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Completion Report Project Number: 35290-023 Loan Number: 2528 December 2020 India: North Eastern Region Capital Cities Development Investment Program (Project 1) This document is being disclosed to the public in accordance with ADB’s Access to Information Policy. CURRENCY EQUIVALENTS Currency unit – Indian rupee/s (₹) At Appraisal At Project Completion (16 January 2009) (22 June 2019) ₹1.00 = $0.02092 $0.01437 $1.00 = ₹47.779 ₹69.580 ABBREVIATIONS ADB – Asian Development Bank APFS – audited project financial statement CFC – Central Finance Commission DMF – design and monitoring framework DPR – detailed project report DSMC – design, construction supervision, and management consultant EIRR – economic internal rate of return GAP – gender action plan GIS – geographic information system IEE – Initial environmental examination km – kilometer MFF – multitranche financing facility NER – north eastern region NERCCDIP – North Eastern Region Capital Cities Development Investment Program NSEAs – National- and state-level executing agencies O&M – operation and maintenance OP – operational priority under ADB Strategy 2030 SFC – State Finance Commission SIPMIU – state investment program management and implementation unit SWM – solid waste management ULB – urban local body NOTES (i) The fiscal year (FY) of the Government of India ends on 31 March. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2020 ends on 31 March 2021. (ii) In this report, “$” refers to United States dollars. Vice-President Shixin Chen, Operations 1 Director General Kenichi Yokoyama, South Asia Department (SARD) Director Norio Saito, Urban Development and Water Division (SAUW), SARD Team leader Santosh Pokharel, Urban Economist, SAUW, SARD Team members Saswati Belliappa, Safeguards Specialist, SAUW, SARD Edgardo G. Moises, Associate Project Officer, SAUW, SARD Amrit Ajay Sharma, Project Analyst, India Resident Mission, SARD Elvie Jane Tirano, Senior Operations Assistant, SAUW, SARD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page BASIC DATA i I. PROJECT DESCRIPTION 1 II. DESIGN AND IMPLEMENTATION 1 A. Project Design and Formulation 1 B. Project Outputs 3 C. Project Costs and Financing 4 D. Disbursements 4 E. Project Schedule 5 F. Implementation Arrangements 5 G. Technical Assistance 5 H. Consultant Recruitment and Procurement 6 I. Gender Equity 6 J. Safeguards 7 K. Monitoring and Reporting 8 III. EVALUATION OF PERFORMANCE 8 A. Relevance 8 B. Effectiveness 9 C. Efficiency 10 D. Sustainability 10 E. Development Impact 11 F. Performance of the Borrower and the Executing Agency 13 G. Performance of the Asian Development Bank 13 H. Overall Assessment 13 IV. ISSUES, LESSONS, AND RECOMMENDATIONS 14 A. Issues and Lessons 14 B. Recommendations 14 APPENDIXES 1. Design and Monitoring Framework 16 2. Project Cost at Appraisal and Actual 19 3. Project Cost by Financier 21 4. Disbursement of ADB Loan Proceeds 25 5. Contract Awards of ADB Loan Proceeds 26 6. Summary of Contract Details 27 7. Implementation of Gender Action Plan 31 8. Safeguards 42 9. Status of Compliance with Loan Covenants 44 10. Economic and Financial Analysis 53 BASIC DATA A. Loan Identification 1. Country India 2. Loan number and financing source 2528-IND, Ordinary Capital Resources 3. Project title North Eastern Region Capital Cities Development Investment Program (Project 1) 4. Borrower India 5. Executing agency Ministry of Urban Development, Government of India 6. Amount of loan $30 million 7. Financing modality Multitranche financing facility B. Loan Data 1. Appraisal – Date started 13 January 2009 – Date completed 16 January 2009 2. Loan negotiations – Date started 14 May 2009 – Date completed 15 May 2009 3. Date of Board approval 1 July 2009 4. Date of loan agreement 4 August 2009 5. Date of loan effectiveness – In loan agreement 2 November 2009 – Actual 19 November 2009 – Number of extensions 2 6. Project completion date – Appraisal 31 October 2015 – Actual 22 June 2019 7. Loan closing date – In loan agreement 30 April 2016 – Actual 23 October 2019 – Number of extensions 2 8. Financial closing date – Actual 23 October 2019 9. Terms of loan – Interest rate London interbank offered rate-based (floating) + 0.60% – Maturity (number of years) 25 – Grace period (number of years) 5 10. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 7 July 2010 23 October 2019 111 months Effective Date Actual Closing Date Time Interval 19 November 2009 22 June 2019 115 months ii b. Amount ($‘000) Increased Canceled Last Original during during Revised Amount Undisbursed Allocation Implementation Implementation Allocationa Disburse Balanceb Category (1) (2) (3) (4=1+2–3) d (5) (6 = 4–5) 1. Civil works 1a. Tripura 609.40 159.40 450.00 396.19 53.81 1b. Mizoram 916.50 246.50 670.00 576.28 93.72 1c. Sikkim 3,177.70 1,577.70 1,600.00 1,561.20 38.80 1d. Nagaland 2,767.20 2,832.80 5,600.00 5,967.91 (367.91) 1e. Meghalaya 214.20 485.80 700.00 648.27 51.73 2. Equipment 2a. Tripura 474.10 214.10 260.00 247.42 12.58 2b. Mizoram 1,040.50 330.50 710.00 696.46 13.54 2c. Sikkim 319.00 319.00 2d. Nagaland 835.00 835.00 2e. Meghalaya 122.60 25.95 96.66 70.36 26.30 3. Consulting services 3a. Tripura 3,405.40 705.40 2,700.40 2,526.72 173.28 3b. Mizoram 2,369.60 130.40 2,500.00 2,418.08 81.92 3c. Sikkim 2,206.80 206.80 2,000.00 2,062.97 (62.97) 3d. Nagaland 2,214.80 485.20 2,700.00 2,495.44 204.56 3e. Meghalaya 3,373.00 273.00 3,100.00 2,991.10 108.90 3f. Ministry of 473.80 133.80 340.00 251.16 88.84 Urban Development 4. Project implementation and administration 4a. Tripura 572.50 312.50 260.00 251.64 8.36 4b. Mizoram 572.50 47.50 620.00 608.66 11.34 4c. Sikkim 572.50 262.50 310.00 277.75 32.25 4d. Nagaland 572.50 22.50 550.00 541.26 8.74 4e. Meghalaya 572.50 202.50 370.00 366.40 3.60 5. Unallocated 2,616.90 2,616.90 Total 30,000.00 25,536.66 24,955.26 581.39 Note: Numbers may not sum precisely because of rounding. a Last revised allocation takes into account reallocations on 14 February 2012, 5 July 2012, and 14 June 2017, as well as partial cancellation effected on 5 September 2012. b The undisbursed balance of $0.58 million was cancelled on 23 October 2019. C. Project Data 1. Project cost ($‘000) Cost Appraisal Estimate Actual Foreign exchange cost 4,785.80 1,782.81 Local currency cost 38,032.20 32,294.22 Total 42,818.00 34,077.03 iii 2. Financing plan ($‘000) Cost Appraisal Estimate Actual Implementation cost Borrower financed 8,032.20 7,338.96 Asian Development Bank financed 30,000.00 24,955.26 Total implementation cost 38,032.20 32,294.22 Interest during construction costs Borrower financed 4,785.80 1,782.81 Asian Development Bank financed Total interest during construction cost 4,785.80 1,782.81 3. Cost breakdown by project component ($‘000) Component Appraisal Estimate Actual A. Base Costs Water supply 9,770.30 6,369.30 Solid waste management 3,938.30 9,402.51 Design, supervision, and management consultants 11,217.20 10,856.09 Financial and institutional development consultants 2,352.40 1,638.22 Project implementation and administration 2,862.50 2,045.71 Tax and duties 4,225.80 1,731.24 Investment program management consultants 473.80 251.16 Investment program coordination and administration 139.20 – Subtotal 34,979.70 32,294.22 B. Contingencies 3,052.50 – C. Financial Charges during Implementation 4,785.80 1,782.81 Total 42,818.00 34,077.03 Sources: Original report and recommendation of the President for appraisal estimates, completion information from ADB Mainframe Database (ADB share) and program management and monitoring consultants (for counterpart contribution), and ADB estimates. 4. Project schedule Item Appraisal Estimate Actual Tripura Date of contract with consultants 31 March 2009 4 December 2009 Completion of engineering designs 31 March 2009 4 September 2011 Civil works contract Date of award 30 June 2009 5 September 2011 Completion of work 31 March 2011 30 March 2015 Equipment and supplies Dates First procurement 31 December 2010 5 September 2011 Last procurement 31 December 2010 5 September 2011 Completion of equipment installation 31 December 2011 30 March 2015 Start of operations Completion of tests and commissioning 1 January 2012 31 March 2015 Beginning of start-up 30 September 2012 1 April 2016 Mizoram Date of contract with consultants 31 March 2009 30 October 2009 Civil works contract Date of award 31 June 2009 19 April 2010 Completion of work 31 March 2011 28 September 2012 Equipment and supplies Dates First procurement 30 June 2009 24 March 2010 Last procurement 30 June 2009 19 January 2011 Completion of equipment installation 31 December 2009 31 March 2012 Start of operations Completion of tests and commissioning 31 December 2010 8 December 2012 Beginning of start-up 1 January 2011 9 December 2012 iv Item Appraisal Estimate Actual Sikkim Date of contract with consultants 31 March 2009 22 December 2009 Completion of engineering designs 31 March 2009 31 March 2011 Civil works contract Date of award 15 May 2009 20 September 2011 Completion of work 30 September 2011 25 March 2013 Nagaland Date of contract with consultants 31 March 2009 25 November 2009 Completion of engineering designs 30 September 2009 25 February 2010 Civil works contract Date of award 15 May 2009 14 October 2011 Completion of work 30 September 2011 5 March 2016 Meghalaya Date of contract with consultants 31 March 2009 17 November 2009 Completion of engineering designs 31 March 2009 31 March 2009 Civil works contract Date of award 15 May 2009 13 December 2011 Completion of work 31 December 2009 31 May 2017 Equipment and supplies Dates First procurement 1 April 2012 13 December 2011 Last procurement 1 April 2012 13 December 2011 Start of operations Completion of tests and commissioning 30 June 2013 30 October 2017 Beginning of start-up 1 July 2013 31 October 2017 5.
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