Fostering the local contractor industry. All civil works contractors for the project were local, and some were small companies with limited access to equipment, financial resources, and skilled and qualified staff. Due to the increasing length of PMGSY (Pradhan Mantri Gram SadhakYojana or Prime Minister's Rural Roads Program) roads to be constructed, the overall industry was overstretched in the project areas. This was a major reason for project implementation delays and became an outstanding issue in the country. While fostering the local contractor industry by providing more capacity building programs and necessary technical and financial support, the government should engage with local contractors to understand their current capacity for contract management and project delivery during the contract packaging process.
Rural Roads Sector II Investment Program (Project 3)