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The World Bank Document of The World Bank FOR OFFICIAL USE ONLY MICROFICHE COPY Report No. 10579-IN Type: (PPR) Public Disclosure Authorized TWEDDLE, E/ X31707 / T9 073/ OEDD3 PROJECT PERFORMANCE AUDIT REPORT INDIA Public Disclosure Authorized SECOND MADRAS AND KANPUR URBAN DEVELOPMENT PROJECTS (CREDITS 1082-IN AND 1185-IN) APRIL 22, 1992 Public Disclosure Authorized Public Disclosure Authorized Operations Evaluation Department Jocument has a restricted distribution and may be used by recipients only in the performance of official duties. Its contents may not otherwise be disclosed without World Bank authorization. GLOSSARY OF ABBREVIATIONS DHRW Department of Highways and Rural Works DOH Department of Health DSW Department of Social Welfare GTN - Government of Tamil Nadu HUDCO - Housing and Urban Development Corporation IRR - Inner Rural Road KDA - Kanpur Development Authority KUDV - Kanpur Urban Development Project Metrowater Madras Metropolitan Water Supply and Sanitation Board MMA - Madras Metropolitan Area MMC (or MC) - Madras Municipal Corporation (or Madras Corporation) 'A Madras Metropolitan Development Authority :1UDP 1 - First Madras Urban Development Project ..UDP ii - Second Madras Urban Development Project PC - Public Convenience FTC - Pallavan Transport Company PWD - Public Works Department SIDCO Small Industries Development Corporation TIIC Tamil Nadu Industrial Investment Corporation TNHB - Tamil Nadu Housing Board TNSCB Tamil Nadu Slum Clearance Board TNUDP - Tamil Nadu Urban Development Project UPUDP - Uttar Pradesh Urban Development Project THE WORLD BANK FOR OFFICIAL USE ONLY Washington. D.C 20433 U.S.A. 4 Director-General ktans [Valation April 22, 1992 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Performance Audit Report on India Second Madras and Kanpur Urban Development Projects (Credits 1082-IN and 1185-IN) Attached, for information, is a copy of a report entitled "Project Performance Audit Report on India - Second Madras and Kanpur Urban Development Projects (Credits 1082-IN AND 1185-IN)" prepared by the Operations Evaluation Department. Attachment 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. FOR OFFICIAL USE ONLY PROJECT PERFORMANCE AUDIT REPORT INDIA SECOND MADRAS AND KANPUR URBAN DEVELOPMENT PROJECTS (CREDITS 1082-IN AND 1185-IN) TABLE OF CONTENTS Page No. Preface ............................................................ i Evaluation Summary ................................................. vi I. PROJEC2 BACKGROUND ........................................... I A. Urbanization in India ..................................... I B. National Urban Policy through the Mid-1980's .............. 2 C. The Project Cities ........................................ 4 D. Bank Role and Strategy in the Urban Sector ................ 6 II. THE PROJECTS ................................................. 6 A. Project Preparation ....................................... 6 B. Project Appraisal and Negotiations ........................ 9 C. Project Objectives ........................................ 12 D. Project Description and Principal Features ............... 12 1. Project Components ..................................... 12 2. Project Coordination and Implementation Arrangements ... 14 3. Project Costs and Financing ............................ 15 III. PROJECT IMPLEMENTATION AND RESULTS ........................... 16 A. Time Delays ............................................... 16 B. Cost Variations ........................................... 19 C. Project Results ........................................... 20 1. Physical Achievements and Environmental Impacts ........ 20 2. Rates of Return and Poverty Impact ..................... 23 3. Financial Performance .................................. 26 4. Institutional Development .............................. 27 5. Policy Impact .......................................... 27 IV. POINTS OF SPECIAL INTEREST ............................... 29 A. Project Impact on City Development ........................ 29 B. The Role and Advantages of Follow-on Projects ............. 31 C. The Filtering-Up of Shelter Improvement Benefits .......... 32 D. Sustainability ............................................ 35 V. THE ROLE OF THE BANK ........................ ........ 36 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. Table of Contents (Cont'd) VI. CONCLUSIONS AND LESSONS LEARNED .............................. 38 A. Conclusions ............................................... 38 B. Lessons Learned ........................................... 40 PROJECT PERFORMANCE AUDIT REPORT INDIA SECOND MADRAS AND KANPUR URBAN DEVELOPMENT PROJECTS (CREDITS 1082-IN AND 1185-IN) PREFACE 1. This is a Project Performance Audit Report (PPAR) on the Second Madras and Kanpur Urban Development Projects in India. Approved on December 16. 1980, the Second Madras Urban Development Project was supported by IDA Credit 1082-IN in the amount of US$ 42.0 million. This credit was fully disbursed. The Kanpur Urban Development Project, approved on October 27, 1981. was partially financed by Credit 1185-IN in the amount of US$25.0 million. US$ 3.3 million of this credit was eventually cancelled. 2. The PPAR consists of an Evaluation Summary and a Project Performance Audit Report (PPAR) prepared by the Operations Evaluation Department (OED). Project Completion Reports (PCRs) for the Kanpur operation prepared by the Infrastructure Division of the Technical Department of the Asia Region (ASTIN) and for the Second Madras project prepared by the Population. Human Resources and Water Operations Division of Asia Country Department IV (AS4PH) were previously sent to the Board as OED Reports No. 8402, dated February 23, 1990, and No. 8688, dated May 23, 1990, respectively. 3. The PCRs provide accounts of the project experiences and indicate their achievements and failures. To give a wider perspective OED has provided additional information about the history of the two operations, their main implementation problems and outcomes, the issues raised, and the principal lessons learned. The PPAR is based on the aforementioned PCRs, the respective SARs, project files, legal documents, discussions at Board presentation, and other relevant material. It also drew from OED interviewa with Bank project staff, discussions with representatives of the Indian central and state (Tamil Nadu and Uttar Pradesh) governments, including all major coordinating and executing agencies, and site visits carried out during an Audit mission in March- April 1990. 4. The Audit generally agrees with the findings of the PCRs and examines several of the key issues raised by the projects in further detail. 5. The draft PPAR was sent to the Borrower for comments but none were received. ii PROJECT PERFORMANCE AUDIT REPORT INDIA MADRAS SECOND URBAN DEVELOPMENT PROJECT (CREDIT 1082-IN) BASIC DATA SHEET CREDIT POSITION (Amounts in US$ Million) As of Feb. 28, 1991 Credit Original Disbursed Cancelled Repaid Outstandint IDA 42.0 42.0 - 0.23 46.03 CUMULATIVE ESTIMATED AND ACTUAL.DISBURSEMENTS FY81 FY82 FY83 FY84 JX8i. FY86 FY87 rY88 FY89 Appraisal Estimate (US$ millions) 0.3 6.6 18.0 31.5 40.5 42.0 Actual (USS millions) 0.0 2.57 12.28 14.2 18.33 21.68 28.21 36.57 42.0 Actual as 2 of Appraisal (2) 0.0 0.38 0.68 0.45 0.45 . 0.51 0.67 0.87 100 Date of Final Disbursement: October 3, 1988 PROJECT DATES Oriainal Actual Identification 06/78 06/78 Preparation Mission 10/15/78 10/15/78 Appraisal Mission 10/08/79 10/08/79 Negotiations 11/10/80 11/10/80 Board Approval 12/16/80 12/16/80 Signing 01/14/81 01/14/81 Effectiveness 04/14/81 04/14/81 Credit Closing 03/31/86 03/31/88 Credit Completion 06/30/85 12/31/87 iii STAF INPUTS Stage of Project Cycle To.al Staftheeks Through Appraisat 47.8 Appraisal through Loard Approval 30.6 Board Approval through Effectiveness 0.5 Supervision 106.6 Total 185.5 MISSION DATA No. of No. of Staff Month/Year Weeks Persons Weeks Through Appraisal 10/78-07/79 8.0 18 144.0 Appraisal thru Board Approval 10/79-08/80 7.8 11 85.8 Supervision I 05/81 2.8 4 11.2 Supervision II 11/81 2.8 3 8.4 Supervision III 03/82 0.3 1 0.3 Supervision IV 07/82 3.2 5 16.0 Supervision V 04/83 2.0 3 6.0 Supervision VI 12/83 2.8 3 8.4 Supervision VII 04/85 1.6 1 1.6 Supervision VIII 08/85 4.2 2 8.4 Supervision IX 12/85 2.2 !. 2.2 Supervision X 05/86 2.4 1 2.4 Supervision XI 10/86 2.8 3 8.4 Supervision XII 03/87 3.2 5 16.0 Supervision XIII 10/88 0.3 2 0.6 OTHER PROJECT DATA Borrower/Executing Agency: Government of India Follow-on Proiect(s): Project: Tamil Nadu Urban Development Project Credit No.: 1923-IN Amount: US$300.20 Board Date: June 15, 1988 iv PROJECT PERFORMANCE AUDIT REPORT INDIA KANPUR URBAN DEVELOPMENT PROJECT (CREDIT 1185-IN) BASIC DATA SHEET CREDIT POSITION (Amounts in US$ Million) As of Feb. 28, 1991 Credit Original Disbursed Cancelled Repaid Outstanding IDA 25.0 22.26 3.33 0.0 27.31 CUMULATIVE ESTIMATED AND ACTUAL DISBURSEMENTS FY82 FY83 FY84 FY5 FY86 FY87 FY88 Appraisal Estimate (US$ millions) 1.0 7.2 14.0 19.5 22.0 Actual (US$ millions) 0.0 2.1 6.5 9.4 11.8 14.3 19.2 Actual as Z of Appraisal (%) 6 29 47 48 53 64 90 Uate of Final Disbursement: April 25, 1988 PROJECT DATES Original Actual Negotiations 02/81 09/81 Board Approval 04/81 10/27/81
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