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Lesson
Consultation for land acquisition is difficult. In the project, two sections (0.5% of the project roads) are not yet completed owing to difficulty in acquiring the land. The NHAI recently adopted a policy that construction procurements will be started only when more than 80% of land acquisition is completed. However, even if this policy had been adopted in the project, the project still might not have resolved the issues it faced. Land acquisition is a difficult issue in India, and lack of careful consultation with landowners can lead to delays in the acquisition of land for roads.

Project Number: 34420-013, 34420-023
Project Name: National Highway Corridor (Sector) I Project
Report Date:
Lesson
Seamless transport across state boundaries is lacking. The east–west national highway corridor was improved significantly between Chittorgarh and Kanpur, and travel time was reduced. For example, the travel time from Shivpuri to Jhansi (100 km) decreased by 1 hour. However, trucks carrying goods must spend 1.5 hours at state border checkpoints to get tax and customs clearances to cross. The World Bank’s Logistic Performance Index, which ranks 160 countries every 2 years, ranked India 25th in 2016, up from 54th in 2014.

Project Number: 34420-013, 34420-023
Project Name: National Highway Corridor (Sector) I Project
Report Date:
Lesson
Delays in sections outside the project scope in the same corridor can have big impacts on a project. The Kota bypass, which is in the middle of the Chittorgarh–Kota and the Kota–Baran sections, was not completed owing to the collapse of the bridge under construction at the time of IEM fielding. Although the bypass is not within the scope of the project, the delay of its completion affected the traffic on adjacent sections of the project.

Project Number: 34420-013, 34420-023
Project Name: National Highway Corridor (Sector) I Project
Report Date:
Lesson
Build–operate–transfer (BOT) schemes have large risks but can be successful in high-traffic sections. The BOT annuity concessionaire for the Orai-Baran section, with higher traffic than expected, represents a successful case. However, in many cases BOT schemes in India are not successful. BOT concessionaires need to take large risks as (i) lack of achievement of expected traffic volumes owing to external factors such as the unexpected opening of competitive roads and construction delay in adjacent sections, and (ii) delays in land acquisition.

Project Number: 34420-013, 34420-023
Project Name: National Highway Corridor (Sector) I Project
Report Date:
Lesson
A large amount of unused loan should be avoided. Although the actual cost for the civil works sections increased by about 50%, the project still ended with unused loan proceeds of $9.65 million (Loan 2205) and SDR1.40 million (Loan 2206). These were sufficient to finance the local roads, which were estimated to cost $3.8 million. A thorough fund disbursement analysis should have been conducted during project implementation.

Project Number: 35457-013
Project Name: East–West Highway Improvement Project
Report Date:
Lesson
Monitoring indicators should be carefully selected. Some indicators for impact and outcome are not readily available nor closely linked to the project. Since data are generally not readily available in Azerbaijan, sources for evaluation indicators should be identified in more detail at appraisal. Documents such as those prepared at appraisal and project completion should include sufficient data for subsequent verification and follow-up. Specific omissions were traffic data, unit benefits, and unit costs that were needed to fully comprehend the economic analysis.

Project Number: 35457-013
Project Name: East–West Highway Improvement Project
Report Date:
Lesson
ADB-financed project sections should be carefully selected. At appraisal, two sections were intended to be financed by ADB. The Yevlakh-Ganja section involves much higher traffic than the Gazakh–Georgian border section. Thus, the Yevlakh-Ganja section brought greater benefits and greater socioeconomic impact to the project area. If ADB had financed the Yevlakh-Ganja section instead of the Gazakh–Georgian border section, the project might have been rated efficient as the recalculated EIRR would have been higher than the threshold of economic viability.

Project Number: 35457-013
Project Name: East–West Highway Improvement Project
Report Date: