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National Highways Development Programme Key Feature & Challenges

By

NIRMAL JIT SINGH, MEMBER(TECHNICAL)National Highways Authority of India

New Delhi

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INDIAN ROAD NETWORKTotal – 3.3 Million km

Road Category Length (km) Percentage (%)

Expressways 200 -National Highways (NHs) 66,590 2%

State Highways (SHs) 128,000 4%

Major District Roads (MDRs) 470,000 14%

Rural Roads 2,650,000 80%

Total 3,314,790 100%

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TRAFFIC ON ROADS

Roads carry 85% of passenger & 70% of freight traffic

National Highways are less than 2% but carry 40% of traffic on roads

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INITIATIVES FOR HIGHWAY DEVELOPMENTEstablishment of the National Highways Authority of India (NHAI) Announcement of incentives for private sector participation in road infrastructure development.Start of the National Highways Development Project (NHDP Phase – I & II)Levy of cess on Diesel and Petrol for assured funding of road development projectsApproval of NHDP Phase –IIIA entirely on BOTTaking up NHDP IV to VII

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National Highways Development Project National Highways Development Project (NHDP)(NHDP)

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Phases Under Implementation

NATIONAL HIGHWAYS DEVELOPMENT PROJECT APPROVED

In Km

Total Length 25,347

NHDP Phase I : Mainly Golden Quadrilateral (GQ) 7,498

NHDP Phase II : Mainly North-South & East-West (NS & EW) Corridors

6,736

NHDP Phase III : 4 laning of 11,113 km under BOT

11,113

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Financing of NHDP -I , II & IIIAPhase Approved Cost Cumulative Expenditure

(Jun-06)

NHDP – ICess and Market borrowings : 18,846External Assistance : 7,862BOT / SPV : 3,592

30,300(1999 Prices)

30,607.59

NHDP – IICess and Market borrowings : 23,420External Assistance : 7,609BOT : 3,310

34,339(2002 Prices)

NHDP – IIIA BOT : 22,000 22,000(2004 Prices)

168.26

86,639

2,785.94

TotalCess and Market borrowings : 42,266External Assistance : 15,471BOT / SPV : 28,902

33,561.79

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NHDPPhase I, II & III

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NHDP PHASE - ITotal Length

Length Completed

Target for completion

7,498 6636

Golden Quadrilateral (GQ) High traffic density corridorsLinking metropolitan cities of: Delhi – Mumbai – Chennai –Kolkata – Delhi(Status as on 28.02.2006)

5,846 5409 (92.52%) 96% GQ is targeted for completion by Dec, 06

North-South (NS) & East-West (EW) Corridors N-S: Srinagar to Kanniakumari (including Spur from Salem to Kochi) E-W: Silchar toPorbandar

981 830 June, 07

Port Connectivity & Other Projects 671 397 June, 07

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Photographs of some Completed Stretches of NHDP

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QUALITATIVE CHANGE

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JaipurJaipur-- KishangarhKishangarh

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Vivekananda Bridge

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Vivekananda Bridge

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Naini Bridge

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KrishnagiriKrishnagiri –– VaniyambadiVaniyambadi (KR(KR--1)1)

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National Highways Development Project Phase IIIn Km

Total Length 6,736

• NS & EW Corridors 6,240

• North South 3,068

• East West 3,172

• Other NHs 496

Total 6,736

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Status of NHDP Phase–II as on 30.06.2006

In Km No. of projectsCivil works Awarded : 5377 136

NS & EW Corridors : 4911 126Others NHs : 466 10

Funded By No. Length (km)ADB 25 1383WB 12 481.83BOT 16 812.86ANNUITY 12 673MoRTH 1 4NHAI 70 2023

Total 136 5377

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NHDP Phase III

• Government have approved in March 2005 NHDP-Phase IIIA for upgradation and 4 laning of 4,000 km of National Highways on BOT basis.

• It has also approved preparation of DPRs for 6,000 km (since increased to 7113 km).

• Criteria for selection of stretches are :-• Corridors having high density traffic.• Connectivity of State Capitals with NHDP - Phase I&II.• Connectivity of centers of tourism and places of economic

importance.

Present Status• 1 contract of length 30 km completed.

• 17 contracts covering a length of 1090 km have been awarded.

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Future Plans Phase Length and Nature of Development Mode of

ImplementationTotal Cost

NHDP – I & II Balance work Mixed BOT/ EPC 52,375

NHDP – III 11,113 km, 4 laning BOT (Toll) 65,163

NHDP – IV 20,000 km, 2 laning with paved shoulders BOT (Toll) / BOT (Annuity)

27,800

NHDP – V 6,500 km, 6 laning BOT (Toll) 41,200

NHDP- VI 1,000 km, Expressways BOT (Toll) 16,680

NHDP –VII Ring roads, bypasses, underpasses, etc. Mixed BOT / EPC 16,680

SARDP – NE Special Accelerated Road Development Programme for the North Eastern region

Mixed BOT / EPC 12,123

Rs in Rs in CroreCrore

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INVESTMENT AND IMPLEMENTATION METHODOLOGY

Investment in future highway projects including balance works of first three phases about US $ 50 billion

Implementation mainly through Public Private Partnership

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PUBLIC PRIVATE PARTNERSHIP

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Incentives for Private Sector ParticipationProcurement Procedure – well defined and transparent

Investor friendly Concession AgreementInternational competitive bidding

Equitable Dispute Resolution Mechanism

Provision of encumbrance free site for work, i.e. Government bears expenses for land acquisition and pre-construction activities.

Foreign Direct Investment (FDI) upto 100%

Capital Subsidy maximum upto 40% on case to case basis to meet the viability gap funding

100% tax exemption in any consecutive 10 years out of 20 years

Right to collect and retain revenues from User Fee (Toll)

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Awarded Completed

No. of Contracts

Length in km

No. of Contracts

Length in km

NHDP Phase I 9 454 3443 718.99(20.88 %)

7 420

NHDP Phase II 16 812.86 5371.06 -103.38(-1.92%)

- -

NHDP Phase III 17 1090 5752 491.91(8.55%)

1 30

Total 42 2356.86 14566.06 1107.61(7.6%)

8 450

Total Project Cost

(Rs Crs)

Awarded Cost

(Rs Crs)

Category

Summary of BOT Toll based Projects

Though allowed upto 40% the overall grant is 7.6%

As on 30.06.2006

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Summary of BOT (Annuity) based Projects

Awarded Completed

No. of Contracts

Length inkm

No. ofContracts

Length in km

NHDP Phase I 8 476 2354 288(12.23 %)

8 476

NHDP Phase II 12 674 5341 388.76(8.76%)

- -

Total 20 1150 7695 755(9.81%)

8 476

Total ProjectCost

(Rs Crs)

Annuity (Rs Crs)

Category

As on 30.06.2006

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Issues in Timely Completion• Land Acquisition

- In NHDP Phase I acquisition of land started along with implementation of the project.

- About 208 hectares still remains to be acquired.

- Business Rules amended to authorize M/O Shipping Road Transport & Highways to issue notification since 01.09.2005.

- For the North – South & East –West corridor projects, Land Acquisition process has already been initiated. 3D for 67% land completed.

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Issues in Timely Completion

Environment and Forest clearances

Environmental clearance required for all projects, located in forest / ecologically sensitive areas, and also for projects in which more than 20 meters width of land is to be acquired.

Also to be obtained for bypass projects costing more than Rs. 100 crores.

Besides permission has to be obtained from the State Forest Department for felling of trees.

Contd…

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Issues in Timely Completion

• Clearance of Railways for ROB design

Approval of the Railways is required at various stages in construction of

ROB.

GM level officer of the Railways posted in NHAI for better coordination

and pursuit.

Some ROB’s entrusted to IRCON who are delegated powers to approve

design.

Contd…

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Issues in Timely Completion

• Difficulties faced by contractor in obtaining quarries for

aggregates and stone aggregate of requisite quality from the

designated quarries

- Though this is the contractor’s responsibility, NHAI has been taking up the issue

with the concerned State Governments for ensuring that overall contract

completion is not affected by this problem.

Contd…

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Issues in Timely Completion

• Stoppage of work by local population demanding

additional bypasses service road, flyover etc.

Contd…

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Issues in Timely Completion

• Poor performance by some contractors

• Performance of some of the contractors has been

very poor.

• 8 contracts terminated.

• 17 contractor declared non performing and not

allowed to bid for new projects

Contd…

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Issues in Timely Completion

• Cash flow problems of contractors

• Additional interest bearing advances given.

• Recoveries deferred.

• In exceptional cases NHAI making direct payment for steel, cement and other essential construction materials etc.

Contd…

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MAJOR IMPROVEMENTS IN NHDP PHASE-II

• Public Consultations at the stage of DPR preparations.

• Provision of more under passes at an average interval of 4-5

Kms. Against 10 kms in GQ.

• Provision of more service roads.

• Peer Review of DPR.

• Proof checking of design of major structures.

• Bid document standardized.

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Operations and Maintenance

Around 3000 km of upgraded highways already under operation and maintenance

Figure will rapidly increase in coming years

Operation & maintenance through long term contracts

Plans to install modern systems in operations such as electronic tolling equipment, ATMS

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Highway Traffic Management System (HTMS) / ATMS

The system comprises of the following components:-

• Emergency Call Boxes (ECBs)

• Variable Message Signs (VMS)

• Video Surveillance System

• Video Incident Detection System

• Radio Mobile Communication

• Metrological Data System

• Automatic Traffic Counter cum Classifier

• Fibre Optic Communication System

• Control Centre

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Highway Traffic Management System (HTMS) / ATMS (contd…)

Status:-

A. Presently at Amer – Kotputli and Jaipur – Kishangarh

B. Proposed at Ahmedabad – Vadodara Expresseway, Panipat –

Jalandhar Section of NH-1, Barwa Adda – Pangarh Section of NH-2,

Chikaluripet – Vijayavada and Vijayavada – Eluru Section of NH – 5.

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Modern Toll Collection System

• Automatic Vehicle Counter cum Classifier ( AVCC ) with Incident capturing• Automatic Boom Barrier• ETC ( Electronic Toll Collection )• Contactless Smart Card Systems• License Plate Reader• Ticket Printer• User Fare Display unit• Close Circuit Television System• Lane Controller• Traffic Light System• Intercom System• Over Head Lane Signs

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5

8

9

3

6

711

10

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DelhiKarnal

Shambhu

Doraha

Delhi – Gurgaon (BOT)

BilaspurManoharpur

Jaipur BypassJaipur – Kishengarh ( BOT)Kavalias

Jojro ka KhedaNarayanpura

PadunaKhandi Obri

Vantada

Proposed Locations For implementation of Modern Toll Collection Systems at 14 locations as Pilot Project

NH 1

Srinagar

Mahuvan

NH 2

NH 8

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Weigh – in Motion System

- Problem of overloading.

- Need to regulate / ensure legal roads.

- Weigh-in motion being installed at 12 locations.

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ENVIRONMENTAL ENHANCEMENT

• Avenue Plantation− Tied up with State forest Departments to take up Avenue

Plantation on the completed Sections

− So far about 5.41 lakhs plants covering a length of 1250 km. have been planted on road side margins.

− Plants include about 40000 of Fruit Bearing trees mainly Neem, Jamun, Mango etc

− Selection of Species as per Agro climatic region

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ENVIRONMENTAL ENHANCEMENT• Median Plantations

− Executing agencies are Contractor (as per BOQ)/ Concessionaire/ Forest department/ other agency on contract

− 1600 Km covered under median plantations

− About 7.5 lakh plants planted mainly ornamental shrubs like Bougainvillea, Kaner etc.

Contd…

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WAYSIDE AMENITIESPARKING

FAST FOOD / RESTAURANT

DRINKING WATER

TOILETS

KIOSKS

FIRST AID

TELEPHONE

LANDSCAPINGTHROUGH PRIVATE SECTOR

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ENVIRONMENTAL ENHANCEMENT

• Site specific landscape development

− To enhance aesthetics of the corridor, site specific plans are being

developed for junctions and interspaces

• Enhancement of Cultural Properties

− Restoration of Kosh Minars in Delhi -Mumbai & Delhi – Kolkata

section.

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•Allahabad Bypass Package II & III 67 lakhs cubic meters

•Used in different packages of NH-2 & 6 33 lakhs cubic meters

•Total 100 lakhs cubic

meters

LARGE QUANTITY BEING USED

Use of Fly-ash

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Capacity of Construction industry

• Overall industry turnover at present Rs 6000 crore per annum: This has to increase fourfold:

− New players joining (investors as well as contractors)

− Existing ones improving their capacity

− Small medium specialist firms emerging to avail the opportunities

• Equipment suppliers

• Material suppliers (including ready mix suppliers)

• Maintenance companies

− Equipment pool emerging

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Capacity of consultancy industry

• Consultancy firms by are now well experienced

− Career opportunities available with these firms

− Average age of consultant’s personnel needs to come down

− Exodus of personnel and poaching by other firms to stop

− Training of personnel

• They now have to upgrade technologically

− In-house expertise in financing, construction, modern tolling system, operation and management

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Material sources

• Huge demand on natural resources (land, natural materials)

− Alternative materials (e.g., stabilized soil)

− Alternative technologies (e.g. reinforced soil)

− Innovative construction techniques (e.g. recycling)

• There is need to

− Economize on materials

− Restore the damage to the environment

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Equipment

• This will not be a constraint

• Nevertheless, effort needs to be directed towards

− Equipment leasing

− Equipment pooling and sharing

• New sets of equipment to proliferate

− Low volume maintenance equipment

− Lifting and launching equipment

− Equipment for instrumentation and no destructive testing

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Human resource

• Great opportunity is round the corner for development of human resource.

This needs to be tapped

− Regular recruitment of engineering graduates by the contractors and

consultants

− Integration of various disciplines:

− Civil engineering, Information technology, finance, management

− Specialised formal courses to be introduced in Universities and

Educational institutions

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Technology and Management

• Operation and management of the new generation highways will need graduation to Intelligent Transport System (ITS)

− Electronic tolling

− Integration of toll by various operators

− Back end integration with Banks, BOT operators, system developers and operators

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ROLE OF ICTInformation & Communication Technology (ICT) will be enabler of :-

− Time & Cost bound implementation of NHDP Phase I to III (24,000 km).

− Efficient O&M of completed stretches.

− e-Governance of Highways.

− Transparent procurement of high value contracts.

− Keeping stake holders & public at large informed and build-up the brand image.

− Provide rapid & cost effective communication systems.

− Improve skill sets of personnel.

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Opportunities / Tasks Ahead• Adopt improved technologies to facilitate faster construction with

assured quality

• Need to create special cell under Indian Roads Congress to clearnew technologies for early adoption with appropriate changes in standards / specifications

• Measures to attract foreign investments with mechanisms to securitise foreign exchange fluctuation

• Projects to be taken up with support from foreign governments through MOU route – procedures for acceptance need to be formulized

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Opportunities / Tasks Ahead (Contd.)

• Private sector involvements in maintenance and operation needs to be encouraged with appropriate bidding module

• Concept of Equipment banks needs to be encouraged with adequate network of vendors, dealers, service centers

• More delegation of powers to institutions like NHAI, MSRDC, etc.Their performance to be evaluated against specified targets

• Improving the efficiency of transport sector, with use of efficient vehicles, multi-axled trucks, etc.

• Creation of Regulatory Institution

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