Aide Memoire

South Asia Department Urban Development and Water Division

DRAFT AIDE MEMOÍRE

L2528-IND AND L2834-IND: NORTH EASTERN REGION CAPITAL CITIES DEVELOPMENT INVESTMENT PROGRAM REVIEW MISSION (12 – 19 November 2013)

I. INTRODUCTION

1. On 23 June 2009, ADB approved the Multitranche Financing Facility (MFF) for the North Eastern Region Capital Cities Development Investment Program (NERCCDIP) for an aggregate amount not exceeding $200 million. A framework financing agreement (FFA) for the MFF was signed by the Government of India and Asian Development Bank (ADB) on 14 May 2009. The first periodic financing request (PFR) for $30 million was approved on 1 July 2009 and the loan agreement was signed on 4 August 2009. The second PFR for $72 million was approved by ADB on 16 December 2011 and loan agreement was signed on 19 November 2012.

2. ADB fielded a review mission (the Mission) for the MFF and Loans 2834 and 2528 from 12 to 19 November 20131. The Mission met the Central Executing Agency, the Ministry of Urban Development (MOUD), State Investment Program Management and Implementation Units (SIPMIUs) of three2 states under NERCCDIP, consultants - Project Management and Monitoring Consultants (PMMC), Design and Supervision Management Consultants (DSMCs), Institutional Development Consultants (IDCs) - and key contractors working in these states. A wrap-up meeting was held on 19 November 2013 with the Joint Secretary (UD) of MOUD and Director (UD) of MOUD, and Director (ADB-I) of Department of Economic Affairs (DEA). A list of key persons met is included in Appendix 1.

II. SUMMARY OF PROJECT PROGRESS

A. Overall Physical Progress and Implementation Status

3. Procurement Status. All 12 contracts have been awarded under Project 1, and only 9 out of 32 contracts are left to be awarded under Project 2. Appendix 2 presents the current status of all contract packages in the updated the Procurement Plans, and Appendix 3 presents the action plan and timelines for completing the remaining procurement under Tranche 2, as agreed with the SIPMIUs, MOUD and the Mission.

4. Implementation Status and Output Summary. The overall physical progress and outputs achieved to date under Part A of Projects 1 and 2 is summarized in Appendix 4. For Part B, Project Management and Monitoring Consultants (PMMC) and 5 Design, Construction Supervision and Management Consultants (DSMCs) are engaged. Institutional development

1 The Mission comprised Ms. Neeta Pokhrel, Urban Development Specialist/Mission Leader, Mr. Edward Moises, Project Analyst, Ms. Ninette Ramirez, Safeguards Specialist (Staff Consultant), Mr. Azizur Rahman, Gender Specialist (Staff Consultant), Mr. Pritam Kapur, PMMC Team Leader (Consultant), Mr. Karni Singh Rathore, North East Project Support Unit Team Leader (Consultant). 2 Sikkim, Meghalaya and Mizoram

2 activities in all states are ongoing - supported under Project 1 in Shillong and Agartala, and supported under Project 2 in Aizawl, Gangtok and Kohima, through the Institutional Development Consultants. Appendix 5 outlines the implementation status of the agreed reforms. While accounting reforms are either completed or close to completion in all 5 states, others are progressing well.

B. Use of Loan Funds

5. Cumulative Contract Awards and Disbursement. As reflected in ADB’s mainframe, as of 6 November 2013, under Project 1, all 12 contracts have been awarded. Cumulative disbursements stand at $13.38 million (52%). Under Project 2, 23 out of 32 total contracts or around 90% of the committed funds have been awarded. However, cumulative disbursements under Project 2 stand very low at $2.6 (around 5%). The SIPMIUs confirmed that the following additional statement of expenditure (SoEs) have been sent to MOUD as of 10 November 2013. In addition, Kohima and Gangtok SIPMIUs will send an additional claim of around Rs. 7 Crores, collectively, by 22 November 2013 to MOUD. Aizawl and other SIPMIUs may send further claims incurred until 26 November 2013 to MOUD.

Table 1: Claims Submitted to MOUD until 10 November 2013 (Rs. Crores) SIPMIUs Claims in Rs. Claims in Rs. under L2528 under L2834 Kohima 84, 27,936.00 1,65, 87,036.00 Gangtok 1,5041130.00 2,61,45,810.00 Aizwal 65,00,000.00 10,15,00,000.00 Agartala 54, 50,136.00 7, 77,98,445.00 Shillong 22,07,444.00 5,41,455.00

C. Performance in 2013

6. Projects’ performance to date against the 2013 targets is summarized Table 1, which is quite encouraging. Performance of the states varies. While Aizawl has exceeded the targets for both loans, Agartala and Kohima still need to make a big push in achieving their committed project performance targets. Kohima and Gangtok need to make the pending contractor payment within the week of 18 November 2013 and submit the SoEs for them to MOUD. Project implementation may strengthen significantly in all 5 states provided the key impediment - the seriously constrained fund flow - is immediately removed and maintained as such by both MOUD and the states.

Table 2: Performance against Committed Contract Awards and Disbursement Targets3 May 2013 – 10 November 2013 (Rs. Crores) Agartala Aizawl Gangtok Kohima Shillong Tranche 1 Disbursement Target 1.36 1.22 6.50 16.68 2.50 Achievement 1.70 1.29 5.34 5.77 1.04 Tranche 2 Contract Award Target 2.80 102.6 43.77 0.00 1.98

Achievement 0.00 109.02 46.20 0.00 0.00 Disbursement Target 22.00 12.76 6.4 4.32 2.07 Achievement 11.30 13.49 3.54 3.51 0.23

3 These targets were committed by the States in May 2013 for May-Nov. 2013. Figures as of 10 Nov. 2013.

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III. KEY ISSUES

1. Contract Management and Contractor Concerns

7. Contract management, especially of works contracts, in all states needs to be immediately and significantly improved and made more effective. The Mission, as highlighted in earlier review missions, reiterated that SIPMIUs should not allow significant delays, such as 8-10 months as seen in the past, in contractor mobilization and overall project implementation delays by the contractor. All SIPMIUs, with the DSMC’s assistance, need to conduct thorough two weekly and monthly planning with each of their contractors scrutinizing their monthly work plan, critical path, manpower and equipment deployment schedule/plan, methodology and detailed work schedule. The Mission found that the pace of progress and level of planning still needs immediate strengthening in all states. Additionally, the Mission recommended that all SIPMIUs should continue the practice of inviting top-level representatives of their key contractors every three months to discuss issues and measures to expedite works faster.

8. The Mission also met with all key contractors currently working in these three states to follow up on the work progress commitments made by them, emphasize the need to expedite works speedily in order make up for lost time, hear their concerns and provided EMP implementation and safeguards compliance orientation workshop. The following key concerns/ issues were raised by the contractors:  Delays in payment  Delays in receiving designs/ drawings and site clearances  Delays in approval of designs and drawings submitted  Labour availability, restrictions  Currency fluctuation4

2. Consultant Management

9. All 5 DSMCs need to immediately reassess and supplement their contract management and construction supervision personnel in the field in order to improve planning, construction supervision and contract management on-site, which was found inadequate in all states. SIPMIUs and their respective DSMCs should collectively assess their remaining input, since all remaining designs will now be completed by early next year, including that of Tranche 3, in order to focus the resources on effective contract management and construction supervision in the field. After the design period is over in early 2014, all DSMCs need to provide full-time on-site personnel on the key contracts and minimize the fly-in-fly-out consultants. The following specific and key recommendations were made: i. DSMC Gangtok: Team Leader acceptable to the SIPMIU to be fielded by 30 November 2013. Adequate full-time construction supervision engineers to be fielded for each of the major works contracts in order to conduct measurements and improve construction supervision and contract management. ii. DSMC Shillong: Full-time solid waste management (SWM) specialist to be fielded immediately for the design and tender documents completion of phase 2 of Marten landfill site, closure and optimization of existing site, composting plant operationalization

4 In Aizawl, the STP contract did not allow for currency fluctuation compensation/adjustment, even though significant equipment import was expected from the contractor. The Mission advised the SIPMIU to submit request on contract variation on this aspect.

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and preparation of comprehensive SWM medium and long-term measures for Shillong. Senior design engineer for sewerage will also be fielded to complete the DPR in time. iii. DSMC Aizawl: The Mission raised serious concerns on the performance of and non- compliance by DSMC on safeguards documentation and actions required, which has resulted in all works in concerned packages being suspended by the Mission until preparatory actions and compliance check by ADB is completed. As most of the designs have been completed, and the remaining detailed design report for Tranche 3 will be completed by early 2014, the SIPMIU will pursue alternative ways to obtain construction supervision and contract management consulting support. iv. PMMC: Once all the design is completed and vetted by MOUD, PMMC’s role will need to be changed also to providing more in-state quality control and monitoring, which needs more frequent visits by the PMMC team and close hand-holding .

3. Human Resources in SIPMIUs

10. While some strengthening of the SIPMIUs has been carried out since May 2013, both Gangtok and Aizawl SIPMIUs lack adequate human resources to expedite the rather large tranche 2 components/packages currently underway in these two states. In case of Gangtok, a dedicated senior water supply engineer, and an assistant and junior engineer for each of the three large contract packages under tranche 2 is immediately required. In case of Aizawl, senior executive level engineers for the three sectors being improved by the projects as well as capable environmental and social safeguards officers are immediately required. Both governments of Sikkim and Mizoram have committed to providing all additional staffing by 20 December 2013.

4. Environmental and Social Safeguards Compliance

11. The Mission shared its concerns and reiterated the immediate need to improve environmental and social safeguards compliance monitoring by the SIPMIUs and the DSMCs. Many actions remain pending on environmental and social safeguards compliance monitoring agreed during the review mission in September 2013, especially in Agartala, as shown in Table 3. It was agreed that Agartala and Kohima SIPMIU will send status update on these by 22 November 2013 and all pending reports/ revisions will be submitted by 15 December 2013.

Table 3: Summary of Outstanding Actions on Safeguards Compliance Agreed Action Status 1. Submission of updated IEE for Agartala Not complied. Tranche 1 water supply subproject 2. Submission of updated IEE for Kohima ADB comments sent 08-Oct-2013. Tranche 1 water supply subproject Waiting for response/ revision. 3. Submission of updated IEE for Kohima ADB comments sent 08-Oct-2013. Tranche 1 solid waste management subproject Waiting for response/ revision. 4. Submission of social impact assessment and Not complied. screening checklist for Agartala Tranche 2 water supply subproject (14 overhead tanks and 7 groundwater treatment plants) 5. Submission of social impact assessment and ADB comments sent 08-Oct-2013. screening checklist for Kohima Tranche 1 water Waiting for response/ revision. supply subproject (final locations of zonal tanks) 6. Submission of social impact assessment and ADB comments sent 08-Oct-2013. screening checklist for Kohima Tranche 1 solid Waiting for response/ revision.

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Agreed Action Status waste management subproject (additional works) 7. Submission of semi-annual environmental Agartala – not complied and social monitoring reports including GAP Kohima – Submitted. ADB comments implementation to ADB for review and sent 08-Oct-2013. Waiting for disclosure response/ revision. 8. Confirmation of establishment of grievance Not complied. redress committee in Agartala by 30 September 2013. 9. Disclosure of relevant safeguards information Argatala – no response. in accessible places and in form and language(s) understandable to local people and Kohima – completed. other stakeholders. 10. Conduct fresh round of consultations in to Argatala – no response. raise public awareness of the Investment Program. Kohima – as per DSMC, proposal for funding pending at MoUD

12. Findings from Environment Compliance Review in the States Visited. Tranches 1 and 2 for the NERCCDIP are classified as Category B for Environment. The Mission reviewed subprojects for Gangtok, Shillong and Aizawl under the Investment Program. Environmental management plans were included in all civil work contract documents and monitoring of civil works is ongoing. All required environmental clearances are obtained. Semi-annual monitoring report covering January to June 2013 were submitted to ADB. IEEs and monitoring reports are disclosed at SIPMIUs websites.  In Gangtok, the Mission finds satisfactory EMP implementation and supervision in Tranche 1 works while Tranche 2 civil works are yet to be started, the Mission requested SIPMIU to secure and put up signages in all subproject sites.  In Shillong, the Mission requested SIPMIU to improve Tranche 1 civil works EMP implementation and supervision of workers’ health and safety. Tranche 2 civil works are yet to be started. It was agreed that SIPMIU will secure and put up signage at the worksites and submit the updated IEEs for proposed additional works under Tranches 1 and 2 by 30 November 2013.  In Aizawl, it was agreed that the SIPMIU will provide actions on implementation of post- construction mitigation measures as specified in Tranche 1 EMP and send updates to ADB by January 2014. SIPMIU agreed to secure and put up signage at the worksites and start consultations, information dissemination, and disclosure of relevant information in a form and language stakeholders can easily understand. SIPMIU agreed to hand over 5 toilet blocks’ sites to the contractor immediately and the remaining 5 by 15 December 2013. SIPMIU also agreed to improve Tranche 2 civil works EMP implementation and supervision of workers’ health and safety, and include actions in the environmental monitoring report covering July- December 2013 on implementation of pre-construction mitigation measures as specified in the Tranche 2 EMPs.

13. Involuntary Resettlement. Tranches 1 and 2 are classified as Category B for Involuntary Resettlement. The mission reviewed Tranches 1 and 2 subprojects for Gangtok, Shillong and Aizawl. Semi-annual environmental monitoring reports covering period January to June 2013 were submitted to ADB. Resettlement Plans (RP) and monitoring reports are

6 disclosed in SIPMIUs’ websites. Grievance redress committees are formed and notified in each SIPMIU.  In Gangtok, the Mission finds no involuntary resettlement impacts in Tranche 1 works while Tranche 2 civil works are yet to be started, the Mission requested disclosure of relevant information to stakeholders and conduct fresh round of public consultations.  In Shillong, SIPMPIU agreed to submit social impact assessment and screening checklist for proposed additional works under Tranche 1 for solid waste management (SWM) subproject by 22 November 2013. The RP for Tranche 2 SWM, for Marten Phase 2, will be prepared and submitted, with assistance from DSMC by 20 December 2013. The RP should include potential impacts on rag pickers and scavengers in the existing dumpsite. It was also agreed to disclose relevant information in a form and language stakeholders can easily understand.  In Aizawl, the Mission requested SIPMIU to stop all works on the access road construction until RP has been submitted and approved by ADB, should the design changes be proposed. The Mission requested SIPMIU to follow the originally approved design as the chances of approval of the revised design are minimal. Similarly, no works should commence until the updated RP for sewerage and sanitation subproject, water supply subproject and the 10 toilet blocks are submitted and approved. The SIMPMIU may do so in a zone-wise manner. It needs to include construction work plan, access road to the sewage treatment plant and procedures for compensation and rehabilitation of eligible affected people for temporary impact compensation. SIMPIU agreed to submit them by 15 December 2013. It was agreed to disclose relevant information to stakeholders and conduct fresh round of public consultations.

5. GAP Implementation Status

14. The gender action plan (GAP) for NERCCDIP identifies activities committed by the states to increase women’s participation in project and services to be provided through the project. The Mission noted that while the three SIPMIUs visited are aware of their GAP commitments, however very little progress has been made in implementing these, and that no budget was earmarked for their implementation. The status of progress against target indicators identified in the GAP is as follows:

 In Gangtok, the Mission noted that not much progress with respect to GAP activities has been made in Gangtok. A social scientist was engaged by the SIPMIU in July 2013 who is also responsible for implementation of GAP, however SIPMIU has no budget to implement the GAP activities. The Mission agreed to allocate a separate sub-budget head and PCSS number for implementation of GAP among others, and the SIPMIU agreed to start implementing it in a time-bound manner to make up for the lost time.  In Shilong, SIPMIU is implementing some of the GAP activities. The social safeguards specialist in SIPMIU, who works in consultation with community development specialist of DSMC, is responsible for implementing GAP activities. The Mission learnt that budget estimate to implement GAP activities was prepared and submitted by SIPMIU to MOUD in April 2013 and is still pending. The Mission requested SIPMIU to re-submit the budget requirements, combined with other activities as outlined in the next section, for approval to both MOUD and ADB.  In Aizawl, the Mission noted that SIPMIU and DSMC have separately engaged focal persons to implement GAP. Though the project has made some progress in implementing of GAP, covering areas where work is in progress, but progress is very slow and needs to be accelerated in the following: (i) exploratory study on possible

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livelihood opportunities from available recyclable materials and the market for possible products from these recycled materials; (ii) training programs on alternative livelihoods for women using recyclable materials ; (iii) demographic survey of the city, showing gender differential access to urban services, income / poverty levels; (iv) instituting geographic and sex-disaggregated project management information system; (v) on-the- job capacity-building activities for SIPMIU on gender-sensitive recruitment, management, procurement and contract management, project and performance monitoring, safeguard compliance, land acquisition, and preparation of feasibilities studies and detailed designs.

15. The Mission requested all SIPMIUs to reiterate to their contractors to ensure employment of women in the construction activities under NERCCDIP with implementation of “same pay for work of equal value‟. It was also emphasized to put in place gender inclusive monitoring mechanism and report GAP updates semi-annually as part of the social safeguards monitoring report. A GAP progress update format for Aizawl, Gangtok and Shillong was finalized with the SIPMIU and shared, attached in Appendix 6. The same will be provided to Agartala and Kohima by ADB’s Gender Specialist by 30 November 2013.

6. Budgeting for and Implementation of RP, EMP, GAP, CAPP, IEC and PR

16. The Mission found that most SIPMIUs have not planned and budgeted for implementation of the RP, EMP, GAP, CAPP, IEC and PR for NERCCDIP. It was agreed that all SIPMIUs will submit their 2-yearly budget estimates for the implementation of these to both MOUD and ADB by 15 December 2013, and a separate PCSS will be provided by ADB for the same.

7. Reporting

17. Status, issues and recommendations on reporting are as follows:  QPRs- 1st and 2nd quarters progress reports for 2013 have been submitted; 3rd quarter progress will be submitted by 30th November 2013; succeeding quarterly progress reports will be submitted within 30 days after the end of each quarter following the agreed format; and it was agreed to include SIPMIUs compliance with actions agreed in the review missions. The QPRs shall also indicate, among others, progress made and problems encountered during the quarter under review, steps taken or proposed to be taken to remedy these problems, and proposed program of activities and expected progress during the following quarter.  Safeguards monitoring reports including GAP implementation reporting –All states to send to ADB directly with copy to MOUD. ADB will provide guidance on standardisation. Safeguards monitoring reports must be sent electronically twice a year for environment and social safeguards, in a quality that can be publicly disclosed in ADB’s webpage on a timely manner. The dates agreed submission of environmental and social safeguards reports have been made to coincide with 2 QPR dates (on or before 31 October and on or before 31 May). GAP implementation status should be separately included, in the format provided in Appendix 6, as part of the safeguards monitoring reports.  SOE preparation –Quality of SoEs are still very low. DMSC experts need to continue assisting in SOE preparation and financial reporting by fielding adequate financial experts in the field, especially in Gangtok, Aizawl and Agartala.

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8. Customized Training on Submission of Withdrawal Applications/SOEs.

18. The Mission recommended that a customized training on submission of Withdrawal Applications/SOEs be carried out by ADB’s India Resident Mission staff for the SIPMIUs personnel preparing the withdrawal applications on how to improve quality of claims. The target date for the training was set on 15 December 2013. ADB will confirm the date and send invitations to SIPMIUs and MOUD staff.

9. Submission of Audited Project Financial Statements (APFS) for FY 2012/2013

17. Gangtok, Shillong, Aizawl SIPMIUs have already sent their APFS and audit certificates for FY2012-2013. Agartala and Kohima SIPMIUs are expected to submit their APFS to MOUD by 30 November 2013. MOUD will submit the consolidated APFS to ADB by 15 December 2013.

10. Parity and Usage of Project Implementation and Administration

18. A large disparity and need for clarity in the usage of Project Implementation and Administration budget was found in the states. While some states have very large P&IA costs and are using it for all purposes, other states are not utilizing it even for the purposes that it was intended. MOUD was requested to provide some clarity and guidance in ensuring the optimization of PI&A budgets with the SIPMIUs.

11. Reforms Compliance

19. The Mission reviewed the implementation of reforms in the three states visited and found that, while they are generally on track, and a lot of progress has been made in completing all preparatory steps, many high-level decisions on completing their implementation remain outstanding. By 15 December 2013 all SIPMIUs will, based on consultation with high level officials in each of the three states visited, send the exact summaries of decisions/ actions to be carried out in the next six months with regards to completing especially (i) the remaining agreed municipalization actions, (ii) implementation of property tax, (iii) implementation of user charges, and (iv) performance improvement of water service providers and regulation of services. The Mission was pleased to note that double entry accounting has been largely completed and operational in all states.

12. Surrendering Savings from Project 2, Loan 2834 and MFF Extension

20. MOUD and DEA, in consultation with the States, have already submitted a request to ADB for surrendering $12 million from Loan2834, which is being processed in ADB.

21. Similarly, MOUD, through the DEA, had requested an extension of the loan availability period under the Financing Framework Agreement (FFA) of this MFF from 30 June 2016 to June 2019. Request was also made to revise date of submission of last financing PFR to 31 December 2014. States had committed progress milestones from May 2013- November 2013 as conditions for processing such an extension so that all stakeholders are assured of improved pace of implementation and project performance. Since the States are making a concerted effort in improving performance and have come close to meeting their agreed targets, the Mission will recommend and process the MFF extension request to ADB

9 management immediately upon its return to Manila. Government of Nagaland for Kohima works, Government of Tripura for Agartala works, and Government of Meghalaya for Shillong works need to still make a concerted effort immediately and over the six months to provide such an assurance that the states are committed and can deliver the future works in parallel. Inclusion of Tranche 3 works for these states may be re-discussed pursuant to assessing performance over the next three months of tranches 1 and 2.

13. Scope and Preparations for Tranche 3

22. The Mission agreed with the SIPMIUs and MOUD the following guiding principles and readiness criteria for Tranche 3:

 All proposed subprojects must meet the subproject selection criteria outlined in Schedule 4 of the Financing Framework Agreement (FFA)  Contract packaging to be kept as less than 3 contract packages per state  DPRs for proposed subprojects to be submitted to MOUD by 1 February 2014  All tendering to be completed by October 2014  All works must be completed by December 2018.

23. The following overall tentative scope for Tranche 3 in the states visited was agreed:

 Gangtok: 2 contract packages as follows (i) remaining water supply components, including strengthening of upstream supply and storage system, to achieve 24*7 water supply in Gangtok city, (ii) potentially sewerage in the city core areas currently uncovered.

 Aizawl: 3 contract packages as follows (i) comprehensive SWM improvement package, (ii) remaining water supply components to achieve universal metering and non-revenue water minimization, (iii) rain water harvesting.

 Shillong: 2 contract packages as follows (i) remaining investment in achieving comprehensive SWM improvement including support in composting plant, (ii) sewerage and 2.5 MLD STP in a pilot area, Zone 1a1.

24. Under Projects 1 and 2, most contract packages suffered significant delays in procurement5, repeated rebidding and low contractor participation. In order to learn lessons and avoid such a situation in Tranche 3, it was agreed to (i) carefully conduct contract packaging, minimizing contract packages to preferably two or maximum 3 per state, (ii) wider advertisements, organization / participation in business opportunity seminar and better dissemination of bid documents to prospective bidders through web, starting from March or April 2014, and adherence to the following agreements made during review mission for NERCCDIP in May 2013:  cost of the contract package should be assessed based on the current market rates, during bid evaluation (prior to opening of the price bids) and any revision in cost estimates, if required, should also be done prior to opening of financial bid;  all revisions in cost estimates must be approved by MOUD;  SIPMIUs and DSMCs must ensure that price assumptions for revision are supported by documents, if not of SOR;

5 For instance, large number of contract packages under Project 2 took more than 1.4 years to finalize from the start of bidding.

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 while preparing the price bid evaluation report, under the section “reasonableness of price of lowest evaluated bidder”, the price quoted by the lowest evaluated substantially responsive bidder should be compared with the engineer’s estimate, as well as the cost of the contract package based on the current market rates. The decision to award / request for negotiations / reject and request for rebid should be accordingly made by the IPEC, submitted to MOUD for vetting and then submitted to ADB for consideration. The entire bid evaluation process should be completed well within the bid validity period;  sufficient efforts must be exercised by all states in improving bidder participation.

IV. STATE-LEVEL FINDINGS AND ACTION PLANS

25. The Mission met with Chief Secretaries of Sikkim and Mizoram, Principal Urban Secretaries of all the three states visited, and Finance Secretaries of Sikkim and Mizoram to convey key concerns and issues faced by the project in their states. The following action plans were discussed, and all state-level commitments were provided by the high-level state officials met during the Mission. The key impediments/ non-compliance in fund release and acute staff shortage in SIPMIUs in both Sikkim and Mizoram were highlighted by the Mission, and the Chief Secretaries as well as the Finance Secretaries of both these states have provided absolute commitment to comply with the covenants at all times in future. All three states’ high level officials have also reiterated their commitment to spearhead and complete the remaining agreed institutional and financial reforms, as more than 4 years have already passed under NERCCDIP. The Mission also highlighted lack of adequate delegation of power and authority to the Project Directors at all times, which was found to be hampering project progress in a few states. The Mission urged all state governments, including that of Tripura and Nagaland, to ensure that this key commitment is revisited and ensured at all times.

A. Agreed Action Plan for Sikkim

Actionsb. Resp Due Date 1 Release Rs. 3 Crores to SIPMIU to allow SIPMIU to pay the FD, GoS 18 November contractors; 2013 FD to provide imprest amount and streamline internal procedures to ensure all funds received for the project are 26 November transferred to SIPMIU within 2 weeks 2013

2 Issue delegation of power and authority, vetted by the FD, to GoS 26 November the PD 2013 3 Appoint all outstanding staff in SIPMIU GoS 15 December 2013 4 Provide all outstanding clearances for the three contracts under GoS, SIPMIU 30 November Tranche 2 to commence work in full speed 2013 5 Clear all remaining advance and claims and submit SoE for the SIPMIU 20 November remaining claims to MOUD 2013 7 Submit timelines for the pending decisions to be made from SIPMIU, GoS 30 November GoS to implement the remaining reforms, especially on 2013 municipalization, water supply and SWM reforms including metering, and property tax. 8 Submit 5 monthly (Nov 2013 - March 2014) action plan with IDC and 30 November milestones for implementing the remaining institutional and SIPMIU in 2013 financial reforms consultation with GoS 9 Constitute a reforms committee with all stakeholder GoS 1 December departments 2013

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Actionsb. Resp Due Date 10 Submit PR Plan from IDC (with budget implications and IDC 15 December timelines) for the project PR, community consultation, universal 2013 metering and achievement of 24*7 water supply from the IDC.

11 Submit 2-yearly budget estimate to ADB for implementation of SIPMIU 30 November GAP, RP, PR, Consultation, EMP, etc, for creation of separate 2013 sub-budget and PCSS number 12 Submit ToR and draft EoI for NGO engagement SIPMIU with 1 December support from 2013 DSMC and IDC 13 Provide all outstanding construction drawings, documents and DSMC 15 October designs to the three contractors under Tranche 2 2013 14 PPMS – baseline data gaps and timelines in completing them - DSMC 1 December for both tranches and summary of tranche 1 outputs to be 2013 submitted 15 Submit of concept note of piloting 24*7 in the two water supply DSMC with 22 November zones implemented under Tranche 1, identifying the gaps and PSU support 2013 measures required, along with preliminary cost estimates. 16 Prepare and submit to ADB contract variation request for SIPMIU with 30 November tranche 1 water supply contract for metering and additional help from 2013 works in achieving 24*7 piloting in the two zones DSMC and PSU 17 Submission of preliminary design on achieving 24*7 water SIPMIU with 15 December supply in all areas of Gangtok city help from 2013 DSMC 18 Submit tender documents on meter purchase for Gangtok city SIPMIU with 7 December for universal metering help from 2013 DSMC and PSU 19 Submit contract variation requests to include house SIPMIU with 15 December connections and meter installation in the two water supply help from 2013 contracts under Tranche 2 DSMC and PSU 18 DPR for Tranche 3 to focus on achieving 24*7 water supply in SIPMIU (DSMC 15 January Gangtok. DPRs all everything proposed under Tranche 3 to be to prepare with 2014 submitted to MOUD help from PSU and submit to SIPMIU by 7 January 2014) 19 Submit Gender Action Plan updates in the format provided SIPMIU with 1 December DSMC support 2013

20 Secure and provide signage on sites of tanks and reservoirs SIPMIU with 15 December help from 2013 DSMC and in coordination with 3 contractors 21 Secure and provide signages\ at landfill site. Submit photo SIPMIU, to be 15 December documentation of site preparation and consultations with assisted by 2013 affected rag-pickers DMSC, in coordination with GMC and

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Actionsb. Resp Due Date landfill contractor 22 Disclose relevant safeguards information in accessible places SIPMIU with 15 January and in form and language(s) understandable to local people DSMC support 2013 and other stakeholders.

B. Agreed Action Plan for Meghalaya

Actions Resp Due Date 1 Provide commitment letter to MOUD and ADB on SWM plans in GoM 18 Nov 2013 order to optimize Marten landfill site for at least 10 years, optimization of composting plant and other SWM measures 2 Send request for contract variation for Phase I works at Marten SIPMIU 22 November landfill site to ADB 2013 3 Immediately field a DSMC senior SWM specialist for conducting DSMC 30 November comprehensive review of SWM strategy forward, including DPR 2013 finalization for Phase 2 Marten landfill site, composting plant optimization and operations, comprehensive review of 4 FBER for the 2 bins packages to be sent to ADB SIPMIU 26 November 2013 5 Process the claim from Marten contractor under tranche 1 and SIPMIU 26 November submit the SoE for the same to MOUD 2013 6 Provide 2-yearly budget estimate for implementation of GAP, SIPMIU 30 November RP, EMP, PR, Community Consultation, etc, to ADB for creation 2013 of separate sub-category and PCSS number 7 Submit timelines for the pending decisions to be made from SIPMIU, GoM 30 November GoM to implement the remaining reforms, especially on 2013 municipalization, water supply and SWM reforms including introduction of user charges and property tax. 8 Submit 5 monthly (Nov 2013 - March 2014) action plan with IDC and SIPMIU in 30 November milestones for implementing the remaining institutional and consultation with 2013 financial reforms GoM 9 Review the accounting software developed in other NERCCDIP SIPMIU, IDC 30 December cities, provide update on its appropriateness to MOUD and ADB, Finance Expert 2013 customize and implement in Shillong. 10 Submit updated IEEs, social impact assessment and screening SIPMIU with DSMC Along with checklist for Shillong proposed additional works for solid waste support contract management subproject and RPs, as applicable and advised, for variation for Shillong Tranches 1 and 2 solid waste management subprojects Tr 1, along to ADB for review and disclosure as per ADB safeguards policy with DPR for Tr. 2. 11 Disclose relevant safeguards information in accessible places SIPMIU with DSMC 15 January and in form and language(s) understandable to local people and support 2013 other stakeholders. 12 Submit revised DPR with revised cost estimates to MOUD for SIPMIU with 30 December SWM improvement package to be funded under Tranche II, support from DSMC 2013 including Marten Phase II, other improvements in SWM management, improvements/needs in the composting plant 13 Submit tender documents for above SIPMIU, with 15 January support from DSMC 2014 and PSU 14 Submit DPRs for contract packages to be included in Tranche III SIPMIU 15 January

13

Actions Resp Due Date to MOUD for review and approval 2014 15 Submit tender documents for above SIPMIU with help 30 January from DSMC and 2013 PSU 16 Submit Gender Action Plan updates (for Tranche 1 and 2) for the SIPMIU with help 2 December last six months, as part of the social safeguards report and using from DSMC 2013 the format provided by the Mission. 17 Secure and provide signages at landfill site. Submit photo SIPMIU, assisted 15 December documentation of site preparation and consultations with by DMSC and in 2013 affected rag-pickers coordination with stakeholders and landfill contractor

C. Agreed Action Plan for Mizoram

Actions Resp Due Date 1 Provide senior executive level engineers for all three sectors, GoM 15 and provide safeguards as well as remaining field level December engineers 2013 2 Assess, prepare cost estimates and contract variations for SIPMIU with support 15 ensuring metering and household connections under existing from DSMC and PSU December water supply and sewerage packages and submit to MOUD and 2013 ADB for review and approval. Changes in the IEE and other associated safeguards documents also need to be submitted for the same. 3 Prepare ToR and tender documents for the new supervision SIPMIU with support 15 consultants, post completion of all design under Tranche 3 from PSU December 2013 4 Submit all safeguards compliance documents, after completing SIPMIU with support 15 surveys, to ADB for review and approval. No works to start prior from DSMC December to the approval of the same for the particular contract. 2013 5 Provide 2-yearly budget estimate for implementation of GAP, SIPMIU 30 RP, EMP, PR, Community Consultation, etc, to ADB for creation November of separate sub-category and PCSS number 2013 6 Submit timelines for the pending decisions to be made from SIPMIU, GoM 30 GoM to implement the remaining reforms, especially on November municipalization, service delivery reforms, introduction of user 2013 charges and property tax. 7 Submit 5 monthly (Nov 2013 - March 2014) action plan with IDC and SIPMIU in 30 milestones for implementing the remaining institutional and consultation with November financial reforms GoM 2013 8 Conduct ring-fencing of PHED operations and other data SIPMIU with support Starting 30 collection and reforms in PHED from IDC November 2013 9 Disclose relevant safeguards information in accessible places SIPMIU with DSMC 15 January and in form and language(s) understandable to local people and support 2013 other stakeholders. 10 Submit DPRs for contract packages to be included in Tranche III SIPMIU 15 January to MOUD for review and approval 2014 11 Submit tender documents for above SIPMIU with help 30 January from DSMC and PSU 2013

14

Actions Resp Due Date 12 Submit Gender Action Plan updates (for Tranche 1 and 2) for the SIPMIU with help 2 last six months, as part of the social safeguards report and using from DSMC December the format provided by the Mission. 2013 13 Secure and provide signage at all project sites and conduct SIPMIU, assisted by 15 consultations. DMSC and in December coordination with 2013 stakeholders and contractors

V. SUMMARY, PROGRESS COMMITMENTS AND ACTION PLAN

1. Disbursement Commitments from the States

25. The States have provided the following disbursement targets for Dec. 2013 – June 2014. State government, MOUD and PSU will assist the SIPMIUs to closely monitor progress, conduct planning exercise with contractors and improve implementation speed over the next seven months.

Table 3: Disbursement Targets Committed from the States for December 2013 – June 2014 (Rs. Crores) Agartala Aizawl Gangtok Kohima Shillong Tranche 1 2.58 1 2.79 7.33 2.50 Tranche 2 18.53 16.3 8.94 6.65 2.72

2. Status of Action Plan and Outstanding Actions from the Previous Review Mission

Agreed Action Resp. Due Date Status 1 Release all outstanding claims MOUD 5 Oct Released reimbursement of SOEs and release 10% advance on 2013 to the states until August 2013. tranche 2 committed amount to 10% advance under Tranche 2 all states yet to be released. 2 Release all outstanding claims States 5 Oct All states released funds to 2013 SIPMIUs up to Sept. 2013. GoN to immediately release pending Rs. 4 Crores to SIPMIU for claims in Kohima. 3 Appoint all outstanding staff in States 5 Nov Aizawl and Gangtok SIPMIUs SIPMIUs as identified in the 2013 need immediate additional AM staffing. 4 Appoint full-time dedicated MOUD 15 Nov Request for engagement of finance officer in IPPC as per 2013 individual consultants under ADB loan agreement TA sent. ADB currently processing the request. 5 Submit all outstanding WAs, MOUD 5 Oct MOUD is currently preparing all under both loans for all 2013 remaining WAs, for claims received claimed amount to date, to to date. MOUD will submit these CAAA claims to CAAA by 19 November 2013.

15

Agreed Action Resp. Due Date Status 6 Letter from DEA to be the sent DEA 15 Oct Not yet sent. to MOUD and states on breach 2013 of loan agreement on fund flow 7 State-level fund flow process Each 15 Nov All states have committed to shortened, guarantee of funds State 2013 releasing funds to project account release to SIPMIUs within Governm within 30 days of receipt of fund. agreed time provided. ent States must release funds within 2 weeks to adhere to 30 day covenant at all times. 8 Handover 8 water supply sites PHED 30 Oct 7 sites handed over and last site to in Kohima to the contractor 2013 be handed over by 30 November 2013. 9 Carry out actions on project SIPMIU 15 Nov Being implemented. High level implementation, staff MOUD 2013 contractor meeting to be recruitment, consultant and PSU conducted, for detailed planning of management, reforms works and disbursements every implementation and three months, facilitated by the safeguards compliance PSU and updates to be sent by improvements PSU to ADB and others

VI. ACKNOWLEDGEMENTS

26. The Mission wishes to thank DEA, MOUD and state government officials and SIPMIUs of the three project states visited - Sikkim, Meghalaya and Mizoram - for their hospitality, assistance, time and insights provided. Findings and recommendations contained in this draft Aide Memoire were discussed at the wrap-up meeting at DEA, chaired by the Director (ADB-I) of DEA, and are subject to confirmation from higher authorities of both Government and ADB.

Neeta Pokhrel Urban Development Specialist Asian Development Bank

16 Appendix 1

APPENDIX 1: LIST OF KEY PERSONS MET

Government of India 1. Ashok Singhvi Joint Secretary (UD), MOUD 2. Puneet Agarwal Director (ADB-I), DEA-MOF 3. Pramod Kumar Director UD, MOUD

Government of Sikkim 4. Smt. Rinchen Ongmu Chief Secretary 5. Mr. M.G. Kiran Principal Secretary, Finance 6. Mr. Tobjor Dorji Commissioner-cum-Secretary, UD 7. J.D. Bhutia Project Director, Gangtok SIPMIU

Government of Meghalaya 8. Mr. P. Naik Principal Secretary, UD 9. Mr. B. Dutta Project Director, Shillong SIPMIU

Government of Mizoram 10. Mrs. L.T. Tochhiong Chief Secretary 11. Mr. F. Vanlalruata, Secretary, Finance 12. Mr. R.L. Rinawma, IRS Principal Secretary, UD 13. Mr. Valbuanga Project Director, Aizawl SIPMIU

Government of Nagaland

14. Mr. Khupi Natso Project Director, Kohima SIPMIU

The Mission also contractors’ representatives, DSMCs and IDCs working under NERCCDIP in Gangtok, Aizawl and Shillong.

Appendix 2 17

APPENDIX 2: PROCUREMENT PLAN – TRANCHE 1

Project Name North Eastern Region Capital Cities Loan Number 2528 Development Investment Program Loan/Grant Amount US$ 200 million National Executing Agency: Ministry of Urban Development State Executing Agency: State-level Urban Development Departments Date of first Procurement Plan: May 2009 Date of this Procurement Plan 19 November 2013

Section 1: Process Thresholds, Review and 18 Month Procurement Plan

A. Project Procurement Thresholds Except as ADB may otherwise agree, the following process thresholds shall apply to procurement of goods and works.

Procurement of Goods and Works Method Threshold

International Competitive Bidding for Works Equal or above US$5,000,000 International Competitive Bidding for Goods Equal or above US$1,000,000 National Competitive Bidding for Works Below US$ 5,000,000 National Competitive Bidding for Goods Below US$ 1,000,000 Shopping for Works Below US$ 100,000 Shopping for Goods Below US$ 100,000 List here any other methods of procurement Not applicable approved for use (see Section III of the Procurement Guidelines)

B. ADB Prior or Post Review

Except as ADB may otherwise agree, the following prior or post review requirements apply to the various procurement and consultant recruitment methods used for the project.

Procurement of Goods and Works Procurement Method Prior or Post Comments

ICB Works Prior ICB Goods Prior NCB Works Prior NCB Goods Prior Shopping for Works Post Shopping for Goods Post List other methods of procurement Not applicable

Recruitment of Consulting Firms Procurement Method Prior or Post Comments

Quality and Cost Based Selection (QCBS) Prior Value ≥ $100,000 Least Cost Selection (LCS) Prior Value < $100,000; NGOs may be recruited to conduct surveys, community awareness and participation using this method. Single Source Selection (SSS) Prior Not under PFR1 Recruitment of Individual Consultants Individual Consultants Prior

18 Appendix 2

C. Consulting Services Contracts Estimated to Cost More Than US$ 100,000

The following table lists the consulting service contracts for which procurement activity is either ongoing or expected to begin within the next 18 months.

Contract Recruitment Advertisement International General Value Method Date or National Agartala Package A1- $2.23 QCBS (80:20) Recruitment National Recruited by Tripura’s Agartala million completed UDD/SIPMIU DSMC Package A2- $1.17 QCBS (80:20) Recruitment National Recruited by Tripura’s Agartala IDCs million completed UDD/SIPMIU Aizawl Package B1- $2.37 QCBS (80:20) Recruitment National Recruited by Mizoram’s Aizawl DSMC million completed UD&PA/SIPMIU Gangtok Package C1- $2.21 QCBS (80:20) Recruitment National Gangktok million completed Recruited by Sikkim’s DSMC UDHD/SIPMIU Kohima Package D1- $2.21 QCBS (80:20) Recruitment National Recruited by Nagaland’s Kohima DSMC million completed UDD/SIPMIU Shillong Package E1- $2.20 QCBS (80:20) Recruitment National Recruited by Shillong DSMC million completed Meghalaya’s UAD/SIPMIU Package E2- $1.17 QCBS (80:20) Recruitment National Recruited by Shillong IDC million completed Meghalaya’s UAD/ SIPMIU MOUD Package F- $0.47 QCBS (80:20) Recruitment National Recruited by MOUD/ IPCC PMCC million for PFR1 completed IPCC

Various survey packages NGOs, surveys, $10,000– LCS N/A National Recruited by SIPMIUs independent $100,000 assessment, (estimated) awareness campaigns, etc. Individual $0.45 Individual Feb 2013 National Chartered Accountant (9 Consultants – 3 million person-months); GIS Experts expert (12 person- (Shillong) months); Utility Expert (18 person-months) CQS = Consultants Qualification Selection, DSMC = design and construction supervision and management consultant, ICB = international competitive bidding, IPCC = investment program coordination cell, LCS = least-cost selection, MOUD = Ministry of Urban Development, NCB = national competitive bidding, NGO = nongovernment organization, PMCC = program management and coordination consultant, QCBS = quality- and cost-based selection, S = shopping, SIPMIU = state investment program management and implementation unit, UAD = Urban Affairs Department, UDD = Urban Development Department, UDHD = Urban Development and Housing Department, UD&PA = Urban Development and Poverty Alleviation Department.

D. Goods and Works Contracts Proposed under PFR1

The following table lists goods and works contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

Appendix 2 19

LIST OF CONTRACT PACKAGES

S. Contract Packages Number Total Procure- Date of Prior Status/ Remarks No of Cost ment Advertise- review Package in $ Method ment Required Million

1 AGARTALA Water Supply a. Civil, Mechanical, Electrical Works 1.1 TW&IRP/WS/AGT/T1/NCB 1 0.53 NCB Dec-11 Y All 3 lots awarded. 1 lot Replacement of 22 tube wells including (3 lots) completed. 2 lots in construction of pump house, with supply progress. 5 mos. & installation of electrical & mechanical Remaining to complete. equipment 1.2 Construction of Pump Houses (PHs) for 1 0.31 NCB Aug-12 Y Awarded. 4 PHs 16 Tube Wells with Supply & Installation completed. 16 PHs in of Electrical Arrgmts. at Agartala City progress. 5 mos. to complete. b. Materials and Equipments 1 0.31 NCB Jan-11 Y Awarded. 1.3 AGT/WS01/M/NCB/11/2 Procurement of MS ERW pipe for making Supply of pipes strainer for the construction of tube well completed in Agartala 2 GANGTOK Water Supply a. Civil, Mechanical, Electrical Works 2.1 WA1/GTK/T1/NCB 1 2.97 NCB Mar-11 Y Awarded. Supplying and laying distribution system Work completed. in Burtuk and Chandmari, construction of Commissioning in pump house, installing pump sets and progress. allied works 3 KOHIMA Water Supply a. Civil, Mechanical, Electrical Works 3.1 Refurbishment of Kohima Water Supply 1 1.56 NCB Mar-11 Y Awarded. 9 Tanks Scheme almost comple. 5 tanks under progress. Work of 4 Tanks yet to start. Civil work of WTP completed. 11 mos. to complete. Solid Waste 3.2 Civil Works & Procurement of Equipment 1 7.98 NCB Aug-10 Y Awarded. 80% of for Development of Sanitary Landfill, sanitary landfill Compost Plant & Internal completed. Office bldg. completed. 8 mos. to complete 4 SHILLONG SWM 4.1 Equipment, civil works, T&C, etc. for 1 0.56 NCB Mar-11 Y Awarded. Excavation landfill site at Marten Mawlong, Shillong work ongoing. 8 mos. to complete 5 AIZAWL Water Supply a. Civil, Mechanical, Electrical Works 5.1 Construction of 7 (replacement) ground- 1 0.09 NCB 2010 Y Awarded. level RCC zonal tanks Work completed b. Materials and Equipments

20 Appendix 2

S. Contract Packages Number Total Procure- Date of Prior Status/ Remarks No of Cost ment Advertise- review Package in $ Method ment Required Million 5.2 Supply and installation of chlorinators 1 0.95 NCB 2010 Y Awarded. Completed 5.3 Supply, installation, and testing of 15,000 1 0.66 NCB 2010 Y Awarded. Completed household meters

Appendix 2 21

PROCUREMENT PLAN FOR PROJECT 2

Basic Data Project Name: North Eastern Region Capital Cities Development Investment Program – Project 2 Country: India Executing Agency: The Ministry of Urban Development The Urban Development Department of Tripura, The Urban Development Department Nagaland, The Urban Development and Poverty Alleviation Department for Mizoram, The Urban Affairs Department for Meghalaya, and The Urban Development and Housing Department for Sikkim Loan Amount: US$72 million Loan (Grant) Number: 2834 Date of First Procurement Plan: 1 August 2011 Date of this Procurement Plan: 19 November 2013

B. Process Thresholds, Review, Procurement Plan

Project Procurement Thresholds

1. Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works.

Procurement of Goods and Works

Method Threshold

International Competitive Bidding (ICB) for Works $5,000,000 and above International Competitive Bidding for Goods $1,000,000 and above National Competitive Bidding (NCB) for Works Below $5,000,000 National Competitive Bidding for Goods Below $1,000,000 Limited International Bidding (LIB) Below $1,000,000 Shopping for Works Below $100,000 Shopping for Goods Below $100,000

2. ADB Prior or Post Review

2. Except as ADB may otherwise agree, the following prior or post review requirements apply to the various procurement and consultant recruitment methods used for the project.

22 Appendix 2

Procurement Method Prior or Comments Post

Procurement of Goods and Works ICB Works Prior ICB Goods Prior NCB Works Prior NCB Goods Prior Shopping for Works Post Shopping for Goods Post

Bidding documents approved in Tranche-1 will be used without ADB’s review when no significant change is made.

Recruitment of Consulting Firms Quality- and Cost-Based Selection (QCBS) Prior Quality-Based Selection (QBS) Prior Other selection methods: Consultants Qualifications (CQS), Least- Prior Cost Selection (LCS), Fixed Budget (FBS), and Single Source (SSS)

Recruitment of Individual Consultants Individual Consultants Prior ICB = international competitive bidding, NCB = national competitive bidding

3. Goods and Works Contracts

3. The following table lists goods and works contracts for which procurement activity is expected to commence within the next 18 months and all procurement is expected to be commenced during this period.

Appendix 2 23

Contract Procure Advertise- Package No. General Description Goods/ Value ment ment Works ($ million) Method Date Status/ Remarks

Agartala

AGT/WS09/ICB/11/7 Design, Supply and Construction of 14 Nos. W 4.48 ICB Feb-12 Lot-1 and Lot-2 works of Over Head Service Reservoir (OHSR), awarded on December-12. other allied works in diff. locations of Central Foundation work is ongoing. Zone and South Zone of Agartala City 10 mos. to complete.

AGT/WS/02,07,08,IC Procurement of Ground Water Treatment W 5.33 ICB Feb-12 Work awarded in January B/11/8 Plants, Design, Construction, Supply, 2013, work is under progress Installation & Commissioning including boundary wall of two sites Mechanical & Electrical equipment with completed. 20 mos. to Operation for one year in Agartala complete.

AGT/WS10- Awarded. Supply 1/ICB/11/4 Procurement of Ductile Iron Pipes for Laying G 3.46 ICB Dec-11 completed of Raising Mains in Agartala City, Tripura

Tender submission date is 28 November 2013, and contract is likely to be WS-06 Laying of 59 km of primary pipelines W 0.32 NCB Jun-12 awarded by Feb-2014

AGT/WS10- Supply & Laying of Water Supply Distribution W 8.40 ICB Feb-12 Work awarded in March- 3/ICB/11/9 Pipelines and Allied Works in Agartala City 2013. Procurement of 5 (South)-Lots 1 & 2 Km of DI pipe line and 10Km HDPE completed. Laying started. 37 mos. to complete

AGT/WS03/NCB/11/6 Providing, Installation, Testing and G 0.29 NCB Dec-11 Awarded in August 2012. Commissioning of Bulk Flow Water Meter in All material reached Agartala Water Supply Project Agartala location identified and installation of meters will start. 3 mos. to complete.

Aizawl

GLR/WS/AIZ/T2/NCB- Construction of 3 Nos. of Ground Level Awarded. Work completed 3 Water W 0.54 NCB Sep-11 testing work is going on. 3 Reservoirs mos. to complete.

EM&S/WS/AIZ/T2/NC Supply, Installation Testing and Installation completed and B-1 Commissioning of 2 Sets of Booster Pumps G 0.15 NCB Sep-11 ready for testing. 1 mo. to at Aizawl complete.

24 Appendix 2

Contract Procure Advertise- Package No. General Description Goods/ Value ment ment Works ($ million) Method Date Status/ Remarks P&SN/WS/AIZ/T2/ICB Rehabilitation & Extension of Water W 6.89 ICB Jun-12 Work has been awarded. -2 Distribution Networks and Feeder Mains Site mobilization work is in progress. 40 mos. to complete.

WM1/WS/AIZ/T2/ICB Purchase, installation of bulk and domestic G 1.48 ICB Dec-11 Awarded. Procurement of water meters and UFW reduction program Meters completed installation work is ongoing. 5 mos. to complete.

PS-1/ WS/ AIZ/T2/ICB Purchase of dedicated power supply system G 3.93 Both packages Merge in to one. Work awarded. Site Installation of dedicated power supply Jul-12 mobilization is in progress. PS-2/ WS/ AIZ/T2/FA system W 0.96 ICB 5 mos. to complete.

P&SN/SEW/AIZ/T2/N Procurement of Primary and Secondary W 4.68 NCB Feb-12 Work awarded. Site CB-5 Sewerage Networks mobilization is in progress. 42 mos. to complete. SCM/SEW/AIZ/T2/NC Supply, Installation and Commissioning of G 0.22 NCB Sep-11 Work awarded. Supply B-2 Cess Pool Cleaner completed rectification work is under progress. 3 mos. to complete.

CT/SEW/AIZ/T2/NCB- Construction of 10 Nos. of Community Toilet W 0.22 NCB Mar-12 Work awarded. Site 4 at Aizawl, Mizoram mobilization is in progress. 10 mos. to complete.

STP/SEW/AIZ/T2/NC Work awarded. Site B-7 Construction of Sewerage Treatment Plant W 2.44 NCB Apr-12 mobilization is in progress. 28 mos. to complete.

AR/ SEW/ Work awarded. Survey AIZ/T2/NCB-6 Construction of Approach Road to Sewerage W 0.29 NCB Apr-12 work completed. Work in Treatment Plant progress. 4 mos. to complete. Gangtok

GTK-WA-1 W 3.49 NCB Apr-12 Awarded as Lot 2 and site Improvement of existing water supply system mobilization is under by replacement & augmentation of the progress. 22 mos. to distribution network in Housing & Press Tank complete Zones; and 2 storage reservoirs

Appendix 2 25

Contract Procure Advertise- Package No. General Description Goods/ Value ment ment Works ($ million) Method Date Status/ Remarks GTK-WA-2 Improvement of existing water supply system W 3.96 NCB Apr-12 Awarded as Lot 1 and site by replacement & augmentation of mobilization is under distribution progress. 24 mos. to network for the remaining areas; including 5 complete storage reservoirs To be tendered by 30 GTK-WA-3 Providing 12000 consumer meters. G 0.95 NCB Dec-12 December 2013

GTK-SWM-1 Providing primary Collection Vehicle, G 0.33 NCB Apr-12 Bidding ongoing Household Bins, Push Carts and Litter Bins GTK-SWM-2 W 1.64 NCB Apr-12 Work awarded in Construction of Solid Waste Landfill, September 2013. Leachate Treatment Plant, and Associated Mobilization in progress. 12 Infrastructure Works for Gangtok, Sikkim mos. to complete

Awarded. Supply GTK-SWM-3A Procurement of chain wheeled hydraulic G 0.04 Shopping Jun-12 completed Excavator

GTK-SWM-3B Procurement of Secondary Collection G 0.32 NCB Jun-12 Vehicles, 1100 Liters Capacity Bins, Landfill Under rebidding Vehicles & Equipment, Personal Protection Equipment for Solid Waste Management GTK-SWM-3A Procurement of Personal Protective G 0.01 Shopping Dec-13 RFQ by December 2013 Equipment GTK-SWM-3A Procurement of Roller G 0.08 Shopping Dec-13 RFQ by December 2013

Kohima

KHM-WA2 Supplying and Laying of Distribution Network W 10.84 ICB May-12 Work awarded. Site of 318 km Length in Kohima Municipal Area mobilization work is under progress. 14 mos. to complete

KHM-WA-5 21 Bulk Water Meters and 20,000 Domestic G 0.95 NCB Dec-12 To be tendered by 30 Meters December 2013

Shillong

NERCCDIP/TR- Construction of Garage cum Workshop Shed W 0.28 NCB Dec-11 80% completed. 6 mos. to 02/SHG/SWM/01 and Staff Rest Room at Old Landfill site at complete Marten, Mawiong, Shillong

26 Appendix 2

Contract Procure Advertise- Package No. General Description Goods/ Value ment ment Works ($ million) Method Date Status/ Remarks NERCCDIP/TR- Procurement of Primary and Secondary G 0.42 NCB Dec-11 Work awarded. In 02/SHG/SWM/02 Collection Vehicles and Workshop progress. 12 mos. to Machineries, Shillong complete

FBER to be submitted by NERCCDIP/TR- Procurement of Different types of Bins and G 0.25 NCB Apr-12 26 November 2013 02/SHG/SWM/03-R1 Personnel Protective Equipment-Shillong Construction of additional area of 8,500 sqm W 1.8 NCB Dec-11 Bidding documents being at old landfill site at Marten, and drafted. To be tendered by NERCCDIP/TR- operationalization of other SWM 15 December 2013 02/SHG/SWM/***** improvement facilities and equipment

G = goods, O&M = operation & maintenance, ICB = Int’l competitive bidding, NCB = national competitive bidding, W = works, WTP = water treatment plant

4. Consulting Services Contracts

4. The following table lists consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

Contract

General Description Value Recruitment Advertisement International or 1 No. in million Method Date National Assignment Comments

Gangtok, EOI requested Contract signed in Feb 2012.

1 1.20 QCBS National

Institutional Development 1 Jun 2010 Mobilization in March 2012.

Project Management and Subject to MOUD’s performance

Extension or

2 Monitoring Consultant for Jan 2012 assessment of the consultant recruited SSS 0.60 National MOUD under Tranche-1 and ADB’s approval.

EOI target by For recruitment and mobilization by 3 Gangtok, 0.2 LCS/CQS December 2013 National February 2013

Community Awareness and

Participation NGO

Shillong 4 3 Individual Consultant National

DSC = design and supervision consultant, EOI = expression of interest, IPMC = investment program management consultant, QCBS = quality- and cost-based selection, LCS = Least Cost Selection. 1 QCBS was proposed with the quality: cost ratio of 80:20.

Appendix 3 27

APPENDIX 3: IMPLEMENTATION STATUS AND OUTPUT SUMMARY

Table 1: Implementation/ Physical and Financial Progress Status of Awarded Contracts –Tranche-1

Financial progress

Amt. Schedule/ Physical Package No. Contract Brief Scope (in Rs Extended Status Progress Cumulative In % of Commence- million) Completion (%) (Rs) Agreed ment Date Contract Amount T1-AGARTALA

AGT/WS- Procurement of ERW Pipes for 14.43 01-Nov-11 01-May-12 Work completed 100 1,44,30,680 100 01/M/NCB/11/2 Drilling of Tube wells WS-01R/1 Replacement of Tube-wells 11.39 16-Nov-11 16-Nov-12 completed 100 84,000,00 100 (06 nos), Lot-1 WS-01(R3) Replacement of 16 Tube-wells 8.3 29-Dec-12 03 Feb-14 6Nos completed 75 39,00,000 47 (08 nos), Lot-2 Replacement of 16 Tube-wells 7.84 2-Jan-13 06-March- 4Nos completed 50 14,00000 18 (08 nos), Lot-3 2014 WS-01(R3)CIV Construction of pump house 16.4 14-06-2012 31-03-2014 Up to roof slab of 4 25 14,00000 8 for 16 Tube wells nos. completed

T1-AIZAWLl

CHL/WS/AIZ/T1/ Supply, Installation and .534 25th Nov 2010 Completed completed 100 - 100 NCB-1 Commissioning of 2 nos. of Chlorinators

OHT/WS/AIZ/T1/ Construction of 7 Ground 42.6 25th Nov 2010 Completed completed 100 - 100 NCB-3 Level RCC Zonal Tank and Buildings WM1/WS/AIZ/T1/ Supply, Installation, Testing 27,4 - Completed completed 100 - 100 NCB-2 and Commissioning of 15000 nos. of Water Meters

T1-SHILLONG

28 Appendix 3

Financial progress

Amt. Schedule/ Physical Package No. Contract Brief Scope (in Rs Extended Status Progress Cumulative In % of Commence- million) Completion (%) (Rs) Agreed ment Date Contract Amount Tranche 1 - Development of Short term 28.23 March 2012 September Excavation work is 38 94,96,337 33.63 LF&R/SWM/SHI/ Sanitary Landfill Site- Civil 2013 under progress T1/NCB-1 Works & Procurement of (sep-2014) Bulldozer T1-KOHIMA KHM-WA1 76.39 14-Oct-2011 14-Apr-2013 9Tanks almost 58.59 3,64,000,00 49 Tranche-1 Construction of 18 RCC (sep-2014) completed.5 tanks ground level water tanks & are under Refurbishment of 7.5 mld progress. Work of capacity Water Treatment 4 Tanks yet to Plant start. Civil work of WTP completed. KHM-SWM1 391.10 14-Oct-2011 14-Oct-2013 Sanitary land fill 36.62 14,53.000,0 36.62 Tranche-1 Civil works and procurement (6-June- 80% 0 of equipment for development 2014) completed.Infrastu of sanitary land fill, compost cture works plant & internal access completed. Office work completed.

T1-GANGTOK Supplying and Laying 149.47 27th Sept 2011 December Physically work 98 12,16,00,000 90 distribution system in Burtuk & 2013 completed. only Chandmari, construction of commissioning is /WA1/GTK/T1/N pump house, installing pump awaited CB sets and allied works in Gangtok, Sikkim.-GTK- WA1(NCB)

Appendix 3 29

Table 2: Implementation/ Physical and Financial Progress Status of Awarded Contracts –Tranche-2

Financial progress Schedule Amt. Physical In % of Package No. Contract Completion Cumulative Brief Scope (in Rs Status Progress % Commence- /Extended (Rs) million) (%) Agreed ment Date Completion Contract

Amount T2-AGARTALA

AGT/(WS- Procurement and Installation 8.8 06-Aug-12 05-Feb-14 All material 45 17,00000 19 03)/NCB/11/6 of Bulk Flow Meter reached Agartala location identified and installation of meters will start shortly (WS-02,07 Construction of Ground Water 398.86 07-Jan-13 07-July- Process design of 6 3,66,00,000 9 &08)/ICB/11/8 Treatment Units 14(Expected 2 Nos completed date and 2Nos completion- structural design, 07-07-2016) boundary wall of two sites completed. Construction of aerators, clarifuculator and receiving tank started AGT/(WS- Construction of Service 155.2 04-Jan-13 05-Sep-2014 5 nos design 5 1,53,00,000 10 09)/ICB/11/7 Reservoirs, 14 Nos ( Lot - 1) (05-Sep- completed and 2014) approved. Foundation work started at one site 134.5 31-Dect-12 30-June- 2 nos design 6 1,35,00,000 10 2014 completed and Construction of Service (05-sep- approved. Pile Reservoirs, 14 Nos ( Lot - 2) 2016) Foundation work started at one site

30 Appendix 3

Financial progress Schedule Amt. Physical In % of Package No. Contract Completion Cumulative Brief Scope (in Rs Status Progress % Commence- /Extended (Rs) million) (%) Agreed ment Date Completion Contract

Amount Procurement of DI Pipes for 110.3 25-Jun-12 25-Jun-13 Supply completed 100 7,70,58,946 70 AGT/WS- Laying of Rising Mains in 10/1/ICB/11/4 Agartala City

Laying of Distribution Network 378.08 Lot – 1 March-2014 Procurement of 5 10. 38,00000 1 for South Zone of Agartala 4-Mar-13& (Dec-2016) Km of DI pipe line AGT/WS10- Lot-2 6Mar-13 and 10Km HDPE 3/ICB/11/9 completed. Lying started T2-AIZAWL

Supply, Installation & 5.1 16th May 2012 August 2013 Installations 75.5 5064416 100 EM&S/WS/AIZ/T Commissioning of Booster complete and 2/NCB-1 Pumps ready for testing.

Construction of Water 27.2 17th May 2012 December Except for 95.02 21323038 84.78 Reservoirs 2013 external plastering and other finishing works, the main GLR/WS/AIZ/T2/ reservoirs work NCB-3 completed and testing of Hydraulic is in progress and observations. Purchase & Installation of Bulk 63.88 21st September March 2014 20000 domestic 100 48383568 77.77 WM1/WS/AIZ/T2/ & Domestic Water Meters 2012 meters and 85 ICB-1 nos. bulk meters

Appendix 3 31

Financial progress Schedule Amt. Physical In % of Package No. Contract Completion Cumulative Brief Scope (in Rs Status Progress % Commence- /Extended (Rs) million) (%) Agreed ment Date Completion Contract

Amount supplied. Checking of domestic meters by Legal Metrology is being carried out. SCM/SEW/AIZ/T Supply, Installation & 8.8 18th May 2012 September Supplied. 100 8756285 100 2/NCB-2 Commissioning of Cess Pool 2013 Rectification work Cleaner under progress

AR&LD/SEW/AIZ Site/Land Development & 13.8 23th October February Jungle clearing, 15 1787596 15.74 /T2/NCB-6 Approach Road to STP 2013 2014 site preparation, ground detailed survey for approach road completed.

CT/SEW/AIZ/T2/ Community Toilet Blocks 17.2 29th June 2013 August 2014 Except for 11 179800 11 NCB-4 obtaining clearance for permission to construct from AMC, Contractor almost ready to start work.

32 Appendix 3

Financial progress Schedule Amt. Physical In % of Package No. Contract Completion Cumulative Brief Scope (in Rs Status Progress % Commence- /Extended (Rs) million) (%) Agreed ment Date Completion Contract

Amount STP/SEW/AIZ/T2 10 MLD Construction of 219.1 1st August March-2016 Site mobilization 0 15454628 /NCB-7 Sewerage Treatment Plant (Capital 2013 10 Cost) + 30.2 (O&M Cost) P&SN/WS/AIZ/T Feeder Mains Water 382.89 29th August February Detailed working 10 19144850 10 2/ICB-2 Distribution 2013 2017 survey and review of design is in progress. P&SN/SEW/AIZ/ Construction of Primary & 309.03 4th Oct,2013 4th April2016 Site mobilization 10 15454628 10 T2/NCB-5 Secondary Sewerage Networks PS/WS/AIZ/T2/IC Purchase installation of power 1620.63 23.09.2013 23.09.2015 - 10 20160030 10 B-3 supply T2-SHILLONG Tranche 2 - Construction of Garage cum 13.46 December June 2014 Site clearance is under 0% 0 0 NERCCDIP/TR- workshop and staff rest room 2012 progress 02/SHG/SWM/01 at Marten, Mawiong.

Tranche 2 - Procurement of primary and 13.67 July 2012 June 2013 Supply work is under 80% 103360000.00 80 NERCCDIP/TR- secondary collection vehicles, (March- progress 02/SHG/SWM- workshop machineries 2014) /02 T2-KOHIMA

Appendix 3 33

Financial progress Schedule Amt. Physical In % of Package No. Contract Completion Cumulative Brief Scope (in Rs Status Progress % Commence- /Extended (Rs) million) (%) Agreed ment Date Completion Contract

Amount KHM- WA-2 Supplying and laying of 353.8 17.02.2013 18.02.2015 Site clearance 0 2,96,000,00.0 9.16 distribution network of 318 km under progress 0 length in KMC area.

T2-GANGTOK Procurement of chain wheeled 0.04 Oct-12 Completed completed 100 .04 100 hydraulic excavator GTK-SWM-3A

GTK-SWM-2 Construction of Solid Waste 120.34 SEP-13 Yet to start - - - Landfill, Leach ate Treatment Plant, and Associated Infrastructure Works for Gangtok, Sikkim De-bunching of Secondary 341.74 31st August August 2015 Work is yet to start 0 0 0 Distribution System and 2013 Extending Water Supply to GTK-WA-1 Peripheral Areas with Allied Works in Gangtok, Sikkim (Lot 1) GTK-WA-2 De-bunching of Secondary 31st August August 2015 Work is yet to be 0 0 0 Distribution System and 2013 started Extending Water Supply to Peripheral Areas with Allied Works in Gangtok, Sikkim (Lot 2)

34 Appendix 3

Table 3: Major Output Completion (for Tranche 1) Agartala Aizawl Gangtok Kohima Shillong Target Achieved Target Achieved Target Achieved Target Achieved Target Achieved Water Storage - - 7 7 1 1 18 9 - - capacity (nos) Network, km - - - - 46.2 43.1 - - - - Treatment ------7.5 0 - - capacity (MLD) Solid Waste Management Sites (no) ------1 0 1 0

Table 4: Major Output Completion (for Tranche 2) Agartala Aizawl Gangtok Kohima Shillong Target Achieved Target Achieved Target Achieved Target Achieved Target Achieved Water Storage 14 0 3 3 5 0 - - - - reservoir (no) Network, km 291 0 76 0 118 0 318 0 - - Treatment 40 0 ------capacity (MLD) Connections (no) -() - 12,500 0 12,000 0 14,000 () 0 - - Sewerage Network, km - - 46 0 ------Treatment - - 10 0 ------capacity (MLD) Solid Waste Management Treatment - - - - 18 0 - - expansi 0 capacity(MLD) on

Appendix 4 35

Appendix 4: Action Plan on Procurement of Remaining Contracts under Tranche 2

Contract Procure- Package No. General Description Goods/ Value ment Expected Works ($ million) Method Award Date Status/ Remarks

Agartala Tender submission- 28 Nov 2013. TBER to be submitted 0.95 (0.32 by 15 Dec 2013 WS-06 Laying of 59 km of primary pipelines W in PP) NCB Feb-14

Gangtok Feb-14 Draft tender documents to be submitted to ADB by 30 GTK-WA-3 Providing 12000+ consumer meters. G 0.95 NCB Nov 2013 Providing primary Collection Vehicle, 0.51 (0.33 Dec-13 Bidding ongoing GTK-SWM-1 Household Bins, Push Carts and Litter Bins G in PP) NCB

GTK-SWM-3B Procurement of Secondary Collection G 0.32 NCB Jan-14 Vehicles, 1100 Liters Capacity Bins, Landfill Under rebidding Vehicles & Equipment, Personal Protection Equipment for Solid Waste Management GTK-SWM-3A Procurement of Personal Protective G 0.01 Shopping Jan-14 RFQ to be submitted to ADB Equipment by 1 December 2013 GTK-SWM-3A Procurement of Roller G 0.08 Shopping Jan-14 RFQ to be submitted to ADB by 1 December 2013 Kohima KHM-WA-5 21 Bulk Water Meters and 20,000 G 0.95 NCB Feb-14 Draft tender documents to Domestic Meters be submitted to ADB by 15 December 2013 Shillong NERCCDIP/TR- FBER to be submitted to 02/SHG/SWM/03-R1 Procurement of Different types of Bins and G 0.25 NCB Dec-13 ADB by 25 November 2013 Personnel Protective Equipment-Shillong

NERCCDIP/TR- Construction of Additional Area of 8,500 sqm W 1.8 NCB Apr-13 Draft bid documents to be 02/SHG/SWM/***** at Old Landfill site at Marten, Mawiong, submitted to ADB by 30 Shillong December 2013

36 Appendix 5

Appendix 5: Status on Reforms Implementation (In accordance with FFA Annex-I: Checklist for Urban, Institutional, Financial, Regulatory and Operational Reforms)

Reform Program Compliance Status Agartala Aizawl Gangtok Kohima Shillong A Institutional Implement 74th Constitutional Amendment ( CA) - Objectives: Implementing decentralization measures through establishing and strengthening elected ULBs. within six months of loan effectiveness and submit Complied wl Partially complied To be Partially a plan approved by the State Empowered complied complied Committee (SEC) containing (i) a situational assessment of the capacities of the various 1 functional arms of the Urban Local Body (ULB) (ii) a time bound ULB capacity development and resource program and (iii) a time-bound action plan for developing further functions in phased manner to ULBs in line with 74th CAA and JNNURM. Within six months of 1st tranche approval, develop Plan for transfer of Partially The action plan to To be To be and submit to MOUD and ADB an action plan Water function to complied gradually transfer to Complied complied approved by the SEC to gradually transfer to ULB AMC prepared ULB responsibility 2 responsibility and resources for urban functions and and submitted to and resources for to build necessary capacities, including developing Govt. urban functions has administrative, organizational, operational and not been approved financial system & staffing. 3 Within one year of 1st tranche approval, develop Not complied Each of the on going Not To be time-bound plan approved by the SEC to carefully Ward Committee achievable complied. integrate the traditional system, e.g. panchayats. has representative from local councils

Appendix 5 37

Within 3 years of 1st tranche approval and prior to Partially complied Partially complied ongoing Assets Partial Complied. tranche 3 approval (expected end 2011), ALL States associated with the complied ULB has not must have (i) substantially developed functions to functions has not been their respective capital cities (for no less than those been transferred to constituted AMC 4 sectors supported under the Investment Program but also expected in other areas), (ii) adequately staffed Within 3 years of 1st tranche approval and prior to tranche 3 approval (expected end of 2011) all states must have (i) Substantial engineering, administrative and financial sections of the ULBs and allocated sufficient budget to initiate activities in newly established ULBs and (iii) transferred assets associated with these functions.

38 Appendix 5

B Service Delivery

Reforms for Efficient and Financially Sustainable Service Providers

Agartala Aizawl Gangtok Kohima Shillong

Within One year of 1st tranche approval, On going Partially complied,. Proposal under Being complied 5 restructure PHED/KMC ( as per agreed discussion. PHED model) and create one single city ring has not been fenced area headed by a senior officer with restructured Partial control over city water and sewerage complied operations as well as separate accounting and balance sheet. Issue order to use double entry Asset 6 accounting, assets inventory and assets Management management in the circle within three manual under years of 1st tranche approval and preparation, asset Complied. Under implement Handholding by implement within 1 year of WS subjects Implemented identification is To be complied approval (expected 2nd tranche). going on. Double action individual entry accounting consultant system not adopted Develop performance Improvement plans Performance within one year of approval of WSS sub- improvement plan 7 projects and start implementing them. of this authority is To be implemented with Plan prepared under discussion To be To be prepared the help of and submitted and would be Complied given final shape individual after formation of consultant AWSSB

Appendix 5 39

Within two years of 2nd tranche approval, Not due yet, but 8 commence implementation of selected ongoing. Relevant options of financially self sustainable, bills are under Being efficient and commercially operated water consideration. Not due yet. To be complied Not due yet and sewerage agency and start consultations implemented with stakeholders including ADB on option available.

Within 1 year of 2nd tranche approval, and PSP areas based on the results of the PSP study, covered under 9 Sanitry land fill conduct consultations and develop a plan interim report and and compost Not and proposals fort components with accepted. PSP in on going To be complied plant given on Complied potential for PSP. SWM, markets, PSP slaughter house are under study. Within four years of tranche approval of 10 WS sub-projects, approve appropriate To be To be complied To be complied. To be complied To be complied arrangements /laws for regulating the complied water service providers

B-I:Improved Operational Efficiency

Agartala Aizawl Gangtok Kohima Shillong

40 Appendix 5

11 Prior to loan effectiveness, issue Partially Partially complied On going Partially complied Partially Government Order to implement a NRW complied complied reduction program, as well as a bulk and consumer metering program, and commence implementation within 6 months of 1st tranche approval.

B-II: Regulatory Compliance

Agartala Aizawl Gangtok Kohima Shillong 12 In state whole capital cities receive funds Not applicable Partially complied Not yet due Not yet due. from the MFF for subprojects in the complied sewerage and sanitation sector, the state will approve, within six months of tranche approval (generally 3rd) regulation to (a) enforce those households with access to a sewerage pipeline to connect to the sewerage system within one year of network completion (b) enforce all households not to discharge their sanitary waste without treatment and maintain their septic tanks in specified levels of efficiency (c) require new buildings to obtain a sanitary waste discharge permit and (d) enforce generators of large quantities of wastes such as industries not to discharge their wastes without treatment and to maintain their discharges at specified levels of efficiency.

Appendix 5 41

13 In States whose cities receive funds from To be complied Partially complied Shall be complied Partial complied Partially the Facility for subprojects in the solid complied waste management sector, the States will approve, at the latest by the commencement of civil works, regulations regarding (a) the discharge of solid wastes (b) the separation of wastes and disposal of hazardous wastes (c) the installation of improved procedures for vehicle routing, asset control and staff management and (d) establishment of operations and maintenance procedures for vehicles and other equipment (e) the monitoring of waste collection and treatment, revenue and costs staff costs and other inputs.

42 Appendix 5

C Financial

C-I: Municipal Financial Management

Agartala Aizawl Gangtok Kohima Shillong 14 Within 2 years of 1st tranche approval for Implemented Partially complied Partially complied Partial complied Partially Agartala and Shillong and within 2 years of complied. 2nd tranche approval for Aizwal, Gangtok and Kohima, capital cities will have completed migration to an accrual based double entry accounting system.

C-2: Property Tax Improvements

Agartala Aizawl Gangtok Kohima Shillong Within 18 months of 2nd tranche approval, Property tax . Rules submitted On-going Amendment in Act Property mapping Aizwal, Gangtok and Kohima will have rules and rates to government for pending with state completed. discussion. the unit introduced property tax, following the unit submitted. State area method of government Training of staff area based and self assessment based Govt. to take a property tax has not on GIS property tax system. final decision. been introduced software/SAS completed. Individual 15 consultant for handholding to be engaged. Conversion to self assessment system to be done.

Appendix 5 43

Within 3 years of 1st tranche approval for Collecting Not yet due Under Not yet due Present Agartala and Shillong and 3 years of 2nd efficiency is 70% implementation collection tranche approval for Aizwal, Gangtok and efficiency over 16 Kohima Collection efficiency should be no 70%. less than 60 % and 85% one year later.

C-III: Introduction and Rationalization of User Charges

Agartala Aizawl Gangtok Kohima Shillong

Recommendati Draft report To be Complied To be Will be Within 1 year of 1st tranche approval, ons submitted submitted Complied complied develop (with guidance from with. 17 Supplementary Appendix M Plan) and submit a Financial Action Plan to ensure improved utility financial performance .

Not yet due Not yet due Not yet due Not yet due Not yet due In line with JNNURM's MOA, within 1 year of 3rd tranche approval, implement solid waste collection charges to generate 18 sufficient revenues to meet 100% of the cost that is incurred in undertaking O&M of existing and project-created SWM assets and services.

Not yet due Not yet due Not yet due Not yet due Not yet due In line with JNNURM's MOA, within 1 year of 3rd tranche approval, implement volumetric water charges with regular adjustments to tariffs to generate sufficient 19 revenues to meet 100% of the cost that is incurred in undertaking O&M of existing and project-created water and sewerage assets.

44 Appendix 6

APPENDIX 6 - TEMPLATES FOR GENDER ACTION PLAN SEMI-ANNUAL PROGRESS UPDATES

GENDER ACTION PLAN – SEMI ANNUAL PROGRESS UPDATE NORTH EASTERN REGION CAPITAL CITIES DEVELOPMENT INVESTMENT PROGRAM – (LOAN 2528) SIPMIU – Gangtok (SIKKIM) Reporting period – xx- xx Activities Target Indicators Progress to date Issues/challenges Outcome - Sustainable and increased access to better urban services in five program cities6 Conduct of 1 gender sensitization seminar for 10 municipal council officials gender-sensitized each that highlights gender issues in water Representatives of 5 women's NGOs, including self- supply, sanitation, solid waste and drainage, help group gender-sensitized and the need for women‘s involvement in the 20 community members (50% implementation, O&M of these services women), including from scheduled castes (SCs) and scheduled tribes (STs), where applicable, gender- sensitized State Investment Program Management and Implementation Unit (SIPMIU) staff of state executing agency gender-sensitized Output (i) - Improved water supply and infrastructure Provision of connections and meters to poor i. 1,000 FHHs provided with connections and water female-headed households (FHHs) in the city. meters ii. Employment of women in the construction of pipelines, plants, etc., with implementation of same pay for work of equal value‘ Output (ii) Improved sanitation infrastructure Prioritize connections to sewerage system of poor female-headed households Output (iii ) Improved solid waste management systems i. Prioritize FHHs in the provision of household i. 5,100 FHHs in the city provided with household bins bins ii. Conduct of 1 consultation among community ii. 100 Women and men community members consulted. members (target: 50% women) including SCs and STs, and NGOs on the manner and schedule of trash collection iii. Conduct an exploratory study on possible iii. Study report produced

6 The five program cities are Agartala of Tripura, Aizawl of Mizoram, Shillong of Meghalaya, Kohima of Nagaland, and Gangtok of Sikkim.

Appendix 6 45

Activities Target Indicators Progress to date Issues/challenges livelihood opportunities from available recyclable materials and the market for possible products from these recycled materials iv. Conduct of 2 trainings on alternative livelihoods iv. 50 women community members trained on alternative for women using recyclable materials (e.g., livelihoods. papier mache, etc.). Output (iv) Strengthened project implementation capacity of executing agency i. Conduct of demographic survey of program city, i. At least 10% of the population of the city showing gender differential access to urban surveyed, with each sample comprising 50% services, income / poverty levels, among other women such indicators, specifically, between male- headed and female-headed households and among SCs and STs ii. Instituting geographic and sex-disaggregated ii. Project management information system in place with project management information system sex disaggregated data iii. Conduct of on-the-job capacity-building activities iii. SIPMIU staff capacitated on gender- responsive for SIPMIU on gender-sensitive recruitment, project management management, procurement and contract management, project and performance monitoring, safeguard compliance, land acquisition, and preparation of feasibilities studies and detailed designs

46 Appendix 6

GENDER ACTION PLAN – SEMI ANNUAL PROGRESS UPDATE NORTH EASTERN REGION CAPITAL CITIES DEVELOPMENT INVESTMENT PROGRAM – (LOAN 2834) Tranche 2 SIPMIU – Gangtok (SIKKIM) (Reporting period - July – September 2013)

To increase women‟s participation in project investments through training and awareness building, etc. The GAP will deliver outputs with gender aspects incorporated into the project implementation including improved water supply, sanitation, and solid waste management. Additional capacity development of the implementing agencies is provided to ensure gender awareness and monitoring of GAP targets.

Activities Target Indicators Progress to date Issues/challenges Outcome - Improved access to selected urban services in 5 program cities 7 Conduct of 1 gender sensitization seminar 10 municipal council officials gender-sensitized that highlights gender issues in water supply, Representatives of 5 women's NGOs, including self- sanitation, solid waste and drainage, and the help group gender-sensitized need for women‘s involvement in the 20 community members (50% implementation, O&M of these services women), including from scheduled castes (SCs) and scheduled tribes (STs), where applicable gender- sensitized State Investment Program Management and Implementation Unit (SIPMIU) staff state executing agency gender-sensitized Outputs (i) Constructed and rehabilitated water supply infrastructure i. Provision of connections and meters to poor i. 300 FHHs provided with connections and water female-headed households (FHHs) in each meters program city; ii. Employment of women in the construction of ii. Priority consideration to women workers in pipelines, plants, etc., with implementation of Agartala employed in construction work of „same pay for work of equal value‟ water supply facilities with equal pay. ‘

Output (ii) Constructed sanitation infrastructure

Prioritize connections to sewerage system of poor -- female-headed households

Appendix 6 47

Activities Target Indicators Progress to date Issues/challenges Output (iii ) Constructed and installed SWM infrastructure management systems ii. Prioritize FHHs in the provision of household iii. 5,100 FHHs in Gangtok provided with household bins bins iv. Conduct of 1 consultation, among community iv. 100 Women and men community members consulted. members (target: 50% women) including SCs and STs, and NGOs on the manner and schedule of trash collection v. Conduct an exploratory study on possible v. Study report produced. livelihood opportunities from available recyclable materials and the market for possible products from these recycled materials vi. Conduct of 2 trainings on alternative livelihoods for v. 50 women community members trained on alternative women using recyclable materials (e.g., papier livelihoods. mache, etc.) per program city Output (iv ) Strengthened local government for better financial management and sustainable service delivery i. Conduct of 1 consultation per program i. 100 Women and men community members city, consulted per program city among community members (target: 50% women) including SCs and STs, and NGOs on the manner and schedule of trash collection ii. Study report produced ii. Conduct an exploratory study on possible livelihood opportunities from available recyclable materials and the market for possible products from these recycled iii. 50 women community members trained on materials alternative livelihoods. iii. Conduct of 2 trainings on alternative livelihoods for women using recyclable materials (e.g., papier mache, etc.) per At least 10% of the population of the city surveyed, program city with each sample comprising 50% women iv. Conduct of demographic survey of program city, showing gender differential access to urban services, income / poverty levels, among other such indicators, specifically,

48 Appendix 6

Activities Target Indicators Progress to date Issues/challenges between male- headed and female- Project management information system in place headed households and among SCs and with sex disaggregated data STs v. Instituting geographic and sex- disaggregated project management SIPMIU staff capacitated on gender- responsive information system project management vi. Conduct of on-the-job capacity-building activities for SIPMIU on gender-sensitive recruitment, management, procurement and contract management, project and performance monitoring, safeguard compliance, land acquisition, and preparation of feasibilities studies and detailed designs

Appendix 6 49

GENDER ACTION PLAN – SEMI ANNUAL PROGRESS UPDATE SIPMIU – AIZWAL (MIZORAM) NORTH EASTERN REGION CAPITAL CITIES DEVELOPMENT INVESTMENT PROGRAM – (LOAN 2528) – TRANCHE 1

(Reporting period - xx– xx 2013) Activities Target Indicators Progress to date Issues/challenges Outcome - Sustainable and increased access to better urban services in five program cities Conduct of 1 gender sensitization seminar 10 municipal council officials gender-sensitized that highlights gender issues in water supply, Representatives of 5 women's NGOs, including self- sanitation, solid waste and drainage, and the help group gender-sensitized need for women‘s involvement in the 20 community members (50% implementation, O&M of these services women), including from scheduled castes (SCs) and scheduled tribes (STs), where applicable gender- sensitized State Investment Program Management and Implementation Unit (SIPMIU) staff of the state executing agency gender-sensitized Output (i) - Improved water supply and infrastructure Provision of connections and meters to poor iii. 500 FHHs provided with connections and water meters female-headed households (FHHs). iv. Employment of women in the construction of pipelines, plants, etc., with implementation of same pay for work of equal value‘ Output (ii) Improved sanitation infrastructure Prioritize connections to sewerage system of poor 500 number of poor FHHs provided with sewerage female-headed households connections Output (iii ) Improved solid waste management systems i. Conduct of 1 consultation among i. 100 Women and men community members consulted. community members (target: 50% women) including SCs and STs, and NGOs on the manner and schedule of trash collection ii. Conduct an exploratory study on ii. Study report produced possible livelihood opportunities from available recyclable materials and the market for possible products from these recycled materials iii. Conduct of 2 trainings on alternative livelihoods iii. 50 women community members trained on alternative for women using recyclable materials (e.g., livelihoods. papier mache, etc.) .

50 Appendix 6

Activities Target Indicators Progress to date Issues/challenges Output (iv) Strengthened project implementation capacity of executing agency ii. Conduct of demographic survey of the city, iii. At least 10% of the population of the city showing gender differential access to urban surveyed, with each sample comprising 50% services, income / poverty levels, among other women such indicators, specifically, between male- headed and female-headed households and among SCs and STs iv. Instituting geographic and sex-disaggregated iv. Project management information system in place with project management information system sex disaggregated data v. Conduct of on-the-job capacity-building activities iv. SIPMIU staff capacitated on gender- responsive for SIPMIU on gender-sensitive recruitment, project management management, procurement and contract management, project and performance monitoring, safeguard compliance, land acquisition, and preparation of feasibilities studies and detailed designs

Appendix 6 51

GENDER ACTION PLAN – SEMI ANNUAL PROGRESS UPDATE NORTH EASTERN REGION CAPITAL CITIES DEVELOPMENT INVESTMENT PROGRAM – (LOAN 2834) Tranche 2 SIPMIU – AIZWAL (MIZORAM)

(Reporting period - July – September 2013)

To increase women‟s participation in project investments through training and awareness building, etc. The GAP will deliver outputs with gender aspects incorporated into the project implementation including improved water supply, sanitation, and solid waste management. Additional capacity development of the implementing agencies is provided to ensure gender awareness and monitoring of GAP targets.

Activities Target Indicators Progress to date Issues/challenges Outcome - Improved access to selected urban services in 5 program cities Conduct of 1 gender sensitization seminar 10 municipal council officials of the city gender- that highlights gender issues in water supply, sensitized Representatives of 5 women's NGOs, sanitation, solid waste and drainage, and the including self-help group per program city gender- need for women‘s involvement in the sensitized implementation, O&M of these services 20 community members (50% women), including from scheduled castes (SCs) and scheduled tribes (STs), where applicable of the city gender-sensitized State Investment Program Management and Implementation Unit (SIPMIU) staff of the state executing agency gender-sensitized Outputs (i) Constructed and rehabilitated water supply infrastructure iii. Provision of connections and meters to poor iii. 500 FHHs provided with connections and water female-headed households (FHHs) . meters in the city. iv. Priority consideration to women workers in iv. Employment of women in the construction of Agartala employed in construction work of pipelines, plants, etc., with implementation of water supply facilities with equal pay. ‘ „same pay for work of equal value‟ Output (ii) Constructed sanitation infrastructure

Prioritize connections to sewerage system of poor 500 number of poor FHHs provided with sewerage female-headed households connections Output (iii ) Constructed and installed SWM infrastructure management systems i. Conduct of 1 consultation per program city, i. 100 Women and men community members consulted. among community members (target: 50% women) including SCs and STs, and

52 Appendix 6

Activities Target Indicators Progress to date Issues/challenges NGOs on the manner and schedule of trash collection ii. Conduct an exploratory study on ii. Study report produced. possible livelihood opportunities from available recyclable materials and the market for possible products from these recycled materials iii. Conduct of 2 trainings on alternative livelihoods for iii. 50 women community members trained on alternative women using recyclable materials (e.g., papier livelihoods. mache, etc.) per program city Output (iv ) Strengthened local government for better financial management and sustainable service delivery vii. Conduct of 1 consultation of the city, i. 100 Women and men community members among community members (target: 50% consulted. women) including SCs and STs, and NGOs on the manner and schedule of trash collection ii. Study report produced. viii. Conduct an exploratory study on possible livelihood opportunities from available recyclable materials and the market for possible products from these recycled materials iii. 50 women community members trained on ix. Conduct of 2 trainings on alternative alternative livelihoods. livelihoods for women using recyclable materials (e.g., papier mache, etc.)

x. Conduct of demographic survey of program iv. At least 10% of the population of the city city, showing gender differential access to surveyed, with each sample comprising 50% urban services, income / poverty levels, women among other such indicators, specifically, between male- headed and female- headed households and among SCs and STs v. Project management information system in xi. Instituting geographic and sex- place with sex disaggregated data disaggregated project management

Appendix 6 53

Activities Target Indicators Progress to date Issues/challenges information system

vi. SIPMIU staff capacitated on gender- responsive xii. Conduct of on-the-job capacity-building project management activities for SIPMIU on gender-sensitive recruitment, management, procurement and contract management, project and performance monitoring, safeguard compliance, land acquisition, and preparation of feasibilities studies and detailed designs

54 Appendix 6

GENDER ACTION PLAN – SEMI ANNUAL PROGRESS UPDATE NORTH EASTERN REGION CAPITAL CITIES DEVELOPMENT INVESTMENT PROGRAM – (LOAN 2528) SIPMIU - SHILONG (MEGHALAYA)

(Reporting period - July – September 2013) Activities Target Indicators Progress to date Issues/challenges Outcome - Sustainable and increased access to better urban services in five program cities Conduct of 1 gender sensitization seminar 10 municipal council officials gender-sensitized that highlights gender issues in water supply, Representatives of 5 women's NGOs, including self- sanitation, solid waste and drainage, and the help group gender-sensitized need for women‘s involvement in the 20 community members (50% implementation, O&M of these services women), including from scheduled castes (SCs) and scheduled tribes (STs), where applicable, gender- sensitized State Investment Program Management and Implementation Unit (SIPMIU) staff of state executing agency gender-sensitized Output (i) - Improved water supply and infrastructure Provision of connections and meters to poor -- -- female-headed households (FHHs). v. Employment of women in the construction of pipelines, plants, etc., with implementation of same pay for work of equal value‘ Output (ii) Improved sanitation infrastructure Prioritize connections to sewerage system of poor -- female-headed households Output (iii ) Improved solid waste management systems iii. Prioritize FHHs in the provision of household v. 6,000 FHHs provided with household bins bins vi. Conduct of 1 consultation per program city, vi. 100 Women and men community members consulted. among community members (target: 50% women) including SCs and STs, and NGOs on the manner and schedule of trash collection vii. Conduct an exploratory study on possible vii. Study report produced livelihood opportunities from available recyclable materials and the market for possible products from these recycled materials viii. Conduct of 2 trainings on alternative livelihoods vi. 50 women community members trained on alternative for women using recyclable materials (e.g., livelihoods. papier mache, etc.)

Appendix 6 55

Activities Target Indicators Progress to date Issues/challenges Output (iv) Strengthened project implementation capacity of executing agency iii. Conduct of demographic survey of program city, v. At least 10% of the population surveyed, with showing gender differential access to urban each sample comprising 50% women services, income / poverty levels, among other such indicators, specifically, between male- headed and female-headed households and among SCs and STs vi. Instituting geographic and sex-disaggregated vi. Project management information system in place with project management information system sex disaggregated data vii. Conduct of on-the-job capacity-building activities v. SIPMIU staff capacitated on gender- responsive for SIPMIU on gender-sensitive recruitment, project management management, procurement and contract management, project and performance monitoring, safeguard compliance, land acquisition, and preparation of feasibilities studies and detailed designs

56 Appendix 6

GENDER ACTION PLAN –SEMI ANNUAL PROGRESS UPDATE NORTH EASTERN REGION CAPITAL CITIES DEVELOPMENT INVESTMENT PROGRAM – (LOAN 2834) Tranche 2 SIPMIU - SHILONG (MEGHALAYA)

(Reporting period - July – September 2013)

To increase women‟s participation in project investments through training and awareness building, etc. The GAP will deliver outputs with gender aspects incorporated into the project implementation including improved water supply, sanitation, and solid waste management. Additional capacity development of the implementing agencies is provided to ensure gender awareness and monitoring of GAP targets.

Activities Target Indicators Progress to date Issues/challenges Outcome - Improved access to selected urban services in 5 program cities 8 Conduct of 1 gender sensitization seminar 10 municipal council officials gender-sensitized that highlights gender issues in water supply, Representatives of 5 women's NGOs, including self- sanitation, solid waste and drainage, and the help group gender-sensitized need for women‘s involvement in the 20 community members (50% implementation, O&M of these services women), including from scheduled castes (SCs) and scheduled tribes (STs), where applicable gender- sensitized State Investment Program Management and Implementation Unit (SIPMIU) staff of the state executing agency gender-sensitized Outputs (i) Constructed and rehabilitated water supply infrastructure I. Provision of connections and meters to poor female-headed households (FHHs) in each program city; --

II. Employment of women in the construction of pipelines, plants, etc., with implementation of II. Priority consideration to women workers in „same pay for work of equal value‟ Agartala employed in construction work of water supply facilities with equal pay. ‘

Appendix 6 57

Activities Target Indicators Progress to date Issues/challenges

Output (ii) Constructed sanitation infrastructure

Prioritize connections to sewerage system of poor -- -- female-headed households Output (iii ) Constructed and installed SWM infrastructure management systems iv. Prioritize FHHs in the provision of household vii. 3,000 FHHs provided with household bins bins viii. Conduct of 1 consultation per program city, viii. 100 Women and men community members consulted. among community members (target: 50% women) including SCs and STs, and NGOs on the manner and schedule of trash collection ix. Conduct an exploratory study on possible ix. Study report produced livelihood opportunities from available recyclable materials and the market for possible products from these recycled materials x. Conduct of 2 trainings on alternative livelihoods for vii. 50 women community members trained on alternative women using recyclable materials (e.g., papier livelihoods. mache, etc.) per program city Output (iv ) Strengthened local government for better financial management and sustainable service delivery xiii. Conduct of 1 consultation per program iv. 100 Women and men community members city, consulted. among community members (target: 50% women) including SCs and STs, and NGOs on the manner and schedule of trash collection v. Study report produced xiv. Conduct an exploratory study on possible livelihood opportunities from available recyclable materials and the market for possible products from these recycled materials vi. 50 women community members trained on xv. Conduct of 2 trainings on alternative alternative livelihoods. livelihoods for women using recyclable

58 Appendix 6

Activities Target Indicators Progress to date Issues/challenges materials (e.g., papier mache, etc.) per program city vii. At least 10% of the population of the city xvi. Conduct of demographic survey of program surveyed, with each sample comprising 50% city, showing gender differential access to women urban services, income / poverty levels, among other such indicators, specifically, between male- headed and female- headed households and among SCs and STs viii. Project management information system in xvii. Instituting geographic and sex- place with sex disaggregated data. disaggregated project management information system ix. SIPMIU staff capacitated on gender- xviii. Conduct of on-the-job capacity- responsive project management building activities for SIPMIU on gender-sensitive recruitment, management, procurement and contract management, project and performance monitoring, safeguard compliance, land acquisition, and preparation of feasibilities studies and detailed designs