2B.
WEP-2A & WEP-2B procurement is completed.
** 4 procurement packages for services (Procurement of IDSAP consultant, Monitoring consultants for
BOT-toll O&M packages under KRDCL, Consultancy services for statutory audit, KRDCL and
Consultancy services for procurement and training of automated traffic count equipment) have been
dropped.
2.4
Loan Status
Table 8: Loan Status
Loan
Amount in
Million US$
Loan
Effective
Date
Loan
Closing
Date
Cumulative
Disbursement
amount up to June
2013, in US$
million
Cumulative
Disbursement
amount up to
September 2013,
in US$ million
Cumulative
Disbursement
Planned during
Year 2013-14, in
US$ million
350
1, June
2011
31st ,
December
2016
38.209
41.511
167
(As per PAD)
The reasons for slow disbursement are mainly due to termination of WEP-2 contractor M/S Roman
Tarmat Ltd, pending finalization of DBFOMT packages
2.5
Disbursement Claims
Table 9: Disbursement Claims
Projects Overall Disbursement
Up to September 2013
(Million US$)
Planned
167
Actual
41.511
Percentage (%)
11.90%
Note: Actual Disbursement includes Front-End Fee and Advance
2.6
Audit of Project Accounts for the Financial Year 2013-14
The Project has submitted the Interim Unaudited Financial Report (IUFR) for the Quarter ended
30th September 2013 with a claim of US$ 4.778 million..
Page 18 of 72
PIU-KSHIP
2.7
The Audit Report for the financial year 2012-13 has already submitted to Bank during September
2013.
Bank Missions & Ratings
The World Bank mission last visited Karnataka for the third Implementation Support Mission, during the
period of 17th -22nd June 2013. The Key Performance Ratings by the Bank for the Project are as follows:
Table 10: Bank Missions and Ratings
Key Project Data
Board Date
Signing Date
Effectiveness Date
Closing Date
March 24, 2011

May 30, 2011
July 19, 2011
December 31, 2016
Project Age
Disbursement
13 months
US$20.6 M (5.8 % of
Loan)
2 (Financial Management
and Safeguard Compliance)
Flag Risks
Key Performance Rating

Last
Development Objective (DO)
S
Implementation Progress
MS
Procurement Compliance
MS
Financial
Management
MS
Compliance
Safeguards compliance
MU
Legal Covenants Compliance
S
Project Management
Now
MU
MU
MS
S
MU
MU
MU
Counterpart Fund
S
S
M&E
S
MS
S = satisfactory; MS = moderately satisfactory; MU = moderately unsatisfactory; U = unsatisfactory
Page 19 of 72
PIU-KSHIP
2.8
Major Issues and Proposed Resolutions for each Component

Table 11: Major Issues and Proposed Resolutions
Major Issues
Accelerating of work execution on ItemRate Contracts (WEP-3 ) to INR 5

crores/month
DBFOMT Annuity
KRDCL OMT roads
Proposed Resolution
Time Line
In the management meeting held on 22nd

May 2013, it was agreed that the Contractor
will infuse at least INR 100 Million of
working capital in July 2013 to start
improving progress to about 5% per month
from August/September, failing which
stringent Contractual measures including
Contract termination could be resorted to.
31-Dec-13
Reviewing the DBFMOT Concession,

restructuring and rebidding for four annuity
contracts.
Tender notification was issued on 28th Feb
2013. The RFP issued to bidders and last
date for submission of bids is on 17 th June
2013. There is no response received from
bidders, decided to modify the bid
document and invite tender in second call.
Developed alternate sites have been

provided to the 11 PAPs. Construction cost
in respect of 11 PAPs has been released and
Develop and allot alternative sites with placed with the Executive Engineer,
construction grants and moving allowance Shimoga with instruction to release the
to 14 families in WEP-2
same in installments to the PAPs based on
construction progress.
Release of
compensation and other R&R assistance is
under process.
Joint Verification has been conducted in all
packages except in the town limits of
Shimoga, Shikaripura and Hangal. 844
PAPs (505 commercial squatters, 60
Issue of ID cards to eligible Non-Title
residential squatters 8 tenants and 271
Holders in Annuity packages
encroachers) have been identified and out of
them 544 (64.45%) have been issued ID
cards. Issue of ID cards to the remaining
PAPs is in progress.
Staffing completion for the Road safety
Cell as per the agreed covenant
GO regarding formation of Road Safety Cell

is issued and posting of staff to the cell is
being pursued with Transport Department.
31-Dec-13
31-Dec-13
31-Dec-13
31-Dec-13
31-Dec-13
Page 20 of 72
PIU-KSHIP
Major Issues
Identify and Procure Certifying agency for

ISO 14001 certification
Design the RSCDP program and the M &

E framework and start commencing the
bidding for civil works
Proposed Resolution
Bank during its mission to KSHIP in the
month of June 2013, instructed to issue
letters to the various interested consultants
who have ISO operationalizing background
and experiences, the letters along with EOI
have been sent to various consultants. The
last date for receiving EOI is 31st August
2013. Eight (8) consultants submitted the
Expression of Interest (EOI) and evaluation
is under process. The shortlisted evaluation
report will be submitted to the bank by 5th
December 2013.
For the two (2) Safe Corridor
Demonstration Project, M/s URS Scott
Wilson India Pvt. Ltd is selected under
single source process for an amount of USD
100,000 (INR 4.5 Million). The NOC from
Bank is received. The Contract Agreement
is expected to be signed in the month of
October-2013. The draft DPR for SH-20
(Yaragatti-Belgaum) is expected to be
finalized by 15th December-2013. It is
expected to be issued tender notification by
31st December-2013 for SH-20 project
(Belgaum to Yaragatti section).
Revised D-Code clearance to be obtained

from Finance Department
Awaiting approval of the GOK. To be

cleared by 15th December 2013.
Submission of Quarterly Disbursement

Projection for FY 14 by July 15,2013
The disbursement projection for the quarter

ended July to Sept 2013 was estimated at
US $ 5.0 Million. The report sent to the
Bank during August 2013.
Time Line
5-Dec-13
2-Dec-13
15-Dec-13
Page 21 of 72
PIU-KSHIP
2.9
Project Performance Indicators
For details on project performance indicators please refer Table-48 of Chapter-11.
2.10 Actions Expected For Next Quarterly Period

Table 12: Action expected for Next Quarterly Period
Activity
Responsibly
Formalize the Core Road
PWD
Network
Consultancy
services
for
Collection of Non-CRN Road
condition data for Population and
PWD
operationalisation
of
Road
information
system
and
pavement management system.
Clearance under Forest
(Conservation) Act
PIU
PWD-wide QM /ISO
certification program
PIU
EOI/TOR of OMT concession

issued for KSHIP-I and KRDCL
roads (following government
approval)
Consultancy services and
training for traffic police (Also
includes Safe corridor program capacity building for police
enforcement)
Safe corridor program consultancy services for
development of safety campaigns
Safe corridor program consultancy services for capacity
building for post impact care
Safe corridor program
consultancy services for
monitoring and evaluation
KRDCL
Timeline
A final proposal is under Government and
decision expected by end of December 2013.
EOI short listing completed. RFP is under
preparation and will be submitted to WB
shortly.
KSHIP has complied all conditions except
alternate land to be provided by the DC
Shimoga. Land identified. Handing over
process to forest department is in progress.
In second call request for Expression of
Interest (EOI) was advertised on 1st of Feb
2013 and only two firms were shortlisted.
Further Bank during its last mission to KSHIP
in June 2013 instructed to issue letters to the
various interested consultants who have ISO
operationalizing background and experiences.
The letters along with EOI have been sent to
various consultants. Eight (8) consultants
submitted the Expression of Interest (EOI) and
evaluation is under process. The shortlisted
evaluation report will be submitted to the bank
by 5th December 2013.
KRDCL OMT roads, tender notification was
issued on 28th Feb 2013. The RFP issued to
bidders and last date for submission of bids is
on 17th June 2013. There is no response
received from bidders, decided to modify the
bid document and invite tender in second call.
RSM consultant is taking up procurement of

services and goods under road safety
TRSC/POLICE/PIU component in coordination with all stake
holder departments under road safety cell,
appropriate VO has to be approved in
consultation with WB.
PIU/RSM-TA
PIU/KSHRDP
PIU/TRSC/RSMTA
Page 22 of 72
PIU-KSHIP
Activity
Consultancy services and
software development for Traffic
Incident Management System
(TIMS)
Road safety consultant for
DBFOMT (Annuity) contracts(Road Safety Audit)
Responsibly
PIU/TRSC/RSMTA
PIU
Delay in the starting the SCDP

designs and the Monitoring and
Evaluation (M&E) framework,
and thus the procurement for
civil works.
Selection of TA for enhanced

PWD core skills training
Suite(Conducting Training)
Appointment of Project
Management Consultancy
(PMC)
Timeline
PIU
RFP and shortlist of consultant is ready.

Further process will be undertaken on decision
of award of DBFOMT Annuity Contract.
M/s URS Scott Wilson India Pvt. Ltd is
selected under single source process for an
amount of USD 100,000 (INR 4.5 Million).
The NOC from Bank is received. The Contract
Agreement is expected to be signed in the
month of October-2013. The draft DPR for
SH-20 (Yaragatti-Belgaum) is expected to be
finalized by 15th December-2013. It is
expected to be issued tender notification by
31st December-2013 for SH-20 project
(Belgaum to Yaragatti section).
PIU/PWD
To be finalized in discussion with the Bank.
PIU
Draft TOR is prepared and will be submitted

by 30th December 2013.
Page 23 of 72
PIU-KSHIP
3.
INTRODUCTION
3.1
Project Background
The Karnataka State Highways Improvement Project (KSHIP) is an initiative of the Public Works
Department (PWD) of the Government of Karnataka (GOK) for improvement of the road network of the
State. Previously, the improvement of 2,414 km of State Highways (SH) and Major District Roads
(MDR) in Karnataka was completed under KSHIP-I with World Bank (WB) assistance. Following on
from the success of KSHIP-I, a further 3,414 km of SHs roads have been prepared for implementation
under KSHIP-II. The Detailed Project Report (DPR) was completed by the Consultant (Scott Wilson) in
December 2009.
The GOK through Government of India (GOI) has obtained a loan (signed on 30 May 2011) from the
International Bank for Reconstruction & Development (IBRD) as financial assistance towards the
implementation of KSHIP-II. Key references of the Loan are given below.
Financing Agency
Loan no.
Project Number
Loan Signing Date
Effective Date
Closing Date
Total Loan Amount
IBRD
8022 IN
P107649
30th May 2011
19 July 2011
31 December 2016
US$ 350 million
The financing plan amounts to US$ 1,005 million comprising US$ 155 million by GOK, US$ 500
million by private sector developers, and US$ 350 million by IBRD.
The IBRD assistance covers the following four components.
Component 1: Road Improvement Works (Total Cost: US$603 million; IBRD: US$260 million;
GOK: US$94 million; Developer: US$249 million). This component will support capital
improvement and maintenance works of selected priority Core Road Network through a combination
of traditional Item Rate contracts and PPP concessions.
Component 2: Highway Financing Modernization (Total Cost: US$374 million; IBRD: US$67
million; GOK: US$56 million; Developers/Financial Institutions: US$251 million). This component
will assist KRDCL in implementing the concept of co-financing with private financial institutions
through technical assistance and pilot transactions.
Component 3: Road Safety Improvement (Total Cost: US$14 million; IBRD: US$11 million; GOK:
US$3 million). This component will assist the GOK to respond to the growing road safety problems
in Karnataka with comprehensive strategic and institutional measures, consistent with the main
thrusts of the 2007 Sundar Committee report and the findings of the road safety management
capacity review.
Component 4: Road Sector Policy and Institutional Development (Total Cost: US$11.8 million;
IBRD: US$9.44 million; GOK: US$2.36 million).This component will support implementation of a
Page 24 of 72
PIU-KSHIP
new medium-term Institutional Development and Strengthening Action Plan (IDSAP) for the period
2010-2016.
The PWD has established a Project Implementation Unit (PIU) to implement three of the four project
components, namely Components 1, 3 and 4. The Karnataka Road Development Corporation Limited
(KRDCL) using its main organizational setup is responsible for implementing Component 2.
This Quarterly Progress Report is submitted to the Bank as per the reporting requirements under IBRD
assistance which call for quarterly progress reports covering the physical and financial progress for
project components to be submitted by the PIU-KSHIP. The Report, which has been reviewed by PIUKSHIP, is prepared by the Project Coordinating Consultant (PCC), URS Scott Wilson, based on PCC
activities and necessary inputs by PIU-KSHIP.
3.2
Project Data
Table 13: Project Data
Project Data
Project Title:
Project Number:
Project Report Number:
Report Start Date:
Report End Date:
Exchange Rate (Local to
US$)
Grant
Original Grant Amount:
Revised Grant Amount:
Bank Board Approval Date:
Grant Signing Date:
Effectiveness Date:
Expected Date of Completion:
Original Closing Date:
Revised Closing Date:
Project Funding
Karnataka State Highways Improvement Project-II

P107649
1/6/2011
30/12/2012
45
US$350 million
24/03/2011
30/5/2011
19/7/2011
31/12/2016
Institution
Government Contribution:
Co-Financing:
Missions
During the Reporting Period:
Next Expected Mission:
Bank Contact
Task Team Leader
Transport Specialist
Sr. Transport Specialist
GOI/GOK
Amount
US$ 155 million (GOI/GOK)
US$ 500 million
(Developers/ Financial Institutions)
US$ 350 million
Third Implementation Support Mission: June 17-22, 2013

December 2013
Name
Email
Phone/Fax
+1-202 458 5630
Dr. Binyam Reja
Breja@worldbank.org
Radia Benamghar
rbenamghar@worldbank.org
abandyopadhyay@worldbank +91-11-49247768
Arnab
+91-11-49247643
Bandyopadhyay
.org
Page 25 of 72
PIU-KSHIP
Procurement
ArunKolsur
akolsur@worldbank.org
+91-11-4363 6629
+91-11-4363 6651
Sr. Financial Management

Specialist
S. Krishnamurthy
skrishnamurthy@worldbank.o
rg
+91-11-41479605
+91-11-24652230
Implementing Agency
Name of Executing Agency:
Name of Implementation
Agency:
PWD, Government of Karnataka
Address:
Project Implementation Unit, KSHIP, PWD Offices, Annexe Building,

KR Circle, Bangalore - 560 001
Project Management
Contact Person:
Phone/Fax:
Email:
Executing Agency
Mr Ramesh N.S, Project Director, PIU-KSHIP

Phone: 91-80-22226262. Fax: 91-80-22229666
piukship@gmail.com
Contact Person:
Phone/Fax:
Email:
Address:
KSHIP & KRDCL
Mr E. Venkataih, Principal Secretary, Public Works Ports& Inland

Water Transport Department
Phone: 91-80-22251449/22034912. Fax: 91-80-22353988
prs-pwd@karnataka.gov.in
Vikasa Soudha, Bangalore
Page 26 of 72
PIU-KSHIP
4.
DETAILED PROJECT IMPLEMENTATION/PROGRESS BY COMPONENT AND CONTRACT
4.1
WB-EPC Packages
The WB-EPC packages, all of which have been awarded and where works are in progress, are listed in the table below.
Table 14: Civil Work Progress
Contract
Name
WEP-1
WEP-2A
WEP-2B
WEP-3
WEP-4
Contract No
KSHIPII/STG1/ICB/WEP-1
(Hoskote to
Chinthamani Bypass)
KSHIPII/STG1/NCB/WEP2A (Haveri (NH-4) to

Hanagal )
KSHIPII/STG1/NCB/WEP2B (Hanagal (NH-4)

to Tadasa )
(Dharwad-Saundatti)
(Tinthini-Kalmala)
Proc
Method
ICB
NCB
NCB
ICB
ICB
Signing
Date
12th Apr
2011
22nd
Feb
2013
6th July
2013
07th Apr
2011
31st Mar
2011
Contract
Amount
US$
Million
21.83
20.56
21.75
18.76
35.71
Length
(Km)
Jan-Mar
Apr-Jun
July-Sept
Planned
21.47
19.3
9.29
66.17
28.69
10.14
54.64
Actual
11.24
9.89
4.28
61.16
8.51
5.34
49.83
Difference
10.23
9.41
5.01
5.01
20.18
4.80
4.81
Planned
12.58
13.59
1.59
1.59
Actual
1.62
1.62
Difference
12.58
13.59
-0.03
-0.03
Planned
Actual
Difference
Planned
23.11
8.48
10.35
38.41
12.63
40.40
Name of the
Contractor
2013-14
Progress
52.4
31.78
43.459
36
73.8
M/s Lanco
Infratech Ltd.
M/s DRN
Infrastructure,
Engineers &
Contractor
M/s DRN
Infrastructure,
Engineers &
Contractor
M/s RVCPLRIDL JV
M/s Patel
Engineering
Ltd.
Overall
Financial
Progress
till end of
30th Sept
2013, %
Overall
Physical
Progress
till end of
30th Sept
2013, %
Quarterly Physical Progress, %
Financial Progress, %
2013-14
Apr-Jun
July-Sept
22.9
Actual
11.58
5.97
3.78
33.11
6.02
2.56
28.34
Difference
11.53
2.51
6.57
5.30
16.88
10.07
12.06
Planned
14.09
11.43
8.23
62.95
12.82
8.90
55.41
Actual
17.67
8.78
10.47
60.55
6.47
7.30
48.24
Difference
-3.58
2.65
-2.24
2.40
6.35
1.60
7.17
Page 27 of 72
PIU-KSHIP
Contract
Name
WEP-5
Contract No
(ChowdapurGulbarga)
Proc
Method
ICB
Signing
Date
31st Mar
2011
Contract
Amount
US$
Million
13.68
Length
(Km)
Apr-Jun
July-Sept
Planned
20.7
7.60
94.74
25.61
11.19
78.12
Actual
16.9
3.96
5.32
91.71
2.29
4.35
72.91
Difference
3.8
-3.96
2.28
3.03
23.32
6.84
5.21
Progress
28.63
July-Sept
Jan-Mar
Name of the
Contractor
M/s SRKKCl JV
Apr-Jun
Overall
Financial
Progress
till end of
30th Sept
2013, %
Overall
Physical
Progress
till end of
30th Sept
2013, %
Quarterly Physical Progress, %

2013-14
Financial Progress, %
2013-14
Page 28 of 72
PIU-KSHIP
4.2
Civil Works Progress
For the five WB-EPC contracts, the civil works physical progress in the quarter in terms of percentage
(based on physical quantities) achieved are summarized below.
WEP-1
The physical progress of pavement layers is found satisfactory. The percentage completion of earthworks
is 23.96%; GSB 61.80%, WMM 61.80%, DBM & BC are 58.52 % against the planned 100% have been
reported.
The overall physical progress achieved till this quarter is 61.16% against planned 66.17 % and overall
financial progress is 49.83% against the planned of 54.64%.
Progress on bridges, culverts & drains is inadequate to meet the scheduled target. Thirty Five (35) cross
drainage structures have been completed out of a total of fifty five (55). Eight (8) bridges have been
completed out of seventeen (17).
Still Crusher license is pending with District Collector. In respect of this, PIU KSHIP official requested
DC, Bangalore to clear the application of the Contractor which is pending from long time
WEP-2A
The contractor has completed twenty (20) cross drainage structures have been completed out of sixty four
(64). The quarry license and crusher license CFE and CFO issued on 24 th May 2013, the Contractor
obtained MOEF clearance for quarry operations. The Contractor not yet started the any earthwork
activities as per Programme.
WEP-2B
Regarding WEP-2B Contract, the contract awarded to M/s DRN Infrastructure, Engineers & Contractor
and Contract signed on 6th July 2013. On 20th July site handing over and notice to proceed with the work
has been issued.
WEP-3
The progress is still lagging far behind the schedule. The physical progress of earthwork is 43.04%, GSB
39.21%, WMM 35.63%, DBM and BC are 25.52% against the planned 100% as reported.
The overall physical progress achieved up to this quarter is 29.90% against planned 100 % and overall
financial progress is 25.64% against the planned of 100%.
Twenty seven (27) culverts have been completed out of a total forty one (41). Two (2) Major Bridges
completed out of total eight (8).
The Contractor has received KSPCB approval for crusher, quarry and HMP plants. The insufficient cash
flow and lack of proper co-ordination between JV partners have resulted in slow progress of this
Contract. Frequent management meetings have been conducted to monitor the work and also achieve
better co-ordination between the JV partners. Further Contractor proposed new km-wise Section-I from
Km 2+500 to Km 22+500 and Section-II from Km 22+500 to Km 38+500 with the completion date as
December 2013 for Section-I and June 2014 for Section-II, the Engineer reviewed the milestone
proposal, work Programme and recommended to the Employer the revised dates for Section-I and
Section-II with possible delay and damages.
Page 29 of 72
PIU-KSHIP
WEP-4
The physical progress of pavement layers is found satisfactory. The physical progress of earthworks is
51.64%, GSB is 58.47%, WMM 56.48% and DBM & BC are 56.62% against the planned 100% as
reported.
The overall physical progress achieved up to this quarter is 60.55% against planned 62.95 % and overall
financial progress is 48.24% against planned of 55.41%.
Progress on bridges, culverts & drains is very slow. Seventy two (72) cross drainage structures out of one
hundred and ten (110) have been completed. Only twenty four (24) bridges have been completed out of
thirty eight (38).
WEP-5
The progress is still lagging far behind the schedule. The Contractor is not performing based on the
Programme which was submitted by him. The physical progress of earthworks is 48.94%; GSB 88.74%,
WMM 85.91%, DBM and BC are 81.76% against the planned 100% as reported.
The overall physical progress achieved up to this quarter is 91.71% against planned 94.74% and overall
financial progress is 72.91% against the planned 78.12%.
There is no progress on construction of CD works and Major Bridge work in current quarter. So far
thirty eight (38) culverts out of forty (40) have been completed. Five (5) bridges out of seven (7) have
been completed.
The key issue in the reporting period is shortage of key and experienced staff and shortage of funds.
As per the Contract project completion date is 18 th January 2013, based on EOT the project completion
date is 18th April 2013. The Contractor submitted the EOT Programme stating the completion time as
October 2013, which is rejected by the Engineer. On 25 th July, the Contractor claimed that, he needed up
to December as the completion date due to delay in approval of licenses, change in scope etc., which was
rejected by Engineer. The Contractor is not performing based on the Programme which was submitted by
him.
Page 30 of 72
PIU-KSHIP
4.3
Major Ongoing Issues
Major ongoing issues in the current quarter are given in table below.
Table 15: Major ongoing Issues
Other LA and R&R related

actions
Component 1A.: Road Improvement Works

(Item-rate contract 6 packages)
Area
Action Required
Responsibi
lity
WEP 3: Supplementary agreement with revised

work program/targets, along with indication of
resources
PIU
WEP 2: Develop and allot alternative sites with

construction grants and moving allowance to 14
families in WEP-2
Action Taken
Due Date
Revised Program obtained from the contractor
Complied
PIU/LAQ
The sites have been allotted to 11 families who are eligible. The payment of
compensation is in progress.
Complied
WEP 2A: Resolution on satisfactory assessment

and payment of compensation to affected structures
PIU/LAQ
Compensation has been paid.
Complied
WEP 2B and 3: Streamline the signage and

measures for safety for workers and other road
users during construction
PIU/Enviro
nment
Instructions have been issued in the form of letters to all contractors and
periodic informal trainings conducted at work places. Improvements observed
in WEP 1, WEP 2A and WEP-3 packages. In the remaining packages
contractors are being pursued.
30-Sep-13
WEP 5: Prepare estimate of fallow land under

cultivation
PIU/Enviro
nment
An estimated 94Sqm of borrow area land under WEP 5 package is being

developed into cultivation land under the borrow area management program.
Similar plan for the remaining packages is under preparation.
complete
Completion of mid-term LA and R&R Impact

Evaluation
PIU/R & R
Modified Check list is ready. Compliances to the World Bank observations

from the check list will be sent.
Nov. 2013
Extend assistance to all vulnerable people in EPC

contracts
PIU/R & R
Vulnerable people identified. Except 3, all other are getting pension from
Govt. Report is being sent to WB.
15.11.2013
In all WEP contracts, finalize Encumbrance

Removal Plan
PIU/R & R
Encumbrance removal plan for all packages except WEP5 will be sent to WB
by end of the month.
30-11-2013
Page 31 of 72
PIU-KSHIP
Component 1B: DBFOMT

Annuity Concessions
Other Environmental Management Issues
Area

Action Required
Responsibi
lity
Action Taken
Due Date
Pay difference in amount between depreciated and

without depreciation for structure compensation
PIU/LAQ
Details are being collected from AC. Status report will be finalized and shared
with the Bank shortly.
Dec, 2013.
Provide update and plan of action for reuse of

scarified material from WEP roads following pilot
along WEP1
PIU/Enviro
nment
A project on pilot basis has been undertaken in WEP-1 for the recycling of
scarified materials to resurface PWD village road for a length of about 500
meters. The work is under progress and is expected to be completed by 15 th
December 2013. The findings will be shared with the WB for taking further
action in the matter.
15-Dec-13
Obtain consent to operate for plants used for the

project
PIU/Enviro
nment
Except WEP1 and WEP2B, in all other contract packages contractors have
obtained consents from the DC and Pollution Control Board. WEP2B
Contractor identified the location for establishing camp and identification of
quarry is under process.
Mar,15, 2014
Submit compliance with stage 1 conditions of

clearance and follow up for stage II clearances
under forest Act, especially for M7A
PIU/Enviro
nment EE
Shimoga/A
CF
KSHIP has complied all conditions except alternate land to be provided by the
DC Shimoga. Land identified. Handing over process to forest dept is in
progress.
30-Nov-13
Complete enhancement works for all ponds as per

revised design
Environme
nt EE
Tumkur,
Shimoga,
Raichur
Four water bodies along the project roads have been taken up of which one
pond in WEP-3 package is completed, in the remaining WEP-1, WEP-2 and
WEP-4 will be completed.
April, 30th
2014.
Response to additional information/clarifications

w.r.t. BER, as requested by the Bank
PIU
The additional information has been submitted to WB. Further suggestions of

WB are under review by KSHIP and GOK.
30-Nov-13
Independent Engineer - $9.5 million
PIU
Action will be taken after decision on award of annuity works.
31-Dec-13
Page 32 of 72
PIU-KSHIP
Other Environmental
Management Issues
LA and R&R related actions
Area

Action Required
Responsibi
lity
Action Taken
Due Date
Complete LA process and identify alternative house

sites for all packages
PIU/LAQ
R&R
60 PAPs NTHs in WAP packages have to be provided alternate house sites.

Location of sites to 33 PAPs in the progress
31st Dec 2013
Complete issue of pending section 15 of LA notices

in WAP pack ages (Kortagere, Solur,
RannaBelagale, and Kunigal)
PIU/LAQ
R&R
Section 15 notifications issued for all balance expect Koratagere bypass which
is under litigation.
15-Dec-13
Complete consultations in all WAP packages as per

RIP disclosure
PIU/LAQ
R&R
Public consultations completed in Link 63D, E, 64F & G of WAP-1; 19 C &

D of WAP-2 and M7C & T21 of WAP-3 will be completed in the remaining
links by Oct 2013
30th Nov 2013
Supplementary RIP for WAP packages
PIU/R & R
After issue of 15 Notifications, supplementary RIPs will be prepared and sent

for concurrence
30th Nov 2013
Appointment of Assistant Commissioner
PIU/LAQ
Asst Commissioners for Bangalore and Belgaum recently posted.
Complete constituting district level grievance

committees in the remaining 10 districts
PIU/R & R
Committees have been constituted in 13 districts. For Belgaum, proposals are

pending with DC. Being pursued.
30th Nov 2013
Extending Income generation assistance to PAPs in

Phase II roads
PIU/R & R
83 PAPs released IGA. For others proposals are awaited from NGOs
30th Nov 2013
Completion of Joint verification of impacts and

issue of ID cards in Phase II roads
PIU/R & R
Joint verification completed in all links except town limits of Shimoga,

Shikaripura and Hangal, where four lane is proposed.
30th Nov 2013
Update Entitlements for those residing on

Grmathna lands and ex-gratia for affected
structures to squatter families.
PIU/R & R
/LAQ
It is under examination
30th Nov 2013
Out of 2 applications 1 Application is cleared by the National Monument

Authority New Delhi. KSHIP is pursuing the NMA for approval of the 2 nd
application
30th Nov 2013
Follow up with Department of culture, GoK, to

ensure that the successful bidder is provided with
information regarding safeguards required during
construction close to temples in WAP3
PIU/Enviro
nment
Complied
Page 33 of 72
PIU-KSHIP
Area

Responsibi
lity
Action Required
Component 2: Highway Financing Modernization (KRDCL)
EMP to be submitted by potential bidders and EHS

consultant completion of rejuvenation of water
bodies along the road side
PIU/Enviro
nment
Action Taken
Due Date
After
concessionaires
are mobilized
Not yet due
Activities related to roads to be financed through co-financing

Identify the list of 400km roads to be
financed under this component
KRDCL
The list of 8 co-financing packages has been already identified by KRDCL.
Before
September 30,
2013
The DPR consultants have been mobilized on 22nd Aug 2013
The DPR consultant has submitted inception report and made a inception
presentation along with reconnaissance survey findings on 5th Sept 2013.
Finalization of DPRs for the roads
identified in Step 2a)
KRDCL
Field surveys required for revalidation of DPRs will commence by 4 th week of

Sept 13. It is proposed to complete Revalidation of components essential for
project structuring by December 2013.
Before
December 31,
2013
R&R survey and land acquisition surveys will also progress concurrently
since these tasks are time consuming.
Initiation of the Bidding Process
KRDCL
It is proposed to initiate procurement in two batches. The DPR consultants
have been advised to prioritize the roads requiring minimum time for
revalidation and surveys in Batch 1.
By January 31,
2014
Based on the cost and traffic data to be provided by DPR consultant (likely by
end of Nov 2013), FPTA shall initiate the project structuring exercise.
Page 34 of 72
PIU-KSHIP
Area

Responsibi
lity
Action Required
Action Taken
Due Date
In the Aide Memoire of WB dated June 17-22, 2013 it is suggested that the
contracting options need to be expanded to include lump sum EPC plus
maintenance contracts. This option will also be kept in view while structuring
the projects.
World Bank is requested to advise if Single Stage Two Cover bidding mode
will be acceptable by World Bank for the PPP contracts. This proposal was
also made before WB in KRDCL email dated 15th June 2013.
Concomitant Actions required to facilitate co-financing with support from PWC
Consultants (PWC) to submit their
inception report and strategic presentation
on KRDCLs scope of work and business
plan over next five years, to be presented
to the Government and obtain their
endorsement for (i) selection of roads for
co-financing component; (b) utilization of
revenue from OMT concessions and other
means of support from exchequer/Govt to
support co-financing roads;
Issue of OMT concessions on roads that
would mobilize revenue to support for cofinancing component
The FPTA consultant has made a presentation of the Inception Report to

Review Committee in April 2013, post which final report with suggested
modification was also submitted during the same month.
KRDCL
Strategic presentation has been prepared by FPTA and has been presented to
MD, KRDCL in September 2013.
Before
September 30,
2013
A date from Senior GoK officials is being sought currently by KRDCL.

KRDCL
IDecK is providing transaction advisory services for OMT Concessions.
Before
November 30,
2013
The documents are based on KSMCA Std. Document.

Single stage bidding process with two cover system has been adopted.
Bids for OMT contracts were invited in Feb 2013and opened in July 2013.
There was no response for all the eight OMT contracts.
Presently, the OMT documents are being restructured with the objective of
ensuring good participation. Bids will be invited once again shortly.
Page 35 of 72
PIU-KSHIP
Component3: Road Safety Component
Area

Action Required
Responsibi
lity
Action Taken
The list of the roads included in proposed OMT contracts and sample bidding
documents are enclosed for Banks information.
Initiation of dialogue (before Sept 30,

2013) and then finalize co-financing
arrangements
including
through
securitization of revenues from OMT
concessions on roads that would mobilize
revenue to support this component.
KRDCL
Appointment of Procurement Advisor to

coordinate all procurement activities
related to safety
PIU
Finalize list of all procurements and

include the same in procurement action
plan
PIU
Securitization of revenues from OMT concessions for co-financing

arrangements can be decided upon the response from OMT contracts
RSM consultant is taking up procurement of services and goods under road

safety component in coordination with all stake holder departments under road
safety cell, appropriate VO has to be approved in consultation with WB.
Due Date
Before
November 30,
2013
By August
2013
By August
2013
Civil Works
Award of contracts for Maddur to Mysore
PIU
Tender Notification by 30th Dec 2013.
30th Dec 2013
Award of contracts for Belgaum to

Hungund
PIU
Tender Notification by 2nd Dec 2013.
2nd Dec 2013
Goods
Police Enforcement Equipment
Post-Impact Care
PIU
Monitoring and Evaluation Software and
Hardware
RSM consultant is taking up procurement of services and goods under Road

Services
Capacity Building for Police Enforcement
Development of Safety Campaigns

Capacity building for Post-Impact Care
PIU
Consulting Services for M&E
RSM consultant is taking up procurement of services and goods under road

Traffic Incident Mgt System (TIMS)

Consultant for DBFOMT
PIU
Action to be taken after decision on award of annuity works.
31-Dec-13
Page 36 of 72
PIU-KSHIP
Area
Responsibi
lity
Action Required
Center of Excellence
Establishment
Study
and
PIU
Action Taken
This will be covered under RSM Consultancy.
Due Date
-
Road Asset Management System

PIU
Short listing finalized on 17-10-2013. RFP is under finalization. WB no

objection to be sought shortly.
31-Dec-13
PIU
EOI evaluation completed and evaluation report along with draft RFP shall be
sent to Bank
31-Dec-13
Procurement of Software
PIU
This is Part of the KRAMS software under PRAMC
IT-ICT-MIS Consultant
PIU
Shortlist submitted to WB for no objection.
31-Dec-13
Strategic Studies for GOK planning
PIU
TOR is under preparation.
31-Dec-13
PIU
Awaiting approval of the GOK
31-Dec-13
Study of future institutional development

and strategies
PIU
To be discussed with WB.
14-Jun-13
Finalization of D-Code
PIU
Awaiting approval of the GOK
31-Dec-13
Engagement of consultant
Component 4: Road Sector Policy and Institutions Development
Data Collection
Network
for
non-Core
Road
Establishment/operationalization
Road
Fund
Quality Management/Quality Control

QM ISO Certification program
PIU
Short listing of additional four firms is under process. EOI is under evaluation.
QC Equipment
PIU
To be procured under two stages.
QC Capacity Enhancements
PIU
In view of poor response even for the 2nd call, the Banks concurrence is
sought for selection of SSS or to go for 3rd call.
PIU / Environment
TOR approved by World Bank on 30.10.2013 and EOI will be notified in

November 2013.
Environment ISO Certification Selection

of Audit/Certification agency
31-Dec-13
13-Nov
Road User Satisfaction Survey (RUSS)
PIU
Agreement signed on 1st July 2013. The consultancy service is in progress.
RUSS II
PIU
EOI is under finalization and will be issued by end of Nov, 2013.
Nov, 2013
RUSS III
PIU
Not yet due
Not yet due
Mid-June 2013
Page 37 of 72
PIU-KSHIP
Overall Project Management Issues
Area

Action Required
Responsibi
lity
Action Taken
Due Date
Immediately
Road Safety Cell to staffed
PIU
GO regarding formation of Road Safety Cell is issued and posting of staff to

the cell is being pursued with Transport Department.
Appointment of PMC (IDSAP to be

included)
PIU
Draft TOR is prepared and will be submitted by 30th December 2013.
PCC contract for phase 2
PIU
PCC contract service for Phase- 2 is currently in progress.
Project Monitoring Report (PMR)
PIU/JCA
Monthly/Quarterly Project Reports
PIU
Financial Management Report

Procurement Plan
PIU/JCA
PIU
30th December
2013.
Submitted
Submitted for 2nd quarter.
Nov, 2013
IUFR for quarter ending Sept submitted.

Updated procurement plan submitted
Page 38 of 72
PIU-KSHIP
5.
PROJECT IMPLEMENTATION MONITORING
An overall evaluation of the Project implementation in terms of planned completion as a percentage of

the total, actual completed as a percentage of the total and the difference is presented in the Table below
for key areas of the Project.
Table 16: Project Implementation Monitoring
2011-12
Area
Planned
- Year
End
Actual
8.5
8.5
2012-13
2013-14
Difference
Planned
- Year
End
Actual
Difference
17
15.1
1.9
Planned
- Year
End
Actual
Difference
Cumulative % of civil
works completed
(contract value)
Cumulative % of
equipment supplied
(contract value)
Cumulative % of
Services completed
(cost)
Procurement of IT equipment, Office equipment, and supply of almirah is completed
Cumulative % of
resettlement
completed
R&R completed in all EPC packages except resettlement and rehabilitation of 13 families in WEP-2. In
Annuity Contract, out of 844 PAPs 519 have been issued ID cards. Subsistence and shifting allowance
have been paid to 397 PAPs and replacement cost paid to 54 encroachers. Release of assistance to
other PAPs is in progress. The status of land acquisition completed in EPC package by 99% and there
is only 0.51% progress in Annuity package.
An amount of US$ 3.143 million has been disbursed under the procurement of 19 services.
Page 39 of 72
PIU-KSHIP
5.1
Physical Progress
WEP-1
The following table shows the Planned Quantity v/s Achieved Quantity during this reporting quarter. The
planned quantity is as per approved Work Program.
Table 17: Physical Progress of WEP-1
Item
Earthwork, Cum
(BOQ = 1,066,666 Cum)
GSB, Cum
(BOQ = 144,069 Cum)
WMM, Cum
(BOQ = 156,506 Cum)
DBM, Cum
(BOQ = 33,853Cum)
BC, Cum
(BOQ =23,309 Cum)
Item
Culverts (Total 55 No)
Bridges (Total 17 No)
Program
July
August
September
Total
62300
59831
183821
Planned
61690
Achieved
10310
6611
16921
Planned
5425
4438
4438
14301
Achieved
4912
2361
298
7571
Planned
6139
5003
5003
16145
Achieved
4621
3447
1809
9877
Planned
1775
1775
1212
4762
Achieved
641
856
377
1874
Planned
926
926
764
2616
Achieved
Program
625
July
130
August
737
September
1492
Total
Planned
Achieved
Planned
Achieved
WEP-2A
Page 40 of 72
PIU-KSHIP
Table 18: Physical Progress of WEP-2A

Item
Earthwork, Cum
GSB, Cum
WMM, Cum
DBM, Cum
BC, Cum
Item
Program
Planned
July
-
August
-
September
-
Total
-
Achieved
Planned
Achieved
Planned
Achieved
Planned
Achieved
Planned
Achieved
Program
July
August
September
Total
Planned
15
19
Achieved
Planned
15
-
5
-
20
-
Achieved
WEP-2B
The agreement signed on 6th July 2013 and Contractor already identified land for land Base camp. The
identification of borrow areas and crusher locations is under process.
WEP-3
Item
Earthwork, Cum
(BOQ = 12,33,106 Cum)
GSB, Cum
(BOQ = 94,120 Cum)
WMM, Cum
(BOQ = 1,01,306 Cum)
DBM, Cum
(BOQ = 25,185Cum)
BC, Cum
(BOQ =15,727 Cum)
Item
Program
July
August
September
Total
Planned
4168
668
53623
58459
Achieved
2040
3237
639
5916
Planned
4596
4021
2872
11489
Achieved
2660
2660
Planned
3609
3609
5413
12631
Achieved
3407
483
1291
5181
Planned
886
673
1345
2904
Achieved
374
796
205
1375
Planned
834
590
834
2258
Achieved
Program
0
July
0
August
0
September
0
Total
Planned
Achieved
Planned
Achieved
Page 41 of 72
PIU-KSHIP
WEP-4
Item
Program
July
August
September
Total
Earthwork, Cum
(BOQ = 22,59,190 Cum)
Planned
67090
44375
42700
154165
Achieved
18581
19100
7266
44947
GSB, Cum
(BOQ = 1,90,127 Cum)
Planned
8000
7000
5320
20320
Achieved
4186
6873
4732
15791
Planned
7500
7200
5958
20658
Achieved
4974
7862
5879
18715
Planned
1150
915
900
2965
Achieved
485
1627
1422
3534
WMM, Cum
(BOQ = 2,02,241 Cum)
DBM, Cum
(BOQ = 38,121Cum)
BC, Cum
(BOQ =30,501 Cum)
Item
Planned
545
360
456
1361
Achieved
Program
1343
July
1841
August
391
September
3575
Total
Planned
15
Achieved
16
Planned
Achieved
11
Page 42 of 72
PIU-KSHIP
WEP-5
Item
Earthwork, Cum
(BOQ = 22,59,190 Cum)
GSB, Cum
(BOQ = 1,90,127 Cum)
WMM, Cum
(BOQ = 2,02,241 Cum)
DBM, Cum
(BOQ = 38,121Cum)
BC, Cum
(BOQ =30,501 Cum)
Item
Program
July
August
September
Total
Planned
Achieved
1290
3705
142
5137
Planned
Achieved
434
200
634
Planned
Achieved
564
385
949
Planned
Achieved
98
74
172
Planned
Achieved
Program
242
July
1434
August
918
September
2594
Total
Planned
Achieved
Planned
Achieved
Page 43 of 72
PIU-KSHIP
5.2
Financial Progress
WEP-1
The Contractors Achieved v/s Planned cash flows for this Quarter are summarized in the table below.
Table 22: Financial Progress, WEP-1
Month
July
August
September
Total
Planned,
US$ million
Achieved,
US$ million
Planned
Achieved
0.68
0.84
0.85
2.37
0.55
0.44
0.14
1.13
3.10%
3.87%
3.91%
10.87%
2.50%
2.03%
0.66%
5.19%
WEP-2A
Page 44 of 72
PIU-KSHIP
The Contractors Achieved v/s planned cash flows for this Quarter are summarized in the table below.
Table 23: Financial Progress, WEP-2A
Month
Planned,
US$ million
Achieved,
US$ million
Planned
Achieved
July
August
September
Total
0.09
0.03
0.04
0.16
0.04
0.07
0.07
0.18
0.44%
0.16%
0.17%
0.78%
0.22%
0.32%
0.35%
0.89%
WEP-3
Month
July
August
September
Total
Planned,
US$ million
0.68
0.69
1.00
2.37
Achieved,
US$ million
0.26
0.15
0.07
0.48
Planned
3.82%
3.85%
5.58%
13.25%
Achieved
1.47%
0.82%
0.40%
2.69%
Page 45 of 72
PIU-KSHIP
WEP-4
Month
July
August
September
Total
Planned,
US$ million
1.19
1.02
0.96
3.18
Achieved,
US$ million
0.74
1.08
0.78
2.61
Planned
3.33%
2.87%
2.70%
8.90%
Achieved
2.07%
3.04%
2.19%
7.30%
WEP-5
The Contractors Achieved v/s planned cash flows for this Quarter are summarized in the table below.
Table 26: Financial Progress-WEP-5
Page 46 of 72
PIU-KSHIP
Month
July
August
September
Total
Planned,
US$ million
0.38
0.36
0.79
1.53
Achieved,
US$ million
0.16
0.26
0.18
0.60
Planned
2.79%
2.65%
5.75%
11.19%
Achieved
1.17%
1.88%
1.30%
4.35%
Page 47 of 72
PIU-KSHIP
6.
PAYMENT AND DISBURSEMENT PROGRESS
The summary of Package-wise payment and disbursement progress is given in the table below.
Table 27: Payment and Disbursement Progress
WEP-5
CSC-I
Upgradation
of the Road
from
Chowdapur to
Gulbarga
Construction
Supervision
Consultancy
Services(CSCI)
Works
Services
ICB
ICB
ICB
16.57
31.54
12.08
4.29
0.80%
0.80%
0.80%
0.80%
2013
July
Works
ICB
0.80%
2012
Apr
Upgradation
of the Road
from Tinthini
to Kalmala
Works
21.75
0.80%
2011
Payments
Jan
WEP-4
Upgradation
of the Road
from Dharwad
to Saundatti
ICB
20.56
0.80%
Cumulative Payments (Planned/Actual) (%) and Bank's Cumulative Disbursements (%)
Oct
WEP-3
Works
ICB
19.28
Bank
Financing
Ratio (%)
Jul
WEP-2B
Upgradation
of the Road
from Hangal
to Tadas
Works
ICB
Contract
Price
(Million
US$)
Apr
WEP-2A
Upgradation
of the Road
from Haveri
(NH-4) to
Hangal
Works
Proc.
Method
Jan
WEP-1
Upgradation
of the Road
from Hoskote
to Chintamani
Category
1/
Oct
Contract
Description
Jul
Component
Contr.
No
Planned
12.92%
11.12%
20.22%
19.51%
68.79%
54.64%
Actual
5.00%
5.00%
7.20%
11.80%
19.70%
28.70%
40.79%
48.56%
48.56%
Disbursed
4.00%
4.00%
5.80%
9.40%
14.80%
21.20%
25.33%
33.32%
38.85%
Planned
13.59%
1.59%
Actual
5.00%
5.00%
Disbursed
4.00%
4.00%
Planned
Actual
Disbursed
Planned
28.2
8.61
13.64
21.44
100%
40.40%
Actual
5.00%
5.00%
5.00%
6.80%
9.60%
11.90%
24.25%
27.63%
27.63%
Disbursed
4.00%
4.00%
4.00%
5.40%
7.40%
9.00%
12.24%
20.62%
22.10%
Planned
10.76
8.74
12.61
14.04
47.73%
55.41%
Actual
5.00%
5.00%
12.20%
15.30%
21.10%
27.90%
39.78%
48.72%
48.72%
Disbursed
4.00%
4.00%
4.00%
12.20%
16.40%
21.40%
27.71%
35.09%
38.98%
Planned
33.85
18.12
26.35
17.24
100%
78%
Actual
10.00%
10.00%
26.30%
31.60%
47.10%
57.10%
70.00%
72.54%
72.55%
Disbursed
8.00%
8.00%
16.00%
25.30%
36.40%
43.80%
45.47%
55.21%
58.04%
Planned
Actual
0.00%
16.30%
31.20%
36.00%
44.00%
51.00%
70.00%
78.54%
78.54%
Disbursed
0.00%
13.00%
13.00%
28.80%
35.20%
40.80%
49.49%
62.83%
62.83%
Page 48 of 72
PIU-KSHIP
The summary statement of receipts and payments, and the Projects overall disbursement progress are
given in the tables below.
Table 28: Statement of Receipts and Payments
Statement of Receipts and Payments
(In US$ Million)

Quarter
Last
This
Quarter
Quarter
ITEMS
Cumulative
Last
This
Quarter
Quarter
RECEIPTS
IBRD Funds
0.000
4.542
43.769
48.311
Government Funds
7.078
2.834
44.699
47.533
7.078
7.376
88.468
95.844
6.013
6.196
77.077
0.000
Road Sector Policy & Institutional Development
0.108
0.059
1.005
1.064
Incremental Operating Costs
0.090
0.162
1.164
1.327
Advances
0.000
0.958
8.354
9.312
6.210
7.376
87.600
11.703
TOTAL RECEIPTS
PAYMENTS
Road Improvement Component
Highway Financing Modernization
Road Safety Component
TOTAL PAYMENTS
Table 29: Projects Overall Disbursement Progress

Bank's Cumulative Disbursement (Million US$)
Aspect
2011
Jan
Planned
Actual
2012
2013
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
10
19
28
36
45
58
71
84
97
167
10
17
20
23
23
27
33.67
38.20
41.51
Oct
Page 49 of 72
PIU-KSHIP
7.
7.1
SOCIAL, RESETTLEMENT & REHABILITATION

Summary of Resettlement and Rehabilitation Activities
The summary of resettlement and rehabilitation activities is given in the table below.
Table 30: Resettlement and Rehabilitation Activities for WEP Packages.
a) Non-Title Holders
Sl
No
Type of R&R Assistance
Target per
RIP
Revised
Target
Progress
Remarks
ID card issued
292
313
313 (100)
Allotment of house plots
24
30
30 (100)
8 PAPs had their own sites.
Construction grant for houses
24
30
30 (100)
8 PAPs had their own sites and the

remaining 22 PAPs provided sites. All
have completed construction of their
houses.
Subsidence allowance paid
197
200
200 (100)
Shifting allowance paid
197
200
200 (100)
IGA Support Provided

Replacement cost for
Encroachers
Shifting of CPRs
169
170
170 (100)
97
113
113 (100)
441
443
382 (86.43)
The NGO reported that Government

pension has been sanctioned to them.
Details have been sought from the
NGO.
7
8
9
Assistance to vulnerable
provided
41
Still awaited
from NGO
10
No. of PAPs received all benefits
292
313
313 (100)
Note: The figure in brackets indicates the percentage progress

b) Title Holders
Sl
No
Target per
RIP
Revised
Target
Progress
Remarks
On Re-verification, revised target
comes to 823 Khathedars only
ID card issued
818
823
26 (3.15)
16
14
16
16
2(12.50)
14
14
No Progress
14
14
No Progress
Compensation offered
818
823
823 (100)
Compensation Paid
818
823
817 (99)
818
823
817 (99)
Note: The figure in brackets indicates the percentage progress
Page 50 of 72
PIU-KSHIP
Table 31: Resettlement and Rehabilitation Activities for WAP Packages.

a) Non-Title Holders
Sl
No
ID card issued
Target per
RIP
Revised
Target
Progress
(Numbers)
Percentage
Progress
1500
844
519
61.49
49
61
4.91
49
50
524
563
397
70.51
5
6

IGA Support Provided
Replacement cost paid for
Encroachers
Tenants
Shifting of CPRs
Number of PAPs received all
benefits
524
476
563
502
397
83
70.51
16.53
152
253
54
21.34
5
1230
5
1169
0
981
0
83.92
1501
820
137
16.70
7
8
9
10
Remarks
In WAP-3 package JV was
conducted in respect of
squatters. Revised target
may vary on completion of
final JV.
NGO reports 11 PAPs have
their own Sites. Records
are awaited. Location of
sites for others is in
progress.
Released to the Executive
Engineer vide Office order
dated 3-11-2012 with
instruction to release them
to PAPs in installments
based on construction
progress.
b) Title Holders
Sl
No
1
2
3
4
5
6
7
8

ID card issued
Subsistence allowance paid
Construction grant paid
Compensation offered
Compensation Paid
Target
per RIP
3179
0
0
0
0
3179
3179
3179
TITLE HOLDERS
Revised
Progress
Target
(Numbers)
2903
0
0
0
0
0
0
3
0
0
2903
33
2903
15
2903
15
Percentage
Progress
0
0
0
0
0
1.00
0.51
0.51
Remarks
Page 51 of 72
PIU-KSHIP
7.2
Resettlement Complaints
As noted in the table below, no resettlement complaints have been received to date.
Table 32: Resettlement Complaints
7.3
HIV/AIDS Education Monitoring
The Karnataka State Aids Prevention Society has been appointed for creation of awareness on HIV and
AIDS among the road users in the project roads more particularly to the workers engaged in the road
works. An agreement has already been signed. The duration for implementation of this programme is
one year. During the first half of the contract period, the project roads under EPC packages will be
covered and in the second half the roads under annuity packages will be covered.
In each of the WEP Contract packages the Contractor has been advised by CSC to conduct awareness
program at their construction camp site with co-ordination of adjacent village Panchayat among the
workers and villagers through experienced service providers. The Contractors action taken report on
awareness programme at each project site will forward on receipt.
Table 33: HIV-AIDS Campaigns at WEP Packages
Contract
Package
Link ID
Description of Link
Contractors Name
Details awareness
programme held.
Date
67A
Hoskote - H Cross
(Hindgnala Cross)
67B
H Cross - Chinatmani
Bypass (Corridor 65F
Junction)
WEP2A
T8
Haveri-Hangal
M/s DRN
Infrastructure
WEP 3
21B
Dharwad - Saundatti
M/s RVCPL RIDL

(JV).
Tinthni - Chinchodi Jalhalli - Karegud Devadurga

Devadurga - Masarkal Gabbur - Kalmala
M/s Patel Engineering

Pvt. Ltd.
Chowdapur - Gulbarga
M/s SRK KCL (JV)
WEP 1
13A
WEP 4
13B
WEP 5
6C
Persondays
Tentative
Date for
next
Awareness
Programme
M/s Lanco Infratech

Pvt. Ltd.
No HIV-AIDS
awareness program
conducted in this
quarter.
Page 52 of 72
PIU-KSHIP
8.
COVENANTS
8.1
Loan Covenants
The summary of covenants is given in the tables below.

Table 34: Loan Covenants
Description
Establish and maintain until completion of the Project, an
audit committee to review reports of said external and
internal auditors.
Appoint and thereafter maintain, until completion of the
project, an external auditor for KRDCL
Appoint an internal auditor for the Project in accordance
with terms of reference acceptable to the Bank.
Appoint, and thereafter maintain until completion of the
Project, finance staff with qualifications acceptable to the
Bank employed in accordance with the staffing plan
agreed upon between Karnataka and the Bank.
Prepare and furnish to the Bank not later than forty five
(45) days after the end of each calendar quarter, interim
unaudited financial reports for their Respective Parts of the
Project covering the quarter, in form and substance
satisfactory to the Bank.
Have their financial statements audited by independent
auditors acceptable to the Bank, all in accordance with
consistently applied auditing standards acceptable to the
Bank. Each audit of these financial statements shall cover
the period of one (1) Fiscal Year of the Borrower. The
audited financial statements for each period shall be
furnished to the Borrower and the Bank not later than six
(6) months after the end of such period.
Implement the Financial Management Manual
Maintain a financial management system and prepare
financial statements in accordance with consistently
applied accounting standards acceptable to the Bank, both
in a manner adequate to reflect the operations, resources
and expenditure.
Timeline
Status
30-Sep-11
complied
19-Nov-11
AG has agreed to take up

external Audit of KRDCL
project accounts.
19-Nov-11
complied
19-Nov-11
complied
Quarterly
from
Effectiveness
Complied. The latest IUFR

sent to Bank is for the QE
30th September 2013.
Annually
Complied.
AG
has
completed the audit of
project
financial
statements for the FY
2012-13 and issued the
audit report dated 30-082013. The same has been
submitted to GOI and to
WB on 7th Sept.2013 (ie
within the due date)
complied
As agreed with the Bank
computerized
accounts
have been maintained in
Tally accounting software
acceptable to the Bank.
Page 53 of 72
PIU-KSHIP
8.2
Legal Covenants
The summary of covenants is given in the tables below.

Table 35: Legal Covenants
Description
Meet all annuity payments to fall due under annuity concession
agreements in a timely manner in accordance with the terms of said
agreements.
Timeline
Status
31-Dec-14
Not Due
Yet
Commence undertaking comprehensive road safety interventions in the

identified safe corridor demonstration program.
1-Apr-12
Received
NOC from
Bank.
Agreement
expected to
be signed in
the month
of October
2013.
On an annual basis throughout the duration of the Project, to

develop a consolidated investment and borrowing plan to improve
selected corridors under the Core Road Network commencing
December 31, 2013, and thereafter implement such plan taking into
account the Bank's comments thereon
31-Dec-14
Not Due
Yet
1-Dec-14
Not Due
Yet
From
Effectiveness
Complied
Establish and Maintain Project Steering Committee to From Complied

be responsible for the overall coordination and Effectiveness oversight
of implementation of the Project.
From
Effectiveness
Complied
Establish and Maintain District-level Grievance Redressal

Committee to deal with grievances related From Effectiveness Partial
Complied to or arising out of the RAP.
From
Effectiveness
Partial
Complied
Establish and maintain Traffic and Road Safety Cell From Not
Complied at TD for effective implementation of Part C of the Project
From
Effectiveness
Not
Complied
30-Sep-11
Complied
19-Nov-11
Complied
19-Nov-11
Complied
Appoint, and thereafter maintain until completion of the Project,

finance staff with qualifications acceptable to the Bank
employed in accordance with the staffing plan agreed upon
between Karnataka and the Bank.
19-Nov-11
Complied
Designate and thereafter maintain a Project Coordinator for KRDCL
19-Nov-11
Fully operationalize its road asset management system to

provide inputs to prioritize its road investment and
management program.
Establish and Maintain a Project Governing Board to From Complied
be responsible for interdepartmental coordination and Effectiveness
policy matters.
Establish and maintain until completion of the Project, an

audit committee to review reports of said external and internal
auditors.
Appoint and thereafter maintain, until completion of the Project, an
external auditor for KRDCL.
Appoint an internal auditor for the Project
with terms of reference acceptable to the Bank.
in accordance
Page 54 of 72
PIU-KSHIP
Description
Timeline
Status
Maintain the Project Implementation Unit (PIU) responsible for

implementing PWD's Respective Parts of the project.
From
Effective
Partially
Complied
EMP and RAPs are prepared to mitigate impacts prior from issue of
RPF for works under the project prior to effective issuance of any
request for proposals under the Project, social and environmental
screening reports, environmental management plans, and
resettlement action plans, for mitigation of any environmental and
social impacts under the Project, shall have been prepared based on
said screening report findings and in accordance with the policies and
principles of the Resettlement Policy Framework and found acceptable
to the Bank
From
Effectiveness
Partially
Complied
All land acquisition and resettlement and from

rehabilitation-related impacts shall have been Effective
satisfactorily addressed along such stretches, all in accordance with
the RAP and resettlement action plans including payment of
compensation for loss of Land and other assets, and other
assistance to Displaced Persons.
From
Effectiveness
Partially
Complied
Carry out a mid-term impact study by June 30, 2013, June 30, and
another study within one hundred and twenty 2013 (120) days
following the completion of the implementation of the RAP and
resettlement action plans in accordance with terms of reference
satisfactory to the Bank, to assess the impact of the implementation of
said RAP and resettlement action plans on changes in the living
standard of Displaced Persons, and discuss the results of each such
study with the Bank promptly after its completion and, taking into
account the recommendations of the Bank, take appropriate measures
30-Jun-13
It has been
Taken up
and report
is awaited
shortly
Monitor and evaluate the progress and prepare Project Quarterly

Reports which shall cover the period of one (I) from calendar
quarter, and shall be furnished to the Bank not later than forty-five
(45) days after the end of the period covered by such report.
Quarterly
from
Effectiveness
Being
Complied
Prepare and furnish to the Bank not later than forty- Quarterly five
(45) days after the end of each calendar quarter, from interim
unaudited financial reports for their Effectiveness Respective
Parts of the Project covering the quarter, in form and substance
Quarterly
from
Effectiveness
Being
Complied
Have their financial statements audited by Annually

independent auditors acceptable to the Bank, all in accordance with
consistently applied auditing standards acceptable to the Bank.
Each audit of these financial statements shall cover the period of one
(1) Fiscal Year of the Borrower. The audited financial statements
for each period shall be furnished to the Borrower and the Bank
not later than six (6) months after the end of such period.
Annually
Complied
Implement the Financial Management Manual
Complied
Page 55 of 72
PIU-KSHIP
Table 36: Right to Information Act

Status as at end of Quarter: 1st July 2013 to 30th September 2013
No of
No .of
No. of
Land
Bidding
application application application
acquisition
Process
Received
disposed
pending
17
16
ROW
Details
Quality of
the Work
General
16
The details are attached in Appendix-D.

Table 37: Complaint Management Cell (CMC) Cases for the Year 2013(July to Sept 2013)
Month/ Year
29/7/2013
12/8/2013
Road link.
Name of the
petitioner
with
address
Name of the
petitioner
date and
subject
Action and
date of reply
sent to the
petitioner
(With file
No.)
Reply furnish from which section

in KSHIP
13A&B
Mr. V
Sharbappa,
Amarapur,
TalukDevdurga,
DistrictRaichur
Poor Quality
Construction
of Bus
Shelter and
Bridges
Reply is
awaited from
PIU KSHIP
Reply is awaited from PIU KSHIP
21B
Mr. Pralhad
Joshi,
Member of
Parliament
Loksabha
Dharwad
Poor Quality
Construction
of State
Highway
road from
Dharwad to
Savadatti of
SH-34.
Reply is
awaited from
PIU KSHIP
Reply Awaited from PIU KSHIP
Page 56 of 72
PIU-KSHIP
9.
9.1
SUMMARY OF PROCUREMENT PACKAGES

Procurement Plans for Works, Goods, and Services
A summary of all the procurement packages is given in the table below.

Table 38: Summary of Procurement Packages
Contract Phase
Category
Works
Contracts
Completed
prior to the
reporting period
Goods
Services
Description
EPC Packages
Supply of IT
Equipment,
office
equipment and
Supply of
almirah
-
Sub-total
Contracts
Under Process
Works
Goods
Services
Annuity
Packages
-
Sub-total
Contracts not
yet awarded
Sub-total
Total
Works
Goods
Services
Estimated
Value
(INR
Million)
6579.0
147.0
Contracted
Value
(INR
Million)
5953.2
4.0
0.1
19
27
735.8
7318.8
16.3
163.4
523.7
6476.9
11.6
143.9
15491.0
344.0
8
12
642.30
16133.3
14.28
358.28
7
23
30
69
152.1
460.15
612.25
24064.35
3.4
10.39
13.79
535.47
0
6476.9
0
143.9
No of
Contracts
Estimated
Value
($US)
Contracted
Value
($US)
132.3
Details of the procurement plans for Works, Goods, and Services are given in Appendices A, B and C
respectively.
The WB-EPC works packages were procured in 2010-2011 and implementation is ongoing. The next
major works procurement activity will be the WB-Annuity packages to be re-procured under EPC.
The CSC services for WB-EPC have been in place since April 2011. In line with the above-noted reprocurement of Annuity packages under EPC, a fresh EOI for Construction Supervision Consultancy for
these EPC packages will be prepared.
Page 57 of 72
PIU-KSHIP
10.
ENVIRONMENTAL MANAGEMENT ACTIVITIES
10.1 Clearances and Compliance

Environmental Clearances
All environmental clearances for the WB-EPC and Annuity road packages as noted below have been
obtained by PIU-KSHIP.
Table 39: Environmental Clearances
Sl
No.
Pkg No
WEP-1
WEP-2
WEP-3
WEP-4
WEP-5
State Environmental Impact Assessment

Authority (GOK)/ Environmental Appraisal
Committee, MOEF, GOI Clearances State
Environmental Impact Assessment
Authority (GOK) Clearances
No:SEIAA:80:IND:2008
dt:18/11/2008
dt:18/11/2008
No:SEIAA:7:IND:2009
dt:01/10/2009
dt:18/11/2008
No:SEIAA:7:IND:2009
dt:01/10/2009
dt:18/11/2008
Ministry of
Environment &
Forests(Govt.of
India) Clearance
Not required
Not required
Not required
Not required
Not required
Karnataka State Pollution

Control Board Clearance
No:PCB/439/CFE/08/H551
dt:22/07/2008
dt:22/07/2008
No:PCB/05/CNP/09/558
dt:29/01/2010
dt:22/07/2008
dt:22/07/2008
dt:22/07/2008
Remarks
Completed
Completed
Completed
Completed
Completed
Annuity
1
WAP-1
WAP-2
WAP-3
WAP-4
dt:18/11/2008
No:5-13/2008-IA-III, GOI, MOEF, New
Delhi dt:13/01/2009
dt:18/11/2008
No:SEIAA:7:IND:2009
dt:01/10/2009
No:SEIAA:7:IND:2009
dt:01/10/2009
No:5-6/20098-IA-III, GOI, MOEF, New
Delhi dt:22/01/2010
No:SEIAA:7:IND:2009
dt:01/10/2009
Not required
dt:22/07/2008
Completed
Not required
dt:22/07/2008
Completed
Not required
Not required
No:PCB/05/CNP/09/558
dt:29/01/2010
dt:22/07/2008
dt:22/07/2008
Completed
Completed
Statutory Compliance
All Six (6) WB-EPC packages (Note: WEP-2 package is terminated) were inspected during the period 1 st
July 2013 to 30th September 2013. The statutory compliance status is given in the table below.
Page 58 of 72
PIU-KSHIP
Table 40: Statutory Compliance Status

Quarry CFO
Details of Crusher
Consent for Execution (CFE)
Package No
WEP-1
WEP-2A
Applied Date
13/4/2012
NA
Approval Date
from Mines &
Geology Dept
No of
Crushers
Applied Date
Approval Date
from DC
Hot Mix Plant CFE/CFO

Consent for Operation (CFO)
Applied Date
Applied Date
Approval Date
(KSPCB
Permission)
1/3/2012
17/11/2012
18/7/2013
CFO awaited
8/4/2013
13/12/2011
24/5/2013
16/2/2013
Approval Date
(KSPCB
Permission)
14/8/2012
Crusher-1
7-Apr-12
Permission
awaited. KSHIP is
pursuing with DC
Bangalore
18/3/2013
Crusher-1
Crusher-1
8/4/2013
12/12/2011
24/5/2013
16/2/2013
Crusher-2
9/5/2012
16/2/2013
16/9/2013
CFO awaited
9/5/2013
16/2/2013
Not Applied
31/5/2013
16/9/2013
CFE awaited
WEP-3
24/10/2011
05/03/2012
WEP-4
17/9/2011
14/3/2012
Crusher -1
03/10/2011
16/3/2012
19/6/2012
12/2/2013
5/11/2011
9/6/2012
CFE-16/3/2012
CFO-12/2/2013
WEP-5
15/4/2011
31/5/2011
Crusher -1
24/01/2012
16/4/2012
24/01/2012
16/4/2012
24/01/2012
16/4/2012
In WEP-1 package for crushers CFE pending from DC (KRSC) , Bangalore meanwhile KSPCB has visited the site and issued SHOW CAUSE NOTICE to the
Contractor for operating crushers without CONSENTS. In WEP-2A package KSPCB granted CFE and CFO for crusher establishment and operation (NO
ISSUE). In WEP-3 CFE/CFO for both crushers from KSPCB granted to establishment and operate (Separate CFO applied on 19/9/2013 with fee). Crisher-3
(RIDL) plant relocated. In WEP-4 CFO for crusher and HMP is granted by KSPCB renewed up to dated 18/06/2014 and WEP-5 total required BOQ quantity
crushed, Contractor has been instructed for submission of planning of crusher.
Page 59 of 72
PIU-KSHIP
10.2 EMP Compliance

Enhancement of Water Bodies
Administrative approval for estimates of following four water bodies are approved and awarded. The
work is in progress and the status is given in the table below.
Table 41: Status of Water Bodies
Package
No
Link no
Name of
Lake/Village
WEP-1
67B: Hindgnala
Cross - Chinatmani
Bypass
irrigation tank
/Chinthamani
WEP-2
M7D
Lake/Hosur village
WEP-3
21B:Dharwad Saundatti
lake/ Aminbhavi
WEP-4
13B:-Devadurga Kalmala
Chainage
10+600
Benchi/Gabbur
Estimated
Cost US$
million
0.111
0.084
2+100
(RHS)
28+600
Total
Progress
75% of the work is completed.
Balance work was held up due to
dispute over a portion of lake land.
A modified estimate is prepared to
complete the work leaving dispute
land with the consent from Zilla
Panchayat before 31st Dec. 2013
De-silting work was suspended due
to monsoon. The tank is now full
with water and used for irrigating
the fields. Work will be resumed as
soon as the water level in the tank
is subsided and expected to be
completed before 30th April 2014.
0.197
Works completed in June 2013.
0.007
30 % of the work is completed.

Neighboring farmers have
demanded to demarcate the lake
boundary by joint survey. Local
Tahsildar is requested to fix the
boundary. Works expected to be
completed by 30th April 2014.
0.399
Construction of Noise Barrier

The construction of solid noise barriers are completed along project roads covering sensitive locations
such as government schools/colleges/hospitals/offices in all the WB-EPC& Annuity packages.
Independent Environment Monitoring (Pollution)
M/s. Deccan Consulting Engineers Private Limited, New Delhi has been appointed by KSHIP as a
independent Environmental Monitoring consultants. They have completed 1 st quarter monitoring of the
year 2013 during June-July 2013 and reported as generally satisfactory.
Forest Land Diversion
The status of forest land diversion is given in the table below.
Page 60 of 72
PIU-KSHIP
Table 42: Details of Forest Land Diversion

Package
WEP1
WEP2A
Link No
67A
T8
Name of link
Hoskote - Hindignal cross
Haveri(NH4)-Hanagal
Extent(Ha)
Status
0.24
Stage-2
MOEF
Cleared
by
0.13
Stage-2
MOEF
Cleared
by
Stage 1
MOEF
WEP2B
M7D
Hanagal Tadasa
Remarks
cleared
by
T21
Shikaripua-Anandpuram
4.106
M7A
Shimoga-Shikaripura
4.678
M7B
Shikaripura-Anavatti
0.6786
Stage 1
MOEF
Anavatti-Hangal
0.141
Cleared
GOK is expected to
submit the stage-2
proposal to MOEF by
15th December 2013.
Cleared
MOEF expected to
clear stage 2 proposals
by 31st March 2014.
by
Stage 2 Compliance to
conditions of stage I is
under process.
Stage 1
MOEF
M7C
Forest Land taken over

and handed over to the
contractor for road
construction.
0.6
Stage-2 proposal with the
State Government
WAP3
Forest Land taken over

and handed over to the
contractor for road
construction.
Expected to be cleared
by 15th Jan 2014.
by
Stage 2 Proposal is under

review at MOEF.
Expected to be cleared
by 25th Feb 2014
Tree Cutting Status

The status of Tree cutting for EPC and Annuity packages are given below:
Page 61 of 72
PIU-KSHIP
Table 43: Tree Cutting Status of EPC Package

Sl
No.
Link No.
Name of Link
Length in
Km
67A
Hoskote-Hindgnala Cross
23.5
67B
Hindgnala Cross-Chinatmani
Bypass
34
T8
Haveri (NH.4)-Hangal
31.8
M7D
Hangal-Tadasa
43.5
5
6
7
8
21B
13A
13B
6C
Dharwad-Saundatti
Thinthini-Devadurga
Devadurga-Kalmala
Chowdapur-Gulbarga
Total
38.53
32.45
41.35
28.67
268.8
No of Trees No of Trees
Marked
Cut
Pkg No
WEP1
WEP-2
WEP-3
WEP-4
WEP-5
Balance no of
Trees to be
Cut
Remarks
1934
1934
4014
4014
2065
2053
10
2502
2498
416
1231
1332
2695
16189
400
1231
1332
2695
16157
16
30
WAP-4
WAP-3
WAP-2
No of Trees
Marked
Total No, of
Trees Cut
Balance
Saved Trees
Remarks
63A
(NH209) Malavalli Maddur
22.8
777
407
153
217
Work will be completed by

30th April 2014
63B
Maddur - Huliyurdurga
27.53
1441
490
377
574

31st August 2014
63C
Huliyurdurga - Kunigai
21.11
2245
1234
1011

31st August 2014
63D
Kunigal - Tumkur (NH206)
35.19
1643
531
1112

31st August 2014
63E
Tumkur - Koratagere
27.9
586
285
206
95

31st August 2014
64F
Koratagere - Madhugiri
20.03
461
260
201

30 April 2014
64G
Madliugin - Pavaaada
35.79
1249
1094
155

30 April 2014
Name of
Link
Link No.
Length in
Km
WAP-1
Pkg No
Table 44: Tree Cutting Status of Annuity Package
I9A
Mudhol - Mahalingapura
19.17
1248
1248
19B
N'lahalingapura - Kabbur
42.35
2175
2164
11
19C
Kabbur - Chikkodi
18.41
752
748
19D
Clirkkodi - Nippani (NH4)
23.97
972
972
T21
Shikaripura - Anandapuram
(NH206)
32.24
1984
1904
80
M7A
Shimoga - Shikaripura
49.8
1500
1212
288
M7B
Shikaripura - Anvatti
45.29
2585
2503
82
M7C
Anvatti - Hangal
26.22
925
909
16
61.31
4027
3927
100
48.66
1965
1680
285
557.77
26535
19803
3708
3024
10A
10B
Managuli - Basavana
Bagewadi -Talikota
Talikoia - Hunasagi
Devapur
Total

31st May 2014

31st May 2014
Pollution Monitoring
Page 62 of 72
PIU-KSHIP
For each of the Contract Packages, monitoring of Ambient Air Quality, Water Quality, Noise Quality and
Soil Quality has been carried out as per the EMP. The Contractors last quarter Environment Pollution
Monitoring Status shown below.
Table 45: Environment Pollution Monitoring Status
Number of Locations where Samples were Collected
Package
Ref
Air Quality
Water Quality
Noise Quality
Soil Quality
WEP-1
WEP-2A
WEP-3
NIL
Remarks
WEP-4
Satisfactory Results reported.

Results received. Necessary
advise issued to Contractor
Results received. Necessary
advise issued to Contractor
Satisfactory Results reported.
WEP-5
NIL
NIL
NIL
NIL
Pollution monitoring not done
Borrow Area Management

The Borrow Area status with respect to environmental management plan for embankment / sub-grade
construction of each project is as shown in the table below.
Yet to be started
Qty Balance for use
16
NIL
WEP-2A
NIL
NIL
NIL
NIL
NIL
WEP-3
37
19
NIL
WEP-4
35
30
16
10
13
WEP-5
20
20
14
NIL
WEP-1
Rehabilitated
Ongoing
32
Contract
Package
Total No. of Borrow

Areas Identified
No. of
Borrow
Areas
approved
w.r.t. EMP
Exhausted
No. of Borrow Areas
Balance for
Rehabilitation
Table 46: Borrow Areas of the Contractors
Construction Material Management

The contractors for six packages WEP-1, WEP-2A, WEP-2B, WEP-3, and WEP-4 & WEP-5 (excluding
the terminated WEP-2 package) are procuring the construction materials from their own or pre-existing
quarries only after paying the applicable royalties and getting necessary consent/permission of the
Department of Mines & Geology and District Administration.
Page 63 of 72
PIU-KSHIP
Table 47: Crushers/Quarry Production
Package
WEP-1
WEP-2
WEP-2A
WEP-3
WEP-4
WEP-5
Link No &
Crusher Capacity
67B, 200TPH
M7D, 120TPH
T8
21B, 200 TPH
21B, 120 TPH
21B, 120 TPH
13B, 250TPH
13B, 250TPH
6C, 200TPH
Quantity
extracted upto
Total Qty.
end of
required, (Tonne)
previous
month,
(Tonne)
776,849
546,047
Contract terminated
460
Balance
quantity
remaining,
(Tonne)
230,443
-
5,99,508
323716.87
275791.13
1,111,000
676546.64
434,453
425,213
398500
26713
Debris Disposal
The Debris Disposal Plan, with respect to Environment Management Plan, in each of the projects is
implemented by the Contractor using identified disposal sites. The surplus material, after all in-situ
applications, is disposed suitably for filling used borrow areas and other low lying areas.
Other debris generated from dismantling the existing road is stocked on site at locations shown by the
Employer for suitable future reuse, subject to the suitability of the materials and necessary approval and
further instruction of the Employer.
Prior permission Form
Application seeking prior permission from Architectural Survey of India (ASI) in link M7B and M7C are
forwarded to National Monument Authority, New Delhi, with recommendations by the Department of
Kannada and Culture, GOK. The NMA has cleared application pertaining to link M7B. M7C permission
is awaited. NMA is reminded on this issue.
Re-use of Scarified bitumen
A project on pilot basis has been undertaken in WEP-1 for the recycling of scarified materials to
resurface neighboring PWD road for a length of about 500 meters. The work is under progress and is
expected to be completed by 15 th December 2013. The findings will be shared with the WB for taking
further action in the matter.
ISO 14001 service for operationalising in KPWD
M/s.Allied Boston India Pvt.Ltd. New Delhi consultants engaged by KSHIP for operatinalising ISO
14001 in 14 offices of KPWD have completed task 3 including training for KPWD officers on
compliance of EMS and ISO 14001 requirement for auditing from 28-30 October 2013 in Bangalore. The
balance two tasks will be completed by 30th May 2014.
KSHIP has initiated procurement of third party auditing agency for accreditation support to fourteen
offices of KPWD. In this regard TOR has been approved by the World Bank. Request for EOI is
published and it is expected to complete the hiring process by 30 th March 2014.
Page 64 of 72
PIU-KSHIP
11.
PERFORMANCE MONITORING INDICATORS
The Project Monitoring will be reported when due, as per the following tables.
Table 48: Project Development Objectives Monitoring
Outcome
Indicators
for Each
Component
Achievement
by GOK in
generating
at
least US$500
million in new
private sector
capital
(debt
and equity) for
CRN
improvement
and
management by
end-of-project
(EOP).
Share of Core
Road Network
in
good
condition (IRI <
4)
increases
from 50 percent
to 65 percent by
EOP.
Uni
t of
Me
asu
re
US$
mill
ion
Km
(%)
Baseline
Year
200.00
(Currentl
y raised
by
KRDCL
)
50%
YR 1
6/ 2011
YR 2
6/
2012
YR 3
6/2013
200
(KRDCLK
SHIP II)
50%
YR 4
6/2014
YR 5
6/ 2015
500 (KRDCL
+ KSHIP II)
65%
Frequency
and
Reports
Every two
years
Every two
years
Data Collection and Reporting

Respon
Data
sibility
Description
Collecti
for
(indicator
on
Data
definition
Instru
Collecti
etc.)
ments
on
PWD
Annual
Report,
KRDCL
Annual
Report
Asset
Manage
ment
Unit
PWD,
KRDCL
PWD
Status to end of
October, 2013
The indicator
will measure
private sector
debt and equity
raised as part of
the DBFOMT
concession and
by KRDCL as
part of the cofinancing, and
by KRDCL on
its own through
parallel
transactions.
KRDCL has identified 452

kms
of
SH
for
improvement
under
Highway
Co-financing
component of KSHIP-2.
Will measure
expansion of
road quality and
expansion in the
state
Out of 269 kms taken up

under WB EPC mode, BC
has been laid for a length
of 114.33 kms with IRI<
2000. Under ADB
contracts a length of 50
kms completed. Further
under SHDP a road length
of about 2000 kms taken
up for improvement of
which the IRI is yet to
collect.
Page 65 of 72
PIU-KSHIP
Outcome
Indicators
for Each
Component
Uni
t of
Me
asu
re
Baseline
Year
15
percent
reduction
in
Vehicle
Operating Costs
and 25 percent
reduction
in
Travel
Time
Cost on project
corridors
by
EOP
US$
per
vehi
cleKm
s
VOC:
US$0.26
TT:
US$0.07
4
30
percent
reduction
in
road-accident
related fatalities
on safe corridor
pilots by EOP.
Nu
mbe
r of
fatal
ities
per
year
30 (on
Belgaum
to
Yeragatti
&
Maddur
to
Mysore
corridor)
*
YR 1
6/ 2011
YR 2
6/
2012
YR 3
6/2013
YR 4
6/2014
YR 5
6/ 2015
VOC:
US$0.20
TT:US$0.06
30
27
21
Frequency
and
Reports
When the
road
construction
is completed
Every two
years

Respon
Data
sibility
Description
Collecti
for
(indicator
on
Data
definition
Instru
Collecti
etc.)
ments
on
Asset
Manage
ment
Unit
M&E
Report
on safe
corridors
pilot
PWD
PWD
Will measure
the impact of the
project on road
users
Will measure
ability of the
project to show
measureable
results on road
safety
Status to end of
October, 2013
Out of 269 kms taken up

under WB EPC mode, BC
has been laid for a length
of 114.33 kms with IRI<
2000. Under ADB
contracts a length of 50
kms completed. Travel
time reduction will be
evaluated at EOP.
DPR for SH-20 (YaragattiBelgaum), agreement
signed in the month of 17th
Oct 2013. It is expected to
be issued tender
notification by December2013 for SH-20 project
(Belgaum to Yaragatti
section).
Intermediate Results
Component-1: Road Improvement Component
Completion of
upgrading and
widening
of
about 269 km.
through item
rate contracts
Km /
Proc
urem
ent
mile
ston
es.
Contracts
awarded
100 kms
road
construc
tion
substanti
ally
complet
ed
269 km road
construction
completed
Project
Progress
Report
Every Year
PWD
The road works

are in various
stages. To end of
Dec, 2012 45 kms
have been
completed up to
BC level.
The road works are in

various stages. 114.33
kms have been completed
up to BC level.
Page 66 of 72
PIU-KSHIP
Outcome
Indicators
for Each
Component
Completion of
upgrading,
widening
of
about 562 km.
through
DBFOMT
(Annuity)
Concessions
Uni
t of
Me
asu
re
Km./
Proc
urem
ent
mile
ston
es
Baseline
Year
YR 1
6/ 2011
YR 2
6/
2012
YR 3
6/2013
YR 4
6/2014
YR 5
6/ 2015
Frequency
and
Reports

Respon
Data
sibility
Description
Collecti
for
(indicator
on
Data
definition
Instru
Collecti
etc.)
ments
on
Project
Progress
Report
RFQ
issued
562 Km
Constructi
on
Complete
d
Develop
ers hired
O&M phase
started
Every Year
PWD
Procurement
process in
progress. The RFP
have been
received and
opened on 05-122012. The RFP is
presently under
evaluation.
Status to end of
October, 2013
As the annuity bids did not

meet the VFM the tenders
have been cancelled and
processes are underway to
re-procure under item-rate
contracts. Bank
Suggested Reviewing the
DBFMOT Concession,
restructuring and
rebidding for four annuity
contracts.
Land acquisition and resettlement Implementation

(a)
Land
acquisition
completed
(Phase I)
(b) Key R&R
assistance
provided
(alternative
housing and
livelihood
support)- Phase
I
(c)
Improve
the living
standards
(measured
percent PAFs
with
increased/restor
ed
income/assets):
Phase I
Perc
enta
ge
0%
40%
70%
100%
Perc
enta
ge
0%
20%
40%
70%
Perc
enta
ge
0%
25%
100%
80%
Every Year
Project
Progress
Report
Every Year
Project
Progress
Report
Twice in the
project period
Project
Progress
Report,
R&R
Impact
Assessme
nt Report
EPC-Payment released99%, Annuity-15

notifications issued for
100% and 19 notification
issued for all links except
one (T21).
EPC-Non title holders100%

EPC-Title holders -99%
Annuity- Non Title
holders- 18.20%
Annuity- Title holders0.51%
Page 67 of 72
PIU-KSHIP
Outcome
Indicators
for Each
Component
Uni
t of
Me
asu
re
Baseline
Year
a)
Implementation
No.
0
of EMP as
agreed.
(b) ISO 14001
certification
obtained for
operational
units
YR 1
6/ 2011
YR 2
6/
2012
YR 3
6/2013
YR 4
6/2014
YR 5
6/ 2015
Frequency
and
Reports

Respon
Data
sibility
Description
Collecti
for
(indicator
on
Data
definition
Instru
Collecti
etc.)
ments
on
As
awarded
PIU(HQ)
certified
1 field
division
certified
Every Year
Project
Progress
Report
PWD
Component-2: Highway Financing Modernization Component

Tolling
KRDCL
KRDCL
Poli Passing
started on
issues
generates
cy
of
selected
debt or
additional road
and
Tolling
roads
develops
user revenues
Insti Policy
PPP
and commits
tutio
transacti
them for
nal
on
mobilizing debt Acti
backed
by toll
financing (via
on
revenues
securitization)
and/or making
payments for
PPP
transactions
Km / Screening
CoDPR
Completion of
Proc
commenc
financing
complet
upgrading,
arrangem
ed
widening and O urem ed
ent
ent
& M of about
mile
establishe
400 km through ston
d;
co-financing
es
Transacti
arrangements
on
Every Year
Constructi
on
Complete
d
Every Year
Project
Progress
Report
Project
Progress
Report
Status to end of
October, 2013
Contract awarded to M/s

Allied Boston Pvt. Ltd,
New Delhi for
operationalising EMS in
14 offices of PWD.
Inception Report is
accepted. Consultants are
preparing Manuals
KRDCL
KRDCL
Tolling Policy is under

review of the Government.
Consultant (M/s IDECK)
has been mobilized by
KRDCL for preparing
bidding documents for
OMT concessions.
Adviser
engaged
Component-3:Road Safety Improvement Component
Page 68 of 72
PIU-KSHIP
Outcome
Indicators
for Each
Component
Uni
t of
Me
asu
re
Baseline
Year
YR 1
6/ 2011
YR 2
6/
2012
YR 3
6/2013
YR 4
6/2014
YR 5
6/ 2015
Frequency
and
Reports

Respon
Data
sibility
Description
Collecti
for
(indicator
on
Data
definition
Instru
Collecti
etc.)
ments
on
Status to end of
October, 2013
Lead Agency Established2009

Pilot Corridor identified
-2010
Effective
implementation
of Safe
Corridor Pilot
Polic
y
and
Instit
ution
al
Acti
ons
Lead
Agency
Establishe
d: pilot
corridor
identified
Consultan
t services
procured
Multisector
interve
ntion
implem
entatio
n
started
Multi-sector
intervention
completed
Minimum
3 star
rating
achieved
through
iRAP
investigati
on
Every Year
M&E
Report on
Safe
Corridors
Pilot
Annual
Report of
Road
safety
Cell
PWD /
Road
Safety
Cell
Road safety Cell

constituted in TD-2010-11
but yet to be staffed
Consultant Services
procured for Institutional
Capacity Building.
Road Safety Management
Consultants Procured2012.
iRAP Completed (3 *
rating obtained)
DPR is under preparation
for Engineering
interventions.
Interventions vetted by
experts and customized to
Karnataka Roads to
achieve 3 * rating.
Component -4: Road Sector Policy and Institutional Development Component

Satisfactory
implementation
of agreed
Action Plan for
institutional
development
and governance
improvement
Polic
y
and
Instit
ution
al
Acti
ons
IDSAP
and
GAAP
Endors
ed
Key
consultant
services
procured
Studie
s
Comp
leted
Recom
mended
actions
taken
Assessment
of IDSAP
and GAAP
results made
Key consultant services

procured-ongoing
HRD Manager ProcuredApr,13
Consultant appointed for
Implementation of GAAP
aspects- Apr,13
PMS Consultants procured.Oct, 12
EMS-ISO Certification
consultants procured.-Nov,12
Page 69 of 72
PIU-KSHIP
12.
SEMINARS, WORKSHOPS AND TRAINING
The schedule of seminars, workshops and training conducted is given in the tables below.
Overall Status
% of Training
Complete
Total No. ManMonths Trained
Actual Start Date
Planned Start
Date
Description
Total No. of
Man-Months
Activity
No. of Trainees/
Participants
Table 49: Seminars, Workshops and Trainings conducted by PIU
Seminars, Workshops and trainings are not conducted in this Quarter
Overall Status
% of Training
Complete
Total No.
Man-Months
Trained
Actual Start
Date
Planned Start
Date
Total No. of
Man-Months
No. of
Trainees/
Participants
Packages
Description
Activity
Table 50: Seminars, Workshops and Trainings conducted by CSC
Seminars, Workshops and trainings are not conducted in this Quarter
Page 70 of 72
PIU-KSHIP
13.
REPORT DELIVERY SCHEDULE
The report delivery detail is given in the table below.

Table 51: Report Delivery Schedule
12/12
10/01/13
Q4
Q3
Q2
Q1
2016
Q4
Q3
Q2
Q1
2015
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
30/03/13
Interim
Unaudited
Financial Report
(IUFR)
2014
8/13
8/12
10/10/12
Training Report
5/13
CSC Quarterly
Progress Report
(CSC-QPR)
10/7/12
Q3
2013
18/09/12
Quarterly
Progress Report
PCC
Q2
Reports listed in
Project and Loan
Agreements
Q1
2012
10/04/13
Annual Progress
Report
Page 71 of 72

QPR Report

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GOVERNMENT OF KARNATAKA

PUBLIC WORKS, PORTS & INLAND WATER TRANSPORT

Quarterly Progress Report 2 (1 July to 30 September 2013)

Quarterly Progress Report 1

SUMMARY OF PROJECT ACTIVITIES.........................................................................................................9

DETAILED PROJECT IMPLEMENTATION/PROGRESS BY COMPONENT AND CONTRACT......27

PROJECT IMPLEMENTATION MONITORING.........................................................................................39

PAYMENT AND DISBURSEMENT PROGRESS..........................................................................................48

SOCIAL, RESETTLEMENT & REHABILITATION....................................................................................50

SUMMARY OF RESETTLEMENT AND REHABILITATION ACTIVITIES................................................................50

SUMMARY OF PROCUREMENT PACKAGES...........................................................................................57

PROCUREMENT PLANS FOR WORKS, GOODS, AND SERVICES........................................................................57

10. ENVIRONMENTAL MANAGEMENT ACTIVITIES...................................................................................58

Quarterly Progress Report 2 (1 July to 30 September 2013)

Quarterly Progress Report 2 (1 July to 30 September 2013)

Acquired Immune Deficiency Syndrome

Quarterly Progress Report 2 (1 July to 30 September 2013)

Pollution Control Board

Quarterly Progress Report 2 (1 July to 30 September 2013)

1.1 The IBRD assistance covers the following four components.

Delay in procurement of four (4) Annuity contracts.

Quarterly Progress Report 2 (1 July to 30 September 2013)

The slow progress is mainly due to the following reasons:

In package WEP-3 no proper coordination between JV partners still persists, and no

Quarterly Progress Report 2 (1 July to 30 September 2013)

Recruitment of GAAP Consultant: Task to be assigned to Project Management System (PMS)

Quarterly Progress Report 2 (1 July to 30 September 2013)

Resettlement and Rehabilitation (R&R) and Land Acquisition (LA)

Quarterly Progress Report 2 (1 July to 30 September 2013)

Quarterly Progress Report 2 (1 July to 30 September 2013)

Poor co-ordination between JV partners on WEP-3 affecting

Delay in getting quarry and crusher operation approvals on WEP

Delays in completing compensation on WEP Contracts.

Clearance under Forest (Conservation) Act

KSHIP has complied all conditions except alternate land to be provided by

Completion of evaluation and award process for DBFMOT

Selection of Independent Engineer (IE) for DBFOMT Annuity.

Completion of Staffing for the Road Safety Cell.

GO regarding formation of Road Safety Cell is issued and posting of staff to

Quarterly Progress Report 2 (1 July to 30 September 2013)

Delay in the starting the SCDP designs.

Safe corridor program consultancy services for monitoring and

Clearance for revised D-Code to be obtained from Finance

The proposal for revision of D-Code is in the Finance Department. To be

Submission of disbursement projection.

SUMMARY OF PROJECT ACTIVITIES

2.1 Costs and Bank Loan for Project components

1 - Road Improvement Works

b) DBFOMT Annuity Concession**

2 - Highway Financing Modernization

Balance Loan (Bank Loan Amount)

Note- Exchange rate Rs. 45 per dollar as per Loan agreement.

Overall Project Implementation Status (Progress and Issues) by

a) Component 1: Road Improvement Works

Quarterly Progress Report 2 (1 July to 30 September 2013)

Duration Elapsed, Months

Achieved Length, (SectionI/Section-II)Km

Planned Length, (SectionI/Section-II)Km

Completion Date (SectionI/Section-II), Km

Milestones (Section-I / SectionII)

Contract Signing Date

Table 3: EPC Civil Work Progress

Duration Elapsed, Months

Achieved Length, (SectionI/Section-II)Km