Ex-Ante Evaluation Paper (for Japanese ODA Loan)
South Asia Division 1, South Asia Department, JICA
1. Name of the ProjectCountry: India
Project Title: North East Road Network Connectivity Improvement Project(Phase 6)
Loan Agreement: March 31, 2022
2. Background and Necessity of the Project(1) Current Status and Issues of the Road Sector Development in India
In India, the National Highways Development Project (hereinafter referred toas “NHDP”) was initiated by the Ministry of Road Transport and Highways(hereinafter referred to as “MoRTH) in 2001. Under this project, major arterial
roads connecting major cities including the Golden Quadrilateral that links thecapital Delhi, Mumbai in the west, Kolkata in the east, and Chennai in thesoutheast have been developed. In 2015, development of the main arterial
roads was steadily under way, including the completion of road construction
work on the entire section planned in 2001 (7,522 km).
On the other hand, the pavement ratio of all roads in the northeast region is34.1% (relative to the national average of 70.5%), the ratio of two-way two-ormore-lane roads among national roads is 48.0% (relative to 70.9%) (Basic Road
Statistics of India 2017–2018). Slope protection works and drainage channels
for landslide protection have not been developed in many areas. This delay inroad development has impeded the stable flow of people and materials within
the region and with other regions in and outside of India, which is attributable tothe delay in economic development.
National Highway 208 (hereinafter referred to as NH208), the target road of
the North East Road Network Connectivity Improvement Project (Phase 6)(hereinafter referred to as the Project), forms part of the international distribution
network that crosses the entire state of Tripura and connects to a road that
leads to Chattogram, the second largest city and the largest port city of
Bangladesh. The distribution between India and Bangladesh is mainly
conducted through Bangladesh's western border, and despite the geographic
proximity of northeastern India and Bangladesh, distribution is mostly conducted
via routes that take a long detour around the northern part of Bangladesh.
NH208, the target road of the Project, is poorly paved and is a two-way 1-to-1.5lane road, which hinders human transportation and distribution. If the1international distribution network is improved by upgrading roads (including theconstruction of new bypasses) through the Project, it will become a corridor
running north to south through the northeastern part of India and Bangladesh.
As a result, the corridor is expected to greatly reduce the time it takes fortransport and exchange of people and materials between northeast India andChattogram Port, which boasts the largest cargo handling volume in
Bangladesh, and Matarbari, where the country's first deep seaport is being
constructed, thereby activating the flow of transportation and distribution.
Furthermore, active use of the shipping industry and this international
distribution network is also expected to explore new distribution routes to themain part of India with its northeastern region as the gateway.
There are high expectations for Japan's cooperation in connectivity
improvement. At a meeting between foreign ministers of India and Bangladesh
held in March 2021 Indian Foreign Minister Jaishankar expressed his
expectations for Japan to be a partner in a project for connectivity improvement
between the two countries. Aiming to improve the international road network,
the Indian government is currently moving ahead with a project to construct acustoms clearance office at Sabroom, located at the southern end of NH208
and facing the Bangladesh border. Across the border in Bangladesh is Ramgarh
and the Indian government is supporting a project that will turn Bangladesh's
national highway from Ramgarh to Baraiyarhat into a two-way four-lane road(repair of bridges in this same road section currently supported by Japan, to be
explained later). The Project is therefore considered to have a large strategic
significance as an example of Japan-India cooperation toward connectivity
improvement in South Asian countries. The Project will contribute to thepromotion of economic development in the region by improving the existingroad of NH208 (including the construction of new bypasses), which connects
Khowai to Sabroom in Tripura and is therefore positioned as a high priority
project essential for the economic growth of the region.
(2) Japan’s and JICA's Cooperation Policy and Operations in the Road Sector /Tripura
The Country Assistance Policy for India (March 2016) states that the country
will "develop the critical infrastructure necessary to ensure continued investment
and high growth amid the need to achieve inclusive and stable high economic
growth." The Policy also identifies "reinforcement of connectivity" as a priority
area. With a view to eliminating infrastructure bottlenecks with respect to2

investment and economic growth, the Policy will support the development oftransport infrastructure so as to strengthen connectivity among major industrial
cities, economic zones, and regions in the country. It further states that the twocountries will promote cooperation to foster the improvement of connectivity
between the northeast region and its domestic and international neighbors asconfirmed between the leaders of Japan and India. To be specific, bridge repair
work is supported in the Bangladesh part of the corridor section that connects at
Sabroom (Ramgarh, which is the name on the Bangladesh side of the border, toBaraiyarhat) through the yen loan Cross-border Road Network Improvement
Development Project (Bangladesh). The national highway development from
Chattogram to Matarbari is under way under the yen loan Matarbari Port
Development Project and the Chattogram - Cox's Bazar Highway Improvement
Project (E/S). Through these projects, the road network is soon to be connectedfrom northeastern India to Matarbari Port via Chattogram. Considering thesesituations, the Project is expected to produce high synergetic effects with theJapan-supported connectivity and regional development schemes under way in
Bangladesh. As mentioned above, the Project is expected to form part of theinternational distribution network between India and Bangladesh and willcontribute to the realization of a "Free and Open Indo-Pacific" by promoting
trade through connectivity improvement among the areas in and outside of thenortheastern region of India.
In addition, JICA Country Analysis Paper for India (March 2018) also identifies
improving connectivity as a priority area, and the Project is consistent with thesepolicies and analysis, as it is designed to promote support for infrastructuredevelopment with an eye to eliminating infrastructure bottlenecks to investment
and growth.
The Project is also considered to contribute to Goal 3 (Ensure healthy lives
and promote well-being for all at all ages (Halve the casualties of road traffic
accidents)), Goal 8 (Promote sustained, inclusive and sustainable economic
growth, full and productive employment and decent work for all), Goal 9 (Build
resilient infrastructure, promote inclusive and sustainable industrialization andfoster innovation), and Goal 13 (Take urgent action to combat climate change
and its impacts) of the SDGs. Thus, the need to support the implementation of
the Project is high.
(3) Other Donors' Activities
The World Bank already implemented the Assam State Roads Project (State
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Highway 46) (March 2012 to March 2018) and the Mizoram State Roads Project(June 2014 to April 2021) in the northeast region. In addition, the World Bank
has started the Bangladesh regional connectivity project (April 2017 to
December 2023: about US$170 million) to support modernization of customs
clearance offices in Bangladesh in order to facilitate cross-border interregional
trade. This project also covers the Ramgarh Customs Clearance Office(Bangladesh side), which borders Sabroom at the southern end of Indian
NH208, the target road of our Project. For the Ramgarh Customs Clearance
Office, the contractor has already been selected, and construction is expected
to begin by the end of FY2021. The construction period is 18 months and isscheduled to be completed by the end of 2023.
The Asian Development Bank provides support to the northeastern region ofIndia including the states of Assam, Meghalaya, Sikkim, Manipur, Mizoram, andTripura, through the North Eastern States Roads Investment Program Tranche
1 (October 2012 to Jun 2021) and Project 2 (May 2014 to November 2021). The
Bank also supports reinforcement of regional trade corridors including those ineach target country, the BCIM Economic Corridor (Bangladesh, China, India,
and Myanmar) and the BBIN Initiative (Bangladesh, Bhutan, India, and Nepal)
through the South Asia Subregional Economic Cooperation (SASEC) roadconnection investment project.
3. Project Description(1) Project Objective
The Project is designed to improve the existing roads of NH208 (including theconstruction of new bypasses) linking Khowai to Sabroom, Tripura, in thenortheastern part of India to improve connectivity within the region as well asother regions in and outside of India, thereby contributing to the promotion ofregional economic growth.
(2) Project Site / Target Area
State of Tripura (population: approximately 3.67 million (2011))(3) Project Components
1)
Improvement of NH208 (between Khowai and Sabroom) (including
repair and width expansion of existing roads with bridges and drainage
channels over a total distance of about 134 km (road widening from thecurrent two-way 1-to-1.5-lane to two-way 2-lane) and construction of
new bypasses at 7 locations (about 22 km in total))
2)
Consulting services (construction supervision, environmental and social
considerations, etc.)
4(4) Estimated Project Cost
37,092 million Yen (Japanese ODA loan: 23,129 million Yen)
(5) Project Implementation Period
March 2022 to March 2031 (109 months in total)
The project completion is defined as the start of facility service (March 2026).
(6) Project Implementation Structure
1)
2)
3)

Borrower: The President of India
Guarantor: None
Project Executing Agency / Implementation Structure: National
Highways and Infrastructure Development Corporation Limited(NHIDCL)
4) Operation and Maintenance System: Same as above(7) Collaboration and Sharing of Roles with Other Donors
1) Japan's Assistance Activities:
In the northeastern region of India, the loan assistance North East Road
Network Connectivity Improvement Project is under way from Phase 1 to
Phase 5. This assistance helps improve the connectivity in and outside of
the northeastern region in conjunction with the Project. Specifically,
improvement of regional national highways (including the construction of
new bypasses) is supported in Meghalaya and Mizoram states by Phase 1(loan agreement approved in March 2017) and Phase 2 (loan agreement
approved in March 2018), in Tripura, the target of the Project, by Phase 4(loan agreement approved in March 2020), and in Assam by Phase 5 (loanagreement approved in March 2021) (note that the road covered by Phase
4 is to be connected to the target road of the Project to the north). In
addition, Phase 3 (loan agreement approved in October 2018) supports theconstruction of bridges connecting Assam and Meghalaya.
The Capacity Development Project on Highways in Mountainous Regions(2016 to 2022), one of the technical cooperation projects for India, provides
various support programs including support for the formulation of guidelines
on slope protection measures and road management and maintenance andsupport of staff capacity reinforcement of the related administrative organs.
The ongoing Capacity Development Project for Resilient Mountainous
Highways (2022 to 2025) intends to support capacity reinforcement ofadministration for development of the operation and maintenance cycle ofmountain roads. Therefore, it is expected that these results will be utilized in
the Project as well.
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2)

Other Donors' Assistance Activities: None in particular.

(8) Environmental and Social Considerations/Cross-Sectoral Issues/Gender
Category
1) Environmental and Social Considerations① Category: A② Reason for Categorization: The Project falls under the sensitive
characteristics and sensitive areas listed in the JICA Guidelines forEnvironmental and Social Consideration (issued in April 2010).
③ Environmental Permit: The environmental impact assessment (EIA)
report on the Project was prepared by NHIDCL in November 2020
although its preparation is not required under the domestic laws of India.
④ Anti-Pollution Measures: For air quality, water quality, waste, noise, andvibration, measures will be taken during the construction to meetemission and environmental standards in India, including water
sprinkling, waste disposal at government-designated disposal sites,
reuse of overburden, maintenance of heavy construction equipment, andinstallation of sound barriers. In addition, measures will be taken fornoise and vibration during service, such as maintenance of the roadsurface and limitation of whistles.
⑤ Natural Environment: The Project area is located 4.7 km from the Gumti
Wildlife Sanctuary and 6 km from the Rema-Kalenga Wildlife Sanctuary.
There are ESZs (Eco-Sensitive Zones), established to regulate andcontrol activities around the Gumti Wildlife Sanctuary. The ESZ nearest
to the Project area is about 3.5 km away. The Project is not subject toenvironmental clearance under Indian domestic law and is therefore notrequired to obtain wildlife clearance. In addition, although the migrationand habitat of rare wildlife in the Project area is limited, mitigation
measures, such as measures to prevent animals from being run over andkilled by passing vehicles (roadkill), will be taken as necessary. Road
widening will result in the felling of 5,996 trees in a forested area ofapproximately 128.73 ha. However, indigenous varieties will be planted
as alternative trees in consideration of the surrounding ecosystem andvegetation. The specific location and number of trees to be planted will
be determined through consultation with the local forestry authority at the
project implementation stage.
⑥ Social Environment: The Project involves land acquisition of about 400
6ha and involuntary resettlement of 463 households, and land acquisition,compensation, and support will be provided based on the land acquisition
and resettlement plan prepared in accordance with the country's
domestic procedures and JICA guidelines. The Tripuri tribe, a Scheduled
Tribe under the Constitution of India, resides in some of the Project
areas, and consideration is being given to them in the consultations withlocal residents and livelihood restoration support measures. No particular
opposition to the implementation of the Project was seen in thecommunity consultation on the Project.
⑦ Other/Monitoring: During the construction period, contractors and others
will monitor air quality, water quality, waste, noise, vibration, etc. under
the supervision of NHIDCL. NHIDCL will monitor air quality, water quality,
noise, vibration, etc. during the in-service period. Land acquisition,
resettlement, and livelihood restoration will be monitored with the support

2)of the department authorized to conduct surveys with respect to landacquisition and an implementation promotion NGO employed by
NHIDCL, and ecosystem monitoring will be conducted by NHIDCL andthe Department of Forestry during the construction and in-service
periods.
Cross-Sectoral Issues① Climate Change: Although traffic is expected to increase through the
Project, the Project will contribute to climate change (mitigation
measures), as it is expected to reduce greenhouse gas (GHG) emissions
by 18,565 tons per year (estimated for this phase as of 2030) due toimproved trafficability.
② Poverty Measures / Poverty Considerations: The Project is expected tostimulate the economic activities of residents along the road, thereby
contributing to poverty reduction.
③ Disability Considerations: With regard to disability considerations, it has
been confirmed at the appraisal that persons with disabilities are
positioned as socially vulnerable groups in the land acquisition andresettlement plan and will receive necessary considerations such as
livelihood restoration support at the time of relocation.
④ Prevention of AIDS/HIV and other infectious diseases: As part of theeffort to prevent the spread of the novel coronavirus infection, a list ofmeasures (36 in total) to be implemented during the formation and7

implementation of the Project was agreed upon at the time of appraisal.
This agreement has clarified relevant activities including development of
epidemic prevention materials and equipment, improvement of theworking environment including the code of conduct, work supervision,and awareness raising. Appropriate monitoring with a constant focus on
the impact of the novel coronavirus will be made through the project
implementation stage by receiving quarterly reports on the status of
implementation of these items from the implementing agency in order toallow the implementing agency to take flexible and suitable actions. In
addition, HIV/AIDS measures for construction workers will be
implemented by construction contractors during the construction phase.
3)
Gender Category:■ Gender Informed (Significant) (Gender activity integration project)[Activities / Classification Rationale] The Project will promote the employmentof women in construction work and maintenance and take measures from theviewpoint of gender such as ensuring that heads of households receive equal
compensation regardless of gender when resettlement takes place.
(9) Other Important Issues: None in particular.

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

Location/Type, etc.

Average travel time(minutes) for thetarget section
Average travel cost(rupees/km) for thetarget section

Annual average daily
traffic volume in thetarget section(PCUNote 1/day)

245

121

Passenger car
Truck

23.50
58.62

15.84
42.07

Khowai–Teliamura

4,000

8,300

1,200

3,300

140

400

180

500

5,512

9,043

1,815

3,385

224

417

257

479

409

2,014

338

978

48

140

43

125

42.3 km pointNote 2(near Rangamati)
88.0 km point(near Ailmara)132.8 km point
Khowai–Teliamura(thousandpersons/year)

42.3 km point(near Rangamati)
88.0 km point(near Ailmara)132.8 km point(near Harina)
Khowai–Teliamura
42.3 km point

Cargo volume in thetarget section(thousand tons/year)

project completion]

Entire section(near Harina)

No. of passengers in
the target section

Target (2028)[2 years afterBaseline(2020)(near Rangamati)
88.0 km point(near Ailmara)132.8 km point(near Harina)(Note 1) Passenger car unit
(Note 2) Distance from starting point (Khowai)9(2) Qualitative Effects
Improvement of connectivity with other regions, both domestically andinternationally, socio-economic development of the surrounding areas of thetarget section, and improvement of travel comfort in the target segment, etc.
(3) Internal Rate of Return
Based on the following assumptions, the economic internal rate of return(EIRR) for the Project is 13.1%. Since the Project will not collect tolls and thus
not generate any revenue, the financial internal rate of return (FIRR) is not
calculated.
[EIRR]
Cost: Construction costs, operation and maintenance costs (both excluding
taxes)
Benefit: Reduction in vehicle running costs and in travel time costs
Project Life: 35 years
5. External Factors and Risk Control(1) Preconditions: N/A(2) External Factors: N/A
6. Lessons Learned from Past Projects
Based on the experience of the previous yen loan projects and road sector
projects in India, since it took a long time to complete the projects due to thelack of coordination between the implementing agencies responsible for landacquisition and resettlement planning and the state government responsible for
implementation of the plan, it is important in this process to carefully follow up
on the collaboration between the implementing agency and the state
government and NGOs and on the progress of land acquisition. This is an
important lesson learned.
Based on lessons learned from past projects, the land acquisition andresettlement plans, previously prepared mainly by NHIDCL in the past phases,
have been prepared in the current phase by NHIDCL with the cooperation of thestate government, and it was confirmed that the information has been
sufficiently shared by both parties in the planning stage. For land acquisition
and resettlement, while the necessary procedures including holding of
explanatory meetings for residents have been taken, it is already confirmed that
PMU will conduct a monitoring survey on the progress of these operations andon the status of living after resettlement with the support of an NGO employedby the implementing agency and with constant cooperation with the state10

government and that a system has thus been put in place that ensures periodic
reporting of such survey results until completion of resettlement. If necessary,
JICA plans to encourage further promotion of the procedure.
7. Evaluation Results
The Project is in line with the development issues and policies of the country
and the cooperation policy and analysis of Japan and JICA, and will conductnational highway improvement (including construction of new bypasses) for thenational highway connecting Khowai and Sabroom in the state of Tripura in thenortheastern region of India, thereby improving the connectivity with various
areas in the northeastern part of India and other regions in and outside of thecountry. In addition, the Project will contribute to Goal 8 (Promote sustained,
inclusive and sustainable economic growth, full and productive employment anddecent work for all), Goal 9 (Build resilient infrastructure, promote inclusive andsustainable industrialization and foster innovation), and Goal 13 (Take urgent
action to combat climate change and its impacts) of the SDGs. Considering
these benefits, it is concluded that there is a strong need to support
implementation of the Project.
8. Plan for Future Evaluation(1) Indicators to Be Used
As indicated in Sections 4.
(2) Future Evaluation Schedule
Ex-post evaluation: two years after the project completionEnd11