Ex-Ante Evaluation (for Japanese ODA Loan)
1. Name of the ProjectCountry: Republic of India
Project: Delhi Eastern Peripheral Expressway Intelligent Transport Systems
Installation Project
Loan Agreement: March 31, 2017
Loan Amount: 6,870 million yen
Borrower: The President of India
2. Background and Necessity of the Project(1) Current State and Issues of the Road Sector in India
In India, roads and railways are the main modes of transport that back the domestictransport sector with roads accounting for 85.2% of the country’s passenger transport
and 62.9% of its cargo transport (2011). However, in the major urban centers of India,
where rapid urbanization has been taking place in recent years, traffic congestion
poses a serious problem due to underdeveloped roads and other transport
infrastructure, causing economic losses, which form a major challenge to furtherdevelopment. Given this challenge, comprehensive infrastructure development,
including road development, is regarded as a vital element of the country’s economic
growth, and special emphasis is being placed on development work in the road sector.
In the Delhi metropolitan area, economic losses derived from road traffic congestion
cause a major problem due to lack of insufficient ring road around the city itself
despite huge demand for cargo transport that is not bound for the city but just passes
through it. Heavy duty trucks are a major part of the problem. Although a traffic
regulation is imposed to stop cargo through traffic from flowing into the city during
daytime hours (from 8:00 a.m. to 9:00 p.m.), when the city has its busiest economic
activities, hordes of heavy duty trucks run into the city to pass through it outside theregulated hours and cause environmental issues, such as noise and air pollution, aswell as accidents and other problems, in addition to the economic losses stemmingfrom the road traffic congestion.
In response to this, the Indian Government has commenced construction of a Ring
Road around Delhi with a total length of 270 km as a detour route to reduce the influxof traffic into the city. The Western Peripheral Expressway (WPE), the western half of
the Ring Road (approx. 135 km), is being constructed by the State of Haryana, andthe Eastern Peripheral Expressway (EPE), the eastern half (135 km in total), is being
constructed by the National Highways Authority of India (NHAI), and are bothscheduled for completion in 2018. The aim is to streamline traffic flows in and aroundthe Delhi metropolitan area by building the western and eastern halves of the Ring
Road around the city of Delhi to control the cargo through traffic that goes into the city.

(2) Development Policies for the Road Sector in India and Role of the Project
The Indian Government promotes the National Highway Development Plan (NHDP)
to help deal with challenges faced by the country’s transport sector. According to theplan, comprehensive development of roads and other infrastructure is vital for
economic growth, and proactive improvements, including expanding the width ofexisting roads, should be made. Actually, the NHAI puts in a lot of work to build newroads and widen existing ones to promote this NHDP and help resolve the challenges
faced by the transport sector of India. In big cities like the Delhi metropolitan area,
however, there is a limit to improvement of roads, due to the high population density
and constraints on land acquisition, and thus it is necessary to make the most of theroads they have now. This is the reason that the NHAI’s policy for these big cities is totake advantage of Intelligent Transport Systems (ITS) to streamline traffic throughmaximization of the traffic capacity of individual roads, for example by reducing tollgate waiting times using a toll collection system, and preventing traffic congestion andreducing accident response time using a traffic control system. The purpose of theProject is to introduce ITS1 that combine (1) a Toll Management System and (2) an
Advanced Traffic Management System to the EPE, which is being constructed by theNHAI and will have to face enormous traffic demand, presumably leading tochallenges such as increased traffic accidents. The Project is also consistent with thedevelopment policy of the Indian Government, which places great importance on therole of comprehensive development of roads and other infrastructure in the country’s
economic growth, in the sense that it contributes to streamlining traffic and facilitating
regional economic growth.
(3) Japan and JICA’s Assistance Policies and Operations in the Road Sector
Japan’s Country Assistance Policy for India (March 2016) states that it is necessaryto develop important infrastructure required to ensure continued investments and ahigh economic growth while India needs to achieve comprehensive and stable higheconomic growth. In addition, the policy sets “enhancement of regional connectivity”
as one of its priority areas and states that with a view to removing the bottlenecks in
the infrastructure constraining investment and growth, it is necessary to support thedevelopment of transport infrastructure that will act as transport hubs and networks, tostrengthen connectivity among major industrial cities and economic zones, as well as
regional connectivity, in the country. Furthermore, JICA's Country Analysis Paper for
India (March 2012) also regards the development of industrial and urban
infrastructure as one of its priority areas and indicates the necessity of providing
assistance for the development and improvement of infrastructure contributing to theacceleration of regional economic development and streamlining of logistics, including
roads, mainly in the six major urban centers of the country (including Delhi) that are
1

It is planned that simple ITSs will be introduced to the WPE using Radio Frequency Identification(RFID) technology.

expected to produce particularly marked positive effects on resolving bottlenecks ineconomic growth. As of February 2017, JICA received authorization to provide ODA
loans to India in the amount of 175.8 billion yen for 10 projects in the road/bridge
sector (which accounts for 14% of the transportation sector in India). Also, in the areaof Technical Cooperation, JICA has implemented the Institutional Development
Project on the Supervision for Highway and Expressway Operation, Management andMaintenance to help develop management and maintenance manuals and prepare
technical specifications. Besides these, the Japan Chamber of Commerce andIndustry in India has submitted several written proposals to the Indian Government torequest early completion of the EPE in the past.
(4) Other Donors’ Activities
The assistance provided by the World Bank includes expanding and improving theroad network in the state of Mizoram to improve transport connectivity between therural and urban parts of the state, repairing state roads in the state of Gujarat,
supporting capacity building for the Government of Gujarat Roads and Buildings
Department and providing technical assistance to the NHAI.
The Asian Development Bank is providing support for capacity building for theJharkhand Roads Construction Departmentand is planning to provide assistance tothe sustainable urban transport system of the city of Aizawl in the state of Mizoram
through the introduction of environmentally friendly electric bicycles, etc., in addition tothe development and improvement of pedestrian and bicycle roads.
(5) Necessity of the Project
The Project is consistent not only with the development themes and policies of theIndian Government, but also with the assistance policies of Japan and JICA, as wellas the results of their analyses. Moreover, given the potential contribution the Project
can make to Sustainable Development Goal (SDG) 11, “make cities and humansettlements inclusive, safe, resilient and sustainable,” it can be deemed as highly
necessary and relevant for JICA’s assistance.
3. Project Description(1) Project Objective
The objective of the Project is to introduce ITSs to the EPE, which the NHAI isconstructing in the Delhi metropolitan area, to contribute to facilitating regional
economic growth in the metropolitan area by enabling smooth traffic flow to meet therapidly increasing amount of traffic.
(2) Project Site/Target Area
Delhi Metropolitan Area (States of Uttar Pradesh and Haryana)(3) Project Components
1） ITS equipment
・Toll Management System (hereinafter referred to as “TMS”) (all toll collection

center equipment, including RFID-based ETC systems and surveillance cameras)
・Advanced Traffic Management System (hereinafter referred to as “ATMS”) (alltraffic control center equipment, including traffic monitoring cameras, anomalymonitoring cameras, traffic volume measuring instruments, weather observation
devices, variable road signs, highway radio and optical fiber cables)2）Consulting services (detailed design reviews, construction supervision andenhancement of organization)(4) Project Cost
11,738 million yen (Loan amount: 6,870 million yen)(5) Schedule
March 2017–December 2022 (70 months in total). Project completion is defined as
the commencement of service (December 2018).
(6) Project Implementation Structure1) Borrower: The President of India
2) Guarantor: none
3) Executing Agency: National Highways Authority of India (NHAI)
4) Operation and Maintenance System: Operations and maintenance work are to
be outsourced to private-sector companies under the supervision andresponsibility of the NHAI.
(7) Environmental and Social Considerations / Poverty Reduction / SocialDevelopment
1) Environmental and Social Considerations① Category: C② Reason for Categorization: The Project is classified as Category C because itis expected to only have minimum negative impact on the environment as theroad construction work is conducted by the executing agency and the main
purpose of the Project is to install ITSs on the expressway although it isclassified into the road sector under the “Japan International Cooperation
Agency Guidelines for Environmental and Social Considerations” (published inApril 2010).
2) Poverty Reduction: N/A
3) Social Development: As the Project will involve a large number of local workers in
the delivery and installation of equipment, it is planned that the instructions tobidders will contain a provision on HIV/AIDS prevention requiring contractors tocooperate in its preventive measures against HIV/AIDS as part of its efforts tominimize HIV infection risks during these operations.
(8) Collaboration with Other Donors: N/A(9) Other Important Issues: N/A

4. Target Outcomes(1) Quantitative Effects
1) Operation and Effect Indicators
Indicator

Baseline(Recorded in 2016*)

Target (2020)[2 years after projectcompletion]

Traffic accident rate
(1,000 vehicles/km**)(Only the EPE section coveredby the Project)NA

0.018%

Average emergency responsetime(Average time fromdetection/reporting to arrival onsite)

NA20 minToll gate waiting line length(average)

NA0m*Not recorded because the EPE is still under construction.
**The rate of accidents among 1,000 vehicles/km is to be calculated based on thenumber of accidents (annual average) on the whole extension of the EPE.
(2) Qualitative Effects
The expected qualitative effects of the Project include increased comfort of roadtransport (in the EPE section), increased convenience resulting from more punctual
trips in the Delhi metropolitan area, urban environmental improvements, such as
mitigated congestion in the city of Delhi, and slowed climate change due to curbed
greenhouse gas (GHG) emissions.
(3) Internal Rate of Return
Based on the conditions indicated below, the economic internal rate of return(EIRR) of the Project will be 9.0%, while the financial internal rate of return (FIRR)
cannot be calculated as ITS devices cannot generate revenues in themselves.
【EIRR】
Cost: Initial cost, renewal cost, operation cost and maintenance cost (allexcluding tax)
Benefit: Shortening of time and reduction of traffic accidents
Project Life: 25 years

5. External Factors and Risk Control
・The political and economic conditions in India, particularly in and around the target
area, will not worsen. No large-scale natural disasters will hit the country/area.
・The policy of the Indian Government on ITS introduction and the organization andoperations of the executing agency will not be changed.
・There will not be any drastic change in the use of land or facilities in the target area,such as cancellation of use of the expressway.
6. Lessons Learned from Past Projects(1) Results of Evaluation of Similar Past Projects
The ex-post evaluation of the Project for the Improvement of Traffic Flow inKampala City, a grant aid project for Uganda, revealed that signals were notmaintained properly as the result of replacement of engineers to whom knowledge ofthe technology had been transferred during the project. A lesson from this is that amaintenance system needs to be established from a longer-term point of view.
(2) Lessons for the ProjectIn the Project, the plan is for the ITS contractor to continue operating andmaintaining the ATMS after the ITS is introduced until December 2022 (not yet
finalized), so that the technology, etc. required for the maintenance work can betransferred to NHAI staff members and the local operator that will take on theoperation and maintenance of the ATMS later. This technological transfer is intended
as an opportunity to establish a medium- to long-term operating and maintenancesystem.
7. Plans for Future Evaluation(1) Indicators to be used
1） Traffic accident rate (1,000 vehicles/km)
2） Average emergency response time (min)3） Toll gate waiting line length (average) (m）4） Economic internal rate of return (EIRR) (%)(2) Timing of the next evaluation
Two years after project completion-END-