Ex-Ante Evaluation
South Asia Division 1, South Asia Department
Japan International Cooperation Agency
1. Name of the Project（１） Country: Republic of India (India)（２） Project Title: The Project for the Construction of Chennai Peripheral Ring
Road (Phase 2))（３） Project Site/ Target Area: Chennai metropolitan area, State of Tamil
Nadu (Total population approx. 8.9 million (2011))
Loan Agreement: February 20, 2024
2.

Background and Necessity of the Project（１）Current State and Issues of the Road Sector and Priority in India
Along with railways, roads are a major mode of transportation in India, carrying
85.2% of passenger traffic and 62.9% of freight traffic. In recent years, the numberof registered vehicles in India has increased 2.5 times in the last decade, fromabout 90 million in 2006 to 230 million in 2016, due to population growth,economic growth, and other factors (India Statistical Yearbook (2018)). As
passenger and freight traffic continues to increase and traffic congestion, which
is becoming increasingly severe in metropolitan areas, hinders economic
development, there is a significant need for road infrastructure development tosupport the rapidly growing traffic and transportation demand.
Similarly, in the Chennai metropolitan area, as the population grew fromapproximately 6.56 million in 2001 to 8.9 million in 2011 (Census 2011), thevolume of passengers and traffic continued to increase along with economic
growth, further exacerbating chronic traffic congestion. The state government has
set a goal of high economic growth in its “Vision Tamil Nadu 2023” (enacted in2012) and is emphasizing the promotion of logistics through the development ofroad infrastructure to achieve this goal and plans to construct a peripheral ringroad to meet further increases in traffic demand in the future.
The Chennai metropolitan area facing the Bay of Bengal, is the gateway toSoutheast Asia and serves as one of the key transportation and logistics hubs inIndia and other countries. In addition, the Chennai metropolitan area is known as
Industrial hub as well and there are approximately 600 Japanese companies inIndustrial sector such as automobile industry in the area. In recent years, however,
the Chennai Port in the center of the city has experienced a shortage of handlingcapacity and improving access to the Ennore Port in the northern part of the city,which is being developed and utilized, has become an urgent issue. With thisbackground, the Government of Tamil Nadu requested the ODA loans project“The Project for the Construction of Chennai Peripheral Ring Road (Phase 1)”(hereinafter referred to as “Phase 1”) (Loan Agreement signed in March 2019) tobuild a Section 1 of the Peripheral Ring Road (see attached for the section), which
is located in the northern part of Chennai metropolitan area and provides anaccess road to the Ennore Port, and introduce an Intelligent Transportation
System (hereinafter referred to as "ITS") to this section.
In the southern part of the Chennai metropolitan area, there are industrial parks
where many manufacturing companies are concentrated, such as “One HubChennai,” an industrial park exclusively for Japanese companies, and access tothe northern port of Ennore and to meet transportation needs is an issue.
Currently, access from the southern part of the metropolitan area to the northern
port of Ennore must be via the city center, which causes traffic congestion,
especially for large cargo trucks and other vehicles passing through the center ofthe city. The ODA loans “Project for Installation of Chennai Metropolitan AreaIntelligent Transport Systems” (Loan Agreement signed in March 2018) isexpected to reduce the total travel time in the most congested section of the city
center (65 km in total for 5 lines) during peak hours to some extent, by about 10%(from 152 minutes to 137 minutes). However, further road capacity expansion isneeded to meet the growing transport demand in the Chennai metropolitan area,
which is expected to grow 3.7 times by 2036 compared to 2017.
The Project for the Construction of Chennai Peripheral Ring Road (Phase 2)(hereinafter referred to as “the Project”) will construct a new road in Section 5 andintroduce ITS in Section 2 to 4, which are under construction or have alreadybeen constructed by India. Section 5 is the last remaining section to complete thePeripheral Ring Road, which is expected to ease traffic congestion in the Chennai
metropolitan area and improve connectivity to the southern region. In addition to
being an important Project in line with the above-mentioned “Vision Tamil Nadu
2023” policy of the Government of Tamil Nadu, it is also an important part of theChennai-Bengaluru Industrial Corridor (CBIC) concept, which is a high priority for
the Government of India. The Project is also strongly requested by Japanesecompanies participating in Japanese industrial parks and is an important projectfrom the perspective that it may lead to the future development of Japaneseindustrial parks and the possibility of Japanese companies moving into theseareas.
（２）Japan's and JICA's Policy Cooperation and Operations in the Road Sector.
(especially in relation to key foreign policies such as the Free and Open IndoPacific PartnershipCountry Assistance Policy for India (March 2016) formulated by theGovernment of Japan stipulates “enhancement of connectivity” as a priority area,and states that Japan will support the development of transport infrastructure tostrengthen connectivity within the country's major industrial cities and economic
zones, and between regions, with a view to removing infrastructure bottlenecks
related to investment and economic growth. Another priority area is“strengthening industrial competitiveness,” and Japan will support thedevelopment of transportation networks in metropolitan areas through theconstruction of metro lines, outer ring roads, etc., in order to reduce traffic
congestion, improve the efficiency of passenger and freight transportation, andimprove the urban environment. The JICA Country Analysis Paper for India(March 2018) identifies strengthening industrial competitiveness as a priority area,and states that in order to make economic growth more stable, the developmentof high-standard roads and other critical infrastructure that contribute to thecompetitiveness of manufacturing and other industries should be undertaken.
The JICA’ Global Agenda (JICA’s Strategies for Global Development) forTransportation also emphasizes the importance of removing bottlenecks in urban
areas, developing traffic control systems that contribute to congestion
management and traffic safety, and developing roads to international ports thatwill serve as logistics hubs for “building a global network, thus the Project isconsistent with these policies and analyses.
（３）Other Donor’s Activities
In the road sector, the World Bank has provided support for a state roaddevelopment project in Tamil Nadu (approved in 2003; US $348 million) as wellas Phase 2 of the same project (approved in 2015; US $300 million). Meanwhile,
the Asian Development Bank has provided support for the construction of stateroads in other states including the Karnataka State Highways Improvement
Project (approved in 2010; US $305 million) and Rajasthan State Highway
Investment Program (approved in 2017; US $500 million).
3.

Project Description（１）Project Description

① Project Objective
The objective of the Project is to meet the rapidly increasing road traffic demandin Chennai metropolitan area, alleviate traffic congestion and strengthen
connections to the southern part of the state by constructing Section 5 ofPeripheral Ring Road and introducing ITS in Section 2 to 5, thereby promoting
regional economic development.
② Project Components
１） Road construction (26.3 km of Peripheral Ring Road (Section 5): 25.5
km of new section, 0.8 km of existing road improvement, 6 two-way main
roads, 4 two-way service roads, bridges and underpasses, etc.)２）

ITS facility construction and maintenance (Toll collection system (5locations) and traffic control system in sections 2 to 5, including
contractor procurement for ITS operation (Note))

３）

Consulting services (detailed design review (road construction), basic
design review (ITS), bidding assistance, construction supervision,technology transfer for ITS operation and maintenance, implementationof environmental and social considerations, etc.)③ Project Beneficiaries (Target Groups)
Direct beneficiaries (users of the improved roads: approx. 87 million peopleper year)
Ultimate beneficiaries (population of the Chennai metropolitan area that will
benefit from economic development around the improved road: approximately
8.9 million people)（２） Estimated Project Cost:
91,832 million yen (Japanese ODA loan: 49,847 million yen)
（３） Schedule (Cooperation Period):
September/2023-June/2033 (118 months) Completion of all facilities (June2030) is considered completion of the Project（４） Project Implementation Structure１）Borrower: President of India
２）Guarantor: N/A
３ ） Executing Agency: Highways and Minor Ports Department (HMPD),
Government of Tamil Nadu
４）Operation and maintenance system:
After completion of the Project, the procurement, installation, andmaintenance of the ITS (toll collection system and traffic control system)

equipment and materials will be carried out by the contractor to be procured
under the Project. The road maintenance and operation of the ITS will be carriedout by a separate contractor to be hired with HMPD's own funds under the
responsibility of HMPD. There are several companies in India that haveexperience in the maintenance and management of materials and equipment for
toll collection systems, and HMPD has sufficient supervisory experience. On theother hand, since the traffic control system requires advanced technology for the
maintenance and operation of the facilities, the TOR for consulting services will
include technology transfer to HMPD for the maintenance and operation of thetraffic control system in order to establish an appropriate operation andmaintenance management system. It has been confirmed that the operation andmaintenance costs will be borne by toll fee and budget allocation from the state
government.
（５） Collaboration and Sharing of Roles with Other Donors:
１） Japan's Activities: None
２） Other Donor’s Activities: None
（６） Environmental and Social Consideration① Category: A② Reason for Categorization
The project falls into the Road sector and is likely to have significant adverse
impact due to its characteristic under the JICA Guidelines for Environmental
and Social Considerations (January, 2022)③ Environmental Permit:
The Environmental Impact Assessment (EIA) for all sections of the Project
for the Construction of Chennai Peripheral Ring Road, including the Project,
was created by HMPD and approved by the Tamil Nadu State
Environmental Impact Assessment Authority (TNSEIAA) in August 2018.
The EIA and Social Impact Assessment (SIA) for Section 5, which is thesubject of the Project, were approved by HMPD in March 2023.
④ Anti-pollution measures:
During construction, air pollution, water pollution, waste, noise/vibration,and soil contamination are expected to occur. Necessary measures will betaken to minimize these effects by installing anti-pollution membranes atconstruction sites near water spraying and water areas, installing waste
disposal facilities at worker accommodation facilities, installing soundbarriers, and installing oil separators. In addition, necessary measures will

be taken to minimize noise and vibration during the operation phase,including the installation of sound insulation walls.
⑤ Natural environment:
The Project area is not located in or near a sensitive area such as a nationalpark, etc., and is expected to have minimal undesirable effects on thenatural environment. Although approximately 3,400 trees are expected tobe affected, transplanting and replacement planting for logging are planned.
⑥ Social environment:
The Project involves the land acquisition of 167 ha (120 ha of private landand 47 ha of public land) and resettlement of 75 households. The landacquisition and resettlement will be carried out in accordance with theResettlement Action Plan created in accordance with domestic laws andJICA guidelines.
⑦ Other/Monitoring:
During construction, the contractor will monitor air quality, water quality,
waste, noise/vibration, soil, etc., under the supervision of HMPD. When inservice, under the supervision of HMPD, a monitoring accreditation
organization, etc. employed by HMPD will monitor noise, vibration, ecology,etc. Land acquisition and involuntary resettlement will be monitored byHMPD.
（７） Cross-Sectoral Issues:
Measures against infectious disease control: To prevent the risk of HIV
infection during construction, which is expected to involve a large number ofworkers, the Project will require contractors to implement HIV/AIDS measures
for workers through an awareness campaign by NGOs and the inclusion of an
HIV/AIDS prevention clause in the bidding documents.
（８） Gender Category: ■GI（S）Gender Informed (Significant)< Details of Activities/ Reason for Categorization> The Project will include
gender-sensitive facilities such as gender-segregated toilets and street lighting
to create a more comfortable working environment for women on construction
sites, establish gender ratios for construction workers and office staff, andprovide training for female workers. In addition, a Gender Action Plan has
already been agreed upon to guide these efforts. For these reasons, the Projectis classified as a “gender activity integration project”.
（９） Other Important Issues: None4.

Targeted Outcomes（１） Quantitative Effects
１）Outcomes (Operation and Effect Indicators)
Baseline
Indicator
Annualaverage
traffic
volume(PCU/day)(Note 2)

Target (2031)(Actual value in2022)(Note1)0

Annual average traffic volume(number(Note 2)of

52,89445,241

vehicles/day)0

Numberofpassengers(thousand/year) (Note 3)0

Cargo volume(thousand tons/year) (Note 3)0Time required (minutes)(Note 4)57

87,003
18,40543(Note 1) Two years after the year the road is put into service.
(Note 2) The measurement points were taken between National Highway 32and Major District Road (MDR) 581 in Section 5.
(Note 3) Calculated on an annual basis based on the most recent daily
passenger and cargo volume.
(Note 4) 35.3 km from Singaperumalkoil to Perumaleri across Section 5.
（２） Qualitative Effects:
Promote economic development in the Chennai metropolitan area, including
the area surrounding the new road, and reduce traffic accidents by easing
congestion.
（３）Internal Rates of Return
Based on the following assumptions, the economic internal rate of return(EIRR) for the Project is 19.08%. The financial internal rate of return (FIRR) isnegative due to the low level of tolls. Toll rates are determined by state
governments in accordance with the standards set by the central government ofIndia, and revisions are periodically reviewed based on socioeconomic conditions
and other factors.

【EIRR】
Cost: Project cost, operation and maintenance cost, and land acquisition
cost (all excluding taxes)
Benefit: Reduction in vehicle running costs and travel time costs
Project Life: 25 years【FIRR】
Cost: Project cost, operation and maintenance cost, land acquisition costBenefit: Toll income
Project Life: 25 years
5.

External Factors and Risk Control（１）Preconditions: None
（２）External factors: None
6. Lessons Learned from Past Projects
As a lesson learned from the ex-post evaluation of the “Saigon East-West
Highway Construction Project (evaluation year: 2016) ,” an ODA loan to Vietnam
among others, it is important to follow up the progress carefully with regularconsultations with relevant organizations involved in land acquisition andresettlement, and to facilitate the Project to a certain extent so that the overall
project schedule is not affected.
In the Project, a dedicated team for land acquisition and resettlement will beestablished within the executing agency to facilitate appropriate and timely
compensation and support based on the land acquisition and resettlement plan.
The team also plans to set up regular consultation meetings with relevantorganizations involved in land acquisition and resettlement to communicate
closely with them and carefully follow up on progress to ensure that the overall
Project schedule is not affected.
7.

Evaluation Results

The Project will contribute to the development of the local economy in theChennai metropolitan area, where many Japanese companies have alreadyestablished business operations. The improvement of connectivity in thismetropolitan area is expected to indirectly benefit Japanese companies that havetheir bases in the area. In addition to meeting India's development agenda andpolicies, as well as the cooperation policy and analysis of Japan and JICA, theProject is expected to contribute to SDGs Goal 3 (Ensure healthy lives andpromote well-being for all (halve the number of deaths and injuries from roadtraffic accidents)), SDG Goal 8 (Promote sustained, inclusive and sustainableeconomic growth, full and productive employment and decent work for all), andGoal 9 (Build resilient infrastructure, promote inclusive and sustainableindustrialization, and foster innovation). and rewarding work for all) and Goal 9(build resilient infrastructure, promote inclusive and sustainable industrializationand foster innovation). For these reasons, there is a strong need to support theimplementation of the Project.
8.

Plan for Future Evaluation（１） Indicators to be Uses.
As indicated in Section 4.
（２） Future Evaluation Schedule
Ex-post evaluation: 2 years after project completion
END
Appendix:
Map of the Project for the Construction of Chennai Peripheral Ring Road
(Phase 2)

Appendix
Map: The Project for the Construction of Chennai Peripheral Ring Road
(Phase 2)

Site for Phase 1

Singaperumal
koil

Site for Phase 2

Perumaleri

Source: Created by JICA