Document of The World Bank
FOR OFFICIAL USE ONLY
Public Disclosure Authorized Report No. 15475
IMPLEHMENTATIONCOMPLETION REPORT Public Disclosure Authorized
INDIA
TAMIL NADU WATER SUPPLY AND SANITATION PROJECT (CREDIT 1454/SF 12 IN) Public Disclosure Authorized
MARCH 26, 1996
Agriculture and Water Operations Division Country Department II South Asia Regional Office 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 EXCHANGE RATE AND ABBREVIATIONS
CURRENCY EQUIVALENTS
US$ 1.00 = Rs. 9.75 at appraisal (February 1983) Rs. 1.00 = US$ 0.1025 at appraisal (February 1983) US$ 1.00 = Rs. 31.50 at closure (December 1994) Rs. 1.00 = US$ 0.0317 at closure (December 1994)
GOI/GOTN FISCAL YEAR April I - March 31
MEASURES AND EQUIVALENTS mm - millimeter (0.04 inches) cm - centimeter (0.39 inches) m - meter (39.37 inches or 3.28 ft) km - kilometer (0.62 miles) ha - hectare (10,000 square meters or 2.47 acres) sq. km - square kilometer (0.386 square miles) I - liter (0.22 Imperial gallons or 0.264 US gallons) lcd - liters per capita per day cu. m - cubic meter (220 Imperial gallons or 264.2 US gallons) ml - million liters or 1,000 cubic meters mid - million liters per day (0.220 million Imperial gallons per day or 0.264 million US gallons per day) mgd - million gallons (Imperial) per day Rs. I lakh - Rs. 100,000 Rs. I crore - Rs. 10,000,000
ACRONYMS AND ABBREVIATIONS
AIC - Average Incremental Cost CLPA - Coimbatore Local Planning Area CMS - Cities of Coimbatore, Madurai and Salem GOTN/GTN - Government of Tamil Nadu GOI - Government of India IDWSSD - International Drinking Water Supply and Sanitation Decade Program ROR - Rate of Return LIC - Life Insurance Corporation of India MC - Municipal Corporation MMWSSB - Madras Metropolitan Water Supply and Sewerage Board PWD - Public Works Department TWAD - Tamil Nadu Water Supply and Drainage Board UNDP - United Nations Development Program WHO - World Health Organization FOR OFFICIALUSE ONLY IMPLEMENTATION COMPLETION REPORT
INDIA TAMIL NADU WATER SUPPLY AND SANITATION PROJECT (CREDIT IDA 1454/SF 12 IN)
TABLE OF CONTENTS Page No. PREFACE ...... i
EVALUATION SUMMARY...... ii
PART I: PROJECT IMPLEMENTATION ASSESSMENT...... 1
A. Statement/Evaluation of Objectives...... 1 B. Achievement of Objectives ...... 1 C. Major Factors Affecting the Project ...... 5 D. Project Sustainability ...... 7 E. Bank Perforrnance ...... 7 F. Borrower Performance...... 7 G. Assessment of Outcome ...... 8 H. Future Operations ...... 8 1. Key Lessons Learned...... 9
PART II: STATISTICAL ANNEXES ...... 11
Table 1: Summary of Assessments...... 11 Table 2: Related Bank Loans/Credits ...... 1l Table 3: Project Timetable ...... 1 Table 4: Loan/Credit Disbursements: Cumulative Estimated and Actual ...... 1 Table 5: Key Indicators for Project Implementation ...... 1: Table 6: Key Indicators for Project Operation ...... 1 Table 7: Studies Included in Project ...... 1. Table 8A: Project Costs ...... 1' Table 8B: Project Financing ...... 1E Table 9: Economic Costs and Benefits ...... 1C Table 10: Status of Legal Covenants ...... 2C Table 11: Compliance with Operational Manual Statements ...... 22 Table 12: Bank Resources: Staff Inputs ...... 23 Table 13: Bank Resources: Missions ...... 24
APPNDICES
A. Completion Mission's Aide-Memoire B. Borrower's Evaluation Maps: IBRD Nos. 27858, 27860, 27861,27862
Thisdocument has a restricteddistribution and may beused by recipientsonly in the performanceof their official duties. Its contents may not otherwise be disclosedwithout WorldBank authorization.
i
INDIA IMPLEMENTATION COMPLETION REPORT
TAMIL NADU WATER SUPPLY AND SANITATION PROJECT CREDIT IDA 1454/SF 12 IN
Preface
This is the Implementation Completion Report (ICR) for the TamnilNadu Water Supply and Sanitation Project in India, for which Credit IDA 1454/SF 12 IN in the amount of SDR 35.3 million and 35.3 million respectively, totaling SDR 70.6 million, was approved on March 29, 1984 and made effective on February 22, 1985.
The Credit was finally closed on December 31, 1994, although the original Credit closing date was June 30, 1990. The project suffered delays. It was restructured, with the approval of the Board, on January 7, 1991 to include additional components and with an extension of the closing date to November 30, 1992. Also at that time the disbursement percentage was increased by the Bank. After two more extensions the restructured project was substantially complete by the final revised Credit closing date and was fully disbursed by March 1, 1995.
The ICR was prepared by Messrs. G.V. Abhyankar of the Bank's Resident Mission in New Delhi, A. Saravanapavan (Consultant) and Karl Kleiner (Task Manager) of the Agriculture and Water Operations Division, Country Department 2, South Asia Region. The ICR was reviewed by Mr. Shawki Barghouti, Chief, Agriculture and Water Operations Division, Country Department 2, South Asia Region, and Mr. Christopher Couzens, Project Advisor (Acting). The Borrower provided an independent evaluation which is included as an appendix to the ICR.
The preparation of this ICR began during the Bank's final supervision mission in November 1994. It is based on the material from the project file and mission findings. The Borrower contributed to the ICR by providing data, views on the project outcome and the independent evaluation.
ii
IMPLEMENTATION COMPLETION REPORT
INDIA
TAMIL NADU WATER SUPPLY AND SANITATION PROJECT (CREDIT IDA 1454/SF 12 IN)
Evaluation Summary
Project Objectives
1. The broad aims of the project were to improve water supply and sanitation services in specific urban areas, support institutional and financial strengthening of the sector institutions and develop a water resource management strategy for the water-scarce State of Tamil Nadu in India. This was the first Bank Group-financed statewide water supply and sanitation project in the State, following similar projects in five other Indian states. The project was expected to benefit over 4 million of the urban population in the State.
2. The specific objectives and the scope of the project were to: (a) improve water supply in three large urban towns (Coimbatore, Madurai and Salem) and provide safe water supply to a number of smaller towns and rural areas without these facilities; (b) provide proper low-cost sanitation (LCS) facilities to selected urban communities to improve public health standards; (c) assist the Government of Tamil Nadu (GOTN) and the implementing agency, the Tamil Nadu Water Supply and Drainage Board (TWAD), in developing water resources management strategies aimed at achieving overall economies in providing drinking water; (d) enable low-income groups to connect to the systems, or alternatively to provide adequate standpost facilities; (e) strengthen TWAD's institutional, managerial and financial practices through training and technical assistance; and, (f) assist urban local bodies in improving their resource base for proper operation and maintenance of installed facilities.
3. The project was restructured on January 7, 1991 to expand water supply service coverage by adding water supply schemes for 6 medium-sized towns and several drought affected rural communities, LCS units in additional small towns and a sector plan study.
Implementation Experience and Results
4. The original project implementation schedule (1985-90) was not adhered to, and the delays were extensive. Project extensions totaling more than 4 years were granted. There were four main reasons for the delays: (a) TWAD was slow to prepare final designs (and undertook two major design changes which were time consuming), initiate bid invitations and make awards; (b) unsatisfactory performance by one major pipeline contractor that caused serious problems; (c) poor project management by TWAD, at least in the initial years; and, (d) the original implementation schedules were unrealistic. For the Coimbatore water supply scheme, there was a delay of two years because GOI environmental clearance for using a forest reserve was not granted, resulting in redesign of this major scheme. The appraised project did not use standard disbursement profiles which, for this sector and region, would have been close to the actual rate of disbursement.
5. Nevertheless, with the benefit of the additional time available, all the physical objectives of the project were fully met. Indeed, the initial objectives were exceeded when account is taken of the additional works included at restructuring. Water supply to three large towns has been augmented and piped water provided for the first time to 46 small towns. The project will particularly benefit urban poor and women through improved access to drinking water. The beneficiary population will be over 5 million as compared to the appraisal figure of 4 million because of the inclusion of additional water supply schemes.
6. Implementation of the low cost sanitation (LCS) program in 14 Phase 1 towns led to requests for inclusion of 52 new towns at Phase 2 and the project achieved not only the appraised LCS target but the enhanced target set at restructuring. Over 34,000 units have been constructed in the 66 small and medium towns. There is a need for GOTN to formally evaluate the LCS program implemented under the project in terms of: (a) sustained use of the facilities; and, (b) the project's demonstration impact, which is generally regarded as significant since the program is continuing with GOTN funds.
7. The project utilized all the available Credit of SDR 70.6 million. The actual project cost in rupee terms exceeded estimates by over 50 % for the original scope of work. Additional works included at restructuring were completed with only a minor cost increase over estimates. The main reasons for the cost overruns in rupee terms were design changes, implementation delays and poor contractor performance.
8. GOTN provided adequate and timely counterpart funds for implementation. This contrasts with Bank experience in some other Indian states.
9. The project assisted the preparation of the State's water sector policy. A water resources management study was completed for six river basins which culminated in the setting up of State Water Resources Council, adoption of State water policy and preparation of a draft Water Legislation Act. The river basins study is being extended under the Tamil Nadu Water Resources Consolidation Project (Cr.2745-IN).
10. At the time of Credit closing only a preliminary sector analysis had been completed for drinking water. Nonetheless, the study has provided an impetus to the planning of sustainable and economical developments.
11. Attempts to strengthen TWAD as the main sector institution in the State had mixed results. Certainly, the organizational and management capacity of TWAD has improved. But its operations remain overly centralized. The Sector Plan Study has made a number of recommendations for change in TWAD's role in statewide sector planning and management, and has outlined needed organizational changes. GOTN is proceeding to implement the findings of the study. iv
12. Partly as a result of the project's interventions, the financial management of the local bodies has considerably improved. Tariffs were increased by 80% to 140%, often prior to the commissioning of new schemes. Separate accounts are now maintained for water supply and sanitation in the local bodies.
13. Project outcome assessment. Overall, the project achieved most of its major objectives but with substantial delays. It is expected to achieve satisfactory development results, with only a few shortcomings. It is rated as satisfactory.
Sustainability
14. The project's sustainability has been rated as likely. The success of long term sustainability will depend critically upon GOTN's close monitoring and enforcement of financial discipline by the beneficiary local bodies.
Further Operations
15. In the post-project period the O&M responsibility for water supply feeder systems is being shifted to TWAD while the local bodies will continue to be responsible for distribution O&M. Capacity building of both TWAD and the local bodies for more effective performance will pose a challenge to GOTN. GOTN will need to encourage and facilitate local bodies to generate adequate resources to pay proportionate O&M cost to TWAD, in addition to the debt service charges and administration expenses which have arisen.
16. Detailed performance indicators have been developed by the final supervision mission for monitoring and evaluation of the project's performance. The Bank's involvement in the sector is continuing through the Second Madras Water Supply Project (Ln.3907-IN) as well as the Tamil Nadu Water Resources Consolidation Project. TWAD's performance in project-related activities improved significantly over the project period. This has encouraged the Bank to support the Second Madras Project, in particular, in which TWAD has an important implementation role.
17. GOTN should pursue preparation of follow-up projects for Coimbatore and Madurai water supply, since the design horizon for schemes under this project was the year 1996.
18. GOTN and TWAD also need to further develop the drinking water sector study initiated through the project to ensure that adequate and reliable sector data are collected, sector issues are analyzed with sufficient rigor and sector policies reformulated on an ongoing basis. This activity will be continued in the context of the Tamil Nadu Water Resources Consolidation Project.
Key lessons learned
19. The most significant issues that have arisen with this project were associated with its extensive delays. Accordingly, the primary lessons are concemed with improvements to project planning which would reduce the chances of delay in future projects. Specifically, final designs, environmental and other clearances, and procurement procedures need to be finalized for a v significant proportion of the works, and all works on the project's critical path, before implementation starts. Normally this will mean prior to appraisal, or negotiations as is now Bank policy.
20. A further cause of delay was that delegation of adequate powers to Chief Engineers responsible for on-the-ground implementation did not take place as was agreed. Greater resolution is required on the part of the Bank than was apparent in this project in establishing relevant conditionalities, ensuring they are met and enforcing them during implementation.
21. In order to encourage a proper sense of ownership, with its attendant focus on the timeliness of asset creation, the ultimate asset owners (local bodies, in this case) should thoroughly participate in the supervision and control of all stages of the project cycle. Moreover, the implementing agency (TWAD) did not have adequate incentives, in the form of penalties or rewards, to perform according to the agreed programs of preparation and implementation.
22. Proportionately greater Bank supervision effort is required in the initial years of the project, particularly when an agency is involved which is participating in a Bank project for the first time. Additionally, this project would have benefited from greater consultant assistance to the implementing agency in preparation and early phases of implementation. I
IMPLEMENTATION COMPLETION REPORT
INDIA
TAMIL NADU WATER SUPPLY AND SANITATION PROJECT (CREDIT IDA 1454/SF 12 IN)
PART I: PROJECT IMPLEMENTATION ASSESSMENT
A. Statement/Evaluation of Objectives
1. The objectives of the project were to: (a) improve water supply in three large urban towns of Tamil Nadu and to provide a safe water supply to a number of smaller towns and rural areas without these facilities; (b) provide proper low-cost sanitation (LCS) facilities to selected urban communities to improve public health standards; (c) assist the Government of Tamil Nadu (GOTN) and the implementing agency, the Tamil Nadu Water Supply and Drainage Board (TWAD), in developing water resource management strategies aimed at achieving overall economies in providing drinking water; (d) enable low-income groups to connect to the systems, or alternatively to provide adequate standpost facilities; (e) strengthen TWAD's institutional, managerial, and financial practices through training and technical assistance; and, (f) assist urban local bodies in identifying measures to improve their resource base for proper operations and maintenance of investments. These objectives were clear, realistic and important for the sector. The project was restructured on January 7, 1991 to expand water supply service coverage by adding six medium sized towns and several drought affected rural communities, more LCS units and a sector plan study.
2. The project did not include waste water disposal systems for the three large project towns of Coimbatore, Salem and Madurai. Two of these three towns already had sewerage systems covering old city areas. The GOTN had then intended to undertake expansion/introduction with its own resources, and within the context of the Bank's Tamil Nadu Urban Development Project (Cr. 1923-IN). Sullage drainage and low cost sanitation components were included, however, in 14 of the small/medium towns. With hindsight, part of the LCS component, which following restructuring ultimately covered 66 communities, could have also been included in the project for the fringe areas of the three large towns although there was resistance at the outset by GOTN to widening the LCS scope of the project.
B. Achievement of Objectives
3. The stated project objectives have by and large been met. However, because of implementation delays, many of the beneficiaries did not receive the targeted benefits for almost five years. Although their finances improved, not all the local bodies could accomplish the 2
targeted resource mobilization in the short term. The restructuring provided water supply benefits to an additional eight drought prone rural communities and the low cost sanitation program was extended. The major physical components of the three major towns of Coimbatore, Salem and Madurai were projected in the SAR to have a rate of return of about 8% (Table 9). Because of the delay, project costs increased, benefits were deferred and the rate of return was significantly lower, at about 5%.
4. Sector Policies: The project had a very positive effect on the State's water sector policy. A Water Resources Management Study to ensure security of drinking water sources in Tamil Nadu, starting with three river basins in Phase I, was successfully completed through the United Nations Department of Technical Cooperation for Development (UTN/DTCD).Phase II of the study covering three additional river basins was taken up under the restructured project. Based on the study recommendations the GOTN has taken/initiated the following actions: (i) the State Water Resources Council has been created under the chairmanship of the Chief Minister; (ii) the Draft Water Legislation Act (surface and ground water) is under the active consideration of the GOTN; and, (iii) the GOTN has framed and published the Tamil Nadu Water Policy. The GOTN has to date completed the study of 12 out of a total of 17 basins in the State. The remaining 5 basins would be studied under the Tamil Nadu Water Resource Consolidation Project (Cr.2745-IN), which also embraces enactment of the Water Resources Legislation. The GOTN has set up a multi-disciplinary team for this study which is headed by the Irrigation Department.
5. SustaiuakiliZ: In view of the limited capacity of Coimbatore, Salem and Madurai to operate and maintain (O&M) their respective systems, TWAD will take on this responsibility for both the existing and newly built production and transmission facilities and the complex feeder systems until such time as these local bodies gain the necessary competence. In the meantime, the local bodies will be responsible for the operation and maintenance of the internal distribution networks including metering, revenue collection and the reduction and control of unaccounted for water. Also, hereafter TWAD will be responsible for O&M of all regional piped water systems in the State, for both urban and rural areas, with the exception of internal distribution networks. This is intended to improve the standard of O&M and sustainability. Long-term sustainability depends on financial improvements at local body level, for which prospects are reasonable (see para 7).
6. Sector Plan Study: The study was intendedto providereliable sector data, identifyand analyze issues and recommend approaches for sustainable economic development which will assist the GOTN in appropriate policy reforms for this water-short state. The setting up of an in- house study team and the employment of consultants were delayed and the full team was in place only in December 1994. The draft final report was submitted in February 1995. The study recommendations form the basis for implementing further institutional reformnand the formulation of a sound investment program.
7. Financial objectives: Considerable progress has been made in this area. The principal financial objectives were to improve resource generation in the local bodies of Coimbatore, 3
Madurai and Salem, for debt servicing and meeting increased O&M expenses. A number of studies were successfully carried out for this purpose and the GOTN accepted and implemented the recommendations of the study reports with the result that tariffs have been increased by 80% to 140% and property tax raised by about 100%. What is particularly noteworthy is that the tariff increases were effected even before the commissioning of the new schemes. Due to various efforts under the project, the collection efficiency of both current and arrears demand has improved in Coimbatore and Salem; however, additional efforts are needed in Madurai, which is expected to gain further momentum on commissioning of the schemes. Billing efficiency has improved after introduction of the 'card-billing system' in Coimbatore. Separate accounts are maintained for water supply and sewerage and staff retained exclusively for this purpose. All accounts have been updated and audits completed. All consumer connections have been metered in Coimbatore and Salem, but in Madurai lack of drive by local officials to overcome public resistance has delayed installation of meters on the existing connections. Based on the consultant study, Coimbatore is actively considering implementation of stepped tariffs and Madurai has expressed interest in studying the possibility of privatizing metering and revenue collection. With these improvements and the continuing efforts to improve collection efficiency, Coimbatore, Salem and Madurai should be able to meet full O&M costs as well as their debt servicing obligations to the GOTN. Tariff increases have also been implemented in the forty-four small towns in the project. However the implementation of a new tariff in twenty rural towns in the Coimbatore system was delayed until the commissioning of the water supply services in these towns. GOTN orders required to introduce water tariffs in I I rural towns of the Salem system were also delayed. Also, based on study recommendations, the GOTN has permitted the local bodies to increase the 'professional tax' to improve their resource base. Most urban local bodies have since raised this tax. TWAD has computerized its financial accounting system and payroll systems for project staff in all its field offices down to the divisional level.
8. Institutional Obectives: The organization and management of TWAD's operations have substantially improved as a result of the following actions taken through the project:
(a) creation of new positions of Engineering, Finance and Administrative Directors and decentralization of TWAD's operations through setting up of separate regional and project Chief Engineers;
(b) introduction of computerized project monitoring and materials management systems in the project offices and procurement of office equipment (Computers, Fax, Photocopiers, telephone lines, etc.);
(c) establishment of a training center at Madras and regular training programs for engineers, operators and accounts and administration staff, based on the training needs assessment study carried out by consultants. However, there is scope for improving the quality of training. Construction of buildings and other facilities for the training center at Madras and a vocational training center at Trichinopoly have been completed; 4
(d) upgrading of water quality testing laboratories and the setting up of meter repair facilities, strengthening of maintenance workshops, and procurement of leak detection equipment; and
(e) adoption of effective procurement procedures.
The improvement in TWAD's performance has encouraged the Bank to support a further project in the sector, namely, the Second Madras Water Supply Project (Ln.3907-IN), in which TWAD has a significant but managerially straight-forward role. However, TWAD has remained highly centralized since adequate powers have not been delegated to field officers. For example, bid award decision powers have been taken away from TWAD for all works costing more than Rs. 10 million (US$0.3 million). TWAD needs to be given greater operational autonomy to properly fulfill its functions and obligations. The sector plan study has made several recommendations for further institutional reforms.
9. Physical objectives: All the physical objectives of the project have been met. Water supply to 46 small towns, eight rural schemes in the restructured project and all towns and rural habitations of the Salem system have been commissioned. The GOTN has provided adequate finds to TWAD to meet the full scheme requirements beyond the Credit closing date. Targets were achieved for the low cost sanitation program in all of the 14 towns in Phase 1. This popular success of a relatively new program resulted in requests from 52 new towns in Phase 2 for inclusion in the restructured project. This target was also achieved by the final revised closing date.
10. The selection of project towns, both large and small, as well as the rural habitations, was appropriate. Water supply provision in the larger towns had been insufficient to keep pace with growing demand. The small towns had only skeletal piped water systems, or none at all. Since the project was spread widely over the State, TWAD made an early decision to decentralize project management by setting up, initially one and later two, field offices supported by an adequate number of field teams. Despite this strategy the magnitude and complexity of the project stretched TWAD's implementation capacity to the limits. Design changes and slow procurement caused major delays in the first five years. Although the design changes improved the quality of the project, it was at the cost of delay. TWAD learned from the initial experience and performance improved. But only with extensions to the closing date was TWAD able to complete its original program, and eventually undertake a much larger volume of physical works than envisaged at appraisal. Eleven TWAD Managing Directors from the GOTN Administrative Service, and with varying management skills, were put in charge of the project.
11. Social aspects: In the towns of Coimbatore, Madurai and Salem about 30-50% of the population are estimated to be below the poverty line and they mostly live in slums dispersed throughout the town areas. The project has improved water supply services through the provision of adequate standposts located at appropriate places, decided in consultation with women in each community. In small towns and rural areas, more than 50% of the population is below the poverty line. These habitations did not have piped water supply, but now receive 5 water through stand posts. Thus, the project will effectively improve/provide water supply services to both the urban and rural poor in the project area. Pre-project, women had to travel long distances and spend considerable time for fetching water for domestic purposes. This situation has changed substantially as the project brings water within a short distance from the dwelling places.
12. Conversion of dry latrines and construction of new sanitary latrines in some 66 towns through the project has relieved many scavengers in these towns from the inhuman and hazardous tasks in collecting and disposing of human excreta. These scavengers are expected to be redeployed for solid waste management within the towns. Though full coverage has not been achieved, the large number of LCS units constructed through the project appears to have had a demonstration effect since the demand for low cost sanitation has increased substantially, and is receiving the support of other Government programs.
13. Environmental aspects: Improved water supply and provision of low cost sanitation will have a positive impact on the environment and health in the towns where these components have been implemented. A GOI environmental clearance was not obtained for the Coimbatore water supply scheme which resulted in 2 years' delay because of the need to redesign the scheme. However, this GOI decision ensured that the natural habitat of elephant herds has been preserved.
14. Private Sector: Although no foreign bidders participated in the project despite the use of ICB procedures for procurement of major works, the response of qualified private contractors from Tamil Nadu and other Indian states was positive and the quality of works was satisfactory. TWAD and some of the large local bodies are actively considering privatization of O&M of water treatment plants, pumping stations, meter reading, billing and revenue collection.
C. Major Factors Affecting the Project
15. Although all the project objectives have been substantially achieved, the following uncertainties remain:
(a) GOTN may delay in taking suitable measures, including passing legislation, to control exploitation of groundwater, or fail rigorously to enforce them;
(b) local bodies may defer tariff increases and fail to improve collections and so be unable to recover costs and thereby fulfill their O&M and debt service obligations; and,
(c) leak detection units have yet to be adequately staffed and made functional. How local bodies will utilize TWAD's expertise in this area has yet to be formulated.
16. Cost overruns: During project implementation there was a near constant relationship between the SDR and US$ but there was a large appreciation of the US$ against the Indian 6
Rupee. Project restructuring in January 1991 included additional works. The project cost in Rupee terms increased from Rs 1490 to Rs 3720 millions as follows:
(a) For the original project: a 53% cost increase occurred, due to inadequate project preparation which caused major changes in design, deficient estimates of physical quantities, unrealistic implementation schedules, implementation delays and inadequate price contingencies. There was poor performance of one major contractor.
(b) For new works: an 8.5% cost increase occurred, resulting primarily from higher bid prices as compared with TWAD estimates.
17. Initial hesitation on the part of TWAD in adopting the Bank's procurement guidelines for interest free mobilization advances and provision of a price escalation clause resulted in delays and higher bids than were necessary. Later, contract price escalation and bonus clauses gave incentives to major contractors to complete all works by the closing date.
18. Disbursement Delays: By the original Credit closing date of June 30, 1990, the project was already delayed by about three years with less than half the Credit disbursed due to: (i) delayed credit effectiveness; (ii) design changes; (iii) delayed positioning of staff; and, (iv) delayed environmental clearance. Had standard disbursement profiles for the sector and region been used at appraisal, there would have been a closer correlation of estimated with actual disbursements. The project was restructured at the time of original Credit closing and the closing date extended to June 30, 1993. Later, the Credit was further extended by 18 months primarily because of the non-performance of one main pipeline contractor for Coimbatore and Madurai, who defaulted and who was eventually replaced.
19. Implementation Delays: There were many reasons for the delay, mostly arising from factors subject to either Government or implementing agency control. Because environmental clearance from GOI for using a forest reserve for Coimbatore water supply scheme was not granted, the proposed gravity scheme had to be redesigned and a more expensive pumping scheme was adopted and as a result of this change this scheme was delayed by two years. Poor performance due to inadequate financial and management capacity of one of the major pipeline contractors (for Coimbatore and Madurai) resulted in replacement of the contractor involving some two years delay. Unforeseen difficulties in construction of works upstream of Pillur barrage arose due to failure of Tamil Nadu Electricity Board to lower water levels as agreed. Unrealistic implementation schedules were adopted for construction of tunnels. For Madurai, a design change from a pumping to a gravity scheme (involving deep excavations in rock), resulted in delays. For Salem, there was also delay in construction of a bridge by the GOTN Highways Department across a dam spillway. In the case of rural habitations, in spite of the recommendations of the Bank for single responsibility contracts and fewer contract packages, TWAD entrusted works to a large number of contractors and departmentally supplied the materials, which delayed these works. This procedure was changed only in the final years. The inadequacy of governrnent labor rates for preparing cost estimates resulted in under-estimation of 7 costs. Apart from these specific reasons for delay, there was general poor performance by TWAD's management in the initial years in issuing invitations to bid, and by TWAD and GOTN in the approval and award of contracts.
20. Institutional Development: Attempts to strengthen TWAD as the main sector institution in the State had mixed results. Certainly, the organizational and management capacity of TWAD has improved. But its operations remain overly centralized. The Sector Plan Study has made a number of recommendations for change in TWAD's role in statewide sector planning and management, and has outlined needed organizational changes. GOTN is proceeding to implement the findings of the study.
D. Project Sustainability
21. The project's sustainability has been rated as likely. As far as the physical water supply sources selected for the project are concerned, all are dependable and sustainable. Sustainability of O&M will depend on many factors such as: timely increases in tariffs and improved collection efficiency by the local bodies to improve revenues; timely debt servicing and payment of proportionate O&M expenses to TWAD; and, improved distribution system management and reductions in unaccounted for water. The GOTN needs to closely monitor these factors and ensure that local bodies generate and provide required resources.
E. Bank Performance
22. The Bank's performance in identification, was generally satisfactory. There were shortcomings in preparation and appraisal. As the subsequent events demonstrated, prior to appraisal the Bank should have insisted on completion of detailed field surveys and investigations and preparation of final designs for a large proportion of the works, and for all works on the critical path and environmental clearances. Implementation schedules were not realistic.
23. The frequency of, and resources devoted to initial supervision missions was inadequate. As a result, these missions could not fully grasp the extent of the mounting problems and the delays that would occur, nor take the necessary steps, in agreement with the borrower, to reduce these problems. Later, supervision missions were more effective in timely identification of visible and anticipated delays and provided support to the Government and implementing agencies in resolving issues. Introduction of monthly telexes and summary progress reports to the Bank's headquarters also helped in continuous progress monitoring.
F. Borrower Performance
24. TWAD prepared all the projects in-house. Preparation was to the level of preliminary design. Other aspects of preparation which did not receive adequate attention were: (i) timely environmental clearance from GOI; (ii) in-depth assessment of field conditions for pipeline alignments, and selection of the headworks site at Coimbatore, resulting in major design changes 8 and cost overruns later on; (iii) acceptance by TWAD of Bank procurement procedures, causing delays; and, (iv) participation of the local bodies and beneficiaries of the project towns and rural habitations. Despite these problems, all schemes are reported to be working well. TWAD introduced, under the project, computerized project monitoring. TWAD also introduced computerized financial accounting.
25. There were avoidable delays in: (i) taking decisions on bid awards for certain vital works; (ii) scheduling and planning of implementation of various components; (iii) employment of consultants for the sector plan study; and, (iv) implementation of consultants' recommendations on organizational management improvements. However, tariff increases envisaged to be implemented on commissioning of schemes were actually introduced ahead of completion of works, which increased the resource mobilization of three large cities.
26. The borrower complied with all covenants, sometimes after initial delays, except in taking suitable measures to control the exploitation of groundwater. Though the GOTN was agreeable to passing a Water Legislation Act, it was awaiting more field data that will be generated through the Tamil Nadu Water Resources Consolidation Project. The GOTN's counterpart funding was consistently adequate and funds releases were always timely. This is with the backdrop of poor experience in the other Bank assisted projects in the sector elsewhere in India. The Borrower provided to the Bank timely monthly and quarterly progress reports to agreed formats, illustrated with photographs. However, initiation of various studies included in the project was delayed by about 1-2 years.
G. Assessment of Outcome
27. Satisfactory: the project achieved most of its major objectives, but with delays, and major schemes are working well. The project is expected to achieve satisfactory and sustainable development results with only a few shortcomings.
H. Future Operations
28. As per the Project Agreement, TWAD will be responsible for O&M of all the regional piped water schemes (existing as well as new). The systems constructed for Coimbatore and Salem are complex, involving long lines of transmission mains, treatment plants and pumping systems, and will pose a particular challenge to TWAD. TWAD have committed to employ trained engineers and skilled operators for this purpose, acquire and install appropriate bulk meters and flow control devices and maintain proper water accounts for charging to local bodies.
29. There is particular need to train the municipal engineers in proper management of local distribution systems and minimizing unaccounted for water. TWAD will assist the three municipal corporations by providing relevant training and carry out leak detection. TWAD will set up/strengthen the water laboratories for continuous monitoring of water quality both in-plant and at the users' end. Additional qualified staff need to be appointed and maintained in these laboratories. TWAD should also consider operations which could be privatized to achieve 9 efficiency and economy. For example, O&M of pumping stations, water treatment plants and billing and revenue collections would be candidates for contracting out.
30. The GOTN will need to ensure that local bodies pay full O&M expenses to TWAD in addition to agreed debt servicing. Agreement has been reached with the GOTN that any shortfall in the resources required by TWAD for O&M will be met from the GOTN budget.
31. Detailed performance indicators have been identified for monitoring and evaluating the project's performance in the last supervision report. The GOTN/TWAD have proceeded to set up and maintain a monitoring system for this purpose. The Bank will continue to be involved in the sector in Tamil Nadu State through support for the Second Madras Water Supply and Tamil Nadu Water Resources Consolidation Projects, and possibly a Third Madras Water Supply and Environmental Sanitation Project, which is under preparation. Improvement in the performance of TWAD's project-related activities over the project period has permitted the Bank to support the Second Madras Project (paragraph 8).
32. Because of the delay in the implementation of the project, and since the design horizon for Madurai and Coimbatore cities was 1996, GOTN is recommended to introduce follow-up projects for the expansion of water supply and sanitation facilities.
I. Key Lessons Learned
33. This project was insufficiently prepared at appraisal, and was too complex for the agency to implement in an efficient manner without greater external support in the early years. These deficiencies, of preparation and early implementation, account for much of the delay and cost overrun.
34. By appraisal there is a need to complete detailed site investigations and final engineering designs for a substantial proportion of the works, and for all works on the critical path.
35. Many of the delays could have been avoided with more expert and thorough planning. There is a need for the borrower and the Bank to agree on realistic implementation schedules, duly reflecting the likely procedural delays and technical and managerial limitations of the implementation agency.
36. In the planning of projects the Bank should ensure that extra support is given to executing agencies participating in Bank projects for the first time, particularly in the initial years of project implementation. A larger proportion of total Bank project supervision resources should be provided in the early years as part of this support.
37. Delegation of adequate powers from Government to operational staff in implementing agencies is essential for reducing delays and for timely completion of projects. Bank pressure, through the efforts of supervision missions, proved to be entirely inadequate in ensuring that such delegation took place. The Bank should normally seek the implementation of administrative 10 reforms which involve greater delegations to field and other operational staff at least prior to Credit effectiveness.
38. Likewise, environmental clearances should be obtained by negotiations, as is current Bank policy.
39. The Bank needs to be satisfied that key staff postings are made in a timely fashion, which could mean before effectiveness.
40. Rather than sit on the sidelines, the ultimate asset owners (local bodies, in this case) should play a central role in the control and supervision of the project from identification through to completion. This will encourage, inter alia, timely completion since they have a direct interest in the outcome. Additionally, they may more effectively take on their responsibilities as owners when systems are completed and handed over to them. They need to be strengthened and prepared in management capacity, public awareness, their repayment liabilities, cost recovery and other areas requiring technical assistance, from an early stage.
41. The implementing agency (TWAD) did not have adequate incentives, in the form of penalties or rewards, to perform according to the agreed programs of preparation and implementation.
42. The Bank needs to be prepared to rigorously enforce timely completion of dated covenants. For example, in this project leak detection was covenanted for completion in 1987 but was actually completed in 1994, and audit reports were submitted late, sometimes by some 2 years.
43. Delays in the execution of this project significantlyreduced its economic rate of return, from about 8% to about 5%, because of the joint effects of additional costs and deferred benefits.
44. Contract packaging requires special attention at the project planning stage. This project had too many small contracts.
45. Government rates for cost estimating purposes were found to be unreliable, tending to underestimate true costs.
46. It is sometimes argued by borrowers that tariffs cannot be raised until the project benefits actually start to flow. This project successfully demonstrated that delay before tariff reform for this reason need not be necessary. I1
PART II: STATISTICAL ANNEXES
Table 1: Summary of Assessments Table 2: Related Bank Loans/Credits Table 3: Project Timetable Table 4: Loan/Credit Disbursements: Cumulative Estimated and Actual Table 5: Key Indicators for Project Implementation Table 6: Key Indicators for Project Operation Table 7: Studies Included in Project Table 8A: Project Costs Table 8B: Project Financing Table 9: Economic Costs and Benefits Table 10: Status of Legal Covenants Table 11: Compliance with Operational Manual Statements Table 12: Bank Resources: Staff Inputs Table 13: Bank Resources: Missions
Table 1: Summary of Assessments
A. Achievement of Objectives Substantial Partial Neglgible Not Applicable Macro Policies W
Sector Policies W
Financial Objectives EDII
Institutional Development W I m
Physical Objectives FT]
Poverty Reduction FW
Gender Issues W
Other Social Objectives W LI
Environmental Objectives L La
Public Sector Management L L LI
Private Sector Development LI 12
Table 1. Summary of Assessments (continued)
B. Project Sustainability Likely Unlikely Uncertain
Highly C. Bank Performance Satisfactory Satisfactory Deficient
Identification ___1v_
Preparation Assistance W
Appraisal |
Supervision W (Later) (Earlier)
Highly D. Borrowers Performance Satisfactory Satisfactory Deficient
Preparation W Implementation W
Covenant compliance
Operation
Highly E. Assessment of Outcome Satisfactory Satisfactory Deficient z zIw 13
Table 2: Related Bank Loans/Credits
Loan / Credit Title Purpose Year of Status approval
Preceding Operations
1. Cr. 899 - IN Maharashtra Water Supply and Sewerage Project 1979 Complete
2. Cr. 1046 - IN Rajasthan Water Supply and Sewerage Project 1980 Complete
3. Cr. 1280 - IN Gujarat Water Supply and Sanitation Project 1983 Complete
Following Operations
1. Cr. 1622 - IN Kerala Water Supply and Sanitation Project 1985 Complete
2. Cr. 1750/Ln. 2769-IN Third Bombay Water Supply and Sewerage 1987 Ongoing Project
3. Ln. 2846 - IN Madras Water Supply and Sanitation Project 1987 Ongoing
4. Cr. 2115 - IN Hyderabad Water Supply and Sanitation Project 1990 Ongoing
5. Cr. 2234 - IN Maharashtra Rural Water Supply and 1991 Ongoing Environmental Sanitation Project
6. Cr. 2483 - IN Kamataka Rural Water Supply and 1993 Ongoing Environmental Sanitation Project
Table 3: Project Timetable
Date actual/ Steps in Project Cycle Date Planned | latest estimate Identification - 1/16/81 Preparation 08/81 12/14/81 Appraisal 01/27/83 01/27/83 Negotiations 02/22/84 02/22/84 Board presentation 03/29/84 03/29/84 Signing - 11/14/84 Effectiveness 02/22/85 02/22/85
Project Completion (original) 12/31/89 _
Credit Closing (original) 06/30/90 _ Appraisal for restructuring 04/24/90 04/24/90 Board presentation of restructured project 01/07/91 01/07/91 Signing of revised project 03/21/91 03/21/91 Project Completion (revised) 06/30/92 06/30/94 Credit Closing (revised) 10/30/92 12/31/94 14
Table 4: Credit/Special Fund Disbursements: Cumulated Estimate and Actual (SDR ndllions) Effective Date: 02/22/85
FY 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Appraisal Estimate: IDA Credit 1.93 8.95 16.92 25.77 33.85 35.3 Special Fund 1.94 8.94 16.92 25.77 33.85 35.3 Total: 3.87 17.89 33.84 51.54 67.70 70.6 70.6 70.6. 70.6 70.6 70.6
Actual: IDA Credit 0.53 0.53 5.19 10.10 15.38 18.28 20.27 20.91 21.59 27.68 35.3 Special Fund 0.00 0.00 0.00 0.00 0.00 2.66 10.84 16.00 28.31 33.36 35.3 Total: 0.53 0.53 5.19 10.10 15.38 20.94 31.11 36.91 49.90 61.04 70.6
Actual as Percentage 13.70 2.96 15.33 19.60 22.71 29.66 44.07 52.28 70.68 86.60 100.0 of Estimate:
Date of final disbursement: March 1, 1995
PERCENTDISBURSED Actual vs. Estimated 120
408- 8---89,90------921 -----
r98519861 98719881989199019911991199219931 99419 95 15
Table 5: Key Indicators for Project Implementation
I. Key Implementation Indicators Estimated Actual (from SAR)
1. Urban Population (1996)- 3 Cities 2.4 million 2.8 million 2. Rural / Town Population (1996) 1.3 million 3.0 Million 3. Rural Town Communities (1996) 44 communities 50 communities
11.Modified Indicators (following Restructuring)
1. Urban Population (1996) - 3 Cities 2.8 million 2.8 million 2. Rural / Town Population (1996) 3.0 Million 3.0 Million 3. Rural Town Communities (1996) 50 communities 50 communities
III. Other Indicators
1. Studies Completed 10 11
Table 6: Key Indicators for Project Operation
I. Key Operating Indicators Estimated Actual (from SAR)
1. Water Service Connections 90 lcd 90 lcd 2. Standposts 30 lcd 25 - 40 lcd 3. Unaccounted for Water 25 - 30% 30%
11.Modified Indicators (following Restructuring)
1. Water Service Connections 90 lcd 90 lcd 2. Standposts 25 - 40 lcd 25 - 40 lcd 3. Unaccounted for Water 30% Not known
III. Other Indicators
1. Training (manweeks) 2000/annum 1000/ annum
3Additional study included during restructuring. 16
Table 7: Studies Included in Project
Purpose as defined Study at appraisal Status Impact of study
1. Socio-Economic study for Project Completed Provided basis for project towns preparation project appraisal
2. Financial projections for TWAD Board Ditto Ditto Ditto
3. Financial projections for project cities; and accounting systems Ditto Ditto Ditto
4. Resource mobilization For cities of Salem Recommendations studies Madurai & Ditto partially implemented Coimbatore
5. Financial accounting; Improve Audit reports now materials management and management Ditto prepared in a timely project monitoring systems manner for TWAD
6. Review of TWAD's administrative systems, new Ditto Ditto Recommendations MIS, personnel practices partially implemented and performance budgeting
7. Introduction of stepped Improve revenues Ditto Coimbatore is about to tariff in major cities implement stepped tariffs
8. Reduction and control of Reduce wastage. Ditto Implementation slow unaccounted-for water Improve revenues
9. Water Resource Improve water Implementation by the Management Study conservation Ditto TN Water Resources Consolidation Project
10. Training Needs Study Prepare training plan Ditto Training centers under construction
11. Sector Plan Study Improve sector Nearing completion Institutional reform program 17
TABLE 8A - PROJECT COST ESTIMATE (Rs. million)
Group Details As per SAR Revised in 1990 Actual I Coimbatore Area Civil Works 138.00 241.70 408.40 Materials & Equipment 144.90 261.06 331.10 Sub Total 282.90 502.76 739.50
11 Madurai Area Civil Works 75.60 83.15 217.90 Materials & Equipment 114.80 126.27 176.60 Sub Total 190.40 209.42 394.50
IIl Salem Area Civil Works 90.70 104.72 228.40 Materials& Equipment 137.80 159.10 207.90 Sub Total 228.50 263.82 436.30
IV 44 Small/ Medium Towns Civil Works 52.60 61.96 95.80 Materials & Equipment 86.80 102.25 116.20 Sub Total 139.40 164.21 212.00
V Low Cost Sanitation Civil Works 34.70 34.70 62.20 Materials & Equipment 3.70 3.70 0.00 Sub Total 38.40 38.40 62.20
VI Training 5.70 5.70 2.50 Consultancy 26.30 26.30 28.50 Equipment 3.00 35.00 36.70 Sub Total 35.00 35.00 36.70
Revolving Fund 10.00 10.00 10.00 6 Additional Towns 0.00 564.90 810.90 Coimbatore Rural 0.00 131.95 172.40 Salem Rural 0.00 43.77 42.00 LCS Phase-ll 0.00 35.56 27.40 Computers & Machinery 0.00 98.55 109.50 WRMS 0.00 10.00 10.00 Training 0.00 12.50 12.50 Sector Plan Study 0.00 10.00 10.00 Land Acquisition 20.20 24.31 12.30 Duties & Taxes 67.20 123.36 75.60 Sub Total 1012.00 2278.51 3173.80 Contingencies: Physical 67.10 150.70 0.00 Price 180.80 290.32 0.00 Sub Total 20.20 24.31 12.30 Engineering Cost 233.90 499.15 510.40
Total Project Cost 1493.80 3218.68 3684.20 18
TABLE 8B - PROJECT FINANCING
Source Appraisal Estimate Actual
Rs. US$ SDR Rs. US$ SDR (. Million.....
IDA 1454-IN 355.7 36.5 35.3 1046.3 48.1 35.3 (24%) (24%) (24%) (28%) (28%) (28%)
SF 12 IN 355.7 36.5 35.3 1196.4 48.8 35.3 (24%) (24%) (24%) (32%) (29%) (28%)
GTN's Contribution 782.7 80.3 77.7 1441.5 74.2 50.5 (52%) (52%) (52%) (39%)# (43%) (44%)
Total Project Cost 1494.1 153.3 148.3 3684.2 171.0 98.8 (100%) (100%) (100%) (100%) (100%) (100%)
GTN's contribution was lower than the appraisal estimate due, to a large extent, to the increases in disbursement percentages introduced during the restructuring of the project in 1991. 19
Table 9
Economic Costs and Benefits Coimbatore. Salem, Madurai and Satellite Towns
The economic analysis in Annex 24 of the SAR estimated an Economic Rate of Return (ERR) of just under 8% on the assumption that capital works would be completed by FY 1989 and with flows of operating costs and benefits, represented by operating revenues, to the year FY 2011/12. The ERR has been recalculated by TWAD with the new project completion date of December 31, 1994 using actual capital costs and with revised assumptions on incremental water sales and operating revenues. The recalculated ERR is just under 5%. Data were as follows:
SAR Estimates Actual
Incremental Capital Incremental Incremental Incremental Capital Incremental Incremental Year water sold Expenditure Operating Operating water sold Expenditure Operating Operating (mid) (Rs million) Revenue Expenditure (mid) (Rs. million) Expenditure Revenue (Rs. million) (Rs. million) (Rs.million) (Rs. million) 1984/85 - 81.4 1985/86 - 242.3 0.70 1986/87 - 326.8 7.70 1987/88 - 282.8 136.60 1988/89 117.4 160.6 56.7 13.5 105.00 1989/90 133.4 120.6 26.3 109.30 1990/91 147.7 133.5 27.1 230.00 1991/92 149.4 138.5 28.5 276.00 1992/93 152.0 138.6 28.8 349.70 1993/94 154.9 140.1 28.9 240.90 1994/95 157.8 140.7 30.2 117.40 372.30 21.60 167.64 1995/96 157.8 140.7 30.2 133.40 77.00 213.44 1996/97 157.8 140.7 30.2 147.70 161.70 236.32 1997/98 157.8 140.7 30.2 149.40 93.12 239.04 1998/99 157.8 140.7 30.2 152.00 102.43 243.20 1999/00 157.8 140.7 30.2 154.90 112.67 247.64 2000/01 157.8 140.7 30.2 157.60 112.67 252.46 2001/02 157.8 140.7 30.2 157.60 112.67 252.46 2002/03 157.8 140.7 30.2 157.60 112.67 252.46 2003/04 157.8 140.7 30.2 157.60 112.67 252.46 2004/05 157.8 140.7 30.2 157.60 112.67 252.46 2005/06 157.8 140.7 30.2 157.60 112.67 252.46 2006/07 157.8 140.7 30.2 157.60 112.67 252.46 2007/08 157.8 140.7 30.2 157.60 112.67 252.46 2008/09 157.8 140.7 30.2 157.60 112.67 252.46 2009/10 157.8 140.7 30.2 157.60 112.67 252.46 2010/11 157.8 140.7 30.2 157.60 112.67 252.46 2011/12 157.8 140.7 30.2 157.60 112.67 252.46 2012/18# 0 0 0 157.60 112.67 252.46
# Annual quantities for the six year period 2012/13 to 2017/18. 20
Table 10: Status of Legal Covenants
Original Revised Covenant Present fulfillment fulfillment Descriptionof Agreement Section type status date date Covenant Comments Tamil Nadu 2.01 (a) 5 C GTN to cause TWAD to Very slow Agreement implement the project implementation components of procurement 2.01 (b) 3 C - - GTN to provide loan to TWAD of $73 million rupeeequivalent 2-05 6 CD 01/01/87 08/01/88 GTN to employ experts Study completed to carry out a Water July 1989 ResourcesManagement l______Study 2.06 2 CD 04/01/85 03/01/86 GTN to employ Study completed consultantsfor Financial March 1988 ResourceMobilization Study 2.07 5 C GTN to causeTWAD to O&M water production and transmissionin the larger cities and for two I______I years in small towns 2.08 6 NC GTN to make besteffort Being to introducesuitable undertakenby measuresto monitor and the TN Water control groundwater Resources exploitation Consolidation l______Project 2.09 1 CD 04/01/85 GTN to causethe three Separate large cities to separate accounts water supply and establishedin l______sanitationaccounts April 1986 2.10 6 CD 12/31/84 GTN to causesmall Bylaws town to passbylaws to approvedby regulateLCS latrine November 1985 constructionto prevent pollution of the ground l______Iwater supply 2.11 2 C GTN to causeMadurai Bylawspassed to passbylaws for April 1985 l______meteringwater services 3. 01(a) I CD GTN to causeproject Appropriate cities to maintain accounts now l______appropriateaccounts maintained 3.01(b) I CD 12/31/90 GTN to causeproject After initial cities to audit their delaysfull accountsand financial compliancein statementseach fiscal later years year 3.02(a)(i) 2 CD GTN to causeproject Delayedto cities to set water tariffs FY 1995 and taxesby FY 90 to cover O&M costsand debt service 3.02(a)(ii) 2 CD 04/01/89 GIN to cause44 project Bylaws towns beginning 1990to approved implementwater tariffs to cover O&M costs and to the maximum extent I______possibledebt service . ~ =. _ .a 21
Table 10: Status of Legal Covenants (continued)
Original Revised Covenant Present fulfillment fulfillment Descriptionof Agreement Section type status date date Covenant Comments GTN to cover in project Budgetary 3.02 (b) II C towns any shortfall of provisions funds to cover O&M madein each costsand debt servicein fiscal year I eachfiscal year 3.03 2 C 04/01/85 GTN to causeproject Interim Tariff cities to make interim increasemade tariff increases in 1985 Project 2.01 5 C TWAD to carry out In compliance Agreement project accordingto Schedule2 of DCA and l______Scheduleof SFCA 2.02 (a) 5 CD 12/31/84 TWAD to estahlishand After slow a projectteam start now in compliance 2.02 (b) 5 CD 12/31/84 TWAD to appointan Engineering EngineeringDirector, Director's FinanceDirector Chief position Accountantand Chief currently Auditor vacant 2.04 5 CD 06/30/85 TWAD to makea study Study results of training needsfor the to be I Sector implemented 2.10 10 C TWAD to constructlow IDA's cost sanitationunits to specifications IDA agreed followed l______specifications 4.01 (a) I C TWAD to maintain In compliance accountsadequate to after early reflect its operationsand delays financial conditions 4.01 (b) I CD TWAD to sendaudit Ditto reportsno later than 9 monthsafter the end of each fiscal year
Full Text of General Covenant Classification
Covenant Class: Status:
1. Accounts/Audit C - Complied with 2. Financial performance/generate revenue from beneficiaries CD - Compliance after Delay 3. Flow and utilization of Project funds NC - Not Complied with 4. Counterpart funding SOON - Compliance Expected in 5. Management aspects of the Project or of its executing agency Reasonably Short Time 6. Environmental covenants CP - Complied with Partially 7. Involuntary resettlement NYD - Not Yet Due 8. Indigenous people 9. Monitoring, review and reporting 10. Implementation 11. Sectoral or cross-sectoral budgetary or other resource allocation 12. Sectoralor cross-sectoralregulatory/institutional action 13. Other 22
Table 11: Compliance with Operational Manual Statements
Statement number and title Comment on lack of compliance OP 4.07 Water Resources Management Water Resources Legislation prepared July 1993 under the project awaiting Government enactment, on a "best effort" basis.. 23
Table 12: Bank Resources: Staff Inputs4
Stage of Planned Revised Actual project cycle Weeks US$ Weeks US$ Weeks US$
ThroughAppraisal n/a n/a n/a n/a 47.6 122,500
Appraisal- Board n/a n/a n/a n/a 25.1 64,100
Board - Effectiveness n/a n/a n/a n/a 9.2 24,100
Supervision n/a n/a n/a n/a 112.3 310,700
Completion n/a n/a 10.0 23,800 0 0
TOTAL n/a n/a 10.0 23,800 194.2 521,400
4 Informationnot availablein the MIS to completethis table is indicatedn/a 24
Table 13: Bank Resources: Missions
Performance Rating Stage of Month/ Number Days Specialized Implementation Development Types of Project Year of in staff skills status impact problems Cycle Persons Field represented Through 5/79 to 5 133 Sanitary Satisfactory Satisfactory TWAD, a appraisal 2/82; 21 Engineers: new months Financial borrower Analysts: took time to Loan understand l______Officer procedures Appraisal 2/7/83 to 3 59 Sanitary Normal for the Borrower Resistance to through 3/29/84 Engineer: sector prepared the foreign Board 13 Financial project consultants approval months Analyst WRM study Training approval by l______Specialist GOI Board 3/29/84 2 30 Sanitary GOI needed Delayed Procurement approval to Engineer, time to approve project start delays through 2/22/85 Financial the Special Fund up effectiveness 11 Analyst Credit months Supervision 8/84 to 2 237 -ditto- Physical works Expected to Institutional 11/94 completed be positive and management Completion Draft ICR prepared during last supervision mission in 11/94 25
MISSIONDETAILS
Stage of Month/ Total days Specialized staff Total man- Implementing Project Cycle Year in field skills represented days Issues and Types of Problems Pre- 5/29/79 21 m/d Engineer 30 m/d identification to 6/79 estd 2 financial analysts Mission (FA) Preparation 7/22/79 7 m/d Engineer 14 m/d Mission to ? estd FA Identification 9/13/80 7 m/d Engineer 14 m/d Mission I to ? estd FA Preappraisal 2/20 to 21 m/d Engineer 28 m/d Mission 2 2/18/81 FA Preappraisal 10/29 to 12 m/d Loan Officer 12 m/d Mission 3 11/10/81 Preappraisal 12/14/81 21 m/d Engineer 21 m/d Mission 4 to ? FA Preappraisal 2/11 to 14 m/d Engineer 14 m/d Mission 5 2/18/82 FA
TOTAL MANDAYS TO APPRAISAL 133
Appraisal through Board approval on 3/29/84
Appraisal 2/7 to 48 m/d Engineer 48 m/d Water Resources Mission I 2/18/83 FA Study & Tariffs Appraisal 2/8 to 9 m/d Training 9 m/d NDO loan Mission 2 2/16/83 Specialist officer - 2 days
TOTAL MANDAYS FOR APPRAISAL THROUGH BOARD APPROVAL 59
Board Approval through Effectiveness on 2/22/85
Supervision 8/26 to 30 m/d Engineer 30 m/d Credit not yet mission 1 9/6/84 FA effective on 9/6/84 Delay caused by GOI wanting time to study the new Special Fund Credit arrangements TOTAL MANDAYS FOR BOARD APPROVAL THROUGH EFFECTIVENESS 30 26
Supervision Missions (cont'd.)
Supervision 3/27 to 20 m/d Engineer 20 m/d Very slow start Mission 2 4/5/85 FA Training Spn. 4/29 to 5 m/d Training 5 m/d Prepare training Mission 3 5/2/85 Specialist plan Supervision 11/17 to 22 m/d Engineer 22 m/d Some Mission 4 11/28/85 FA improvement Supervision 7/1 to 28 m/d Engineer 50% for Project 6 month delay in Mission 5 7/24/86 FA 14 m/d mobilization 7/1 to n/a Dep. Div Chief n/a Audits and SOE No BTO in file 7/24/86 procedures to be implemented Supervision/ 7/14 to 6 m/d Sanitation 2/3 for Project LCS mission 6 7/16/86 specialists 4 m/d Supervision 7/1 to 17 m/d Engineer 17 mld Major design Mission 7 7/17/87 changes made Supervision 3/9 to 8 m/d Engineer 8 m/d Procurement Mission 8 3/16/88 problems Supervision 11/12 to 2 m/d Engineer 2 m/d WRM Study Mission 9 11/13/87 tripartite meeting Supervision 3/9 to 9 m/d Engineer 9 m/d OAP and impl. Mission 10 3/16/88 _ sched. revised Supervision 7/7 to 20 m/d Engineer 50% for Project Slow Mission 11 7/17/88 FA 10 m/d procurement Supervision 12/2 to 2 m/d Water Resources 2 m/d Approved report Mission 12 12/3/88 specialist Supervision r 11/29 to 5 m/d Engineer 5 m/d WRMS meeting Mission 13 12/3/88 Review 4/12 to 9 m/d FA 9 m/d Mission 14 4/21/89 Supervision 7/16 to 28 m/d Engineer 50% for Project Procurement Mission 15 8/3/89 FA 14 m/d issues dominate Supervision 10/18 to 8 m/d Engineer 50% for Project Mission 16 10/21/89 FA 4 m/d Supervision 4/19 to 12 m/d Engineer 50% for Project Review of Mission 17 4/24/90 FA 6 m/d proposed restructuring Procurement 5/2/90 1 m/d Proc. Specialist I m/d Mission 18 Supervision 5/10 to 36 m/d 2 Engineers 50% for Project Restructuring Mission 19 5/22/90 FA 18 m/d appraisal mission 27
Supervision Missions (cont'd)
Supervision 11/1-3 6 m/d Engineer 6 m/d Engineering Mission 20 11/21-24 review! detailed 1990 designs. Restructured Project Limited 1/17 to 5 m/d Engineer 3/5 of Project Supervision 3/20/91 FA 3 m/d Mission 21 l Supervision 1/28 to 3 m/d Engineer 3 m/d Pioneer issue Mission 22 2/1/92 starts Limited 2/12/92 6 m/d Engineer 6m/d Supervision FA Mission 23 l Supervision 5/5 to 9 m/d Engineer 9 m/d Pioneer issue Mission 24 5/13/93 l Supervision 11/4 to 5 m/d Engineer 5 m/d Pioneer issue Mission 25 11/8/93 Supervision 2/10 to 10 m/d Engineer 10 m/d New contractors Mission 26 2/20/94 producing results Supervision 11/6 to 25 m/d 2 Engineers 25 m/d Project expected Mission 27 11/23/94 to be completed l ______byclosing date TOTAL MANDAYS FOR SUPERVISION (post Effectiveness) 237
5Prepared draft ICR in the field 28
Appendix A Completion Mission's Aide-Memoire
TAM[L NADU WATER SUPPLY AND SANITATION PROJECT CREDIT IDA 1454/SF 12 IN
AIDE MEMOIRE November 6-22, 1994 Full Supervision Mission
Introduction
1. An IDA mission comprising Messrs. A. Saravanapavan,(Consultant/Sanitary Engineer) and G. V. Abhyankar, (SA2ND) visited Tamil Nadu (TN) from November 6-23, 1994 to carry out a full supervision of the above captioned project, under implementationby the Tamil Water Supply and Drainage Board (TWAD). The closing date for the project is December 31, 1994. The mission made a progress review of physical comp]etionin the past nine months' and discussed the completion of the Sector Plan Study (SPS), discussed the preparation of the Implementation Completion Report (ICR) by March 1995 and prepared an outline of the ICR for action by TWAD. The mission met with senior officialsof the Government of Tamil Nadu (GTN) and contractors, and agreed detailed action plans for ensuring the positive physical completion of the project by the closing date.
Wrap up Meeting
2. The wrap up meeting, held on November 22, 1994 chaired by Mr. Gowri Shankar, Secretary to the GTN, in charge of the Finance Department and TWAD's Managing Director (MD), Mr. Karpoorasundarapandian discussed the main issue of completing the project by the closing date. It was agreed that TWAD's Chief Engineers and their staff would make all out efforts to complete all pipeline works, which are in an advanced state of construction, but on the critical path to project completion. The missionstated that TWAD's Chief Engineers had agreed on specific targets with the pipeline contractors and these would be firmly adhered to. TWAD's Finance Director would expedite processing of upcoming payments and immediatelyclear the remainingbacklog of payments due to the contractor. The Chief Engineers and TWAD's Board would similarlyprocess payments, for long completed extra works in hard rock excavation, to be approved at the next meeting of the Board of Directors, and the Finance Director would ensure that all progress payments on all completed works are made expeditiously. Other less critical, but important agreements reached are summarizedin para.24. On November 23, final discussions took place regarding the completion of the Sector Plan Study.
Recommendations
3. The mission wishes to place on record the courtesies extended over the past six years to Bank missions and the ready cooperation at all levels of TWAD staff in dealing with complex contractual problems during project implementation.TWAD's MD and the two Chief Engineers and project staffhave worked very hard and are to be congratulated for having overcome many
The last supervision mission was in February 1994. 29
hurdles in bringing the project to the present advanced stage of completion. About six weeks remained to the closing date at the time of the mission's visit and based on the speed with which TWAD and the contractor have responded to the mission's advice, the mission is cautiously optimistic that TWAD and the contractors will rise to the challenge and complete physical works by December 31, 1994, and the Sector Plan Study by February 28, 1994, provided that:
(a) extraordinary efforts are taken by all concemed in the TWAD team and the IHP contractor maintains the momentum generated by the mission;
(b) the Finance Director does not delay scheduled payments to the contractor for completed works; and
(c) the Managing Director nominates a Chief Engineer, or staff of equal level, to take charge of completing the Sector Plan Study by February 28, 1995.
In addition, for the sake of the sustained development of the project and the water supply sector, TWAD should:
(d) pivatize metering, billing and collection in Salem and Madurai;
(e) send the final draft of the Sector Plan Study report for Bank comment;
(f) seek GTN approval and budget for implementing the study;and
(g) following Bank, GTN (and Cabinet) approval of the study, implement the recommendations in the study, to an agreed time table starting with institutional reforms.
Summary of Progress Review
4. There has been reasonable progress in the works, since the February 1994 rnission, by the IHP pipe laying contracts for Coimbatore and Madurai. However another contractor at Coimbatore, Messrs. Bhovaratnam, had completed his work ahead of time. The [HP contractor, in addition to some unforeseen past delays caused by exceptionally bad weather, had encountered three problem areas at Coimbatore that are now being given special attention. Rock excavation problems in four reaches, on the Madurai pipe line have been resolved and [HP is confident that all of the pipeline works would be completed on time to enable commissioning of the Madurai and Coimbatore water treatment plants by the closing date. These pipe line works which had been progressing at a pace below that agreed in February 1994, have picked up considerably in the ten days after the mission's arrival and supports the prediction of timely completion. All studies have been completed except for the Sector Plan Study. The passing of the Water Resources Legislation which is a project covenant has been overtaken by the requirements in the Bank's Water Resources Consolidation Project which was appraised recently. TWAD is otherwise in compliance with all covenants. (Detailed program review at Annex 1.) 30
5. The Sector Plan Study team after a slow start, is expected to rpoduce the first draft report in February 1995. Foreign consultant selection has been finalized. The mission presided at a well attended public workshop in Trichimopoly. GTN's Finance Secretary had approached the Bank regarding a delay in the study and the Bank has confirmed that it would process disbursements on consulting contracts signed prior to December 31, 1994 up to April 30, 1995.
Payments to Contractor
6. During the site visit, the IHP representative requested that the backlog of payments of about Rs. 1.5 crores for completed works be released immediately. [HP indicated that this would greatly assist them in meeting the agreed target dates for completing the Madurai and Coimbatore pipeline construction. Following a meeting with the mission at TWAD office, it was agreed with TWAD's Finance Director that the payments due to IHP for Pudukkottai and Salem would be paid within a week. In fact, the payment was made within two days and there was an immediate spurt in construction reported on the Madurai works. -
Retention Money Payments During Warranty Period
7. TWAD's was considering three options for payment of retention monies to contractors. The MD requested that the matter awaints the decision of the Board of Directors before Bank approval was sought. The matter has since been resolved.
TWAD's Performance
8. From the inception of the Project (for the past nine years), eleven Managing Directors, three Chief Engineers at Coimbatore, two Chief Engineers at Trichinopoly (after restructuring in 1990), several teams of engineers and other staff at various project units have greatly contributed to its successful implementation. Most of the skilled and trained junior staff would be laid off in April 1995. Start up of this first TWAD project financed under foreign aid was slow but progress picked up gradually with the encouragement and guidance of Bank supervision/procurement missions. This mission is pleased to place on record the ready assistance and willing cooperation rendered by the project teams to the several supervision missions that visited Tamil Nadu during the course of the implementation of the project.
Tariff Increases, Collection Performance and Privatization
9. All the three major towns have implemented the required tariff increases during 1992-93. Coimbatore has introduced, beginning October 1, 1994, the stepped tariff structure recommended by the consultants, representing an increase of 25% over the existing tariff. Madurai and Salem are expected to follow suit. Except for Madurai, collection performance has shown steady improvement. In Coimbatore current collections have increased from 51% (FY89) to 75% (FY94) and the collection of arrears has increased from 23% to 44% respectively. Current collection increases at Madurai is 29% (FY90) to 52% (FY94). However the arrears collection figures has a low performance with an increase of only 26% to 27%. In Salem the current collection figures are 31
66% (FY89) and 82% (FY94) and the arrears collection figures are 18% and 29% respectively. The mission has recommended that TWAD create a privatization cell which would employ consultants to make proposals for the privatization of metering, billing and collection in Salem and Madurai. Details of meetings with Madurai, Coimbatore and Salem Municipal Corporations is at Annex 2.
Studies
10. Ten out of the eleven studies undertaken under the project have been satisfactorily completed and the findings implemented. The Sector Plan Study would be completed on February 28, 1995 (see Annex-5). The Water Resources Study was completed in 1992 but the draft legislation which it produced is with GTN and is now to be taken up under the Water Resources Consolidation Project. List of Studies is at Annex 3.
Tariff studies for large towns
11. M/s. Kirloskar Consultants have completed the stepped tariff studies satisfactorily in the three cities and also in one town panchayat. The mission recommends that the stepped tariff approach be extended selectively to some of the larger towns of Tamil Nadu. GTN through TWAD should monitor implementation of the recommendation of the consultant in Salem and Madurai and take all steps necessary to improve the financial performance of the sector.
Leak Detection Study
12. The study has been completed. The consultants have submitted their draft final report which is under review by TWAD and are expected to give comments by November 30, 1994; and the final report is expected to be ready before December 31, 1994. AWWA guidelines or their equivalent for distribution system management should be considered for implementation of the study report. TWAD has placed orders for the procurement of leak detection equipment, the supply of which would be completed before Dec. 31, 1994. Engineers from TWAD and local bodies (Madurai, Salem and Coimbatore) have been trained (20 in India and 5 abroad) in leak detection. TWAD should therefore fully staff its Leak Detection Teams and equip the three meter repair workshops immediately and have them operational by the time the equipment is received. Each meter repair workshop should be in the charge of a trained meter repair foreman. GTN should monitor the performance of the local bodies to ensure that they honor their commitments to TWAD, made in the respective Subsidiary Agreements with TWAD, to support the leak detection program under the project and make best use of the equipment and engineers trained in the reduction and control of Unaccounted for Water (UFW). The program should be based on Bank Guidelines and include district metering, and infill, extension and rehabilitation programs. Because of time constraints, further studies by the consultants (WAPCOS) for the implementation of the findings of their study on UFW and the extension of the consumer education program cannot be made within the Credit. 32-
TWAD's skill in Distribution System Analysis
13. During the review of the proposals for the extensions to Coimbatore water distribution system, the mission was pleased to find that TWAD is using the LOOP computer software developed by the Bank/UNDP for distribution system hydraulic network analysis. TWAD has young motivated trained engineers capable of analyzing the performance of existing and newly constructed distribution pipe networks against design parameters. One such printout for Tiruvannamalai town distribution system was shown to the mission. The field verification resulted in the location of several blocked pipes and closed valves which were replaced/repaired, resulting in improvements in pressures and water service. The mission recommnendedthe formation of a separate design team by TWAD for making designs and analyzing the performance of the distribution systems and transmission pipelines in the cities under the project to provide improved and economical piped water services.
Low Cost Sanitation (LCS) - Phase H (Restructured Project)
14. The February 1994 mission cleared the proposal for implementing of LCS program to 52 towns. In addition to these 52 towns, TWAD now wishes to include four more towns i.e. (I) Pirattiyur (ii) Manachanallur (iii) Inamkarur and (iv) Musiri which have come forward with an urgent request for LCS facilities. The cost of covering these four towns is expected to be within the provision of Rs.4.00 Crores (40 million Rupees) already approved by the Bank.
Sector Plan Study
15. The mission has requested that staff at the Chief Engineer level be appointed to be the counterpart to Dr. Gordon Tamm, the team leader for the study. The mission met with Mr. Asnani, the Solid Wastes consultant and found that he has an excellent agenda for his work/training program. TWAD had approved the engagement of M/\\s. Binnie Thames Water, United Kingdom for the Operation and Maintenance Training Consultancy (Foreign) and also the Human Resources - Development Training Consultancy (Foreign). The firm was requested to send these consultants on 6th November 1994 and offered to send them in the first week of December 1994. Meanwhile TWAD had alerted the second group of eligible consultants (a) Mr. B.J. Greenwood for Operation and Maintenance (b) Mr. A.A. Bird for Human Resources - Development Training Consultant from M/s. Water Training International, Hampshire, U.K. to be ready to come if needed. The mission approved the proposal. At the time of the mission's departure from Madras both these assignments had been satisfactorily finalized. Water Quality & Environmental Consultant - Mr. Venkataraman was offered this Consultancy as suggested by the previous mission. However, Mr. Venkataraman did not accept the offer. TWAD has instead selected NEERI - National Environrnental Engineering Research Institute, Nagpur. The mission had no objection to the change.
16. The mission participated in a televised SPS workshop arranged by TWAD in Trichinopoly as part of a public awareness campaign. The mission was impressed by the coverage and interest at the workshop and the public/media reaction. Because of the slow progress the rnission did not meet, as was usual in past missions, with the Minister for MAW&AS. The next mission should 33
take up with him and possibly the Chief Minister, as appropriate, plans for implementation of the study report after review by the Bank and GTN.
Audits
17. Salem Corporations is in compliance with the audit covenant. Coimbatore and Madurai are in arrears both in regard to General Fund audits and Water Supply and Drainage Accounts for 1993-94. The mission was informed that they are giving special attention to expediting the submission of these reports before December 31, 1994.
Compliance with Major Covenants
18. GTN and TWAD are in compliance with all of the covenants in the Credit and Project Agreements, with the exception of (i) the covenant on GTN passing Water Resources legislation based on the legal draft prepared by the Water Resources Study; and (ii) audit covenant. GTN had in principle agreed to the enactment of this comprehensive legislation and had included it in the Tamil Nadu Water Policy Report. GTN also desired a more extensive field study before taking up this major sensitive and legally complex exercise. At this point in time the legislation is understood to be included in the Water Resources Consolidation Project currently under appraisal by the Bank. Status of Covenants table is attached to Form 590.
Disbursement Performance
19. TWAD reports that they have utilized SDR 65.0 million of the total credit of SDR 70.6 million (about 92% of the total credit). The remaining credit would be disbursed before April 30, 1995 (disbursement claims closing date). TWAD has also requested for the reallocation of funds between categories based on the full utilization of the Credit. (Annex 4.)
Implementation Completion Report (ICR)
20. The mission explained the purpose of preparing the ICR to the MD and discussed various aspects that the ICR needed to cover, including the Borrower inputs. The MD assigned the Chief Engineer (CE) based in Coimbatore, the task of organizing this activity. During November 8-13, 1994 the ICR mission visited a few work sites including the head works of Manapparai and Pudukkottai schemes and the head works, treatment plant and transmission pipelines for the Coimbatore and Salem projects including Salem and Athur town areas and some rural habitations. The ICR mission had detailed discussions with the Municipal Commissioner of Athur municipality regarding his proposed operational plan, since the water supply to the town has been very recently commissioned. The mission also had useful discussions with the Chief Engineers and other staff of TWAD regarding the outcome of the project and lessons leamnt.
21. Consequently, the mission, with excellent support from the CE Coimbatore and his staff, and with additional support from the CE Trichinopoly, as needed, prepared an outline ICR to provide the basis for the final ICR. TWAD, represented by the CE Coimbatore, has agreed to prepare, by December 31, 1994, the following additional data required for the final ICR: 34
(a) TWAD's own evaluationreport (b) A plan for the operationalphase of the project; (c) Financialdata pertainingto the three large towns; (d) TWAD's financialdata per SARpage 84; (e) Updatedeconomic Analysis Data per Annex24 of SAR; (f) Financialdata for smalland mediumtowns per page 84 of SAR, to the extent possible; (g) TWAD staffingdata per SAR page 84; and (h) A table on key performanceindicators covering actualdata for the previous five years and projectionstill the year 2000 (per format developedby the misison).
22. The ICR is expectedto be completedduring the Bank's completionmission scheduled tentativelyin February/March1995 when the project would be completedand the Sector Plan Study would be ready for discussionwith GTN for the implementationof the agreed policies and institutionalreforms and lessons learnedduring projectimplementation.
23. The list of key officialsmet by the missionis at Annex 5.
Summary of Agreements reached with the Borrowe
24. TWAD would:
(a) completethe physicalcompnents by the closingdate of December, 1994;
(b) completethe SectorPlan Study Report by February 28, 1995 and send the first draft report to the Bank;
(c) - establisha cell and employa competentconsultant to prepare terms of reference for privatizingmetering, billing and collectionsin Salemand Madurai;and
(d) nominateofficially the Chief Engineer,Coimbatore for preparingthe Borrower's portion of the ICR and providethe additionalrequested inputs, for the ICR misisonin February/March1995. 35
Annex 1
Detailed Progress Review
I. TWAD has an extremelytight schedulefor the completionand commissioningof all sub projectsincluding water treatment plantsby the closingdate. The present status for the commissioningof sub-projectsis as listed below. AUof the smallerprojects have been commissioned.Of the major three projectsonly Madurai and Coimbatoreremain to be completed.
Prgiects alredy T.MainlFlMain Elevated commissioned Outy. in m1d. in S.R. (Nos.) 44 smalltowns 44 Kancheepuramn 16 39 5 Sankarankoil 7 180 46 Salem 13 267 99 Pollachi 14 14 10 Pukukkottai 22 133 13 Manapparai 8 125 46 Thiruvannamalai 14 27 4
Projects for start of commissioningbefore December 31. 1994
Qtv. in mJdd T.MainlF.Main Elevated in km S.R. (Ns.) Coimbatore 103 299 89 Madurai 68 76 16
2. After a close field review of all pipelayingcontracts and a meetingwith the principalsof IHP with the TWAD ManagingDirector, the missionis cautiouslyoptimistic that, provided TWADacts upon it's recommendations,the projectwould be commissionedbetween December 17 and 24, 1994 and completedby the closingdate, with the proceedsof the Credit filly disbursed.The followingparagraphs describe the actions beingtaken for all itemsof work in the criticalpath to project completion.
MaduraiTransrnission Main
3. Unusuallyheavy and extensivemonsoon rains and the encounteringof very hard rock has caused unforeseen delaysin the raw water and clear water pipelineconstruction from keepingto the scheduleagreed with the February 94 mission. A revisedand very detailedwork breakdown scheduleto completethis work by December17, 1994 has been madeby TWAD. Both the IHP ManagingDirector and Chief Engineeragreed to the requirementson labor and equipmentneeds for completingvery difficultreaches (identifiedby the missionas A,B,C and D) and in the critical path. 36
Coimbatore Transmission Main
4. Here too there have been difficulties in keeping to the schedule agreed in February because of the heavy monsoon weather and more recently in three sections of pipeline excavation delayed by special circumstances as listed below:
(a) Problems with black cotton soils causing uplifting of pipes in one reach of about 0.5 km compounded by difficulties of access by soft earth to cranes and excavators. Following the mission's advice, the issue was resolved, while the mission was still in Coimbatore. The mission forecast that the work should be completed by November 24, 1994. It was actually completed on November 22, 1994.
(b) An overhead railway pipe bridge crossing which was expected to cause delay, was followed up by the mission and is now under construction - the piers have been completed and the pre-fabricated bridge is already at site. Erection is expected by November 26, 1994 and the pipes laid by December 3, 1994.
(c) A section of pipe located near a middle class settlement is damaging roof tiles during controlled blasting. An additional gang of 75 laborers have been engaged, on the mission's advice, to blast the reach where the rock is expected to have the greatest thickness. Two other gangs are also working on either side also blasting and laying pipe. Rock excavation is to be completed by Nov. 30, 1994 and pipe laying by December 3, 1994. The IHP representative has agreed to this schedule. Testing and closing of gaps would take up to December 17, 1994 and commissioning on December 22. 37
Annex 2
Details of meetings with Coimbatore, Salem and Madurai Municipal Corporations
Meeting with Madurai Corporation
1. The Mission met with Mr.B.Anand, Commissioner. Tariff increases proposed by M/s. Kirloskar Consultants were discussed. The proposed new tariffs (existing tariff within brackets) per kiloliter are: domestic Rs.2.15 (Rs.2.00), Commercial Rs.4.30 (Rs.4.00) and Industrial Rs.6.30 (Rs.6.00). The commissioner explained the difficulties faced during the last increase in 1992, when a section of the public went to the courts protesting the increase. The matter was settled out of court after prolonged negotiations with help from a Bank rmission. The mission emphasized the importance of cost recovery as an important development objective. Water distribution would be improved with the new distribution system extensions including 14 new distribution storage reservoirs that have been completed. Since operating the treatment plant and transmission main at the existing tariff would cause a loss, the mnissionadvised TWAD to await the tariff increase before any significant increase in present service levels. Full service would be provided when the new tariffs had been implemented. Meanwhile TWAD and the Corporation should launch a consumer education program. The mission noted that the collection performance continued to be very poor. (see para above on Tariff and Billing and Collection performance). This is attributed to the inadequate collection machinery. For an O&M budget of Rs.465.42 lakhs, there are only 10 bill collectors who are mostly employed in collecting the property tax. The mission suggested that metering, billing and collection be privatized. The MC agreed to study the proposal, since no one would be laid off.
Meeting with Coimbatore Corporation
2. The mission met with the Coimbatore Corporation Special Officer Mr. S. Gurumurthy and Commissioner Mr. C. Chandra Mouli. The following matters were discussed:
(a) The Commissioner requested that because of the increase in urban population, he had requested the next stage project be taken up by the Municipal Administration and Water Supply (MA&WS) Department immediately. Also since the present project did not include extensions to the distribution system the Corporation needs financing for these works. The revolving fund for metering, that had been approved by the Bank for purchasing pipes to a value of Rs.2. I crores could be immediately utilized by TWAD for this purpose. The total cost of the distribution system improvements is estimated to be Rs.2 1.00 crores. The World Bank's Municipal Urban Development Fund (WBMUDF) has indicated that it would be prepared to finance about Rs. 10.00 crores of work, provided a satisfactory technical justification including feasibility studies are given for their review. The WBMUDF would on reviewing the feasibility studies make needed suggestions for 38
the investmentof Rs. 10.00Crores. Includingthe Rs.2.1 crore worth of pipe purchasedin this projectthe Rs. 12.1 crore would cover a little more than one half of the required distributionworks. The remainingRs. 8.9 crore of works would have to be completedin a secondphase.
(b) Coimbatorehas implementeda higherstepped tariff for water supplybased on the recommendationof consultants. The collection,billing and managementof meteringare reported to be satisfactory.Non-paying customers are cut-off and are not reconnected,until their tum in line, which could take severalweeks. However this performancehas to be improvedfurther if the Corporationhas to support the new investmentsit is seekingfor the next stage of improvementin water supply.
Meetingwith SalemMunicipality.
3. The MunicipalCommissioner (MC) was not available.He was representedby Mr. Chandrasekaran,Municipal Engineer. He requested24 hours water supply to be providedby TWAD. At presentit is only 3 hours in the morningand 3 hours in the evening. Unaccountedfor water (LJFW)is about 30%. The Commissionerwas advisedby the missionto take action to reduce UFW to about 12% To do this correctlythey would need one experiencedforeign trainingconsultant to design the IUFWreduction and control programbased on the technical guidelinesof the Bank. Billingand collectionperformance in Salemis showingrecent signs of imnprovement(see para on Tariff and BillingPerformance). TWAD should also assist with experiencedconsultant services to design a programfor the privatizationof billing,collection and metering. The MunicipalEngineer agreed to conveythis adviceto the MunicipalCommissioner and start inimediateaction as recommended.The missiondiscussed problems related to the short life of galvanizediron (GI) pipe serviceconnections and recommendedswitching over to flexible high densitypolyethylene (HDPE) which could be laidbelow ground and under storm drains and has a longerlife than GI pipe. 39
Annex 3
Studies under the Project
The followingstudies were taken up underthe project. Of them all the studiesexcept Sector Plan Studyhave been completedby TVAD satisfactorilyand recommendationsimplemented. Sector Plan Study couldalso be expectedto be completedsatisfactorily if the small extensionof two monthssought for by TWAD is agreedto by the Bank. The detailsof study and their out come are
Study Outcome K.Socio-Economic and Tariff studyfor project The study formedbasis for projectpreparation towns and appraisaland reports includedin the _ projectappraisal file of the Bank 2. | Financialprojections for TWAD Board. d0. 3. Firncial projectionsfor the project citiesand The study reportswere includedin the project towns and accountingsystems for water supply appraisalfile of the Bank. and sanitationaccounts of the projectcities. 4. ResourceMobilisation Study for Coimbatore, Studycompleted and recommendations Madurai and Salem implemented. 5. FinancialAccounting, Project monitoring and Studycompleted. Computers functioning in MaterialManagement Systems for TWAD the projectoffices. Computerisedsystems Board wouldbe installedin rest of TWAD on receipt of orderedcomputers by December31, 1994. 6. Reviewof TWAD'sadministative systems, Studycompleted. Recommendations ManagernentInfonnation System, Personnel implemented and performancebudgeting 7. Introductionof SteppedTariff Structure in the Studycompleted. Coimbatorehas local bodiesof Tamilnadu implementedthe steppedtariff for its water tariff billing. 8. Studyon Unaccountedfor Water - Reduction Studycompleted. TWAD has plae orders and Control Program for Leak DetectionEquipments. Local Body and 1WAD Engineershave been traine in India and Abroad. 9. Water ResourceManagement Study - Phase I Studycompleted. Water legislationprepared & I by the studyis under considerationof GTN. GTN is awaitingadditional field detailsfrom the Water ResourcesConsolidation Project undernegotiation with Bank. 10. Studyon trainingneeds of TWAD Board Studycompleted. Separatetrauiing centre establishedwithin TWAD Board. I1 Sector Plan Study Selectionof consultantscompleted. Studyin progress. 40
Annex 4
Proposed Reallocation of Funds between Categories
Category Provisionin As restructure Actuals up to Future Total to be credit agt. Nov. 94 roquirement reallocated IDA 1454 IN 1. Equipmentsand Materials 13.73 10.00 11.50 0.80 12.30 2. CivilWorks 15.72 19.39 15.80 3.70 19.50 3. Training, Consultancy,etc. 3.48 5.30 2.30 1.20 3.50 4. Loan under Part G 0.97 0.61 0.61 -0.61' Nil
5. Unallocated 1.40 - - -
35.30 35.30 30.21 5.09 35.30 SF12 I I. Equipmentsand Materials 22.53 14.07 12.75 0.45 13.20
2. Civil Works 11.37 21.23 22.10 - 22.10
3. Unallocated 1.40 - - - - 35.30 35.30 34.85 0.45 35.30
* TWAD made disbursementsunder Part G of the Projoctfor providingmeters to house service connectionsin CoimbatoreCorporation (CC). Hence,the amount disbursedunder Category4 is now tamnsferredto Category1. At the requestof CC, which is already metered,the Bank approvedthe transfer of these funds for the purchaseof pipes to extendthe distributionnetwork. 41
Annex 5
List of Key Officials Met
At Madras
Mr. Gowri Shankar, LAS Secretary to GTN (in charge) Finance Department
Mr. Prithiviraj Langthasa,IAS Joint Secretary to GTN, MA&WS Dept.
Mr. R. Ekanathan Deputy Secretary to GTN,MA&WS Dept.
Mr. R.Karpoorasundarapandian Managing Director, TWAD Board
Mr. S. Subramanian Finance Director, TWAD Board
Mr. D. Sarna Rao General Manager, TWAD Board
Mr. E.V. Rengarajan Chief Audit Officer, TWAD Board
Mr. K. Narasimhalu Chief Engineer (Planning & Designs), TWAD Board
Mr.V.R.Vaidyanathan Chief Engineer, World Bank Project, Coimbatore
Mr. S.A.M. Mohideen Chief Engineer, World Bank Project, Trichy
Mr. Gordon Tamm Consultant, Sector Plan Study
At Madurai
Mr. Krishnasarny Rajeevan District Collector, Madurai
Mr. Anand Commissioner,Madurai Corporation
Mr. N. Basheer Ahaned Superintending Engineer, TWAD, World Bank Project Circle, Madurai
Mr. N. Sankiliraj Superintending Engineer, TWAD, World Bank Project Circle,Sankarankoil 42
At Tric Mr. D. Chakravarthy Superintending Engineer, TWAD World Bank Project Circle, Trichy
Mr. M. Lakshmana Piflai Superintending Engineer, TWAD, in charge of construction of Training Centre at Trichy
At Coimbatore
Mr. S. Gurumurthy Special Officer, Coimbatore Corporation
Mr. C. Chandra Mouli Commissioner, Coimbatore Corporation
Mr. K. Narayanasamy Superintending Engineer, TWAD, World Bank Project Circle-i,Coimbatore
Mr. K.P.Aiyappan Pillai Superintending Engineer, TWAD, World Bank Project Circle-2,Coimbatore
At Salem
Mr. Chandrasekaran Municipal Engineer, Salem Municipality
Mr. Syed Hyder Superintending Engineer, TWAD,World Bank Project Circle, Salem
At Kancheuram
Mr. Abraham Thomas Superintending Engineer, TWAD World Bank Project Circle, Kancheepuram
Mr. Sivaprakasam Executive Engineer, TWAD, World Bank Project Kancheepuram 43
Appendix B
IMPLEMENTATION COMBI^TION REPORT: INDIA TAMIL NADU WATER SUPPLY AND SANITATION PROJECT (Credit IDA 1454/SF 12 IN)
BORROWER'S EVALUATION
As a first time borrower from the Bank TWAD rates its own performance as good for the following reasons:
1. All the designed objectives of the project have been achieved.
2. Though this is a mammoth project of size taken up by TWAD for the first time, TWAD brought all the works taken up under the project to beneficial use before the project closing date.
3. TWAD achieved full utilization of the project funds.
4. TWAD improved its own functioning as a result of participation in the project.
5. TWAD helped other local bodies to improve their performance also as part of the project.
All the following project objectives have been achieved.
1. Improve water supply in larger urban areas and to provide safe water supply to certain smaller towns and rural areas which are currently without these facilities.
2. Provide proper low cost sanitation to selected urban communities to improve public health standards.
3. Assist GTN and TWAD in developing water resource management strategies aimed at achieving overall economies in providing drinking water.
4. Enable low income groups to connect to the systems or alternatively to provide adequate standpost facilities.
5. Strengthen TWAD's institutional, managerial and financial practices through training and technical assistance.
6. Assist urban local bodies to identify measures to improve their resource base for proper O&M investments.
At the time of appraisal the project formed 45% of GTN's Sectoral investment over the project implementation period. The project is unique for the following reasons. This was the first project which combined both water supply and sanitation. For the first time the financial capacity of the local body and 44
paying capacity of the beneficiaries were scientifically assessed through field survey and desk work done with assistance of consultants and the desired loan grant mix in each of the towns were assessed and adopted. The tunnels provided under the Coimbatore Project are likely to be the longest tunnel in India constructed exclusively for conveyance of drinking water. Detailed analysis in association with premier educational institutions were made regarding problems involved in high head and large dia long pumping mains and protective arrangements in the form of pressure vessels were provided under the Salem sub project for the first time in Tamilnadu. The project including water supply for a number of small and medium towns for which protected water supply was being proposed for the first time. The town deserving special mention in this regard is Gudalur in Nilgiris District. This is a town located in hilly and heavy rain fall area but starving for protected water supply. Against innumerable odds such as hilly terrain with steep gradients, cold weather, restricted number of working days the scheme was completed successfully and the public are at present enjoying the fruits of the project. Though low cost sanitation technique was under practice on a small experimental scale in the state of Tamilnadu, for the first time coverage of entire selected towns with this technique truly resulted in freeing of the scavengers from the inhumane practice of carrying night soil on their heads. The Coimbatore and Salem Water Supply systems are the largest water supply systems in Tamilnadu covering two cities, 33 small/medium towns and over 880 villages spread over a distance of hundreds of kilometers. They are also likely to be largest in the country.
All the water supply sub projects and low cost sanitation works taken up under the project have been commissioned before the project closing date of December 31, 1994 benefiting more than the targeted number of people. This was the biggest project taken up by TWAD and first project with World Bank assistance. As a first time borrower TWAD had initial hiccups but overcame them with the passage of time. The experience gained by TWAD can be judged by comparing the time taken for completion of the additional projects taken up while restructuring the project during 1990 (about 3 to 4 years) and the original projects conceived at the time of signing of project agreement in 1984 (about 5 to 10 years). One of the reasons for quicker execution of the additional projects was due to introduction of turn key job system in the bidding process and limited number of packages for sub project.
Tumr Key Jo: Introduction of Turn Key Job after restructuring has reduced the workload involved in procurement, storage and distribution of materials. The number of bid packages to be processed got reduced easing the pressure on accounting system to a considerable extent. The field staff were able to concentrate more on the quality of works instead of spending much time on arranging and accounting for materials and coordinating between material suppliers and civil work contractors. They were also freed from the burden of storage and security of materials. As full responsibility for completion of works was vested with single contractor, hold up due to delayed supply of materials by TWAD was averted and the contractor could pace his work at this own will and complete the works in time.
Monitoring of Works: With well timed supervision missions and regular close review and monitoring by the top management (MD/CE) the works could be speeded up. Funds made available in time by GTN helped in building up of confidence in the contractors minds. The management was able to assure prompt payment for the quality works completed on time. Specially in the final stage of the projects with the guidance of the supervision missions, TWAD was able to force the contractors to plan their works and complete them on time.
The fund flow for the project from GTN was never a constraint and TWAD achieved the distinction of full utilization of credit as a first time borrower. It is pertinent to note that full utilization have taken place despite over 400% appreciation in value of SDR against Indian Rupee from project appraisal to project completion. TWAD took full advantage of the above SDR value appreciation to its advantage and 45 completed more sub-projects within the project scope, thereby benefiting far more people than envisaged originally.
TWAD improved its own performance and practice during the currency of the project as envisaged at the time of project appraisal.
As a result of organizational studies taken up, TWAD at present have more full time directors responsible for engineering, financial and administrative functions and have decentralized its operations through setting up of separate regional and project Chief Engineer's offices. For the first time, advance office automation and communication facilities were introduced within TWAD. Computers have been installed upto the division level offices.
Computerized project monitoring, financial accounting, material management and payroll systems introduced under the project helped in effective monitoring of project implementation and completion. With introduction of computers TWAD made use of COSTAB and distribution network analysis software developed by World Bank for the preparation of reports for additional projects taken up while restructuring the project. TWAD was successful in establishing new water analysis laboratories and upgrading existing ones with project funds which would help in effective water quality monitoring and supply of safe water to millions.
TWAD developed skills in reduction and control of Unaccounted-For-Water and has prepared the modem equipment which would help in continuation of the program on a permanent basis. The TWAD and Local Body Engineers have also been trained in the skill of leak detection both abroad and in India and can work independently.
Meter repair facilities have been established in all the three cities. They will help in maintenance of domestic water meters efficiently resulting in reduction of unaccounted for water and hence realization of full revenue by the local body.
Inclusion of clause on submission of audit and accounts of TWAD's own accounts and project accounts every year and persistent insistence by the repeated supervision missions enabled TWAD to clear the backlog of 3 to 4 years in closing of accounts at the time of project appraisal to make them current at the time of project closing. Similar is the case with local body accounts.
The studies on Resource Mobilization, Socio-Economic and Tariff, accounting systems and introduction of stepped tariff structure for water supply billing has enabled the local bodies to improve their resource base considerably.
The demand by Bank on interim tariff and tax increases have enabled the local bodies in levying reasonable charges for water over the period of project implementation. In fact the property tax revisions have taken place in the case of most of the urban local bodies after nearly two decades. Assured of improved quality and increased service level, the public reconciled to tariff increases effected in small periodic doses without much pain.
Introduction of separate water supply and drainage accounts in the three cities have brought to light the real financial position water supply operation in these cities and helped in improving the same. 46
Sector Plan Study: This unique study taken up while restructuring of the project aims at provision of reliable sector data, identify and analyze sector issues and recommend approaches for sustainable and economic development of water supply and waste disposal sector of the state of Tamilnadu. Though there have been some delay in formation of in-house study team and identification of team of consultants for guidance, the study is expected to be completed by February '95.
While the above have been the brighter side of the project implementation, the following short coming could have been avoided during the project execution.
1. There were some initial delay in mobilizing the project team resulting in loss of about one year of project implementation time.
2. The delay on account of getting environmental and forest clearance could have been minimized if the involvement of higher ups at political level have been ensured.
3. Though the project involved many new and advanced engineering features they were carried out by the Engineers on their own without much training. More training in India and abroad for all the level of staff of TWAD would have helped in better planning and speedier execution of the project.
4. In the absence of adequate training, more close consultation and involvement of eminent personalities from leading Educational institutions would also have helped in overcoming the difficulties to some extent.
5. During the final phases of project at the time of commissioning, the local bodies did not evince keen interest in making available the benefits of project to their residents. Unless the local bodies are coerced to evince more interest and arrange for effecting the designed number of IISCs, neither the public will derive full benefit of the project nor the local bodies will raise sufficient revenue to meet the O&M costs and repay the debt.
6. While TWAD was experienced in construction of the project, it could not take timely decisions on the components included under the Institutional Development head, consequently most of the procurement of office automation and communication equipment and training activities were taken up in the final phases of the project only, depriving the project of the full benefits of the expenditure under Institutional Development. 47
Annex C
MAPS I yr. 7'- 7SO*
I N D I A r /. TAMIL NADU WATER SUPPLYAND SANITATION PROJECT LOCATIONOF PROJECTTOWNS ANDHRA PRADESH
TWAD Circle Boundary 'f'...,. Projwct Towns ~ .". * To selectedTns fo- wotersupply ougmentionto * Townssected fo prowidingnew water supply schemes5, * Towns selectedfor providing low cost sonitatlon focilitesJ
0 Other Selected Towns Notionol Highwoys
Selected Railrods r. 5..g.Mi. < - - sR ct floundaries - Stote ond Union Ter.itory \ Boundories if
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k rV' 7 1DUR - -t ! IBRD27860 ... ~~~~~~7 'I.NDIA N I L GI RI S TAMIL NADU WATERSUPPLY AND SANITATION PROJECT Mettuppolo,yam COIMBATOREWATER SUPPLY SUBPROJECT PROPOSEDWORKS PROJECT COMPONENTS: EXISTING FEATURES: *1lKa madaI\ a City selected for water Trans-,ssion mains k @_ $: t ' Annur supply augmentatmon 3 Da. Towns selected For proniding f P.ck-up weirs new water supply schemes i Treatment plant 0 Settling tank 4_ S-11, A vonosh, Transmission ma.ns fa: anan, / / IntakeRho ¢ t Break pressure tanks Periana-,kenp.ioon, /iropsrr,, Ta treatment works Tunnel >5t ) .\>i-t Gudolur*\ / O Break pressure tonks *y >r n - Raw water tunnel 0 Other selected towns - Cleor water tunnel Notional hig1hway -* , .j m ocke naor VorossomIkolor n 01d,kka,. ~ ~~~~~~~~~~~~~~~-Major roads ----- Railroads Vello-nbr t KSn onopnt: Rivers State boundaries I; I nternotin§4 t R; _son:nal _ boundaries Ve.l. _ /yio T ,reollorno \ | S .C^ertlpcllosom \ /~~~~~~~~~.n~n,.lyoCII 'N'.. Ett~~~~~~~~~~~~, O~~~Chett:polo,rn, KERAZA STATE Nopbllchi KILOMETERS 0 5 10 15 Th. b-.,d--ne cobra, dnmaoin.and any n,h., intfninon-a O anyof win-roor anyfo -agmn !n oh 5ga 10 onae -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~oaMILES 0 5 tO *ndom.m.nm or ooo.ptano. of *anh baondan.ra. ~~d--t-1 -Pf.-f .. ch b...d..... ~ ~ ~ in.ARC Q7 to < 0'/"0' 78 *NDIA IBRD27861 *b r°'\\ rri,hchirape// TAMIL NADU WATER SUPPLYAND SANITATION PROJECT COIMBATORE \r\h\ 0 ap < MADURAIWATER SUPPLY SUBPROJECT PROPOSEDWORKS ~\Dindigg \ PROJECT. ... COMPONENTS: City selected For water supply augmentation schemes .r.Kodoikonral / \ Towns*. * selected for providing new water supply - Transmission lines ToJiruppott /c,.I Intake EXISTING FEATURES: ;) zQ\Kot d -Treatmentworks 0 Other selected towns VAIGAI{<9\ BreakBAE pressure tank -National highways \ Xheni-Allingorom/ Itcan@ S& / V ( Major roads -0 Allinagar Vgo, Reservoir Railroads lo- -- -Rivers Usi arnpatti ci -0, ~~~~~~~~~~~Darn - ...- District boundaries /Thevorom Al State( boundories{_6 F > Veerapondi*< // In/ternrOionaloboundaItoa c: *Pon ) apurom \ / . _4** -..Cr rto Arvppuikuto, Ti,Jt Ko/toyom J fioSr v //IPVirudunogar to Soatu, .' RRAMANATHAPURAM KILOMETERS0 10 20 30 40 MILES O 0 20 h.h.T nformB . TI~~RUNELVELI 78.c-o IBRD27862 78 XH - 78- 30 79-00 INDIA to^ormoP>,,*.* D H A R M A P U R I TAMIL NADU WATER SUPPLYAND SANITATION PROJECT SALEM WATERSUPPLY SU8PROJECT PROPOSEDWORKS ._rser,/ 1/ I' t rPROJECT CJ . . COMPONENTS: / er,~ t ~ ~~ SM / ec I/j \ r j \ City selectedfor water supplyaugmentation * Town selected for providing new water supply scheme Metu rl 9 Yercoud t - Transmission marns It' C3~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Offtoke annankur /2 A/ OTreatmentworks 6 &5 hap" (~~~~~~~~~~~~~~~~~~~DBreak pressure tanks aPsc /,,.e, PSC sr ~ ~ ~ oaan~ckerpYe,an V Booster A d,opot ~~~~~~~~~~~~~EXISTINGFEATURES: 1~~ , - Tronsmnissionhees National highways roahccac' T Noros rgpro - ____ Heodworks Major roads \'~~~ ~ Treatment works .. r--.Ra.lroads N{ V Booster - District boundaries 0 Other selected towns _. _ State boundaries -. International boundaries 1130 j / v q ^ tRaSlPuram s - [^/ \\~~~~~~~~~~~~~~~~~~~~~~b.,m6Iu rogrod\< >1/ \ / / /uchongo EIOSodO ,V \. '). KILOMETERS0 10 20 30 40 50 -.\ t \ \ f ~~~~~~~~~~~~~TI RU C H C H I RA P PA L LI KLMTR o703 05 MILES 0 10 20 30 \ \ s \ ~~~~~Nmamkkal P E R I Y A t\i / \. /Theboundaresd cola.. g \t J | | roMussrz ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~othernfar8maeian shownl on thi, mop do -ot iTh. pKy, at ontheakGop po,r of lt.00.~ ~~ ~ ~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~t.o II 00 _ 78-00' &o/Ka-,r 78'30' 79-00' 11,00- MACH 595 I IMAGING Report No: 15475 Type: ICR