World Bank has earmarked US $ 0.70 Million for Institutional Development Study. The U.S.A based consultant  M/s. Booz Allen & Hamilton Inc., has given the final report for implementation, in which the consultant recommended for reforms on five major issues namely:

As per the  study report, the organisation will be restructured and strengthened.  A Road Fund Board for managing road financing will be set up to provide regular and stable flow of funds to the Road Sector. There will be greater emphasis on private sector participation.

A steering committee reviewed and accepted the final report of the consultant. Based on the review and acceptance of the studied report by the steering committee, G.O.Ms.No 141/Highways (HN1) Department dated 16.08.2001 accorded in principle approval. The Government has approved the Institutional Strengthening Action Plan (ISAP) in G.O.Ms.No 86/Highways (HF2) Department dated 02.05.2003. Evaluation of Technical Proposals has been completed and proposals sent to the World Bank for no objection. The first ranked consultant will get the award, provided their financial cost is within the fixed budget.

As a follow up measure for implementation, it is proposed to equip the organisation with computers. In this connection, Government in G.O.Ms. No 222 Highways (HN1) Department dated 21.11.2001 accorded in-principle approval for  procurement and installation of computers. The World Bank has studied the report prepared by PTCS on computerization of Highways department and suggested for proper need analysis through a consultant for comprehensive software solution for the department. The Consultant, M/s. Price Water Coopers  has been finalised for need analysis at a cost of Rs. 7 Lakhs. After approval of this report by the World Bank, the PIU will procure the computers including hardware and software.

In each major activity task forces are proposed to be setup. It is proposed to implement the recommendation through the assistance of appropriate consultant.

Integrated Financial and Procurement Management System study was completed through M/s Tata Consultantcy Services at a cost of about 25 lakhs in 7 months. Data Base Management on procurement and Financial aspects has been evolved for adoption with the approval of World Bank. A Financial Manager is in position. The consultant (TCS) has trained the PIU staff.

As a follow up measure, the consultant has been identified and agreement has been signed on July 8, 2004 for implementation of Institutional Strengthening Action Plan for restructuring and strengthening the institutional capabilities of Highways Department. This consultancy service comes under fixed budget selection with a ceiling of US$ 1 Million.