Rural Roads Project

Prof. M. G. Korgaonker Director General, NICMAR and ICICI Chair Professor, SJMSOM

Rural Roads Project

The Rural Road Program ( Pradhan Mantri Gram Sadak Yojana, PMGSY )Announced in 2000. Project Mission : Well defined. To achieve all weather access to every habitation with a population greater than 1000 by the end of 2003, and all habitations greater than 500 people by the end of 2007. Total estimated cost Rs. 1,330 billion. Estimated 300,000 habitations ( nearly 40 % of total habitations ) are without all weather road access.

Overall Project Mission definition Good

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The Main Elements of the PMGSY Strategy Focus on new connectivity Preparation and use of core rural road netwroks Raise substantial new resources through Central Road Fund, World Bank Rigourous and transparent monitoring of PMGSY funding Higher design standards and quality assurance procedures Requirements for States to identify suitable PRIs with funding responsibility to undertake maintenance

Rural Roads Project

Top Management Support The project is sponsored by Central Government. Ministry of Rural development ( MORD ) assigned the task of designing the program strategy and overseeing actual implementation by states and district bodies. MORD team is headed by a Joint Secretary. MORD has constituted inter ministerial empowered committee chaired by Secretary, MORD to sanction state sub project proposals

National Rural Road development Agency ( NRRDA ) formed to provide technical and monitoring support to MORD.

Rural Roads Project

At state level, State Rural Road Development Agency ( SRRDA ) formed. They interface with units like PWD, etc. Involvement of technical Agencies like NITs, IIT, etc. Scheme worked out for allocation of funds collected under the Central Road Fund. So far about $ 2.2 billion spent on delivering PMGSY over the last four years Overall, Top Management Support Good

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Project Plans and Schedules PMGSY guidelines require preparation of core network plans to ensure one all weather road connection from each habitatation to nearby market centers. The roads under PMGSY selected from core network plans Most roads under the project involve upgrading of existing earthen tracks to single lane rural roads with or without bitumen surface depending upon the traffic and climatic conditions. Guidelines specify use of Indian Road Congress manual for Rural Roads ( IRC SP 20 ) for the design of all rural roads

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A budgeting and accounting system has been established on the basis of PWDs accounting rules and is operational for PMGSY with an on line computerized system under implementation in phases Staff trained to carry out basic accounting functions at all levels including divisions / PIUs under the PWD system Financial Management arrangements are documented as part of Program Operational Manual ( OM ) and Supplemental Operations manual ( SOM ) which lay down accounting policies, procedures, processes, operation of the project financial management system and the reporting arrangements

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Project budgeted on the expenditure side at Union level and works under an identified budget head item of MORD. Detailed guidelines worked out for funds flow arrangements. The funds to flow through regular banking channels outside the treasury system. Funds to be released in two installments during a year. However a detailed modern approach to project planning and scheduling is missing.

WBS, OBS and PBS not explicit and could have been better defined. Thus planning and scheduling could have been better using scientific methods

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Client Consultation Client being Central Government, and project implemented at state level through state agencies, client consultation largely at the state level. No specific arrangement seen for managing client consultation process on a systematic basis. This could have been better defined

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Managing Human Resources Staffing MORD provides suitable staff to ensure budgetary provisions and smooth and timely flow of funds A financial team at the State level ( SRRDA ) headed by Financial Controller is available at the State level At the PIU ( district level ) finance teams are provisioned.

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Training Provided as per training calendar developed by MORD Still there is substantial absence of implementation measures to enhance HRM in areas of transfer, skills specialization and personal accountability in rural road agencies HRM is a significant weak area. Overall serious lack of PM skills among the agencies involved in planning, execution and monitoring of the project

Rural Roads Project

Technical Tasks : Execution Most of the technical tasks of execution of the projects outsourced to agencies like PWD. Problems endemic to these agencies affect the PMGSY as well. Technical Tasks : Risk Analysis and Mitigation Complete absence of risk analysis. Risks relate to allocation of resources human resources environmental damage implementation capacity for rural roads Irregular flow of project funds Poor design of road works and use of standards which are not cost effective or environmentally sound

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Technical Tasks : Procurement Methods National Competitive Bidding, Local Competitive Bidding procedures adopted Procurement of all work packages follow arrangements outlined in accordance with project Procurement Plan However specialized arrangements to dovetail execution plans and schedules with procurement plans and schedules missing. Little or no evidence of inventory management, value engineering or other systematic methods of procurement management

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Technical Tasks : Environmental Management Key issues : Materials management such as borrow area and quarry operation Location and operation of hot mix plants and construction labour camps Disposal of debris and bituminous waste Embankment and slope stability

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Environmental and Social Management Framework ( ESMF ) Screening and consultation framework Standard Environmental Codes of Practice ( ECOP ) Resettlement Policy framework Tribal development strategy ESMF helps minimize sub project level EAs and Environmental management Plans

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ECOPs Developed For Construction camps and site operations Tree plantation and roadside vegetation Erosion control and slope stability Quarry development Operation and rehabilitation Drainage and flood prevention Protection of chance find cultural properties Waste management and site redevelopment

Overall satisfactory approach to management of technical tasks. But there are significant gaps.

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Client Acceptance Client acceptance procedures well defined Monitoring and Feedback With the assistance of World Bank, a detailed framework established for monitoring and feedback of Rural Roads Project Both the levels as well as components to be monitored along with outcome indicators defined Fairly good system in place

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Trouble Shooting No explicit mechanism for trouble shooting Could be contentious, laborious and add significantly to the delays

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Overall Assessment Project Mission Top Management Support Project Plans and Schedules Client Consultation Management of Human resources Management of Technical Tasks Client Acceptance Monitoring and Feedback Trouble shooting Communication Total : : : : : : : : : : : 8 / 10 7 / 10 6 / 10 5 / 10 4 / 10 5 / 10 7 / 10 7 / 10 4 / 10 6 / 10 59 / 100

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Some Performance Outcomes Imposition of cesses on fuel have helped sustain an expenditure of $ 2.2 billion to date on PMGSY About 33,000 separate road links with value of about Rs. 13, 500 million are under implementation of which about 13,500 road links are complete totaling approximately 20,000 kms of roads with a further 30,000 kms under construction

Preparation and use of detailed planning guidelines and Rural Roads Manual, with a focus on rural road network approach to help prioritize all forms of spending on rural roads

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Enforcement of a three tier quality supervision and monitoring mechanisms Application of standard procurement procedures and financial management system Substantial progress with online management and monitoring system with nine modules covering all aspects of PMGSY and available to the general public through the web

Release of funds to the states at least partly determined by performance. Hence a much higher standard of technical and financial management

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Of the 64791 unconnected habitats of 1000 and above population, works on only 22,116 are either completed or under completion under the program. The program also funded the works for connecting another 24,339 habitats with a population of less than 1000. Overall, program has not been able to meet the target as defined in the policy statement mainly due to limited availability of funds and capacity constraints of road agencies and contractors

Thank You !