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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No.: 18437 IMPLEMENTATION COMPLETION REPORT Public Disclosure Authorized INDIA HYDERABAD WATER SUPPLY AND SANITATION PROJECT (Loan 3181/Credit 2115-IN) Public Disclosure Authorized SEPTEMBER 21, 1998 Infrastructure Sector Unit South Asia Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS US$1.00= Rs 16.00 at appraisal(October 1, 1989) Rs. 1.00= US50.0625at appraisal(October 1, 1989) US$1.00 Rs. 39.50 at closure(March 31, 1998) Rs. 1.00= US$0.025at closure (March31, 1998) GOIIGOAPFISCAL YEAR April 1 - March31 WEIGHTS AND MEASURES m - meter (39.37 inchesor 3.28 ft) m2 - square meter (10.7639square feet) km - kilometer(0.62 miles) ha - hectare (10,000 squaremeters or 2.47 acres) sq. km - square kilometer(0.386 square. miles) I - liter (0.22 Imperialgallons or 0.264 US gallons) lcd - liters per capita per day Rs. I akh - Rs. 100,000 Rs. I crore - Rs. 10,000,000 ABBREVIATIONS AND ACRONYMS DRP - Dam ReviewPanel ERR . EconomicRate of Return FRR - FinancialRate of Retum FY - Fiscal Year GOAP - Governmentof AndhraPradesh GOI - Governmentof India HMWSSB HyderabadMetropolitan Water Supply and SewerageBoard HWSSP . HyderabadWater Supplyand SanitationProject ICADD - Irrigation and ConmmandArea DevelopmentDepartnent of GOAP ICR - ImplementationCompletion Report IS - InformationSystems LCS - Low-Cost Sanitation M&E - Monitoringand Evaluation MTR - Mid-TermReview OAP OperationalAction Plan O&M - Operationand Maintenance PSP - Private SectorParticipation R&R - Resettlementand Rehabilitation RRP Resettlementand RehabilitationProgram SAR - Staff AppraisalReport SCF - StandardConversion Factor SOE - Statementof Expenditure s/w - Staff-weeks UFW - Unaccounted-forWater WSS - WaterSupply and Sanitation Vice President Mieko Nishimizu Director Edwin R. Lim Sector Manager Frannie Humplick Task Leader Shyamal Sarkar FOR OFFICIALUSE ONLY IMPLEMENTATIONCOMPLETION REPORT INDIA HYDERABADWATER SUPPLY AND SANITATIONPROJECT (LOAN 3181/CREDIT2115-IN) TABLE OF CONTENTS Page No. PREFACE i EVALUATION SUMMARY ii PART I: PROJECT IMPLEMENTATIONASSESSMENT 1 A. Project Objectives 1 B. Achievement of Project Objectives 1 C. Major Factors Affecting the Project 7 D. Project Sustainability 8 E. Bank Performance 9 F. Borrower Performance 10 G. Assessment of Outcome 11 H. Future Operations 12 I. Key Lessons Learned 12 PART II: STATISTICALANNEXES Table 1: Summary of Assessments 14 Table 2: Related Bank Loan/Credits 15 Table 3: Project Timetable 17 Table 4: Credit Disbursements:Cumulated Estimated and Actual 17 Table 5: Key Indicators for Project Implementation 18 Table 6: Key Indicators of Project Operation 19 Table 7: Studies Included in Project 20 Table 8A: Project Costs 22 Table 8B: Project Financing 22 Table 9: Economic Costs and Benefits 23 Table 10: Status of Legal Covenants 24 Table 11: Compliancewith OperationalManual Statements 26 Table 12: Bank Resources: Staff Inputs 26 Table 13: Bank Resources: Missions 27 APPENDICES A. Completion Mission's Aide-Memoire 29 B. Borrower's Evaluation 56 C. The Implementationof the Relocationand RehabilitationProgram 64 Maps: IBRD No. 20971R Water Supplyand Transmission System IBRD No. 29845 HMWSSB- Water Supply System IBRD No. 29846 HMWSSB - Sewerage System 4 This document has a restricted distribution and may be used by recipients only in the performance,oftheir official duties. Its contents may not otherwisebe disclosed without World Bank authorization. i IMPLEMENTATIONCOMPLETION REPORT INDIA HYDERABADWATER SUPPLY AND SANITATION PROJECT (LOAN 3181/CREDIT2115-IN) Preface Thisis the ImplementationCompletion Report (ICR) for the HyderabadWater Supply and SanitationProject in India,for which the Loan3181 -IN in the amountof US$10.0 million equivalentand Credit2115-IN in the amountof SDR63.9 million (together, US$89.9 million equivalent)were approved on March27, 1990and made effectiye o,n September 28, 1990. The Loan amountwas canceledin fullon December5, 1991. The Creditwas closedon March31, 1998,which was the originalclosing date, and final disbursementtook place on August24, 1998 at whichtime there was a US$6.7million equivalent Creditbalance, which was cancelled. The ICRwas preparedby Mr.Michael Whitbread (Consultant) under the guidanceand supervision of Mr. ShyamalSarkar (Task Leader). The ICR wasreviewed by Messrs./Mmes.Robert Panfil (on behalfof FrannieHumplick, Sector Manager, South Asia Region),Agustin Litvak (Procurement),Salman M.A. Salman (Legal), Williamn B. Marke(Loan), Panneer Selvam (Envirom-nental),Asger Christensen (Social Development), Hartwin Nickel and CarloRietveld (peerreviewers). Thepreparation of this ICRbegan during the Bank's final supervisionand completionmission in March 1998. The ICRis basedon the mission'sfindings which are includedas AppendixA to the ICR, materialfrom project files and discussionswith officials of the Bank,Borrower and others involvedwith different stages of the projectcycle. The Borrowercontributed to the ICR by providingdata and viewson the projectoutcome. The Borrower's evaluation is includedas AppendixB. ii IMPLEMENTATION COMPLETION LREPORT INDIA HYDERABADWATER SUPPLY ANDSANITATION PROJECT (LOAN 3181/CREDIT2115-IN) EvaluationSummary Introduction 1. The HyderabadWater Supply and SanitationProject was the first Bank-supportedurban water supply and sanitation(WSS) project in Hyderabad,the capitalcity of the State of Andhra Pradesh,and one of India's five largest cities. Hyderabadis one of the few cities in India with a dedicatedpublic utility which provides WSS services. Althoughthere were important physical investmentsaimed at improvingthe supply of water and waste water disposal and other benefits, much of the project consistedof strengtheningpolicies and institutionalarrangements. Given its prominence,Hyderabad was likely to provide demonstrationeffects for other Indian cities. ProjectObjectives 2. The majorproject objectiveswere to: (a) help AndhraPradesh in improving,for Hyderabad,the adequacyand reliabilityof the water supply,the collection,treatment and disposalof waste water and the provisionof excretadisposal facilities; (b) strengthenthe managementand technical capacityof the concernedinstitutions; and (c) prepare future urban and water supply and sanitationprojects in Andhra Pradesh. 3. Therewere six componentsand several agreedactions to achievethe objectives. Component1, the ManjiraPhase III Stage II Scheme,was intendedto treat, store and pump 135 Mld of water from the Singur Dam reservoir,an irrigationfacility located 67 kms from the city which at the time of appraisalwas under construction,and also improvethe reliabilityof supply thereby addressingthe water quantityand qualityimprovement objectives. Component 2 was intendedto rehabilitateand strengthenthe existingwater systemand Component 3, to rehabilitateand strengthenthe existing seweragesystem including the provision of additional sewagetreatment works. Component 4 provideda householdlatrine (low cost sanitation) program. Component 5 involvedresettlement and rehabilitationof the people involuntarily displacedby the Singur Dam and reservoir. Component 6, involvedinstitutional strengthening through technicalassistance to, and personneltraining in the HyderabadMetropolitan Water Supply and SewerageBoard (HMWSSB). Other actionsfor institutionalstrengthening were either covenantedor includedin an OperationalAction Plan. Implementation Experience and Results 4. Physicalachievements of the first five componentswere mixed, although they have,been rated as satisfactoryoverall. Component1 was implementedpromptly and efficientlyby the HMWSSB. However,the benefitsof the Component1 expenditurewere not fully realized iii during the projectdue to slow action by the Irrigationand CommandArea Development Department(ICADD) of GOAP, the owners of SingurDam, in undertakingnecessary remedial works to the dam gates. This failure by ICADDresulted in restrictionsin the height to which the reservoir could be filled and reducedflows of water to Hyderabadcompared with appraisal. The dam gates are under repair at the time of writingand clearancehas been given for full reservoir filling which should occur in 1998. Components2 and 3 were greatlydelayed due to non- availabilityof maps which were necessaryfor the engineeringdesign work and, as a result, Components2 and 3 were modified,but within the overallproject objectives, at the time of the Mid-termReview. Component4 was fully implemented.Component 5 was substantially completeddespite a slow start and difficultiesencountered during implementationin resolving many unforeseenissues. 5. Institutionalstrengthening (Component 6) was successfuland fullyjustified the risks taken by the Bank in supportingHMWSSB, which was a new institution. Achievements included:successful completion of many importantstudies, including studies assisting the preparationof a secondproject; successfulexecution of a well-preparedtraining program; introductionof advancedprocurement procedures; extensive computerization; introduction of modem financialmanagement systems; and successfulcommencement of a program of private sector p-aticnation in the form of O&Mcontracts. Morethan these achievemunts,there nas been an institutionaltransformation at HMWSSBfiom thcetraditional bureau_ratic to a professional,consumer-orientated, approach
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