Criteria adopted for shortlisting sub-projects under ERA

Before sanctioning of any Loan Asian Development Bank (ADB) prepares an elaborate document called Report and Recommendations of the President for Board of Directors (RRP).  This document in respect of Loan 2151-IND (Multi-sector Infrastructure Rehabilitation Project) which was the first stand-alone project with multi-sector infrastructure rehabilitation in J&K State with multilateral funding lays down the procedure for selection of sub-projects for execution as under:

1.                       In each sector i.e. Urban and Transport, a few sample projects were selected for detailed techno economic viability.  The team of experts subjected each of these samples to detailed due diligence on economic, environmental and social resettlement aspects. The results of the appraisals were used to create a standard appraisal format for expediting selection of other sub-projects on similar criteria.

2.                       In Transport sector the following three road sub-projects were studied in detail:

i)                   Kazikund-Kulgam road in Anantnag District

ii)                Humhama-Raithan–Arizol-Road in Budgam District 

iii)              Kanikadal Bridge in Srinagar District

3.                       Similarly under the Urban sector the ADB worked with the State on the appraisal of two sample projects.  The first sample sub-project covered the Water Supply Rehabilitation in Jammu of which there was a pressing need.  The second sub-project under Urban sector dealt with rehabilitation of drainage system in low lying area of Talab Tillo in Jammu. Similar exercise was done in respect of replacement of dilapidated water supply Transmission in Srinagar and rehabilitation of drainage system in the sub-urban area of Srinagar City which faced heavy water logging.

4.                        Repeating above exercise 130 sub-projects were first identified throughout the State under Transport and Urban sectors for upgradation/rehabilitation but subsequently a re-assessment was necessitated in December, 2007 due to 11 per cent slippage of Dollar exchange rate, doubling of Works Contract Service Tax in the State w. e. f. 01-04-2007, estimation of cost on account of shifting of utilities and allotment of sub-projects at a higher cost than the Engineer’s estimate and other variation. Some of the sub-projects were not found feasible on environmental and social & resettlement issues. The list of sub-projects that could not be taken up in MIRP (Loan 2151-IND) is enclosed as Annexure-A (54 sub-projects).  The balance 76 sub-projects have been taken up for execution throughout the State (75 allotted and 1 tendered).