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Rural Roads Project

Prof. M. G. Korgaonker

Director General, NICMAR

and

ICICI Chair Professor, SJMSOM

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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 habitationsgreater 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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Rural Roads Project

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

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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. MORDteam 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 providetechnical and monitoring support to MORD.

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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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Rural Roads Project

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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Rural Roads Project

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 includingdivisions / 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 theproject financial management system and the reporting arrangements

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Rural Roads Project

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 bereleased 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. Thusplanning and scheduling could have been better using scientific methods

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Rural Roads Project

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 systematicbasis.

This could have been better defined

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Rural Roads Project

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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Rural Roads Project

Training

Provided as per training calendar developed by MORD

Still there is substantial absence of implementation measures to enhance HRMin 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

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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 MitigationComplete 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 accordancewith 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 ofprocurement 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 : 8 / 10

Top Management Support : 7 / 10

Project Plans and Schedules : 6 / 10 Client Consultation : 5 / 10

Management of Human resources : 4 / 10

Management of Technical Tasks : 5 / 10

Client Acceptance : 7 / 10 Monitoring and Feedback : 7 / 10

Trouble shooting : 4 / 10

Communication : 6 / 10

Total : 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. Hencea 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

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Thank You !