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Percent Disbursed 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,
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