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Karnataka Integrated and Sustainable Water Resources Management Investment Program

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Karnataka Integrated and Sustainable Water Resources Management Investment Program Technical Assistance Consultant’s Report Project Number: TA 7954 August 2012 India: Karnataka Integrated and Sustainable Water Resources Management Investment Program This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design. Karnataka Integrated and Sustainable Water Resource Investment Programme Urban Water Supply and Sanitation Component Draft Final Report: Volume 1 Institutional - Road Map August 2012 TA 7954-IND: KISWRIP Draft Final Report: Volume 1-Institutional Road Map August 2012 Foreword This Draft Final Report has been prepared as a deliverable of the PPTA-7954 IND: “Karnataka Integrated and Sustainable Water Resources Management Investment Programme – Urban Water and Sanitation Component”. The comments made in this Report are not made to criticise, but as a means of achieving the required long-term institutional and financial improvements that the stakeholders, including ULB staff desire. Considering the scarcity of staff, the lack of any structured approach to UWSS management is inevitable. The service is maintained through the dedication of the ULB and the operational staff, and their desire to provide the best service within their capability to provide. During the preparation this Report, I have unashamedly plagiarised from the work of others, in particularly for the institutional “as is” position. The reason is simple. The issues facing the sector are well known, and well documented. Previous Reports and Studies have both adequately described these issues, and the comments made have been accepted by Stakeholders. Consequently, I saw little point in re-visiting the issues, but instead concentrated on the changes to be implemented for the future – the “Criteria for Success”, as we have called them. Although it is not possible to reference each incidence of usage from the Report of CDTA7418, the CLIPS, DPRs and ADB Aide Memoires, even our own ToR, the use of these documents is acknowledged now. I would add that the work by my colleagues in assessing the technical and financial issues from their site visits and meetings is unique, as is the work of the safeguard experts. During the course of the preparation of the Report, considerable advice, guidance and assistance has been provided by the Steering Committee and the staff of the KUIDFC, the local ULBs, KUWS&DB and by the engineering staff responsible for the existing on-going UWSS projects within the subject towns. This kind assistance, without which this Report could not have been produced, is herewith duly acknowledged and credited. In particular, the assistance and advice offered by the Managing Director of the KUIDFC and our Core Nodal Officer has been essential. Many of the recommendations made in this Report are theirs. I have merely taken their suggestions, polished them and fitted them into the overall context of the Programme. Tony Farrar PPTA Team: Team Leader & Water Sector Specialist Amit Basu Deputy Team Leader and Sewerage Specialist Jagan Kommareddy Replacement for Amit, following Amit‟s retirement due to ill health Sougata Datta Water Supply Expert Krishnan Padmanabhan Economic and Financial Expert Achyutha Rao Aleti Environmental Safeguard Specialist Saswati Belliappa Social Safeguard Specialist Arati Nandi Poverty & Social Development Specialist Alan Nightingale Water Engineer Fred Gould Wastewater Treatment Specialist Prepared under the guidance of Tatiana Gallego-Lizon, Principal Urban Development Specialist SARD/ADB 2 TA 7954-IND: KISWRIP Draft Final Report: Volume 1-Institutional Road Map August 2012 Table of Contents 1 KNOWLEDGE SUMMARY ..................................................................................................... 14 2 INTRODUCTION TO THE PROJECT ................................................................................... 19 2.1 Background to the project ................................................................................................................. 19 2.2 Project Deliverables .......................................................................................................................... 19 2.2.1 MFF Sector Road Map ......................................................................................................................... 19 2.2.2 Feasibility Studies ................................................................................................................................ 20 2.2.3 Program Implementation Plan and Materials ................................................................................ 20 2.3 Scope of the Draft Final Report ......................................................................................................... 20 2.4 ADB Policy and Experience in India ................................................................................................... 20 3 PROJECT RATIONALE ........................................................................................................... 22 3.1 Pilot Sub-Basin .................................................................................................................................. 22 3.2 Definition of Sub-sector .................................................................................................................... 22 3.3 PPTA Project...................................................................................................................................... 23 3.3.1 Project Impact & Outcome ................................................................................................................. 23 3.3.2 Project Methodology .......................................................................................................................... 24 3.3.2.1 MFF Sector Road Map ................................................................................................................ 24 3.3.2.2 Feasibility Studies ....................................................................................................................... 25 3.3.2.2.1 Selection of Subject Tranche-1 Towns .................................................................................. 25 3.3.2.3 Applicability of the Subject Tranche-1 Towns to the Road Map ................................................ 26 4 GOVERNMENT SECTOR POLICY & INITIATIVES .......................................................... 27 4.1 Legal Framework ............................................................................................................................... 27 4.2 National Policy .................................................................................................................................. 27 4.3 State Policies for the Sector .............................................................................................................. 31 4.3.1 Draft Cabinet Paper ............................................................................................................................. 31 4.4 Public/Private Partnerships ............................................................................................................... 32 5 STATE OF KARNATAKA PROFILE ..................................................................................... 35 5.1 Economic Development .................................................................................................................... 35 5.1.1 National ............................................................................................................................................... 35 5.1.2 State Overview .................................................................................................................................... 35 5.1.3 State Economic Assessment ................................................................................................................ 36 5.1.4 Sector Composition of GSDP ............................................................................................................... 37 3 TA 7954-IND: KISWRIP Draft Final Report: Volume 1-Institutional Road Map August 2012 5.1.5 Major Economic Activities of Karnataka ............................................................................................. 38 5.1.6 Future Growth ..................................................................................................................................... 38 6 STATEMENT OF NEED: “IMPEDIMENTS TO SUCCESS” .............................................. 41 6.1 Introduction & Overview ................................................................................................................... 41 6.2 Institutional – State Level .................................................................................................................. 41 6.2.1 Stakeholders and their Role in Project ................................................................................................ 41 6.2.2 Regulation ........................................................................................................................................... 42 6.2.3 Identified Issues .................................................................................................................................. 43 6.3 Institutional – Local Service Provider Level ......................................................................................
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