road construction nhdp 2014

NATIONAL HIGHWAYS

DEVELOPMENT PROJECT

1 (c) 2014 IndiaTransportPortal.com & Abhishek Srivastava

GET

THE

FACTS

2

Methodology & liability

© 2014, IndiaTransportPortal.com

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.

3

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 have been

awarded to this project

NHDP has been implemented in 1998

It has 7 phases and is led by the NHAI

I NHDP PHASES

AT A GLANCE


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5

PHASE I


EAST-WEST corridor

Completed in Phase II (Porbandar to Sichar)

16 stretches 291 kms 1,006 rs cr

GOLDEN quadrilateral

Delhi – Mumbai – Chennai – Kolkata - Delhi

128 stretches 5,847 kms 24,893 rs cr

NORT-SOUTH corridor Completed in Phase II (Srinagar to

Kanyakumari)


OTHERS Including port connectivity


TOTAL 199 stretches 7,522 kms 32,014rs cr

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PHASE I - Where do we stand?

NHAI has funded

42% of the Phase I

total length

44% of the Phase I

total funding


106 (1,5%)

7,415 (98,5%)

Kilometers under

implementation (5 stretches)

Kilometers completed

7

PHASE II


EAST-WEST corridor

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


NORT-SOUTH corridor 189 kms, 1,510 rs cr were part of the Phase I


OTHERS 11 stretches 486 kms 3,002 rs cr

TOTAL 363 stretches 6,616 kms 52,977 rs cr

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PHASE II – Where do we stand?


NHAI has funded

32% of the Phase

II total length

34% of the Phase

II total funding

4,504 (68%)

1,753 (26,5%)

359 (5,5%) Kilometers completed

Kilometers under

implementation

Kilometers balanced for

award

9

Focus on EW-NS corridors


EAST-WEST corridor (Phase I)


NORT-SOUTH corridor (Phase II)


EAST-WEST corridor (Phase II)


NORT-SOUTH corridor (Phase I)


TOTAL EST-WEST 96 stretches 3,434 kms 23,710 rs cr

TOTAL NORTH-SOUTH 104 stretches 3,674 kms 28,779 rs cr

TOTAL CORRIDORS 200 stretches 7,108 kms 52,489 rs cr

5,013 (70,5%)

1,757 (24,7%)

338 (4,8%)


Kilometers under

implementation


award

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Corridors - Where do we stand?


NHAI has funded

34% of the

corridors total

length

35% of the

corridors total

funding

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PHASE III


PHASE III a 81 stretches 6,151 kms 36,566 rs cr

Phase III b 72 stretches 6,782 kms 48,126 rs cr

TOTAL 153 stretches 12,933 kms 84,692 rs cr

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.

2174 (16,8%)

8250,5 (63,8%)

2508 (19,4%)


Kilometers under

implementation


awards

NHAI has recently funded 1

stretch of 14 kms.

11% of the total length and

total funding are on annuity

scheme.

69% of the total length and

88% of the total funding

are on BOT scheme.

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PHASE III – Where do we stand?


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PHASE IV


PHASE IV

Under implementation


Phase IV aims to upgrade and strengthen single/intermediate/two lane national highways to two

lane with paved shoulders.

TOTAL PHASE IV (Planned)

14,799 kms

(total length)

NHAI is in charge of 1% of the length and

0,5% of the total funding (for stretches

that are under implementation).

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 V 52 stretches 6,522 kms 42,985 rs cr

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.

153 (2%)

2,441 (37,4%)

3,928 (60,2%)


Kilometers balance for award

Kilometers under

implementation

All stretches under implementation

are on a BOT scheme.

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*


16

18594,5 (38,5%)

14246 (29,4%)

15550 (32,1%)

Kilometers under implementation


Kilometers balanced for award

* 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).


II NHDP ROAD

CONSTRUCTION PACE:

Phase III-V

17

18

PHASE III


From January to December 2012,

1577 kilometers have been constructed

What has been done

Hyderabad - Vijayawad

Fastest construction pace

(whole phase III since beginning)

5,63 kms per month Soma - NCC - Maytas (JV)

Slowest construction pace

(whole phase III since beginning)

0,24 kms per month

Kudapa - Mydukur-Kurnool

Fastest phase III construction pace (whole 2012)

7,12 kms per month Aurang - Raipur

Slowest phase III construction pace (whole 2012)

0,09 kms per month

4,3 kms per day

12,2 months

Average delay for the 28 completed stretches

Bijapur - Hungund Section has been completed

11 months ahead of the deadline.

11,41 months (land acquisition hurdles, environmental

clearances and consulting failures)

Average time between LOA and the start of implementation (note that there was not such a delay for the NHAI funded stretches)

It took 25 months for the Pune - Sholapur Pkg-II stretch.

19

PHASE IV


Only 5 stretches are under implementation (5 stretches). 23

are awaiting implementation (23 stretches)

What has been done

Nagpur - Betul

Fastest construction pace (whole phase IV)

36 kms in December 2012

Only 2 stretches are in progress (62 kilometers from January

to December 2012) = 0,2 kms per day

13,8 months

Average time between LOA and the start of implementation

It took 23 months for the 2-Laning of Agra - Aligarh stretch and

19 months for the 2-Laning of Raibariely to Allahabad.

JMC Projects (8 kilometers

in december 2012)

Fastest contractor

JMC Projects was also one

of the fastest Phase III

contractor

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PHASE V


From January to December 2012,

566,92 kilometers have been constructed

What has been done

Krishnagiri - Walajhapet

Fastest Phase V construction pace (whole 2012)

7,42 kms per month

0,7 kms per day

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

Varanasi - Aurangabad

Slowest Phase V construction pace (whole 2012)

0,17 kms per month

Nellore-Chilkaluripet

Fastest construction pace

(whole Phase V since beginning)

6,45 kms per month Chennai - Tada

Slowest construction pace

(whole Phase V since beginning)

0,28 kms per month

20

1,6 months

Average delay for the 3 completed stretches

12 months (land acquisition hurdles, environmental

clearances and consulting failures)

Average time between LOA and the start of implementation (note that there was not such a delay for the NHAI funded stretches)

It took 20 months for the Chandikhol – Jagatpur -

Bhubaneswar stretch.

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III NHDP PROCESS

22


From Central road fund to PPP…

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:

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

Toll 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.

Build Operate

Transfer

Annuity scheme

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.

Central Road

Fund

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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.

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.

…To EPC…


EPC:

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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.

…To tackle great challenges


INCREASE IN TRANSPORTATION NEEDS

• New truck sales will grow by an extra 60% for the current decade (300,000 per year),

• India’s 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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