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Technical Assistance Completion Report: India: Project TECHNICAL ASSISTANCE COMPLETION REPORT Division: SAUD/SARD TA No., Country and Name Amount Approved: $1,520,000 TA 4779-IND: Project Implementation and Urban Management Revised Amount: $1,520,000 Improvement in the North Eastern Region (Phase I) Executing Agency Source of Funding Amount Undisbursed: Amount Utilized: Ministry of Urban Development TASF - $1,400,000 $480,545 $1,039,455 Cooperation Fund for the Water Sector - $120,000 TA Approval TA Signing Fielding of First TA Completion Date Date: Date: Consultant: Original: 30 June 2007 Actual: 28 February 2010 11 April 2006 7 July 2006 25 January 2008 Account Closing Date Original: 30 June 2007 Actual: 24 November 2010 Description The TA aimed at assisting the states of India’s north eastern region (NER) in implementing the loan project of the North Eastern Region Capital Cities Development Investment Program (NERCCDIP) and improving urban management for the cities covered under NERCCDIP.1 The cities included Agartala (Tripura), Aizawl (Mizoram), Gangtok (Sikkim), Kohima (Nagaland), and Shillong (Meghalaya). In November 2007, in response to request of the Government of India (GOI), the TA scope was expanded to cover four other cities in NER, and the executing agency (EA) was changed from the Ministry of Development of North Eastern Region (MDoNER) to the Ministry of Urban Development (MOUD). Considering lessons learned from implementation of ADB-funded urban projects in India, particularly in the states that were new to ADB-sponsored urban projects, importance was given to up-front capacity building of executing and implementing agencies. Expected Impact, Outcome and Outputs The TA objective was to strengthen managerial and institutional capabilities of states and MOUD for successful implementation of NERCCDIP. The expected outcome was improved efficiency and effectiveness in managing, implementing, coordinating, and monitoring the implementation of NERCCDIP. The expected key outputs were (i) enhanced project implementation through refinement of managerial and personnel structures, review of project management system and procedures, preparation for project start-up activities, and awareness of related ADB policies and procedures, (ii) training provided in planning, leading, organizing, and coordinating project activities to central and state government personnel, and (iii) initiated implementation of urban management, institutional, and financial reforms under NERCCDIP. The TA’s aim was relevant to the need of enhancing the project readiness while State Investment Program Management and Implementation Units (SIPMIUs) were all new to ADB’s project. Delivery of Inputs and Conduct of Activities After processing of this TA in early 2006, ADB’s urban development investment program in the NER has seen a number of modifications, which necessitated changes in the scope and implementation arrangements as well as cost estimates of the TA. With the change in project scope in November 2007, the TA’s components were amended comprising: (i) project implementation support, establishment of managerial structure and support for preparation of detailed project reports (DPR) for first tranche subprojects (Component A); and (ii) urban institutional, financial, and service delivery reforms (Component B). Recruitment of consultants was put on hold waiting for finalizing this change in scope. Subsequently, the TORs for the consultants were revised and two domestic consulting teams were engaged (Package A covering Component A with 134.5 person-month inputs and Package B covering Component B with 41 person-month inputs) and two international individual consultants (to assist in implementation of Component B with a total of 6 person-month inputs). Actual inputs were 120.8 months from Package A and 41 months from Package B. Inputs of international consultants that were originally planned was turned out to be unnecessary and only national consultant inputs were provided. In addition to the two packages, individual consultants of financial management specialists, geotechnical specialists were recruited to assist the SIPMIU for enhancing project readiness of NERCCDIP. Further, a project management specialist and an urban development specialist, both 1 The multitranche financing facility (MFF) for NERCCDIP for $200 million was approved by ADB on 1 June 2009. The first tranche for $30 million was approved on 1 July 2009, its loan and project agreements were signed on 4 August 2009 and the loan became effective on 19 November 2009. NERCCDIP was initially called the North Eastern Region Urban Development Project-Phase I. It aims at improving the environment and well-being of urban residents in the five program cities through improving urban infrastructure and services and strengthening of institutional development and investment program management. national, were engaged to further strengthen the capacity of MOUD. As a result of the changes in EAs and subprojects to be covered under the first tranche of NERCCDIP, overall, the total consultant inputs were less than the estimate and the performance of consultants for each assignment was satisfactory. Workshops were organized during the last three missions attended by the EA and representatives of the eight NER states. In addition, a study tour was held in Guwahati on 9 September 2008 for senior officials responsible for promoting urban governance and water utility reforms in the NER states. ADB fielded a contact mission on 22-31 October 2007, a consultation mission on 6-7 December 2007, an inception mission on 24-29 July 2008, and an interim mission on 17-20 February 2009. The inputs were mostly delivered satisfactorily. The performance of ADB was considered satisfactory, while the performance of EA and the SIPMIUs was partly satisfactory due to the limited number of state government staff dedicated to the TA. Evaluation of Outputs and Achievement of Outcome The final report under Component A has recommended project management structures, management systems, and procedures; the detailed TORs of the key personnel were prepared. SIPMIUs were established but adequate staffing was delayed, particularly in Gangtok and Kohima. In assisting project start-up activities, with the help of the TA, six of the eight consulting contract packages under NERCCDIP were signed within a month before or after loan effectiveness (the loan was approved in July 2009 and became effective in November 2009). The preparation of DPRs and bidding documents for the first tranche subprojects of NERCCDIP was also supported. However, the needs of revising of DPRs were later identified by the design consultants engaged under NERCCDIP for subprojects in Agartala, Gangtok, and Kohima. The revision of DPRs was time-consuming and the following procurement was delayed. It appears that since SIPMIUs of those three cities were not staffed timely, their review of the DPRs and guidance to the consultant was limited. On the other hand, DPR preparation and procurement in Aizawl and Shillong went smoothly as the initial goods and works contracts were awarded 4 months after loan effectiveness. In consultation with the states, the consultant under Component B prepared a series of urban reform agenda with time- line, including (i) municipalization process, (ii) city level water utility arrangements, (iii) municipal accounting reforms, (iv) property tax reforms, (v) rationalization of users’ charges, (vi) e-Governance reform, and (vii) human resource strategy and capacity development. These are being implemented with the help of institutional development consultants under the loan project. The expected project outputs were partly achieved, as shown by the satisfactory progress in some cities and delay in other cities under NERCCDIP. The project outcomes, as indicated by signing of consultant and procurement contracts and initiation of institutional development, were also partly achieved. Overall Assessment and Rating Based on the above evaluation, the TA can be rated partly successful. Overall, the project outcomes and outputs from Component A have been partly achieved because three of project cities have delayed in the initial investment packages, while the project outcomes and outputs under Component B have been mostly achieved. Although the objective of TA was relevant, due to various changes in the project scope to including more states in NER and changing EA from MDoNER to MOUD, the fielding of consultants were delayed and a large amount of TA funds were left unused, which shows the TA activities and the use of funds were not very efficient. The TA has positive effectiveness and NERCCDIP is being implemented smoothly. Major Lessons The human resource in the NER state governments is limited, where one government officer is often tasked with multiple assignments. Under such circumstance, SIPMIUs could not have been adequately staffed when the consultant was fielded to help to prepare DPRs. As a result, the consultant could not receive necessary guidance or feedback from SPIMIUs to effectively support to prepare well-developed DPRs. Therefore, the design consultant under the loan project later identified the needs of revising DPRs. Lessons learned from TA are: (i) the human resource in EA is critical needed in implementing the similar TA; (ii) the future operator, or at least some staff from the future operator, should be involved in DPR preparation to ensure sustainability of DPR. Recommendations and Follow-Up Actions The first tranche of NERCCDIP is under implementation while the second tranche and NERUDP Phase II are scheduled for preparation. The functions of this TA have been taken over by various NERCCDIP consultants. ADB will continue to monitor and support both projects through routine reviews. Prepared by: Mingyuan Fan Designation: Urban Development Specialist SAUD____ 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. .
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