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World Bank Document Document of The World Bank FOR O]FFICIAL USE ONLY Public Disclosure Authorized Report No. 4794-IN Public Disclosure Authorized STAFF APPRAISAL REPORT INDIA BOMBAYURBAN DEVELOPMENTPROJECT Public Disclosure Authorized January 4, 1985 Public Disclosure Authorized Urban and Water Supply Division South Asia Projects Department 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. CURR NCYI M E JU Currency Unit = Rupees (Rs) Rs 1 = US$ 0.09 US$1 = Rs 11.00 Rs 1 :Lakh = US$ 9,091 Rs 1 crore = us$ 909,091 MASUME_AND_QILAj4 ETS 1 meter (m) = 39.37 inches (in) or 3.28 feet 1 square meter (i2) = 10.76 square feet (sq ft) 1 cubic meter (m ) 35.31 cubic feet (cu ft) 1 kilometer (km) = 0.62 mile (mi) 1 square kilometer (kmi) = 0.386 sq miles 1 hectare (ha) = 2.47 acres (ac) or 10,000 sq meters 1 liter (1) = 1.057 quarts liquid or 0.26 gallons (gal) 1 liter per capita 0.26 US gaLllonsper capita per day (lpcd) per day (gpcd) BiI9LBBVIAT MSAERE ALIS - Affordable Low Income Shelter Program BEST - Bombay Electricity Supply and TransportUndertaking BHADB - Bombay Housing and Area Development Board BMC - Bombay Municipal Corporation BMR - Bombay N:etropolitanRegion. BMRDA - Bombay MetropolitanRegion. Development Authority BUDP - Bombay Urban Development PFroject CIDCO - City and IndustrialDevelopment Corporation DCBR - DevelopmentControl and Building Regulations EWS - Economically Weaker Section GOI - Government of India GOM - Government of Maharashtra HDFC - Housing DevelopmentFinance Corporation RIG - Higher Income Group HUDCO - Housing and Urban DevelopmentCorporation KMC - Kalyan Municipal Corporation LIG - Low Income Group LISP - Land Infrastructure Servicing Program LOGFAS - Local Government Finance Administration and Services MCHS - Yiaharashtra Cooperative Housing Society MHADA - Maharashtra Housing and Area Development Authority MIDC - Maharashtra Industrial Development Corporation MIG - Middle Income Group MWSSB - Maharashtra Water Supply and Sewerage Board NBMC - New Bombay Municipal Corporation SUP - Slum Upgrading Program TATE - TechnicaL Assistance Training and Equipment TMC - Thana Municipal Corporation ULCA - Urban Land Ceiling Act WSSD - Water Supply and Sewerage Department (of BMC) INDIA FOR OFFICIAL USE ONLY BOMBAY URBAN D;EVELOPMENT PROJECT STAFF APPIRAISAL REPORT Table of Contents Page No. I. BACKGROUND . ............. 1 A. India Urbanization Trends . ...................................1 B. Maharashtra and Bombay Metropolitan Region (BMR) Urbanization Trends. 2 C. BMR Land, Shelter and Services.... 5 D. Bank Group Role and Straltegy. ................................8 E. Government of Maharashtra Initiatives. 9 II. THE PROGRAM AND THE PROJECT ....................................... 9 A. Policy Issues ........................ 11,, B. BUDP Objectives ....................... 13 C. Project Description ........................ 13 III. PROJECT COSTS, EXECUTION AND FINANCING .. 21 A. Cost Estimates....... .........21 B. Implementation Schedule . 22 C. Responsibilities for Implementation .23 D. Financing .23 E. Procurement and Disbursements .25 F. Accounts and Audits ........................,28 C. Monitoring and Evaluatiori.29 H. Supervision ................................................... 29 IV. MANAGEMENT, ORGANIZATION, AND FINANCE ................. ......... 30 A. Program and Project Management .30 B. Bombay Metropolitan Region Development Authority (BMRDA) . 30 C. Maharashtra Housing & Area Development Authority (MHADA) . 32 D. The City & Industrial Development Corporation (CIDCO) .33 E. Bombay Municipal Corporation (BMC) .34 F. Other Municipal Corporations (KMC, TMC, & NBMC) ................ 35 G. Financial Covenants for Executing Agencies .................... 36 V. COST RECOVERY, PRICING, AFFORDABILITY, AND RESOURCE MOBILIZATION ........................... 37 A. Cost Recovery .37 B. Pricing ..................... 37 C. Affordability .42 VI. PROJECT JUSTIFICATION .............................................. 43 VII. AGREEMENTS REACHED AND RECOMMENDATIONS .46 TABLES and CHARTS in the main body of the report. Chart 1.1 BMR and Project Income Distributions ..................... 4 Table 1.1 Distribution of Hutments in BMC .7 This document has a restricteddistribution znd may be used by recipients only in the performanceof theirofficial duties. Its contents maynot otherwisebe disclosedwithout World Bank authorization. -1 1 Chart 2.1 Slum Transformation Strategies........................... 10 Table 2.1 Slum Transformation Strategy Alternatives ................ 12 Table 2.2 The Project ............................................. 14 Table 2.3 LISP Sites, Location in Subregion ....................... 15 Table 2.4 LISP EWS Core Housing Options ........................... 17 Table 2.5 SUP Types of Slum Hutment Areas, by Zones ............... 18 TabLe 3.1 Summary Cost Estimates .................................. 22 Table 3.2 Summary, Financing and Cost Recovery .................... 23 Cha-rt3.1 Funds Flow Chart ........................................ 24 TabLe 3.3 Procurement Arrangements ................................ 26 Chart 4.1 Organization for Program & Project Coordination and Implementation ...................................... 31 Table 4.1 BMC Income and Expenditure .............................. 35 Table 5.1 LISP - Pricing, Charges and Affordability - Aeroli Node ........................................... 38 Tab'Le 5.2 SUP - Pricing, Charges and AffordabiLity (Summary) ................................ 41 CHARTS Chart 1 LISP Implementation Schedule ............................. 49 Chart 2 SUP Implementation Schedule .............................. 50 Chart 3 BMRDA Organization ...................................... 51 Char-t 4 MHADA Organization ....................................... 52 Chart 5 CIDCO Organization ....................................... 53 Chart 6 BMC Organization ......................................... 54 SKETCHEiS Sketch I Axonometric Drawing of Typical Fully Developed LISP Neighborhood - Airoli Node .......................... 55 Sketch 2 Plan of Axonometric View of Typical Fully Developed LISP Neighborhood - Airoli Node ................ 56 Sketch 3 Land & Infrastructure Servicing Program (LISP) Low-Income Plot, Core and Shelter Options - Airoli Site .. 57 ANNEXES (Tables) 1. Slum Transformation Strategies Tables (1-5) and Chart (1) ...................................... 58-66 2. LISP Sites and Land Acquisition Schedule, Table ................. 67 3. Detailed Costs & Land Use - LISP site, Airoli Node, Table ....... 68 4. Detailed Costs & Phasing - LISP site, Airoli Node, Table ........ 69 5. Detailed Costs, Land Use, & Phasing - LISP site, Charkop-Kandivalli, Table ....................................... 70 6. LISP Service and Construction Standards, Table .................. 71 7. SUP Service Standards, Table .................................... 72 8. LOGFAS Cost DetaiLs, Table ...................................... 73 9. LOCGFAS Equipment List, Table .................................... 74 10. TATE Cost Details, Table ........................................ 75 11. Project Detailed Cost Estimates, Table .......................... 76 12. Project Phasing & Annual Financial Requirements, Table .......... 77 -iii- 13. Project Sources & Applicationsof Funds, Table. ................78 14. Quarterly DisbursementSchedules, Table . .79 15. ImplementingAgencies .. 80-83 16. MHADA Financial Forecasts .. 84 17. CIDCO Financial Statements...................................... 85 18. LISP Pricing, Affordabilil:y,& Cost Recovery (Airoli),Table ................................................. 86 19. LISP Pricing, Affordability,and Cost Recovery (Charkop-Kandavilli),Table ....................... 87 20. SUP Distributionof Plots Among GeographicalZones, Slum Types and Plot Size -- Costs, Prices, and Cost Recovery, Table .............................................88 21. Urban Poverty Impact, TabLe .... 89 22. List of Selected DocumentsAvailable in the Project File.. .90-92 MAPS 1. IBRD 17583 Land and InfrastructureServicing Sites in the BMR 2. IBRD 17584 Land and InfrastructureServicing Site - Airoli Node 3. IBRD 17585 Land and InfrastructureServicing Site - Land Use - Airoli Node 4. IBRD 17586 Airoli Node Typical ResidentialCluster 5. IBRD 17587 Land and InfrastructureServicing Site Charkop-Kandavilli(Phase 1) Land Use. This report is based on the findings of an appraisalmission which visited Bombay in July 1983 and the contributionsof BMRDA's Planning Division. The mission comprisedMessrs. Evan Rotner (Mission Leader), Douglas Graham (IDA), A. Bertaud, B. Ellis, D. Ayres and R. Venkataraman(Consultants), assisted by D. Jones (WUDDR), Ms. Sylvia Gottwald (Consultant),at the pre-appraisal,and Mr. D. Cook (WUDDR). Mr. J. Pickard (Consultant)also assisted in preparing the Appraisal Report. INRM A2NAY_RhIT_VELOgENT ROjELT I. §LCEgRQyNP A. IndjyEhbanization Trends 1.01 India, although primarilyan agriculturalcountry with about 76% of its 1981 populationof 684 million people living in rural areas, is becoming increasinglyurbanized. Its urbtn populationof 156 million bas been growing (1971-81) at a much higher annual rate (3.9%) than the rural population (1.75%). About 6.1 million people per year are now being added to urban areas. Over the next two decades, nearly half (45%) of India's population growth will be located in urban areas. These large increases in population
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