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NATIONAL HIGHWAYS DEVELOPMENT PROJECT

GET THE FACTS


(c) 2014 IndiaTransportPortal.com & Abhishek Srivastava

Methodology & liability


DATA USED To draw up this document, India Transport Portal and Abhishek Srivastava used publicly and freely available data (mainly from the NHAI website). Data used have been gathered in a document available on our portal (Road Construction Data). LIABILITY Neither India Transport Portal nor Abhishek Srivastava should be held responsible for any methodological bias, omission or calculation errors.

The only goal of this document is to create an easy to understand road construction infographics.

LAST UPDATE The last update was done on October 31, 2013. Regarding the 2nd part of this document, the NHDP road construction pace is based on data gathered before December 2012.

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WHAT IS NHDP?

49, 260 kms

of roads and highways work and construction in order to boost economic development of the country

USD 71 billion
awarded to this project

have been

1998 It has 7 phases and is led by the NHAI


NHDP has been implemented in
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I NHDP PHASES AT A GLANCE


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PHASE I

EAST-WEST GOLDEN
Completed in Kanyakumari)

corridor

16 stretches

291 kms

1,006 rs cr

Completed in Phase II (Porbandar to Sichar)

quadrilateral corridor
to

128 stretches

5,847 kms

24,893 rs cr

Delhi Mumbai Chennai Kolkata - Delhi

NORT-SOUTH
Phase II

(Srinagar

31 stretches

689 kms

1,510 rs cr

OTHERS
Including port connectivity

24 stretches

695 kms

4,605 rs cr

TOTAL
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199 stretches

7,522 kms

32,014rs cr

PHASE I - Where do we stand?


106 (1,5%)

Kilometers under implementation (5 stretches) Kilometers completed

NHAI has funded


42% of the Phase I total length 7,415 (98,5%)

44% of the Phase I total funding

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PHASE II

EAST-WEST

corridor

80 stretches

3,143 kms

22,704 rs cr

291 kms, 1,006 rs cr were part of the Phase I

NORT-SOUTH OTHERS TOTAL


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corridor

73 stretches

2,985 kms

27,269 rs cr

189 kms, 1,510 rs cr were part of the Phase I

11 stretches

486 kms

3,002 rs cr

363 stretches

6,616 kms

52,977 rs cr

PHASE II Where do we stand?

359 (5,5%)

Kilometers completed Kilometers under implementation Kilometers balanced for award

1,753 (26,5%)

NHAI has funded


32% of the Phase II total length 4,504 (68%) 34% of the Phase II total funding

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Focus on EW-NS corridors

EAST-WEST corridor
(Phase I)

16 stretches

291 kms

1,006 rs cr

EAST-WEST corridor
(Phase II)

80 stretches

3,143 kms

22,704 rs cr

TOTAL EST-WEST
NORT-SOUTH corridor
(Phase I)

96 stretches

3,434 kms

23,710 rs cr

31 stretches

689 kms

1,510 rs cr

NORT-SOUTH corridor
(Phase II)

73 stretches

2,985 kms

27,269 rs cr

TOTAL NORTH-SOUTH TOTAL CORRIDORS


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104 stretches

3,674 kms

28,779 rs cr

200 stretches

7,108 kms

52,489 rs cr 9

Corridors - Where do we stand?


338 (4,8%)

Kilometers completed

1,757 (24,7%)

Kilometers under implementation


Kilometers balanced for award

NHAI has funded


34% of the corridors total length 35% of the corridors total funding

5,013 (70,5%)

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PHASE III
Phase III aims to build 4/6 lanes for the national highways that have high density corridor between state capitals, tourist places and economically important areas.

PHASE III a Phase III b TOTAL

81 stretches

6,151 kms

36,566 rs cr

72 stretches

6,782 kms

48,126 rs cr

153 stretches

12,933 kms

84,692 rs cr

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PHASE III Where do we stand?


Kilometers completed

2508 (19,4%)

2174 (16,8%)

Kilometers under implementation Kilometers balanced for awards

NHAI has recently funded 1 stretch of 14 kms. 11% of the total length and total funding are on annuity scheme. 8250,5 (63,8%) 69% of the total length and 88% of the total funding are on BOT scheme.

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PHASE IV
Phase IV aims to upgrade and strengthen single/intermediate/two lane national highways to two lane with paved shoulders.

PHASE IV
Under implementation

35 stretches

4,557 kms

32,442 rs cr

TOTAL PHASE IV
(Planned)
NHAI is in charge of 1% of the length and 0,5% of the total funding (for stretches that are under implementation).

14,799 kms (total length)

1% of the total length and more than 10% of the total funding are on annuity scheme (for stretches under implementation).

81% of the total length and more than 84% of the total funding are on BOT scheme (for stretches under implementation).

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PHASE V
Phase IV includes 5,700 kms of golden quadrilateral and 1,800 kms of other selected stretches. The aim is to turn existing 4 lane highways into six lane ones.

PHASE V

52 stretches

6,522 kms

42,985 rs cr

Kilometers completed
153 (2%)

Kilometers balance for award Kilometers under implementation


2,441 (37,4%)

All stretches under implementation are on a BOT scheme.

3,928 (60,2%)

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PHASE VI
It envisages the development of expressways to connect major commercial and industrial townships (Chennai Bangalore: 334 kms, Kolkata Dhanbad: 277 kms, Vadodara Ahmedabad: 400 kms).

PHASE VII
It envisages the construction of 700 kms of ring roads, bypasses, grade separators, flyovers, elevated roads, tunnels, road over bridges, underpasses, service roads etc. 2 stretches are under implementation.

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NHDP PHASES I - V*

Kilometers under implementation


15550 (32,1%) 18594,5 (38,5%)

Kilometers completed Kilometers balanced for award

14246 (29,4%)

* This diagram supposes that Phase IV 10,242 kilometers, which are not detailed in the NHAI website, are balanced for award (as 4,557 kms are under implementation).

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II NHDP ROAD CONSTRUCTION PACE: Phase III-V


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PHASE III
What has been done From January to December 2012, 1577 kilometers have been constructed Fastest construction pace (whole phase III since beginning) Hyderabad - Vijayawad 5,63 kms per month 4,3 kms per day

Slowest construction pace (whole phase III since beginning) Soma - NCC - Maytas (JV) 0,24 kms per month

Fastest phase III construction pace (whole 2012) Kudapa - Mydukur-Kurnool 7,12 kms per month

Slowest phase III construction pace (whole 2012) Aurang - Raipur 0,09 kms per month

Average delay for the 28 completed stretches


12,2 months Bijapur - Hungund Section has been completed 11 months ahead of the deadline.

Average time between LOA and the start of implementation (note that there was not such a delay for the NHAI funded stretches) 11,41 months (land acquisition hurdles, environmental clearances and consulting failures) It took 25 months for the Pune - Sholapur Pkg-II stretch. 18
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PHASE IV
What has been done Only 5 stretches are under implementation (5 stretches). 23 are awaiting implementation (23 stretches) Only 2 stretches are in progress (62 kilometers from January to December 2012) = 0,2 kms per day

Fastest construction pace (whole phase IV)

Fastest contractor JMC Projects (8 kilometers in december 2012) JMC Projects was also one of the fastest Phase III contractor

Nagpur - Betul

36 kms in December 2012

Average time between LOA and the start of implementation 13,8 months It took 23 months for the 2-Laning of Agra - Aligarh stretch and 19 months for the 2-Laning of Raibariely to Allahabad.

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PHASE V
What has been done From January to December 2012, 566,92 kilometers have been constructed Fastest construction pace (whole Phase V since beginning) Nellore-Chilkaluripet 6,45 kms per month 0,7 kms per day

Slowest construction pace (whole Phase V since beginning) Chennai - Tada 0,28 kms per month

Fastest Phase V construction pace (whole 2012) Krishnagiri - Walajhapet 7,42 kms per month

Slowest Phase V construction pace (whole 2012) Varanasi - Aurangabad 0,17 kms per month

Average delay for the 3 completed stretches 1,6 months

Average time between LOA and the start of implementation (note that there was not such a delay for the NHAI funded stretches) 13,8 months 12 months (land acquisition hurdles, environmental clearances and consulting failures) It took 23 months for the 2-Laning of Agra - Aligarh stretch and It took 20 months for the Chandikhol Jagatpur 19 months for the 2-Laning of Raibariely to Allahabad Bhubaneswar stretch. 20
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III NHDP PROCESS

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From Central road fund to PPP


Central Road Fund
It has been established by the Parliament in order to fund the development and maintenance of National and State highways and rural roads. The fund comes from cess collection of petrol and diesel. Because of the traffic increase, the traditional system of financing road projects through budgetary allocation has become inadequate to fit the NHDP. So India decided to enforce road construction through PPP. NHAI is the apex Government body for implementing the NHDP. All contracts whether for construction or BOT are awarded through competitive bidding (ownership of land for roads is public in India).

Private Public Partnership:

Build Operate Transfer Toll scheme

In this scheme, a private entity, the concessionaire, receives a concession from the public sector to finance, design, construct and operate the road or highway. The private entity recovers the upfront cost with the interest and a return of investment because the traffic as well as toll collection risks are borne by the concessionaire.

Build Operate Transfer Annuity scheme

In this scheme, the concessionaire is required to meet the entire upfront cost. It recovers the investment and a predetermined cost of return out of annuity payable by the client who processes to the tolling.

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To EPC
But after 15 years of partnership, the government failed to get an encouraging response from the private sector. On January 2013, C. P. Joshi said that India was not able to construct 20 kilometers per day because of the lack of bidders due to unfavorable economic environment. Indeed, bankers had become very cautious in lending to such project.

PPP failure

So, and even if that does not mean the end of PPP, the government decided to award road projects (5,000 kms) under the Engineering Procurement and Construction model (EPC) from now on.

EPC:

Under the EPC model, the government funds the entire project and the contractor will accept the risk and responsibility for both the design and the construction of the work. Of course, NHAI still acquires the land for the project.

Issues around road projects are worth RS 17,000 crores involved in arbitration and litigation cases. The private sector is asking for a road regulator to address these issues so NHAI would not play various roles anymore.

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To tackle great challenges


GROWING POPULATION
India is the second most populous country, growing at 18 million per year and will overcome China by 2030, India has 65% of the population below 35, 50% below 25 and 33% below 15, The Indian middle class is 250-300 million and will reach 600 million by 2030.

INCREASE IN TRANSPORTATION NEEDS


New truck sales will grow by an extra 60% for the current decade (300,000 per year), Indias truck fleet number will reach 8 million by 2020, 1000 billion tons for the current decade (to be reached in 2020), Growing number of personal vehicles.

BLATANT NEED OF TRANSPORTATION INFRASTRUCTURE


Roads carry 90% of passenger traffic, Roads carry 65% of freight traffic.

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