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The World Bank for OFFICIAL USE ONLY Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 16650 IMPLEMENTATION COMPLETION REPORT Public Disclosure Authorized INDIA THIRD BOMBAY WATER SUPPLY AND SEWERAGE PROJECT (Loan 2769/Credit 1750-IN) June 9, 1997 Public Disclosure Authorized Agriculture and Water Operations Division Public Disclosure Authorized Country Department II South Asia Regional Office This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EOUIVALENTS Currency Unit = Rupees (RS.) At appraisal (1986) US$1 = Rs.13.0 Completion Year 1996 US$1 = Rs.34.50 WEIGHTS AND MEASURES mm = millimeter (1 millimeter = 0.039 inches) m = meter (1 meter = 3.28 feet) km = kilometer (1 kilometer = 0.62 miles) 1 liter (0.22 Imperial gallons or 0.264 US gallons) lcd = liters per capita per day Ml = million liters or 1,000 cubic meters Mld = million liters per day (0.220 million Imperial gallons per day or 0.264 million US gallons per day) mgd = million Imperial gallons per day (1 mgd = 4,545 m3/day) FISCAL YEAR OF BORROWER 1 April to 31 March ABBREVIATIONSAND ACRONYMS AMCP Additional Municipal Commissioner (Projects) BSDP Bombay Sewage Disposal Project (Ln/Cr 3923/2763-fN) BWSSP I-III Bombay Water Supply and Sewerage Projects (I, II and III) ERR Economic Rate of Return FAO/CP Food and Agriculture Organization of the United Nations/World Bank Cooperative Program FY Fiscal Year Gol Government of India GoM Government of Maharashtra HE Hydraulic Engineer of WSSD IBRD International Bank for Reconstruction and Development ICR Implementation Completion Report IDA International Development Association MCGB Municipal Corporation of Greater Bombay MMRDA Mumbai Metropolitan Region Development Authority OMS Operational Manual Statement PPAR Project Performance Audit Report PPCC Project Planning and Control Cell of WSSD PWD Public Works Department of Government of Maharashtra SAR Staff Appraisal Report WSS Water Supply and Sanitation/Sewerage WSSD Water Supply and Sewerage Department of MCGB Vice President Mieko Nishimizu Director Robert S. Drysdale Division Chief Shawki Barghouti Staff Member Shyamal Sarkar IMPLEMENTATION COMPLETION REPORT FOR OFFICIAL USE ONLY INDIA THIRD BOMBAY WATER SUPPLY AND SEWERAGE PROJECT (Loan 2769-IN & Credit 1750-IN) Table of Contents PREFACE .......................................................... i EVALUATION SUMMARY .......................................................... ii PART I: PROJECT IMPLEMENTATION ASSESSMENT .......................................................... 1 A. Project Objectives .......................................................... 1l B. Achievement of Objectives ........................................................... 2 C. Implementation Record and Major Factors Affecting the Project ................................... 2 D. Project Sustainability ........................................................... 6 E. Bank Performance ........................................................... 7 F. Borrower Performance ........................................................... 8 G. Assessment of Outcome .......................................................... 10 H. Future Operation ........................................................... 11 I. Key Lessons Learned .......................................................... 1I PART II: STATISTICAL TABLES Table 1: Summary of Assessments ..................................................... 13 Table 2: Related Bank Loans/Credits ..................................................... 15 Table 3: Project Timetable ..................................................... 17 Table 4: Loan/Credit Disbursements: Cumulative Estimated and Actual ......................... 17 Table 5: Key Indicators for Project Implementation ..................................................... 18 Table 6: Key Indicators for Project Operation . .................................................... 19 Table 7: Studies Included in Project ..................................................... 20 Table 8A: Project Costs ..................................................... 22 Table 8B: Project Financing ..................................................... 22 Table 9: Economic Costs and Benefits ..................................................... 23 Table 10: Status of Legal Covenants ..................................................... 24 Table 11: Compliance with Operational Manual Statements ............................................. 28 Table 12: Bank Resources: Staff Inputs ..................................................... 28 Table 13: Bank Resources: Missions ..................................................... 29 APPENDICES A. Mission's Aide-Memoire ..................................................... 30 B. Borrower's Evaluation ..................................................... 54 Maps IBRD 18974R and 28833 This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization. -l- IMPLEMENTATION COMPLETION REPORT INDIA THIRD BOMBAY WATER SUPPLY AND SEWERAGE PROJECT (Loan 2769-IN & Credit 1750-IN) Preface This is the ImplementationCompletion Report (ICR) for the Thrd Bombay Water Supplyand SewerageProject in India, for which Loan 2769-IN in the amount of US$40.0 millionand Credit 1750-IN in the amount of SDR105.5 million(US$145.0 millionequivalent) was approved on December 16, 1986 and became effectiveon January 29, 1988. An increasein the disbursementpercentages was introducedby the Bank from September 1, 1990, followingthe Middle East crisis,and was continuedto the Credit closing. On April 9, 1996 the project was restructuredto permit financingof some additionalworks and some uncompleted works of the previous Second BomnbayWater Supplyand Sewerage Project (Cr. 842-IN) which was closed on March31, 1988. The Loan was filly canceledin three steps: US$10.0 millioneach in June 1993 and on October 6, 1994, and US$20.0 millionon June 26, 1995. The Credit was closed on June 30, 1996 after two extensionsof one year each. Final disbursementtook place on November 22, 1996, at which time the balance of SDR15.1 million(US$21.6 millionequivalent) was canceled. The ICR was prepared by Mr. ShyamalSarkar of the Bank's New Delhi Office with assistance from the FAO/World Bank CooperativeProgram and reviewedby Mr. Shawki Barghouti, Chief, Agricultureand Water OperationsDivision, Country Department 2, South Asia Region, and Mrs. Kazuko Uchimura, Project Adviser, Country Department 2, South Asia Region. Preparation of this ICR was begun duringthe Bank's final supervision/completionmission from July 9-24, 1996. It is based on materialsin the project file. The Borrower and implementing agency contributed to preparation of the ICR by: providingdata and views, which are reflected in the mission's Aide-Memoireat AppendixA, preparing an evaluationof the project's initialpreparation and execution at AppendixB; and commentingon the draft ICR. -11- IMPLEMENTATION COMPLETION REPORT INDIA THIRD BOMBAY WATER SUPPLY AND SEWERAGE PROJECT (Loan 2769-IN & Credit 1750-IN) Evaluation Summary Project Objectives 1. The objectivesof the project were to expandthe water supply and sewerage facilitiesfor the city of Bombay and further strengthenthe Water Supply and SewerageDepartment's (WSSD) implementationcapacity and its financialand operationalperformance. These objectiveswere to be achieved by: (a) continuingand expandingon the efforts of previous projects in improvingsector efficiencythrough improvementsin project management,procurement, billing and collections,and leak detection and repair in the WSSD; (b) expandingwater supply and sanitationfacilities for the urban poor; (c) increasingthe supply of water to the MunicipalCorporation of Greater Bombay (MCGB) area by 455 millionliters per day (Mld) to help reduce Bombay's deficit;(d) expandingBombay's sewerage systemin the isolated developedareas; and (e) evaluatingoperational experience and developingappropriate design criteria and technicaloptions for future investmentsin sewage treatment. 2. The appraised project included:(a) the constructionof 52 km of trunk mains with diameters up to 3000 mm, 49 km of distributionmains up to 1800 mm diameter, 9 km of transmissiontunnels, and intemal cement mortar liningof 76 km of pipeline;(b) the provisionof leak detection equipment, control equipment and system instrumentationand about 32,000 water meters; (c) constructionof a 455 Mld water treatment plant, four servicereservoirs and pumping stations;(d) constructionof about 54 km of sewers and the buildingand installationof sewagepumping equipment; (e) provisionof water supplyand sanitationfor the urban poor in slums;and (f) training,consultancies and vehicles. 3. While project objectiveswere clear and importantfor the developmentof water supply and sewerage in Bombay, it would have been appropriateto have specified,as an overall perfomiance objective,the achievementof an uninterruptedwater supply duringthe project period. If, during execution, attention had been given to such a performanceobjective, higherpriority might have been given to rehabilitationand strengtheningof the water distributionsystem, control of leakage and waste, and metering, billingand collection. All of these measures would have assistedwith water conservation. 4. The Government of India (Gol) and
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