Under ADB TA 7324-IND, Technical Assistance for Karnataka State Highway Network Improvement, consultant M/S Scott Wilson Pvt. India Ltd., completed a study for identifying a ‘Core Road Network’ (CRN) in the state. This was updated in 2012, to reflect some changes in connectivity criteria. M/S Deloitte Touche Tohmatsu India Pvt. Ltd. has prepared a pre-feasibility report on rehabilitation and upgrading of CRN identified by the previous study, on a Public Private Partnership (PPP) basis. This preliminary study, based on broad financial assumptions, attempted to categorize projects from the CRN that could be taken up on some form of PPP, as distinct from regular construction contracts.

Based on the CRN study and the pre-feasibility assessment for PPP, KSHIP identified 9 key road corridors, sections which are proposed to be taken up for upgrading through various schemes. KSHIP then commissioned a feasibility of the identified 9 road corridors based on 7-day traffic counts and preliminary cost estimates.

The Feasibility Study initially taken up covering 4403 kms across nine corridors is further curtailed to 3400 kms excluding the following two Corridors no. CNS3 & CEW 30 owing to upgrading of a length of 1003 km of SHs to National Highway.

• CNS 3: Kerala Border (Ooti) - Gundlupet - Nanjangud - Mysore - SR Patna - Pandavapura - Nagamangala - Turuvekere - Chikkanayakanahalli - Hiriyur - Challakere - Molakalmuru - Bellary - Siraguppa - Sindhanur - Lingasguru - Shorapur - Shahapur - Jevargi - Gulbarga - Humnabad - Bidar - MH Border and
• CEW 30: Bantwal - Madikeri - Mysore - Mandya – Bangalore

Map depicting 3400 kms of roads taken in Feasibility Study

On the basis of this feasibility study, a set of roads aggregating to about 1200km was identified for preparation of detailed project reports (DPRs) for posing these projects to ADB. Two consultant consortia were engaged by KSHIP during July-2015 to prepare the detailed project reports (DPRs).

DEA communicated the Screening Committee’s approval by its letter of 22-Feb-2013, for a loan proposal of $350 million from ADB. KPWD would be the EA for the project, and KSHIP (the PIU in KPWD), would be the Implementing Agency. This arrangement is the same as for KSHIP 1 & 2. ADB’s concept approval for this project has been received in July-2014.

DPR consultants were recruited by KSHIP and mobilized in July-2015. ADB recruited a consortium of international and national consultant firms to carry out the project preparatory technical assistance (PPTA), and these mobilized in August 2015. Further, as per a limit placed by the Finance Department of the Government of Karnataka on the total cost of the project, it is proposed to carry out upgrading works for about 418 km of State Highways, under Hybrid Annuity mode in 3 packages. The projects entail 75% construction grant and 9 years of concession period which includes 2 years of Construction and 7 years of Operation and Maintenance.

Engineering Design: The engineering design for KSHIP III Project roads has been formulated as per latest IRC codes and also keeping in mind the best industry practices. The improvement proposal was based on capacity augmentation upon traffic study and forecast based on careful review of existing road network, future economic development in the region and safety of road users.
The improvement proposals and geometric design for the project road has been done generally following the latest manual IRC:SP:73 (2015) for sections proposed with 2-lane with paved shoulders with minimum Corridor of Impact (CoI) of 26 m & IRC:SP:84 (2014) for sections proposed with 4-lane divided carriageway with minimum CoI of 38 m.
The guiding principles for the improvement proposal formulated are summarized below,

1. Flexible Pavement has been adopted for the project road and is designed for a minimum period of 20 years.
2. Improved safety of Highway users, Pedestrians of the project road by provision of improved Junction designs, grade separated structures, pedestrian subway and other Road Safety Measures as per latest technology available in the market.
3. Minimal Impact on existing settlers in congested settlements by provision of realignment and Bypasses.
4. Improvement proposal is aimed at providing all weather access to public and social service facilities such as government agencies, health centers, and schools and tourist destinations
5. Design of Bridge Structures for 100 year storm, to account for climate change
6. Improved Storm water management system along the project road by provision of road side drains for both urban (covered lined drain) and rural sections (earthen drains) and also by provision of cross drainage structures.
7. To minimize impact on settlers and R&R requirement, project road passing through settlements is proposed with customized cross-sections within 16 m CoI for 2-lane urban section with footpath, drain and utility space on both sides and 20 m CoI for 4-lane urban sections with footpath, drain and utility space on both sides.
8. Improvement proposal also include road side facilities such as Bus Laybyes with bus shelters, Truck Laybyes, Street Lightings with solar power, land for Rest Areas & Toll Plazas, raised Pedestrian crossings & etc
9. Adequate safety provisions like crash barriers, road signs, road markings, speed humps etc have been made.

Environmental Safeguard: Environmental Screening of the project roads were carried out by the DPR Consultants as per ADB’s Safeguard Policy and Guidelines of Government of India for Project Categorization, requirement of Statutory Clearances as well as identification of critical environmental issues, which is summarized below.

As per ADB Safeguard Policy Statement 2009, proposed project roads are “Category B”. Road specific Initial Environmental Examination (IEE) Report has been prepared to identify significant potential environmental impacts associated with the construction and operational phases of the proposed development. Most of the adverse impacts of road project during construction period are temporary in nature. These impacts have been minimized through specific engineering solutions. Environment friendly construction methodology has been incorporated into the project design and Environmental Management Plan has been prepared incorporating various modern technologies and guidelines to reduce the environmental impacts of highway construction to make it a Green Highway. Environmental safeguard measures proposed to minimize the impact includes:

• Eccentric Geometric adjustments to minimize tree felling
• Plantation of native indigenous trees species with large canopy cover under avenue plantation
• Avoid cutting the giant trees to the extent possible
• Construction of noise barrier at sensitive receptors to minimize impact of traffic noise
• Slope stabilization using Coir Geotextile and Vetiver Grass (Bio-engineering)
• Preservation of fertile top soil
• Enhancement of road side water bodies and Phyco-Remediation of surface water using NUALGI
• Adequate number to cross drainage structures proposed to maintain natural flows of streams without changing the gorge of flow at highway site
• Rainwater Harvesting Structures to improve ground water level
• Provision of LPG in construction camp as fuel source

Social Safeguard: The social safeguards including the Entitlement Matrix for the projects have been devised as per the Government of India Act “The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013”( RFCTLARR Act, 2013), and the ADB Safeguard Policy Statement 2009,

The preferred approach for land acquisition for the project will be direct purchase of private land and structures based on the provisions of Section 46 of RFCTLARR Act, 2013, relevant policies of Government of Karnataka and ADB’s SPS (para. 25, Involuntary Resettlement Requirement 2, Appendix 2, p. 48). As per SPS requirements, a third party monitor will be recruited by ADB to monitor the fairness and transparency of the direct purchase process. The land parcels which cannot be purchased through Direct Purchase, will be acquired through the process laid out in the RFCTLARR Act 2013 and the Involuntary Resettlement Standard Requirement of the ADB’s Safeguards Policy Statement, 2009. Social Safe guard measures being a key component for implementation of the improvement proposal following measures have been adopted,

• Project Affected people (PAP) will be assisted in improving or at least regaining their pre-program standard of living;
• Consultation on compensation, disclosure of resettlement information to PAPs,
• Vulnerable and severely affected households will be provided special assistance;
• Potential Opportunities for PAPs to get Developmental Benefits through existing governmental schemes, income generation activities and skill training programs;
• Payment of compensation to PAPs including non-title holders (e.g., informal dwellers/squatters, and encroachers) for acquired assets at replacement rates;
• Payment of compensation and resettlement assistance prior to the contractor taking physical acquisition of the land and prior to the commencement of any construction activities;
• Provision of income restoration and rehabilitation;
• Establishment of appropriate Grievance Redressed Mechanisms.
• Capacity Building and Training

Project Description & Key Information

The project will upgrade about 419 kilometers (km) of state highways in line with the core road network (CRN) in the state of Karnataka to two- and four-lane widths with paved shoulders, depending on traffic requirements and reconstruction, widening, and strengthening of culverts and bridges. The works will be undertaken through concessions based on hybrid-annuity model with a 7-year annuity period, post construction. It will also implement suitable measures to improve identified critical accident spots across the state highways on the CRN and strengthen capacity and efficiency of KPWD. The project includes ISO 9001:2015 certification of quality management system of 247 offices of PWD and ISO 14001:2015 certification of environmental management system of 61 offices of PWD. international road assessment star rating and road safety audit of Karnataka’s core road network of 18000km will conducted.

• Loan no: 3619-IND
• Loan Approval Date: 08-12-2017
• Loan Signed date: 30-08-2018
• Loan Effectiveness date: 14-11-2018
• Project Cost: US$ 655 million
• ADB Share: US$ 346 million (Rev.US$ 344.65 million)
• GOK Share: US$ 202 million
• Private Sector: US$ 107 million
• Loan Closing date: 30-06-2024

The Project cost is Rs.5334 Crore including LAQ and other costs.  In order to leverage the funds and draw the private sector efficiency, the GOK has shifted the implementation strategy to PPP mode.  The Contracts have concession period of 9 years.  The project entails 75% construction grant from ADB and the cost towards the Annuity, O & M, LAQ, Utility shifting etc is borne by GOK

ADB shall finance the upfront grant to be paid to the Concessionaire during the construction period, along with Road Safety Component, a portion of IE Services and other Institutional Developmental services amounting to INR 2164 Crore. This is about 40% of the total project cost of INR 5334 Crore.

GoK shall contribute towards the Annuity, O&M and Interest payments, Physical contingencies, utility shifting, EMP, LARR, the remaining portion for IE services and R&R .GoK shall also contribute towards the ADB Financing Charges which are estimated at INR 122 Crores. The total GoK contribution is INR 3170 Crores. This is about 60% of the total project cost of INR 5334 Crore.

KSHIP-III The annual estimated expenditure (Government .Order dated 28-12-2017)

The Road works are being implemented with 2 years of construction period and 7 years of O & M.  A road length of 419 kms. has been taken up for improvement under Hybrid Annuity Model in three packages. The details of the roads and the contract packages to be implemented are as below:

1. Package-1

1. Two Laning with Paved Shoulder of Kollegal to Hannur (km 0.000 to km 4.900 along Kollegal and Madhuvanhalli Bypass and from km 66.888 to km 85.770 of SH-79, length 23.8 kms);
2. Two Laning with Paved Shoulder of Chintamani to AP Border (km 47.203 to km 86.977of SH-82, length 39.8 kms); and

1. Four Laning of Bengaluru (NICE Road) to Magadi (km 15.325 to km 50.850 of SH-85) and Two Laning with Paved Shoulder of connector from Magadi to NH 75 via Chikkamudigere and Iyandahalli (km 50.850 to km 66.150 of MDR), length 50.8 kms; with total length of 114.4 km in the State of Karnataka, India on Hybrid Annuity basis.

2. Package-2

Two Laning with Paved Shoulder of Magadi to near Somwarpeth (Km 51.000 to Km 221.833 of SH 85, excluding the following common sections with Huliyudurga bypass km 76.520 to 78.410, common portion with SH 84 between km 88.700 to km 90.380 and common portion with NH 150 A in Nagmangala km 111.960 to km 113.260), 166 km in the State of Karnataka, India on Hybrid Annuity basis.

3. Package-3

Two Laning with Paved Shoulder of Gadag to Honnali (Km 105.500 to Km 205.290 of SH 57 and Km 215.335 to Km 253.713 of SH 26), 138.2 km in the State of Karnataka, India on Hybrid Annuity basis.

The Roads will be improved to min. Two lane carriageway with 1.5m Paved shoulder and 1.0m earthen shoulder on either side with provision for four lane in urban settlement.  The reach from Bangalore (Nice Road) Magadi for a length of 35 Kms. will be developed to divide four lane carriageway.  The roads are designed for a design life of 20 years with all geometric corrections and road safety features.

Present Status

The Concessionaires and Independent Engineers have been appointed for all three packages under the project.

Civil Works: Presently work is in progress in all the three packages.

Milestone-1, 2, 3 & 4 completed in Package-1

Milestone-1, 2, 3 & 4 completed in Package-2

Milestone-1, 2, 3 & 4  completed in Package-3

Overall 347.16  km upto DBM layer completed (package 1 – 89.38  km, Package 2 –138.03  km & Package 3 – 119.75  km). 

Package -1

• Concession agreement signed on 20^th February 2019 and the appointed date declared on 1^st July 2020.
• Land acquisition: Total area required is  362 A 00.00 G out of which 360 A  13.75 G of land available and balance land acquisition is under process
• Construction work at site is in progress. as on March 2024, DBM layer for 89.38 km(78%) completed out of total length of 114.3 km.
• Milestone -1 completed on 07-03-2021
• Milestone -2 completed on 03-09-2021
• Milestone -3 completed on 15-06-2022
• Milestone -4 completed on 11-11-2023
• Milestones 1,2, 3 & 4 completed. Total payment of Rs. 553.30 Crore (including mobilisation advance of Rs.106.2 Crore) has been released .

Package -2

• Concession agreement signed on 18^th January 2019 and the appointed date declared on 12^th February 2020.
• land acquisition: Total area required is 513 A 04.25 G out of which 410 A 3.25 G of land available and balance land acquisition is under process
• Construction work at site is in progress and as on March 2024, DBM layer for 138.03 km (83%) completed out of total length of 166 km.
• Milestone -1 completed on 18-12-2020
• Milestone -2  completed on 05-06-2021
• Milestone -3  completed on 13-03-2022
• Milestone -4  completed on 30-06-2023
• Milestones 1,2,3 & 4 completed. Total payment of Rs. 773.40 Crore (including mobilisation advance of Rs.114.45 Crore) has been released.

Package - 3

• Concession agreement signed on 18^th January 2019 and the appointed date declared on 12^th March 2020.
• land acquisition: Total area required is 608 A  6.25 G out of which  607 A 07.50 G  of land availableand balance land acquisition is under process
• Construction work at site is in progress and  as on March 2024, DBM layer for 119.75  km (87%) completed out of total length of 138.2 km.
• Milestones 1 completed on 23-02-2022.
• Milestones 2 completed on 15-07-2022.
• Milestones 3 completed on 18-01-2023.
• Milestones 4 completed on 11-07-2023.
• Milestone 1,2,3, & 4 completed. Total payment of Rs. 473.38 Crore (including mobilisation advance of Rs 99.5 Crore) has been released.