Government of Bihar Asian Development Bank
Component Technical Assistance
TA 4814-IND India: Bihar Urban Development Project
Final Report Volume I - Main Report
MAY 2008
BUDP Main Report
Abbreviations
ADB : Asian Development Bank AIFC : Average Incremental Financial Cost AP : Affected Persons ARV : Annual Rental Value ASI : Archeological Survey of India BHB : Bihar Housing Board BME : Benefit Monitoring Evaluation BOT : Build Operate Transfer BPL : Below Poverty Level BRJP : Bihar Rajya Jal Parshad BUSDRM : Bihar Urban Sector Development Road Map BUDP : Bihar Urban Sector Development Project CAA : Constitution Amendment Act CAG : Comptroller and Auditor General CAGR : Compounded Annual Growth Rate CAPEX : Capital Expenditure CAPP : Community Awareness and Participation Program CC : City Corporation CCF : City Challenge Fund CDP : City Development Plan CFE : Consent for Establishment CFO : Consent for Operation CLC : City Level Committee CLIP : City Level Infrastructure Plan CLIP : City Level Investment Plan CPCB : Central Pollution Control Board CPHEEO : Central Public Health and Environmental Engineering Organization DFID : Department for International Development DLAO : District Land Acquisition Officer DM : District Magistrate DPR : Detailed Project Report DSC : Design Supervision Consultants EAP : Externally Aided Projects EARF : Environmental Assessment and Review Framework EARP : Environmental Assessment and Review Procedures EC : Environmental Clearance EIA : Environment Impact Assessment EIRR : Economic Internal Rate of Return EMP : Environmental Monitoring Plan ERP : Enterprise Resource Planning EU : European Union FBAS : Fund Based Accounting System FDI : Foreign Direct Investment FFA : Financing Framework Agreement FGD : Focus Group Discussion FGIA : First Generation Imprest Account FI : Financial Institution
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FIRR : Financial Internal Rate of Return FOP : Financial and Operating Plan FYP : Five Year Plan GAP : Gender Action Plan GDP : Gross Domestic Product GEM : Generators of Economic Momentum GIS : Geographic Information System GMC : Gaya Municipal Corporation GoB : Government of Bihar GoI : Government of India GSDP : Gross State Domestic Product HUDCO : Housing and Urban Development Corporation ICB : International Competitive Bidding IDSMT : Integrated Development of Small and Medium Towns IEE : Initial Environmental Examination IHSDP : Integrated Housing and Slum Development Program IP : Indigenous People IPDF : Indigenous People’s Development Framework IPDP : Indigenous People’s Development Plan IPT : Intermediate Public Transport JBIC : Japanese Bank for International Cooperation JNNURM : Jawaharlal Nehru Urban Renewal Mission KfW : Kreditanstalt fur Wiederaufbau LAA : Land Acquisition Act LCC : Life Cycle Cost M&E : Monitoring and Evaluation MFF : Multi-Tranche Financing Facility MFI : Multilateral Financial Institutions MLD : Million Litres per Day MML : Model Municipal Legislation MoEF : Ministry of Environment and Forest MoUD : Ministry of Urban Development MoUDPA : Ministry of Urban Development and Poverty Alleviation MUDPA : Ministry for Urban Development and Poverty Alleviation NCB : National Competitive Bidding NCU : National Commission on Urbanization NGO : Non Governmental Organization NH : National Highway NIC : National Informatics Centre NIUA : National Institute of Urban Affairs NMAM : National Municipal Accounting Manual NMCP : National Minimum Common Program NMT : Non Motorized Transport NOC : No Objection Certificate NPRR : National Policy for Resettlement and Rehabilitation NSSO : National Sample Statistics Organization NUIS : National Urban Information System PAC : Project Advisory Committee PAF : Project Affected Families PAH : Project Affected Households PFDS : Pooled Finance Development Scheme PHED : Public Health Engineering Department
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PIU : Project Implementing Unit PMC : Patna Municipal Corporation PMU : Project Management Unit PPMS : Project Performance Management System PPP : Public Private Partnership PRDA : Patna Regional Development Authority PSP : Private Sector Participation PUA : Patna Urban Area PWB : Patna Water Board PWD : Public Works Department R&R : Resettlement and Rehabilitation RBI : Reserve Bank India RCD : Road Construction Department RP : Resettlement Plan SEIAA : State Environment Impact Assessment Authority SFC : State Finance Commission SGIA : Second Generation Imprest Account SIA : Social Impact Assessment SIEE : Summary Initial Environmental Examination SJSRY : Swarna Jayanti Sahari Rozgar Yojana SOE : Statement of Expenditure SPV : Special Purpose Vehicle STP : Sewage Treatment Plant TAC : Tender Approval Committee TAC : Technical Assistance Cluster TCPO : Town and Country Planning Organization TP : Town Panchayat UA : Urban Agglomeration UDD : Urban Development Department UEPA : Urban Employment and Poverty Alleviation UFW : Unaccounted for Water UIDSSMT : Urban Infrastructure Development Services in Small and Medium Towns ULB : Urban Local Body UNDP : United Nations Development Program URIF : Urban Reform Incentive Fund USAID : United States Agency for International Development WTP : Willingness to Pay
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Contents
I. Background...... 1 A. Introduction...... 1 B. Project Goal...... 1 C. Study Outputs...... 1 D. Scope of the Report...... 2 E. Main Report Structure...... 2
II. Urban Sector in India ...... 4 A. Economy and Growth ...... 4 B. Urban Governance ...... 6
III. Urban Sector in Bihar...... 9 A. Urbanization Trends...... 9 B. Overview of Existing Urban Infrastructure and Service Provision...... 10 C. Urban Finance, Financing and Funding Sources ...... 17
IV. External assistance...... 25 A. Country Assistance...... 25 B. State Assistance...... 26 C. Lessons Learnt ...... 27
V. City Socio-Economic Context...... 30 A. City Role and Function ...... 30 B. Population and Urbanization...... 30 C. Socio-economic Baseline ...... 31
VI. Gender Analysis and Action Plan...... 35 A. Overview...... 35 B. Status of Women in Bihar ...... 35 C. Status of Women in BUDP Towns ...... 37
VII. Stakeholder Consultation and Participation ...... 53 A. Participation Strategy...... 53
VIII. Project Rationale...... 55 A. Introduction...... 55 B. Policies and Programs...... 55 C. Development Perspective...... 59 D. Project Identification and Selection ...... 59 E. Project Components ...... 68 F. Cost Estimates and Financing Plan ...... 69
IX. Poverty and Social Analysis ...... 72 A. Social Objectives in Project Formulation...... 72 B. Social Impact...... 75
X. Implementation Arrangements...... 76 A. Executing and Implementing Agencies...... 76 B. Project Management and Administration...... 77 C. Procurement and Disbursement Procedures...... 77 D. Implementation Schedule...... 82 E. Project Performance Monitoring...... 82
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XI. Capacity Building Program ...... 86 A. Overview...... 86 B. Capacity Building...... 86
XII. Financial analysis ...... 89 A. General ...... 89 B. Sub-Projects ...... 89 C. Financial Projections...... 89 D. Cost Recovery ...... 91 E. Financial Internal Rate of Return...... 92 F. Average Incremental Financial Cost and Subsidy ...... 94 G. Beneficiary Affordability ...... 94 H. Affordability Analysis:...... 94 I. Project Sustainability ...... 95
XIII. Economic Analysis of Sub-Project Components ...... 98 A. Introduction and Scope ...... 98 B. Economic Analysis of ADB’s Project Loan for BUDP ...... 98 C. Economic Rationale ...... 99 D. Selection Process...... 100 E. With, Without Project Situation and Analysis of Alternatives ...... 100 F. Economic Cost ...... 101 G. Economic Benefits ...... 102 H. EIRR Analysis...... 104
XIV. Environmental Assessment ...... 106 A. Introduction...... 106 B. Environmental Regulatory Framework...... 106 C. Project Description...... 106 D. Description of Environment...... 108 E. Environmental Impact and Mitigation Measures ...... 111 F. Environmental Monitoring Plan...... 112 G. Public Consultation and Disclosure ...... 122 H. Findings and Recommendations ...... 122 I. Conclusions...... 124
XV. Social Assessment...... 125 A. Overview...... 125 B. Country Social Assessment / Resettlement and Rehabilitation Policy Requirements ...... 125 C. ADB’S Policy on Involuntary Resettlement and Indigenous Peoples ...... 127 D. ADB Involuntary Resettlement and Indigenous Peoples Categorization...... 128 E. BUDP Involuntary Resettlement Category...... 129 F. Short Resettlement Plans...... 131 G. Resettlement Costs...... 132
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Tables
Table 1: Population Growth in India...... 4 Table 2: Urbanization in Bihar State...... 10 Table 3: Urban Governance Responsibility ...... 16 Table 4: State Financial Position...... 18 Table 5: Demographic Characteristics ...... 30 Table 6: Population Projection for Project Cities ...... 31 Table 7: Willingness to Pay for Services ...... 33 Table 8: Comparison of Health / Education / Welfare Indices of Bihar and India ...... 35 Table 9: Women’s autonomy in Bihar...... 36 Table 10: Women’s participation in Polls in Bihar...... 36 Table 11: Crimes against women in Bihar, 2000 ...... 37 Table 12: Patna - Burden of Household Activities borne by Women...... 37 Table 13: Patna – Predominant Reason cited for non-attendance of school by illiterate women ...... 38 Table 14: Patna - Reason cited for women not pursuing higher studies ...... 38 Table 15: Patna - Type of institution accessed for ante-natal care...... 39 Table 16: Patna – Characteristics of Woman-headed households...... 40 Table 17: Patna - Socio-economic Details of Woman-headed Households...... 40 Table 18: Patna - Monthly Income of Woman-headed Households ...... 41 Table 19: Patna - Unskilled Worker Wages received by Women...... 41 Table 20: Patna - Housing Status of Woman-headed Households...... 42 Table 21: Patna - Access of Woman-headed Households to Basic Services ...... 43 Table 22: Gaya – Burden of Household Activities borne by Women...... 44 Table 23: Gaya - Reason cited for non-attendance of school by illiterate women...... 44 Table 24: Gaya - Reason cited for women not pursuing higher studies...... 45 Table 25: Gaya - Type of institution accessed for ante-natal care ...... 45 Table 26: Gaya - Characteristics of Woman-headed households...... 46 Table 27: Gaya - Socio-economic Details of Woman-headed Households ...... 46 Table 28: Gaya - Monthly Income of Woman-headed Households...... 47 Table 29: Gaya - Housing Status of Woman-headed Households ...... 48 Table 30: Gaya - Access of Woman-headed Households to Basic Services...... 49 Table 31: Gender Action Plan...... 50 Table 32: Percentage Distribution of HHs by Stated Priorities for Basic Service for Patna & Gaya ..63 Table 33: Project Cost Estimates in US Dollars ...... 69 Table 34-Project Cost Estimates in Rupees ...... 70 Table 35: Financing Plan ...... 71 Table 36: Summary of Financial Evaluation...... 93 Table 37: Population Distribution by Income Group...... 94 Table 38: Household Affordability Analysis ...... 95 Table 39: Summary of Projected Financial Position (Rs. Million) ...... 96 Table 40: Financial Improvement Action Plan ...... 97 Table 41: EIRR and Sensitivity Analysis (percent) ...... 105 Table 42: Proposed Subprojects and Components...... 107 Table 43: Baseline Environmental Profile of Patna and Gaya...... 108 Table 44: Environmental Impacts and Mitigation Measures for Infrastructure Construction...... 113 Table 45: Environmental Impacts and Mitigation Measures for Infrastructure Operation ...... 116 Table 46: Environmental Monitoring Plan ...... 118 Table 47: Project IR/IP Categorization ...... 130 Table 48: Summary of Resettlement Impacts ...... 132 Table 49: Resettlement Costs...... 133
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Appendices
Appendix 1: Financial Performance of 7 ULBs...... 134 Appendix 2: Summarized Position of Income and Expenditure of Patna and Gaya Water Board....135 Appendix 3: Consolidation of Financial Management Assessment of the Two ULBs - BUDP ...... 136 Appendix 4: External Assistance to the Urban sector...... 140 Appendix 5: Detailed Cost Tables (15 Pages) ...... 144 Appendix 6: Summary Poverty Reduction and Social Strategy – Draft...... 159 Appendix 7: PMU and PIUs Organization Structure...... 163 Appendix 8: Procurement Packages...... 165 Appendix 9: Implementation Schedule...... 168 Appendix 10: Design and Monitoring Framework ...... 170 Appendix 11: Capacity Building (15 Pages)...... 177 Appendix 12: Financial Internal Rate of Return (FIRR) (4 Pages)...... 193 Appendix 13: Average Incremental Financial Cost ...... 197 Appendix 14: Cash Flows (4 Pages) ...... 198 Appendix 15: Institutional and Financial Reforms Roadmap (4 pages) ...... 202 Appendix 16: Economic Internal Rate of Return (3 Pages)...... 206
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I. BACKGROUND
A. Introduction
1. The Draft Final Report was prepared in early March. The report was presented on 18 March2008 in the workshop held at Patna in presence of various stake holders and members of ADB Review Mission. It was also discussed and agreed upon during that visit of the Mission that from a sector loan concept with MFF, the proposed loan will be the Project loan. The proposed loan will be utilized to improve the infrastructure facilities in the cities of Patna and Gaya as also capacity building in all the seven municipal corporations and related departments in the state of Bihar. This report is the fourth output from the ADB TA – 4814 for the preparation of the project originally to attract funding from Asian Development Bank for improving infrastructure and municipal service delivery in Patna and Gaya and 5 other municipal corporations in Bihar. The seven cities are Patna, Gaya, Muzaffarpur, Bhagalpur, Darbhanga, Bihar Sheriff and Arah. The project was to include investment in physical infrastructure at city level and with proposals for capacity building and institutional strengthening of municipal and state authorities. An Inception Report was submitted to the State Government and the ADB in October 2007, which was subsequently presented and discussed in the workshop held in Patna on 26th November 2007. An Interim Report was submitted to State Government and ADB in January 2008, which was subsequently presented and discussed with the State Government in the workshop held in Patna on February 21, 2008. In addition, consultation workshops were held in Patna on 3rd March 2008 and in Gaya on 4th March 2008.
B. Project Goal
2. The project goal is to encourage sustainable economic growth and poverty reduction in urban Bihar. The objective of the Project is to provide sustainable growth and poverty reduction through the provision of urban infrastructure services and the promotion of good urban governance to urban local bodies in Bihar.
C. Study Outputs
3. The outputs from the study are a series of components to improve city wide urban infrastructure services with the integration of poor settlements within the overall urban development process. Specifically, the Project will provide (i) basic infrastructure services to increase economic opportunities and to reduce vulnerability to environmental degradation and urban poverty in the two cities and (ii) improve urban governance and increase capacity of all the seven municipal corporations to undertake urban planning activities. The Project will also focus on improving the conditions of the poor through undertaking community infrastructure development and poverty alleviation at selected slums in Municipal Corporations of Patna and Gaya.
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D. Scope of the Report
4. The Draft Final Report is presented in 4 volumes. Volume 1, the Main Report, provides an overall view of the project and concentrates on State level policy, social-economics and urban management plus issues that are common to both Project cities. Volume 2 provides separate reports for Patna and Gaya covering mainly technical and financial issues. Volume 3 is the Environmental Assessment Report. Volume 4 is the Social Assessment Report.
E. Main Report Structure
7. This Volume 1 (Main Report) is laid out into eleven sections; a summary of each section is detailed below:
(i) Section 1, Background. This section provides details on the Project, the goals and objectives, the study outputs and the scope of the report.
(ii) Section 2, Urban Sector in India. This section provides an overview of the country’s economy, growth and the status of urban development in the country.
(iii) Section 3, Urban Sector in Bihar. This section provides an overview of the State’s urbanization trends, economy, growth, urban governance and reforms initiated.
(iv) Section 4, External Assistance. This section focuses on the pattern of external assistance to the sector over the last two decades. It also reviews externally aided projects in the State and derives lessons learnt from the projects to base recommendations and approach to Bihar Urban Development Project (BUDP) design.
(v) Section 5: City Socio-Economic Context: This section describes the urbanization trends and socio economic baseline.
(vi) Section 6, Gender Analysis and Action. This section provides an overview of the gender analysis, the status of women in the State of Bihar, and identifies poverty and gender related issues.
(vii) Section 7, Stakeholder Consultation and Participation. This section provides an overview of the State’s socio-economic baseline, and identifies poverty and gender related issues.
(viii) Section 8, Project Rationale. This section defines the rationale and lays out the components/sectors identified under BUDP. Project objectives, component selection criteria, components and justification/basis for identification constitute the contents of this section.
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(ix) Section 9: Poverty and Social Analysis: This section describes the social objectives and the social impact of the Project interventions.
(x) Section 10, Implementation Arrangements. This section summarizes the Project implementation arrangements regarding executing and implementing agency responsibilities, implementation support, project management and administration, procurement and disbursement, and project performance monitoring.
(xi) Section 11, Capacity Building. This section provides an overview for the need for capacity building for the various state line agencies.
(xii) Section 12, Financial Sustainability. This section provides, inter alia, the methodology used in financial analysis, results of financial analyses of sub-projects proposed to be taken up in BUDP, affordability analysis and financial projections of MCs with project scenario for financial sustainability.
(xiii) Section 13: Economic Viability. This section provides, inter alia, results of economic analysis of sub-projects proposed to be taken up in BUDP, distribution of project benefits and poverty impact ratio assessment.
(xiv) Section 14: Environmental Assessment. This section summarizes the environmental assessment, findings, recommendations and monitoring plan for the Project.
(xv) Section 15: Social Assessment. This section summarizes the social assessment and findings along with short resettlement plans for the Project.
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II. URBAN SECTOR IN INDIA
A. Economy and Growth
5. Urbanization in India was the main driving force behind the rapid economic growth experienced in the country during the 1990s. Estimates of contribution by urban areas to the gross domestic product (GDP) are in the order of 50 to 60 percent, well above the level of urbanization itself (28 percent in 2001). India’s overall demographic figures of rural- urban divide do not reveal the fact that a sizeable part of the country has reached levels of urbanization that are much higher than the national average. Economic growth is thus highly dependent on the fortunes of urban areas and their ability to attract investment and increase productivity. However, rapid urbanization and under-investment in urban infrastructure have resulted in serious environmental and health problems in India’s cities. Urban households across India, particularly the poor and disenfranchised, continue to have limited access to potable water, sanitation, drainage, and solid waste disposal facilities.
6. Demographic pattern shows that during the last half a century, (1951-2001), the population of India has almost trebled (318.66 million in 1951 to 1,027 million in 2001) (refer Table 1). The overall population growth rate has shown decline since 1981, and by 2001, the CAGR had dropped below two percent. This trend is against the general trend of urban population growth in the rest of the developing world. The most significant part of India’s urbanization trend is that the metropolis (cities of 1 million plus population) accommodate more than a third of the urban population and the 300 Class I cities (100,000 plus) accommodate 70 percent of the urban population. The balance 30 percent of population is accommodated in 4,800 urban centers, whose level of urban service is poor, and do not effectively serve the rural hinterland. This leaves a very large area of the country un- serviced by urban services, which are essential for overall economic growth and equitable distribution of employment and opportunities. The four richest states, i.e. Maharashtra, Gujarat, Karnataka and Tamil Nadu account for more than 44 percent of total urban population of India. Census 2001 shows that nearly 45 percent of increase in urban population is due to migration.
Table 1: Population Growth in India Year Total CAGR Urban Total Decennial Urban No. of Population Population Population Growth CAGR Metros Nos % Nos % % % Nos 1941 318,660,580 44,153,297 13.86 31.97 1951 361,088,090 1.26 62,443,709 17.29 41.42 3.53 5 1961 439,324,771 1.98 78,936,603 17.97 26.41 2.37 7 1971 548,159,652 2.24 109,113,977 19.91 38.23 3.29 9 1981 683,329,097 2.23 159,462,547 23.34 46.14 3.87 10 1991 844,324,222 2.16 217,177,625 25.72 36.19 3.14 23 2001 1,027,015,247 1.98 285,354,954 27.78 31.39 2.77 37 Source: Census of India.
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7. Despite the contribution to economic growth by the urban sector, successive five-year plans (FYPs) of the Government of India (GoI) stressed rural development in general and neglected balanced urban development. It was not until the 8th FYP (FY 1993-1997) that the role and importance of the urban sector was explicitly recognized. Since then, the context of urban development has changed significantly in India, governed by the country’s focus on economic liberalization, financial sector reform, and a new emphasis on decentralization. However, despite government priority to develop urban infrastructure and provide essential municipal services to reduce urban poverty incidence and to prevent further environmental degradation, the sector shows large inefficiencies in service delivery, inadequate investments to expand service coverage, and a lack of asset maintenance.
8. Notwithstanding urban India’s problems, new opportunities have emerged. The passage of the 74th Constitution Amendment Act (CAA) provided momentum to urban sector reforms in the country. The 74th CAA intended to create a democratic governance structure, with local responsibilities being assumed and managed at the local-level. It was to address the relationship between the state governments and municipal governments, and lay the foundation for a new approach to urban management and governance regarding improved municipal service delivery.
9. Another key instrument governing India’s urban sector reform is the country’s 10th Five- Year Plan (FY 2002–07) prepared by the Planning Commission. The 10th FYP proposes an eight percent growth rate for the economy and focuses on four basic themes: high growth, equitable growth, human development and reforms. With 80 percent of plan allocation targeting social expenditure, the 10th FYP aims to alleviate poverty through access to education, health care, potable water, and sanitation. The 10th FYP also focuses on good governance as a cross-cutting issue and identifies the declining role of government in the provision of services – with emphasis on developing private enterprise participation in public service delivery and providing an improved regulatory environment.
1. Social Profile
10. The total urban population of India comprises 52.6 percent males to 47.4 percent female with a sex ratio of 901 females per 1000 males (2001 Census). The literacy rate within the urban population (above 7 years) has improved from a rate of 73 percent in 1991 to 80 percent in 2001.
11. Life expectancy of the total (urban and rural) population has increased from 55.9 years in 1988 to 62.4 years in case of males and 63.4 for females in 2001. The overall health status of the population has shown improvement with the infant mortality rate dropping from 74 deaths per 1000 live births in 1995 to 70 in 1999. The natural growth rate of the population has decreased from an annual rate of 1.97 in 1991 to 1.93 in 1999. The urban rate is lower, dropping from 1.72 to 1.61.
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2. Poverty
12. India is a fast growing economy, with growth rates of 5.6 percent in the fiscal year 2001 and 4.4 percent in the fiscal year in 2002. During this period, the poverty incidence in the country also declined from 36 percent of the population below poverty line in 1993-94 to 26 percent in 1999-2000. The actual number of people came down from 320 million to 260 million during this period.
13. The latest poverty estimates show that the incidence of urban poverty has declined substantially during the last three decades. The population below poverty line, based on minimum consumption expenditure, went down to 24 percent in 1999-2000, from 49 percent in 1973-74, which is a remarkable achievement. It is worthwhile to note that for the first time since the release of the national sample survey results, the absolute number of the urban poor declined to 67 million in 2000-01, from 76 million in 1993-94. Despite this sharp decline and encouraging results, the data on ‘income poverty’ does not capture trends in ‘human poverty’ which reflects deprivation in other dimensions of the quality of life. The income needed to avoid poverty is much higher in urban areas than rural areas since meeting non-food needs, such as access to water, sanitation, housing, etc. is much more expensive in urban areas. This implies that the estimates of poverty incidence based on national expenditure survey may not be properly reflecting the poverty situation in urban areas.
B. Urban Governance
14. GoI’s Ministry of Urban Development and Poverty Alleviation (MoUD&PA) are key agencies expected to achieve the 11th FYP’s vision. MoUDPA’s agenda to address growth, urban service delivery and the infrastructure gap in urban economies revolves around the management, governance and credit worthiness of local governments. The Pooled Finance Development Scheme (PFDS), the City Challenge Fund (CCF), and the Urban Reforms Initiative Fund (URIF) are few path-breaking reforms initiated towards achieving the 10th FYP’s vision (and indicated in the Union Finance Budget for FY 03). Other key initiatives facilitating urban infrastructure development and urban/municipal service management comprise:
(i) The 11th Central Finance Commission assigned responsibility to the Comptroller and Auditor General (CAG) of India for exercising control and supervision over the proper maintenance of accounts and their audit at the urban local body (ULB) level. The CAG drew various accounting reform initiatives such as those undertaken by Tamil Nadu, Karnataka, and Maharashtra. The CAG has prescribed the budget and accounting formats for ULBs with appropriate codification and classification of budget and account headings, thereby facilitating improved accounting systems in ULBs. The National Municipal Accounting Manual (NMAM) is an outcome of the aforesaid activity, which various states have now adopted to prepare guidelines for ULBs within the state.
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(ii) GoI’s MoUDPA has recently issued a Model Municipal Legislation (MML), which provides guidelines to frame new/amend old legislation. States are currently reviewing the suitability of the same for any further amendments to the existing acts. States have constituted committees to review existing municipal acts to determine amendments required for improving the service delivery capability of ULBs.
(iii) The MoEF notification regarding solid waste management, detailed in the Municipal Solid Waste (Management and Handling) Rules, 2000, provides guidelines to ULBs on waste collection, transportation, storage, processing and disposal. The guidelines govern waste management decisions of ULBs and associated infrastructure required for facilitating waste management.
15. Key urban infrastructure and management projects in the country include:
(i) Municipal Accounting. The World Bank aided Tamil Nadu Urban Development Project (TNUDP) assisted ULBs of the state to transit to a double-entry accounting system. The initiative covered 100 ULBs and was spread over a period of two years. In continuation with other accounting reforms in the country, the Comptroller & Auditor General (CAG) of India constituted a Task Force to study the reforms and draft guidelines for municipal accounting – the report has been submitted and ULBs have an option to adopt the guidelines (states where the ULBs evince interest in adopting the guidelines are now eligible for funding through the URIF). ULBs are expected to adopt the guidelines at the earliest.
(ii) Private Sector Participation. Eight years after it was announced, work commenced on the Tirupur water supply project, which was based on a Build-Operate-Transfer (BOT) concept – while the target beneficiaries were predominantly industrial units, the Tirupur Municipality would benefit partially. On the other hand, the Alandur Sewerage Project – a combination of a Build-Operate-Transfer (BOT) and item rate contract – was commissioned as scheduled (within a period of four years from award). While ambitious management contracts (e.g. Bangalore and Sangli) were unsuccessful due to various reasons, the concept of facilitating operator understanding of existing systems and preparing long-term “corporate plans” for system rehabilitation was well appreciated. The Navi Mumbai contracts for water supply and sewerage systems adopted a “performance monitoring” role by the ULB while retaining the “service delivery” orientation of operators. ULBs are expected to adopt an incremental approach to private sector participation with a focus on performance monitoring.
(iii) Enterprise Resource Planning. Bangalore City Corporation (BCC) evolved an enterprise resource plan (ERP) from a municipal accounting process – it instituted the Fund Based Accounting System (FBAS) – before it went public with its FY04 Q1 results. The ERP is an integrated system that tracks and controls all aspects of BCC’s financial, logistics and human resource operations. ULBs recognize the need to capitalize on limited quality-human capital and manage own resources through a municipal management information system.
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(iv) Innovative Financing Mechanisms. Large municipal corporations (e.g. Ahmedabad, Hyderabad and Nashik) continue to access domestic capital markets through municipal bonds based on their commendable fiscal status. Through the “pooled finance framework”, small and medium sized ULBs have finally discovered an avenue to access the capital markets through a joint effort – the Tamil Nadu Water & Sanitation Pooled Fund for 14 ULBs accessed the market to borrow Rs. 300 million. Similarly, USAID is also providing credit guarantee for a water supply project in ULBs situated along the outskirts of Bangalore, Karnataka – the Rs. 3,000 million project, is planned for financing through infrastructure bonds raised from the market. ULBs, through a state-level entity, are henceforth expected to form “pools” to access the capital markets – this would also foster reforms in the pool.
(v) Technology Transfer. The Supreme Court ruling on municipal solid waste management is yet to achieve its objective – ULBs continue to grapple with issues related to solid waste treatment technologies. Liquid waste treatment is also an issue that most ULBs find difficult to address (e.g., less than one percent of ULBs in India have a sewerage system, thereby making scientific sewage disposal a rarity). Besides, being capital intensive some technologies are patent protected and requires skilled personnel for operations. ULBs are expected to eventually settle for environmentally sound services – technology and long-term operational costs being the driving parameters.
16. National Level Institutional Arrangement: Urban Development is a state subject in the constitution and the role of the central government consists of coordination on policies and legislative activities. The central government also plays a role in making available plan finances, institutional finances and other financial assistance through the Central Finance Commission. At the Apex level, the nodal ministry is the Ministry for Urban Development and Poverty Alleviation (MUDPA). This ministry consists of two departments, Urban Development (UDD) and Department for Urban Employment and Poverty Alleviation (UEPA) with a Cabinet Minister at the head and a separate Minister of State for Employment and Poverty Alleviation.
17. Policies, Targets and Programs: While urban development is a state subject in the Country, the Ministry of Urban Development (MoUD) and the Ministry of Housing and Poverty Alleviation (MoHPA) has recently (December 2005) announced a country-level support to urban infrastructure development and basic service delivery in India’s urban centres – the Jawaharlal Nehru Urban Renewal Mission (JNNURM) cover 63 cities (Cities with million or more population, State capitals and towns with tourist importance) and the Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT) for cities which are not covered under JNNURM. The ministries have also adopted an integrated approach to poverty alleviation by combining the hitherto National Slum Development Program (NSDP) and Valmiki Ambedkar Awas Yojana (VAMBAY) into the Integrated Housing and Slum Development Program (IHSDP); thereby providing a more holistic approach regarding community infrastructure initiatives. On the social front, the plan has proposed extension of the ongoing slum improvement and social programs such as Swarna Jayanthi Shahri Rozgar Yojana (SJSRY).
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III. Urban Sector in Bihar
A. Urbanization Trends
18. Bihar is a land locked state and is bounded by the states of Jharkhand in the south, West Bengal on the east and Uttar Pradesh on the west. On the north it has an international boundary with Nepal. The present state of Bihar is the result of a bifurcation exercise of the erstwhile larger Bihar on November 15, 2000. As per 2001 Census the State, after being reorganized, has an area of 94,163 sq. km. With a population of about 83 million Bihar accounts for 8.07 percent of India’s total population and is the third largest populous state of India. The gross population density of the State, being 881 persons per sq. km., is one of the highest in India. The State has a decadal growth rate of 28.43 percent against a national average of 21.34 percent. The sex ratio in Bihar is 921 females per thousand males.
19. The latest estimate of Gross State Domestic Product for Bihar at 1993-94 prices, relating to 2004-05, stands at Rs. 393,321 million. The annual growth rate of GSDP varies widely over the years suggesting enormous dependence of the state economy on its uncertainty prone agricultural sector. A highly disadvantaged economy is a general phenomenon of the State. But this disadvantage is not equally present in all the regions. The per capita income in Patna district is Rs. 6,958, which is the highest in the State comparing to the lowest of Rs. 2,219 in Sheohar district. Broadly, the districts in south Bihar are economically more prosperous than those in the north.
20. Due to uneven growth rates across the sectors and sub- sectors, the sectoral composition of Bihar economy has undergone major change. The primary sector used to account 48.78 percent of GSDP in 1993-94, but by 2004-05, the share has dropped to 42 percent. This change has been almost entirely due to fall in the share of agriculture and animal husbandry. The share of secondary sector has, however, remains unaltered at around 9 percent throughout the period. This has resulted in obvious rise in the share of tertiary sector in the State economy from 41.29 percent to 48.98 percent. Thus, interestingly the economy is witnessing a process of tertiarisation, much before a process of industrialization.
21. Urbanization: Urbanization and urban population growth are pointers towards the change in the occupational pattern of the community, from agriculture and allied livelihoods to industrial and other non-agriculture occupations. Bihar state is predominantly agriculture based economy. The State has the least urbanization in the country. As per 2001 census, the urban population, residing in 122 urban centers of the State, was only 8.68 million or 10.46 percent of total population. About 60 percent of the total urban population resides in southern Bihar (South of Ganga River), majority of which is concentrated in Patna. The State witnessed high urban population growths of 54.88 percent and 43.99 percent during 1961-71 and 1971-81. Table 2 provides demographics on the urban growth experienced in Bihar State during 1961 – 2001. Bihar is least urbanized among the major states of the country. It is estimated that about 89.6 percent of its total population live in rural areas.
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Table 2: Urbanization in Bihar State Year Population Growth Rate Million % 1961 3.91 - 1971 5.63 43.99 1981 8.72 54.88 1991 11.35 30.16 2001 8.68* -
22. Agglomerations and Urban Local Bodies: There are 122 urban centres in the State accommodating 8.68 million persons. The number of Class I towns (above 100,000 Population) has increased from 11 in 1991 to 19 in 2001. More than 50 percent of the State’s urban population reside in Class I towns. The urban centres are classified as Municipal Corporations 7, Municipal Councils 42, and Town Panchayats 73.
B. Overview of Existing Urban Infrastructure and Service Provision
23. The condition of infrastructure and services within Project towns, varies significantly depending on local conditions and circumstances, there are many common elements to the issues and challenges faced by these towns in the infrastructure and service sectors. This section highlights some of those common issues.
24. Water Supply: Currently, Public Health Engineering Department and Bihar Rajya Jal Parshad creates water and sewerage infrastructure assets and the municipal corporations are responsible for operation and maintenance of the same. The ground water is major sources of water in the State. The average water supply rate is 150 lpcd in Patna and 80 lpcd in Gaya. According to the norms of CPHEEO, a minimum of 135 lpcd supply is required for provision of organized sewerage to towns having a population of less than 1 million. In both Patna and Gaya, about 60 percent of city’s population is covered with water supply system However, the extension of distribution networks has not kept pace with growing population and increasing urbanization and quality of delivery is average.
25. The water sector is beset with a host of problems. Large quantity of water is lost due to leakages. There is no database in terms of maps of distribution systems and conditions of pipes.
26. The water quality as supplied to consumers though appears to be acceptable in most cases; there are cases where water is found to be not safe. There is no set schedule of monitoring water quality on a regular basis, especially in the context of bacteriological contamination. Laboratories do not all have the required equipment or skills to undertake water analysis for parameters specified by Bureau of Indian Standards and/or according to the WHO guidelines. This needs to be addressed on a priority basis with an associated capacity- building effort.
27. Sewerage and Sanitation: Patna has sewerage system covering 18 percent of the town
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area. Gaya and the rest of the towns practically do not have sewerage system. Generally, non-sewered houses are provided with septic tanks, the effluent from which either flows into soak pits or into roadside municipal drains. In Patna, the coverage is generally limited to the core urban area. Collection system network has not kept pace with urban growth. It is estimated that about 18 percent of households are sewered. The sewage treatment plants were constructed during late eighties under the Ganga river protection project of GoI, the Ganga Action Plan. There are four STPs with a total installed capacity of 109 MLD. The total sewage treated in these STPs is only 71 MLD.
28. The major issues identified in the sanitation sector that need to be addressed are:
(i) Mapping and rehabilitation of existing networks and replacement of collapsed, damaged or overloaded sections; (ii) Expansion of sewer network to cover the entire town, where sewerage partially exists; (iii) Provision of treatment for untreated wastewater using appropriate technology; (iv) Encroachment of drains and unauthorized construction over the sewer lines causing maintenance problems; and (v) Lack of trained manpower for O&M of sewerage systems and STPs.
29. Solid Waste Management: Municipal solid waste (MSW) management is an obligatory function of the local governments. The total quantity of solid waste generated daily in Patna and Gaya is 800 and 250 tons respectively. The urban local bodies collect 55 percent waste in Patna and 60 percent Gaya. . The waste collected through community dustbins is transported to the disposal sites using tractors and open dumper trucks. The PMC has initiated door to door collection system under a program called Chaka Chak Patna Solid Waste Management Program. The present collection and transportation systems involve multiple handling of solid waste, and the sanitary workers involved in collection and transportation of waste do not take any protective measures and are thus exposed to high risk from health hazards associated with the waste.
30. The vehicles and equipment used for collection and transportation of MSW (tractor trailers, open trucks) are either old or obsolete and are invariably inadequate and unsuited to the tasks. A significant part of the waste generated is left unattended due to poor management, and inadequate and inappropriate vehicles, equipment and facilities. At present there are no scientific waste disposal facilities, the waste is dumped in the low lying areas and along the main corridors by crude open dumping method. Sometimes waste is burnt in open causing health hazards, public nuisance and degradation of environment.
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31. Storm Water Drainage: Patna is a linear city developed along the southern bank of River Ganga. Topography is plain and gently slopes toward south and east. Due to the predominantly flat topography of the city, the accumulation of rain water during monsoon is a regular feature in most parts of the city. The existing drainage system has been divided in four zones. The total length of storm water drains is 1800 km, which covers about 64 percent of the road length, is maintained by PMC. The rain water collected through the drainage channels ultimately discharged in to the River Ganga / River Punpun by pumping. There is a partial separate sewerage system in the city and the wastewater often finds its way into storm water drains and finally reaches the river course.
32. The topography of the Gaya city is predominantly flat and dotted by few stand alone hillocks. The general slope of the city is from west to east and the natural drainage is governed by River Falgu flowing from south to north. Open drains are provided in the city to carry the storm water.
33. The major issues identified in the storm water drainage sector that need to be addressed are:
(i) Storm water drains carry a mix of sewage and solid waste in both the towns. (ii) Encroachment of drains and properties constructed on drains cause pollution of surface-water and serious maintenance problem. (iii) Multiplicity of agencies engaged in cleaning and maintenance creates confusion about service delivery responsibilities.
34. Traffic and Transportation: Both Patna and Gaya are well connected to the other parts of the country by rail, road and airways. The internal road network in both the cities is reasonably well developed.
35. The total length of road network in the PMC area spread over 109.22 sq.km is 1,767km, including 53 km of national and state highways and major district roads. Of the total length, 80 percent roads are surfaced. There were around 0.3 million vehicles in Patna city in 2001. The annual vehicle population is growing at 5.7 percent. The city has intermediate public transport (IPT) modes like auto rickshaws, mini buses, and peddled rickshaws.
36. The total length of road network in the GMC area spread over 35.5 sq.km is 105km, including 35 km of national and state highways and major district roads. The average road width is 5.5m which is further reduced to 3.5m due to encroachments. Two National Highways (NHs) pass through the city. NH-83 is a north-south running highway, connecting Gaya to Patna in the north and Dobhi in the south. NH-82 runs east-west and connects Gaya to Bihar Shariff and Mokama in the east and Dudnagar in the west. A bypass runs on the southern side of the city, connecting NH-82 and NH-83.
37. Traffic management is often poor at major junctions, and even where adequate road space exists, poor use of this space adds to, rather than solves, traffic management problems.
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Pedestrian facilities are particularly poor, with a frequent lack of footpaths forcing pedestrians to compete for road space with vehicular traffic. Parking is indiscriminate, taking up road space and, where there are pedestrian footpaths, occupying these. In addition, many roads are poorly lit presenting issues of road safety and personal security.
38. The problems can be summarized as follows.
(i) Congestion and encroachment of roads. (ii) Inefficient and inadequate Intermediate Public Transport (iii) Inadequate parking and terminal facilities. (iv) Inadequate pedestrian facilities and safety for road users. (v) Inadequate traffic engineering and management (vi) Inadequate maintenance of roads. (vii) Poor street lighting
39. The Urban Development Department (UDD) is the administrative department for the project towns. In addition, the Bihar Rajya Jal Parshad and Public Health Engineering Department are the providers of water supply, and sewerage and drainage services to the project towns. In addition to this, there are organizations Bihar Rajya Pul Nirman Nigam and Road Construction Department whose functions impact on the urban areas.
40. Effective direction and management of the sector is compromised by the lack of an effective mechanism for inter-departmental allocation of business. Operationally, the allied and compatible businesses of these departments are currently not arranged to achieve efficient and effective functioning. All urban-related matters should ideally be brought together under one agency – preferably UDD.
41. The State has yet to prepare a statement on its urban policy or strategy. A policy statement should ideally indicate what the state sees as the future development trajectory of the sector, and what stakeholders and the civil society would be required to do to support the policy. In the absence of such a unified policy document, and under the current institutional framework, the onus in this regard falls only on the identified agency as may be nominated by the Rules of Business of the Government, to undertake a particular action, to the exclusion of the others concerned. This can lead to a one-dimensional approach to the multidimensional issue of urban development and management, leading to inadequate results and the sub-optimal use of resources.
42. An urban policy is required in order to influence the policy decisions of other departments and agencies which currently follow their own policy and strategic directions in their part of the sector. At present, while GoB through UDD is attempting to attract investment to the sector, it also needs to ensure that supporting activities and investments of other departments and agencies are brought into close alignment with the urban sector vision. Notwithstanding the complexity of the process and activities which comprise “urban development and management” which cannot be handled by one omnibus department, there needs to be a clearer focus somewhere at the departmental level where the different
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threads in urban management can be woven together into a single meaningful pattern, to facilitate: (i) urban policy integration, and (ii) a single-window view of urban development and management issues. Neither UDD nor any other state department is currently equipped to play this role.
43. At the local (town) level, the UDD is the administrative department for the state’s ULBs. The ULBs are currently governed by the New Model Municipal Act. The typical municipal functions such as creation of water supply and sewerage system are currently performed by non-municipal agencies (BRJP and PHED).
44. However, as the things stand now, institutionally, the municipalities are in no position to take on these responsibilities due to constraints which include a lack of technical competence and financial strength, and inadequate management capacity. The ULBs will need time and significant capacity building to develop preparedness to carry out their responsibilities in respect of these functions. At the same time, the present institutional arrangement for these municipal functions is detrimental to healthy growth of the institution of local (self) government.
45. The municipal authorities lack a central focus on urban management, for which the elected body is not the only institution that operates in an urban area. Among the other major agencies involved in the project towns are the Road Construction Department; Regional Transport Office; Bihar State Electricity Board; and Bihar State Pollution Control Board. In addition, the municipalities also interact with the District Magistrates, and the various departments of the State Government: Transport, Tourism etc. The issue is one of overlapping functional and territorial jurisdictions of all these agencies vis-à-vis the municipalities. In reality, there is no single authority in charge of the overall destiny of the towns.
46. As a part of the municipal strengthening program, it is also necessary that the planning role and capacity of the municipalities be augmented. Planning units are required in the municipalities which should have access to an appropriate range of technical skills, including town planners, economists, sociologists, geographers, statisticians etc. Other appropriate arrangements, such as zonal planning offices are required.
47. Key areas which require addressing if the urban sector is to be able to progress as anticipated by GoB are:
(i) The strengthening of ULBs through capacity building initiatives (ii) Developing competence to prepare development plans (iii) Empowering local governments in urban land management (iv) Privatization of infrastructure (v) Urban housing (with an emphasis on the weaker section and also private participation and slum improvement on a wider scale) (vi) Mobilization of financial resources (tariff revision, reduction in the establishment budget and improvement in the self-assessment of property tax to gradually reduce the dependency of the ULBs on the state exchequer)
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(vii) Improved fiscal management: (accounting and auditing, budgeting for capital and revenue expenditure, billing and collection, and accountability in utilization of funds).
48. Some of the identified key areas where improvement will be required to improve the functioning and effectiveness of UDD are:
(i) The current capacity for policy analysis needs to be fully developed with the benefit of an adequate data-based management system to: (i) provide input required for informed policy planning; and (ii) develop and supervise programs and projects; (ii) The efficient management information systems. (iii) Lack of effective data analysis and information management skills represents a key constraint to informed decision making. This constraint needs to be removed. (iv) Analysis of comparative municipal performance against predetermined benchmarks needs to be undertaken; and (v) There is a need for improved information flows between the ULBs and the UDD or other agencies, for better project implementation (work on developing e-governance is underway);
1. Land Use Planning and Development
49. The Town and Country Planning Organization (TCPO) was the primarily responsible for preparing and publishing the Master Plans in accordance with the Bihar Town Planning and Improvement Trust Act, 1954. The state head office of Town and Country Planning Department is located within the UDD at Patna. This department is responsible for preparation, implementation and enforcement of master plans. After the introduction of Bihar Municipal Act 2007, the earlier town planning act has been repealed. Now the municipalities shall have its own town planning section, and shall be responsible for preparation of master plans.
50. Preparation of Master Plans for eight cities including Patna and Gaya is under preparation. The Draft Master Plan for Patna urban areas has been prepared, while master plans for Gaya, Darbhanga, Muzaffarpur, Bihar Shariff, and Arah, Rajgir, and Bhagalpur town are under preparation.
2. Urban Governance
51. Management and delivery of urban basic services is governed by various institutions in the State. At the local-level, the Urban Local Body is responsible for providing the service and managing it; at the State-level, the Urban Development Department (UDD) and organizations under its purview manage and administer urban basic services. Institutions of local governance in urban areas are classified according to certain criteria like size of population, economic activity of this population, and the revenue generated thereby into: (i) city corporations (CCs); (ii) municipality and (iii) town panchayats (TPs). According to GoB Municipal Statistics, Bihar has 122 urban local bodies (ULBs) including 7 Municipal
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Corporations. ULBs, including 42 Municipal Councils and 73 Town Panchayats, are upgraded periodically based on demographic and economic change.
52. The Urban Development Department of the Government of Bihar is an administrative body dealing with policy matters related to water supply, sanitation, urban planning, development and administration. The municipal administration and institutional structure for urban governance in Bihar is detailed in Table 3.
53. District Urban Administration. In addition to involvement of various institutions in the development of local-level infrastructure, the Urban Development Department controls local-level governance through the Director Local Bodies. The District Magistrate (DM) of each district is also involved in various administrative and operational activities of the ULB – approval on major projects is sought from the DM.
Table 3: Urban Governance Responsibility Agency Responsibilities Coverage Urban Development Policy, planning and administration of all urban Urban Bihar Department (UDD) departments, Corporations and Development Authorities.
Bihar Urban Development Nodal agency for JNNURM and UIDSSMT Urban Bihar Agency projects Director Local Bodies Urban policy, supervision of municipalities, Municipalities and redressal of public grievances co-ordination of town panchayats select State and national level programs and projects. Municipalities and Delivery and maintenance of obligatory, special Within the area Corporations and discretionary services and functions under their stipulated under Acts and subsequent jurisdiction amendments. Public Health Engineering Responsible for creation of water supply and Bihar Department sanitation infrastructure in Bihar, and operation and maintenance in areas based on request from ULBs, through the State Government Bihar Rajya Jal Parshad Bihar State Water Supply and Sewage Urban Bihar (BRJP) (BISWAS) Board was established on 8th June 1979 under an ordinance enacted as Act 56 of 1982. BISWAS Board, now known as BRJP, is responsible for construction of water supply, sewerage and drainage schemes. Bihar Rajya Pul Nirman A state owned company formed in 1956 for Bihar Nigam (BRPNN) construction of bridges/ flyovers/ roads and maintenance of bridges as well as toll collection. District Urban Preparing outline and comprehensive Corporations and Development Authorities development plans, implement plan (scrutiny and all District approve) and land development. Headquarters Bihar Housing Board Development of urban housing. Bihar (BHB)
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Agency Responsibilities Coverage Road Construction Responsible for maintenance and construction of Bihar Department major roads in the state Bihar State Pollution Created for enforcement of environmental Bihar Control Board protection and pollution control regulations like Water Act, 1974, Air Act, 1986, Environment (Protection) Act, 1981.
C. Urban Finance, Financing and Funding Sources
1. State Level
54. The state’s revenue receipts consist of tax and non-tax revenue and receipts from the central government as its share of national taxes. The main source of state’s tax revenue is sales tax, which accounts for about 49 percent of total tax revenue. The buoyancy in the state’s taxes and other receipts has lagged behind the growth in revenue expenditure. State’s own revenue receipts, as a percent of revenue expenditure is only 23 percent.
55. It is observed that during the period 2002-03 to 2005-06 (Table 4) the state tax revenue grew by 8.5 percent annually, which is mainly due to an increase in the sales tax revenue. During the same period, the non-tax revenue also grew sharply by 26.1 percent. As against the overall annual increase in the State’s revenue of 10.3 percent, the revenue expenditure increased by 17.4 percent. The overall deficit in 2006-07 is a cause of concern, at Rs.3,477 million, even though there was surplus in revenue account to the extent of Rs. 24, 982 million. The state finances were heavily burdened with its commitment for servicing ‘public debt’ and interest payment. Bihar’s public debt was 70 percent of the State Domestic Product as against the “all States” average of 34% in the year 2005-061 . Cumulative loans outstanding as of 31st March 2007 were Rs. 442,262 million comprising of market borrowings and other loans from central government and others. The debt burden is rising. In 2006-07, of the total loan receipt of Rs.33,700 million, entire amount was used to meet the debt service requirements of Rs. 48,822 million (Rs. 16,421 million loan repayment and Rs. 32,401 million interest payments).
1 Source: Economic Survey 2006-07
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Table 4: State Financial Position Particulars Actuals Budget 2002-03 2003-04 2004-05 2005-06 CAGR 2006-07 Rs. Million % Rs Million Revenue Receipts Share of Central Taxes 65,261 75,985 91,220 104,214 16.9 121,575 State Taxes 27,842 29,190 33,423 35,610 8.5 45,216 (of which Sales Tax) (16,476) (16372) (18,905) (17,336) 1.7 (23,647) Non Tax Revenue 2,608 3,203 4,177 5,223 26.1 3,424 Grant-in-aid Central 13,973 16,176 28,318 33,327 33.6 53,693 Government Total Revenue Receipts 109,683 124,555 157,139 178,374 17.6 223,908 Revenue Expenditure Plan 30,710 52,020 34,760 48,980 16.8 92,440 Non-Plan 91,839 75,087 111,623 128,579 11.9 125,355 (of which Debt Service) (30,220) (33,430) (34,740) (36,490) 6.5 (42,100) Total Revenue 122,549 127,107 146,383 177,559 13.2 217,795 Expenditure Revenue Surplus / (12,866) (2,552) 10,756 815 6,113 (Deficit) Capital Expenditure Plan and Non-Plan 32,501 97,663 54,147 48,121 14.0 74,415 (of which Loan payment) (15,335) (56,530) (30,872) (9,808) -13.8 (21,469) Total Capital 32,501 97,663 54,147 48,121 14.0 74,415 Expenditure Surplus/ (Deficit) after (45,367) (100,215) (43,391) (47,306) (68302) Capital Expenditure Capital Receipts Recovery of Loans 156 105 148 509 48.3 512 Borrowings and other 51,601 89,066 88,241 48,580 -2.0 78,007 liabilities Total Capital Receipts 51,757 89,171 88,389 49,089 78,519 Net Consolidated Fund 6,390 (11,044) 44,998 1,783 10,217 Surplus / -Deficit Source: State Budget
2. Municipal Level
56. Overview: Initial discussions were held with concerned municipal officials to ascertain the current financial strengths and weakness. Both the Municipal Corporations (MCs) follow the cash-based accounting system. With the current accounting system, it is not possible to track and manage receivables and payables, and assets and liabilities. Information on the cost of providing services is not determined precisely. The absence of an efficient financial information system means that only a limited assessment is possible as the available data is generally incomplete and often inconsistent. The proposed Bihar Urban Development Project calls for a large investment that will have major impacts on the MCs’ cash flows requiring greater financial efficiency and a better organized approach in management of resources.
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57. Analysis of Current Financial Practices and Position: Municipal revenue is primarily from tax sources such as holding tax (property tax). Apart from this, rentals from MC- owned properties, market fees etc are also an important part of the revenue. External source revenue consists of grants under the State Finance Commission, and Plan grants released by the State Government. Capital receipts are almost fully funded by the Government and are for specific projects such as Natural Calamities, etc. The main sources of municipal revenue are discussed below:
(i) Holding Tax. All the MCs follow the Annual Rental Value method of levy and collection of house (property) tax. There is scope for increasing coverage of properties under house tax in the case of MCs covered under the Project by carrying out fresh surveys.
(ii) Other Revenues. The other taxes include water tax, sewage tax, health tax, education cess and lighting tax. These are part of property tax and collected along with holding tax.
(iii) Government Transfer and Devolution. A significant portion of the revenue expenses are met through devolution or transfers from Government as per the recommendations of the State Finance Commission (SFC). Funds are also received from State Government against specific uses and purposes. Stamp duty is also transferred by Government. In addition, MCs are receiving money against specified activities under the Eleventh and Twelfth Finance commission.
3. Performance Assessment
58. A financial assessment based on the available financial data of Patna, Gaya and other MCs shows that:
(i) Own revenues accounted for around 60 percent of total receipts. Assigned revenues from the government were 11 percent and other grant support 29 percent.
(ii) Although holding (house) tax is the most important source of own revenue, over the years it has been growing at a slow rate. The major reasons for this include: lack of public awareness; house tax collection and in some instances the billing has reduced; non-enforcement and absence of recent surveys has resulted in substantial number of properties escaping the tax net or under assessed; low buoyancy in existing tax system unless rates are revised regularly; lack of political will to enforce collection; and, low initiative to collect taxes and enforce legal action.
(iii) Low collection rate and high outstanding indicate that proper management of tax dues would not only lead to significant immediate cash inflow but would help improve the financial strength on a sustainable basis. The suggestions in this context that may need to be explored include:
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• Use of scientific methods (property surveys, GIS, mapping etc.) to increase the property tax net for under- or non-assessed properties, and induce more effective collection; • Rationalize procedure for self-assessment leading to reduced paperwork and duplication of effort; • Enforcement of legal provisions against defaulters for exemplary punishment; • Implement incentive-based tax collection system with external tax collectors; and • Use ward committees and neighborhood groups to create awareness and facilitate collection of taxes.
(iv) The other issues that need mentioning include:
• Continuance of state support; • Poor budgeting, MIS, financial discipline and management; • High recurring establishment costs; • Absence of innovative resource mobilization and leveraging; • Low buoyancy of taxes and supporting legislation; • Weak asset management and revenue generation from passive assets; • Outdated cash based accounting; • Arrears and incomplete financial records; and • Low capacity, training and motivation of staff.
59. User charges: No separate user charges are being levied now for water and other municipal services provided by MCs. At present, Water Tax (2% of Annual Rental Value – ARV), Education Tax (1.25% of ARV), Health Tax (at 1.25% of ARV), Latrine Tax (2.00%), Holding Tax (2.5% of ARV) are being collected as part of Holding (Property) Tax (total 9% of ARV). It is very important that services like water, sewerage etc. are charged based on actual cost, initially to recover at least part of the O&M cost, rising gradually to recover full costs, including debt servicing. This would require both a suitable cost accounting system and awareness campaigns so that people accept the system. At the same time, care has to be taken that the urban poor are not excluded from access to service provision and a model of cross-subsidization through life-line support is built into the recovery mechanism.
60. Dues payable to Bihar State Electricity Board. MCs in the State have defaulted on payment of electricity dues. MCs are not able to pay the Electricity Dues and are dependant on State Government support. Any recovery, even over the medium- or long- term, will severely affect the future cash flows of the MCs.
61. External Sources: The sustainability of the state government support is an issue of concern making it imperative for the project towns to raise their share of their own revenue sources. With the limited ability of the Government to increase non-plan grant and significant assigned revenues not foreseeable in the immediate future, it is imperative that
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the internal source revenues are buoyant sufficiently to improve the level of services provided by the MCs.
62. Summarized financial performance of 7 MCs is available in Appendix 1. Review and analysis of income and expenditure of 7 MCs of Bihar reveals that (i) income from own sources was 60 percent of total revenue income implying MCs heavy reliance on grants from state government for meeting operational and maintenance expenses, (ii) house / property tax was 81 percent of income from own sources, (iii) non-tax income was 18 percent of income from own sources, (iv) assigned revenue and other grants at Rs. 204 million was 40 percent of total revenue income and (v) almost 70 percent of the total revenue expenditure was towards salaries, wages and other allowances to employees.
63. Summarized financial performance of Patna Water Board (integral part of Patna Municipal Corporation) and Gaya Water Board (integral part of Gaya Municipal Corporation) is available in Appendix 2. There is no water tariff or user charge levied at present in Bihar. Only Water Tax is presently being levied as part of Holding or Property Tax and the rate is 2 percent of ARV. Review and analysis of income and expenditure of Patna and Gaya Water Board reveals that income from own sources were not adequate to meet the operation and maintenance expenditure, implying Water Board’s heavy reliance on grants from state government for meeting operational and maintenance expenses. Average percentage of collection efficiency during the period 2002-03 to 2006-07 was around 38 percent.
64. Mandatory reforms, to be introduced and implemented by the ULBs and parastatals, as provided in JNNURM guidelines are:
(i) Adoption of modern, accrual-based double entry system of accounting in Urban Local Bodies/Parastatals; (ii) Introduction of system of e-governance using IT applications like, GIS and MIS for various services provided by ULBs/Parastatals; (iii) Reform of property tax with GIS, so that it becomes major source of revenue for Urban Local Bodies (ULBs) and arrangements for its effective implementation so that collection efficiency reaches at least 85 percent within next seven years; (iv) Levy of reasonable user charges by ULBs/Parastatals with the objective to recover full O&M cost recovery in a phased manner; (v) These cities/towns Internal earmarking within local body, budgets for basic services to the urban poor, and (vi) Provision of basic services to urban poor including security of tenure at affordable prices, improved housing, water supply, sanitation and ensuing delivery of other already existing universal services of the Government for education, health and social security.
65. The provisions in the New Model Municipal Act are in line with the above mandatory reforms. There are proposed changes in the identified sources of revenue in the New Municipal Act.
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66. The New Municipal Act empowers the Municipal Bodies to levy taxes and user charges besides property tax, for e.g. tax on surcharge on transfer of lands and buildings, tax on deficit in parking spaces in any non-residential building, water tax, fire tax, tax on advertisements, other than advertisements published in newspapers, surcharge on entertainment tax, surcharge on electricity consumption within the municipal area, tax on congregations, tax on pilgrims and tourists, and toll – on roads, bridges, ferries and navigable channel and on heavy trucks which shall be heavy goods vehicles, and buses, which shall be heavy passenger motor vehicles, within the meaning of the Motor Vehicles Act, 1988, plying on a public street. The Municipality shall levy user charges for – provision of water-supply, drainage and sewerage, solid waste management, parking of different types of vehicles in different areas and for different periods, stacking of materials or rubbish on public streets for construction, alteration, repair or demolition work of any type, and other specific services rendered in pursuance of the provisions of this Act, at such rates as may be determined from time to time by regulations. Levy, revision of Taxes User charges will be regulated by the State Government.
67. The financial management systems and capacities of the ULBs were reviewed and the consolidated position is given in Appendix 3. The capacities of ULBs have to be built up to enable improved performance in the areas of accounting, financial management and reporting.
4. Strengthening of Municipal Finance and Cost Recovery
68. Emerging Issues for Strengthening of Municipal Finances: Municipal Finance forms the backbone not only of governance issues but also of the issue of infrastructure provision. The effective management of this initiative to strengthen municipal finance would help the project to evolve and succeed in its objective of improving services to the urban poor. For a fiscal package to be productive and adequate for meeting the expenditure needs, certain conditions must be met. Of these, a greater degree of autonomy, a minimum level of fiscal performance and predictability in transfers and resources are central. Under BUDP, it is proposed to approach the issue of Municipal Finance and cost recovery from the following 2 levels: (i) State level – requiring certain policy changes and technical assistance; and (ii) MC level – requiring improvement in the finances of the project towns. At State Level, the initiatives that require review and consideration under the TA are as follows: (i) At the Policy level, there is a need for Increasing implementation of Finance Commission recommendations and transparency in devolvement, and Convergence of ongoing or proposed schemes, and support of initiatives by international support agencies and GoI or State government.
69. State policy on fiscal sustainability: Fiscal strategy for financial discipline and sustainability of the state and municipal finances requires careful review. Given the deteriorating financial condition, the Government will continue to find it difficult to sustain its support to MCs.
70. Benchmarking and Performance monitoring mechanisms: These require: (i) establishment of benchmarks and measurable performance indicators; and (ii) development & introduction of performance based incentives.
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71. Issues at MC Level: At MC level the issues requiring attention and further consideration under the technical assistance are:
(i) Financial Management and MIS - requirements are for: • Updating and reconciliation of accounts • Inventory and management of properties • Establishment of a costing system to enable analysis of cost of services • Implementation of double entry accrual method of accounting • Improved Management information System, Budgetary analysis and financial management techniques
(ii) Revenue Enhancement requirements are to: • Identify un-assessed and under assessed properties. A self-assessment procedure without enforcement and action against defaulters is meaningless • Develop options for revenue generation from passive municipal assets • Levy realistic user charges, aiming at full cost recovery.
(iii) Rationalization of expenditure requires: • Energy and Efficiency audits. • Internal Audit – consider appointing independent internal auditor
(iv) Training and Public awareness requires: • Creation of awareness on self-assessment for property tax, user charges etc. • Training of accounts and audit personnel • Best practice exposure visits • Circulation of MC budgets and greater transparency in operations • Resource leveraging • Evaluation of local options for public-private partnerships and community involvement
72. Cost Recovery. On the pivotal issue of cost recovery, which is the key to sub-project and urban service sustainability, the approach will be based on the following considerations:
• Introduction of the concept of accumulation of costs for providing services and relationship between pricing of services and their actual costs of operation • Targets must match the consumer's affordability in pricing of public utilities, and the issue of cost recovery assumes importance in setting targets • Establishment of alternative cost recovery targets to make the services self supporting. The average incremental cost will indicate the impact on the evaluated cost recovery criteria
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• Suggested consumer tariffs to bear approximate affordability relationships. In the event of these being found non-affordable, a combination of financing alternatives will be developed • Cross-subsidy between consumers’ affordability levels and between the sub- projects • Review of the Government Policy on tariff adjustment to suggest frequency and adequacy of increases.
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IV. EXTERNAL ASSISTANCE
A. Country Assistance
73. There are three types of agencies providing assistance in India: multilateral donors; bilateral donors; and foundation assistance. The multilateral donors are the Asian Development Bank (ADB), the World Bank (WB), the United Nations (UN), and the European Union (EU). The types of assistance include market rate loans, various concession loans, and grants. Loans extended by ADB and the WB have long-term repayment and grace periods. Among the United Nations agencies, the United Nations Development Program (UNDP) is the largest source of assistance. The EU extends grants and has recently focused on the environment sector with thrust on training and capacity building for government and non-governmental organizations. The United Kingdom’s Department for International Development (DFID) and the United States Agency for International Development (USAID) are the two major bilateral donors in the urban sector. DFID has historically been a large assistance provider to India. Since the 1990s, DFID’s focus has been on the alleviation of poverty through Slum Development Programs, which also has a strong component on improving environmental health. DFID’s program has two separate policies covering ‘environment’: the Water and Sanitation Policy, and the Urban Poverty Alleviation Policy. The Japanese Bank for International Cooperation (JBIC) provides project-tied aid in the form of soft loans at a low rate of interest. Though JBIC assists infrastructure projects, environmental considerations are at priority. Aus Aid is also providing assistance for urban water supply project, though in a very limited scale. Kreditanstalt fur Wiederaufbau (KfW) has been providing assistance primarily for rural water supply and sanitation sector. Appendix 4 details on External Assistance to India.
74. A recent World Bank Study shows that the external assistance for environment improvement has totaled US$ 9.9 billion for the years 1995-2000. Of this, about US$ 2.7 billion (28 percent) has been for urban infrastructure, of which US$ 2.2 billion (81 percent) goes to water and sanitation projects, while US$ 525 million (19 percent) goes to slum up-gradation. Countrywide or multi-state projects get the maximum share (29 percent) followed by Tamil Nadu, Maharashtra and Karnataka (15 percent each). Since 1990s, the GoI has treated external assistance to states as “additionality” over the plan allocations. This assistance was earlier channeled based on a 70:30 loan/grant ratio at a fixed interest rate. The foreign exchange risk is borne by the GoI.
75. ADB’s involvement in India’s urban sector began in 1993 with a technical assistance (TA) to prepare an urban infrastructure project in Karnataka. Since then ADB has provided 31 TA grants totaling US$ 17 million to prepare projects and support capacity building. Since 1995, ADB has approved loans for 12 projects in the urban sector, totaling over US$ 2.9 billion: Karnataka Urban Infrastructure Development (US$ 105 million), Rajasthan Urban Infrastructure Development (US$ 250 million), Karnataka Urban Development and Coastal Environment Management (US$ 175 million), Urban Environmental Infrastructure Facility (US$ 200 million), Kolkata Environmental Improvement (US$ 258 million), Housing Finance I and II (US$ 420 million), Urban Water Supply and Environmental
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Improvement in Madhya Pradesh (US$ 181 million), Kerala Sustainable Urban Development Project (US$ 316 million), and North Karnataka Urban Sector Investment Program (NKUSIP). Uttaranchal Urban Sector Development Investment Program (US$ 350 million), Rajasthan Urban Sector Development Investment Program (US$ 393 million), Jammu and Kashmir Urban Infrastructure Development Program (US$ 250 million). In addition, ADB has approved a US$ 500 million loan for Gujarat Earthquake Rehabilitation and Reconstruction in 2001.
B. State Assistance
76. The State has hardly any experience in implementing externally aided urban development projects, at least in the recent past. Currently, two externally aided projects - one in Transport & Communications Sector and the other in Health & Other Social Services Sector, are proposed for implementation. In addition, DFID is expected to provide certain assistance in Bihar Strengthening Urban Management for Inclusive Growth Program. These are briefly described below:
1. MFF - Bihar State Roads Investment Program (Facility Concept)
77. The proposed investment program, with a loan of US $ 500 Million from ADB, is to rehabilitate and improve about 1,600 km of state highways and 2,000 km of major district roads identified under state road development programs. The investment program will also provide overall sector management capacity by exposing road sector institutions and contractors to modern construction management. The proposed investment program will improve transport efficiency of the state road network, which will contribute to expansion of economic opportunities and poverty reduction. This will be realized by improving the state road network and enhancing State Government of Bihar's capacity for road asset development and management.
2. Bihar Rural Livelihoods Project – “JEEVIKA”
78. The project objective is to enhance social and economic empowerment of the rural poor in Bihar at a project cost of US $ 70 Million with financial assistance from World Bank. The project has four components: 1) Community Institution Development will build and strengthen primary and federated social and economic community institutions; 2) Community Investment Fund involves transfer of financial and technical resources to the Community Based Organizations on a demand driven basis for use as a catalyst to improve their livelihoods; 3) Technical Assistance Fund will improve quality and qualify of service provision by public, cooperative, community and private service providers. 4)The fund will also promote use of Public – Private Partnerships in improving the supply of key support services for the community organizations and federations in the areas of institution building, finance and livelihoods enhancement; Project Management will facilitate overall coordination, implementation, and financial management, monitoring and learning of the project at state and district levels.
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3. Design, Interim Support and implementation of Bihar Strengthening Urban Management for Inclusive Growth Program
79. DFID has recently initiated a new program to improve the capacities of municipal bodies to attract investment in urban areas and provide better services, on a sustainable basis to all urban citizens, particularly the poor. The key expected outputs of the program are; a) to demonstrate the enhanced capacities of the selected ULBs to plan, implement and monitors programs that improve infrastructure and service delivery; b) ULBs to improve capacities to raise and manage financial resources effectively; c) Increased capacity to facilitate private sector investment in housing and commercial enterprises in identified urban centres; and ULBs promote and manage growth to facilitate livelihoods for the poor
C. Lessons Learnt
80. The experience of ADB in implementing various urban development projects in India has provided a number of critical lessons, which may as well be applicable to Bihar Urban Development Program. These are generally as follows:
(i) Integrated urban development projects are inherently complex, given that the projects typically include multiple sub-sector investments for more than one urban area, along with policy reform, capacity building, and community participation components.
(ii) The complexity necessarily calls for greater coordination of government executing agencies and concerned local institutions, stronger technical, institutional, and administrative capacities and participation of project stakeholders and beneficiaries.
(iii) The projects and its various components need to be well defined in scope and scale. Care should be taken to avoid inclusion of too many sub-projects and/ or multiple implementing agencies in the final investment program to avoid complication in decision-making causing delay in implementation.
(iv) The project formulation needs active participation of line agencies, to achieve understanding and political support.
(v) Most of the externally funded urban development projects have been large and complex for the limited planning, engineering and implementation capacity of the state and the ULBs. Absorptive as well as implementation capacities therefore need to be carefully assessed when considering the number of sub-sectors, and the kind of implementing agencies.
(vi) A realistic time frame is needed for implementation of urban reforms, especially where restructuring the local bodies are concerned.
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(vii) The reform of ULBs needs to be steered with great sensitivity and patience as these are highly sensitive political entities.
(viii) Emphasis to be given on implementation of the basic policy measures at the initial stage of project implementation itself. There is a need to provide a broad base to the reform process across each ULB and also at the state level, to reflect commitment of the authorities concerned.
(ix) Reform of municipal finances, particularly property tax and imposition/ revision of water tariff, and urban sector reform are crucially linked with sustainability of urban development projects. Introducing appropriate regulatory and pricing framework at an early stage will greatly facilitate the implementation process.
(x) Land acquisition is of particular concern, the primary cause of delay in implementing urban infrastructure projects.
(xi) Delays at various levels of government approval, lack of timely and adequate releases of counterpart funds, and delays in selection of consultants are other serious factors for delay in project implementation.
(xii) It is important to have a senior level officer in the state government as Project Director who can lead the project effectively. Projects need early and visible real gains in order to satisfy high political expectations.
(xiii) There is need for clarity on all key decisions and their early finalization to avoid leaving issues open to interpretation later.
(xiv) Maximum benefits should be taken by bringing together other ongoing locally and internationally funded relevant programs.
(xv) The project management unit (PMU) and project implementation units (PIU) have been under-staffed in general. Government resources have not been available in the requisite scale and quality to provide technical support or train the local project staff. The capacity building of the executing and implementing agencies is needed to develop an efficient management system within the agencies to monitor and supervise all activities under the project, train key project stakeholders on implementation arrangements, ADB policies and procedures, and urban sector issues and provide public consultations and participation program to involve project beneficiaries in identifying and developing investment components.
(xvi) Inadequate, inaccurate, out-dated or incomplete data on various facets including non availability of updated maps was noted as a serious constraint in project formulation and design.
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(xvii) Community participation process, institutional strengthening and capacity building process should start prior to the project implementation and continue throughout the implementation stage. Failing to do so, the process of urban reforms may suffer under the tempo of implementation.
(xviii) A demand-based approach is needed to design the project size and sub-sectors. Implementing agencies should find out what potential users want and what resources they are willing to apply to finance and manage the installed systems. There is a need to design the systems, financing mechanisms, and support structures that are best suited to their needs.
(xix) The capacity building of the executing and implementing agencies is needed to develop an efficient management system within the agencies to monitor and supervise all activities under the project, train key project stakeholders on implementation arrangements, ADB policies and procedures, and urban sector issues and provide public consultations and participation program to involve project beneficiaries in identifying and developing investment components.
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V. City Socio-Economic Context
A. City Role and Function
81. The project cities, Patna and Gaya are important cities in the State exhibiting varied historical origins, size, role and function within the State. Whereas Patna is the State capital, Gaya is not only the second largest city of the State it has got high religious importance. Patna presents a character of historic city, with a number of ancient monuments, and sites of historic, cultural and religious importance. Gaya is a historic city and a very important religious centre for the Hindus. The history of Gaya has a unique place in the evolution and of development of Hindu civilization. The world famous Buddhist centre of Bodh Gaya is located about 13 km south of Gaya.
B. Population and Urbanization
82. The population of the two cities according to the Census 2001 is 1,751,876 and represents about 21 percent of the State’s urban population. The decadal urban population growth rate between census years of 1991and 2001 for Patna and Gaya were 49.01 percent and 33.43 percent, respectively. Census 2001 population and number of population surveyed along with certain other useful information are noted in Table 5 Table 5: Demographic Characteristics Sl. No. Indicator Patna Gaya Census 2001 Primary Census 2001 Primary Survey Survey 1 Population 1,366,444 3680 385,432 1,752 2 Population (0-6 years) 182,037 617 57,840 258 (13%) (16.8%) (15%) (14.7%) 3 No. of households 220,022 655 53,597 242 4 Percentage of SC Population 8.5% 4.6% 9.6 16.5% 5 Percentage of ST Population 0.3% 1.4% 0.2% 2% 6 Average Household Size 6.2 5.6 7.2 7.2 7 Sex Ratio 831 796 885 819 8 Sex Ratio (0-6 Years) 896 991 936 955 9 Sex Ratio (SC) 839 783 877 860 10 Sex Ratio (ST) 909 960 1007 1002 11 Literacy 70.4 - 77.4 - 12 Workforce Participation Rate 25 21.19 24.54 - 13 Dependency Ratio 2.94 3.71 1.3 1.17 Source: Census 2001 and Primary Survey.
83. For the purpose of project preparation and in the absence of any formal population projections from ULBs or districts, estimates of population growth to the design year 2041 were carried out under the Project. A pragmatic approach was applied for the projection, taking into account local circumstances and appreciation of the underlying factors behind changes in growth rates over the last few decades. These projections are for design and
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project preparatory purposes and are not intended to reflect population forecasts based on in-depth demographic analysis. Table 6 indicates the population projection for the two cities up to the year 2041.
Table 6: Population Projection for Project Cities Population (million) City 2001 2011 2021 2031 2041 Patna 1.37 1.70 2.15 2.67 3.25 Gaya 0.39 0.49 0.61 0.74 0.89
C. Socio-economic Baseline
84. Baseline socio-economic profile of the two cities was established using primary data. Primary data collection included an extensive sample household survey in each city. The objective was to identify issues in service delivery, as expressed by the consumers/ citizens and address these concerns while formulating high priority interventions for the towns. Policy interventions in terms of taxation, rationalization of charges, etc. emerge from the baseline assessment. Some of the summarized findings are presented below. Details are available in individual town reports (CLIP).
1. Access to Services
85. Water Supply: The following were citizen perceptions of the water supply services in the two project cities: • The survey reveals that roughly about 30 percent of non-slum households in Patna and 46 percent in Gaya have access to individual water service connections. A fairly large proportion of the non-slum population in both towns (~30 percent in Patna and ~40 percent in Gaya) is primarily dependent on neighborhood level water supply facilities.
• The divide between slum and non-slum households is evident in both towns. Only 7 percent of slum households in Patna and 26 percent in Gaya reported access to individual water service connections. Dependence on neighborhood level sources was reported by 84 percent and 72 percent slum households in Patna and Gaya respectively.
• Eighty three percent of non-slum households in Patna without access to WSC stated preference for individual connections; 55 percent indicated willingness to pay for improved water supply. In case of slum households in Patna, 66 percent indicated preference for individual water service connections and only 10 percent indicated willingness to pay.
• In Gaya, 76 percent of the non-slum households without access to WSC stated preference for individual connections; 68 percent households indicated willingness
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to pay for improved water supply. In case of slum households in Gaya, 67 percent indicated preference for individual water service connections and only 19 percent stated willingness to pay.
• In Patna, improvement in water supply is rated in the first priority followed by sewerage and sanitation. In Gaya, water supply and solid waste management are rated as the first and second priorities of slum and non-slum residents. These stated priorities of stakeholders informed project preparation.
86. Sanitation: The following were citizen perceptions on the sanitation services in the two cities: • Approximately ninety four percent of non-slum households in Patna and 91 percent in Gaya have access to individual toilets. However, of these households, 14 percent in Patna and 7 percent in Gaya have toilets directly discharging wastewater into drains. • Among slum households, 49 percent in Patna and only 16 percent in Gaya have access to individual toilets. • Sewerage is ranked as the second most desired service in Patna and fourth in Gaya. • Willingness to pay for improved services exhibited the following pattern, in Patna, of the 44 percent households willing to avail UGD connection, 65 percent are willing to pay user charges; while in Gaya, of the 25 percent sample households willing to avail UGD connection, 95 percent are ready to pay for improved services.
87. Solid Waste Disposal: The following results were obtained from the baseline survey: • About 47 percent and 25 percent of surveyed non-slum households in Patna and Gaya respectively reported access to household (door- to door) collection facility while an additional ~10 percent in both towns reported access to municipal vats in the vicinity. • In case of slum households in Patna, roughly 16 percent have access to door-to- door collection and about 6 percent dispose solid waste in municipal vats in the vicinity; in Gaya, none have access to door-to-door collection facility and about 15 percent dispose waste in vats. • Solid waste is ranked as fourth priority in Patna and second priority in Gaya. • Thirty five percent non-slum households in Patna and 72 percent in Gaya expressed willingness to pay Rs. 25-30 per month for solid waste disposal.
88. Drainage: Thirty percent of surveyed non-slum households in Patna and only about 10 percent in Gaya reported incidence of flooding in their area in the past year. Of these, a majority indicated flooding two to four times a year. A majority of households in both cities reported the presence of open drains.
89. Willingness to pay: The results of the survey in terms of stated willingness to pay is summarized in Table 7.
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Table 7: Willingness to Pay for Services City Categories Water Supply Sanitation SWM
Poor 47% 6% 10% Patna Non poor 55% 25% 35% Poor 60% 61% 0% Gaya Non poor 68% 19% 72% Source: Primary Survey.
Household Profile
90. Household Size: The average household size of non-slum households is 6.1 in Patna and 6.98 in Gaya (Primary Survey).
91. Household Income: Less than 6 percent of non-slum households in Patna and a little over 14 percent in Gaya fall in the BPL category; 13 percent in Patna and >32 percent in Gaya belong to the Low Income Group category. Over 51 percent households in Patna and 42 percent in Gaya belong to the middle income groups. Only about 27 percent and ~9 percent non-slum households in Patna and Gaya respectively belong to the higher income groups.
The mean monthly family income for slum households is Rs. 3565 in Patna and Rs. 2253 in Gaya respectively.
92. Household Expenditure: The mean monthly household expenditure for non-slum households in Patna is Rs. 9058. The mean per capita monthly expenditure is Rs. 1618.
In Gaya, the mean monthly household expenditure for non-slum households is Rs. 6483. The mean per capita monthly expenditure is Rs. 929.
Among slum households, the mean monthly household expenditure is Rs. 3698 in Patna and Rs. 2084 in Gaya.
93. Land and Housing: A majority of non-slum households in Patna and Gaya (>70 percent) live in pucca houses and only 5-7 percent live in kutcha houses in the two cities. Roughly 68 percent non-slum households in Patna and 90 percent in Gaya comprise owners, the balance comprising tenants. In slums, as many as 78 percent households in Patna and 52 percent in Gaya reported lack of legal title over land and property; however no major eviction threat was captured through the slum household survey in either town.
94. Health: The mean distance of households from Government hospitals in Patna and Gaya
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is similar at roughly 3 Km; private clinics are located closer (1.5 Km). Malaria and respiratory ailments were the most common ailments reported by households using the 180 day recall method in both towns.
95. Education: Among the non-slum sample, only 4.5 percent and 5.6 percent of households reported illiterate Chief Wage Earners (CWE). A majority (>50 percent) of households reported CWEs with graduation or higher degrees in Patna, while in Gaya, this figure was a little over 40 percent.
Over 50 percent of sample slum households in both Patna and Gaya reported illiterate Chief Wage Earners. Less than 8 percent slum households in Patna and less than 4 percent in Gaya reported CWEs with qualifications of graduate and above.
96. Employment: In Patna, five percent of Chief Wage Earners of sample non-slum households comprise unskilled workers and 13 percent are unemployed; in Gaya, a negligible proportion of CWEs were unskilled workers. The predominant occupation is service (24 percent), followed by self-employed (7 percent), business (4 percent) and skilled workers (2 percent) in Patna; the sample recorded for Gaya reveals 14 percent skilled workers, 12 percent in business, and approximately 19 percent each self- employed/in service.
As many as 46.6 percent and 24 percent of the sample slum households in Patna and Gaya respectively reported that the CWE is unskilled or unemployed; ~18 percent and 24 percent are self employed; 12.2 percent and 21 percent are in service; 17.8 percent and 28 percent are skilled workers; while retired CWEs comprise ~1 percent and 3 percent of the sample in Patna and Gaya respectively.
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VI. Gender Analysis and Action Plan
A. Overview
97. Gender disparities are increasingly understood as a major hurdle to development. Gender development indicators (presented in subsequent sections) for Bihar reveal that the status of women in the state is considerably low. This Section presents gender-disaggregated data analysis for all the baseline socio-economic data collected for slum and non-slum households in the project towns, data on status of woman-headed households among the sample and available relevant secondary data.
98. It is increasingly recognized that women represent a distinct clientele with their own requirements. A Gender Action Plan has been prepared for BUDP (presented at the end of this Section), which aims at integrating different circumstances and interests of women / gender perspective at various stages of the Project (design, implementation and monitoring), including resettlement planning and implementation and institutional capacity building2.
B. Status of Women in Bihar
99. The Human Development Index for Bihar, 2001 (0.367) makes it the lowest ranking state in terms of HDI among major states in India. Although Gender Development Index data for Bihar is not available, the demographic and health indicators presented in the following table present a picture of the status of women in Bihar. The state of Bihar shows a poorer performance in comparison with India as a whole, for each of the indicators presented (refer Table 8).
Table 8: Comparison of Health / Education / Welfare Indices of Bihar and India S. No. Item Bihar India 1 Sex ratio (all age groups) 921 932 2 Sex ratio (0-6 years) 942 927 3 Urban Male Work Participation Ratio 37.6 47.2 4 Overall urban literacy rate (%) 60.27 80.30 5 Urban male literacy rate (%) 67.35 75.85 6 Urban Female Literacy Rate (%) 52.10 72.90 7 Urban Female Work Participation 8.9 14.7 Ratio 8 Overall Urban Literacy Rate 9 Urban Female Literacy Rate
2 The Social Development Specialists in the PMU and DSC and the ULB official (Municipal Engineer) designated responsible for environmental and social safeguards and Public Relations Officer/Social Development Officer shall be the key personnel responsible for integration of gender perspectives into the Program. The GAP therefore defines the roles and responsibilities of these personnel/institutions in ensuring integration of gender perspective into the project.
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S. No. Item Bihar India 10 Maternal Mortality Rate (per lakh 452 407 live births, 1998-99) 11 Total Fertility Rate (1998-99) 3.7 3.3 12 Total institutional delivery rate 5.4 18.7 (government) (2002-04) 13 Average age at marriage (girls) 17.4 19.5 14 % of pregnant women with 3+ ANC 19.6 50.1 visits 15 Couple protection rate 24.4 47.6 16 Life expectancy at birth (overall 66.9 68.1 urban) 17 Life expectancy at birth (female 67.6 69.4 urban) Source: Economic Survey, GoB, 2006-07
100. In addition to the above-mentioned indicators, the status of women in Bihar is compared with the national average in Table 9, Table 10 and Table 11 below on women’s autonomy, women’s participation in polls and crimes against women. Though the data is somewhat dated, it provides some indication of the status of women in Bihar.
Table 9: Women’s autonomy in Bihar . % not involved in % who do not need permission % with access to any decision- Go to the market Visit friends/ money making relatives Bihar 13.5 21.7 20.5 66.7 India 9.4 31.6 24.4 59.6 Source: National Family Health Survey – II, 1998-99
101. Women’s participation in polls in Bihar is slightly lower than the national average.
Table 10: Women’s participation in Polls in Bihar Poll % Women Total Bihar (undivided) 54.33 62.57 India 57.23 61.93 Source: Election Commission of India – General Elections, 1999 (13th Lok Sabha)
102. Bihar ranks low among states and Union Territories at 25th place in terms of the rate of total cognizable crimes.
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Table 11: Crimes against women in Bihar, 2000 Incidence of % contribution Rate of total Rank Rank total cognizable to all-India total cognizable among among crimes crimes states/UTs states/UTs (based on (based on rate of total percentage cognizable share of crimes) cognizable crimes) Bihar 6,299 4.5 6.3 25 8 (undivided) India 141,373 100.0 14.1 - - Source: Crime in India, National Crime Records Bureau, Ministry of Home Affairs, New Delhi.
C. Status of Women in BUDP Towns
103. This Section analyses the status of women in the towns selected under the BUDP, based on primary data. An analysis of gender concerns based on responses received from all slum and non-slum households is followed by data on the socio-economic status, housing and basic infrastructure access by woman-headed households in Patna and Gaya respectively.
1. Gender Analysis: Patna
104. Women-specific Household Activities. On an average, women from slum households spend over five hours of their time per day and those belonging to non-slum households spend over four hours per day on household chores, care-giving and social obligations, which are primarily their responsibility. In addition, they are also involved in economic activities (outside the home). Table 12 provides details on time spent by women and mean distance traveled for activities that are largely “women-specific” in most households.
Table 12: Patna - Burden of Household Activities borne by Women Slum Non-slum Mean Distance Mean Time Mean Distance Mean Time (Km) Spent (mins) (Km) Spent (mins) Purchase from market 1.04 44 1.01 23 Drinking water 0.31 26 0.3 20 collection Waste disposal 0.25 10 0.25 10 Medical assistance 0.97 29 0.80 19 Care of children and NA 25 NA 24 elderly Cottage industry NA 92 NA NA Religious/social 0.99 51 1.3 122 activity Other activities 0.77 82 2.5 180 Cooking NA 120 NA 91 Source: Primary Survey
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105. Illiteracy and Drop-outs: Reasons cited for women not attending school are analyzed in the following table. The responsibility for household chores largely rests with women - > 50% of respondents from slum households in Patna stated that women in their families did not attend school as they needed to take care of household chores; while 33% stated that education is not considered important.
106. Among non-slum households, lack of a value system that emphasizes women’s education is the most common reason for illiteracy (refer Table 13).
Table 13: Patna – Predominant Reason cited for non-attendance of school by illiterate women Reason % slum HHs % Non-slum HHs Education not considered 33.33 47.1 important School too far 4.35 23.0 Needed to take care of HH chores 50.73 21.2 Other 11.59 8.7 Total 100 100 Source: Primary Survey
107. The primary reason cited by educated women belonging to slum households (~46%) for non-pursuit of higher studies is that they needed to take care of household chores. Others (~43%) indicated lack of interest in pursuing higher studies. Roughly 70 percent of non- slum households indicated the same reasons for lack of perusal of higher studies by women (refer Table 14).
Table 14: Patna - Reason cited for women not pursuing higher studies Reason % slum HHs % Non-slum HHs Institution too far 3.71 19 Lack of transport 7.41 10 Lack of interest 42.59 49 Needed to take care of HH chores 46.29 22 Total 100.00 100 Source: Primary Survey
108. Type of Ante-natal care available to women: As many as 91% women belonging to slum households in Patna accessed government medical institutions, and only about 9% accessed private institutions for ante-natal care. Among non-slum households, while government hospitals and health centers retain their primacy, private health care enjoys a significant share of the pie at ~40 percent (refer Table 15).
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Table 15: Patna - Type of institution accessed for ante-natal care Type % slum HHs % Non-slum HHs Government Health Centre 15.9 20.5 Government Hospital 75 40.2 Private Hospital/Nursing Home 6.8 17.1 Private Clinic 2.3 22.2 Total 100 100 Source: Primary Survey
109. Perceived Status of women: Sixty-one percent of respondents from slums opined that women did not enjoy the same status as men. Some of the major differences perceived by respondents from slums include (a) economic decisions are made by men alone; and (b) low priority is given to women’s education. A majority of non-slum households (65 percent) indicated that the major differences between the sexes lie in the fact that (a) women are not consulted for major decisions, (b) mainly men are responsible for earning, and (c) men do not like to give liberty to women. A majority of the respondents were men, who cited the above reasons.
110. Age at Marriage: The mean age at marriage for women reported by slum households in Patna is 17 years; however, it ranges between 10 years to 19 years. Among non-slum households in the city, the mean age at marriage is 19.8 years, and its ranges between 17 years to 25 years.
111. Differential Impact of Access to Water and Sanitation on Women: Lack of access to water and sanitation is perceived by respondent households to have a differential impact on women: 73 percent respondent slum households opined that women have problems due to lack of bathing facilities and access to toilets, especially when they are unwell/down with diarrhoea etc. and do not have access to such facilities. The drudgery of women’s household chores increases with lack of access to water, while lack of access to toilets affects women more than men.
2. Status of Woman-headed Households: Patna
112. A little over 10% of sample slum households in Patna and less than 5 percent of non-slum households are woman-headed. Fifteen percent of woman-headed slum households and 26 percent of woman-headed non-slum households have stayed in Patna for <10 years, while ~31 percent comprise migrant households - pointing to a possible lack of strong social networks among such households (refer Table 16).
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Table 16: Patna – Characteristics of Woman-headed households Details Slum HHs Non-slum HHs Woman-headed households (%) 10.48 4.25 Average household size (No.) 8.50 6.15 Dependency ratio (Ratio) 6.53 4.9 Years of residence < 10 years (%) 15.38 26.3 Migrant households (%) 30.76 10.52 Source: Primary Survey
113. Demographic and Socio-economic Characteristics: Over fifty percent of sample woman- headed households in slums in Patna belong to Scheduled Castes and ~8 percent belong to Scheduled Tribes. Almost 70 percent of Chief Wage Earners of woman-headed households in slums are illiterate, almost one-third comprises unskilled workers and ~15% are unemployed and hence have multiple disadvantages. A majority (>80 percent) belong to joint families, pointing to availability of a social support system (refer Table 17).
114. In the non-slum sample, none of the respondent woman-headed households belonged to the Scheduled Castes; roughly 16 percent belong to the Scheduled Tribes. Over 60 percent of CWEs are graduates or post-graduates. Over 80 percent CWEs are either self-employed or in service.
Table 17: Patna - Socio-economic Details of Woman-headed Households % slum WHHs % Non-slum WHHs Social Group SC 53.8 0.0 ST 7.7 15.8 OBC 30.8 15.8 GC 7.7 47.4 Others 0.0 21.1 100 100 Household Type Joint family 84.62 89.5 Nuclear family 15.38 10.5 100 100 Chief Wage Earner Educational Qualification Illiterate 69.2 21.1 Literate but no formal schooling 15.4 0.0 Primary 0.0 10.5 Middle 7.7 0.0 Higher Secondary 0.0 0.0 Graduate 7.7 42.1 Post Graduate 0.0 21.1 PG Professional 0.0 5.3 100 100 Occupation of Chief Wage Earner Unskilled worker 30.77 0.0 Skilled worker 7.69 0.0 Business 7.69 5.3
40 BUDP Main Report
% slum WHHs % Non-slum WHHs Self employed 30.77 36.7 Service 7.69 47.4 Unemployed 15.39 5.3 Retired 0.00 5.3 Total 100 100 Source: Primary Survey
115. Household Income and Expenditure: A majority (>50%) of woman-headed slum households fall in the low income group category (Rs. 2500-5000); while about a third fall in the extremely low income group of 116. The mean expenditure reported by woman-headed slum households is Rs. 3468; while the mean health expenditure reported by such households is Rs. 328 per month. 117. A majority of non-slum woman-headed households (47%) fall in the Rs. 7500-10000 monthly income bracket and 36% have incomes ranging between Rs. 10,000-20,000; roughly 10% and 5% fall in the low income group and lower middle income group categories respectively. 118. The mean monthly expenditure reported by woman-headed non-slum households in Patna is Rs. 9252; the mean monthly expenditure reported on health by such households is Rs. 665 (refer Table 18). Table 18: Patna - Monthly Income of Woman-headed Households Monthly Income % Slum WHHs % Non Slum WHHs < Rs. 1,500 30.8 0.0 Rs. 2,500-5,000 53.8 10.5 Rs. 5,000-7,500 0.0 5.3 Rs. 7,500-10,000 15.4 47.4 Rs. 10,000-15,000 0.0 15.8 Rs. 15,000-20,000 0.0 21.0 > Rs. 20,000 0.0 0.0 Total 100 100 Source: Primary Survey 119. Less than 15 percent of women working as unskilled laborers reported daily wage of Rs. 70 in Patna (refer Table 19). Table 19: Patna - Unskilled Worker Wages received by Women Daily Wages % Slum WHHs Rs. 70 14.3 Rs. 120 14.3 Rs. 150 and above 71.4 Total 100 Source: Primary Survey 41 BUDP Main Report 120. Housing: None of the sample woman-headed slum households live in pucca houses; a majority (>60 percent) live in kutcha houses, in one-room tenements. Over 50 percent woman-headed households live in houses with built-up area less than 250 sq ft. None of the woman-headed slum households pay property tax and a mere 7.7 percent have access to metered electricity connections. 121. On the other hand, the situation is better for non-slum WHH, of which >70 percent live in pucca houses and only 10 percent have kutcha, one-room accommodation. In terms of lack of legal right over house, the situation is similar for both slum and non-slum WHH. A large majority of non-slum WHH have access to metered electricity connections (refer Table 20). Table 20: Patna - Housing Status of Woman-headed Households Building Type % slum WHHs % non-slum WHHs Pucca 0.0 73.68 Semi-pucca 38.5 15.79 Kutcha 61.5 10.53 Rooms in dwelling unit (No.) One 61.5 10.53 Two 30.8 36.84 Three 7.7 52.63 Built-up area (sq ft) <250 53.8 10.5 250-500 30.8 10.5 500-1000 15.4 36.8 1000-2000 0.0 31.6 >2000 0.0 10.5 Security of tenure Lack of legal right over house/property 15.4 15.8 Payment of taxes/charges Property tax paid 0 47.36 Metered electricity connection 7.7 84.22 Source: Primary Survey 3. Access to Basic Services 122. Water: Only 8 percent of woman-headed households in slums in Patna reported access to individual water service connections; a large majority are dependent on public sources – 15 percent on public stand posts, 38 percent on hand pumps and another 15 percent on community wells. 123. Sanitation: Almost one-third of woman-headed slum households does not have access to sanitation and have no recourse other than open defecation. Those reporting use of public toilets (30 percent) also switch between open defecation and public toilets (as revealed through Focus Group Discussions). 124. In case of non-slum WHH, about 60 percent do not have access to safe sanitation. 42 BUDP Main Report 125. Eighty-five percent of woman-headed households living in Patna slums and 33 percent of non-slum WHH do not have access to solid waste disposal facilities. 126. Health: Fifteen percent of woman-headed slum households in Patna reported delivery (child-birth) at home with the help of untrained persons. In non-slum WHH, the incidence of delivery at home was reported by ~10 percent households, of which half were conducted by trained personnel and another half by untrained personnel. 127. Details are presented in Table 21. Table 21: Patna - Access of Woman-headed Households to Basic Services % slum WHHs % non-slum WHHs Water (Primary source) IWSC 8 37.5 PSP 15 6.5 HP 38 0.0 Govt. DTW 15 12.5 Pvt. DTW 8 12.5 Community well 15 6.0 Purchase from neighbors 0 0.0 Tanker 0 25.0 Sewerage Toilet with UGD connection 15.4 12.1 Toilet with Septic tank 23.1 21.1 Public toilet 30.8 0.0 Toilet releasing wastewater into drain 0.0 36.8 None 30.8 30.0 Solid waste House to house collection 7.69 60.0 Disposal in Vats 7.69 7.0 Health Delivery at home by trained personnel 0.0 5.26 Delivery at home by untrained personnel 15.38 5.26 Source: Primary Survey 4. Gender Analysis: Gaya 128. Women-specific Household Activities. On an average, women from slum households spend over seven hours of their time per day on household chores, care-giving and social obligations, which are primarily their responsibility. In addition, they are also involved in economic activities (outside the home) (refer Table 22). Women from non-slum households spend over five hours per day on activities that are largely “women-specific” in most households. 43 BUDP Main Report Table 22: Gaya – Burden of Household Activities borne by Women Slum Non-slum Mean Distance Mean Time Mean Distance Mean Time (Km) Spent (mins) (Km) Spent (mins) Purchase from 1.3 40 0.5 25 market Drinking water 1 52.5 0.3 20 collection Waste disposal 0.1 5 0.1 5 Medical assistance 3.8 41 0.50 30 Care of children and NA 180 NA 80 elderly Cottage industry NA 0 NA NA Religious/social 2 90 1 120 activity Other activities - - - - Cooking NA 132 NA 89 Source: Primary Survey 129. Illiteracy and Drop-outs: Reasons cited for women not attending school are analyzed in the following table. The responsibility for household chores largely rests with women – all respondent slums WHH stated that women in their families did not attend school as education is not considered important. In case of non-slum WHH, reasons for non- attendance of school by women are almost equally split between lack of importance being given to education; women need to take care of household chores and other reasons (refer Table 23). Table 23: Gaya - Reason cited for non-attendance of school by illiterate women Reason % slum HHs % Non-slum HHs Education not considered 100 30.0 important School too far 0 0.0 Needed to take care of HH chores 0 36.1 Other 0 33.9 Total 100 100.0 Source: Primary Survey 130. The primary reason cited by women belonging to slum and non-slum households (~40%) for non-pursual of higher studies is that they needed to take care of household chores. Other slum households (~40%) indicated that the institution was located too far. Non-slum households cited lack of interest as the next main reason for not pursuing higher studies (refer Table 24). 44 BUDP Main Report Table 24: Gaya - Reason cited for women not pursuing higher studies Reason % slum HHs % Non-slum HHs Institution too far 40 0 Lack of transport 20 20 Lack of interest 0 30 Needed to take care of HH 40 40 chores Other 0 10 Total 100 100 Source: Primary Survey 131. Type of Ante-natal care available to women- Only about 18% women belonging to slum and non-slum households in Gaya accessed government medical institutions; while about 67% slum households and 82% non-slum households reported access to private institutions for ante-natal care (refer Table 25). Table 25: Gaya - Type of institution accessed for ante-natal care Type % slum HHs % Non-slum HHs Government Health Centre 0.0 0 Government Hospital 18.51 18 Private Hospital/Nursing Home 66.67 82 Other 14.82 0 Total 100.00 100.00 Source: Primary Survey 132. Status of women: Over 70 percent of respondents from slums opined that women did not enjoy the same status as men. 133. The mean age at marriage for women reported by slum households in Gaya is 16 years; however, it ranges between 11 years to 20 years. 134. Seventy percent of non-slum households in Gaya reported that women are not consulted for major decisions and that all economic decisions are made by men. 135. The mean age at marriage for non-slum households in Gaya is 19.7 – the range is between 18 - 28. 136. Differential Impact of Access to Water and Sanitation on Women: Lack of access to sanitation (toilets) is perceived as a major problem by women living in slums as they have to resort to open defecation, need to go furtively, in groups, to filthy locations. A majority of slum households remarked that the lack of availability of water affects women and children, especially girl children more as they are primarily responsible for collecting water. 137. Among non-slum households, only 20 percent respondents reported a perceived 45 BUDP Main Report differential impact of non-availability of water and sanitation on men and women. Lack of access to sanitation by women was viewed as a problem. 5. Status of Woman-headed Households: Gaya 138. Woman-headed households (WHH) comprise ~8 percent of non-slum households and ~10 percent of slum households in Gaya respectively. The average household size of woman- headed households is higher for slum households than that for non-slum households. All WHH in Gaya have stayed in the city for over 10 years, and indicating possible access to social networks (refer Table 26). Table 26: Gaya - Characteristics of Woman-headed households Details Slum HHs Non-slum HHs Woman-headed households (%) 9.67 8.23 Average household size (No.) 7.8 6.42 Dependency ratio (Ratio) 9.4 5.81 Years of residence > 10 years (%) 100 100 Migrant household 0 7.14 Source: Primary Survey 139. Demographic and Socio-economic Characteristics: Over eighty percent of sample woman-headed households in slums in Gaya and more than 60 percent in non-slum areas belong to the Scheduled Castes, indicating multiple vulnerability. Sixty-six percent of Chief Wage Earners (CWEs) of woman-headed households in slums and a third of CWEs from non-slum woman-headed households are illiterate. A majority of CWEs in slum and non-slum WHH are either self-employed or in service. A majority (>90 percent) belong to joint families, pointing to availability of a social support system (refer Table 27). Table 27: Gaya - Socio-economic Details of Woman-headed Households % slum WHHs % Non-slum WHHs Social Group SC 83.33 64.28 ST 0.0 0 OBC 16.66 14.29 GC 0.0 21.43 Others 0.0 0.0 100.0 Household Type Joint family 100 94.85 Nuclear family 0 5.15 100.00 Chief Wage Earner Educational Qualification Illiterate 66 33.33 Literate but no formal schooling - 0 Primary 0 0 Middle 0 8.33 Higher Secondary 17 25.00 Graduate 17 25.00 46 BUDP Main Report % slum WHHs % Non-slum WHHs Post Graduate 0 8.33 PG Professional 0 0 100.00 Occupation of Chief Wage Earner Unskilled worker 0 0 Skilled worker 0 8.33 Business 0 0 Self employed 50 33.33 Service 33 41.68 Unemployed 0 0 Housewife 17 8.33 Retired 0 8.33 Total 100 100 Source: Primary Survey 140. Household Income and Expenditure: All slum households that are woman-headed fall Below Poverty Line, though they do not belong to the lowest income segment. The proportion of WHH in the same segment is fairly high (~40%) among non-slum households as well. A very small proportion of non-slum woman-headed households falls in the >Rs. 15,000 income group (refer Table 28). 141. The mean expenditure reported by woman-headed slum households is Rs. 2153; while the mean health expenditure reported by such households is Rs. 222 per month. 142. The mean expenditure reported by non-slum WHH in Gaya is Rs. 4658. Table 28: Gaya - Monthly Income of Woman-headed Households Monthly Income % Slum WHHs % Non Slum WHHs < Rs. 1,500 0 0 Rs. 1500-2500 100 38.47 Rs. 2,500-5,000 0 30.77 Rs. 5,000-7,500 0 15.38 Rs. 7,500-10,000 0 0 Rs. 10,000-15,000 0 0 Rs. 15,000-20,000 0 15.38 > Rs. 20,000 0 0 Total 100 100 Source: Primary Survey 143. Housing: Table 29 provides a glimpse of housing status of woman-headed households in slum areas and non-slum areas of Gaya. Perhaps the most revealing indicator is that of access to metered electricity connection, which is abysmally low in case of woman-headed slum households. 47 BUDP Main Report Table 29: Gaya - Housing Status of Woman-headed Households % slum WHHs % non-slum WHHs Building Type Pucca 33.33 57.14 Semi-pucca 66.66 21.43 Kutcha 0.0 21.43 No. of rooms in dwelling unit One 33.33 0 Two 33.33 35.71 Three 33.33 64.29 Built-up area (sq ft) <250 50.00 7.14 250-500 33.33 42.86 500-1000 16.67 42.86 1000-2000 0.0 7.14 >2000 0.0 0 Security of tenure Legal right over house/property 100 100 Payment of taxes/charges Property tax paid 50 69.23 Metered electricity connection 16.67 78.57 Source: Primary Survey 6. Access to Basic Services 144. Water: Only 33 percent of woman-headed households in slums in Gaya reported access to individual water service connections; a large majority is dependent on public sources – 50 percent on public standposts, 16.6 percent on community wells. A majority do have access to municipal piped water supply. Among non-slum WHH, IWSC penetration is in the range of 40 percent. 145. Sanitation: Two-third of slum WHH and ~30 percent of non-slum WHH do not have access to sanitation and have to take recourse to open defecation. 146. Roughly 50 percent of slum and non-slum WHH in Gaya reported access to house to house solid waste collection system. 147. Health: A third of slum WHH in Gaya reported deliveries at home, but with trained personnel in attendance. The incidence of deliveries at home is much less among non-slum households. 148. Details are given in Table 30. Gender action plan is given in Table 31 48 BUDP Main Report Table 30: Gaya - Access of Woman-headed Households to Basic Services % slum WHHs % non-slum WHHs Water (Primary source) IWSC 33.33 41.67 PSP 50.00 25.00 HP 0.0 8.33 Govt. DTW 0.0 16.67 Pvt. DTW 0.0 0.0 Community well 16.67 0.0 Individual well 0.0 8.33 Purchase from neighbors 0.0 0.0 Tanker 0.0 0.0 Sewerage Toilet with UGD connection 0.0 0.0 Toilet with Septic tank 16.67 64.28 Public toilet 16.67 0.0 Toilet releasing wastewater into drain 0.0 7.14 None (open defecation) 66.66 28.58 Solid waste House to house collection 50.00 46.15 Disposal in Vats 16.67 23.08 Health Delivery at home by trained personnel 33.33 1.08 Delivery at home by untrained personnel 0.0 0 Source: Primary Survey 49 BUDP Main Report Table 31: Gender Action Plan Area of Focus Objective Activities Task Target Group Indicator Verification Action by Project Design To integrate gender Proactively seek Train community development Women living in Gender Specialists and Project Design perspective in project women from officers slums in project gender sensitized Reports design disadvantaged towns; personnel involved from families as target Conduct participatory planning start of project design Progress Reports To empower women beneficiaries, exercises in pilot slums Woman-headed by giving them ensuring their organized by local NGOs households Ward Committees formed Project Monitoring Local NGOs opportunities to representation and by 2009 Reports participate in project women from non- Identify infrastructure priorities Social from the very slum households in of neighborhood groups in pilot Percentage representation Random checks by Development beginning. ward committees slums of disadvantaged HHs NGO in slums / Specialist, PMU attending monthly and DSC Participatory Formulate neighborhood level Regularity of meetings meetings to gauge planning at project plans (slum upgrading) held level of Environmental sites incorporating community inputs participation Engineers (DSC) Reports include record of Consult women as major participatory planning & Assessment and PRO/SDO in PIU stakeholders in ward and city women’s participation training conducted level planning and design (other at community level than slum improvement) Views influence design outcomes Feedback from women Schemes respond to beneficiaries women’s needs / priorities To integrate gender Provide gender Prepare training materials for ULB employees Workshops conducted Workshop Reports within ULB’s areas of sensitization training gender sensitization workshops work, with specific for ULB staff Number of employees Feedback Forms Identified training focus on project undergone sensitization institute (e.g. ATI) design training Review Reports & Social Development Feedback from employees Specialist (PMU) on usefulness of training programs To ensure women’s Conduct pre-project Prepare and implement Town residents, Improved collection Progress Reports awareness on project awareness campaigns communications strategy using targeting women performance by ULB Local NGO with benefits and on project benefits & gender sensitive language Percentage households Review Reports women members; involvement in need to support ULB paying connection charges PRO/SDO in PIU project design reforms at design stage To ensure that needs Collection of gender Designing questionnaire to Woman headed Gender disaggregated data Resettlement DSC/NGO of woman-headed disaggregated data ensure coverage of issues like households, women analysis undertaken to Action Plan(s) involved in RAP households, widows, during socio- women’s access to resources, members of Project arrive at compensation and preparation elderly and single economic surveys for household division of labor, Affected assistance packages in women are addressed resettlement planning women’s contribution to family Households RAP Social and in resettlement income, decision-making on community planning finance and resources; expressed RAP takes note of development 50 BUDP Main Report Area of Focus Objective Activities Task Target Group Indicator Verification Action by needs and preferences of women compensation and experts-(PMU, related to compensation and resettlement options ULBs and NGO) resettlement options. selected by women Using female enumerators or RAP addresses concerns of trained, gender sensitive woman headed enumerators. households, widows, elderly and single women To ensure that Monitoring Develop mechanisms to include Woman headed Percentage of Resettlement NGO/agency resettlement resettlement project affected women in households, women compensation packages Monitoring and involved in RAP implementation implementation monitoring of resettlement members of Project and resettlement options Evaluation Reports implementation addresses women’s implementation Affected addressing women concerns Households implemented Social and Develop indicators to track community resettlement impact on women development experts-(PMU and NGO) Project To mainstream gender Conduct gender Prepare materials for gender PMU, DSCs and Workshops for all target Workshop reports Social Implementation perspective in project awareness awareness workshop concerned ULB groups Development and Monitoring implementation workshops with officials Review reports Specialists (PMU, project consultants DSC) and PMU and ULBs To ensure women’s Conduct project Prepare and implement Women living in 30% of women NGO Reports Social full awareness and awareness, hygiene communications strategy project towns, interviewed in project Development involvement in education and water defining message, target including those cities at the end of second Progress Reports Specialists (PMU, project and waste audience and media, using living in slums year of project (PMU, ULBs & DSC, NGO) implementation and management gender sensitive language implementation are aware NGO) benefits campaigns with of project and its benefits PRO/SDO in PIU specific targeting of Project Monitoring women Reports To ensure women Contractors required Preparation of contract Contractors Percentage of women Contract invoicing Construction gain benefits from to engage sizeable documents employed by contractors supervision expert, construction process female labor and (to total workers) Project Monitoring DSC ensure equal wages Orientation of Contractors Reports between male and Women employed at equal ULBs (Municipal female labor for wages for equal work Engineer) equal work To ensure that project Establish a system of Develop gender disaggregated PMU Progress reports Community PMU benefits positively monitoring and indicators (qualitative and Monitoring impact women and evaluation which can quantitative, e.g. health benefits, PPMS Reviews and impact Reports Social that benefits are track / report impact reduced burden on women and assessments are able to Development equitable of the project on employment opportunities) report gender impact of Progress Reports Specialists-(PMU, 51 BUDP Main Report Area of Focus Objective Activities Task Target Group Indicator Verification Action by women project (PMU, ULBs & NGO) Develop systems for apex NGO) measurement, analysis and reporting of benefits Project Monitoring Develop mechanisms to include Reports women in monitoring and evaluation Institutional To promote gender Incorporate gender Review institutional Elected Officials, Institutional reform Identified training Development / awareness in perspective in all development program State and Changes made in measures are institute (e.g. ATI) Capacity Building institutional aspects of Municipal Officers institutional development gender sensitive & Social development program institutional Incorporate gender aspects in all program, training curricula Each training Development development training programs for state and Target training etc. program contains a Specialists (PMU, program corporation officials group as per gender perspective DSC and ULBs) program Monitor usefulness of Tracking use of Review impact of Gender Action Project Gender Action Plan used Review Reports Social Gender Action Plan Gender Action Plan Plan stakeholders and reported upon at Development regular intervals Progress Reports Specialists (PMUs, DSC and ULBs) Increased number of gender mainstreaming training activities planned & completed Increased number of projects reflecting community needs by using a participatory and gender focused approach Strengthened capacity of stakeholder agencies to promote, design and implement projects that support gender equality Note: DSC=Design and Supervision Consultants, PMU=Project Management Unit, ULB=Urban Local Body, WLC= Ward Level Committee. NGOs will be involved in social mobilization, public awareness campaigns and resettlement implementation 52 BUDP Main Report (May 2008) VII. Stakeholder Consultation and Participation A. Participation Strategy 1. Stakeholder Consultation 149. Stakeholders were consulted in a variety of ways – at workshops, Focus Group Discussions in slums, discussions with the nodal department at state level and municipal officials, interviews of citizens, etc. at the project preparation stage. Stakeholders at the state and town level were invited to participate in workshops involving detailed discussions on BUDP to enable identification of their views and concerns, if any. 150. Stakeholder participation was elicited for sub-project selection and prioritization under BUDP and will continue through detailed design and during planning, implementation, operation and maintenance. The idea is to ensure that stakeholder needs are addressed and there is greater awareness of the benefits and ‘ownership’ of the project among stakeholders, which in turn, is expected to help recover costs3. 2. Participation Strategy 151. The stakeholder participation strategy will involve the following: (i) Citizen Participation in Ward Committees; (ii) Information, Education and Communication (IEC) at the city- level; and (iii) Community Group Formation and Development at the slum-level (for slums selected under the project). Involvement of a local level non governmental organization (NGO) to ensure community participation in different phases/activities under the Project is envisaged. Ongoing consultation and participatory monitoring will help ensure that Project elements meet the needs of the community, contributing to their sustainability. (i) Citizen Participation in Ward Committees. Ward Committees as specified under the 74th CAA shall be the forum for local level stakeholder participation. It is observed that separate, project-specific forum created for participation are usually time consuming to form/mobilize and difficult to sustain people’s interest in; hence, participation through existing/constitutionally mandated forum is proposed. The structure of ward committees needs to be carefully reviewed, to ensure representation of women and the urban poor (including women from poor families). The Ward Committees shall serve as forum where (a) inputs/feedback from citizens including the poor, who can articulate their needs and problems and views relating 3 Based on learning from the earlier ADB projects in other states, district officials, Councilors and other elected members of ULBs have been consulted at the project preparation stage – this process will continue through the design and implementation stage in order to ensure their support in project implementation. 53 BUDP Main Report (May 2008) to projects being planned, services to be provided and complaints relating to the adequacy or inadequacy of delivery of services, can be received; and (b) disclosure of project-related details, including budgets and utilization and progress of works to citizens can be undertaken. The Ward Committees should meet at regular, specified intervals (at least once a month during the project implementation period) to ensure people’s participation as well as accountability to the public and transparency. Representatives of Ward Committees shall meet in city level consultations with stakeholders at various stages of the project as per a Plan/Schedule of consultations, to be prepared by the Public Relations/Social Development Officer (PRO/SDO) in the PIU, during the detailed design phase. The Schedule should be practicable, keeping in mind stages of the project cycle where stakeholder inputs are critical and time constraints of stakeholders, especially the poor/women/vulnerable groups. (ii) Information, Education and Communication (IEC) at City Level. The PRO/SDO shall develop an Information, Education, and Communication (IEC) strategy and mechanism with the help of a Non-Governmental Organization (NGO) working in the town, which will be inclusive and ensure access to information by all citizens, including the poor and disadvantaged4. The IEC Strategy will target all citizens and will focus on women members of households. The Public Relations Officer/Social Development Officer in the PIU would be responsible to ensure appropriate communication between the PIU, citizens and other stakeholder agencies at city and state level. (iii) Community Participation and Development at the Slum Level (for slums selected under the project). Community mobilization shall be undertaken by the local NGO. It is proposed that neighborhood groups (NHGs)5, which will be associations of 20- 50 women members, with a representation of at least 33 percent vulnerable/disadvantaged families be the focal point of the participation strategy. NHGs shall handle (i) participation in infrastructure planning and design, implementation, maintenance and monitoring. NHGs shall prepare action plans with goals, objectives and inputs related to infrastructure planning in the neighborhood and will elect a leader/Volunteer to represent them in ward /city level meetings. Community based monitoring of quality of life indicators shall be undertaken by each NHG. 4 Special efforts need to be taken to make information available to the poor, illiterate and women (through pictorial displays, information dissemination in groups/gatherings of people etc.). 5 In towns like Gaya, existing groups of the poor, e.g. NHGs, shall be part of the project. In other towns, where such groups are not there, it will be necessary to form such groups. 54 BUDP Main Report (May 2008) VIII. Project Rationale A. Introduction 152. The Bihar Urban Development Project (BUDP) is intended to support the Government’s policy for socio-economic development of the regions through the promotion of development in the largest, most strategically important towns in Bihar. The project is intended to support improvement in urban infrastructure and services in these towns, with the ultimate objective of: (i) supporting GoIs policy for urban development; (ii) contributing to poverty reduction and environmental improvement in the project towns; and (iii) enhancing the efficiency and effectiveness of urban planning, development and management in the Project towns. B. Policies and Programs 1. National Level 153. India is yet to evolve a National Urban Policy. In 1995 the Planning Commission constituted a National Task Force on Urban Perspective and Policy including relevant Technical Groups and a Draft National Urban Policy was prepared thereafter in January 2001. The Draft Policy included elements on planning, finance, the development of infrastructure and governance. However, the draft policy is yet to be finalized by the Task Force. Notwithstanding the absence of an approved national urban policy in its strictest sense, GoI has over recent years initiated a number of major policy shifts in an attempt to facilitate more efficient and effective urban development in the context of rapid urbanisation. Some of the major recent policy initiatives of GoI are: (i) Enactment of the 74th Constitutional Amendment Act in 1992 to make ULBs more powerful and self-sufficient; (ii) Launching a Campaign for Good Governance in the country in September 2001, in accordance with the UN Habitat Agenda; (iii) Announcement of the National Common Minimum Programs (NCMP) in May 2004 emphasizing economic reforms, employment generation and stimulating pro-poor growth, and stepping up investment in the development and expansion of physical infrastructure; (iv) Adoption of financial assistance schemes including: (i) Pooled Finance Development Scheme (PFDS), (ii) Urban Reform Incentive Fund (URIF) and (iii) City Challenge Fund (CCF) based on urban reforms, included in the 2002-03 national budget. 154. The GoI has further taken up various programs and initiatives to promote rapid urban sector development. Notable among these are: 55 BUDP Main Report (May 2008) (i) The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) launched in December 2005; (ii) The Urban Infrastructure Development for Small and Medium Towns (UIDSMT), launched in the same year; (iii) The Integrated Housing and Slum Development Program (IHSDP), also launched in 2005; (iv) Promotion of Foreign Direct Investment (FDI) in the Development of Integrated Townships and industrial Complexes; (v) The National Urban Information System (NUIS) Scheme launched in March 2006 to develop GIS databases. 155. Jawaharlal Nehru National Urban Renewal Mission (JNNURM). Recognizing the critical importance of rapid urban development and growing contribution of the urban sector to the Country’s GDP, the Government of India through the Ministry of Urban Development (MoUD) launched the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in December 2005, with the objective of addressing thrust areas of urban infrastructure and governance, and provision of basic services for urban poor in Indian cities. JNNURM is a “reform-driven and fast track project, planned at developing identified cities focusing on efficiency in urban infrastructure/services delivery mechanism, community participation and accountability of Urban Local Bodies/Parastatals towards its citizens”. 156. The proposed duration of the Mission is seven years (2005-12) and includes an outlay of approximately Rs. 1000 billion, covering 63 important cities in the Country. The Mission’s underlying goal is to improve urban governance through a range of mandatory and optional reforms at State and Local level, and incorporate private sector efficiencies in development, management, services and undertaking projects through public-private partnerships (PPPs). The Mission proposes a planned development agenda covering urban infrastructure and basic services for poor, for each Mission city over a period of 20-25 years with a five year perspective plan. 157. The main thrust of the Mission is to ensure improvement in urban governance so that Urban Local Bodies (ULBs) become financially sound with enhanced credit rating and ability to access the capital market for undertaking new programs and expanding urban basic services (Reform Agenda). The Reform Agenda sets forth specific outcomes in a time-bound manner and is executed by a tri-partite Memorandum of Agreement (MoA) between the Government of India, State Government and the ULB committing their intention to implement the reform program. 158. As an initial requirement to access funding through JNNURM, the Mission requires cities to prepare City Development Plans (CDPs), which will consider city needs in an integrated and participatory manner, and prioritize investments, in urban infrastructure, housing and basic services for poor. The CDP is a common vision shared by city-level stakeholders determining how the city should grow, the quality of life citizens expect, and the role of stakeholders (government, parastatals, industry, non-governmental organizations, and citizens) in ensuring that the common vision is attained and within a specified timeframe. 56 BUDP Main Report (May 2008) 159. Urban Infrastructure Development for Small and Medium Towns (UIDSMT): The UIDSMT program was launched in the same year (2005), aiming to develop infrastructures of smaller and medium sized towns which did not find place in the list of JNNURM. Similar to JNNURM this program is also planned for implementation in a period of seven years commencing from 2005-06. The funding modality is generally uniform for all such towns in the ratio of 80 percent of the development cost as grant from GoI and 20 percent contribution from the concerned state and ULB, except in case of North Eastern states and Jammu & Kashmir where this ratio is 90:10. The quantum of GoI funding under UIDSMT shall be limited based on the State’s total urban population excluding JNNURM towns. The population of other towns are low and as a result the amount of total funding from GoI under the program shall be meagre. 160. Integrated Housing and Slum Development Program (IHSDP). The IHSDP launched in 2005 aims to improve the infrastructures of urban slums excluding cities/towns already included in JNNURM by providing basic amenities for overall environmental improvement and shelter for the homeless poor. With introduction of above program the earlier schemes of VAMBAY, URIF, AWSP, NSDP and IDSMT of GoI’s Ministry of Urban Development are scrapped, with effect from 01 April 2005. The funding pattern is 80 percent grand from GoI grant and the balance 20 percent by the state/ULB, except in case of North Eastern states and Jammu & Kashmir where this ratio is 90:10. 161. Foreign Direct Investment (FDI) in Development of Integrated Township: The GoI has decided to allow 100 percent FDI in the real estate sector with a view to catalyzing investment in townships, housing, built-up infrastructure and development projects. The investment can be for commercial complexes, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure, subject to fulfilment of conditions prescribed by the Ministry of Commerce. 162. National Urban Information System: Ministry of Urban Development (MoUD) of GoI launched the National Urban Information System (NUIS) Scheme in March, 2006 to develop GIS databases for about 4637 towns/cities in the country, of which 137 and 1500 towns are proposed to be taken up in the first and second phases respectively. Apart from spatial data, the Scheme has other components like National Urban Data Bank and Indicators (NUDBI). The spatial and attribute databases thus generated will be useful for preparation of Master plans, detailed town planning schemes and can serve as decision support for e-governance. The total capital outlay of the scheme is Rs. 663 million, of which 75 percent will be borne by the GoI and 25 balance will be the recipient state’s own contribution. The work of spatial data will be undertaken by the Survey of India, Dehradun and the National Mapping Agency. Memorandum of Understanding has been signed between Ministry of Urban Development and the National Mapping Agency on 13th March 2006 for Urban Spatial data generation. In Bihar, five towns have been included viz., Arah, Patna, Muzaffarpur, Bhagalpur and Darbhanga. Under the 11th Five Year Plan Rs.30 million has been earmarked of which Rs.4.37 million was released as State share. 57 BUDP Main Report (May 2008) 2. State Level 163. Model Municipal Act: To consolidate and amend the laws relating to the municipal governments in the State of Bihar in conformity with the provisions of the Constitution (Seventy-fourth Amendment) Act, 1992, the Government of Bihar enacted the Bihar Municipal Act, 2007. This act enables decentralization, autonomy and accountability of urban self- government at various levels, to introduce reforms in financial management and accounting systems, internal resource generation capacity and organizational design of Municipalities, to ensure service delivery and financial sustainability of ULBs. With the enactment of this Act, the following Acts are repealed: the Bihar Municipal Act, 1922, Patna Municipal Corporation Act, 1951, Bihar Municipal Corporation Act, 1978, Bihar Regional Development Authority Act, 1981, Bihar Town Planning & Improvement trust Act, 1951, Bihar restrictions of uses of land Act, 1948, Bihar Municipal Ordinance, 2007. Similarly, The Regional Development Authorities set up under the Bihar Regional Development Authority Act, 1981, the Improvement Trust or Town Planning Authority set up under the Bihar Town Planning and improvement Trust, Act, 1951, the Controlling Authority constituted under the Bihar Restriction of Uses of Land Act 1948, ceases to exist. 164. Industrial Incentive Policy 2006: The main objective of Bihar Industrial Incentive Policy (2006) is to achieve sustainable industrial development with a view to create large-scale employment opportunities and achieving global competitiveness by improving productivities among industrial units. The policy also includes providing subsidy viz., like exemption from registration fee, stamp duty, incentives for preparation of project report, grants for purchase of industrial sheds or lands. Incentive grant is also given for capital investment on captive power generation. The government has enacted the Bihar Single Window Clearance Act 2006, for rapid clearance procedures for establishing industries, to issue license and certificates, to provide a congenial atmosphere to the investors of Bihar state. 165. Geographic Information Systems: As a part of strengthening the capabilities of the ULBs in the State, the Urban Development Department is proposing to create a sophisticated GIS-based work environment in all urban local bodies in the state in a phased manner. The objective of developing the GIS is to “strengthen the strategic planning capabilities and day to day management of core municipal functions by the ULBs in the State”. 166. E- Governance. The Urban Development Department is proposing to introduce E- Governance in all ULBs. Improved planning should also be facilitated by GoBs e- governance and MMIS projects to “develop and implement applications software for the Department of Urban Development” which should enhance the effectiveness, transparency and accountability in the processes of the urban department and local Governments. 58 BUDP Main Report (May 2008) C. Development Perspective 167. 11th Five Year Plan Objective: Government of India’s 11th FYP approach (as presented by the Planning Commission) to be followed by all states aims to achieve socio-economic targets with an emphasis on reforms to achieve nine percent growth during 2007-12 – the FYP will lay emphasis on crucial sectors like agriculture, power, health and employment. Bihar’s 11th FYP for various sectors is indicated below: (i) Urban Development. In the tenth plan, the outlay for urban development was only Rs.7, 384.76 million and this has been increased in the 11th Five Year Plan to Rs.45, 087.11 million– urban planning, promoting central sponsored schemes with emphasis on poverty alleviation, undertaking institutional and financial reforms, focusing on training and capacity building, and promoting public-private partnership frameworks/including citizen participation in urban development; and (ii) Water Supply. Water supply with an outlay of Rs. 2,500 million – piped water supply is proposed to be introduced in about 11 towns in the state. Reliability in ensuring water supply and customer satisfaction, and undertaking institutional and financial reforms leading to improved service delivery is also proposed. (iii) Sanitation. The Five Year Plan outlay for sanitation program and cleanliness is about Rs.1, 623.29 million. It is proposed to improve the existing drainage system in various municipal corporations, municipal councils and town panchayats. D. Project Identification and Selection 1. Project Objectives 168. The overall development goal of the Project is to provide sustainable growth and poverty reduction in the two project cities in Bihar. The Project purpose is also to assist the selected Municipal Corporations and other related departments to “promote good urban management and develop and expand urban infrastructure to increase economic opportunities and to reduce vulnerability to environmental degradation and urban poverty” through capacity building. These statements can be broken down to three key criteria in the selection of project activities: (i) Poverty Reduction: Will the component significantly and directly benefit the living environment or economic and employment opportunities of the urban poor; is the component primarily aimed at the urban poor. (ii) Economic Growth: Will the component contribute to economic growth in the urban area, by improving the efficiency of essential urban infrastructure and services, by improving productivity of economic activities, and attracting new investment to the area. 59 BUDP Main Report (May 2008) (iii) Improved Urban Management: Will the component contribute to a greater efficiency in the planning and management of urban infrastructure and services. Are the poor are participating in the planning process. 2. Component A. urban infrastructure improvement 169. The ADB’s Poverty Reduction Strategy identifies poverty as: A deprivation of essential assets to which every human is entitled. The Strategy includes access to water, sanitation and other basic services, as well as income, employment and wages, as measures of poverty. The assessment of the prevailing situation in India, Bihar and the Project cities has identified a substantial gap in the provision of basic services, particularly to the poor and the unacceptable quality of the urban living environment. 170. A review of the management and institutional situation also demonstrates clear gaps in the organizational arrangements that are necessary for the efficient delivery of urban services. Minimum standards for improvements to the physical environment are not possible without considerable investment in organizational and institutional change. Lessons learnt from previous ADB projects and development projects in India demonstrate that it is the ability to finance, plan and effectively manage such services that are critical to Project success and long-term sustainability. 171. The Project takes guidance on the minimum acceptable standards from National Guidelines, as the most relevant objectives and appropriate standards within the India context. Setting standards for provision of services and environmental conditions, demonstrates the Government’s commitment to improving living conditions, and the recognized economic worth of such investment, in spite of the potential financial cost. It is of note that given the reality of the situation and in particular institutional and operational changes that are required, and despite the size of the proposed investment Project, these standards will not be fully achieved within the design life of the Project. 172. Both Patna and Gaya lack basic urban infrastructure and municipal services to some extent. The problems relate to physical deficiencies in respect to demand and deficient operation & maintenance. Water supply and sewerage are high priorities for both the cities. The status of the various infrastructure sectors is summarized below. Details of city specific needs and issues are addressed in Volume 2 - City Reports (CLIP). 173. Water Supply: Water supply systems in both the cities are quite old and suffer from extremely high losses, contributing to an unacceptable level of service. Substantial sections of the urban population, in particular the poor, remain without access to piped water. There is no water tariff and a meager portion (2.0 % of ARV) is charged for water supply as part of property tax. Tax collection is also poor. 174. The cities suffer from inadequate transmission and distribution systems leading to inequitable pressure and quantity. Key problems are leakage from inadequate sized old pipelines, connections and fixtures, with uncontrolled wastage from public stand posts; unauthorized tapping from water mains, leading to further loss of revenue and supply 60 BUDP Main Report (May 2008) contamination. Absence of monitoring and control device further adds to the system deficiencies. 175. Alternative supply in both the cities is usually from own tube-wells. Some of these are tapping water from shallow aquifers, which are sharply depleting and the quality of water is also questionable. 176. In Patna water from existing ground water sources is theoretically adequate for the present population. However, water is not being supplied to all the areas and has a substantial amount of leakages as well as other losses in the system. In Gaya the situation is further worsened because of existing water production is less than the present requirement. 177. The quality of ground water supplied to the beneficiaries is generally acceptable, although bacteriological contamination is recorded, in cases, suggesting strengthening/ introducing disinfection arrangements. Operation and maintenance of water supply system is primarily lies with municipal corporations. But in Patna, PHED is also responsible in O&M in the important government properties. 178. Sewerage and Sanitation: The status of sanitation and sewerage is far from adequate in the project cities. While there is a sewerage system in Patna, the coverage is inadequate, only 18% of properties being connected to the system. Even the existing system is not functioning properly. For deficiencies in intercepting and transmission sewers STPs installed capacity is not being fully utilized. About 80% households are connected to septic tanks, which are again not maintained properly. 179. Sewerage system is non existent in Gaya. About 75% of households are connected to septic tanks, which again lacks maintenance. The discharge of effluent of septic tanks to the surface drains and open defecation are contributing to the pollution of the receiving watercourses, ponds, tanks and ground water and causing environmental degradation in both the cities. In Patna presently sewerage is being operated and maintained by PMC. 180. Urban Drainage: Most rainfall in the two cities falls during the June-October monsoon period, with an annual average ranging from 1100mm in Patna to 1150mm in Gaya. In both the cities there is a combination of underground and surface drains. However, drains are poorly maintained and often blocked by accumulation of silt and un-collected municipal solid waste, causing water logging and flooding in many congested city areas. The problems are often made worse by the un-controlled development and encroachment in drainage channels and the ineffective maintenance of the drainage system and sanitation facilities. In Patna there is a number of drainage pumping stations, not being adequately maintained. In Gaya drainage is primarily based on gravity system. Municipal corporations are primarily responsible for maintenance of the systems. 181. Solid Waste Management: Domestic solid waste collection is poor, involving open un- hygienic street collection points. Only in certain areas house collection is done by open wheel burrows. None of the cities has any disposal facilities and waste is being disposed by crude dumping along the roads/ streets and in low lying areas. There is little control on 61 BUDP Main Report (May 2008) the disposal of infectious waste and no facilities for toxic waste disposal. 182. Above all, solid waste management in the two cities suffers from the absence of a clear organization and management. The municipal corporations do not have a dedicated conservancy department, and solid waste management falls under a Health Officer, and not an environmental engineer. There is little systematic planning of the waste collection and disposal process. Systems are under-funded and lack skilled staff. 183. In the cities loading and unloading of refuse vehicles is mostly done manually, with considerable inefficient double-handling. This affects the health of the conservancy department workers and causes unhygienic conditions in the surrounding environment. Secondary waste collection and transportation rarely synchronizes with the timings of primary collections of solid waste, especially from commercial areas. The vehicles are open and during transportation waste spills out onto the roads. Generally, the refuse vehicles are old and of poor conditions because of inadequate maintenance. There are hardly any records on the refuse vehicle collection routes or weighbridges for checking actual weight of waste transported for disposal. 184. Urban Transport and Roads: Similar problems on roads and transportation have been identified in both the cities: (i) low availability of road space, (ii) low operating speed, (iii) highly mixed traffic in the carriageways, (iv) inadequate parking and unregulated on street parking, (v) inadequate and inefficient public transport facilities, (vi) lack of pedestrian facilities and (vii) improper/ inadequate traffic management. 185. Economic development and corresponding urbanization has lead to the increase in traffic flow, congestion and road accidents resulting in the demand for better and safer roads. Both the cities have high projected rates of increase in traffic volumes. Transport problems related to traffic congestion are due to several reasons but mainly to a highly mixed traffic and inadequate road space coupled with poor traffic management. Also, many main roads do not have footpaths and traffic safety is a growing problem. Urban roads except national highways are under jurisdiction of Road Construction Department and municipal corporations. 3. Sub project selection 186. Community Priorities: As part of the Project preparation, a Baseline Socio-Economic Survey was undertaken in both the Project cities. The sample household survey included questions on municipal service delivery and priorities for improvement. 187. People’s priority to basic services in the Project cities is indicated in Table 32. 62 BUDP Main Report (May 2008) Table 32: Percentage Distribution of HHs by Stated Priorities for Basic Service for Patna & Gaya Priority Water Sewerage Drainage Solid Road and Social Supply Waste Transport Infrastructure Disposal P G P G P G P G P G P G First 35 62 16 5 15 8 12 7 16 8 6 10 Priority Second 10 13 33 4 12 10 11 59 13 8 20 6 Priority Third 13 10 11 10 34 20 15 8 13 12 14 40 Priority Fourth 9 8 11 47 13 15 33 7 17 17 17 6 Priority Fifth 9 5 17 18 14 12 14 6 29 50 18 9 Priority Sixth 24 2 12 16 12 35 15 13 12 5 25 29 Priority Source: Primary Survey. P: Patna , G: Gaya 188. The table shows that for Patna, water supply has the first priority among the highest percentage of respondents. When combination of first and second priorities is considered, it is close second at 45% to sewerage at 49%. It is interesting to note that about 24% of respondents voted Patna water supply as the last priority. This is possibly attributable to easy availability of water in the city irrespective of water quality. The preference in Gaya for water supply is by far higher at 62%. 4. Technical assessment 189. Technical assessment on the basis of scrutiny of existing situation vis-à-vis the future requirement it is imperative that both the cities need interventions in all the sectors of urban infrastructure development. However under the Project following sub projects are identified: (i) Rehabilitation and improvement of existing water supply for Patna - rehabilitation and extension of distribution system on proper planning including adequate storage facilities, source reorganization without increasing in quantity of ground water abstraction, disinfection arrangements, installation of monitoring and control facilities, automation and metering with aim to have an equitable potable water distribution among larger section of people continuous throughout the day, monitoring the production and supply, reduction in UFW as also facilitating introducing volumetric water tariff. 63 BUDP Main Report (May 2008) (ii) Rehabilitation and improvement of existing water supply for Gaya - rehabilitation of distribution system on proper planning including adequate storage facilities, disinfection arrangements, installation of monitoring and control facilities, automation and metering with aim to have an equitable potable water distribution among larger section of people continuous throughout the day, monitoring the production and supply, reduction in UFW as also facilitating introducing volumetric water tariff. (iii) Rehabilitation and improvement of the sewerage system in Patna – rehabilitation and improvement of sewage interception and transmission system in Beur STP zone, rehabilitation of STPs at Saidpur, Pahari and Beur, upgrading of Beur STP providing secondary treatment facilities for 15mld, providing sewerage in South West zone on a pilot scale including construction of an additional STP at Beur existing site. 190. The sub projects, so selected, were primarily aimed at to rehabilitate the existing system and improve those functionally to achieve optimum utilization of the existing assets. 5. Exclusion of Sub-Projects 191. Augmentation of source for water supply in Gaya has not been considered as detailed studies are necessary to conclusively select the source amongst the various alternatives that may be available. Cost of such study has been included in Project under Component C. In the case of Patna ground water now abstracted is sufficient to meet the demand for the year 2026. Beyond that source augmentation will be dependant on a study to be carried out by Central Ground Water Board for assessment of ground water availability. 192. Sewerage in Gaya is not included as the present rate of water supply (gross 80 lpcd) is insufficient for functioning of water borne sanitary sewerage system. Drainage, both in Patna and Gaya, have not been considered for inclusion under the Project as i) sewerage and drainage systems are highly interlinked in Patna; and ii) requirement of detailed master plan, which is essential for planning investments on large scale for sewerage and drainage in both the cities. The cost of development of such master plans has been included in the Project under Component C. 193. Solid Waste Management in Patna is being taken under JNNURM. In case of Gaya, suitable land for disposal is not available. Discussions with GoB revealed that solid waste management is being proposed to be taken on PPP basis and hence not to be included in this Project. In addition, cost of study and preparation of Solid Waste Management Master Plan for Gaya, has been included in the Project under Component C. 194. Urban Transport and Roads, possible sub-projects in Patna and Gaya, were identified for inclusion under the project. However before embarking on these types of sub-projects a city mobility plan needs to be prepared. In case of Patna, sub-projects in this sector are proposed to be taken up under JNNURM. 64 BUDP Main Report (May 2008) 6. Component B – Slum Infrastructure 195. GoB does not have a Slum Policy. None of the ULBs has adequate capacity to undertake and implement the improvements in slums. In the Project, cost of study for State Slum Policy has been included under Component C. Similarly cost of study of slums for both project cities has been included under Component C. 196. Slum Infrastructure in Patna: Pilot projects are proposed in two slums in Patna with a view to building the capacity of the Corporation in participatory planning, implementation and monitoring of such projects, which will enable monitoring of interventions proposed under JNNURM (with a project cost of ~Rs. 2000 million). The proposed study of slums in the city is further expected to build the database required prior to robust project preparation/scaling up. The pilots shall directly benefit the resident communities and build the base for interventions that will benefit the entire city’s urban poor population (especially women belonging to poor households) in the long term. 197. Identification of pilot slums in Patna was undertaken on the basis of the following criteria: (a) representative character, (b) presence of vulnerable social groups, and (c) extremely low levels of access to basic services by households. 198. Slum Infrastructure in Gaya: Pilot projects are proposed in five slums in Gaya, which will directly benefit the resident communities. The community upgrading pilots are expected to build the capacity of the Corporation in participatory planning, implementation and monitoring of such projects, which will enable scaling up of interventions through funds available under UIDSSMT and other schemes of GoI and GoB in future. The proposed study of slums in the city is further expected to build the database required prior to future project preparation. The pilots shall build the base for interventions that will benefit the entire city’s urban poor population (especially women belonging to poor households) in the long-term. 199. Identification of pilot slums in Gaya was undertaken on the basis of the following criteria: (a) extremely vulnerable social groups, (b) very low levels of access to basic services, (c) poor environmental sanitation conditions (e.g. location along/open defecation on river bed) affecting environmental health conditions of the slum dwellers and city residents, (d) slum typology / representative character (e.g. age of slum, location in city – core/intermediate/periphery), and (e) ease of implementation (government land). 7. Component C – Capacity Building and Project Management 200. Project management support in the form of implementation assistance through team of consultants to facilitate implementation of the Project as well as build their capacities for undertaking such Projects in future is provided for in the Project under this Component. A team of Project Management Consultants will provide necessary supporting services at the State Level to PMU. Correspondingly at city level, a team of Design and Construction Supervision Consultants will provide supporting services to PIUs in both cities. 65 BUDP Main Report (May 2008) 201. Capacity building of ULBs, PMU, PIUs and other related agencies in GoB, in the areas of planning and design of municipal service components, asset management, financial management, efficient municipal service delivery, in the form of training programs through teams of consultants is provided under the Project under this Component. 8. Consultation process 202. Apart from a large number of discussions with UDD, ULBs and related departments a series of workshops have been organized to explain the sub project selection and the components included in those which led to final selection and making recommendations thereof. 9. Other Criteria considered for Selection of Subprojects 203. In selecting subprojects in each town, the following aspects have been considered: (i) O&M of assets created under the Project; (ii) Availability of hindrance free land to the implementing agency for execution of works; (iii) Both MCs can mobilize financial resources required for the O&M of all the assets under the MC’s mandate created under the Project; (iv) Resettlement plans, wherever required; (v) Preparation of Initial Environmental Examinations (IEEs) including environmental monitoring plans (EMPs) in accordance with environmental assessment and review procedures (EARP) of the Project; (vi) Preparation of the indigenous peoples development plans, wherever required and applicable; and (vii) All subprojects have been selected pursuant to a least cost analysis of options. 204. Social and Poverty Criteria: The overall social criteria requires the component to meet GoI, GoB and ADB social policy objectives, and is affordable / accessible by the poor; and the Project meets expressed needs of community (and women and the poor have been consulted). (i) Maximizing Social Benefits • Project maximizes numbers of BPL beneficiaries; 66 BUDP Main Report (May 2008) • Project extends or improves service delivery to previously un-served or under-served areas, particularly for poor settlements; • Project leads to sustained poverty reduction through demonstrable health, livelihood benefits; • Project empowers and leads to demonstrable improvement in quality of life for women; and • Project enables participation of community (especially poor communities) in planning, construction, and Operation and Maintenance (O&M). (ii) Minimizing Negative Social Impacts • Project requires minimum/no resettlement (or loss of productive / non- productive assets); full Resettlement Plans are required if there are more than 200 affected persons; if less, a short Resettlement Plan will be required; • Resources are available to compensate for loss of housing, land, productive assets, etc., including for most poor and vulnerable; and • Project minimizes other negative impacts on poor men and women, e.g., increased costs for services (time and money), unemployment, and health risks. 205. Financial Criteria: The financial criteria require the subprojects to ideally produce direct revenue. Non or indirect revenue generating components should demonstrate absolute need – social or otherwise – and augment indirect revenue resources of the MC (i.e. increase the tax base of the MCs on account of the better service provided by it). Other financial criteria for subproject selection indicate that: (i) Capital costs are based on least per capita cost option considering the area, population and benefits, and designed for 15-20 years; (ii) Subprojects demonstrate best possible maintenance and management option; (iii) Subprojects generate revenues sufficient to meet O&M costs and debt service (partially) without Government subsidy; (iv) Subprojects have no (or minimal) resettlement / relocation; and (v) Land acquisition has been considered only where it is absolutely necessary / unavoidable. 206. Economic Criteria. The economic criterion for subproject selection determines the subproject’s ability to enhance the project city’s economic growth. Economic Viability • Demonstrates significant improvement over the “without project” situation; • Demonstrates demand and supply management as an integral part of design; 67 BUDP Main Report (May 2008) • Is the most cost effective (least cost) solution; and • Demonstrates low risk from technical, social, environmental, financial and institutional perspectives. E. Project Components Based on the technical assessment, selection criteria and project identification process followed as discussed in previous section, following subprojects, under three components have been identified under proposed BUDP. The Project scoping, including that of Capacity Building, will be further reviewed in the ensuing PPTA of ADB during which further detailing of some of the sub projects are also expected to be carried out. 1. Component A. Urban Infrastructure Improvement • Rehabilitation and Improvement of Water Supply in Patna; • Rehabilitation and Improvement of Water Supply in Gaya; and • Rehabilitation and Improvement of Sewerage in Patna 2. Component B. Slum Infrastructure 207. Slum Infrastructure: The slum infrastructure services shall aim at improving quality of life in poor settlements and address: (i) slum infrastructure investments to cover inadequate services relating to water, sanitation, roads, streetlights and drainage has been proposed in Patna in 2 pilot slums and in 5 pilot slums in Gaya. 3. Component C - Implementation Assistance and Institutional Development: 208. Following has been proposed under this: • Incremental Administration; • Project Management Consultants as support to PMU; • Design and Construction Supervision Consultants as support to PIUs and preparation of Sewerage and Drainage Master Plans for both MCs and preparation of solid waste management master plan for Gaya; • Benefit Monitoring Consultants; • Slum Policy and Slum Study; • NGO Support; • Groundwater source study for Gaya; and • Capacity building program for all MCs and other as identified by GoB. 4. Operation and Maintenance 68 BUDP Main Report (May 2008) 209. Project will lay stress on service delivery initiatives that will cover long-term operation and maintenance of the infrastructure assets and ensure full O&M cost recovery. The Project will develop various contractual mechanisms to ensure that service delivery meets standards recommended by various national and state authorities. The capacity development plan will provide support to the State line departments and MCs in improving service delivery through hands-on/on-job training support. F. Cost Estimates and Financing Plan 210. Summary of BUDP cost estimates for Component A – Urban Infrastructure Improvements, Component B – Slum Infrastructure and Component C – Institutional Development, comprising of implementation assistance and capacity building is given in Table 33 in US dollars and Table 34 in Indian rupees. Table 33: Project Cost Estimates in US Dollars BUDP Cost Estimates and Financing Plan Million US$ Total ADB ADB GoB Category GoB Cost % Loan % I. Base Costs A. Urban Infrastructure and Environmental Improvements 1. Water Supply 55.1 72.0 39.7 28.0 15.4 2. Sewerage 28.5 72.0 20.5 28.0 8.0 Subtotal (A) 83.5 72.0 60.2 28.00 23.4 B. Slum Infrastructure B. Slum Infrastructure 2.9 72.0 2.1 28.0 0.8 Subtotal (B) C. Implementation Assistance and Institutional Development 1. Incremental 2.9 Administration 2. Consultancy Support 6.6 3. BME Consultants 0.2 4. Slum Policy and Study 0.3 5. NGO Support 0.1 6. Groundwater source 0.1 study - Gaya 7. Capacity Building 1.1 Subtotal (Part C) 11.2 100.0 11.2 0.0 0.0 D. Contingencies 16.2 72 11.7 28 4.5 Physical 7.7 Price 8.5 E. Taxes and Duties 15.77 0 0.0 100 15.8 F. Financing Charges 14.9 100.0 14.9 0.0 0.0 During Implementation Total Project Cost 144.5 69.2 100.0 30.8 44.5 Source: Costab Estimates 69 BUDP Main Report (May 2008) Table 34-Project Cost Estimates in Rupees BUDP Cost Estimates and Financing Plan Million INR Total ADB ADB GoB Category GoB Cost % Loan % I. Base Costs A. Urban Infrastructure and Environmental Improvements 1. Water Supply 2148.3 72 1546.8 28 601.5 2. Sewerage 1110.1 72 799.3 28 310.8 Subtotal (A) 3258.4 144 2346.1 56 912.4 B. Slum Infrastructure B. Slum Infrastructure 111.8 72 80.5 28 31.3 Subtotal (B) 111.8 80.5 31.3 C. Implementation Assistance and Institutional Development 1. Incremental 111.8 Administration 2. Consultancy Support 255.5 3. BME Consultants 8.8 4. Slum Policy and 12.5 Study 5. NGO Support 4.6 6. Groundwater source 3.2 study - Gaya 7. Capacity Building 41.1 Subtotal (Part C) 437.4 100 437.4 0 0.0 D. Contingencies 631.8 72 454.9 28 176.9 Physical 300.3 Price 331.5 E. Taxes and Duties 615.0 0 0.0 100 615.0 F. Financing Charge 581.1 100 581.1 0 0.0 During implementation Total Project Cost 5635.5 69% 3899.9 31% 1735.6 Source: Costab Estimates 211. Detailed cost tables for the projects under the BUDP are given in Appendix 5. 212. The Financing Plan for the project will be finalized following discussions with GoB and ADB on the BUDP and will be finalized. The tentative financing plan is outlined in Table 35 70 BUDP Main Report (May 2008) Table 35: Financing Plan Total Base Cost Share US $ Million % Asian Development Bank 100 69.1 Government of Bihar 45 30.9 Total 145 100 Source: Analysis 213. ADB’s financial support will be extended from Ordinary Capital Resources, in the form of Project Loan to GoI at LIBOR. For Bihar the GoI will re-lend the proceeds to Bihar as mutually agreed. 71 BUDP Main Report (May 2008) IX. Poverty and Social Analysis A. Social Objectives in Project Formulation 214. A review of the trends in urban population growth, policy, social and poverty context of the state of Bihar, and in particular, the levels of access to basic urban services in the two project cities of Patna and Gaya indicate the need for improved urban infrastructure. Investments in urban infrastructure are known to spur economic development – BUDP aims at economic growth in project towns in one of the most backward states in the country, coupled with distributional impacts on the poor. The idea is to provide momentum to economic development of the project towns and their hinterland and ensure that benefits reach the poor. 215. While poverty reduction in the two project cities would depend partially on the proposed improvements in infrastructure, it would also be influenced by increased capacities of state and municipal governments as a result of the project, including the capacity for participatory planning, implementation and monitoring, with the involvement of NGOs and CBOs. 216. Identification of BUDP project components was based on a range of social criteria, aimed at maximizing social benefits and minimizing negative social impact, as elaborated below: (i) Maximizing Social Benefits • The Project benefits the entire city population and promotes inclusive growth by providing opportunities to urban poor/poor settlements to connect to city- wide / area-specific networks • The Project extends or improves service delivery to previously un-served or underserved areas, including selected slums/pockets of poverty; • The Project contributes to economic development and poverty reduction through demonstrable health benefits to the city population, including the poor; • The Project empowers women and leads to improvement in quality of life for women; • The Project enables participation of community (especially poor communities) in planning, construction, and Operation and Maintenance (O&M); • The Project leads to capacity building of state and local bodies in participatory planning, implementation, maintenance and monitoring at city level and for poor settlements. (ii) Minimizing Negative Social Impacts 72 BUDP Main Report (May 2008) • The Project requires no resettlement; only temporary socio-economic impacts on hawkers and vendors are envisaged; • Resources are available to compensate for temporary losses as well as unforeseen losses if any; and • The Project minimizes other negative impacts on poor men and women, e.g., increased costs for services (time and money), unemployment, and health risks. 217. Social impact assessment was carried out for identified sub-projects; this is presented in the Short Resettlement Plans (refer Volume 4). 218. The total investment proposed in each city varies, depending on the level of current basic needs, the city’s investment sustenance capacity, ease of implementation (e.g. government land available, no resettlement required, etc.). Components were selected based on social, environmental, financial, economic and institutional criteria. 219. Elements such as provision of water and sewerage up to the boundaries of slum areas will permit them to link up with city networks using funds available either under the project for selected slums or Government of India (JNNURM-BUDP/UIDSSMT-IHSDP). Indirect interventions benefiting all slums in the project ULBs coupled with direct interventions in environmental and other urban services in pilot slums are expected to reduce the time taken to collect water, resources and time expended on health care and care-giving and recurring opportunity costs incurred by households for water and sanitation. 220. Social and Poverty Criteria: The overall social criteria require each component to: (a) meet GoI, GoB and ADB social policy objectives, (b) be affordable / accessible by the poor; (c) meet the expressed needs of the community and women, and (d) ensure that the poor have been consulted in project preparation. Sub-Project Priority of Citizens 221. Stakeholder consultations have been a key element in project identification and preparation. Stakeholder participation was ensured through workshops and consultations with beneficiary groups, NGOs, district and municipal officials and elected representatives. Care was taken to ensure that the stakeholder consultation process was reflected in all Project components. For the formulation of components in Project towns, social criteria were used to make decisions on investment location and delivery choices, seeking to respond to identified needs, and ensuring improved access of the Project to the poor. Social analysis conducted for the Project led to the identification of poor settlements and integration of the same into the overall Project framework. Participatory surveys provided an understanding of community perceptions, priorities and needs. Social and poverty analysis and impact assessment considered social costs and benefits for different groups within the populations of the project towns. The social analysis gives useful 73 BUDP Main Report (May 2008) insights into the absorptive capacity, affordability and willingness to pay by different sections of the population and for component selection, location, fees and user charges. 222. Institutional components of the project should empower and lead to demonstrable improvement in the quality of life of women. The capacity-building initiatives should lead to a more efficient, effective and responsive state and local government, better able to understand and respond to the needs of the population, especially the poor. 223. Awareness of affected population in particular, the poor will be increased and improved through information, education and communication programs, thereby increasing the quality of dialogue and informed participation between communities and local government. Proposed changes in planning processes involving slum upgrading and networking will enable the participation of community (especially poor communities) in planning, construction and O&M. 224. Benefits of improved water supply are expected to accrue to the entire population, including the poor in both cities. Improved health status of the population and the prospect of accelerated economic development should increase employment and raise living standards. 225. The proposed sewerage network in Patna will reach the boundaries of ~ 9 notified slums (and other non-notified slums) located in the zone, which will enable networking and provision of sewered toilets (individual / community), depending on space availability. There will be direct and indirect benefits to the poor and non-poor, through improved access to sanitation. 226. BUDP focuses on provision of infrastructure services to urban poor in Bihar and complements the stated goals in GoI’s Tenth Plan as well as MDGs. Demonstration projects involving direct interventions in environmental infrastructure are proposed in two slums in Patna and 5 slums in Gaya, respectively to build ULB capacity in planning and execution of community upgrading projects and use lessons from the same to scale up interventions in all slum areas in the cities, with GoI funds. 227. The community upgrading sub-project is expected to directly benefit all slum households residing in selected 2 and 5 slums in Patna and Gaya respectively, covering an estimated ~900 slum households in Patna and ~650 slum households in Gaya. Through its contribution to capacity building of the ULBs in implementing/managing interventions for the poor, which is also expected to facilitate implementation of similar projects with GoI funding under JNNURM/UIDSSMT, the community upgrading sub-project is likely to indirectly benefit all slum households in the two cities. Direct benefits to the poor from the proposed interventions (city and slum level) will also be from employment to local poor – by giving them priority for unskilled jobs. 228. A Summary Poverty Reduction and Social Strategy for the Project is detailed in Appendix 6. The Social and Poverty Impact assessed for each sub-project component is summarized below. 74 BUDP Main Report (May 2008) B. Social Impact 229. The social and poverty impact of the project components has been assessed in terms of the benefits and costs which apply to different groups of the population within the city, based on envisaged coverage. 230. The social groups studied during the socio-economic (household) surveys are differentiated in terms of their income and gender in order to understand the social profile. Project components have been formulated based on the following parameters: (a) existing level of access to services, (b) expressed needs and priorities, (c) benefit distribution, poverty impact and gender analysis. The cost and mitigation measures have been analyzed in terms of social costs, affordability, land acquisition requirements and resettlement issues. The Project has a Gender action Plan, detailed in Chapter VI. 231. The baseline survey reveals that the project will have insignificant social cost as a result of the proposed investments in physical infrastructure. The need for land acquisition and resettlement and/or impact on livelihoods is minimized. 232. The proposals developed through the participatory planning process will be led by women based neighborhood groups (set up under the existing SJSRY framework) and representation of the poor and vulnerable groups in constitutionally mandated ward committees – the capacity of these entities (NHGs and ward committees) shall therefore be strengthened as a result of the project. The communities in the pilot slums will be directly benefited / empowered as a result of project interventions. 233. A Project Implementation Unit at city-level will oversee the community upgrading projects; Social and Community Development Experts at the PIU will oversee project implementation and interaction with identified NGOs for development and implementation of an IEC strategy, implementation of the participation strategy and Gender Action Plan and project monitoring. 234. The emphasis shall be on maximizing community participation by undertaking initiatives to ensure: • That public awareness regarding the program is focused and the community is consulted in project design, implementation and monitoring; and • That the investment provided is used to maximize benefits e.g. hygiene awareness to maximize health impact of water and sanitation components; and water use management to improve the effectiveness of the water supply component. 235. In addition, support for community participation in the implementation of infrastructure components will help: • Maximize the efficiency of investment through community involvement and monitoring, and • Maximize sustainability, through community ‘ownership’ of schemes/projects. 75 BUDP Main Report (May 2008) X. IMPLEMENTATION ARRANGEMENTS A. Executing and Implementing Agencies 1. Nodal Executing Agency 236. Project Management Unit (PMU) should be autonomous and have all the powers delegated to it to implement the Project under PAC’s guidance and could be either under the UDD or PHED. Proposed PPTA will further define this in consultation with stakeholders.. 237. The PMU shall be based in Patna, and shall be headed by a Project Director (PD) of the Indian Administrative Service (IAS) cadre. The PD shall be responsible for overall implementation and management of the Project, and coordination with GoB and ADB as also reporting to the state-level Project Advisory Committee (PAC) constituted for the Project. The PMU will be assisted by the Project Management Consultant (PMC) in managing the Project and assuring the technical quality of design and construction. The PMU should be adequately staffed to get familiarization with works done at various stages such as Technical Assistance, ADB’s fact finding missions, Bridging Technical Assistance, Loan Appraisal etc. This needs creation of a Technical Cell, in the PMU, headed by a Senior Engineer and supported by adequate technical staff related with environmental infrastructure. However, creation of a full fledged PMU is expected to take some time. It is thus suggested that an interim PMU is established immediately with the senior level bare minimum core staff. The proposed core team/ staff of the interim PMU is included in Appendix 7. 2. Implementing Agency 238. Under the PMU, two Project Implementation Units (PIUs) will be established one at Patna and the other at Gaya. Suggested organization structures of the two PIUs are given in Appendix 7. These PIUs will carry out daily implementation activities required under the Project and will be established in Patna and Gaya. Further, the PMU and PIUs will be assisted by the Design and Supervision Consultants (DSC), in preparing the design documents, managing tendering of contractors and supervising the construction works. 76 BUDP Main Report (May 2008) B. Project Management and Administration 239. At the state level an inter-departmental Project Advisory Committee (PAC) shall be formed for the Project to provide policy guidance and coordination across all towns and subprojects. The PAC shall be chaired by the Development Commissioner and members shall include Secretaries of UDD, PHED, Finance, and Managing Director of BRJP and/or representatives of other relevant Government Departments. The Project Director shall act as Member Secretary and Convener of the PAC. 240. The PAC will meet regularly (preferably once in three months) to review project performance and decide on major issues, such as counterpart funding, implementation bottlenecks, land disputes, procurement, and policy reforms. The PAC can also meet more frequently whenever issues of urgent necessity call for the same. 241. Likewise, City Level Committees shall be established under the chairmanship of the respective Municipal Commissioner to coordinate and provide guidance on the ULB-level implementation issues. The CLCs shall meet at least quarterly or more frequently, if required, to review project activities, identify issues for improvement, and provide guidance to the PIUs on actions to be taken to improve project performance. In ULBs where water supply/source augmentation sub-projects are proposed, representatives from BRJP shall be made members of the CLCs. C. Procurement and Disbursement Procedures 1. Procurement of Goods and Works 242. The term “goods” includes supply of equipment and materials for immediate use that cannot be combined under a larger contract. The contract of procurement of goods in addition to supply may include installation, testing, commissioning and trial run by the supplier as needed by the purchaser. 243. The term “works” includes all types of civil works, including turnkey contracts. Civil works combined with supply and installation of equipment like pumps, motors, instruments, gauges, meters generally involved in water supply and sewerage works shall be considered as civil works contracts only regardless to their cost. 244. Procurements to be financed by the loans under the Facility will be carried out in accordance with ADB’s Procurement Guidelines (April 2006) as amended from time to time. International competitive bidding (ICB) procedures will be used for civil works contracts estimated to cost $10 million or more, and supply contracts valued at $1.0 million or higher. The upper limit for civil works and equipment to be procured through National Competitive Bidding (NCB) procedures will be less than $10.0 million and $1.0 million respectively. Shopping will be used for contracts for procurement of equipment 77 BUDP Main Report (May 2008) worth less than $ 100,000. The feasibility of community contracting will be examined on a case-by-case basis for upgrading slum infrastructure not exceeding $100,000 in value. 2. Bidding procedure for Procurement of Goods and Works 245. All bids for procurement of goods and works shall be initiated by the Project Management Unit (PMU) under guidance of the state level Project Advisory Committee (PAC). Following bidding procedures are generally recommended from which the EA may select one to suit the nature of the particular procurement: (a) Single-Stage: One-Envelope (b) Single-Stage: Two-Envelope (c) Two-Stage: Two-Envelope (d) Two-Stage 246. The Single-Stage: One-Envelope bidding procedure is the main bidding procedure used for most of the procurement through pre-qualified contractors. This is generally applied on item-rate contracts. The Single-Stage: Two-Envelope bidding procedure allows bids to be evaluated on purely technical and administrative grounds without reference to price. This procedure is mostly adopted for item rate contracts and when pre-qualification has not been done. The Two-Stage: Two-Envelope bidding procedure should be used for procurement where alternative technical proposals are possible, such as certain types of machinery or equipment or manufacturing plant or treatment plants. The Two-Stage bidding procedure may be adopted in large and complex contracts where technically unequal proposals are likely to be encountered or where the Purchaser is aware of its options in the market but, for a given set of performance requirements, there are two or more equally acceptable technical solutions available to the Purchaser. 247. Direct contracting shall generally be discouraged but can be examined on case to case basis for values equivalent to $100,000 or less as per ADB procurement guidelines generally for small community based works like low cost sanitation, public toilets, slum area improvement and minor works. 248. Force Account. Force Account procedures may also be adopted by the Borrower where Government workforce, equipment and other resources are used for civil works. This method will be employed when the size, nature and location of the works make it unsuitable to adopt competitive bidding, and the ADB is satisfied that the construction facilities available are adequate and efficient, and the Borrower has the capability to undertake the works expeditiously and at reasonable cost. 78 BUDP Main Report (May 2008) 249. The proposed Project Advisory Committee (PAC) would be the final authority for making all decisions regarding financial, administrative and other matters relating to the Project. For effective project implementation and achieving the objectives of the Project, the PAC will delegate powers related to tenders to the Project Director, who will have full power to invite bids, conclude negotiations and award the contracts for all tenders with a premium up to a maximum of 25%. All sub-project designs will require the Chief Engineer’s (PMU) technical sanction before proceeding for tender/bids; for water supply and sewerage components. Municipal and slum-level infrastructure designs shall acquire technical approvals and proceed for bidding by each Implementing Agency. Tentative Procurement packages for the sub-projects to be taken up in BUDP are given in Appendix 8. 3. Disbursement Procedures 250. The loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook and Interim Guidelines for Disbursement Operations, LIBOR-Based Loan Products. An imprest account will be established at the Reserve Bank of India and to expedite implementation of the Project through the timely release of loan proceeds. First Generation Imprest Account (FGIA) will be established by Government the Controller of Aid Accounts and Audit (CAAA) with Reserve Bank of India (RBI). The FGIA will be denominated in USD. The initial amount to be deposited in the imprest account will not exceed the lesser of the equivalent of six months expenditures or 10 percent of loan amount. This initial advance or replenishment - by ADB into the FGIA will be converted into equivalent rupees by CAAA as per its extant policy (currently at the prevailing rate of exchange on the date of ADB disbursement) and transferred in rupees through the budgetary mechanism. 251. It is proposed that a second-generation imprest account (SGIA) will be opened immediately, in compliance of the State Government, with prescribed procedures as agreed-upon by the Government of India (the Borrower) and ADB. Under the SGIA, CAAA will pass on the rupee equivalent of ADB’s imprest advance to the EA through the budgetary mechanism. The EA will maintain the advance in a separate commercial bank account and withdraw from it only the eligible portion of expenditure. The SGIA would be managed, replenished, and liquidated in accordance with the Loan Disbursement Handbook and the detailed arrangements agreed to by the Borrower and ADB. The initial and subsequent amounts to be deposited in the SGIA will be determined by ADB in consultation with the Borrower. 79 BUDP Main Report (May 2008) Funds Flow Mechanism USD Advance Replenishment Asian Controller of Aid Department of Expenditure Development Accounts and Plan Finance Division Bank (ADB) Audit (CAAA) (PF1) Submit Liquidation cum Replenishment in Release rupee USD equivalent State Finance Department Allow withdrawal against funds received from PF1 Provide state government share Parent Department for EA awal application for incurring expenditure (E.g. UDD) Deposit rupee funds received for ADB imprest Submit liquidation withdr Submit liquidation Executing Agency Main Operating Commercial ADB SGIA (Commercial Municipal Bank Account Bank Account (Account Corporation (Account B) ADB A) (Rupee Funds) (U LB) Share Pay 100% to suppliers and contractors Suppliers and Contractors - deliver Goods & Service 80 BUDP Main Report (May 2008) 252. Withdrawal of Loan Funds: The system of withdrawal of loan funds consists of four major types briefly described below. (i) Imprest Fund Procedure. GoI will open an Imprest Account (IA) with Reserve Bank of India. This Imprest Account shall be established, managed, replenished and liquidated in accordance with ADB’s Loan Disbursement Handbook dated January 2001, and the Interim Guidelines for Disbursement Operations for LIBOR- Based Loan Products dated July 2002, both as amended from time to time, and detailed arrangements as agreed upon between the GoI and ADB. • Subject to approval of ADB, GoI and GoB Finance Department, Urban Development Department (UDD) will open a Second Generation Imprest Account (SGIA) in a non-interest bearing commercial bank account. GoI shall pass on the rupee equivalent of ADB’s imprest advance as mentioned in (i) above. The SGIA shall also be established, managed, replenished and liquidated in accordance with ADB’s Loan Disbursement Handbook dated January 2001, and the Interim Guidelines for Disbursement Operations for LIBOR- Based Loan Products dated July 2002, both as amended from time to time, and detailed arrangements as agreed upon between the GoI and ADB. The initial amount to be deposited and thereafter to be maintained in the IA shall not exceed the equivalent of 10 percent of the Loan or the estimated expenditures of the next six months whichever is lower. • The Statement of Expenditure (SOE) procedure shall be used for reimbursement of eligible expenditures for the Project and to liquidate advances provided into the IA or SGIA, in accordance with the “Loan Disbursement Handbook” dated January 2001, as amended from time to time and detailed arrangements agreed upon between GoI and ADB. Any individual payment to be reimbursed or liquidated under SOE procedure shall not exceed the equivalent of US$ 100,000. There are two methods of liquidating Imprest Account and SGIA proceeds. (a) Full Documentation. For payments of value of US$ 250,000 and above to be accompanied by supporting documents such as receipts, invoices, or other forms of evidence of payments; and (b) Statement of Expenditure (SOE). SOE shall be used for payments incurred for small expenditures not exceeding US$ 250,000. Along with the Withdrawal Application, a SOE duly certified by persons authorized to sign Withdrawal Applications is to be submitted to ADB. All the relevant documents (invoices, receipts, etc.) will be retained by PMU and will be available for ADB officials’ examination, as and when requested. (ii) Direct Payment Procedure. ADB, at the request of the UDD and PMU, pays a designated beneficiary directly. A separate Withdrawal Application is required for each currency. The following supporting documents must be submitted to ADB 81 BUDP Main Report (May 2008) together with the Withdrawal Application: Contract or Confirmed Purchase Order; and in addition: • For Payment of Goods : Supplier’s invoice or bill of lading. • For Payment of Services : Consultant’s claim or invoice. • For Payment of Civil Works : Claim or invoice from the Contractor and work progress certificate signed by the authorized representative of PMU and / or PIU. (iii) Commitment Procedure. ADB, at the request of UDD and PMU, provides an irrevocable undertaking to reimburse a Commercial Bank for payments made or to be made to a supplier against a Letter of Credit (L/C) financed from the loan account. (iv) Reimbursement Procedure. ADB pays from the loan account to PMU’s account for eligible expenditures, which have been incurred and paid for by the Executing Unit(s) out of its budget allocation. This procedure normally requires submission of full supporting documentation. 253. Loan Agreement entered into between ADB and GoI will specify the selected method for withdrawal of funds under the Project. D. Implementation Schedule 254. The Project is to be implemented over a five year period, commencing in FY 2009-10 and civil works construction starting in FY 2009-10. Completion is scheduled by end FY 2013-14. Consulting Services will be procured in FY 2008-09 and GoB may use retroactive financing to meet consulting services costs. 255. The tentative implementation schedule is given in Appendix 9 E. Project Performance Monitoring 1. Reporting Requirement 256. Project performance will be reviewed in a three-tier system. First, the PMC will review progress on each component and the performance of each city PIU. The review will take place in the first 10 days of the month for the previous month’s performance. Monthly performance reports will be prepared for each project city by the DSC and submitted to the PMU. Based on the reviews, the PMC will suggest changes in the Project design and 82 BUDP Main Report (May 2008) implementation, or refer the issues to the PAC through the PMU. The review report will be sent to ADB, the PAC, and the City Level Committees (CLC) for necessary action. 257. The PAC will conduct the second tier review during its quarterly meetings. The monthly project performance reviews and major policy issues will be reviewed and actions to be taken by the respective authorities will be recorded. The results of the review will be circulated to ADB, EA, and the project ULBs. The third tier review will be conducted by ADB every 6 months, with the ADB Review Mission visiting project cities, to discuss major issues with EA and the project ULBs and forward their opinion for action at the state government level. 258. The project review will be supplemented by a formal comprehensive midterm review— with the participation of senior Central Government and State officials as well as ADB staff—when detailed design is completed and major contracts have been awarded and started. The review will be held about 24 months after the loan effectiveness date. It will critically evaluate actual project progress, implementation procedures, procurement methods, public relations and community awareness, BME activities, and the performance of the design and supervision consultants. Following the review, corrective measures, as appropriate, will be introduced to remedy any identified weaknesses. 259. In addition to the three tier review mentioned above, a Benefit Monitoring Consultant (BME) will be appointed to monitor the project benefits arising during and after implementation of the Project. The Consultant will compare the project benefits with baseline, as set up, and report. 2. Accounting, Auditing and Reporting 260. The PMU and the PIUs will establish and maintain separate accounts and records adequate to identify the incomes and expenditures related to the Project. They will be assisted by an adequate number of suitably qualified accounting staff including an accounts officer. 3. Summary of Auditing Requirement 261. Detailed consolidated annual project accounts, as maintained by the PMU, will be audited by independent auditors acceptable to ADB and will be submitted to ADB within 9 months, or otherwise as specified in the Loan Agreement, of the close of the fiscal year. The annual audit report will include the audit of the imprest account, SGIA, and SOE procedure, and a separate audit opinion on the use of the SGIA and SOE procedures. UDD and the project local bodies (ULBs) should be made aware of ADB’s policy on delayed submission, and the requirements for satisfactory and acceptable quality of the audited accounts. 262. The accounts and records pertaining to the Project must be consistently maintained in accordance with sound accounting principles. The Auditor should also express an opinion whether the financial report has been prepared using international accounting standards or local procedures which are consistent with generally accepted accounting standards and 83 BUDP Main Report (May 2008) policies, and which have been consistently applied. 263. To the extent possible, ADB prefers that project accounts are maintained in accordance with international accounting standards as prescribed by the International Accounting Standards Committee. In this context, the Auditor should also comment on the impact of deviations, if any, of the accounting standards applied by the Borrower from international accounting standards. 264. The project accounts should be audited in accordance with appropriate auditing standards consistently applied by the Auditor. The Auditor should specify in the Auditor’s Report the auditing standards followed by them in conducting their audits. Furthermore, they should expand the scope paragraph in the Auditor’s Report by disclosing, at least, the key audit procedures followed in the audit. If there are any supplementary Financial Statements to the Project’s main financial statements, the Auditor should also make a statement as to whether the same audit procedures have been followed for the supplementary financial statements as for the Project’s main financial statements. 265. To the extent possible, ADB prefers that Auditors conform to international auditing standards issued by the International Federation of Accountants. In cases where other auditing standards are used, the Auditors should indicate in the Auditor’s Report the extent of differences and deviations, if any, and the impact on the audit, of the use of such auditing standards compared with that of international auditing standards. 266. Apart from expressing an opinion on the financial condition of the Project, the Auditors should also express an opinion as to whether: • The proceeds of the ADB Loan have been utilized only for the Project in accordance with the Loan Agreement; • The financial information contains data specifically agreed upon between the Borrower and ADB as being necessary for inclusion in the Financial Statements; • The financial information complies with relevant regulations and statutory requirements; and • All the financial covenants of the Loan Agreement have been complied with. 267. When a qualified opinion, adverse opinion, or a disclaimed opinion is given, the Auditor’s Report should state in a clear and informative manner all the reasons. 268. Actions or deficiencies disclosed by the Auditors in their Report should be resolved by the Borrower effectively and within a reasonable time. The Auditors should review and comment upon the adequacy of the corrective measures taken by the Borrowers in the subsequent Auditor’s Report. 269. In case of six months delay in the submission of audited accounts and financial statements, ADB will automatically suspend processing of reimbursements or commitment letters, replenishment of imprest account, and approval of award of new contracts. 84 BUDP Main Report (May 2008) 270. If the audited accounts and financial statements are not received 12 months after its due date, ADB will consider suspension of the Loan. 4. Project Performance Monitoring and Evaluation 271. The PMU will ensure that a Project Performance Monitoring System (PPMS) satisfactory to ADB is established within 3 months of the effectiveness of the Project loan. The PPMS will monitor and evaluate the performance of the Project, as well as of subprojects under loan, including key impact and outcome indicators and associated assumptions with corresponding target dates. Design and monitoring frame work is provided in Appendix 10. For subprojects under the PPP modalities, such as extended O&M contracts, if applicable, key performance indicators satisfactory to ADB will be developed during the preparation of requests for proposals and draft contract documents for each subproject. 5. Project Review 272. Based on a review of quarterly progress reports, ADB and GoB representatives will meet as required to discuss the progress of the Project, any changes to implementation arrangements, or remedial measures required to be undertaken to achieve the overall objectives of specific subprojects and components and of the overall Project. 273. In addition to regular reviews, including a mid-term review for each loan, a detailed midterm review of the Project will be undertaken within a certain period of the effective date as agreed under the Project Loan agreement by ADB and the Government. The midterm review will include a detailed evaluation of the Project, implementation arrangements, any outstanding issues, environment, resettlement and other safeguard issues, achievement of scheduled targets, contract management progress, and other issues, as appropriate. 6. Anticorruption Policy and Governance Measures 274. ADB’s Anticorruption Policy (1998, as amended to date) needs to be fully appreciated by the EA. Consistent with its commitment to good governance, accountability, and transparency, ADB reserves the right to investigate, directly or through its agents, any alleged corrupt, fraudulent, collusive, or coercive practices relating to the Project. To support these efforts, relevant provisions of ADB’s Anticorruption Policy are included in the loan regulations and the bidding documents for the Project. In particular, all contracts financed by ADB in connection with the Project shall include provisions specifying the right of ADB to audit and examine the records and accounts of the EA; the PMU; and all contractors, suppliers, consultants, and other service providers as they relate to the Project. 85 BUDP Main Report (May 2008) XI. Capacity Building Program A. Overview 275. Compared to many ULBs in India, the ULBs in the State of Bihar have hardly any professionalized management structure. This has possibly resulted in multiplicity of organizations in maintaining basic urban infrastructure services which are otherwise sole responsibility of the ULBs. The staff is not exposed to the modern tools and techniques in various fields including engineering, computerization, accounting and administration. There are major inherent constraints in any ULB with restrictive rules and archaic procedures. It is reported that there is no exhaustive structure to upgrade job allocations and provide an atmosphere of job enrichment; governance issues have not been consciously addressed as yet. There is no common cadre for the municipal staff, which otherwise means that staff employed by one ULB is to retire from the same ULB. In most ULBs there is large number of posts lying vacant for several years. All these are possibly due to ULBs not being imparted with due level of importance in the State. However, the State appears to be committed in activating and enhancing the powers and functions of the ULBs. State has enacted and promulgated New Municipal Act in the year 2007. 276. While BUDP will ensure infrastructure provision in the two municipal corporations, for long-term sustainability of the assets created and for effective management of urban basic services, it is imperative to address key urban management issues. Infrastructure creation under BUDP will be implemented by the Project Management Unit (PMU) at the state- level in association with Project Implementation Units (PIUs) at each of the two cities. The urban management component under BUDP is related to institutionalizing a system to address the municipal corporations’ ability to sustain service provision and the Urban Development Department’s ability to oversee service delivery. In summary, the urban management and institutional development under BUDP will address: (i) Capacity building of the Urban Development Department regarding internal systems and procedures and ULB performance monitoring at the UDD; (ii) Capacity building of municipal corporations comprising urban planning, asset inventory, accounting and financial management; and (iii) Municipal staff training on project development design and implementation – this shall apply to the municipal corporations; B. Capacity Building 277. The current role of the Urban Development Department is primarily related to policy formulation and administrative control of all agencies within its purview including tracking Plan fund flows/devolution and human resource/personnel management. However, in order to enhance the role of the UDD in urban management, the capacity building assistance activities comprise: 86 BUDP Main Report (May 2008) (i) Facilitating creation of a database on municipal services and finances – across all corporations and selected municipalities – which is expected to facilitate performance monitoring of ULBs, facilitating future State Finance Commission recommendations and providing a basis for Plan fund devolution; (ii) Facilitating creation of a database on human resources/personnel in selected ULBs and associated attributes including payroll and pension details and to facilitate performance based promotions, transfers and consideration for training; (iii) Preparing a Budgeting Manual to allow departments to provide accurate and planned financial requirement to the Accounts Department, this will complement the proposed double-entry accounting system; (iv) Analyzing cost of providing municipal services and identifying the base and basis for taxes and tariffs – establishing guidelines for property taxation and a basis for fixing user charges for at least water, sewerage and solid waste management; and (v) Facilitating creation of a database on municipal assets and asset valuation as a leveraging option for infrastructure financing in the State’s ULBs. 278. Key outputs comprise: (i) Comparative Performance Assessment/Municipal Database institutionalized at the UDD and maintained by the UDD for ready reckoning by the State in policy matters; (ii) Database on the ULBs’ human resources/personnel; (iii) Budgeting Manual for ULBs; (iv) State Policy on environmental sanitation infrastructure cost recovery; and (v) State Policy/Guideline on financing patterns for infrastructure projects. 1. Capacity Building – Municipal Corporations 279. The capacity building assistance to the municipal corporations is aimed at addressing the planning, core service delivery, institutional development and financial management improvements. The capacity building assistance activities and outputs comprise: (i) Facilitating financial management reforms through property tax rationalization and accounting reforms by (i) transiting to a double-entry accounting system from the existing cash-based accounting system (this exercise will also involve valuation of municipal assets and preparing an inventory of municipal liabilities); (ii) Facilitating other e-governance initiatives including (i) municipal-citizen interface through citizen charters and provision of information kiosks, etc.; and (ii) 87 BUDP Main Report (May 2008) networking of office for information access and work flow; However, capacity building activities under BUDP needs to be finalized only after the completion of the project scoping activities currently being carried out by DFID. Further detailing will be taken up under the proposed PPTA. 280. In order to undertake accounting reforms, it is imperative to ascertain the completeness of the accounting and Management Information Systems (MIS) software proposed for usage by the ULBs, prepare a methodology for asset valuation, and based on the aforesaid activities, prepare an accounts and audit manual for usage by ULBs. The indicated activities can be proposed as a separate Technical Assistance (TA) by the ADB, to the corporations. The TA shall provide the requisite manual for rolling-out the transition activities in the municipalities. Department for International Development (DFID) has initiated a project on capacity building exercise for ULBs in Bihar state. This is in preliminary stage. This needs to be explored further before finalizing the scope for capacity building under BUDP. 281. Key components in the process of conversion are: (i) Ensuring compliance of the accounting system with the guidelines stated in the National Accounting and Auditing Manual currently being prepared by the Government of India, by preparing and adopting a State Municipal Accounting Manual; (ii) Verifying assets and liabilities in the records of urban local bodies; (iii) Conducting a valuation of assets and liabilities for entry into the urban local bodies’ accounting records; and (iv) Obtaining chartered accountant’s certification on the financial records of urban local bodies upon conversion to accrual/double-entry accounting. 282. Capacity Building program to be taken up under BUDP is given in Appendix 11 88 BUDP Main Report (May 2008) XII. FINANCIAL ANALYSIS A. General . 283. Financial analysis and financial internal rates of return were determined in accordance with ADB's Framework for the Economic and Financial Appraisal of Urban Development Sector Projects. Financial analysis was conducted to assess the financial viability of the various component of the Project, i.e. water supply, sewerage and solid waste management following ADB's Guidelines for the Financial Analysis of Projects. The main objective of evaluation was to determine various aspects of financial feasibility of the selected components in the implementing agencies including cost analysis. 284. Financial Internal Rates of Return and Average Incremental Financial Costs were calculated and sensitivity analyses were carried out for each sub-project. Sub projects’ Financial Internal Rates of Return (FIRR) have been independently worked out at constant financial prices considering the incremental cost and benefit streams over the anticipated useful life of all direct revenue earning project and tested with the sensitivity analysis under given variables. The project will be considered financially viable when the FIRR is more than the weighted average cost of capital which in this case is considered as 5%. 285. The proposed tariff levels were assessed to ascertain their affordability to the beneficiaries, in particular the low-income group and poor households, i.e. those below the poverty line. Financial projections for the Patna and Gaya MCs were also performed to determine the financial capability of these MCs to implement and operate the sample sub-projects on a sustainable basis. B. Sub-Projects 286. Financial Analyses of following sub-projects have been carried out: (i) Rehabilitation and Improvement of Water Supply System – Patna; (ii) Rehabilitation and Improvement of Water Supply System – Gaya; and (iii) Rehabilitation and Improvement of Sewerage System – Patna. C. Financial Projections 287. Financial projections performed for the Patna and Gaya MCs consist of projected revenue receipts and revenue expenditures during the assumed implementation period (FY 2009-10 to FY 2013-14) plus 15 years after project completion. 89 BUDP Main Report (May 2008) (i) The projected revenue receipts include all receipts from own source tax income like property and entertainment taxes and own source non-tax income like income from municipal properties; and all revenue transfers from the State Government in the form of assigned and shared taxes and grants-in-aid. The projected revenue expenditures include all recurrent expenditures, including those of the sub-projects, to be met from revenue receipts. The financial projections also include the MCs’ assumed equity contribution to be met from its own resources in accordance with the financing plan, where applicable. a) Property Tax: projected based on ARV per property; number of assessments to grow at a nominal 5 percent per annum till all the properties are brought under property tax in FY 2017 and thereafter an annual increase of 1 percent has been assumed and surveys to be conducted once in five years. One time revision in ARV @ 60% is proposed in FY 2013 as there has been no revision in the ARV since 1995, and tax rate since 1995 in PMC. Even if annual increase of 5% is considered from 1995 onwards, the suggested increase is quite reasonable. This has also been discussed and agreed to in Stakeholders’ consultation. Thereafter an increase of 20% in every four years i.e. at 5 percent per annum has been suggested. Collection performance assumed (overall) at 85 percent against arrears and current demand from FY 2015. b) Water Charges: no new connections envisaged in the base case scenario and increase in water connections is a result of the availability of additional water for distribution – it is assumed that 85 percent of the population would have water connections by FY 2014; the current rate of water tax is levied @ 2% of ARV as part of property (holding tax); Initial introduction of a flat rate at Rs. 30 per month per property from FY2011; Introduction of volumetric tariff from FY 2014 with average tariff of Rs. 3 per KL, which is proposed to be increased at 20 percent every four years from FY2018; collection performance is assumed at 85 percent of total demand. c) Sewerage Charges: it is assumed that 29 percent of the properties under this Phase would have sewer connections by FY 2014; an average surcharge rate of 30 percent of the water charges is proposed from FY2011 onwards; collection performance is assumed at 85 percent of the demand; and new (one-time) connection charges are adopted at Rs.4, 000 per connection. (ii) Other revenue income from own sources. All revenue income from own sources, like rental from municipal properties, license fees etc., other than property-related taxes, and water and sewerage charges, where the base and basis is not clearly defined, are forecast based on the observed trend during the past five years/assessment period (2002-03 to 2006-07). (iii) Grants and Contributions. Revenue income in the form of grants and contributions are also forecast based on the observed trend during the last five years (2002-03 to 2006-07), and is expected to grow at 10 percent annually. 90 BUDP Main Report (May 2008) (iv) Incremental Revenue Income due to Sub-Projects; The sub-projects – in case of water and sewerage projects – are expected to secure additional revenue by way of increase in number of assessments and levy of user charges. Initially a flat rate of Rs. 30 per month per property is proposed from FY2011. Subsequently, water charge is adopted at an average of Rs.3 per kl (FY2014) with a revision of 20 percent every four years from FY2018; and the sewerage charge is adopted at 10 percent of the water charges to start with and increased to maximum of 30% in FY2021. The additional revenue income due to water supply and sewerage sub- projects is computed based on the proposed number of properties, new connections, proposed tariffs and assumed collection performance (at 85 percent of demand). 288. Revenue Expenditure: Key assumptions for forecasting revenue expenditure comprise: (i) Expenditure on Municipal Services. Expenditure on municipal services including general administration, revenue collection and service delivery are forecast based on the observed trend during the past five years (2002-03 to 2006-07), and is expected to grow at 6 percent annually. (ii) Outstanding Non-debt and Debt Liabilities. Currently, as per available information, Both MCs does not have any outstanding non-debt liabilities like payments due to employees, BSEB, etc. Hence, it is assumed that future non-debt liabilities will not occur. Outstanding debt liabilities are proposed for clearance based on the terms and conditions stipulated for each loan. (iii) Additional O&M Expenditure due to Sub-Projects. Estimates of O&M costs applicable for asset maintenance (manpower, consumables, power charges, etc.), has been made for the proposed the capital investment. In case of water supply the O&M costs estimated for analysis purpose is Rs. 24.85 million and Rs. 6.46 million in case of Patna and Gaya MC respectively. For Patna sewerage sub-project estimated O&M cost at Rs. 38.7 million has been used in analysis. D. Cost Recovery 289. Water Supply: No separate user charge is at present levied and collected. Only water tax @ 2% of ARV is being collected as part of the property tax. For the financial projections, a new monthly flat rate of Rs. 30 per month per property from FY2011 followed by a new volumetric water charge is adopted at an average of Rs.3 per kl (FY2014) with a revision of 20 percent every four years starting from FY2018; The additional revenue income due to water supply and sewerage sub-projects is computed based on the proposed number of properties, new connections, proposed tariffs and assumed collection performance (at 85 percent of demand). 290. This tariff proposal and increases coupled with the reduction in NRW through BUDP, improved financial performance through implementation of reform measures like 91 BUDP Main Report (May 2008) improved billing and collection efficiency will help reduce the state annual operational subsidies and schemes will be self financing in Patna and Gaya by FY2021 and FY2014 respectively. . 291. A policy should be agreed to increase the provision of direct house connections in place of providing public stand posts. This action would result in increasing consumers directly connected into the water tariff net. The current connection fee is assumed to remain the same to make it affordable and encourage shift to house connection. In both cities the BPL and poor population will get water from public stand posts. For the lower income group, in both the project cities, provision has been made, for the providing house connection with meters, in the proposed project. 292. In the medium term, it is assumed that no recovery will made from street tap users for practical and affordability considerations; the low-income group and poor households being the major users of street taps. The MCs, however, will institute control measures for the use of street taps to avoid wastage. 293. Sewerage: No separate user charge is at present levied and collected. Only sewer (Latrine) tax @ 2% of ARV is being collected as part of the property tax. Like water supply, sewerage operations are subsidized by the State. Sewerage charge is adopted at 10 percent of the water charges to start with and increased to maximum of 30% in FY2021. The additional revenue income due to water supply and sewerage sub-projects is computed based on the proposed number of properties, new connections, proposed tariffs and assumed collection performance (at 85 percent of demand). As in the case of water supply, for the lower income group, in both the project cities, provision has been made, for the providing house connection, in the proposed project. This tariff proposal and increases coupled with improved financial performance through implementation of reform measures like improved billing and collection efficiency will help reduce the state annual operational subsidies and schemes will be self financing in Patna by FY2021. E. Financial Internal Rate of Return 294. The financial viability of a sub-project is assessed by comparing the sub-project’s Financial Internal Rate of Return (FIRR) with the Financial Opportunity Cost of Capital (FOCC). As proxy for the FOCC, the Weighted Average Cost of Capital (WACC) of the sub-projects in real terms is used. FIRR is the discount rate that equalizes the present values of costs and revenues over the sub-project life while the WACC represents the cost incurred to implement the sub-projects. The WACC has been assessed as 5%. FIRR was calculated for each sub-project. The assumptions and approach used in the calculation of the FIRR include: (i) all revenues and costs are stated at constant 2007-08 prices; (ii) all revenues and costs are calculated on an incremental basis, i.e. difference between “with projects” and “without project” situations; and (iii) sub-project capital expenditures are recognized at the time they are incurred. Sensitivity analyses were also carried out to determine the possible effects of adverse changes on the sub-projects. The key variables considered are: (i) 10% increase in capital costs; (ii) 10% increase in O&M costs; (iii) 10% decrease in revenues; and (iv) the worst scenario; For water supply sub-projects, 92 BUDP Main Report (May 2008) additional sensitivity analyses were carried out considering: (i) NRW assumption higher by 10%; (ii) water demand assumption lower by 10%; and (iii) tariff increase assumption lower by 50%. The results of the FIRR calculation and sensitivity analyses are summarized in Table 36. The detailed calculations are given in Appendix 12. Table 36: Summary of Financial Evaluation City/ NPV 5% FIRR, SI Base Capital O&M Revenues Worst Component Rs. & SV Case Costs Cost decrease Scenario Million increase increase 10% 10% 10% Patna Water 2,376.9 FIRR (%) 14.6% 13.4% 14.5% 13.2% 11.9% SI 0.9 0.1 1.1 SV (%) 110%2138% 93% Sewerage (947.6) FIRR (%) -12.8% -ve -ve -ve -ve SI -ve -ve -ve SV (%) -ve -ve -ve Water & 1,429.2 FIRR (%) 9.3% 8.3% 9.2% 8.0% 6.8% Sewerage 1.3 0.2 1.7 78% 645% 60% Gaya Water 210.2 FIRR (%) 13.0% 11.8% 12.8% 11.5% 10.3% Supply SI 1.0 0.1 1.2 SV (%) 104% 750% 81% NPV = Net Present Value SI = Sensitivity Indicator (ratio of %age change in NPV to the %age change in a variable) SV = Switching Value (%age change in a variable required for the NPV to become zero) Source: Analysis 295. The water supply sub-projects are all financially viable with FIRRs higher than the WACC. The sewerage sub-project, however, have negative FIRRs due to high investment costs. The combined FIRR for water and sewerage, in case of Patna, is positive. Analysis indicate that the sample sub-projects’ are sensitive to the key variables requiring periodic revisions of user charges 93 BUDP Main Report (May 2008) F. Average Incremental Financial Cost and Subsidy 296. The analysis shows that the average tariffs, for the water supply and sewerage cover fully their respective incremental O&M costs with their average tariffs higher than their respective AIFC for O&M. On completion of project, minimum tariff required to recover O&M costs, in case of water supply is Rs. 2 per kl in Patna and Rs. 3 per kl in Gaya. Similarly the minimum tariff required to recover O&M for sewerage in Patna is Rs. 5 per kl. However, full cost recovery (investment and incremental) is not feasible in case of Patna Sewerage sub-project. Calculation of the AIFC, its relation with the average tariff and financial subsidy is summarized in Appendix 13. G. Beneficiary Affordability 297. A socio economic survey was conducted under to assess the willingness and affordability of the beneficiaries to pay for the improved urban services. The population distribution by income group is as given in Table 37: Table 37: Population Distribution by Income Group City Urban Poor (incl. BPL) LIG MIG HIG Total Patna 11.4 18.5 46.3 23.8 100% Gaya 14.1 32.6 43.5 9.8 100% Source: Socio-Economic Survey 298. The survey results indicated a large willingness to have improved urban services. However, the willingness to pay among the poor was low and a higher willingness to pay from the non-poor for obvious financial reason. H. Affordability Analysis: 299. An analysis was undertaken to determine if the beneficiaries, in particular the poor households, could afford the proposed water and sewerage tariff. The generally accepted guideline is that the combined charges for water and sanitation should not exceed 3-4% of household income. The average household income gathered in the socio-economic survey (December 2007) and the assumed water usage in FY2014 were used in the analysis. The analysis tested the projected tariffs that would prevail in FY2014. Details are presented in Table 38. 94 BUDP Main Report (May 2008) Table 38: Household Affordability Analysis HH Mean Water Usage in Water Charge Sewerage Charge in 2014 City / Income* 2014 in 2014 at 2008 at 2008 Price Income Price Group Rs. / KL/ Rs./ % of Income Rs./ Month % of Income Month. Month Month Patna HIG 17,500 40118 0.7% 35 0.2% MIG 12,500 3074 0.6% 22 0.2% LIG 8,000 2043 0.9% 13 0.3% BPL/UP 4,500 14 28 1.1% 8 0.3% Gaya HIG 17,500 40118 0.7% MIG 12,500 3074 0.6% LIG 8,000 2043 0.9% BPL/ UP 4,500 14 28 1.1% Source: Analysis 300. The results of the analysis show that the proposed tariff charges are well within the affordability limit. No affordability problems therefore are foreseen for the proposed tariff charges. I. Project Sustainability 301. Water supply and sewerage are revenue generating sub-projects whose operation and maintenance costs could be fully covered with user charges. Their respective average tariffs, which are affordable, are higher than their respective AIFCs. The user charges, however, would have to be revised periodically as discussed in the cost recovery proposals to ensure financial sustainability. In the case of the sewerage sub-projects, sewerage charges would be adequate to cover the full O&M cost of operations. The cash flow statements of the implementing agencies from FY 2010 to 2027-28 detailing the sub- projects’ revenues, O&M cost and operating subsidy are presented in Appendix 14. 302. Financial reforms in Appendix 15 outline the actions and steps during the implementation and post-implementation periods to ensure the sustainability of the sub-projects. The financial reform measures and the cost recovery proposals for revenue generating sub- projects will ensure sustainability of the proposed sub-projects. Periodic adjustments of own source revenue such as property tax, license fees and direct user charges are vital for the sustainability of the sub-projects. The State must allow the ULBs - to revise local taxes, fees and charges regularly in accordance with prescribed procedures and within limits set by law to make them less reliant on state subsidies by the ULBs. 303. Table 39 summarizes the results of the financial projections for the Implementing agencies from FY 2009-10 to 2027-28. The detailed financial statements for each city are 95 BUDP Main Report (May 2008) given in Appendix 14. Table 39: Summary of Projected Financial Position (Rs. Million) Item 2010 2014 2021 2028 Patna Municipal Corporation Rs. Million Revenue Account Opening Balance (510.4) (987.8) (118.3) 1,429.2 Revenue Income 380.7 705.2 1,214.2 1,651.0 Revenue Expenditure 553.5 946.5 1,399.6 1,727.0 Closing Balance (683.2) (1,229.1) (303.7) 1,353.1 Revenue Account + Sub-Project Cash Flow Sub-project Cash Flows 457.0 483.3 629.6 Closing Balance (772.0) 179.6 1,982.7 2010 2014 2021 2028 Gaya Municipal Corporation Revenue Account Opening Balance 17.7 193.6 767.2 1,601.1 Revenue Income 87.3 151.4 263.3 387.7 Revenue Expenditure 55.3 105.5 191.4 351.0 Closing Balance 49.7 239.5 839.1 1,637.7 Revenue Account + Sub-Project Cash Flow Opening Balance Sub-project Cash Flows 28.1 42.5 61.9 Closing Balance 267.6 881.6 1,699.6 Source: Analysis 304. The results of the financial projections show that the Implementing agencies could generate sufficient revenues to meet full O&M costs and part of the debt service obligations, where applicable, over the forecast period with declining state support during the pre and post project implementation. The financial improvement action plan which needs to be adopted and implemented to achieve the financial sustainability is presented in Table 40. 96 BUDP Main Report (May 2008) Table 40: Financial Improvement Action Plan Item / Current Situation FY FY FY FY FY FY FY FY Remarks 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 A. Water Supply • Increase in monthly water Introduce Volumetr No separate user charge is levied for charge per connection flat rate ic Tariff water at present. Water Tax @ 2% of for water Introduce ARV is collected as part of Property charge @ d - Av. (Holding Tax). Volumetric tariff Rs. 30 Tariff - introduced in FY2013-14 to be /property Rs. 3 per increased @ 20% every four years / month KL from FY2018. Water tax 2% of ARV collected Water tax - 2% of ARV + flat rate Water tax – 2% of ARV + Volumetric tariff introduced (for Roadmap along with property tax will be applicable metered connections) + flat rate for un-metered connections will be applicable Collection Performance 45% 50% 59% 64% 73% 84% 85% 85% As per JNNURM MoA timeline B. Sewerage • Increase in monthly sewer 30 % of Sewer charges are proposed as charge per connection water monthly fees at 30% surcharge on charges water in FY 2011 onwards. in FY 2011 Collection Performance 45% 50% 59% 64% 73% 84% 85% 85% As per JNNURM MoA timeline C. Property Tax • ARV Revision - - - - 60% of - Subsequent revisions in ARV made ARV in once every four years @ 20% from FY 2013 FY2017. Number of property increase @ 5%, till uncovered properties are brought under property tax, thereafter 1% annual increase and surveys once in five years. • Collection Performance 46% 53% 63% 69% 76% 83% 85% 85% • Arrear Demand 40% 46% 55% 60% 70% 85% 85% 85% As per JNNURM MoA timeline. • Current Demand 50% 60% 70% 75% 80% 83% 85% 85% 97 BUDP Main Report (May 2008) XIII. Economic Analysis of Sub-Project Components A. Introduction and Scope 305. The economic analysis examined the economic viability of the Project and was undertaken with reference to ADB guidelines for the analysis of Projects including: Framework for the Economic and Financial Appraisal of Urban Development Sector Projects (1994); Guidelines for the Economic Analysis of Projects (1997); Handbook for the Economic Analysis of Water Supply Projects; and also ERD Technical Note Series No. 14: Assessing Aid for a Sector Development Plan – Economic Analysis of a Sector Loan. The analysis also draws on a series of papers assessing the links between economic growth and poverty and a wealth of statistical and other data on the Indian and Bihar economies. The economic analysis examines the economic viability of the Project, The costs and benefits of the infrastructure improvement components of the Project were quantified using resource cost and ‘willingness to pay’ measures incremental to a ‘base case’, defined as the situation without the Project improvements. B. Economic Analysis of ADB’s Project Loan for BUDP 306. BUDP is a Project Loan, which will be implemented from the year 2009. The Economic Analysis relates to the Component A sub-project components identified under the Project. Part B components which include slum infrastructure, and Part C components capacity building, institutional strengthening and implementation assistance, are excluded as the benefits emerging from them are difficult to quantify. The analysis was undertaken over a 20-year operational period commencing 2009-10. 307. The Part A: Sub-projects are: • Rehabilitation and Improvement of Water Supply System - Patna; • Rehabilitation and Improvement of Water Supply System – Gaya and • Rehabilitation and Improvement of Sewerage System – Patna 308. The economic analysis was based on information from the socio-economic household survey undertaken by the BUDP. The survey results provided key data for the economic analysis. The investigations undertaken by the BUDP in relation to engineering, environmental, social, financial aspects relevant to the Project towns facilitated inter alia feasibility studies of the sub-projects. Data were obtained in the following areas: • Capital costs of improvement; • Annual operating and maintenance (O&M) costs of the improved infrastructure; • Forecasts of demand for/usage of infrastructure services; 98 BUDP Main Report (May 2008) • Supply characteristics of infrastructure networks and services delivery; and • Results of Socio-Economic survey conducted under BUDP. 309. The analysis is in two main parts: • Economic rationale of the Project, through addressing economic context, need, demand and overall project design principles. • Project analysis covering analysis of alternatives to justify component selection and a Project economic appraisal, comparing the economic internal rate of return with the economic cost of capital for a base case scenario and under sensitivity tests. C. Economic Rationale 310. The economic rationale is based on three key principles: • Basic human requirements for urban services, both for social development and for economic activity • The contribution of efficient and integrated urban services to sustainable economic development and poverty reduction • Prioritization of need and cost effective (least cost) solutions 311. The contribution of the Project to India’s main development objective of poverty reduction is basic to the Bank’s country strategy and program process. One of the main factors in this consideration is that a strong correlation exists between economic growth and poverty reduction in India. 312. This Project will contribute to the economic development of the cities/towns of Bihar by improving environmental and living conditions in these urban centers and, at the same time, enabling better access to economic opportunities by urban residents, particularly the poor. The range of infrastructure improvements provided by the Project will assist the municipal bodies and other urban service providers in delivering more effective infrastructure services and providing a better urban environment and quality of life than would otherwise exist. 313. An economic rationale of the Project is to provide basic urban services and environmental and living conditions at acceptable levels, not only for social development but also to enable access to economic opportunities (i.e. income and employment), particularly by the poor. In Bihar improvement in access to basic services for the poor like health, welfare and well-being should assist in overcoming the present lack of economic opportunities for the economically and socially disadvantaged groups and the resulting in to reduction in unemployment and under employment in these groups. 314. The present economic scenario of Bihar is marked inter alia by inadequate funding for urban infrastructure development and the lack of capacity of the MCs in planning, 99 BUDP Main Report (May 2008) implementing and managing basic municipal services. This State has a huge backlog of urban infrastructure development and low level performance in maintenance of urban service related assets. As a result, the hiatus between the demand for the need for and the supply of basic urban services is quite wide. The State Government is making an all out effort to create new industrial opportunities to attract investments in manufacturing, processing, IT and service sectors. Sustainability of this process of growth will be largely influenced by the extent that the essential urban infrastructure and environment improvement are made, civic amenities are created and well managed, and overall quality of life is up graded. 315. Goals of the Project • To ensure water supply at 150 lpcd in Patna and at 80 lpcd from existing sources in Gaya over the next 20 years. It is planned to meet the following bench marks, namely sufficient supply of potable water for the next 15 to 20 years; uniform and adequate pressure in the pipelines; and satisfactory quality of water. D. Selection Process 1. Underlying Principles 316. A series of underlying principles were adopted for Project selection and design: • A consultative and participatory process. This included consideration of the perceptions, needs and priorities of government, residents and the business community • Minimum provision of essential services through a combination of physical improvements and procedural and organizational change • Maximizing the benefits of existing assets through physical rehabilitation, governance, management and operational improvements before investing in new. • Comparison of alternatives and cost effective solutions E. With, Without Project Situation and Analysis of Alternatives 1. Water Supply 317. None of the Project cities meet the requirement for 100% population with access to safe drinking water. In most of the cities, water supply on an average is provided for a few hours a day. Unaccounted for water (UFW) varies between 35 and 40%. In “without Project”, this situation will continue to get worse, exacerbating water shortages and increasing the cost of supply. 318. The first priority of the water supply components is to optimize the existing system, reduce wastage, illegal connections, distribution and other losses, through a series of 100 BUDP Main Report (May 2008) physical, managerial and in the State operational activities. UFW is targeted to be reduced from an average of 40% down to 36% by FY 2014, project completion year and to 20% by FY2021. 319. Alternatives were considered for the water supply systems to ensure the least cost solution. Assessment included technical, social and environmental as well as financial considerations. Alternatives included: • Pipes used in transmission and distribution system; • Different methods of disinfection of water and improving water quality; • Water storage reservoirs. 320. In all cases the most technically appropriate and least cost solution was selected. 2. Rehabilitation of Sewerage System 321. Sanitation is grossly inadequate in all of the Project cities, with resulting unhygienic living conditions and public health problems. Only 50 percent of households reported satisfaction with wastewater management in the city. 322. Only Patna is covered by sewerage system, but only partially without adequate treatment facilities. The coverage in this town is only about 18 percent of the town population. The other towns and the uncovered portions of the aforesaid town depend either on septic tank or other methods of sewage disposal. The septic tank or other systems do not function properly. Estimates of the proportion of households with septic tanks differ across cities from 57% to 90 %. Of those households who have septic tanks, more than half report that they are never cleaned and only 20 % report cleaning them within the recommended frequency of every 2 years. Thus even for households with septic tank facilities, very few can be working properly. 323. In designing the sub project, alternatives were considered such as independent reticulated system vs. combined systems; network choices of pumping vs gravity or combination of two, economical size of pipe & material and alignment. Independent systems and network choices were chosen primarily due to lower cost. Combined reticulated systems are expensive and only make economic sense in highly urbanized densely populated areas and where laying of two separate sewers in narrow roads become hardly feasible. For STP, alternative processes with respect to site availability, performance requirement, O&M cost, capital cost, etc are considered. F. Economic Cost 324. The economic costs of capital works and annual operation and maintenance are calculated from the financial cost estimates, following the guidelines of ADB applicable for economic analysis. The important features of this analysis are: 101 BUDP Main Report (May 2008) • Price contingencies are excluded but physical contingencies are included; • Land cost included; • Opportunity cost of unskilled labor is included; • Recurrent costs (O & M) are included; • The Shadow Exchange Rate Factor (SERF) is assumed to be 1.06; other conversion factors used include 0.70 for unskilled labor. G. Economic Benefits 325. The Economic Analysis has been undertaken for subprojects (FY2010 to 2014). Analysis covered subprojects of water supply rehabilitation and improvement for both Patna and Gaya and sewerage system rehabilitation and improvement in Patna. 1. Project Beneficiaries – Sub-projects 326. Project Beneficiaries is defined as those who receive new or better services. For Water Supply, direct Project beneficiaries, is estimated to be 100% of the projected population for Patna and 80% for Gaya and 29% for Sewerage component for Patna. Majority of these beneficiaries will benefit from more than one of the components. All residents and businesses will also get indirect benefits in terms of enjoying a better urban environment, improved governance and brighter prospects for economic growth and poverty reduction. 2. Valuing Economic Benefits 327. The analysis attempts to value identified economic benefits wherever possible. Given their environmental nature, quantification of all benefits emerging out of improved sewerage component is always difficult since even data on the physical impacts to be achieved by the Project is not available. The valuation exercise relies heavily on contingent valuation – asking residents what they would be prepared to pay for a set of changed circumstances. Willingness to pay, in theory, covers all impacts as the respondent is requested to incorporate all third party effects in their response. However, in reality contingent valuation is lacking, primarily because respondents do not have a good appreciation of the without Project situation, many of the sample households do not respond to all questions in the questionnaire. Wherever possible, the willingness to pay of the residents is included to try to more accurately reflect the economic impact of the without project situation and the economic benefits of the Project. In comparison, for water supply, the severity of the without project situation is little understood and thus the willingness to pay is often lower than would be expected. For details of socio-economic survey conducted during 200708 in the cities of Patna and Gaya please refer Chapter on socio-economic context in this Report as well as CLIP report available in Volume 2. In Patna the sample size was 655 HHs and in Gaya the sample size was 242 HHs. Survey results revealed that 47 to 55% and 25% of HHs were willing to pay for improved water supply and sewerage services in Patna and 60 to 68% of HHs was willing to pay for improved water supply service in Gaya. 102 BUDP Main Report (May 2008) 3. Rehabilitation and Improvement of Water Supply System – Patna and Gaya 328. The water supply projects are valued using the recommended method as shown in the ADB guidelines. One of the difficulties in adopting this approach is its strong basis in volumetric data. Like many other states, in Bihar, even the existing situation is difficult to determine. MCs as service provider have little idea how much water is actually supplied and how much is produced. 329. Water supply analysis covers the period 2009-10 to 2027-2028 for rehabilitation and improvement with project situation. The project beneficiaries comprise of households with existing connections and households with new connections who previously obtained water supply from other sources and stand-posts. The water supply component is expected to benefit the entire population of Patna and about eighty percent population in Gaya. 330. The benefits of water supply component are quantified as follows: (i) Incremental Benefit: This component has a positive effect on the total consumption due to the proposed Project. This component of benefit is evaluated by using the demand price, or willingness to pay (WTP) for additional consumption. Based on WTP survey analysis results, the demand price is assumed to be equal to the supply price to be decided by the provider of this service from time to time, in the present analysis. Main benefit from Water Supply sub-project will generate from incremental water supply to uncovered areas due to reduction in non-technical loss of water or UFW. (ii) Non-incremental Benefit / (Loss). This is evaluated by the differential price paid by the new households, presently drawing water from other sources of water and standposts, availing the water service connection. Other non-increment benefit in the form of resource cost savings are: (iii) Overhead Tank including Pump Cost Saved. This component has a positive effect on the total consumption due to the proposed Project. This component of benefit is evaluated by using the cost of installation of overhead tank, pump cost and operation and maintenance of water tank and pump which will be saved by beneficiaries taking water service connections. (iv) Water Purification Cost Savings. This benefit is quantified by assessing the direct cost of purification of water as well as the related time savings. (v) Times Savings. Time savings resulting from water collection, which is more acute in the dry season and is quantified using the opportunity cost of unskilled urban women laborers. The labor spent for collection has been quantified by applying the opportunity cost of unskilled labor to the time spent for this purpose. Relevant information available in this context from the Socio-Economic survey was used. 103 BUDP Main Report (May 2008) 4. Benefits of Rehabilitation and Improvement of Sewerage Sub-Project 331. The beneficiaries of rehabilitated sewerage system in Patna include households who will be getting new connections through proposed sewer lines. The sub-project is designed to cover 29 percent of the population. Benefits from this sub-project component will accrue from 2014. The Socio-Economic Survey results indicate that around 45% of the households were willing to have new connections and are prepared to pay user charges. 332. The survey results indicate that the potential beneficiaries are prepared to pay for the improved services of Sewerage services. The economic benefits considered are: • Savings in septic tank capital cost; • Savings in septic tank maintenance cost; • Savings in days lost due to sickness; and • Reduction in household expenditure on treatment of water borne diseases; 333. Avoided Economic Cost: The Socio Economic Survey collected information from sample households and the information collected from secondary sources are used to estimate the economic costs that would be avoided with improved infrastructure services for the project beneficiaries and they include: expenditure on disposing of wastewater; expenditure on treating environmental sanitation related diseases. 334. Exclusion For non-availability of adequate data the benefits arising out of reduced pollution, reduction in the incidence of diseases and morbidity, improved environment due to cleaner city and the like are not included in this analysis as these could not be quantified and valued. 335. Part B components which include slum infrastructure, and Part C components capacity building, institutional strengthening and implementation assistance, are excluded as the benefits emerging from them are difficult to quantify. Urban poor residing in slum will benefit from the slum infrastructure development in pilot slums in Patna and Gaya proposed under Part B of Project. Benefit will also accrue from proposed study of slums in Patna and Gaya, preparation of State Slum Policy, which will help the GoB to properly plan and execute slum development programs effectively. Consulting services support, pro vided under Part C for the project implementation, benefit monitoring, NGO support, groundwater study, institutional development as well as incremental administration will not only benefit GoB in successful implementation of BUDP but also build the capacity of MCs, PMU, PIUs and other state government personnel as may be designated by GoB. H. EIRR Analysis 336. The EIRR analysis is undertaken over the period to the design year 2028. The analysis uses the domestic price numeraire since Project benefits are non-tradable in nature. The economic opportunity cost of capital (EOCC) is assumed to be 12% for water supply and 104 BUDP Main Report (May 2008) sewerage sub-project component. Costs and valued benefits are included in the year they are incurred. Replacement costs are included for equipment wherever applicable. 337. Table 41 summarizes the results of the main economic evaluation and the sensitivity analysis. Each sub-project component was compared to the without project situation, using discounted cash flow technique and economic opportunity costs of capital of 12% for water supply and environmental sanitation improvement. Net present value and the EIRR under the evaluation period allowed for 15 years from the first full year of benefit of each sub-project. The analysis was conducted at domestic prices and the discount year was taken as 2007-08. The values in the Tables are expressed in 2007-08 prices. Table 41: EIRR and Sensitivity Analysis (percent) Gaya Water Patna Patna Water Supply: Supply : Rehabilitation Items Rehabilitation and Rehabilitation and Improvement and Improvement of Improvement Sewerage System EIRR 16.0 18.0 13.1 SENSITIVITY ANALYSIS Capital cost overrun by 20% 13.1 15.1 10.4 O&M cost overrun by 20% 15.8 17.7 12.6 Benefits Reduced by 20% 12.2 14.1 9.2 One Year Delay 15.6 17.7 12.7 Worst Scenario all three 9.5 11.1 6.1 Source: Analysis 338. The main evaluation results summarized in Table 41 indicate that all sub-projects are economically viable, with the calculated EIRR values exceeding the economic opportunity cost of capital in all cases. The sensitivity analysis has also demonstrated the robustness of these results, with all sub-project components economically viable even when the combination of changed assumptions was tested. Detailed economic analysis calculations for the sub-projects are presented in Appendix 16. 105 BUDP Main Report (May 2008) XIV. ENVIRONMENTAL ASSESSMENT A. Introduction 339. Bihar Urban Development Project (BUDP) comprises the following five sub-projects, each providing improvements in a particular sector (water supply, sewerage, slum improvement etc) in a project town. BUDP will be implemented in two towns, Patna – the State Capital and the largest urban centre in the State, and Gaya – second largest urban centre and a famous religious town. (i) Rehabilitation and improvement of water supply in Patna; (ii) Rehabilitation and improvement of sewerage in Patna; (iii) Improvement of slum infrastructure in Patna; (iv) Rehabilitation and improvement of water supply in Gaya; and (v) Improvement of slum infrastructure in Gaya B. Environmental Regulatory Framework 340. It is mandatory that the subprojects considered for implementation under BUDP comply with the government and as well as ADB policies. The GoI EIA Notification of 2006 (replacing the EIA Notification of 1994), sets out the requirement for Environmental Assessment in India. This states that Environmental Clearance (EC) is required for specified activities/projects, and this must be obtained before any construction work or land preparation (except land acquisition) may commence. The five subprojects and their components proposed under the BUDP, as listed above, do not fall under the ambit of the EIA Notification, and therefore EC is thus not required. 341. The ADB has classified this Project as Category B and following normal ADB procedures one Initial Environmental Examination (IEE) is required for each subproject. Accordingly, impacts of the five proposed subprojects were assessed by five IEE reports (IEE Reports are attached in Volume 3). A summary of the same is provided here. C. Project Description 342. Table 42 shows the nature and size of the various components of the subprojects proposed in Patna and Gaya. Implementation of BUDP will start in the later part of 2009 and will be completed by the end of 1st quarter of 2014. Detailed implementation schedule of all the BUDP subprojects and components is presented in Appendix 9. 106 BUDP Main Report (May 2008) Table 42: Proposed Subprojects and Components Component Patna Gaya Water Supply Repair or replace distribution system 124 km mains; 200-500 mm DI 38.6 km; 200-400 mm CI/DI 280 km lines; 100-150 mm PVC 27 km;100-150 mm PVC New overhead service reservoirs 22 nos. 3 nos. New pumping mains 25 km; 300-350 mm DI 10 km; 300-350 mm DI Leak detection and rectification √ √ Efficiency and energy audit; pumps √ √ repairs & replacement; Disinfection (chlorination) facilities √ √ Bulk meters (300 mm flow meters) 119 nos. 10 nos. Consumer connections & meters 160,000 nos. 26,000 nos. Water quality testing laboratory √ √ Source augmentation study √ √ Tube wells 26 nos.; 200 m deep - Pumping stations with equipment 26 nos. - Overhead service reservoirs 26 nos.; 25 m diameter - New distribution network: Mains 129 km; 200-500 mm DI - Distribution lines 87 km; 100-150 mm PVC Decommissioning of tube wells 31 tube-wells - Sewerage Rehabilitation of transmission system 20 km; 300-1200 mm RCC - sewage pumping stations 7 nos. - Repairs to pump house, office building, Pahari STP and Saidpur STP - electro-mechanical equipment Upgrade Beur STP: upgrade 15 MLD from primary to secondary - New unit: 10 MLD (ASP based) New sewer network in southwest zone: - main sewers 17km; 700–1200 mm RCC secondary sewers 24 km; 350–600 mm RCC lateral sewers 80 km; 250–300 mm RCC intermediate pumping stations 2 nos. sewage connections 19,570 Slum infrastructure Provision of water supply, on-site Mandiri and Lohanipur slums Kapil Dhara, Manpur, sanitation, storm water drains, roads, and Telbigha DomToli, Baksu street lights Bigha and Geval Bigha slums DI – Ductile Iron; MLD – million liters per day; PVC – Poly Vinyl Chloride; RCC – Reinforced Cement Concrete; STP – Sewage Treatment Plant 107 BUDP Main Report (May 2008) D. Description of Environment Table 43: Baseline Environmental Profile of Patna and Gaya Component Patna Gaya Physical Environment Location Located in the central part of the State at Situated 100 km south of Patna, between 25037’ north latitude and 850 10’ east 84.4o and 85.5o east longitude and 24.5o longitude; situated on the right bank of and 25.10o north latitude. Gaya is a River Ganga, one of the largest rivers of prominent and most important religious India. Well connected by road and railways centre for Hindus. Well connected by to various parts of the State and the road and railways with Patna and other Country; two National Highways (NH 30 towns. Bodh Gaya, 13 km from Gaya, is a & 31), and a main railway line (connecting world famous Buddhist Centre. Kolkata and Delhi). Topography, Developed in an elongated portion along Developed along the banks of River soils and the natural levee of River Ganga. River Phalgu, a tributary of River Punpun, and is geology Punpun flows in the south and meets Ganga located between the uplands of 35 km east of Patna. South of natural Levee Chhotanagpur Plateau and Gangetic plains is marked by monotonously flat terrain, of south. Except few isolated hilly areas, part of which is flood prone. Except for the topography is flat, and gently slopes into narrow zone between natural levee and the Phalgu. Gaya is covered with riverine Ganga River, the topographic slope is alluvium of both old and recent, and towards south. Natural topography consists of a thick alluvial mantle of drift disturbed with the construction of roads origin. Soils in the region are deep and and railways at higher elevation. Flooding/ excessively drained that are formed in water logging is common. Patna occupies a eolian sands over lacustrine deposits part of middle Ganga plains and underlain derived from mixed rocks. Five main types by thick pile of fluvial sediments from the of soils present in the region: sandy loam, Himalayas as well as Chotanagpur Plateau, loamy soil, sandy loam, black soil and red and is made up of clay, silts and sands. Soil soil. is mainly young loam rejuvenated every year by constant deposition. Earthquake Zone IV (high earthquake risk); Bihar has Zone III (moderate earthquake risk) and floods not experienced any major earthquake in the recent past; Falls in the flood risk zone. Climate Generally tropical; three seasons - monsoon Generally tropical; three seasons - from June to September; winter from monsoon from June to September; winter October to February, and summer from from October to February, and summer March to May. The minimum and from March to May. The minimum and maximum temperatures vary from 30°C to maximum temperatures vary from 20°C to 43°C during the summers, and 5°C to 43°C during the summers, and 6°C to 21.4°C during the winters. Annual average 21°C during the winters. Annual average rainfall is 1100 mm. In winter and early rainfall is 1150 mm. Westerly winds from summer seasons, winds are light and are January to March; east and west winds from west or southwest. In May winds are prevail most part of the year. predominantly easterly, north-easterly in monsoon; October - light and variable. 108 BUDP Main Report (May 2008) Component Patna Gaya Air Quality Data shows that particulate matter is high, No data available; due to dry weather, may be because of bad road conditions, dry poor road conditions and traffic and windy weather, and vehicular particulate matter is likely to be high, pollution, and the SPM frequently exceed particularly during summers. NAAQ standards Noise Data shows that day time noise levels are Data shows that day time noise levels are high at all locations, exceeding standards high at all locations, exceeding standards Surface water Ganga on the north, Punpun in the south Gaya is situated along the banks of River and east, and Patna-Son canal on west. Phalgu. This river is a tributary of River Punpun and Son are tributaries of Ganga Punpun. Phalgu is a seasonal river, and River. Ganga is the most sacred river to the flows only during monsoon. River forms Hindus, and is one of the largest rivers in an important part of rituals performed by India. Due to violent flow the river is pilgrims, The famous Vishnupad Temple known to changing its course, and flooding is located on the banks of the River and the main land. Due to lack of sewerage there are a number ghats (for bathing and system, wastewater enters the drains and worshipping) developed for the pilgrims. ultimately reaches the river. River water Due to lack of sewerage system in the quality data shows the presence of feacal town, wastewater is discharged into the coliform. river, leading to pollution. Groundwater Aquifer is made up of medium to coarse The extensive and deep aquifer of south grained sand, gravel and pebble bed. Patna Bihar Plains starts from Nepal Border, is underlain by a 20-50 m thick clay where depth is said to be about 2,000 m, blanket, which is again underline by a thick and gradually decreases southwards to zone of sand occasionally mixed with around 650 m in Patna and becomes gravel between 60 and 130 m below ground shallower in further south to about 60 m in level. Sand zone extends to a depth of 312 Gaya. Underground aquifer is presently m and it is believed to be persistent down tapped along the River Phalgu for Gaya to a depth of more than 650 m. The most water supply. Town is surrounded by hills productive water bearing zone is coarse on three sides and ground water near hills sand mixed with gravel. The deeper aquifer is not available as depth of sand strata is is under confined condition, and has quite less. Aquifer, particularly away from abundant resource. Available groundwater hills and along the river has moderate quality data shows the presence of yield. No groundwater quality data is bacteriological contamination of shallow available, however, due to disposal aquifer although restricted to few localities. untreated wastewater it is learnt that groundwater quality is not up to drinking water standards. Ecological resources Ecological There are no significant ecological There are no significant ecological resources resources in and around the city (protected resources in and around the town areas or rare or important species or (protected areas or rare or important habitats). There is no natural habitat in the species or habitats). There is no natural town, and the flora is limited to artificially habitat in the town, and the flora is limited planted trees and shrubs, and the fauna to artificially planted trees and shrubs, and comprises domesticated animals, plus other the fauna comprises domesticated animals, species able to live close to man. plus other species able to live close to man. 109 BUDP Main Report (May 2008) Component Patna Gaya Economic Development Industry and State capital; administrative, institutional Gaya region is also rich in agricultural agriculture and trade centre. There is no major produce, crops like rice, wheat, maize, industrial development in the State in jowar and other pulses are cultivated here. general. State is predominantly an There are few agro-based industries in the agriculture based economy with fertile City. Tourism is a most important lands. Land use data shows that significant economic activity in Gaya. land mass in the Patna urban area is under agricultural use. There are few small and medium scale industries in the city– mainly agricultural based, engineering, steel reenrolling mills. There are a number of brick kilns, lined along River Ganga. Infrastructure Piped water supply in the city covers about Piped water supply in Gaya covers about 60 %, and the remaining people mainly 60 %, and the remaining people mainly depend on potentially unsafe shallow depend on hand pumps provided by the groundwater through wells. Underground GMC. Per capita supply is low, and losses sewerage system is limited only to about in the system are very high. Groundwater 18%, while most of the city is covered with is the main source. There is no sewerage open drains, which carry combined storm system in Gaya. Open drains carry both and wastewater. Drainage interception and wastewater and rainwater. Nearly 80% of treatment facilities were developed in Patna people depend on individual disposal under a GOI scheme, and about 50% systems like septic tanks. Storm water wastewater is treated. Storm water drains drainage system consists of open and as are available in about 64% roads. Of the well as closed drains, which cover about 800 tons/day of municipal solid waste 80% of area. Of the 250 tons/day of generated, PMC collects 55%. There are no municipal solid waste generated, abut 60% scientific disposal facilities, and the waste is collected. There are no scientific disposed along the roads, and in low-lying disposal facilities, and the waste disposed areas. along the roads, and in low-lying areas. Transport and Well connected by road and railways to Well connected with Patna and other power supply various parts of the State and the Country; towns; A bypass runs on the southern side there are two National Highways (NH 30 & of the town, connecting NH-82 and NH- 31), and a main railway line (connecting 83. There are three State Highways Kolkata and Delhi). Thermal power is the passing through Gaya. Delhi-Kolkata main source of energy in Bihar. Power railway line, that traverse the town provide supply in the state is inadequate, and a good connectivity. supply is erratic. Socio Cultural Characteristics Socio- Patna City population-1.37 million (2001); Patna City population-0.39 million (2001); economic density-13,735 persons/sq. km.; sex ratio- density-10,963 persons/sq. km.; sex ratio- 831; overall literacy rate is reported at 885; Overall literacy rate is reported at 81.2% with 86.8 % for males and 74.3 % 77.2% with 84.7 % for males and 69.1 % for females. Overall work participation rate for females. Overall work participation is 25.4 %, (41.8% for males and 5.9% for rate is 25.4 %, (41.8% for males and 5.9% females. Main languages spoken are Hindi, for females). Main languages spoken are Magahi (dialect), Bhojpuri and Urdu. Hindi, Magahi (dialect), Bhojpuri and Urdu. 110 BUDP Main Report (May 2008) Component Patna Gaya History, Patna, was established in the 6th Century Gaya is a historic and a most important culture, and BC by Ajatashatru of Magadha Kingdom, religious centre for Hindus. World famous tourism and had been capital for successive Buddhist centre of Bodh Gaya is located kingdoms since ancient times. Patna 13 km of Gaya. History of Gaya has a presents a character of historic City, with a unique place in the evolution and number of ancient monuments and sites of development of Hindu civilization. historic, cultural and religious importance. According to the religion of Puranaas, it is incumbent on every Hindu to visit Gaya and make offerings for the souls of his ancestors. There are a number of temples in the town; a large number of pilgrims visit the town. E. Environmental Impact and Mitigation Measures 343. Construction of infrastructure is not expected to have major adverse impacts because: (i) Most network (water supply and sewer lines) improvements will be located on unused land alongside existing roads and can be constructed without causing major disruption; (ii) New infrastructure (Tube Wells, OHSRs, pumping stations, sewage treatment plant, etc) will be located on government-owned land that is not occupied or used for any other purpose; (iv) Slum infrastructure will be located alongside roads and streets, within the available right of way; (iii) Most network construction will be conducted by small teams working on short lengths at a time so most impacts will be localized and short in duration; (iv) The overall construction program will be relatively short for a project of this nature. Normally work at any stretch – including trenching, pipe laying and refilling, will take less than a week. 344. However, because the schemes are relatively large, will be built in urban areas and will affect many parts of the towns, it is inevitable that construction will cause some negative impacts. These are shown in Table 44 with mitigation required to reduce each impact to acceptable levels, and the responsibility, location and program for mitigation. 345. Similarly, operation and maintenance impacts are also limited due to the fact that infrastructure requires routine maintenance, and can be operated without major maintenance. This is also because: (i) Most schemes have been designed to use simple technologies with low maintenance and little replacement of parts to enhance their long-term sustainability; (ii) Providing the responsible agency ensures that infrastructure is inspected and 111 BUDP Main Report (May 2008) monitored regularly and maintained as required, repairs should be small-scale and short in duration. 346. Potential operation and maintenance impacts are shown in Table 45 with mitigation required to reduce each impact to acceptable levels, and the responsibility, location and program for mitigation. F. Environmental Monitoring Plan 347. Most mitigation activities are the responsibility of the Construction Contractors (CC) employed to build the infrastructure during the construction stage. There are also some actions that need to be taken by Project Management Unit /Project Implementation Unit (PMU/PIU) in their role as project proponent, and some actions related to the design that will be implemented by the Design and Supervision Consultants. A program of monitoring will be conducted to ensure that all parties take the specified action to provide the required mitigation, to assess whether the action has adequately protected the environment, and to determine whether any additional measures may be necessary. This will be conducted by a qualified Environmental Management and Monitoring Specialist (EMMS) from the DSC. Environmental Management Specialist (EMS) of PMC will oversee the implementation of mitigation measures and will also monitor the mitigation measures implemented by the DSC and PMC (Project Management Consultant). This compliance monitoring, will again be overseen by Environmental Specialist of the ESMC. Post-construction monitoring will be conducted by the operating agency. 348. As the most of the mitigation measures are fairly standard methods of minimizing disturbance from building in urban areas, and monitoring of such measures normally involves making observations in the course of site visits, although some require more formal checking of records and other aspects. There will also be some surveys of residents, as most of the measures are aimed at preventing impacts. Table 46 shows the proposed Environmental Monitoring Plan for this subproject, which specifies the various monitoring activities to be conducted during all phases. The operating agency will conduct monitoring during the operational period to confirm the long-term benefits of the scheme, including long terms surveys. Table 46 shows that this will cover monitoring of the chemical and bacteriological quality of water supplied, treated sewage and sludge. 112 BUDP Main Report (May 2008) Table 44: Environmental Impacts and Mitigation Measures for Infrastructure Construction Potential Negative Impacts Sig Dur Mitigation measures Responsibility Location D C O All construction works Excavation will produce large L P • Utilize soil for filling up low lying areas and in construction CC All sites + quantity of waste soil Dust generation due to excavation • Remove waste soil as soon as it is excavated L T • Damp down soil to reduce dust due to winds CC All sites 0 • Use tarpaulins to cover waste soil in transport Traffic, people and activities • Plan routes to avoid narrow streets, congested roads, religious could be disturbed by trucks and tourism places, etc, carrying construction material L T • Plan work to avoid peak traffic hours PIU & CC All sites 0 &waste • Avoid work during or plan to complete before important fairs and festivals Road side trees may be removed • Avoid tree cutting with best layout design along pipeline routes L P • Only remove trees if it can not be avoided CC All sites 0 • Plant and maintain two trees for every one removed Risk that ground disturbance in • Consult ASI and State Archeological Department to conduct town could damage archeological M P work near the monuments; include them as project stakeholders DSC All sites 0 and historical remains to benefit from their expertise • No work shall be conducted in regulated zone (300 m around) of DSC All sites 0 protected monuments without prior permission of ASI • Apply protocol to protect chance finds (excavation in potential area observed by an archeologist, stop work if finds suspected; CC All sites 0 state authority to plan appropriate action People may be inconvenienced M T • Plan work carefully to keep shut down to minimum DSC All sites 0 and their health may be at risk if • Provide alternative water supply to the affected water supply system is shut down PMC/PIU All sites 0 for long periods • Inform communities of any shut down in advance Workers and public at risk from Ensure that health and safety measures are in place as part of the accidents on site contract. These shall include: o Follow standard and safe procedures for all activities, like provision of shoring in trenches o Exclude the public from all construction sites; provide caution & CC All sites 0 sign boards o Ensure that workers use Personal Protective Equipment o On/off-site Health & Safety Training to workers; o Maintain accident reports and records. 113 BUDP Main Report (May 2008) Potential Negative Impacts Sig Dur Mitigation measures Responsibility Location D C O Economic benefits for people M T • Ensure that most of the workforce is from local communities employed in workforce CC All sites + Additional measures for network construction (water supply and sewer lines) Shops and other business may • Leave spaces for access between mounds of soil loose income if costumer’s access • Provide walkways and metal sheets to maintain access across is impeded trenches for people and vehicles where required M T CC Network sites 0 • Increase workforce in these areas to finish work quickly • Consult local people: inform them of work in advance Excavation could damage existing • Confirm location of infrastructure and avoid these sites DSC 0 infrastructure M P • If unavoidable, coordinate with respective agencies in shifting PIU & CC 0 those infrastructure Network sites Disturbance by repeated L T • Integrate subprojects to conduct excavation at same time DSC 0 excavation Traffic my be disturbed by soil, • Conduct work during off-peak hours when traffic is light; vehicles and machinery on road explore night working schedule • Plan work such that all work at a stretch is completed in a work shift; M T • Do not close the road completely, ensure that work is conducted CC Network sites 0 onto edge of the road; allow traffic to move on one line • Ensure alternative routes; provide caution boards and sign boards showing work & alternate route • Increase the workforce to finish work quickly Site of social/cultural importance L T • avoid work at sensitive times, such as religious and cultural (schools, hospitals, religious and festivals like Chhat, Pitra Paksha mela tourism places) may be distributed • As above: remove waste quickly, cover/spray stockpiles, cover by noise, dust, and impeded soil/sand on trucks access • As above: increase workforce to finish work quickly CC Network sites 0 • As above: use wooded planks and metal sheets to allow access (people/vehicles) • Use modern vehicles/machinery & maintain as specified Impacts on drainage due to • Avoid construction in water logged conditions Network sites construction in water logged area M T • If unavoidable: CC in water logged 0 areas 114 BUDP Main Report (May 2008) Potential Negative Impacts Sig Dur Mitigation measures Responsibility Location D C O o create proper bunds to confine the work are for dewatering o Ensure no water is collected in trenches o Ensure speedy completion of work with additional workforce and employing appropriate equipment o Ensure that work area cleaned prior to bund removal Additional measures for tube well construction in water supply Dust and noise due to Tube Well • Spray water on site before drilling construction • Use equipment confirming to CPCB standards • Drilling work should not be conducted in nights if residential Tube Well M T areas are located 100 m of site CC 0 sites • Consult local people – inform about work & schedule in advance • Ensure skilled supervision; provide personal protection equipment Generation of water-soil mix • Create temporary ponds at site, and store slurry to allow soil to Tube Well (slurry) from Tube Wells L T settle; Dispose only clarified water CC 0 sites • Utilize soil in construction or filling up low areas Additional measures for sewer rehabilitation works Handling and disposal of • Use appropriate equipment, and employ trained workers contaminated sludge generated • No manual cleaning or handling of sludge Sewer cleaning from sewer cleaning L T CC 0 • Provide personal protection equipment to the workers sites • Transport and dispose sludge safely at existing STPs Sig - Significance of impact (L-low; M-medium; High; NS – not significant); Dur – Duration (T-temporary; P-permanent) CC – Construction Contractor; DSC – Design and Supervision Consultants; PIU – Project Implementation Unit; PMC – Project Management Consultant D – design phase; construction phase; O – operation phase; 0 – impact mitigated to acceptable level; + positive benefit ASI – Archeological Survey of India; CPCB – Central Pollution Control Board Continuous activity - ; intermittent 115 BUDP Main Report (May 2008) Table 45: Environmental Impacts and Mitigation Measures for Infrastructure Operation Potential Negative Impacts Sig Dur Mitigation measures Responsibility Location D C O O&M of water and sewer network Disturbance to people, traffic and NS T • Consult people – inform about work nature and schedule activities due to repair & • Provide walkways and metal sheets to maintain access Network repair replacement across trenches for people and vehicles where required Operating Agency 0 sites • Consult traffic police; avoid work during peak traffic hours; provide diversions and alternative routes Site of social/cultural importance NS T • Remove waste quickly, cover/spray stockpiles, cover (schools, hospitals, religious and soil/sand on trucks Network repair tourism places) may be • Increase workforce to finish work quickly distributed by noise, dust, and Operating Agency sites at sensitive 0 • Use wooded planks and metal sheets to allow access impeded access areas (people/vehicles) • Use modern vehicles/machinery & maintain as specified O&M water supply Health and safety risk due to L P • Restricted public entry; display of warning boards handling of chlorine • Provide appropriate Personal Protective Equipment; Disinfection Operating Agency 0 • Health and Safety Training for personnel; facilities • Maintain accidents reports and records Risk of source contamination M P • Evaluate options to prevent discharge of untreated due to lack of sewerage system wastewater, especially dry weather flow, on the upstream side of Panchayati Akhara well field in Gaya. DSC • Consider the option of intercepting the main drain discharging into the river near railway bridge, and transmit, 0 treat and dispose on the downstream side of well field. Well fields • Daily monitoring of water quality at Panchayati Akhara well field Operating Agency • Develop sewerage system in the town Additional measures for O&M of sewerage system Pollution and health risk due to M P • Design and select treatment process that will meet inland disposal of untreated or partially water disposal standards of CPCB, which include: treated wastewater, and sludge o BOD < 30 mg/l disposal o pH – 5.5 – 9.0 DSC 0 o Suspended solids < 100 mg/l STP • Obtain Consent for Establishment (CFE) from BSPCB prior to STP construction • Obtain Consent for Operation (CFO) from BSPCB before Operating Agency STP + 116 BUDP Main Report (May 2008) Potential Negative Impacts Sig Dur Mitigation measures Responsibility Location D C O start of STP operation • Minimize disposal into natural streams, by utilizing treated effluent for irrigation purpose • Use digested and dried sludge for agriculture • Conduct regular monitoring to ensure quality of treated effluent and sludge Odor nuisance M T • Design a physical buffer zone with suitable plant species STP and sewage DSC + around STP and pumping stations pumping station • Plant and maintain trees as specified in design CC + • Maintain trees as buffer zone around the facilities Operating Agency + O & M of slum infrastructure Pollution risk due to use of on- M P • Select appropriate on-site disposal method considering site disposal facilities high post monsoon water table On-site DSC 0 • Should not located treatment/disposal facilities in the areas sanitation facility prone for water logging/flooding • Ensure regular maintenance On-site • Connect the sewers to underground sewerage system when Operating Agency 0 it is ready; thereafter, discontinue on-site disposal practice sanitation facility immediately Sig - Significance of impact (L-low; M-medium; High; NS – not significant); Dur – Duration (T-temporary; P-permanent) CC – Construction Contractor; DSC – Design and Supervision Consultants; PIU – Project Implementation Unit; PMC – Project Management Consultant D – design phase; C – construction phase; O – operation phase; 0 – impact mitigated to acceptable level; + positive benefit BOD – biochemical oxygen demand; BSPCB – Bihar State Pollution Control Board; STP – Sewage Treatment Plant Continuous activity - ; intermittent 117 BUDP Main Report (May 2008) Table 46: Environmental Monitoring Plan Mitigation measures Location Responsible Monitoring method Monitoring Responsible for for mitigation frequency monitoring Construction: All works • Remove waste soil as soon as it is excavated • Damp down soil to reduce dust due to winds • Use tarpaulins to cover waste soil in transport • Plant and maintain two trees for every one removed Site observations; CC records; informal • Ensure that most of the workforce is from local communities discussion with • Ensure that health and safety measures are in place in contract. These include: All sites CC workers and people Biweekly EMMS o Follow standard and safe procedures for all activities, like provision of shoring in residing near the work trenches sites and business o Exclude the public from all construction sites; provide caution & sign boards people o Ensure that workers use Personal Protective Equipment o On/off-site Health & Safety Training to workers; o Maintain accident reports and records • Consult ASI and State Archeological Department to conduct work near the All sites DSC Review design records As required EMMS monuments; include them as project stakeholders to benefit from their expertise and construction • No work shall be conducted in regulated zone (300 m around) of protected monuments schedule; without prior permission of ASI • Provide alternative water supply to the affected NA PIU site observations; As required ES • Inform communities of any shut down in advance informal consultations Construction: Additional measures for network construction (pipeline and sewer works) • Plan routes to avoid narrow streets, congested roads, religious and tourism places, etc, CC and DSC in Design records and As required EMS • Plan work to avoid peak traffic hours coordination construction schedule; with Traffic site observations • Avoid work during or plan to complete before important fairs and festivals Network Police • In case of disturbance to other infrastructure for construction, coordinate with sites respective agencies in shifting those infrastructure with inconvenience to public • Cover or spray water on excavated soil mounds • Ensure speedy completion of work and remove the surplus soil as soon as possible • Cover soil with tarpaulins when carried on trucks Site observations; CC • Provide walkways and metal sheets to maintain access across trenches for people and Network records; informal vehicles where required CC Biweekly EMMS Sites discussion with people • Consult local people: inform them of work in advance near the work sites • Conduct work during off-peak hours when traffic is light; explore night working schedule • Plan work such that all work at a stretch is completed in a work shift; 118 BUDP Main Report (May 2008) Mitigation measures Location Responsible Monitoring method Monitoring Responsible for for mitigation frequency monitoring • Do not close the road completely, ensure that work is conducted onto edge of the road; allow traffic to move on one line • Ensure alternative routes; provide caution boards and sign boards showing work & alternate route • Apply protocol to protect chance finds (excavation in potential area observed by an archeologist, stop work if finds suspected; state authority to plan appropriate action • avoid work at sensitive times, such as religious and cultural festivals • Use modern vehicles/machinery & maintain as specified • Apply protocol to protect chance finds (excavation in potential area observed by an archeologist, stop work if finds suspected; state authority to plan appropriate action • avoid work at sensitive times, such as religious and cultural festivals • Create proper bunds to confine the work are for dewatering Water Site observations; CC • Ensure no water is collected in trenches logged records; informal CC Weekly EMMS • Ensure speedy completion of work with additional workforce and employing network discussion with people appropriate equipment sites near the work sites • Ensure that work area cleaned prior to bund removal • Confirm location of infrastructure and avoid sites conflicting with other infrastructure Review design records, As required EMMS Network • Integrate subprojects to conduct excavation at same time CC construction schedule, sites site surveys • Plan work carefully to keep shut down to minimum Construction: Additional measures for sewer rehabilitation works • Use appropriate equipment, and employ trained workers to clean sewers Sewer main CC Site observations; CC Weekly • No manual cleaning or handling of sludge rehabilitati records; informal EMMS • Provide personal protection equipment to the workers on consultation with • Transport and dispose sludge safely at existing STPs workers • Design a physical buffer zone with suitable plant species around STP and sewage STP and DSC Design review As requires EMS pumping stations (SPS) SPS Construction: Additional measures for Tube Well construction • Spray water on site before drilling Tube Well CC Site observations; CC Weekly EMMS • Use modern & efficient equipment confirming to CPCB emission and noise standards sites records; informal consultation with • Drilling work should not be conducted during nights if residential areas are located 100 workers and people m of site residing near the work • Consult local people – inform about work & schedule in advance sites • Ensure skilled supervision; provide personal protection equipment • Create temporary ponds at site, and store slurry to allow soil to settle • Dispose only clarified water in drains • Utilize soil in construction or filling up low areas 119 BUDP Main Report (May 2008) Mitigation measures Location Responsible Monitoring method Monitoring Responsible for for mitigation frequency monitoring Construction: Additional measures for slum improvement works • Select appropriate on-site disposal method considering high post monsoon water table On-site DSC Review design records; As required EMS • Should not located treatment/disposal facilities in the areas prone for water disposal site reconnaissance logging/flooding facilities surveys during site selection and design Operation & maintenance – All network maintenance activities • Consult people – inform about work nature and schedule Network Operating Site observations Monthly - • Provide walkways and metal sheets to maintain access across trenches for people and repair sites Agency vehicles where required • Consult traffic police; avoid work during peak traffic hours; provide diversions and alternative routes • avoid work at sensitive times, such as religious and cultural festivals • Remove waste quickly, cover/spray stockpiles, cover soil/sand on trucks • Increase workforce to finish work quickly Operation & maintenance – water supply • Evaluate options to prevent discharge of untreated wastewater, especially dry weather DSC PMC/PMU Design records; site As required EMS/ES flow, on the upstream side of Panchayati Akhara well field in Gaya observations • Consider the option of intercepting the main drain discharging into the river near railway bridge, and transmit, treat and dispose on the downstream side of well field. Operation & maintenance – Sewerage system • Design and select treatment process that will meet inland water disposal standards of CPCB, which include: BOD < 30 mg/l o STP DSC Design records As required EMMS o pH – 5.5 – 9.0 o Suspended solids < 100 mg/l • Obtain Consent for Establishment (CFE) from BSPCB prior to STP construction Obtain Consent for Operation (CFO) from BSPCB before start of STP operation Operating • STP Records As required BSPCB Agency • Maintain trees as buffer zone around STP and sewage pumping stations Operating • Minimize disposal into natural streams, by utilizing treated effluent for irrigation STP Site visits and records Monthly - Agency • Use digested and dried sludge for agriculture Long term surveys Water quality monitoring Source, - Laboratory water Daily – Operating Agency distribution testing: parameters - randomly at , and pH, turbidity, various consumer conductivity, TDS, locations end DO, total and faecal coliforms 120 BUDP Main Report (May 2008) Mitigation measures Location Responsible Monitoring method Monitoring Responsible for for mitigation frequency monitoring Source, Laboratory water Yearly once Operating Agency distribution testing: parameters - at various by an accredited lab , and pH, turbidity, locations consumer chlorinity, alkalinity, randomly for end conductivity, TDS, five years DO, total and faecal coliforms, and selected metals Monitoring effluent quality (raw and treated effluent) Inlet and Operating Parameters s specified Daily outlet of Agency by BSPCB Operating Agency STP Inlet and Operating Laboratory tests as Monthly Accredited lab/ outlet of Agency required BSPCB STP ASI – Archeological Survey of India; BSPCB – Bihar State Pollution Control Board; CC – Construction Contractor; DO – Dissolved Oxygen; DSC – Design and Supervision Consultants; PIU – Project Implementation Unit; OHSR – Overhead Service Reservoir; STP – Sewage Treatment Plant; TDS – Total Dissolved Solids; TW – Tube Well; NA- not applicable; EMMS – Environmental Management and Monitoring Specialist of DSC; EMS – Environmental Management Specialist of PMC; ES – Environmental Specialist of Environmental and Social Management Cell in PMU. ; 121 BUDP Main Report (May 2008) G. Public Consultation and Disclosure 349. Primary stakeholders include: residents, shopkeepers and business people who live and work near the construction sites; state and local authorities responsible for the conservation of historical and archaeological sites and remains; the Urban Local Bodies (ULB); and Bihar State Pollution Control Board. Secondary stakeholders are: UDD; other relevant government institutions; NGOs and CBOs working in affected communities; other community representatives (prominent citizens, religious leaders, elders); the beneficiary community in general; and the ADB. 350. Stakeholders were involved in developing the IEEs through face-to-face discussions on site and large public meetings held in each town in March 2008. Views expressed were incorporated into the IEEs and the planning and development of the project. All IEEs and other relevant documents will be made available at public locations in the towns and will be disclosed to a wider audience via the ADB website. The consultation process will be continued and expanded during BUDP implementation, when PMU will appoint experts or an NGO to handle this key element to ensure that stakeholders participate fully in subproject execution. H. Findings and Recommendations 351. Environmental criteria were applied in selecting subprojects (see EAF document), and changes were also made to outline designs to further avoid or reduce impacts. Actions include: • Locating water pipelines and sewer network within the ROW of existing roads, to avoid the need to acquire land or relocate people; • Locating STP, pumping stations, OHSRs and Tube Wells on government lands; and, • Decommissioning of existing surplus tube wells to ensure that the groundwater abstraction remains at the existing levels. 352. BUDP will however involve significant construction in urban areas. It is therefore not possible to avoid all negative impacts. These were examined by 5 IEEs, which identified negative impacts of construction, operation, location and design of subprojects. Impacts are summarized in Section E. The majority of the impacts relates to the construction period and is produced because most subprojects involve excavation. The most significant impacts are therefore on the physical environment, the human environment and the cultural heritage. These will be mitigated by a range of measures, including: • Conducting work during light traffic; exploring night working options; • Planning work such that trench excavation, pipe repair or replacement, and refilling including compacting, at a stretch is completed in a work shift; • Do not close the road completely, ensure that work is conducted onto edge of the road; allow traffic to move on one line 122 BUDP Main Report (May 2008) • Careful planning of transportation routes with Traffic Police to avoid sensitive areas; • Assessing the archaeological potential of all proposed construction sites, and selecting alternative locations to avoid any areas of medium or high risk; • Including archaeological, cultural and historical authorities as project stakeholders to benefit from their expertise; • Any construction in the regulated zone around monuments only with the prior permission of Archeological Survey of India. • Developing a protocol for use in conducting all excavation to ensure that any chance finds are recognized, protected and conserved. 353. There were limited opportunities to provide environmental enhancements, but certain measures were included. For example it is proposed that the project will employ in the workforce people who live in the town to provide them with a short-term economic gain. 354. Once the water supply and sewerage system is operating, most facilities will operate with routine maintenance, which should not affect the environment. There however is a likely pollution risk if untreated and partially treated effluent is discharged. Following measures are suggested to incorporate into the design: • Design and operate STP to treat the sewage to the inland water disposal standards of Central Pollution Control Board; • Obtain consent for establishment and operation from BSPCB; • Regular monitoring of effluent quality during operation to check the STP performance; • Minimize discharge into natural stream by utilizing for irrigation 355. Under the slum infrastructure subproject, to ensure that the on-site sanitation facilities work properly to minimize the impact, appropriate measures are provided. These include: • Selection of an appropriate on-site disposal method considering water table conditions; • Ensuring that facilities are not located in the areas prone for water logging/flooding; • Regular maintenance to ensure system works properly; • Discontinuing this system as and when the sewerage system in the city is developed through other sources of funding 356. The main beneficiaries of the improved systems will be the citizens of the respective towns Patna and Gaya, who will be provided with a constant supply of better quality water, and human waste from those areas served by the new network will be removed rapidly and treated to an acceptable standard. This should improve the environment of these areas, and should deliver major improvements in individual and community health and well-being. Diseases of poor sanitation, such as diarrhoea and dysentery, should be reduced, so people should spend less on healthcare and lose fewer working days due to 123 BUDP Main Report (May 2008) illness, so their economic status should also improve, as well as their overall health. 357. There are two straightforward but essential recommendations that need to be followed to ensure that the environmental impacts of the project are successfully mitigated. These are that UDD should ensure that: • All mitigation, compensation and enhancement measures proposed in the five IEE reports and Resettlement Plans (RP) are implemented in full; • The Environmental Monitoring Plan proposed in the IEE reports and the monitoring proposed in the RPs is also implemented in full. I. Conclusions 358. The environmental impacts of the proposed water supply, sewerage and slum infrastructure improvement subprojects have been assessed by the Initial Environmental Examination reports, conducted according to ADB guidelines. Issues related to Involuntary Resettlement were assessed by a parallel process of resettlement planning and will be compensated by measures set out in detail in the Resettlement Plans. The overall conclusion of both processes is that providing the mitigation, compensation and enhancement measures are implemented in full, there should be no significant negative environmental impacts as a result of location, design, construction or operation of the subproject. There should in fact be some small benefits from recommended mitigation and enhancement measures, and major improvements in quality of life and public health once the schemes are in operation. 359. There are no uncertainties in the analysis, and no additional work is required to comply with ADB procedure or national law. There is thus no need for further study or Environmental Assessment. 124 BUDP Main Report (May 2008) XV. Social Assessment A. Overview 360. Government of India (GoI) regulations and ADB Policy require that social impacts of development projects are identified and assessed as part of the planning and design process and that appropriate action is taken to reduce/minimize those impacts to acceptable levels and increase beneficial impacts on the population as far as possible. This is done through the social assessment process, which has become an integral part of lending operations and project development and implementation worldwide. 361. Under the proposed Bihar Urban Development Project (BUDP), a series of projects are proposed for infrastructure improvements in the towns of Patna and Gaya. Following the normal procedure of ADB, social assessment studies have been conducted at the project identification/preparation stage. The outcomes of these are: (i) determination of the Involuntary Resettlement category of BUDP; (ii) appropriate Resettlement Plans of sample projects, and (iii) project-specific Indigenous Peoples Development Framework for BUDP (refer Volume 4). B. Country Social Assessment / Resettlement and Rehabilitation Policy Requirements 1. Social Assessment, Resettlement and Rehabilitation 362. National Rehabilitation and Resettlement Policy (NRRP, Ministry of Rural Development, GoI, 2007) 363. The NRRP stipulates the minimum facilities to be ensured for persons displaced due to the acquisition of land for public purposes. The objectives of the Policy are: (i) to minimize displacement and to identify non-displacing or least displacing alternatives; (ii) to plan resettlement and rehabilitation of project affected families (PAFs) or project affected households (PAHs), including tribal and vulnerable households; (iii) to provide improved standard of living to PAFs or PAHs; and (iv) to facilitate a harmonious relationship between the requiring body and PAFs. 364. Though NRRP is applicable for projects where over 400 PAFs in the plains or 200 PAFs in hilly or tribal areas are displaced, the basic principles can be applied to resettlement and rehabilitation of PAFs regardless of the number of affected persons. The provisions of NRRP are intended to mitigate adverse impacts on PAFs. Critics have pointed out that while key principles of NRRP are similar and for some items go beyond ADB Policy on Involuntary Resettlement (1995), NRRP excludes linear projects (which require acquisition of only narrow strips of land). Linear impacts and temporary linear impacts 125 BUDP Main Report (May 2008) (which are likely impacts of the Project) are not covered by NRRP. Further, there is no law on resettlement in the country. The law relating to the acquisition of privately owned immoveable property is the Land Acquisition Act of 1894 (LAA, amended 1984), discussed in the following section. 365. Land Acquisition Act, 1894 amended 1984. The LAA provides a framework for facilitating land acquisition in India. LAA enables the State Government to acquire private land for public purposes. LAA ensures that no person is deprived of land except under LAA and entitles APs to a hearing before acquisition. The main elements of LAA are: (i) Land identified for the purpose of a project is placed under Section 4 of the LAA. This constitutes notification. Objections must be made within 50 days to the District Collector (DC, the highest administrative officer of the concerned District). In Bihar, District Land Acquisition Officer (DLAO) acts as the DC under LAA who oversees all land acquisition and resettlement activities under his/her jurisdiction. (ii) The land is then placed under Section 6 of the LAA. This is a declaration that the Government intends to acquire the land. The DLAO is directed to take steps for the acquisition, and the land is placed under Section 9. Interested parties are then invited to state their interest in the land and the price. Under Section 11, the DLAO will make an award within one year of the date of publication of the declarations. Otherwise, the acquisition proceedings shall lapse. (iii) In case of disagreement on the price awarded, within 6 weeks of the award, the parties (under Section 18) can request the DLAO to refer the matter to the Courts to make a final ruling on the amount of compensation. (iv) Once the land has been placed under Section 4, no further sale or transfer is allowed. (v) Compensation for land and improvements (such as houses, wells, trees, etc.) is paid in cash by the project authorities to the State Government, which in turn compensates landowners. (vi) The price to be paid for the acquisition of agricultural land is based on sale prices recorded in the District Registrar's office averaged over the three years preceding notification under Section 4. The compensation is paid after the area is acquired, with actual payment by the State taking about two or three years. An additional 30 percent is added to the award as well as an escalation of 12 percent per year from the date of notification to the final placement under Section 9. For delayed payments, after placement under Section 9, an additional 9 percent per annum is paid for the first year and 15 percent for subsequent years. In Bihar, under new procedures (2007), the final award offered includes original land cost, an additional 50 percent of land cost, and 60 percent additional amount calculated on the total land cost; if APs willingly part with their land. The new procedure also provides a job card of 180 days for APs whose livelihoods are affected/ impacted. This new process is to be followed for BUDP. 126 BUDP Main Report (May 2008) 2. Indigenous Peoples / Scheduled Tribes 366. The Indian Constitution (Article 342) defines Scheduled Tribes (STs) as those with special characteristics such as (i) primitive traits; (ii) distinctive culture; (iii) shyness with the public at large; (iv) geographical isolation; (v) social and economic backwardness. Constitutional protection and programs for tribal development have brought significant changes since 1947 which played a major role in bringing STs into mainstream society. There are 30 major tribes (refer IPDF) in Bihar according to the notified Schedule under Article 342 of the Constitution of India. Of these, GoB has identified (i) Asur; (ii) Birjia; (iii) Birhor; (iv) Korwa; (v) Parhaiya; (vi) Mal Pahariya; (vii) Sauria Paharia; and (viii) Sawar tribes as primitive tribal groups (Dept. of SC/ST Welfare, GoB). PTG population constitutes approximately 23 percent (9,361) of the total ST population in the state (Census, 2001). Concentrated tribal areas, termed as Integrated Tribal Development Project (ITDP) existed in undivided Bihar; however, these now fall in Jharkhand after division of the state. C. ADB’S Policy on Involuntary Resettlement and Indigenous Peoples 1. Involuntary Resettlement 367. ADB’s Operations Manual and Operations Procedures (2006) Section F2 on Involuntary Resettlement has three key elements: (i) compensation to replace lost assets, livelihood and income; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation to achieve at least the same level of well-being with the project as without it. 368. For any ADB operation requiring involuntary resettlement, resettlement planning is an integral part of project design, to be dealt with from the earliest stages of the project cycle, taking into account the following basic principles: (i) Involuntary resettlement will be avoided whenever feasible. (ii) Where population displacement is unavoidable, it should be minimized by providing viable livelihood options. (iii) Replacing what is lost: All lost assets and social support systems affected will be compensated. Compensation is based on the principle of replacement cost. (iv) Each involuntary resettlement is conceived and executed as part of a development project. APs need to be provided with sufficient resources to re-establish their livelihoods and homes with time-bound action in coordination with civil works. (v) APs are to be fully informed and closely consulted. (vi) Social and cultural institutions of APs and wherever applicable, of host communities are to be protected and supported. (vii) The absence of a formal title to land is not a bar to ADB policy entitlements. (viii) APs are to be identified and recorded as early as possible to establish their eligibility, through a census which serves as a cut-off date, and prevents subsequent 127 BUDP Main Report (May 2008) influx of encroachers. (ix) Particular attention will be paid to the needs of the poorest and vulnerable groups including those without legal title to land or other assets; households headed by women; the elderly or disabled; and indigenous groups. Assistance must be provided to help them improve their socio-economic status. (x) The full resettlement costs will be included in the presentation of project costs and benefits. (xi) Relocation and rehabilitation costs are eligible for inclusion in ADB loan financing for the project to assure timely availability of the required resources. 2. Indigenous Peoples 369. Indigenous peoples (IP) are defined as per ADB Policy (Operations Manual and Operations Procedures (2006) Section F3 on Indigenous Peoples) as those having a distinct social, cultural, economic, and political traditions and institutions compared with the mainstream or dominant society. The Asian Development Bank (ADB) defines IPs as those with the following characteristics: (i) descent from population groups present in a given area before territories were defined; (ii) maintenance of cultural and social identities separate from dominant societies and cultures; (iii) self identification and identification by others are being part of a distinct cultural group; (iv) a linguistic identity different from that of dominant society; (v) social, economic, and political traditions and institutions distinct from dominant culture; (vi) economic systems oriented more toward traditional production systems rather than mainstream; and (vii) unique ties and attachments to traditional habitats and ancestral territories. 370. BUDP projects have been screened for potential impacts on IPs. An Indigenous Peoples Development Framework (IPDF) has been prepared specifically for BUDP (refer IPDF in Volume 4). Screening undertaken for BUDP is presented in the IPDF and SRPs. Extensive consultations were undertaken during preparation of projects. The process of consultation and disclosure is detailed in the Short Resettlement Plans (SRPs). D. ADB Involuntary Resettlement and Indigenous Peoples Categorization 1. Involuntary Resettlement Categorisation 371. ADB’s Operations Manual and Operations Procedures (2006) Section F2 specifies that all projects financed by the Bank are subjected to the following process of identification and categorization of Involuntary Resettlement: (i) Category A: Significant: Any project involving major impacts on 200 or more people, which are identified as (i) being physically displaced from housing, or (ii) losing 10% or more of their productive/income-generating assets. Category A projects require a full resettlement plan. Some of the projects may require a resettlement framework prior to the full resettlement plan. 128 BUDP Main Report (May 2008) (ii) Category B: Not Significant: Projects may be classified as Category B if there are involuntary resettlement impacts that are not deemed significant and require a Short Resettlement Plan. Some of the projects may require a resettlement framework prior to the full resettlement plan. (iii) Category C: No resettlement impacts, hence neither a resettlement plan nor a resettlement framework is required. 2. Categorisation of projects based on impacts on Indigenous Peoples (IPs) 372. ADB’s Operations Manual and Operations Procedures (2006) Section F3 specifies that impacts on IPs will be considered significant if they positively or negatively (i) affect their customary rights of use and access to land and natural resources, (ii) change their socio- economic status, (iii) affect their cultural and communal integrity and (iv) affect their health, education, livelihood and / or social security status. 373. Category A: Significant Impacts requiring an IPDP and / or IPDF if there exists: (i) adverse impacts on customary rights of use and access to land and natural resources; (ii) negative effects on socioeconomic and cultural integrity; (iii) effects on livelihood, and social security status; and/or (iv) other impacts that may alter or undermine indigenous knowledge and customary institutions. 374. Category B: Limited Impacts. If impacts on IPs are insignificant/ limited, specific actions in favor of IPs can be incorporated within the Resettlement Plan (RP) for the project. This would ensure appropriate mitigation and benefits for IPs. E. BUDP Involuntary Resettlement Category 375. Patna and Gaya are selected to benefit from the funds available under BUDP. Following the ADB Environmental and Social Assessment Guidelines, based on the sample projects, BUDP projects qualify for Category C under IP categorization and Category B under IR Categorization. Only temporary resettlement impacts are envisaged for all the identified projects under BUDP. 376. Table 47 presents the categorization of identified projects of the BUDP. The identified projects have been categorized based on the rapid evaluation using the Rapid Environmental Checklists and IR Checklist of ADB. 129 BUDP Main Report (May 2008) Table 47: Project IR/IP Categorization S. Subproject Components IR IP Remarks No Category# Category$ 1 Improvement of • Repair and replacement of B C Refer Volume 4 for IR Water Supply in /IP Categorization existing distribution and Patna Forms and SRP pumping mains • Water supply optimization: this includes construction of new overhead service reservoirs and capping and decommissioning of surplus tube wells • New water supply system in presently uncovered areas including new tube wells, storage tanks, distribution system etc • Provision of disinfection facilities, and a laboratory • System automation 2 Improvement of • Capacity augmentation of B C Refer Volume 4 for IR sewerage /IP Categorization existing Sewage Treatment system in Patna Forms and SRP Plant (STP) at Beur including rehabilitation of outfall drain • Repair and rehabilitation of existing STP at Pahari including construction of outfall drain • Rehabilitation of existing sewers 3 Improvement of • Provision/improvement of B C Refer Volume 4 for IR slums in Patna /IP Categorization basic infrastructure (water Forms and SRP supply, sewerage, drainage, solid waste management, and roads) in Mandiri and Lohanipur slum settlements. 4 Rehabilitation • Repair and replacement of B C Refer Volume 4 for IR of water supply /IP Categorization existing distribution and system in Gaya Forms and SRP pumping mains • Construction of overhead service reservoirs • Provision of disinfection facilities, and a laboratory • System automation 130 BUDP Main Report (May 2008) 5 Improvement of • Provision/improvement of B C Refer Volume 4 for IR slums in Gaya /IP Categorization basic infrastructure (water Forms and SRP supply, sewerage, drainage, solid waste management, and roads) in Kapil Dhara, Tilbigha Dom Toli, Manpur (Gandhinagar), Baksu Bigha and Geval Bigha slums. Repairs to housing. # This categorization is based on ADB Environmental Policy, 2002. The proposed sub- projects, due to their nature and scale, do not fall under the ambit of EIA Notification, 2006 of Government of India, and therefore no categorization based on government legislations is applicable. $ The nature of social impacts envisaged under BUDP are temporary and much smaller in scale than those falling under the domain of Government of India’s National Rehabilitation and Resettlement Policy (NRRP), 2007, hence, not applicable. 377. IP categorization for BUDP (refer IPDF, Volume 4) further reveals that no significant impact is likely on indigenous peoples in the project towns, with Patna reporting 0.33 percent ST population and Gaya reporting 0.16 percent ST population (Census 2001), which is mainstreamed. F. Short Resettlement Plans 378. Short Resettlement Plans (SRPs) have been prepared for proposed projects under BUDP. These are presented in Volume 4. The SRPs contain the Entitlement Matrix (EM) for the potential impacts related to identified interventions – the EM has been finalized in consultation with stakeholders during disclosure workshops. They also provide details on grievance redressal processes to be followed, procedures for compensation, income restoration and assistance for temporary impacts, institutional arrangements and responsibilities and the RP implementation schedule. A summary of impacts for identified projects is presented in the Table 48 below. 131 BUDP Main Report (May 2008) Table 48: Summary of Resettlement Impacts Category Water Supply Sewerage Water Supply Improvement- Improvement- Improvement- Patna Patna Gaya Permanent Land Acquisition (Ha.) None None None Temporarily Affected Persons (APs)* 9,142 3,166 595 Titled APs (Temporarily Affected) None None None Non-Titled APs (Temporarily 9,142 3,166 595 Affected) Female APs None None 13 IP/ST APs None None None BPL APs (Temporarily Affected) 742 262 116 Affected Trees/Crops None None None Temporarily Affected Common None None None Structures Average Income of APs (per month) Rs. 3,150 Rs. 3,150 Rs. 6,750 Income Sources Temporarily Affected Fruit, Tobacco, Fruit, Tobacco, Fruit sellers, Vegetable, Tea, Vegetable, Tea, Clothes Stalls, Chicken and Chicken and Spice Sellers, Mutton sellers, Mutton sellers, Repair of Barber etc. Barber etc. Watches/Torches, Belts/Leather Stalls etc. Source: Extrapolated from transect walks. Note: Under Slum Improvement in Patna, temporary impacts on ~20APs in accessing common resources are envisaged. For the proposed Slum Improvement project in Gaya, temporary disruptions in access to common facilities (hand pumps) are anticipated for 140 persons, of which ~56 are BPL. 379. ADB Policy requires that the Executing Agency or Project Sponsor disseminates information to and closely consults affected people during resettlement planning and implementation. Consultation and disclosure processes (undertaken and proposed) are presented in the SRPs (Volume 4). G. Resettlement Costs 380. Detailed budget estimates for involuntary resettlement will be prepared for each RP, by the PMU. It has been included in the overall project estimate. The budget includes i) detailed costs of land acquisition, relocation, and livelihood and income restoration and improvement, ii) source of funding, iii) arrangements for approval, and iv) the flow of funds and contingency arrangements. Based on transect walk results, at present, no costs are anticipated for compensation and assistance for expected assets lost; hence, only administrative and implementation costs are included in the resettlement budget (Table 49). The cost estimates also provide an allocation for contingencies. A 4% price contingency and 20% physical contingency has been included for unanticipated impacts such as temporary loss of land; cost of renting out place to move vendors; reconstruction of movable structures if required etc. Administrative and implementation costs, including engagement of the implementing NGO, cost of census and survey of APs and inventory of assets, cost of information and consultations, training and monitoring (including evaluation by independent agency), and rental of office space and required physical 132 BUDP Main Report (May 2008) facilities and materials will be funded under the Investment Project. Social assessment costs will be considered as an integral component of project costs. Table 49: Resettlement Costs Rs. million A. Administrative Costs BUDP Total Patna Gaya PMU Resettlement Specialist in ESMC (60 months) 1.22 0.73 0.49 DSC Resettlement Specialist (40 months) 8.74 5.24 3.49 PMC Resettlement Specialist (18 months) 3.93 2.36 1.57 B. Implementation Costs Implementing NGO[3] covering NGO engagement, cost 5.00 3.00 2.00 of census and survey of APs and inventory of assets, cost of information and consultations, training and monitoring (including evaluation by independent agency), and rental of office space and required phy C. Contingencies Unanticipated impacts (such as temporary impacts on 3.90 2.34 1.56 structures or temporary loss of land), cost of renting out place to move vendors, reconstruction of makeshift structures required if any etc. (20%) Total 22.78 13.67 9.11 Note: the break-up for price contingency is not shown in the table above. However, in addition to the above, price contingency of 4% is considered for BUDP Project costing - this applies to Costs A and B pertaining to resettlement given in the table above. 133 BUDP Main Report Appendices Appendix 1: Financial Performance of 7 ULBs Head of Account Patna Gaya Ara Biharsharif Muzaffarpur Darbhanga Bhagalpur Total 1 2 3 4 5 6 7 8 Rs. Million INCOME NA I Income Own Sources A. Municipal Taxes 1. Holding (Property) Tax 155.8 18.1 9.6 5.3 35.9 20.1 247.4 2. Other Taxes 4.7 0.7 2.5 - - 0.2 5.6 Subtotal 160.5 18.8 12.1 5.3 35.9 20.3 253.0 B. Non-Tax Income-Own Sources 1. Income from Municipal Properties 5.5 10.1 1.1 4.4 3.2 5.4 29.6 2. Other Non -tax income 1.1 11.3 0.9 11.1 1.0 25.4 Subtotal 6.6 21.4 1.1 5.3 14.3 6.4 55.0 Total-Income Own Sources 167.1 40.2 13.2 10.6 50.2 6.4 308.0 II Revenue Transfers / Grants 1. Additional Stamp Duty 36.8 0.0 3.7 2.5 7.1 5.2 55.3 2. General Grants 121.8 0.0 1.3 25.4 148.5 Total-Revenue Transfer / Grants 158.6 0.0 3.7 3.8 32.5 5.2 203.8 Total Income 325.7 40.2 16.9 14.3 82.7 31.8 511.8 REVENUE EXPENDITURE 1. Staff Salary and Employee Related 336.9 32.7 14.1 4.5 52.0 26.4 466.6 Expenses 2. Contingency and Operation & 87.6 10.8 - 1.0 18.8 76.6 194.7 Maintenance Expenses Total Revenue Expenditure 424.5 43.5 14.1 5.5 70.8 103.0 661.3 Revenue Surplus a (98.8) (3.2) 2.9 8.8 11.9 (71.2) (149.5) Indicators Own income to total revenue income 51 100 78 74 61 27 60 % of Salaries to total revenue exp 79 75 100 83 73 84 71 134 BUDP Main Report Appendices Appendix 2: Summarized Position of Income and Expenditure of Patna and Gaya Water Board Particulars 2005-06 2006-07 Actual Actual Rs. Million Patna Water Board Income Money transfers from Patna Municipal Corporation 28.3 26.6 Non-Domestic Consumers 0.5 2.0 Total Income 28.8 28.6 Expenditure Establishment Expenses 22.1 26.8 Operation and Maintenance 2.8 2.7 Power (now paid by GoB) N.A. N.A. Total Expenditure 24.9 29.5 Gaya Water Board Income Money transfers from Gaya Municipal Corporation 3.1 2.7 Non-Domestic Consumers N.A. N.A. Total Income 3.1 2.7 Expenditure Establishment Expenses* 4.0 4.3 Operation and Maintenance Power (now paid by GoB) N.A. N.A. Total Expenditure 4.0 4.3 * No breakup available 135 BUDP Main Report Appendices Appendix 3: Consolidation of Financial Management Assessment of the Two ULBs - BUDP S. No. Particulars Summarized Response Remarks 1. Implementing Legal Status: Both urban local bodies (ULBs) Lacks experience handling Agency are Constituted under Municipal Act of Bihar. similar funded project. Similar Project Experience: No prior experience. ULBs staff lacks Reporting requirements: Monthly Accounts, experience, technical Demand Collection, Balance (DCB) knowledge to undertake Statement and Annual Financial Statement such a large sized project Independent Governing Body: No. Directorate of Local Bodies under Urban Development (UDD) department of GoB governs both BUDP and ULBs. 2. Funds Flow Refer flow chart - Provided in Appendix 23 Past experience of ULBs in Arrangements (Main Report) carrying out developmental No previous experience of ADB works has been non- disbursements: availability of funds on Imprest / SGIA bank account proposed in timely basis. Funds are nationalized bank; received from GoB under the yearly budget Counterpart funding will be provided for in provisions. In this case also the GoB's and ULBs' annual budgets; same procedure proposed. No beneficiaries' contribution envisaged under Capacity building of the BUDP. None of the sub-project proposed to PIUs to be done for a) be implemented by communities or NGOs; financial management b) project financial monitoring. 3. Staffing Present staff not trained in ADB procedures Present staffing at ULBs and are recruited through Bihar Municipal not adequate, not properly Services; qualified, trained and lacks Staffing not adequate. ability and capacity to All present ULB staff is permanent and are handle a project of this size. not liable to be transferred. The training and capacity building is to be provided; No training being imparted at present to project financial ULB's finance and accounts staff. management and accounting system manual developed in addition to training modules & manuals for training of project finance and accounts staff. 4 Accounting ULBs - Cash based accounting system, plan to The Comptroller and Policies and switch over to double entry (accrual) based Auditor General (CAG) of Procedures system as per GoI directive/CAG Task Force India's Task Force recommendations. Project will use accrual recommendations have based accounting system. been converted into a Controls are in place for the authorization / National Accounting 136 BUDP Main Report Appendices S. No. Particulars Summarized Response Remarks approvals, recording of transactions, payments Manual for ULBs. States and recording of payments in cash book in are expected to draw from accordance with the budget heads approved; the same to develop a Only abstract of all receipts and payments are Double Entry / Accrual prepared as per approved budget heads (that Based Accounting System too only major head wise and not in detailed for local governments. The minor head wise); Project will adopt a similar Accounting records are retained on a system. permanent basis as per requirement. Segregation of Adequate internal checks and controls are in Duties place with respect to authorization, recording of transaction, custody of assets, order, receipt & accounting of goods and services etc. Budgeting Chief Municipal Officer is responsible for the Clear targets not defined; System preparation of the annual budget. The Chief the Project targets and Councilor is responsible for presentation of budget for project activities the budget before Municipality, through the should be well defined and Empowered Standing Committee, for based on realistic and valid approval. assumption. Variance Explanatory notes to the budget provide analysis on regular basis to sufficient details. Financial ceilings prescribed be provided for under the in the budget are adhered to. All variations or provided for under the excess expenditure over budget requires prior project. approval; Adequate procedures to plan and budget developmental activities which are at best small to medium size and not as big / significant as envisaged under BUDP. Payment Procedures in respect of payments of invoices, Systems bills etc is adequate; Pre-audit system in place ensuring all the checks are carried out before payments are made; All invoices, bills etc are stamped paid and duly checked, reviewed and approved prior to payment. Policies And Cash basis of accounting being followed; To change over to Double Procedures Accounting rules & standards as laid down by Entry / Accrual System; the Act / GoB is being followed; Accounting system to be in Government orders, circulars etc supplement line with accepted the accounting rules; international accounting The extant rules define conflict of interest and standards; related party transactions and provide Project Financial adequate safeguards. Management & Accounting System Manual to be 137 BUDP Main Report Appendices S. No. Particulars Summarized Response Remarks prepared for the project laying down the policies, procedures & methods for the benefit of project finance and accounts staff. Cash and Gaya - Municipal Commissioner and Bank Accounts Officer are the joint authorized signatories for bank and treasury operations; Patna – Main Office – Single signatory – either Municipal Commissioner or Additional Municipal Commissioner (Chief Accounts Officer). Circle Office – Joint Signatories – Executive Officer and Cashier or Account Assistant. Cash book generally upto date, receipts/deposits & payments generally recorded on timely basis; Bank reconciliation statements are prepared and cash is reconciled regularly. Safeguard Physical control over assets is provided by the Insufficient safeguards over over Assets existing systems & procedures through assets, needs improvement, maintenance of register; records need to be kept Financial records for assets are not being upto date, periodical maintained; physical verification & Physical verification and reconciliation with reconciliation to be carried the register not carried out; out and all assets (after completion) to be insured Assets, excepting vehicles, are not insured. under the project. Other Offices Yes, Bihar Rajya Jal Parshad (a body under To be covered under the and administrative control of Public Health Project depending on the Implementing Engineering Department), Road Construction decision of GoB with Entities Department; respect to financing and Presently there are no established procedures implementation issues. & controls for flow of funds, financial information, reconciliations, accountability & audits in relation to the other entities. Other Advice for reporting of frauds etc to To be provided for. appropriate authority under the project not specified. 5 Internal Gaya - Conducted in-house. Appropriate Audit actions are taken on the internal audit findings. Patna – At present no internal audit. However in-house internal audit is under consideration. 6 External Director of Local Fund is the Statutory Separate audit of project Audit Auditor and performs the audit as per financial statements in standards laid down by the Comptroller Audit accordance with the & Accountant General (CAG) of India : accepted auditing standards In addition, Accountant General (Audit)'s proposed. office also carries out the audit on annual 138 BUDP Main Report Appendices S. No. Particulars Summarized Response Remarks basis; Audit paras are issued and according to the replies received compliance ensured. Separate audit of project financial statements proposed. 7 Reporting & Yes. To be provided for under Monitoring Present reporting system inadequate to meet the Project. project reporting requirements, with only financial figures being reported against the budget allotments. 8 Information No. Process of computerization of accounting To be provided for under Systems records in the initial stages. the Project. Present system not adequate to generate project financial reports. Inadequate training of present staff of ULBs. Inadequate safeguard of the confidentiality, integrity and availability of data. 139 BUDP Main Report Appendices Appendix 4: External Assistance to the Urban sector Project Year Source Amount Approved (US Million) A. Loan-Financed Investment Projects Urban City Water Supply Project 1992 Japan 62.45 Yamuna Action Plan Project 1992 Japan 134.00 Karnataka Rural Water Supply and Environmental 1994 World Bank 92.00 Sanitation Financial Institutions Reform and Expansion 1994 USAID 125.00 Program Urban Infrastructure Development Rural Water Supply Rajasthan 1994 KfW 60.84 Comprehensive Watershed Development Project 1994 Danida 14.72 Second Chennai Water Supply Project 1995 World Bank 61.00 Lake Bhopal Conservation and Management Project 1995 Japan 64.91 Chennai Sewerage Renovation and Functional 1995 Japan 157.30 Improvement Project Karnataka Urban Infrastructure Development 1995 ADB 105.00 Bangalore Water Supply and Sewerage 1995 Japan 261.76 Setting up of a Water Treatment Plant 1996 France 6.30 Master Plan, leakage study, ground water recharge 1996 France 4.20 study Mumbai Sewage Disposal Project 1996 World Bank 192.00 Urban Water Supply and Sanitation Improvement 1996 Japan 96.00 Project Kerala Water Supply Project 1996 Japan 286.00 Rural Water Supply West Bengal 1997 KfW 22.53 Housing Finance—I 1997 ADB 300.00 Rajasthan Urban Infrastructure Development 1998 ADB 250.00 Setting up of a Water Treatment Plant 1998 France 7.00 Karnataka Urban Development and Coastal 1999 ADB 175.00 Environmental Management Project Urban and Environment Infrastructure Facility 1999 ADB 90.00 Setting up of Dam Fuse Gates 1999 France 4.76 Improvement of Water Supply and Network 1999 France 13.72 Rehabilitation Setting up of a Water Treatment Plant 1999 France 4.44 Groundwater Study 1999 France 0.63 Pilot for Rehabilitation and Improvement of 1999 France 5.04 Calcutta Network Study on Impact of Mining Activities on the 1999 France 2.52 Catchment Area of the Subarnarekha Housing Finance – II 2000 ADB 300.00 Rural Water Supply Maharashtra 2000 KfW 21.00 Calcutta Environment Improvement 2000 ADB 250.00 Kerala Rural Water Supply and Environment 2000 World Bank 65.50 Sanitation 140 BUDP Main Report Appendices Project Year Source Amount Approved (US Million) Gujarat Earthquake Rehabilitation and 2001 ADB 500.00 Reconstruction Project Madhya Pradesh Urban Water Supply and 2004 ADB 244.00 Environmental Improvement Project Karnataka Urban Water Supply Improvement 2004 World Bank 39.50 Project Total 3,953.49 B. Grant-Financed Investment Projects Hyderabad Waster Management Project 1995 AusAID 4.38 Keshopur Sewage Management Project 1997 AusAlD 0.39 Cuttack Urban Services Improvement Project 1998 DFID 18.43 Calcutta Slum Improvement Project 1998 DFID 2.80 Cochin Urban Poverty Reduction Project 1998 DFID 17.31 Karnataka Watershed Development Project 1998 DFID 22.02 Urban Environmental Sanitation: Capacity Building 1998 UNDP/WB 1.00 for Municipal and National Decision Makers Strategic Sanitation Planning 1998 UNDP/WB 0.25 Strategic Planning for Solid Waste Project in 1998 UNDP/WB 0.01 Kuppam Participatory Learning Assessment with Dutch- 1998 UNDP/WB 0.02 Assisted Water Supply and Sanitation Public-Private Partnership in Water Supply and 1998 UNDP 0.02 Sanitation Management in Meerut District Community-Based Sustainable Portable Drinking 1999 UNDP/WB 0.16 Water Supply in West Bengal Environment and Sanitation 1999 UNICEF 15.20 Small Grants Facility to Support Initiatives in the 1999 UNDP 3.00 Water and Environment Sanitation Sector Municipal Services for Urban Poor, Hyderabad, 1999 UNDP/WB 0.08 Andhra Pradesh Improvement of Community-Based Environmental 1999 USAID 0.35 Infrastructure Andhra Pradesh Urban Services for the Poor 1999 DFID 177.48 UNICEF/Government of India, Child’s 1999 DFID 26.86 Environment: Hygiene, Sanitation and Water Supply Program Maharashtra Water and Environment Sanitation 1999 DFID 118.50 Project Translating RWSS Policy Reforms into Reality : A 1999 UNDP/WB 1.39 Strategy for Change Bangalore Water Supply and Environmental 2000 AusAID 3.96 Sanitation Master Plan WES Thematic Documentation 2000 UNDP 0.02 Community-Based Environmental Improvement 2000 USAID 0.10 Program Kolkata Urban Services for the Poor 2001 DFID 101.44 Gangtok and Shillong Urban Water Supply and 2003 AusAiD/WB 11.85 141 BUDP Main Report Appendices Project Year Source Amount Approved (US Million) Environmental Sanitation Project Total 527.02 C. ADB Technical Assistance Urban Infrastructure Development 1993 ADB 0.60 Urban Sector Profile 1994 ADB 0.40 Capacity Building for Improved Infrastructure 1994 ADB 0 60 Development in Selected Municipalities in Karnataka State Institutional Strengthening of Karnataka Urban 1995 ADB 0.10 Infrastructure Finance Corporation Resource Mobilization Study for Local 1995 ADB 0.30 Governments in Karnataka Rajasthan Urban Infrastructure Development 1995 ADB 0.60 Housing Finance Facility Project 1996 ADB 0.10 Karnataka Coastal Environment Management & 1997 ADB 0.80 Urban Development Urban and Environmental Infrastructure Fund 1997 ADB 0.40 Strengthening Housing Finance Institutions 1997 ADB 0.60 Restructuring State-level Housing Institutions 1998 ADB 0.50 Calcutta Environmental Improvement 1998 ADB 1.00 Strengthening Institutional Capacities for Urban 1999 ADB 0.50 Infrastructure Finance and Development Community Participation in Urban Environmental 1999 ADB 0.15 Improvement. Strengthening Micro Finance Institutions for Urban 1999 ADB 0 50 and Environmental Infrastructure Finance Capacity Building for Social Development 1999 ADB 0.80 Strengthening Disaster Mitigation and Management 1999 ADB 1.00 Reducing Poverty in Urban India 2000 ADB 0.30 Integrated Urban Development in Madhya Pradesh 2001 ADB 1.00 Support for Improvements in the Accounting 2001 ADB 0.15 System of the Kolkatta Municipal Corporation Conservation and Livelihood Improvement in the 2001 ADB 0.45 Sundarbans North East Region Urban Sector Profile 2002 ADB 0.15 Urban Sector Review and Strategy 2003 ADB 0.48 Kerala Sustainable Urban Development Project 2003 ADB 1.00 Capacity Building for Project Management and 2003 ADB 0.52 Community Mobilization in Madhya Pradesh North East Region Urban Development Project 2004 ADB 1.00 Capacity Building for Kerala Sustainable Urban 2004 ADB 0.63 Development Capacity Building for Municipal Service Delivery in 2004 ADB 1.06 Kerala Jammu & Kashmir Urban Infrastructure 2004 ADB 0.50 Development Project 142 BUDP Main Report Appendices Project Year Source Amount Approved (US Million) Karnataka Urban Development III 2004 ADB 0.40 North East Region Urban Development Project 2005 ADB 0.96 (Phase II) Uttaranchal Urban Development 2005 ADB 0.60 Achieving Full Cost Recovery in Urban Slums in 2005 ADB 0.10 Dehra Dun Umbrella grant for Project Processing and Capacity Pending ADB 15.00 Building Total 33.25 ADB = Asian Development Bank, AusAID = Australian Agency for International Development, Danida = Danish International Development Assistance, DFID = Department for International Development, KfW = Kreditanstalt fur Wiederaufbau, RWSS = Rural Water Supply and Sanitation, UNDP = United Nations Development Program, UNICEF = United Nations Children’s Fund, USAID = United States Agency for International Development. 143 Appendix 5 - Detailed Cost Tables Bihar Urban Development Project (BUDP) % % Total Components Project Cost Summary (Rupees Million) (US$ Million) Foreign Base Local Foreign Total Local Foreign Total Exchange Costs A. Urban Infrastructure Improvement 1. Water Supply Patna - Water Supply 2,206.9 - 2,206.9 56.6 - 56.6 - 51 Gaya - Water Supply 235.7 - 235.7 6.0 - 6.0 - 5 Subtotal Water Supply 2,442.6 - 2,442.6 62.6 - 62.6 - 56 2. Sewerage and Sanitation Patna - Sewerage and Sanitation 1,261.1 - 1,261.1 32.3 - 32.3 - 29 Subtotal Urban Infrastructure Improvement 3,703.7 - 3,703.7 95.0 - 95.0 - 85 B. Slum Infrastructure Patna - Slum Infrastructure 69.8 - 69.8 1.8 - 1.8 - 2 Gaya - Slum Infrastructure 58.4 - 58.4 1.5 - 1.5 - 1 Subtotal Slum Infrastructure 128.2 - 128.2 3.3 - 3.3 - 3 C. Project Management 1. Incremental Administration Incremental Administration - Consolidated 127.4 - 127.4 3.3 - 3.3 - 3 2. Implementation Assistance - Consulting Services a. Project Construction & Supervision Implementation Assistance - Project Management Consultants 69.0 - 69.0 1.8 - 1.8 - 2 Project Consultants - Consolidated 221.8 - 221.8 5.7 - 5.7 - 5 Subtotal Project Construction & Supervision 290.8 - 290.8 7.5 - 7.5 - 7 b. Benefit Monitoring and Evaluation-Consolidated 10.2 - 10.2 0.3 - 0.3 - - c. Slum Policy and Study Technical Assistance - Others - Consolidated 15.3 - 15.3 0.4 - 0.4 - - d. Groundwater Source Study - Gaya 3.5 - 3.5 0.1 - 0.1 - - Subtotal Implementation Assistance - Consulting Services 319.7 - 319.7 8.2 - 8.2 - 7 3. Institutional Development Institutional Development - Computerisation - Consolidated 47.8 - 47.8 1.2 - 1.2 - 1 4. Other Technical Assistance 5.0 - 5.0 0.1 - 0.1 - - Subtotal Project Management 499.9 - 499.9 12.8 - 12.8 - 12 Total BASELINE COSTS 4,331.8 - 4,331.8 111.1 - 111.1 - 100 Physical Contingencies 346.5 - 346.5 8.9 - 8.9 - 8 Price Contingencies 653.5 - 653.5 9.8 - 9.8 - 9 Total PROJECT COSTS 5,331.9 - 5,331.9 129.8 - 129.8 - 117 Interest During Implementation - 520.2 520.2 - 12.8 12.8 100 11 Commitment Charges - 45.9 45.9 - 1.1 1.1 100 1 Front-end fees - 41.0 41.0 - 1.0 1.0 100 1 Total Costs to be Financed 5,331.9 607.1 5,939.0 129.8 14.9 144.7 10 130 IndiaAppendix 5 Bihar Urban Development Project (BUDP) Table 11. Water Supply - Patna Detailed Costs Base Cost (Rupees Million) 2009 2010 2011 2012 2013 Total I. Investment Costs A. Distribution System including Metering 1. Leakage Removal, Service Line Replacement MDPE pipe 15 mm for service line replacement 0.5 1.5 2.0 0.8 0.3 5.0 Connection Shifting 2.5 7.5 10.0 3.8 1.3 25.0 Removal of visible leakages 0.1 0.3 0.4 0.2 0.1 1.0 Leak detection and leak removal 0.3 0.9 1.2 0.5 0.2 3.0 Subtotal Leakage Removal, Service Line Replacement 3.4 10.2 13.6 5.1 1.7 34.0 2. Distribution System Supply of uPVC/HDPE pipe 100 mm dia 2.2 6.7 8.9 3.3 1.1 22.2 Supply of uPVC / HDPE pipe 150 mm dia 2.4 7.3 9.7 3.6 1.2 24.2 Supply of DI Pipe K7 200 mm dia 8.1 24.2 32.3 12.1 4.0 80.6 Supply of DI pipe K7 250 mm dia 8.4 25.1 33.4 12.5 4.2 83.6 Supply of DI pipe K7 300 mm dia 9.8 29.3 39.1 14.7 4.9 97.7 Supply of DI pipe K7 350 mm dia 6.8 20.4 27.2 10.2 3.4 67.9 Supply of DI pipe K7 400 mm dia 4.7 14.0 18.7 7.0 2.3 46.8 Supply of DI pipe K7 450 mm 2.5 7.5 10.0 3.7 1.2 25.0 Supply of DI pipe K7 500 mm dia 0.1 0.3 0.4 0.1 0.0 0.9 Spaghetti Connections 4.0 12.0 16.0 6.0 2.0 40.0 Add 50% for excavation, appurtenances 24.4 73.3 97.8 36.7 12.2 244.4 Subtotal Distribution System 73.3 220.0 293.3 110.0 36.7 733.2 3. Rising Main Pipe Line Pipeline tubewell to OHSR 350 mm DI K7 2.7 8.1 10.8 4.0 1.3 27.0 Pipeline tubewell to OHSR 300 mm DI K7 2.1 6.4 8.6 3.2 1.1 21.4 Laying, Jointing, testing & commissioning etc. (50%) 2.4 7.3 9.7 3.6 1.2 24.2 Subtotal Rising Main Pipe Line 7.3 21.8 29.0 10.9 3.6 72.5 4. Bulk Flow Meters Supply and installation of full bore electro magnetic meters - siz 3.0 11.9 11.9 3.0 - 29.8 Portable Ultrasonic Flow Meter 0.1 0.4 0.4 0.1 - 1.0 Subtotal Bulk Flow Meters 3.1 12.3 12.3 3.1 - 30.8 5. Consumer Meters Domestic Water Meters - size 15mm - 7.5 32.2 42.9 24.7 107.3 Domestic Water Meters - size 15mm - 17.4 74.7 99.5 57.2 248.8 Domestic Water Meters size 20 mm - 5.8 24.8 33.0 19.0 82.5 Domestic Water Meters size 25 mm - 1.0 4.2 5.6 3.2 14.0 Subtotal Consumer Meters - 31.7 135.8 181.0 104.1 452.6 6. House Connections House Service Connections - - - 37.2 - 37.2 Subtotal Distribution System including Metering 87.1 295.9 484.0 347.2 146.1 1,360.3 B. Tubewells, Service Reservoirs, Disinfection, Mechanical and 1. Construction and Installation Tubewell, pumps, electrical pump, transformer pump house etc 4.6 10.1 3.7 - - 18.4 Tubewells, pumps, electrical pumps, transformers etc 13.8 30.4 11.1 - - 55.3 Subtotal Construction and Installation 18.4 40.5 14.7 - - 73.7 2. Construction of OHSRs RCC OHSR at 20 metre staging with vertical pipes, 48 No. eac 69.0 275.8 275.8 69.0 - 689.5 Repair of Existing OHSR 0.5 2.0 2.0 0.5 - 5.0 Subtotal Construction of OHSRs 69.5 277.8 277.8 69.5 - 694.5 3. Disinfection of Water and Laboratory Gas Chlorination System 0.7 2.9 2.9 0.7 - 7.2 Cylinder 100 kg 0.1 0.5 0.5 0.1 - 1.2 Chlorinator Room 0.7 2.9 2.9 0.7 - 7.2 Laboratory 0.1 0.2 0.2 0.1 - 0.5 Subtotal Disinfection of Water and Laboratory 1.6 6.4 6.4 1.6 - 16.1 4. Replacement of Inefficient Pumping Machinery and revamp Efficiency test of tube wells and energy audit of old pumps - 0.1 0.2 - - 0.3 Revamp Electrical System - all tubewells and automation of tub - 1.8 3.3 - - 5.0 Repair of Mechanical Equipment, NRV, Valves, piping - 0.7 1.3 - - 2.0 Transformer, Pumps etc - 1.8 3.3 - - 5.0 SCADA System - 17.5 32.5 - - 50.0 Subtotal Replacement of Inefficient Pumping Machinery and r - 21.8 40.5 - - 62.3 Subtotal Tubewells, Service Reservoirs, Disinfection, Mechanica 89.5 346.6 339.5 71.1 - 846.6 Total 176.5 642.5 823.5 418.3 146.1 2,206.9 ______Page 1 Appendix 5 India Bihar Urban Development Project (BUDP) Table 12. Water Supply - Gaya Detailed Costs Base Cost (Rupees Million) 2009 2010 2011 2012 2013 Total I. Investment Costs A. Distribution System including Metering 1. Leakage Removal, service line replacement and UFW asses MDPE pipe 15mm for Service Line replacement 0.1 0.2 0.2 - - 0.5 Connection Shifting 0.4 1.1 1.0 - - 2.5 Removal of Visible Leakages 0.0 0.1 0.1 - - 0.3 Leak Detection and Leak Removal 0.1 0.3 0.3 - - 0.8 Subtotal Leakage Removal, service line replacement and UFW 0.6 1.8 1.6 - - 4.0 2. Distribution System Supply of uPVC / MDPE 100 mm dia pipe 0.4 1.2 1.1 - - 2.8 Spaghetti connection for sub lanes having bunches of service lin 0.2 0.5 0.5 - - 1.2 Supply of uPVC / MDPE pipe 150 mm dia 0.5 1.4 1.2 - - 3.0 Supply of DI pipe K7200mm Dia 1.5 4.5 4.0 - - 10.1 Supply of DI pipe K7 250 mm dia 3.2 9.5 8.5 - - 21.2 Supply of DI pipe K7 300 mm dia 1.8 5.5 4.9 - - 12.2 Supply of DI pipe 350 mm dia 1.3 3.8 3.4 - - 8.5 Supply of DI pipe K7 400 mm dia 0.9 2.6 2.3 - - 5.8 Add 50% for excavation, appurtenances, road repairs etc (lumps 4.9 14.6 13.0 - - 32.4 Subtotal Distribution System 14.6 43.7 38.9 - - 97.2 3. Rising Main Tubewell to OHSRs Rising Main Tubewell to OHSRs 1.4 4.3 3.9 - - 9.7 4. Bulk Flow Meters Sup and Installation of full bore electro magnetic meter with tran 0.5 1.6 1.4 - - 3.5 5. Consumer Meters Domestic Water Meters - 15mm size - - 1.8 12.5 3.6 17.9 Dometic Water Meters - 15 mm size - - 4.8 28.7 14.3 47.8 Domestic Water Meters - 20mm size - - 0.3 1.9 0.6 2.8 Subtotal Consumer Meters - - 6.8 43.2 18.5 68.5 6. House Connections House Service Connections - - 0.6 4.5 1.3 6.4 Subtotal Distribution System including Metering 17.2 51.5 53.2 47.6 19.8 189.2 B. Service Reservoirs, Chlorination and Mechanical and Electrica 1. Construction of OHSRs RCC OHSR at 20 metre staging with vertical pipes 5.3 15.8 - - - 21.0 Repair of Existing Reservoirs 0.3 0.8 - - - 1.0 Subtotal Construction of OHSRs 5.5 16.5 - - - 22.0 2. Disinfection of Water and Laboratory Gas Chlorination System, vaccum regulator complete with contr 0.1 0.4 - - - 0.5 Gas Chlorination System, vaccum regulator complete with contr 0.7 2.2 - - - 2.9 Toner 900 Kg 0.1 0.2 - - - 0.2 Cylinders 0.3 0.8 - - - 1.0 Chlorinator Room at 6 places 0.6 1.7 - - - 2.3 Chlorinator room at Mangla Hill 0.0 0.1 - - - 0.2 Laboratory 0.1 0.3 - - - 0.4 Subtotal Disinfection of Water and Laboratory 1.9 5.6 - - - 7.5 3. Replacement of Inefficient Machinery and revamping of Elec Efficiency test of tubewells and energy audit of old pumps - 0.0 - - - 0.0 Revamp of Electrical System of all tubewells - 1.2 0.3 - - 1.5 Repair of mechanical equipment, NRV, Valves, piping - 0.4 0.1 - - 0.5 Transformer, Pumps etc - 4.0 1.0 - - 5.0 SCADA System - 8.0 2.0 - - 10.0 Subtotal Replacement of Inefficient Machinery and revamping - 13.6 3.4 - - 17.0 Subtotal Service Reservoirs, Chlorination and Mechanical and El 7.4 35.7 3.4 - - 46.5 Total 24.5 87.2 56.6 47.6 19.8 235.7 ______ Page 2 IndiaAppendix 5 Bihar Urban Development Project (BUDP) Table 21. Sewerage and Sanitation - Patna Detailed Costs Base Cost (Rupees Million) 2009 2010 2011 2012 2013 Total I. Investment Costs A. Construction of Sewerage for South West Zone in Patna inclu 1. Proposed New Sewer Network Lateral / Main Sewer RCCNP3 250-300 dia 44.7 80.5 98.4 62.6 11.9 298.2 Main Sewer RCC NP3 350-600 dia 20.1 36.1 44.2 28.1 5.4 133.9 Maind Sewer RCC NP3 700-900 dia 13.1 23.5 28.8 18.3 3.5 87.2 Main Sewer RCC NP3 1000-1200 dia 14.1 25.3 30.9 19.7 3.7 93.7 House Connection uPVC 140 dia - - 43.0 100.2 - 143.2 House connection inside premises) - - 4.8 11.2 - 16.0 Road Restoration - Lateral / Main Sewer 13.0 23.4 28.6 18.2 3.5 86.6 Road Restoration - Main Sewer 5.0 9.0 11.0 7.0 1.3 33.5 Road Restoration - Main Sewer 2.8 5.0 6.1 3.9 0.7 18.5 Road Restoration - Main Sewer 2.5 4.5 5.5 3.5 0.7 16.5 Road Restoration - House Connection - - 2.1 4.8 - 6.9 Subtotal Proposed New Sewer Network 115.2 207.4 303.3 277.5 30.7 934.1 2. Rehabilitation of existing Transmission Main CI pipe 300-600 dia 0.1 0.2 0.2 0.1 0.0 0.7 CI/RCC NP3 pipe - 700-900 dia 1.7 3.0 3.7 2.3 0.4 11.1 RCC NP3 pipe - 1000-1200 dia 0.9 1.7 2.0 1.3 0.2 6.2 Road Restoration 0.7 1.2 1.5 1.0 0.2 4.5 Subtotal Rehabilitation of existing Transmission Main 3.4 6.1 7.4 4.7 0.9 22.5 Subtotal Construction of Sewerage for South West Zone in Patn 118.6 213.4 310.7 282.3 31.6 956.6 B. Construction of New STP and Repair, Renovation and Augme 1. Augmentation of existin Beur STP from Primary to Second Civil works 5.8 12.8 20.4 16.9 2.3 58.3 Electrical and Mechanical works 5.0 10.9 17.4 14.4 2.0 49.7 Subtotal Augmentation of existin Beur STP from Primary to S 10.8 23.8 37.8 31.3 4.3 108.0 2. Construction of additional 10 Mld STP at Beur Civil works 6.2 13.6 21.6 17.9 2.5 61.6 Electrical and Mechanical 4.8 10.6 16.9 14.0 1.9 48.4 Subtotal Construction of additional 10 Mld STP at Beur 11.0 24.2 38.5 31.9 4.4 110.0 Subtotal Construction of New STP and Repair, Renovation and 21.8 48.0 76.3 63.2 8.7 218.0 C. Construction of new Sewage Pumping Station and Rehabilita 1. Intermediate PS Civil Works - 3.2 7.2 5.6 - 15.9 Mechanical works - 2.5 5.7 4.4 - 12.7 Electrical works - 1.4 3.1 2.4 - 6.8 Subtotal Intermediate PS - 7.1 15.9 12.4 - 35.4 2. Rehabilitation of existing sewage pumping stations Civil works - 1.0 2.2 1.7 - 5.0 Mechanical works - 1.4 3.1 2.4 - 7.0 Electrical works - 0.9 2.1 1.6 - 4.6 Subtotal Rehabilitation of existing sewage pumping stations - 3.3 7.5 5.8 - 16.6 Subtotal Construction of new Sewage Pumping Station and Reh - 10.4 23.4 18.2 - 52.0 D. Renovation and Repair of Existing STPs at Pahari and Saidpu 1. Pahari Sewage Treatment Plant Construction of effluent sewer RCC NP3 800 dia 2.6 6.3 1.6 - - 10.5 Renovation of Electrical & Mechanical Equipment 2.5 6.0 1.5 - - 10.0 Repair of existing pump house, office bldg and other civil works 1.0 2.3 0.6 - - 3.9 Subtotal Pahari Sewage Treatment Plant 6.1 14.6 3.7 - - 24.4 2. Replacement of pump motors and rehab of digester - Saidp Civil works 0.3 0.6 0.2 - - 1.0 Mechanical works 1.6 4.0 1.0 - - 6.6 Electrical works 0.6 1.5 0.4 - - 2.5 Subtotal Replacement of pump motors and rehab of digester 2.5 6.1 1.5 - - 10.1 Subtotal Renovation and Repair of Existing STPs at Pahari and 8.6 20.7 5.2 - - 34.5 Total 149.0 292.5 415.6 363.7 40.3 1,261.1 ______Page 3 Appendix 5 India Bihar Urban Development Project (BUDP) Table 41. Slum Improvement in Patna Detailed Costs Base Cost (Rupees Million) 2009 2010 2011 2012 2013 Total I. Investment Costs A. Infrastructure Roads 0.8 7.3 0.0 0.0 0.0 8.1 Drains 0.0 0.4 0.0 0.0 0.0 0.5 Water Pipelines 0.2 1.5 0.0 0.0 0.0 1.6 Sewer Pipelines 0.3 2.6 0.0 0.0 0.0 2.8 Water Service Connections 0.1 0.8 0.0 0.0 0.0 0.8 House Repairs 3.5 31.7 0.0 0.0 0.0 35.2 Only Toilet 0.1 1.3 0.0 0.0 0.0 1.4 Toilet and Bath 0.1 0.9 0.0 0.0 0.0 1.0 Street Lights 0.1 0.5 0.0 0.0 0.0 0.5 Community Toilets 0.5 4.8 0.0 0.0 0.0 5.3 Public Taps 0.0 0.0 0.0 0.0 0.0 0.0 Individual Septic Tank 1.2 10.8 0.0 0.0 0.0 12.0 Community Septic Tanks 0.0 0.4 0.0 0.0 0.0 0.4 Total 7.0 62.8 0.0 0.0 0.0 69.8 Page 4 Appendix 5 India Bihar Urban Development Project (BUDP) Table 42. Slum Improvement in Gaya Detailed Costs Base Cost (Rupees Million) 2009 2010 2011 2012 2013 Total I. Investment Costs A. Infrastructure Roads 0.7 6.1 0.0 0.0 0.0 6.7 Drains 0.0 0.4 0.0 0.0 0.0 0.4 Water Pipelines 0.1 1.2 0.0 0.0 0.0 1.3 Sewer Pipelines 0.2 2.1 0.0 0.0 0.0 2.4 Water Service Connections 0.0 0.4 0.0 0.0 0.0 0.4 House Repairs 2.9 26.3 0.0 0.0 0.0 29.3 Only Toilet 0.1 1.1 0.0 0.0 0.0 1.2 Toilet and Bath 0.1 0.8 0.0 0.0 0.0 0.9 Street Lights 0.0 0.4 0.0 0.0 0.0 0.5 Community Toilets 0.4 4.0 0.0 0.0 0.0 4.4 Public Taps 0.0 0.0 0.0 0.0 0.0 0.0 Individual Septic Tank 1.0 9.0 0.0 0.0 0.0 10.0 Community Septic Tanks 0.1 0.9 0.0 0.0 0.0 1.0 Total 5.8 52.6 0.0 0.0 0.0 58.4 Page 5 Appendix 5 India Bihar Urban Development Project (BUDP) Table 51. Implementation Assistance - DSC Detailed Costs Base Cost (Rupees Million) 2009 2010 2011 2012 2013 Total I. Investment Costs A. Fees and Remuneration Team Leader 3.6 3.6 3.6 3.6 3.6 18.0 Procurement Specialist 2.7 1.6 0.8 0.0 0.0 5.2 Water Supply Specialist 3.3 4.6 0.0 0.0 0.0 7.9 Sewage and Sanitation Specialist 2.4 2.4 0.0 0.0 0.0 4.8 Solid Waste Management Specialist 1.3 1.3 0.0 0.0 0.0 2.6 Drainage Specialist 2.4 2.4 0.0 0.0 0.0 4.8 Resettlement Specialist 1.7 1.7 1.7 1.7 1.7 8.7 Social Development Specialist 1.7 1.7 1.7 1.7 1.7 8.7 Environment Specialist 0.9 0.9 0.9 0.9 0.9 4.4 Construction - Manager 2.5 3.0 3.0 3.0 3.0 14.5 Sewage Treatment Plant Specialist 0.8 0.8 0.0 0.8 0.0 2.5 Electrical Engineer 1.1 1.1 0.5 0.5 0.5 3.8 Mechanical Engineer 1.1 1.1 0.5 0.5 0.5 3.8 Structural Engineer 1.6 1.6 0.0 0.0 0.0 3.3 Senior Quantity Surveyor 3.9 3.9 0.0 0.0 2.0 9.8 Design Engineers 5.4 5.4 0.0 0.0 0.0 10.8 Construction Engineers 13.1 21.8 21.8 13.1 6.6 76.4 Draftsperson 2.4 2.4 0.8 0.8 0.8 7.1 Support Staff 1.2 1.2 1.2 1.2 1.2 5.9 Subtotal Fees and Remuneration 53.2 62.7 36.7 27.9 22.5 203.0 B. Expenses Air Travel - Domestic 0.2 0.2 0.2 0.2 0.2 1.0 Office Equipment 3.9 0.0 0.0 0.0 0.0 3.9 Vehicle Expenses 1.0 1.0 1.0 1.0 1.0 4.9 Communication 0.1 0.1 0.1 0.1 0.1 0.6 Reimbursable Expenses 0.7 0.7 0.7 0.7 0.7 3.5 Reports 0.2 0.2 0.2 0.2 0.2 1.0 Subtotal Expenses 6.1 2.2 2.2 2.2 2.2 14.9 C. Provisional Sum Surveys, analysis of samples etc 0.8 0.8 0.8 0.8 0.8 3.9 Total 60.0 65.6 39.7 30.9 25.5 221.8 Page 6 Appendix 5 India Bihar Urban Development Project (BUDP) Table 52. Implementation Assistance - Program Management Consultants Detailed Costs Base Cost (Rupees Million) 2009 2010 2011 2012 2013 Total I. Investment Costs A. Fees and Remuneration Team Leader / Project Management Specialist 3.6 3.6 3.6 3.6 3.6 18.0 Procurement Specialist 1.4 0.8 0.8 - - 3.0 Urban Governance and Institution Specialist 1.3 0.7 - - - 2.0 Water Supply Specialist 1.3 0.7 - - - 2.0 Sewerage and Sanitation Specialist 1.3 0.7 - - - 2.0 Solid Waste Management Specialist 0.7 0.7 - - - 1.3 Finance and Accounts Specialist 3.0 3.0 3.0 3.0 3.0 15.0 Resettlement and Social Development Specialist 1.3 1.3 1.3 - - 3.9 Environmental Management Specialist 0.7 0.7 0.7 0.7 0.7 3.3 Legal Advisor 0.7 0.7 0.7 - - 2.0 Public Relations and Awareness Specialist 0.6 0.6 0.6 0.4 0.4 2.5 Support Staff 0.7 0.7 0.7 0.7 0.7 3.5 Subtotal Fees and Remuneration 16.5 14.0 11.4 8.4 8.4 58.5 B. Expenses Air Travel - Domestic 0.2 0.2 0.2 0.2 0.2 0.9 Office Equipment 2.0 ----2.0 Vehicle Expenses 0.7 0.7 0.7 0.7 0.7 3.7 Communication 0.1 0.1 0.1 0.1 0.1 0.6 Reimbursable Expenses 0.5 0.5 0.5 0.5 0.5 2.3 Reports 0.2 0.2 0.2 0.2 0.2 1.0 Subtotal Expenses 3.7 1.7 1.7 1.7 1.7 10.5 Total 20.1 15.7 13.1 10.1 10.1 69.0 Page 7 Appendix 5 India Bihar Urban Development Project (BUDP) Table 53. BME Consultants Detailed Costs Base Cost (Rupees Million) 2009 2010 2011 2012 2013 Total I. Investment Costs A. Professional Fees Team Leader and BME Specialist 0.8 0.8 0.8 0.8 0.8 3.9 Social Development Specialist 0.5 0.5 0.5 0.5 0.5 2.6 Environment Specialist 0.5 0.5 0.5 0.5 0.5 2.6 Subtotal Professional Fees 1.8 1.8 1.8 1.8 1.8 9.2 B. Expenses Travel Expenses 0.1 0.1 0.1 0.1 0.1 0.4 Conveyance Expenses 0.0 0.0 0.0 0.0 0.0 0.2 Communication 0.0 0.0 0.0 0.0 0.0 0.1 Reimbursable Expenses 0.0 0.0 0.0 0.0 0.0 0.1 Report Expenses 0.0 0.0 0.0 0.0 0.0 0.0 Survey Expenses 0.0 0.0 0.0 0.0 0.0 0.2 Subtotal Expenses 0.2 0.2 0.2 0.2 0.2 1.0 Total 2.0 2.0 2.0 2.0 2.0 10.2 Page 8 Appendix 5 India Bihar Urban Development Project (BUDP) Table 54. Slum Policy and Study Detailed Costs Base Cost (Rupees Million) 2009 2010 2011 2012 2013 Total I. Investment Costs A. Professional Fees Team Leader and Social Specialist - 2.9 2.9 - - 5.9 Infrastructure Specialist - 1.0 1.0 - - 2.0 Environment Specialist - 1.0 1.0 - - 2.0 Urban Planner - 1.0 1.0 - - 2.0 Technical and Support Staff - 0.6 0.6 - - 1.2 Subtotal Professional Fees - 6.5 6.5 - - 13.0 B. Expenses Travel Expenses - 0.1 0.1 - - 0.3 Conveyance Expenses - 0.2 0.2 - - 0.5 Communication - 0.1 0.1 - - 0.2 Reimbursable Expenses - 0.1 0.1 - - 0.2 Report Expenses - 0.3 0.3 - - 0.6 Survey Expenses - 0.3 0.3 - - 0.6 Total - 7.6 7.6 - - 15.3 Page 9 Appendix 5 India Bihar Urban Development Project (BUDP) Table 55. Implementing NGO Detailed Costs Base Cost (Rupees Million) 2009 2010 2011 2012 2013 Total 2009 I. Investment Costs A. Professional Fees NGO Cost 1.0 1.0 1.0 1.0 1.0 5.0 1.1 Total 1.0 1.0 1.0 1.0 1.0 5.0 1.1 Page 10 Appendix 5 India Bihar Urban Development Project (BUDP) Table 56. Source Augmentation Study - Gaya Detailed Costs Base Cost (Rupees Million) 2009 2010 2011 2012 2013 Total I. Investment Costs A. Professional Fees Study Cost - 3.5 - - - 3.5 Total - 3.5 - - - 3.5 Page 11 Appendix 5 India Bihar Urban Development Project (BUDP) Table 61. Incremental Administration - PMU Detailed Costs Base Cost (Rupees Million) 2009 2010 2011 2012 2013 Total I. Investment Costs A. PMU Salaries / Remuneration Project Director 0.9 0.9 0.9 0.9 0.9 4.6 Deputy Project Director 0.6 0.6 0.6 0.6 0.6 3.0 Project Manager - Water Supply 0.6 0.6 0.6 0.6 0.6 3.0 Project Manager - Sewerage and Sanitation 0.6 0.6 0.6 0.6 0.6 3.0 Finance and Accounts Manager 0.6 0.6 0.6 0.6 0.6 3.0 Environmental Management Specialist 0.6 0.6 0.6 0.6 0.6 3.0 Social Development Specialist 0.2 0.2 0.2 0.2 0.2 1.2 Resettlement Specialist 0.2 0.2 0.2 0.2 0.2 1.2 Administrative Officer 0.5 0.5 0.5 0.5 0.5 2.4 Accountant 0.5 0.5 0.5 0.5 0.5 2.4 Secretary 0.3 0.3 0.3 0.3 0.3 1.5 Receptionist 0.1 0.1 0.1 0.1 0.1 0.6 Office Boy 0.5 0.5 0.5 0.5 0.5 2.7 Subtotal PMU Salaries / Remuneration 6.4 6.4 6.4 6.4 6.4 31.9 B. PMU - Expenses Office Rent 0.7 0.7 0.7 0.7 0.7 3.5 Office Equipment 1.2 0.0 0.0 0.0 0.0 1.2 Vehicle Expenses 1.7 1.7 1.7 1.7 1.7 8.4 Public Relation Materials 0.1 0.1 0.1 0.1 0.1 0.5 Communication 0.2 0.2 0.2 0.2 0.2 1.2 Office Expenses 0.5 0.5 0.5 0.5 0.5 2.3 Subtotal PMU - Expenses 4.4 3.2 3.2 3.2 3.2 17.1 C. Contingency Provision For Unanticipated Impacts (Structures and Land) 0.8 0.8 0.8 0.8 0.8 3.9 Total 11.5 10.4 10.4 10.4 10.4 52.9 Page 12 Appendix 5 India Bihar Urban Development Project (BUDP) Table 62. Icremental Administration - PIUs Detailed Costs Base Cost (Rupees Million) 2009 2010 2011 2012 2013 Total I. Investment Costs A. PIU Salaries / Remuneration Superintending Engineer - Project Manager 0.5 0.5 0.5 0.5 0.5 2.7 Executive Engineer Sewerage 0.5 0.5 0.5 0.5 0.5 2.4 Executive Engineer Water 1.0 1.0 1.0 1.0 1.0 4.9 Assistant Engineers 3.7 3.7 3.7 3.7 3.7 18.3 Accounts Officer 0.7 0.7 0.7 0.7 0.7 3.7 Public Relation Officer 0.6 0.6 0.6 0.6 0.6 3.0 Accountant 0.7 0.7 0.7 0.7 0.7 3.7 Secretary 0.3 0.3 0.3 0.3 0.3 1.5 Assistants 0.9 0.9 0.9 0.9 0.9 4.3 Office Boy 0.7 0.7 0.7 0.7 0.7 3.7 Subtotal PIU Salaries / Remuneration 9.6 9.6 9.6 9.6 9.6 48.1 B. PIU - Expenses Office Rent 1.4 1.4 1.4 1.4 1.4 7.0 Office Equipment 2.3 0.0 0.0 0.0 0.0 2.3 Vehicle Expenses 2.2 2.2 2.2 2.2 2.2 11.2 Communication 0.2 0.2 0.2 0.2 0.2 1.2 Office Expenses 0.9 0.9 0.9 0.9 0.9 4.7 Subtotal PIU - Expenses 7.2 4.8 4.8 4.8 4.8 26.4 Total 16.8 14.4 14.4 14.4 14.4 74.5 Page 13 Appendix 5 India Bihar Urban Development Project (BUDP) Table 71. Institutional Development Detailed Costs Base Cost (Rupees Million) 2009 2010 2011 2012 2013 Total I. Investment Costs A. Institutional Development - UDD, PMU, PIUs and ULBs Cap Bld - Implementation and Maint of Assets 0.5 0.5 - - - 0.9 Cap Bldg for implementation of WS, WSS and Drainage Projec 0.2 0.2 - - - 0.4 Cap Bldg for Implementation and Maint of Roads 0.5 0.5 - - - 0.9 Sensitisation Program - MCs and Local Organisations 0.5 0.5 - - - 1.0 Seminar / Workshop - Councillors 0.2 0.2 - - - 0.4 Seminar / Workshop - Municipal Staff and Ward Comm. Memb 0.2 0.2 - - - 0.4 Cap Bldg - UlBs - Gen Mgmt, Fin Mgmt, O&M etc 1.8 1.8 - - - 3.6 Special Training Program for Municipal Accountants 0.8 0.8 - - - 1.5 Cap Bldg - to Improve Ability to manage PSP 0.8 0.8 - - - 1.5 Water Utility Management Reform 0.2 0.2 - - - 0.3 Senitisation Program for Implementing Agencies 0.2 0.2 - - - 0.4 Implementation Support Workshop 0.1 0.1 - - - 0.2 Solid Waste Management Awareness Program and Support 5.0 5.0 - - - 10.0 Exposure and Exchange Visits to Other States 2.7 2.7 - - - 5.3 Hardware and Software Costs 3.5 3.5 - - - 7.0 Subtotal Institutional Development - UDD, PMU, PIUs and ULB 16.9 16.9 - - - 33.8 B. Training Needs Assessment Training Specialist - 12 months 1.5 1.5 - - - 3.0 Personnel Management Specialist 1.3 1.3 - - - 2.5 Communication Specialist 1.3 1.3 - - - 2.5 Information Technology Specialist 1.6 1.6 - - - 3.2 Expenses 1.4 1.4 - - - 2.8 Subtotal Training Needs Assessment 7.0 7.0 - - - 14.0 Total 23.9 23.9 - - - 47.8 Page 14 BUDP Main Report Appendices Appendix 6: Summary Poverty Reduction and Social Strategy – Draft Country/Project Title: India/Bihar Urban Development Project Lending/Financing Project/Sector/Multitrache Financing Facility/ Policy- Department/ Modality: Based, Others (please specify) Division: I. POVERTY ANALYSIS AND STRATEGYi A. Linkages to the National Poverty Reduction Strategy and Country Partnership Strategy 1. Based on the country poverty assessment, the country partnership strategy, and the sector analysis, describe how the project would directly or indirectly contribute to poverty reduction and how it is linked to the poverty reduction strategy of the partner country. Investments in urban infrastructure are now known to have positive spin-offs in terms of economic growth and poverty reduction. The proposed Bihar Urban Development Project (BUDP) will improve urban infrastructure and environmental conditions and related social welfare status through improved urban services / environmental benefits of access to safe water and sanitation and improved health (reduction in incidence of waterborne diseases) in one of the least-developed states in India. Direct benefits will be sustained improvements in water, sewerage and sanitation in the project cities in Bihar. The Tenth Five Year Plan of GoI under Goal 7 of MDGs (Improving Environmental Sustainability) articulates the following specific objectives/indicators: (1) Halve the proportion of people without safe drinking water by 2015 and (2) Improve lives of 100 million slum dwellers. The current approach of the Government of India to tackle urban poverty is three pronged: (1) to provide urban poor with housing and infrastructure - this aspect is covered under GoI’s flagship urban development program – the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), which covers 63 urban centres across India, including Patna in Bihar; and UIDSSMT for smaller urban centres e.g. Gaya; (2) As part of JNNURM/UIDSSMT, also to ensure institutional reforms to facilitate decentralization as envisaged in the 74th Constitutional Amendment Act (74th CAA) and to ensure accountability of urban local bodies (ULBs) to citizens; and (3) to facilitate access to livelihoods/ employment through policies like the National Policy for Urban Street Vendors (NPUSV) and programs like Swarna Jayanti Shahari Rozgar Yojana (SJSRY). BUDP focuses on provision of infrastructure services to urban poor in Bihar and complements the stated goals (MDGs) in the Tenth Plan as well as approach 1 of GoI discussed above. Demonstration projects involving direct interventions in environmental infrastructure are proposed in two slums in Patna and 5 slums in Gaya, respectively under the project. Since ~Rs. 2000 million has been sanctioned for basic services for urban poor under Government of India’s JNNURM program for Patna and the city of Gaya has the potential to tap funds available under Government of India’s Integrated Housing and Slum Development Program, the identified need was for demonstration / pilot projects to build ULB capacity in planning and execution of community upgrading projects and use learnings from the same to scale up interventions in all slum areas in the cities, with GoI funds. A baseline socio-economic survey was conducted in slums in the priority cities of Patna and Gaya. The baseline reveals the status of the urban poor in terms of basic service access and will serve as the benchmark against which post-project benefits to the poor can be measured. The primary survey in these two towns under BUDP provides some idea of the levels of service access by the poor in urban areas of Bihar. High dependence on standposts/handpumps for water supply was reported by ~65 percent slum households in Gaya and over 25 percent slum households in Patna. Access to house service connections is reported to be low, with 7 percent households in Gaya and 26 percent households in Patna reporting the same. Besides, there are issues related to water pressure, duration and frequency of supply (evident from Focus Group Discussions with slum communities). Benefits of improved water supply are expected to accrue to the entire population, including the poor. Slum households (estimated to be ~5% and 25% of the total urban population in Gaya and Patna respectively) will benefit from the Project through investments identified for improved water supply systems in the cities. All non-slum poor households (estimated at about 10-15% of the total urban population) will also benefit from proposed improvements to city water supply systems. Overall, very poor levels of access to safe sanitation were recorded, with 76 percent and ~40 percent slum households in Gaya and Patna respectively stating complete lack of access to the same. From the sewerage sub-project component proposed in Patna, direct benefit will accrue to households that will be able to connect to the sewerage network. Provision of a new sewerage network is proposed in the South West zone in Patna, coupled with rehabilitation of existing sewage transmission system and augmentation and rehabilitation of existing sewage treatment facilities. The proposed sewerage networks will reach the boundaries of ~ 9 notified slums (and other non-notified slums) located in the zone, which will enable networking and provision of sewered toilets (individual / community), depending on space availability. There will be direct and indirect benefits to the entire town’s population including the poor, through improved access to sanitation. The community upgrading sub-project is expected to directly benefit all slum households residing in selected 2 and 5 slums in Patna and Gaya respectively, covering an estimated ~900 slum households in Patna and ~550 slum households in Gaya. Through its contribution to capacity building of the ULBs in implementing/managing interventions for the poor, which is also expected to facilitate implementation of similar projects with GoI funding under JNNURM/UIDSSMT, the community upgrading sub-project is likely to indirectly benefit all slum households in the two cities. Direct benefits to the poor from the proposed interventions (city and slum level) will also be from employment to local poor – by giving them priority for unskilled jobs. 159 BUDP Main Report Appendices B. Poverty Analysis Targeting Classification: ______GI______1. Key Issues Bihar is a state with ~32 percent urban population living Below Poverty Line (Economic Survey, 2007). It also has among the lowest per capita income and Human Development Index of states in India. Interventions in overall environmental infrastructure in urban areas in the state through the project will contribute indirectly to development and poverty reduction, while interventions in selected slums will directly contribute to the same. The project will provide impetus to attaining the Millenium Development Goals, especially goals related to MDG 7 “ensuring environmental sustainability” and indirectly to MDG 1 -“poverty reduction”, and MDG 3 – “promote gender equality” though improved access of the poor to safe water and sanitation and providing opportunities for participation to women. The beneficiaries of the project include all households (both poor and non-poor households) residing in project towns. 2. Design Features. Elements such as provision of water and sewerage up to the boundaries of slum areas will permit them to link up with city networks using funds available either under the project for selected slums or Government of India (JNNURM-BUSP/UIDSSMT- IHSDP). Indirect interventions benefiting all slums in the project ULBs coupled with direct interventions in environmental and other urban services in pilot slums are expected to reduce the time taken to collect water, resources and time expended on health care and care-giving and recurring opportunity costs incurred by households for water and sanitation. C. Poverty Impact Analysis for Policy-Based Lending 1. Discuss the impact channels of the policy reform(s) (direct and indirect, short and medium term) to the country and major groups affected. The project shall optimize social and economic development benefits in urban Bihar through support for priority investments in urban infrastructure and services required to meet basic human needs, improve quality of life and stimulate sustainable economic development. The assistance is directed at the cities with the greatest development potential to meet immediate infrastructure service deficiencies and meet future demands for fulfillment of basic human needs, and act as a vehicle through which policy reforms can be executed, and have the maximum demonstration effect for replication in other cities in Bihar. 2. Discuss the impact of the policy reform(s) on vulnerable groups and ways to address it/them (refer to social analysis). Between thirty and forty five percent of slum households in both cities were found to be vulnerable. In terms of reform measures, in particular, financial reforms, tariffs are being structured such that they are affordable to all income groups (<5 percent of monthly income of the poorest households). Consultation and participation with the involvement of NGOs and accessible grievance redress mechanisms and processes are recommended to ensure inclusion of vulnerable groups in the project and incorporate their inputs. The Gender Action Plan shall provide the strategy for inclusion of women at various stages of the project cycle. Unskilled labor work shall be provided to identified poorest/vulnerable households. 3. Discuss how the policy reform(s) contribute(s) to poverty reduction, pro-poor growth, and the MDGs. City-wide interventions shall benefit the poor through improved environmental benefits and access to more and better-quality drinking water from water-supply subprojects; better public health, particularly fewer waterborne diseases through investments in water supply in Patna and Gaya and sewerage in Patna, which will lead to overall economic development and poverty reduction. Slum level (community upgrading) interventions shall directly contribute to poverty reduction and pro-poor growth. Improved access to water supply and toilets shall help meet the MDG 7 of improved environmental sustainability. II. SOCIAL ANALYSIS AND STRATEGY A. Findings of Social Analysis Social analysis was based mainly on primary survey data. The baseline survey in Patna slums revealed a low sex ratio of 831, Work Participation Rate of 24.6 and dependency rate of 3.8; 25% of sample comprised SC population. Over 50 percent of Chief Wage Earners of sample households were illiterate, 35 percent comprise BPL households and 41 percent are LIG households. Sixty three percent live in semi-pucca houses. In terms of service access in Patna slums, only 15 percent reported access to municipal water supply (IWSC and standpost), 27 percent reported access to safe sanitation and almost 40 percent reported open defecation. Only 9 percent households indicated access to metered electricity connections. Of the sample of slum households in Patna, 32 percent of households can be categorized as vulnerable (based on 5 or more of the following criteria: household belongs to backward community, household head is a woman/illiterate/daily wage laborer/disabled, kutcha house, lack of consumer durables, BPL income). The primary survey in Gaya reveals an extremely low sex ratio of 742 and average household size of 7 in city slums. 89 percent of the sample comprised BPL households. Seventy-six percent slum households practice open defecation, only 26 percent have access to IWSC, and only 3 percent have metered electricity connections and 62 percent do not have electricity connections, which indirectly impacts children’s education. Households living in kutcha and semi-pucca houses comprise 35 percent and 42 percent of the sample respectively. Seventy two percent of the sample households in Gaya slums comprise Mahadalits (the 160 BUDP Main Report Appendices lowest castes among SCs) and almost 50 percent of Mahadalit households are vulnerable. Similarly, half of the sample woman- headed households (comprising ~10 percent of the sample) report multiple disadvantages and are vulnerable. Of the total sample, 42 percent of households in Gaya slums can be categorized as vulnerable. Approximately 70 percent slum households in each city indicated preference for individual WSCs, and ~20 percent and ~30 percent households indicated preference for individual toilets with UGD connection in Patna and Gaya respectively. Preference for metered water supply was indicated by 6 percent and 61 percent of households reporting preference for IWSC in Patna and Gaya respectively. B. Consultation and Participation 1. Provide a summary of the consultation and participation process during the project preparation. Stakeholder consultation has been an important element in project development/preparation so far and will continue in subsequent stages. Stakeholders are being consulted in a variety of ways during project preparation – through workshops and discussions with ULB officials, Urban Development Department, GoB and other line agencies, household survey soliciting opinions of households on civic issues for general and slum population, structured Focus Group Discussions with the community and discussions with government officials. In addition, city-level workshops are proposed to be held shortly, wherein district and municipal officials, elected representatives, NGOs and citizens are expected to participate and contribute. Consultations and structured interactions with the community shall inform project identification and prioritization for each city. They will also inform affected people / beneficiaries about project objectives and help understand their needs, priorities and concerns and ensure that local concerns are addressed in project design and thereby gain their support and co-operation during implementation. 2. What level of consultation and participation (C&P) is envisaged during the project implementation and monitoring? Information sharing Consultation Collaborative decision making Empowerment 3. Was a C&P plan prepared? Yes No If a C&P plan was prepared, describe key features and resources provided to implement the plan (including budget, consultant input, etc.). If no, explain why. The strategy for consultation and participation for the project is in sync with the policies of GoI as per the 74th CAA, which envisage community/local level participation through ward committees. The proposed strategy for participation envisages that community mobilization and awareness generation shall be undertaken by local NGOs. The structure of ward committees needs to be such that the poor and disadvantaged, including women are represented. Grievance redressal can be decentralized to ward level to ensure ease of access of the redressal mechanism to the poor and disadvantaged. Participatory monitoring of project progress is envisaged. A budget for NGO and consultant input related to consultation and participation is provided. Regular consultation and participatory monitoring shall help ensure that project elements meet communities’ needs, thereby paving the way for their sustainability. Regarding participation of the poor in particular, discussions with the community revealed the presence of very few Community Based Organizations in the project towns. However, most of the sample poor have been living in the same locality for over 10 years, which points to some level of social networks. As mentioned above, NGO involvement in social mobilization and awareness generation shall be critical for effective participation of the poor. C. Gender and Development 1. Key Issues. Gender related issues are evident from the following secondary data/statistics on urban Bihar: urban female literacy rate of 52.10 percent (lower than national average of 54.16 percent), sex ratio of 921 (versus average of 932 in India), maternal mortality rate of 451 (higher than 407 for India), and the low rank of 25 among all Indian states based on the rate of total cognizable crimes against women. (Economic Survey, GoB, 2006) Key issues in gender relevant to the project identified through the baseline survey and focus group discussions include women’s role in the household as primary care-givers, household level division of labor which makes women primarily responsible for water collection (cited in > 98 percent households surveyed), difficulties faced by women due to lack of access to safe sanitation (cited by > 95 percent women respondents), limited opportunities for women to participate in project design and implementation. 2. Key Actions. Measures included in the design to promote gender equality and women’s empowerment—access to and use of relevant services, resources, assets, or opportunities and participation in decision-making process: Gender plan Other actions/measures No action/measure Summarize key design features of the gender plan or other gender-related actions/measures, including performance targets, monitorable indicators, resource allocation, and implementation arrangements. 161 BUDP Main Report Appendices The strategy for participation focuses on women’s participation, which is expected to maximize beneficial impacts on women. Significant benefits to women are envisaged from investments in water and sanitation, in terms of time savings, improved health of family members and therefore reduced burden on women as care-givers and employment opportunities. Women-headed poor households (~10 percent of the sample in Patna and Gaya) are to be given employment (unskilled labor) generated through the project on priority. Key features of the Gender Action Plan for BUDP include gender-related objectives, specific activities/tasks to achieve the defined objectives, indicators, verification methodology, resource allocation and responsibilities/implementation arrangements. The impact of project proposals on women may be measured post-implementation. Monitoring and evaluation systems will generate gender-disaggregated information to enable tracking of gender implications and impact of the project. III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS Issue Significant/Limited/ Strategy to Address Plan or Other Measures No Impact Issue Included in Design Temporary impacts Involuntary Resettlement Full Plan Short Plan Resettlement Framework No Action No Impact Indigenous Peoples Indigenous Peoplesii Development Framework Plan prepared. Other Action Indigenous Peoples Framework No Action Contractors to give Labor employment (unskilled Employment labor) to poor and Plan opportunities vulnerable local population Other Action Labor retrenchment (identified by NGOs) on No Action Core labor standards priority – this is to be specified in contract documents. The potential negative Affordability impact of water tariff Action increases on the poor is No Action considered acceptable at <5% of HH income, given that on an average, the opportunity cost incurred by such HHs currently ranges between 5 – 5.5% of HH income. Consumption based tariffs will imply higher charges for higher consumption, which will probably be incurred by high income HHs. Other Risks and/or Contracts shall specify that Vulnerabilities child labor – common in Plan HIV/AIDS Bihar - shall not be used in Other Action Human trafficking project implementation. No Action Others(conflict, political instability, etc), please specify IV. MONITORING AND EVALUATION Are social indicators included in the design and monitoring framework to facilitate monitoring of social development activities and/or social impacts during project implementation? □ √ Yes □ No 162 BUDP Main Report Appendices Appendix 7: PMU and PIUs Organization Structure Suggested Orgnaogram for Interim PMU ProjectProject Director Director DeputyDeputy Project Project DirectorDirector (Chief(Chief Engineer) Engineer) TechnicalTechnical ResettlementResettlement & & FinanceFinance and and InstitutionalInstitutional SupportSupport Staff Staff EnvironmentalEnvironmental Officer Officer AdministrationAdministration Project Director, full time – IAS Officer preferably with relevant background. Deputy Project Director, full time – Chief Engineer (senior Superintending Engineer in case of non-availability of a Chief Engineer) preferably with experience in public health engineering works. Technical Support Staff, full time - Executive Engineer. Finance and Administration, full time - Chartered Accountant (CA/MBA-Finance) * Note: Resettlement & Environment Officer and Institutional Officer can be mobilized on a need basis = 163 BUDP Main Report Appendices 164 BUDP Main Report Appendices Appendix 8: Procurement Packages Expected Estimated Completion Procurement Time of Package No Name of Work Cost in Period Method Start of Bid Million Rs Months Invitation Construction of OHSRs, Repair of old OHSRs, Laboratory, NCB Civil PAT/WS/1 Lot 1 Chlorination Rooms, supply and 262.52 July 2009 30 Work installation of chlorinators & bulk flow meters-South West: Construction of OHSRs, Repair of old OHSRs, Laboratory, NCB Civil PAT/WS/1 Lot 2 Chlorination Rooms, supply and 236.30 July 2009 30 Work installation of chlorinators & bulk flow meters-South: Construction of OHSRs, Repair of old OHSRs, Laboratory, NCB Civil PAT/WS/2 Chlorination Rooms, supply and 242.53 July 2010 30 Work installation of chlorinators & bulk flow meters-North Supply laying Jointing and Commissioning Distribution Pipes and Rising Main, leakage repair Item Rate PAT/WS/3 Lot 1 and replacement of service lines, 360.13 NCB Civil Jun 2009 36 Making house connection in Work Lower Income Group houses- South West Supply laying Jointing and Commissioning Distribution Pipes and Rising Main, leakage repair Item Rate PAT/WS/3 Lot 2 and replacement of service lines, 262.48 NCB Civil July 2009 36 Making house connection in Work Lower Income Group houses- South Supply laying Jointing and Commissioning Distribution Pipes and Rising Main, leakage repair Item Rate PAT/WS/4 and replacement of service lines, 254.31 NCB Civil July 2010 36 Making house connection in Work Lower Income Group houses- North Construction of Tube Wells with Pump House, Supply and Item Rate PAT/WS/5 Installation of Pumping Sets and 73.69 NCB Civil July 2009 24 Electrical Equipment in new Tube Work Wells Revamping Mechanical & Item Rate Electrical system including PAT/WS/6 62.30 NCB Civil July 2010 12 replacement of old pumps and Work automation of tube well operation 165 BUDP Main Report Appendices Expected Estimated Completion Procurement Time of Package No Name of Work Cost in Period Method Start of Bid Million Rs Months Invitation Supply and Installation of Consumer Meters including Item Rate ICB PAT/WS/7 Lot 1 172.67 July 2010 24 repairs, meter reading, bill Procurement preparation & bill distribution, Supply and Installation of Consumer Meters including Item Rate ICB PAT/WS/7 Lot 2 172.67 July 2010 24 repairs, meter reading, bill Procurement preparation & bill distribution, Supply and Installation of Item Rate ICB PAT/WS/8 107.25 July 2011 24 Consumer Meters Procurement Sewerage Construction of Sewerage for L1 – 302.7 Southwest Zone in Patna L2 – 280.2 Item rate NCB PAT/SS/01 – 3 including facilities for house L3 – 373.6 Civil work July 2009 lots connection and (in multiple Rehabilitation of existing Total - Lots) transmission lines 956.5 Construction of new STP and Turnkey NCB PAT/SS/02 Repair renovation augmentation 218 July 2009 Civil work of existing STP at Beur Construction of new Sewage Pumping Stations and Item rate NCB PAT/SS/03 52 April 2010 Rehabilitation of existing sewage Civil work pumping stations Renovation and repair of existing Item rate NCB PAT/SS/04 34.5 July 2009 STPs at Pahari and Saidpur Civil work Gaya Construction of OHSRs, Repair of old OHSRs, Laboratory, NCB Civil GAY/WS/1 Chlorination Rooms, supply and 32.99 July 2009 18 Work installation of chlorinators & bulk flow meters: Supply laying Jointing and Commissioning Distribution Item Rate Pipes and Rising Main, leakage GAY/WS/2 117.24 NCB Civil July2009 30 repair and replacement of service Work lines, Making house connection in Lower Income Group houses: Rehabilitation of Mechanical and Item Rate GAY/WS/3 Electrical System of Existing 17.03 NCB Civil Apr 2010 12 Tube Wells and Automation Work Supply and Installation of GAY/WS/4 Lot Consumer Meters including meter Item Rate ICB 50.55 July 2011 18 1 repair, meter reading, bill Procurement preparation, bill distribution GAY/WS/4 Lot Supply and Installation of Item Rate ICB 17.93 July 2011 18 2 Consumer Meters Procurement 166 BUDP Main Report Appendices Expected Estimated Completion Procurement Time of Package No Name of Work Cost in Period Method Start of Bid Million Rs Months Invitation UDD PMC Project Management Consultants 69.0 QCBS January 2009 60 Construction Supervision and DSC 221.8 QCBS January 2009 60 Design Consultants Benefit Monitoring and BMEC 10.2 QCBS July 2009 60 Evaluation Consultants Slum Policy for State and Study Slum 15.3 QCBS January 2010 24 in Patna and Gaya Implementation Support NGO NGO 5.0 QCBS January 2009 60 Ground Water Sustainability GW Study 3.50 SSS Sept 2009 12 Study Training programs to PMU, PIU, Cap Bldg MCs, and other designated 47.8 QCBS July 2009 24 personnel . 167 BUDP Main Report Appendices Appendix 9: Implementation Schedule Packages for Sub-Projects 2009 2010 2011 2012 2013 2014 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 Bihar Urban Development Project Sub-Projects Rehabilitation and Improvement of Water supply - Patna PAT/WS/1 Lot 1 - OHSRs, Chlorination, Bulk Meters - South West PAT/WS/1 Lot 2 - OHSRs, Chlorination, Bulk Meters – South PAT/WS/1 Lot 2 - OHSRs, Chlorination, Bulk Meters – North PAT/WS/3 Lot 1 - Distribution system - South West PAT/WS/3 Lot 2 - Distribution system – South PAT/WS/3 Lot 3 - Distribution system – North PAT/WS/5 – Tubewells PAT/WS/6 - Revamping Mechanical & Electrical PAT/WS/7 Lot 1 - Supply, installation and maintenance – Meters PAT/WS/7 Lot 2 - Supply, installation and maintenance – Meters PAT/WS/8 - Supply and installation of meters Rehabilitation and Improvement of Water supply - Gaya GAY/WS/1 - OHSRs, Chlorination and Bulk Meters GAY/WS/2 - Distribution System GAY/WS/3 - Revamping Mechanical and Electrical GAY/WS/4 Lot 1 - Supply, installation and maintenance – Meters GAY/WS/4 Lot 2 - Supply and installation – Meters Rehabilitation and Improvement of Sewerage – Patna PAT/SS/01 – 3 lots - Rehabilitation & New sewer system PAT/SS/02 - New STP at Beur and Rehab of Existing STP 168 BUDP Main Report Appendices Packages for Sub-Projects 2009 2010 2011 2012 2013 2014 PAT/SS/03 - New Pumping Stations incl rehab of existing PS PAT/SS/04 - Rehabilitation of Pahari and Saidpur STP Part B - Slum Infrastructure PAT/ SI/ 1 - Slum Infrastructure GAY/ SI/ 1 - Slum Infrastructure Part C - Implementation Assistance and Institutional Development PMC DSC BMEC Slum Policy and Study NGO Groundwater Study in Gaya Capacity Building Programs 1 It is presumed that ADB loan will be effected in September 2009 and Selection of Consultants will be completed before loan effectiveness under Bridging TA as advance activity. indicates tendering indicates O&M indicates period period implementation Note: For Package Description please refer Appendix 8 169 BUDP Main Report Appendices Appendix 10: Design and Monitoring Framework Design and Monitoring Framework Data Sources/Reporting Design Summary Performance Targets / indicators Assumptions and Risks Mechanisms Impact: Assumptions: Increased sustainable Increase in per capita real income in the State and National economic Continuing political economic Project towns statistics commitment to urban growth though the infrastructure development and provision of urban Growth in non-primary sector income in Bihar Economic sector reforms. infrastructure and services districts encompassing the Project towns. Review and improved urban Risks: governance and management Increase in investments in industries and Census data (2011) in the towns of Patna and trades. Lack of state or local Gaya in the state of Bihar. Regular data and reports from government commitment to Perception among town residents, and State directorate of economics urban sector reforms. particularly the poor, of improvements in their and statistics. quality of life. Outcome: Assumptions: Improved living environment By End of Project (2013-14): Census Data (2011) Devolution of powers by state 1 million (2013-14) people government to Patna and Gaya living in Patna and Gaya. Increased population coverage of infrastructure The Fourth State Finance Municipal Corporations and services: Commission report Improved capacities of Parallel development will occur • 2 million people with access to municipal participating institutions in in other key sectors including water supply system. Municipal Corporation Annual managing sector reforms and power, and financial • 0.5 million people with access to proper Reports in planning and delivering management sanitation urban infrastructure and • 20 % reduction in the volume of wastewater Project Performance Management services. discharged to water bodies System (PPMS) reports State and Municipal Corporations commitment to Demonstrated capacities of agencies in PMU quarterly progress reports necessary institutional and effective O&M performance of assets financial reforms to improve 170 BUDP Main Report Appendices Data Sources/Reporting Design Summary Performance Targets / indicators Assumptions and Risks Mechanisms including enhanced service delivery through ADB Review Mission reports service delivery cost reduction and management measures. Resettlement and environmental Increased public private partnership. in service external monitoring reports, delivery; State will issue government ADB’s project completion report orders requiring all property owners to connect to the sewerage system. Households will connect to the sewerage system. Sufficient number of experienced consultants and contractors available and willing to work in the State Capacity of participating MCs and urban local bodies enhanced to manage projects Risks: Commitment to reforms and tariff setting protocols Delays in land acquisition and resettlement plans. Outputs Quarterly progress reports Assumptions: Part A: Urban (UDD). PPMS reports (PMU). Infrastructure By End of Project – 2013-14: Commissioning certificates Land transfers and project Disbursement & reimbursement affected persons’ compensation 171 BUDP Main Report Appendices Data Sources/Reporting Design Summary Performance Targets / indicators Assumptions and Risks Mechanisms Improvement Water Supply: records. Departmental Annual agreed and completed before reports. Annual work plans. ADB scheduled construction. Average supply of 150 Ipcd for Patna and 80 Review Mission reports. Project Implemented Project for lpcd for Gaya with adequate pressure with Completion Report water supply. Implemented extended supply hours by end of project Project for underground period. Commitment of project staff. sewerage system and supply At least 85 % of assessed properties connected of sanitation to water supply system in Patna and Gaya. maintenance equipment. Unaccounted-for water reduced to 36% by Timely recruitment of 2014 and to 20% by 2021. implementation assistance Water meters installed for all existing consultants. connections – 160,000 in Patna and 26,000 in Gaya. Appropriate O&M systems are in place. PMU fully staffed with requisite Sewerage: capacity to implement the Project. At least 30 % of assessed properties connected to sewer system. Improvements in waste treatment capacity Timely provision of counterpart from 71 MLD to 119 MLD. funds. Appropriate O&M systems are in place; Different sub project contract conflicts avoided through careful contract management and supervision. Contractors perform competently, to time and budget. 172 BUDP Main Report Appendices Data Sources/Reporting Design Summary Performance Targets / indicators Assumptions and Risks Mechanisms Risks: Overrun of project construction costs and time. Part B: Slum Improvement Increased coverage of EWS under Census reports Assumptions: Infrastructure improvement infrastructure services: in identified slums. 10,200 (6,200 in Patna and about 4,000 in Various reports of the State Political commitment to Gaya) persons, in project slums in Patna and infrastructure development in Gaya, will be benefited by proposed Community consultation the slums. interventions under the Project including construction of Household survey Risks: (i) Roads – 4,053 metres in Patna and 3,369 m in Gaya; Documents/reports of the CBOs Lack of state or local (ii) Drains – 3,165 metres in Patna and 2,631 government commitment to metres in Gaya; social sector reforms. (iii) Water Pipelines – 2,027 metres in Patna and 1,685 metres in Gaya; (iv) Sewer Pipelines – 4,053 metres in Patna and 3,369 m in Gaya; (v) Water Service Connections – 480 numbers in Patna and 399 numbers in Gaya; (vi) Repairs to houses – 480 numbers in Patna and 399 numbers in Gaya; (vii) Only Toilet – 320 numbers in Patna and 266 numbers in Gaya; (viii) Toilet+Bath – 160 numbers in Patna and 133 numbers in Gaya; (ix) Street Lights – 21 numbers in Patna and 18 numbers in Gaya; (x) Community Toilets – 53 numbers in Patna and 44 numbers in Gaya; (xi) Public Taps – 5 numbers in Patna and 4 173 BUDP Main Report Appendices Data Sources/Reporting Design Summary Performance Targets / indicators Assumptions and Risks Mechanisms numbers in Gaya; (xii) Individual Septic Tanks – 480 numbers in Patna and 399 numbers in Gaya; (xiii) Community Septic Tanks – 4 numbers in Patna and 10 in Gaya Part C: Urban Governance Quarterly progress reports Assumptions: and Institutional (UDD). PPMS reports (PMU). Development By January 2011: Institutional reforms to GoB, Implementing match new roles/ responsibilities. Disbursement & reimbursement Agencies and ULBs E-governance and municipal reports. ADB Review Mission commitment to management system in place By January 2011: Staff trained and reports. capacity building. demonstrated abilities to perform management Improved financial and service delivery functions performance inclusive of Public awareness and tariff revisions for municipal By January 2011: GIS created operational in community development services, Improved selected Project towns. Updated database on programs by bringing accounting and Improved municipal services, finances, staff and assets stakeholders into the financial management prepared. Institutional Development systems, procedures and program. practices (including double- By January 2011: Modern accrual based entry accounting systems). accounting system established in the Project urban local bodies. State guidelines on financing Institutional Reform, patterns for infrastructure Knowledge Management and By January 2011: Sewerage and Water charges projects. Capacity Building completed introduced. Risks: By June 2013: Up gradation of water and sewerage charges to the basis of actual Lack of continuity in consumption. commitments to sector reforms 174 BUDP Main Report Appendices Data Sources/Reporting Design Summary Performance Targets / indicators Assumptions and Risks Mechanisms By January 2011 Municipal MIS established at Urban Development Department and in Project ULBs. By January 2011 Major capacity building programs completed. Activities with Milestones Inputs 1. Project Preparation ADB: $100 million 1.1 Sewerage & Drainage and Municipal Solid Waste Management Master Plans By March 2011: GoB: $45 million prepared 2. Implement Subprojects 2.1.Land acquisition completed and resettlement plan implemented (if necessary) By March 2009 2.2 Civil works of contract awarded By September 2011 2.3 Project Consultants Mobilized By April 2009 2.4 Civil works completed By March 2014 2.5 Operation and Maintenance in Selected Components By March 2014 6 Institutional Development and Capacity Building 6.1 Design and implement capacity building and institutional strengthening of UDD, By December 2011 related departments and ULBs • Municipal staff and councilor 175 BUDP Main Report Appendices training curriculum prepared and commenced • Database management packages for UDD and ULBs designed. • Public grievances system in place and operational with ULBs By December 2011: Within budget and of required quality:- • Departmental and Local Body Management information systems operational • Training programs completed • Double entry accounting in place and operational • Streamlined information management systems operational • State and local urban bodies working to new institutional mandates and to new job descriptions. ADB = Asian Development Bank, GoB = Government of Bihar, PPMS= Project Performance Monitoring System, MLD= million liter per day, O&M= operation and maintenance, PMU= Project Management Unit, GIS= Geographic Information System, lpcd = litre per capita per day 176 BUDP Main Report Appendices Appendix 11: Capacity Building (15 Pages) Investment decisions in terms of the sectors covered and likely sub-project have largely been made at one time during the Project preparation phase. In general the capacity building goals are: 1. Ensuring that Urban Development Department (UDD) has adequate project management skills and equipment to handle the up-front investment; 2. Ensuring that UDD and Project Management Unit (PMU) have adequate project management, monitoring and evaluation skills; 3. Providing for sustainability through improving management skills and equipment for service entities responsible for upkeep of the rehabilitated/new assets. The ULBs, as bodies representing different sectors of the community, are, under a system of increasingly devolved governance, to determine criteria for prioritizing small projects, encourage community involvement to propose projects, and select small projects for funding. Over the lifetime of the Project there should be a developing role for them in resource and expenditure planning, determining cost effectiveness of investment options and understanding technical feasibility. This they will be able to do with the help and assistance of the Project Implementation Units during the early stages of the Project, but will need to develop capacities to carry this task out themselves. Under the BUDP the PMU would be the overall executive agency for managing expenditures and disbursing funds. Goals of the capacity building program to include the following: 1. Ensuring understanding of the ADB funding mechanism by a wide range of stakeholders including citizens, NGOs and community groups, the municipalities, and other relevant agencies; 2. Enhancing the ability of municipalities of the project cities to oversee a transparent process of decision-making on investments and corresponding mechanisms for accountability; 3. Enhancing the ability of municipalities to govern effectively, predictably, transparently and accountably; 4. Providing community groups with skills to identify and formulate proposals; 5. Demanding better use of information by ULBs and communities in fostering evidence-based investment decision-making; 6. Demanding greater fiscal discipline and management to ensure the sustainability of assets created; and 7. Providing PMU and PIU staff with necessary procurement and project management skills to oversee the sub-projects. Prior to commencement of actual Project the PMU and PIU staff along with concerned municipality staff need to be imparted with some initial training under the Bridging TA and proposed PPTA on ADB procedures and guidelines for subproject implementation, procurement, financial management and project accounting, etc which will be further strengthened under the BUDP capacity building program. In order to further support the strengthening of ULBs within the framework of the 74th CAA, the project also includes capacity building programs to support the investment components and promote good governance in the substantive areas of town planning and budgeting, municipal finance and revenue generation and general administration, as well as supporting practices that 177 BUDP Main Report Appendices promote transparency and accountability. The Project design recognizes the opportunity to utilize the investments as incentives for introducing changes in how government institutions conduct their operations in order to promote good governance. In this context, the Project also seeks to enhance the opportunities for private sector involvement, through private-public partnerships (PPP). Priority Target Groups Group I 1. Staff of the UDD, PMU, PIUs, Directorate of Local Bodies and other relevant departments/directorates charged with implementation and monitoring and evaluation; 2. Staff of the service entities charged with implementation of schemes and operation and maintenance of assets; Group II 1. Elected functionaries of the urban local governments of the project cities; 2. Engineering, administrative, and accounts staff of the ULBs; 3. Members of Ward Committees; 4. Members of other local committees; While the capacity building programs should be made available for all ULBs, they are proposed to be focused at the 7 Project towns, which have a significant local government workforce. Capacity Building Approach There are 7 guiding principles behind the formulation of this plan that should allow the project to achieve the capacity building goals outlined above. (i) Capacity building relates either to the project management process or to governance practices that are linked to the project design Much of the capacity building relates to requirements of designing, procuring, and performing monitoring and evaluation of the investments. The PMU and PIUs must have sufficient skills and equipment to oversee the investment process, particularly for Component A. Additional capacity building focuses on elements of local governance to enhance the participation and performance of a variety of actors – involved parastatals, municipalities and community groups in particular. Skills gained through capacity-building efforts are retained only when used in practice. The planning and execution of investments under the BUDP provides this practice. (ii) Capacity building must address institutional arrangements for maintenance and operation of rehabilitated/new assets BUDP components will yield new assets that must then be maintained. The municipality having statutory responsibility for providing solid waste management service its capacity needs to be enhanced. In addition the possible role for the private sector in forming PPPs with ULBs in identified sector(s) dictates the nature of capacity building support which will be required. (iii) Providing for information flows within towns is a critical element of capacity building The ability of all stake-holders to understand the investment process and how to pursue their 178 BUDP Main Report Appendices interests in this process is critical to the decision-making process’s legitimacy and effectiveness in terms of meeting local priorities. In communities around the world, vulnerable populations such as women, or youth, tend to be less informed and hence less able to influence decision making. This disempowers the poorer segments of the population. Additional measures are needed to convey information to citizens. (iv) Animation of community groups should embrace more than ward committees An essential feature of the capacity building program for the ULB’s, will be involvement of non- profit and voluntary organizations. Representatives of these NGOs should participate in the training courses as well as the exposure visits (see Table). These NGOs and other community and neighbourhood based associations could play a crucial role in: (i) awareness creation, information dissemination and public education; (ii) complementing and supplementing the efforts of the ULB in activities like garbage collection and street beautification/cleanliness; (iii) slum improvement, poverty alleviation, water supply and sanitation schemes, (iv) planning exercises and project formulation at the ward levels; and (v) monitoring of sub projects and services. (v) A cadre of local specialists and facilitators shall be developed to provide ongoing assistance There are several parties who will need ongoing capacity building and support over the life of the project: (i) ULB staff and community groups on project identification and management, (ii) municipal councilors and municipal staff members on strategic planning, and governance requirements related to property and financial management, and (iii) the state government, parastatal and ULB staff. The project will need to invest in the development of staff, consultants, and implementation partners who are able to provide these services on a regular basis in a cost effective manner. This will require a significant training of trainers/facilitators program and the retention of either project staff or sub-contractors to sustain the capacity building activities that are provided on a regular basis to citizens participating in the project. Particular attention and care needs to be paid to providing sound capacity building on governance issues in Bihar’s legal and practical context for municipalities, utility providers, and citizens. Designing capacity building to improve municipal property management and financial management will be complex. Effecting changes in approaches to operation of utilities and services which will be responsible for maintaining new and rehabilitated assets (particularly in the water and wastewater sectors) will also require significant effort. Ideally such assistance would be provided on a long-term, ongoing basis. However, often the financial constraints for the capacity building component do not allow for this. (vi) Local specialists and facilitators shall mentor local beneficiaries on project management The PMU will have a cadre of staff, local consultants, and/ or implementing partners to help municipalities, and community groups perform their roles in the implementation of sub-projects. Part of the role of these specialists/facilitators shall be to mentor their counterparts on project management in order to minimize the need for intervention by the PMU or PIUs over the life of the project. (vii) Peer exchanges are a key element for reinforcing good practices in project management and governance The most effective transfer of good practice occurs when officials and citizens see their peers operating under similar circumstances able to achieve results, and can learn from the experience of others working under similar constraints. Further, often solutions to problems are more easily 179 BUDP Main Report Appendices found through collegial discussion of peers rather than through technical assistance or other interventions from outside parties (e.g. donors or the central government). Such peer exchanges will be organized separately for project implementation staff of PMU and PIUs; representatives of the municipalities; heads and staff of local service entities charged with maintenance of assets; and for community groups engaged in project implementation. Exchanges are to occur either on a semi-annual basis or as determined necessary or valuable by the PMU. Building horizontal linkages provides a basis for communication to address problems and/or engage in new practices which maybe outside and beyond the project scope. An institutional basis for these peer exchanges shall be developed in order to provide for continuity and development of ideas and practices. The exchanges should not result in a biannual repetition of the same topics related to implementation of the project. Part of the first exchange will involve the establishment of a secretary and working committee to both capture highlights of the exchange and to prepare for future exchanges. The program of such visits should include cities of established good practice such as: Hyderabad and Vijayawada in Andhra Pradesh (e-governance and solid waste management), Bangalore in Karnataka (local government reform, water sector reform and property tax), Tirupur, Erode and Coimbatore in Tamil Nadu (local government reform), and one small municipality each in Maharashtra, Gujarat and Kerala (reform-oriented small-towns). This program would afford exposure to: (i) good management systems and practices, including financial management, in ULB’s; (ii) effective use of IT-enabled e-governance applications in management and citizens interface; (iii) effective operationalization of key positions of the 74th CAA; (iv) improved solid wastes management systems; (v) municipal management of water supply and sewerage systems; (vi) Property Tax reform; and (vii) Transparency, predictability and accountability in municipal governance. Sequence of Activities The sequence of activities follows the timing for the identification, procurement, and implementation of investments under the two investment components, including the “stand- alone” capacity building component. The details of each of the activities, including preliminary indications of target groups, providers, specific approaches, timing, and cost estimates are indicated in this note, and will be further detailed and elaborated as part of the proposed PPTA. The proposed PPTA will also carry out preliminary priority capacity building of key staff to support Project start up. The sequence assumes that there is little turnover in key target groups. In the event of significant turnover, funds will need to be directed at training replacements. Furthermore it is anticipated that some of the capacity building program can be supported by other donors active in the sector through parallel financing arrangements. Wherever possible, the training activities will be sequenced in such a way as to ensure that skills learnt can be applied as soon as trainees return to their jobs. “Just-in-time” training is crucial in ensuring that skills learnt are applied in the workplace and thus that the benefits of the training are realized. Management of the Capacity Building Program The capacity building program forms part of Component C of the project and will fall under the overall management of the PMU, and will be further detailed and carried out with the assistance first of the PPTA consultants and thereafter of the Project Management Consultants (PMC) to the PMU. 180 BUDP Main Report Appendices Specific Highlights of the Capacity Building Program The capacity building components which support project implementation and management under Component A will be linked closely to the activities of the PMC who will be hired to provide overall project management support to the PMU. There will be close linkages between the training carried out on project implementation activities and on-the-job training provided as an integral part of the PMC and Design and Supervision (DSC) consultant’s activities. The largest group of sub-components under project component A, is those directed at the improvement and provision of water supply, sewerage and sewage treatment. This process will require substantial capacity building for the staff of BRJP and ULBs who will eventually be responsible for the management and operation of the assets created, and introducing new management systems as part of the water and sewerage sector utility reform program. This program should include training for the introduction of volumetric charging for water, following the proposed metering programs and the introduction of integrated water and sewerage charges. In order to ensure that the investment in improved collection and disposal services translates into a significantly improved service and better protection for the environment, a significant amount of specialist training will be required. Capacity building will also be provided to assist municipalities in determining the best institutional arrangements for the provision of the solid waste management service. Other Key areas for Capacity Building of Local Government Units Municipal Management, Budgeting and Strategic Planning This initiative is essential for providing continuous assistance to the municipalities. The objectives being: (i) Greater public participation in local governance issues through increased public awareness on municipal affairs. (ii) Strengthening institutional capacity of municipalities through improved strategic vision and performance of municipal organs. The mechanisms to be adopted are: (iii) Organizing public hearings, open doors, community round-table discussions and other forms of regular reporting to and consultations with the public. (iv) Conducting trainings and seminars for municipal councilors and members of Ward Committees. (v) Facilitate creation of municipal strategy and plan in the targeted municipalities. (vi) Promote linkages between targeted municipalities, and other municipal organs in the country through cross-visits, forums, etc. (vii) Organization of TV or radio programs and/or newspaper publications related to municipal affairs. (viii) Promote volunteerism by identifying and training a number of municipal interns and volunteers. (ix) Formulate municipal performance indicators/benchmarks. It is proposed that the capacity building program support these activities in the project towns through the adoption of a similar methodology, and particularly (in coordination with the strengthening of municipal finance and revenue generation – see below) assisting the towns in the formulation of their own municipal strategic investment plan: 181 BUDP Main Report Appendices (i) Develop municipal strategy guidelines incorporating experience of other agencies in integrated strategic planning and realities of the specific geographic and institutional environment. (ii) Design and install municipal software in the targeted municipalities (or, where this is provided through existing GoB programs, support maximization of use of this equipment). (iii) Support and monitor communities in formulating and implementing a number of community micro-projects. (iv) Hold a conference with involvement of government institutions and a wide range of practitioners representing local and international expertise in the field of public/municipal management. It is hoped that this investment would (i) deliver improvement of municipal service delivery; and (ii) Further the development of municipal performance / benchmarking practice. Municipal Financial Management and Revenue Generation Enhanced recognition of the municipalities as legitimate and important local self- government institutions (74th Constitution Amendment), and heightening the status of these institutions, requires transfer of financial resources, including restructuring of tax collection responsibilities from the State. It also requires on-the-job experience with planning, implementing and managing the full range of social infrastructure components of a typical urban area. The immediate objectives of the following initiatives would be to raise the existing revenue and resource base of the municipalities through tax and non-tax resources to enable then to provide improved municipal services to their citizens, and move towards greater financial sustainability. The programs would include training and assistance in: (i) development of an Integrated Financial Management System including budgeting, cost recovery mechanism, municipal accounts, MIS etc, and training (building on work already being undertaken by UDD of GoB); (ii) development of an integrated Asset Management System to enable resource mobilization from passive assets, better and more cost effective operations and maintenance of municipal assets, and generation of additional resources through securitization of assets; (iii) development of financially sustainable medium and long- term business plans, and improved billing and revenue for local taxes, services, etc; (iv) ULB staff need to be trained in the assessment of property values for taxation purposes, and empowered to make such assessments; (v) current municipal budgets and budget preparation processes highlight the need for further capacity building, as budgets presented to the Council and used for internal management purposes frequently do not represent a full and accurate picture; (vi) procurement, tendering and financial control experience with project investment needs to be enhanced. Assessment of Municipal finance shows that local taxes and fees designated as local budget revenues for municipalities are unlikely to increase the revenue base, at least in the foreseeable future due to: the low taxation base, poor collection efficiency, lack of enforcement, flawed taxation laws, etc. Municipalities’ accounts are maintained under a cash accounting system and these therefore do not truly reflect their financial performance, as both income and expenditures are accounted to the extent these are realized or incurred. In addition, an annual statement of affairs (Balance sheet) is not prepared, and as a result the municipal financial status in terms of its assets and liabilities is not reflected. All these issue need to be addressed through the capacity building program. 182 BUDP Main Report Appendices Arrears of property taxes are high and their age-wise classification is not known. There is a need to review taxation in general, and to develop link between cost of services and tax levies. Incomplete land and property records require updating through town-wide detailed survey and tax mapping, which can be linked into GoBs current GIS and e-governance initiatives. The tax legislation is there. However, the municipal staff needs to be trained in the assessment of property values for taxation purposes, and empowered to make such assessments. The immediate objectives of the following capacity building initiatives would be to raise the existing revenue and resource base of the municipalities through tax and non-tax resources to enable it to provide improved municipal services to its citizens, and move towards greater financial sustainability. It would also be to improve municipal operations, and particularly operation and maintenance. Further details on the capacity building programs and modules under this component will be developed under the proposed PPTA. Capacity Building for PSP Capacity building programs to improve ability to manage PSP: Urban local bodies and other urban sector public institutions in the state have little recent experience of public-private partnerships where there is any sharing of risks or contracting out of public responsibilities, even though they may be letting out works contracts to the private sector on a regular basis. As a result, their ability to devise and negotiate appropriate PPP arrangements is often quite limited. This problem could be even more severe in sectors where services or functions being developed in PPP format are “new” in the sense that there is no recent experience of those functions being performed by public bodies. In such cases, adequate baseline information to value or monitor services may not be available with the public body. To address this gap, the capacity building program should aim to provide a broad understanding of PPP, explaining basic principles and strategies for choosing the most appropriate form of PPP. The program should also orient public officials for the new roles that public bodies have to take on to support and manage, and to get best value from PPPs. Support for developing in-house expertise: Where ULBs contract out core public functions to the private sector, they often maintain public operations within some zones or demarcated areas. This creates a basis for some yardstick comparisons between performance of the private and public sector agencies, helping the state derive better value from both public and private sector delivery systems. It is also useful for the public body to maintain a small service delivery system of its own in order to ensure that if the PPP arrangement were to break down (as in the case of a dispute with the private party), there is no disruption of essential functions. Experience across ULBs elsewhere in India shows that maintaining a limited service delivery system in-house also ensures that the public body cannot be blackmailed by private contractors at the time of contract renegotiations or renewals. Alternatively, the public body may like to contract with multiple service providers or keep some part of the value chain in-house. However, in order not to add undue additional cost to the operations, it is important to ensure that if parallel public services are maintained they are run efficiently as far as possible. If the public body has to service the less remunerative zones or perform a greater share of social responsibilities, this should be properly costed and reflected in the arrangements. 183 BUDP Main Report Appendices The ULBs will need support in determining overall sector design, and in deciding what the scope of parallel public service delivery arrangements should be. Where the public body has limited in-house experience of carrying out the function on its own, it may need support in planning for its new responsibilities and designing appropriate administrative systems. In addition, the ULB may have to recruit additional staff and provide new training to some of its existing staff. Legal/ administrative aspects of PSP: While there is no overarching legal restriction on PPP in the state, in sectors where urban local bodies have not fully taken over devolved functions, there may be some legal impediments to PSP arrangements between ULBs and the private sector. At present, service delivery as well as tariff setting and other regulatory responsibilities are usually kept within the same state departments or public bodies but these functions may also have to be separated or at least clearly delineated when PSP is being introduced. The capacity building program should instruct public officials in the importance of creating and maintaining clear regulatory rules. The program should also explain basic regulatory principles and it should provide basic training for designing and implementing regulatory mechanisms, either within public bodies or through independent regulatory institutions. The capacity building program should discuss the importance of maintaining public disclosure, transparency and accountability mechanisms in a PPP environment. This is an important safeguard, keeping check on both the public and the private sector and helping ensure that standards of service are maintained or improved after the contracting out of services. Capacity Building Strategies: To ensure that this capacity building program does not become too unwieldy and theoretical, it should be oriented towards case studies and examples of practical application. Module should be designed like a workshop, where a sector-specific PPP strategy for a local ULB or public body should be formulated and discussed. The sample sector or project to be taken up should be chosen in consultation with the urban development department, and it should be of direct practical application. The PMU should be involved in the capacity building program, both as trainers and as recipients of training. It will be the responsibility of the PMU to mainstream the capacity building program for PSP through continuous on-the-job support for ULBs/ corporations entering into PPP as a part of the BUDP. Building Capacity through Filling Staff Compliments Building the capacity of local governments in Bihar is not only about training those staff who are currently in place. The filling of vacant posts is an important compliment to the capacity building activities outlined above and below. At the same time, if the ULBs are to be capable of fulfilling their expanded mandates, the Government must carry out a rapid assessment of additional manpower and categories of manpower needed by the ULB’s to simply perform the functions currently entrusted to them and maintain essential services. While doing so, it should be possible to identify the minimum manpower needed by the ULB’s to take on the functions, in an efficient manner, like water supply and sewerage, land-use and building construction approval, town planning and roads which have already recently devolved. It must be noted that this advance action on manpower is critical to the operation and maintenance of the new systems currently being installed by the GOB in all the towns, including computerization, IT based e-governance initiatives, accrual based 184 BUDP Main Report Appendices accounting and GIS. The GOB will need to immediately consider the following steps: (i) The filling up and/or authorizing the ULB’s to fill up the vacant posts. (ii) Authorizing the ULB’s to employ persons on contract to fill up vacant positions. Training Plan and approximate cost is given in the following table. 185 Training Plan and Cost (Time horizon: 2 years) No. of Duration Approx. Trainers/ Objective Target group Estimated No. trainees Modules of each total cost facilitators per batch course (Rs.Million) Capacity building Staff of PIU, and Module 01 - A/SWM : Project Implementation and 5 days Project for implementation engineers and 105 15 Monitoring (7 bactches) Consultants 0.90 and maintenance SWM managers of of assets. ULBs of the Project Day 1 cities • Description of ADB funding mechanism; • Cost effective technological options and good practices; Sub-project planning and implementation Day 2 Solid waste collection, transportation and disposal; Supervision of works; efficient and optimum deployment of SWM workers, and personnel management; Day 3 • Tender procedure as prescribed by ADB • Procurement procedure for ADB Loan Project • Disbursement procedure • Environmental criteria for selection of waste disposal site Day 4 • Best institutional arrangements for the provision of the solid waste management service; • Functional relationship with Municipal Committees • Local people’s participation in the management of solid waste. • Conditions under which elements of the solid waste management system, or the system itself, can be privatized. Day 5 • Reporting procedure and MIS mechanism • Field visits Capacity building Staff of PIU and Module 02 - A/WSD: Water Supply, Sewerage & 5 days Project for implementation the functionaries of 30 10 Drainage: (3 batches) Consultants 0.4 and maintenance the BRJP and the of water supply, engineering staff of Day 1 1 No. of Duration Approx. Trainers/ Objective Target group Estimated No. trainees Modules of each total cost facilitators per batch course (Rs.Million) sewerage and the ULBs of the • Description of ADB funding mechanism; drainage projects project cities • Sub-project selection for water supply, sewerage and drainage for the project cities under the ADB loan Project • Water source investigation, identification and development Day 2 • Environmental criteria for selection of sites for installing STP; • Sub project planning, designing, quantity estimation and costing Day 3 • Tender procedure as prescribed by ADB • Procurement procedure for ADB Loan Project • Disbursement procedure Day 4 • Construction supervision and quality control; • Operation and maintenance; • Leak detection Day 5 • Functional relation with Municipal Committees and community groups • GIS (infrastructure planning, O&M), and MIS. • Field visit Capacity building Staff of PIU and Module 03 - A/LR: Municipal Roads and Transportation 5 days (7 Project for implementation the engineers of 105 15 batches) Consultants 0.9 and maintenance Road Construction Day 1 of municipal roads Department and • Description of ADB funding mechanism; & transportation the engineering • Sub-project selection for local roads in the project cities staff of the under the ADB loan Project municipalities of • Survey the project cities Day 2 • Sub project planning, designing, quantity estimation and costing Day 3 • Tender procedure as prescribed by ADB 2 No. of Duration Approx. Trainers/ Objective Target group Estimated No. trainees Modules of each total cost facilitators per batch course (Rs.Million) • Procurement procedure for ADB Loan Project • Disbursement procedure Day 4 • Construction supervision and quality control; • Operation and maintenance; Day 5 • Functional relation with Municipal Committee and community groups GIS (infrastructure planning, O&M), and MIS. To sensitize the Local community Module 04 – B/CL Community level functionaries Five days PPTA and MCs, and other groups (civil 125 25 Day 1 (5 batches) Project 1.0 local level society • Description of BUDP and ADB funding mechanism; Consultants organizations representatives), • Findings of the Socio-Economic Survey done under the about NGO and other BUDP; (i) the objective community based • On-going poverty alleviation programmes. and content of the organizations and Day 2 BUDP – ADB loan the members of the • Poverty measurement and identification of poverty Project; MCs pockets: present practice and its needed improvement; (ii) their role and • Developing and updating data base of urban poverty responsibilities in • Assessment of the felt needs, related to civic planning, infrastructure and livelihood, of the urban poor through implementation focus group meetings and other participatory and maintenance techniques; of the sub- Day 3 projects; • Description of Slum Improvement Program – its aims (iii) the objective, and objectives; strategy and • Operative mechanism of Slum Improvement operational Component; mechanism of the • Funding mechanism of Slum Improvement; Community Participation. • Interface of Slum Improvement and other poverty alleviation funds • Use of Slum Improvement for leveraging investments in civic infrastructure addressed to the urban poor Day 4 • Role of ULBs, NGOs, and civil society at large in urban poverty alleviation initiative inter alia with the Slum Improvement Program; • Identification of Slum Upgrading related priority schemes linked to the felt needs of the urban poor; • Developing implementation programmes . Day 5 • Visit of some slums • Discussion on the basis of the visits 3 No. of Duration Approx. Trainers/ Objective Target group Estimated No. trainees Modules of each total cost facilitators per batch course (Rs.Million) eminar/workshop To sensitize the Module 05 - C/ULB : Urban Local bodies Two days PPTA and Councillors of the elected 175 25 (7 batches) Project 0.4 project cities functionaries about Day 1 Consultants th urban laws and • Legal framework: provisions in the 74 CAA and their their role and implication; salient features of current municipal Acts, responsibilities in and other urban laws. the municipal • Rules and Procedures under the Municipal Acts; organization, and to familiarize them Day 2 with the process of • Councillors’ roles and responsibilities; implementation of • Policy Making the BUDP. • Sub-project identification, feasibility, design and implementation • Sub-project monitoring and evaluation • Sub-project funding and operation and maintenance Financing and implementation procedure of the BUDP; people’s participation in development planning and implementation, and maintenance of schemes. Seminar/workshop To sensitize the Module 06 - C/ULB : Urban Local bodies Two days PPTA and for municipal staff staff and public 175 25 Day 1 (7 batches) Project 0.4 and about participation • Legal framework: provisions in the 74th CAA and their Consultants representatives of in urban planning, implication; salient features of current municipal Acts, Ward Committees and to familiarize and other urban laws. and NGOs them with the • Rules and Procedures under the Municipal Acts; process of Day 2 implementation of • Potential roles and responsibilities for citizens and the BUDP. NGOs in municipal planning and project identification; • Sub-project identification, feasibility, design and implementation and the role for communities NGOs • Sub-project monitoring and evaluation • Sub-project funding and operation and maintenance • Financing and implementation procedure of the BUDP; people’s participation in development planning and implementation, and maintenance of schemes. Capacity building Municipal Module 07 – C/ULB: Urban Local Bodies 5 days PPTA and of executive officers, 100 10 (10 batches) Project 3.6 ULBs: general accountants, tax Sub-modules to be worked out after undertaking training (approx 4 Consultants management, collectors, office needs assessment study. Covering the areas of: programs) financial superintendent • Municipal Financing management, • Municipal Planning operation and • Municipal budgeting maintenance, 4 No. of Duration Approx. Trainers/ Objective Target group Estimated No. trainees Modules of each total cost facilitators per batch course (Rs.Million) Municipal revenue • Revenue enhancement enhancement, and • Property Tax Reform planning • Operation and Maintenance Special training Municipal Module 08 –C/ULB/FIN: Urban Local Bodies 4 days PPTA and programme for accountants 30 10 (3 batches) Project 1.5 municipal Day1 Consultants accountants • General introduction - to be • Existing financial Rules repeated • Purpose of budgeting and the present practice thrice • Financial information and reporting – the objective Incompatibility of the single entry system of accounting system with efficient financial management Day 2 • The objective and purpose of double entry system of accounting • Conceptualizing and understanding “debit” and “credit” • Exercise on double entry system of accounting Day 3 Practical on use of recording financial data in computer; use of accounting soft ware; practice sessions. Day 4 • Income and expenditure account • Asset register • Balance sheet • Works accounts • Auditing [Note: The State Government is in the process of engaging a number of Chartered Accountants for hand- holding the ULBs to get acquainted and learn the accrual based double entry system of accounting. An expert/consultant should be engaged to detail out the modules and training programme, and to facilitate development of print and electronic materials for training. Capacity building Municipal Module 09 –D/PSP: Public Sector participation 4 days PPTA and programmes to executive officers 30 10 Project 1.5 improve ability to and PMU staff Day 1: PPP toolkit: (3 batches Consultants manage PPP • What is PPP? and • Choosing from a menu of options: designing occasional appropriate PPP arrangements refresher and • Managing PPP: new roles for public bodies update courses) 5 No. of Duration Approx. Trainers/ Objective Target group Estimated No. trainees Modules of each total cost facilitators per batch course (Rs.Million) Day 2: Developing in-house expertise • Forms of PPP – case studies of different levels of PPP • Lessons learnt: public sector comparisons, emergency services • How to determine the appropriate level of public control? • Identifying institutional needs: staffing plans and training Day 3: Legal/ administrative aspects of PSP • Contracting out: which is the appropriate public body? Clarifying roles and responsibilities where there are multiple public agencies. • Public disclosure and accountability mechanisms • Regulation: What is regulation? Understanding regulatory principles and designing appropriate regulatory mechanisms. Day 4: Workshop • Applying lessons to chosen samples – sectors and projects to be identified in cosultation with urban development department Water Utility Executive officers Module 10 –E/WR: Water Utility Management 2 days PPTA and Management from GoB 30 30 Sub-modules to be worked out after undertaking training (Single Project 0.3 Departments, needs assessment study. Covering the areas of: batch) Consultants BRJP, ULBs and Water supply and sewerage sector reforms roadmap and PMU. its implementation • Improvement in management of service delivery vis-à- vis revenue generation for self sustainability • Action Plan To sensitize the Staff of PMU and Module 11 –E/ENV: Environmental Appraisal 3 days Project executing and PIU and other 60 15 Day 1 Consultants 0.4 implementing senior technical • Environmental considerations of development projects agencies about staff of the BRJP • Overview of Government of India and Government of (i) the objective and ULBs Bihar environmental Acts & Regulations and its environmental applicability to BUDP assessment and • Overview of ADB’s Environmental Assessment regulatory Guidelines framework; • EA requirements of BUDP and EARP (ii) their role and • Environmental impacts of urban infrastructure projects – responsibilities in Bihar perspective implementing Day 2 EARP of BUDP; • Roles & responsibilities of agencies (iii) conducting • Subproject selection criteria 6 No. of Duration Approx. Trainers/ Objective Target group Estimated No. trainees Modules of each total cost facilitators per batch course (Rs.Million) IEE/EIA as per • Project categorization as per ADB ADB guidelines • IEE/EIA process, Formats and Reports Day 3 • dentification of Environmental Impacts • Identification Mitigation Measures • Formulation of Environmental Management Plan • Implementation and Monitoring • Summary EIA/IEEs • Review of EIA/IEE reports to comply with ADB requirements • Incorporation of mitigating measures in the project design and contracts Implementation Staff of PMU, PIU Module 11 –E/ENV: Environmental Monitoring 1 day Project support workshop and the technical 105 15 Day 1 Consultants 0.2 staff of any other • Environmental issues related urban infrastructure related department projects during construction and engineering • Implementation of mitigation measures staff of the Patna • Monitoring of implementation and Gaya city corporations Exposure and Municipal Eexposure to: (i) good management systems and 7-10 day exchange visits to executive officers 70 10 practices, including financial management, in ULB’s; (ii) residential 5.3 other states to and executive staff effective use of IT-enabled e-governance applications in tours observe examples from PMU staff management and citizens interface; (iii) effective (20 tours) of good practice and community operationalization of key positions of the 74th CAA; (iv) representatives improved solid wastes management systems; (v) municipal management of water supply and sewerage systems; (vi) Property Tax reform; and (vii) Transparency, predictability and accountability in municipal governance Solid Waste PMU, PIUs, Project 10.0 Management Municipalities and Consultants Awareness civil society Program and Support Hardware and 7.0 Software Costs Total Costs 33.7 Or $0.9 m 7 Appendix 12: Financial Internal Rate of Return Rehabilitation and Improvement of Water Supply System - Patna Tariff Incremental NRW Capital Cost O & M Cost Demand Increase Incremental Incremental Revenue Assumptio One Year Capital Cost Total Outflow Net Cash Flow increased by increased by Worst Scenario Assumption Assumption O&M Cost Revenue Decreased by n Higher Delay 10% 10% Lower by 10% Lower by 10% by 10% 50% 2009 167.8 167.8 -167.8 -184.6 -167.8 -167.8 -184.6 -167.8 -167.8 -167.8 2010 610.6 610.6 -610.6 -671.7 -610.6 -610.6 -671.7 -610.6 -610.6 -610.6 -167.8 2011 782.6 0.0 782.6 0.0 -782.6 -860.9 -782.6 -782.6 -860.9 -782.6 -782.6 -782.6 -610.6 2012 397.5 0.0 397.5 0.0 -397.5 -437.3 -397.5 -397.5 -437.3 -397.5 -397.5 -397.5 -782.6 2013 138.8 0.0 138.8 0.0 -138.8 -152.7 -138.8 -138.8 -152.7 -138.8 -138.8 -138.8 -397.5 2014 0.0 24.9 24.9 359.9 335.0 335.0 332.5 299.0 296.5 268.9 263.1 127.6 -138.8 2015 24.9 24.9 376.3 351.4 351.4 349.0 313.8 311.3 272.6 265.2 135.9 335.0 2016 24.9 24.9 388.8 364.0 364.0 361.5 325.1 322.6 273.1 264.5 142.2 351.4 2017 24.9 24.9 488.4 463.5 463.5 461.1 414.7 412.2 328.2 316.9 192.2 364.0 2018 24.9 24.9 504.3 479.4 479.4 476.9 429.0 426.5 341.0 316.3 200.2 463.5 2019 24.9 24.9 520.7 495.8 495.8 493.4 443.8 441.3 341.7 315.8 208.5 479.4 2020 24.9 24.9 537.4 512.6 512.6 510.1 458.8 456.4 342.4 315.3 216.9 495.8 2021 24.9 24.9 645.3 620.4 620.4 618.0 555.9 553.4 394.7 363.7 270.9 512.6 2022 24.9 24.9 632.1 607.3 607.3 604.8 544.1 541.6 375.3 345.8 264.2 620.4 2023 24.9 24.9 619.5 594.6 594.6 592.1 532.7 530.2 356.9 328.9 258.0 607.3 2024 24.9 24.9 606.8 582.0 582.0 579.5 521.3 518.8 339.4 312.7 251.7 594.6 2025 24.9 24.9 723.7 698.9 698.9 696.4 626.5 624.0 389.3 359.0 310.3 582.0 2026 24.9 24.9 708.5 683.7 683.7 681.2 612.8 610.4 370.2 341.3 302.8 698.9 2027 24.9 24.9 693.4 668.5 668.5 666.1 599.2 596.7 352.0 324.6 295.3 683.7 2028 24.9 24.9 677.3 652.4 652.4 649.9 584.7 582.2 334.2 308.1 286.9 668.5 Total 2097.4 372.8 2470.1 8482.4 6012.3 5802.5 5975.0 5164.0 4917.0 2982.5 2643.8 1366.1 5359.9 NPV @ 5% 1825.5 222.8 2027.6 4856.0 2376.9 2194.3 2356.7 1936.4 1733.7 880.0 709.0 -45.3 2131.0 FIRR SI SV Base Case 14.6% Capital Costs Increased by 10% 10% 13.4% 0.91 110% O&M Costs Increased by 10% 10% 14.5% 0.05 2138% Incremental Revenue Decreased by 10% 10% 13.2% 1.08 93% Worst Scenario 11.9% NRW Assumption Higher by 10% 10% 9.5% 5.35 19% Demand Assumption Lower by 10% 10% 8.8% 6.67 15% Tariff Increase Assumption Lower by 50% 50% 4.7% 4.16 24% One Year Delay 14.2% 1/4 FIRR 2: Rehabilitation and Improvement of Sewerage System - Patna Incremental Incrementa Capital Cost O & M Cost Capital Total Incremental Net Cash Revenue Worst l O&M increased by increased by Cost Outflow Revenue Flow Decreased by Scenario Cost 10% 10% 10% 2009 141.6 141.6 -141.6 -155.8 -141.6 -141.6 -155.8 2010 278.0 278.0 -278.0 -305.8 -278.0 -278.0 -305.8 2011 395.0 395.0 0.0 -395.0 -434.4 -395.0 -395.0 -434.4 2012 345.6 345.6 0.0 -345.6 -380.2 -345.6 -345.6 -380.2 2013 38.3 0.0 38.3 0.0 -38.3 -42.2 -38.3 -38.3 -42.2 2014 38.7 38.7 33.9 -4.8 -4.8 -8.7 -8.2 -12.1 2015 38.7 38.7 34.7 -4.0 -4.0 -7.9 -7.5 -11.4 2016 38.7 38.7 35.3 -3.4 -3.4 -7.2 -6.9 -10.8 2017 38.7 38.7 44.7 6.0 6.0 2.1 1.5 -2.4 2018 38.7 38.7 46.9 8.2 8.2 4.3 3.5 -0.4 2019 38.7 38.7 47.7 9.0 9.0 5.2 4.3 0.4 2020 38.7 38.7 48.6 9.9 9.9 6.0 5.0 1.2 2021 38.7 38.7 57.5 18.8 18.8 14.9 13.1 9.2 2022 38.7 38.7 58.0 19.3 19.3 15.4 13.5 9.6 2023 38.7 38.7 58.0 19.3 19.3 15.4 13.5 9.6 2024 38.7 38.7 57.9 19.2 19.2 15.4 13.4 9.6 2025 38.7 38.7 68.4 29.7 29.7 25.8 22.9 19.0 2026 38.7 38.7 68.3 29.6 29.6 25.7 22.7 18.9 2027 38.7 38.7 66.1 27.4 27.4 23.5 20.7 16.9 2028 38.7 38.7 65.7 27.0 27.0 23.1 20.4 16.6 Total 1198.5 503.1 1701.6 554.1 -1147.5 -1267.3 -1197.8 -1202.9 -1373.1 NPV @ 5% 1042.6 382.6 1357.3 451.7 -947.6 -1051.9 -979.1 -988.6 -1124.3 FIRR SI SV Base Case #DIV/0! Capital Costs Increased by 10% 10% #DIV/0! #DIV/0! #DIV/0! O&M Costs Increased by 10% 10% #DIV/0! #DIV/0! #DIV/0! Incremental Revenue Decreased by 10% 10% #DIV/0! #DIV/0! #DIV/0! Worst Scenario #DIV/0! 2/4 FIRR 3: Rehabiliation and Improvement of Water + Sewerage System - Patna Incremental Incrementa Capital Cost O & M Cost Capital Total Incremental Net Cash Revenue Worst One Year l O&M increased by increased by Cost Outflow Revenue Flow Decreased by Scenario Delay Cost 10% 10% 10% 2009 309.4 0.0 309.4 0.0 -309.4 -340.3 -309.4 -309.4 -340.3 2010 888.6 0.0 888.6 0.0 -888.6 -977.5 -888.6 -888.6 -977.5 -309.4 2011 1177.6 0.0 1177.6 0.0 -1177.6 -1295.3 -1177.6 -1177.6 -1295.3 -888.6 2012 743.2 0.0 743.2 0.0 -743.2 -817.5 -743.2 -743.2 -817.5 -1177.6 2013 177.2 0.0 177.2 0.0 -177.2 -194.9 -177.2 -177.2 -194.9 -743.2 2014 0.0 63.6 63.6 393.7 330.2 330.2 323.8 290.8 284.5 -177.2 2015 0.0 63.6 63.6 411.0 347.4 347.4 341.1 306.3 300.0 330.2 2016 0.0 63.6 63.6 424.2 360.6 360.6 354.3 318.2 311.9 347.4 2017 0.0 63.6 63.6 533.1 469.5 469.5 463.2 416.2 409.8 360.6 2018 0.0 63.6 63.6 551.2 487.6 487.6 481.3 432.5 426.2 469.5 2019 0.0 63.6 63.6 568.4 504.9 504.9 498.5 448.0 441.7 487.6 2020 0.0 63.6 63.6 586.0 522.5 522.5 516.1 463.9 457.5 504.9 2021 0.0 63.6 63.6 702.8 639.3 639.3 632.9 569.0 562.6 522.5 2022 0.0 63.6 63.6 690.1 626.5 626.5 620.2 557.5 551.2 639.3 2023 0.0 63.6 63.6 677.4 613.9 613.9 607.5 546.1 539.8 626.5 2024 0.0 63.6 63.6 664.7 601.2 601.2 594.8 534.7 528.4 613.9 2025 0.0 63.6 63.6 792.1 728.6 728.6 722.2 649.4 643.0 601.2 2026 0.0 63.6 63.6 776.8 713.3 713.3 706.9 635.6 629.2 728.6 2027 0.0 63.6 63.6 759.4 695.9 695.9 689.5 620.0 613.6 713.3 2028 0.0 63.6 63.6 743.0 679.4 679.4 673.1 605.1 598.8 695.9 Total 3295.9 953.3 4249.2 9274.0 5024.9 4695.3 4929.5 4097.5 3672.5 4345.4 NPV @ 5% 2868.1 516.8 3384.9 4814.2 1429.3 1142.5 1377.6 947.9 609.4 1173.2 FIRR SI SV Base Case 9.3% Capital Costs Increased by 10% 10% 8.3% 1.29 78% O&M Costs Increased by 10% 10% 9.2% 0.16 645% Incremental Revenue Decreased by 10% 10% 8.0% 1.66 60% Worst Scenario 6.8% One Year Delay 8.8% 3/4 FIRR 4: Rehabilitation and Improvement of Water Supply System - Gaya Tariff Incremental NRW Demand Incrementa Capital Cost O & M Cost Increase Capital Total Incremental Net Cash Revenue Worst Assumpti Assumption One Year l O&M increased by increased by Assumption Cost Outflow Revenue Flow Decreased by Scenario on Higher Lower by Delay Cost 10% 10% Lower by 10% by 10% 10% 50% 2009 23.3 23.3 -23.3 -25.6 -23.3 -23.3 -25.6 -23.3 -23.3 -23.3 2010 82.9 82.9 -82.9 -91.2 -82.9 -82.9 -91.2 -82.9 -82.9 -82.9 -23.3 2011 53.8 0.0 53.8 0.0 -53.8 -59.2 -53.8 -53.8 -59.2 -53.8 -53.8 -53.8 -82.9 2012 45.3 0.0 45.3 0.0 -45.3 -49.8 -45.3 -45.3 -49.8 -45.3 -45.3 -45.3 -53.8 2013 18.8 0.0 18.8 0.0 -18.8 -20.7 -18.8 -18.8 -20.7 -18.8 -18.8 -18.8 -45.3 2014 0.0 6.5 6.5 36.0 29.5 29.5 28.8 25.9 25.3 22.5 21.5 9.9 -18.8 2015 6.5 6.5 37.7 31.2 31.2 30.6 27.5 26.8 22.5 21.8 10.7 29.5 2016 6.5 6.5 39.3 32.8 32.8 32.2 28.9 28.3 22.3 22.1 11.5 31.2 2017 6.5 6.5 49.3 42.8 42.8 42.2 37.9 37.3 27.2 27.4 16.5 32.8 2018 6.5 6.5 50.6 44.1 44.1 43.5 39.0 38.4 26.4 27.2 17.2 42.8 2019 6.5 6.5 51.8 45.4 45.4 44.7 40.2 39.6 25.7 27.1 17.8 44.1 2020 6.5 6.5 55.0 48.5 48.5 47.9 43.0 42.4 26.5 27.9 19.4 45.4 2021 6.5 6.5 66.2 59.7 59.7 59.1 53.1 52.5 31.1 33.0 25.0 48.5 2022 6.5 6.5 65.8 59.3 59.3 58.7 52.7 52.1 29.5 31.7 24.8 59.7 2023 6.5 6.5 65.3 58.9 58.9 58.2 52.3 51.7 28.0 30.4 24.6 59.3 2024 6.5 6.5 64.9 58.4 58.4 57.8 51.9 51.3 26.5 29.2 24.3 58.9 2025 6.5 6.5 78.0 71.5 71.5 70.9 63.7 63.1 31.0 34.5 30.9 58.4 2026 6.5 6.5 77.5 71.0 71.0 70.4 63.3 62.6 29.5 33.2 30.6 71.5 2027 6.5 6.5 76.9 70.5 70.5 69.8 62.8 62.1 28.0 31.9 30.4 71.0 2028 6.5 6.5 75.4 68.9 68.9 68.3 61.4 60.8 26.0 30.2 29.1 70.5 Total 224.0 96.9 320.9 889.6 568.6 546.2 559.0 479.7 447.6 178.7 205.1 98.6 499.7 NPV @ 5% 195.8 57.9 248.3 505.5 210.2 190.6 204.9 164.3 139.5 19.2 30.8 -32.7 184.2 FIRR SI SV Base Case 13.0% Capital Costs Increased by 10% 10% 11.8% 1.0 104% O&M Costs Increased by 10% 10% 12.8% 0.1 750% Incremental Revenue Decreased by 10% 10% 11.5% 1.2 81% Worst Scenario 10.3% NRW Assumption Higher by 10% 10% 6.0% 11.5 9% Demand Assumption Lower by 10% 10% 6.6% 9.7 10% Tariff Increase Assumption Lower by 50% 50% 3.3% 5.9 17% One Year Delay 12.5% 4/4 Appendix 13: Average Incremental Financial Cost City Particulars Water Supply Sewerage Water Supply & Sewerage Patna PV of Project Costs @ 5% (Rs. Million) 2028.1 1357.7 3385.8 PV of Project Revenues @ 5% (Rs. Million) 2910.7 410.0 4817.8 PV of Quantity* @ 5% 265.3 93.0 240.7 AIFC** 7.6 14.6 14.1 AIFC - O&M Costs only 0.9 3.7 2.3 Average Tariff** 11.0 4.4 20.0 Financial Surplus (Subsidy)** 3.3 -10.2 5.9 AIFC Recovery (%) 144% 30% 142% * Million kiloliter for water supply & sewerage; metric ton for solid waste **Rs./KL for water supply & sewerage; Rs./MT for solid waste Subsidy Analysis City Particulars Commercial Domestic Standpost Patna Water Supply Average Tariff (Rs./KL) 4.2 2.0 0.0 AIFC (Rs./KL) 7.6 7.6 7.6 Financial Surplus (Subsidy) (Rs./KL) -3.5 -5.6 -7.6 AIFC Recovery (%) 54% 26% 0% Water Consumption (Million KL) 293.4 1148.1 103.9 Financial Surplus (Subsidy) (Rs.Million) -1023.5 -6466.0 -794.2 Sewerage Average Tariff (Rs./KL) 4.4 4.4 0.0 AIFC (Rs./KL) 14.6 14.6 0.0 Financial Surplus (Subsidy) (Rs./KL) -10.2 -10.2 0.0 AIFC Recovery (%) 30% 30% 0% Average O&M Cost (Rs./KL) 3.7 3.7 0.0 O&M Cost Recovery (%) 118% 118% 0% AIFC City Particulars Water Supply Gaya PV of Project Costs @ 10% (Rs. Million) 248.4 PV of Project Revenues @ 10% (Rs. Million) 328.9 PV of Quantity* @ 10% 30.7 AIFC** 8.1 AIFC - O&M Costs only 2.1 Average Tariff** 10.7 Financial Surplus (Subsidy)** 2.6 AIFC Recovery (%) 132% * Million kiloliter for water supply & sewerage; metric ton for solid waste **Rs./KL for water supply & sewerage; Rs./MT for solid waste Subsidy Analysis City Particulars Commercial Domestic Standpost Gaya Water Supply Average Tariff (Rs./KL) 4.7 2.1 0.0 AIFC (Rs./KL) 8.1 8.1 8.1 Financial Surplus (Subsidy) (Rs./KL) -3.4 -6.0 -8.1 AIFC Recovery (%) 58% 26% 0.0 Water Consumption (Million KL) 19.6 124.4 15.2 Financial Surplus (Subsidy) (Rs.Million) -66.1 -743.3 -123.2 Appendix 14: Detailed Cash Flows Patna Municipal Corporation Particulars Actual Projections 2006-07 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2017-18 2020-21 2021-22 2027-28 Rs. Million A. Patna Municipal Corporation (Revenue Account) Opening Balance (510.4) (683.2) (841.7) (983.8) (983.3) (1043.2) (1090.8) (1074.6) (880.8) (710.5) 1222.4 Revenue Income Tax Revenue 160.5 162.7 182.8 204.6 351.8 295.2 310.3 326.3 414.7 513.6 520.0 695.5 Non Tax Revenue 6.6 7.0 7.1 7.3 7.4 7.6 7.8 8.0 8.4 9.2 9.5 11.8 Grants & Contribution 158.6 211.1 232.2 255.4 281.0 309.1 340.0 374.0 452.5 602.3 662.5 1173.7 Total- Revenue Income 325.7 380.7 422.2 467.3 640.2 611.9 658.1 708.2 875.6 1125.1 1192.0 1881.0 Revenue Expenditure Salaries & Allowances 343.3 466.7 491.8 518.4 546.6 576.4 608.0 641.4 714.3 840.7 887.9 1236.3 Water payment to Patna Water Board 56.1 57.8 58.4 59.0 59.6 60.2 60.8 61.4 62.6 64.5 65.2 69.2 Administrative Expenses 25.0 29.0 30.4 31.9 33.5 35.2 37.0 38.8 42.8 49.6 52.0 69.7 Total- Revenue Expenditure 424.5 553.5 580.7 609.4 639.7 671.8 705.7 741.6 819.8 954.8 1005.1 1375.2 Revenue Surplus /(Deficit) (98.8) (172.8) (158.5) (142.0) 0.5 (59.9) (47.6) (33.4) 55.8 170.3 186.9 505.8 Closing Balance (98.8) (683.2) (841.7) (983.8) (983.3) (1043.2) (1090.8) (1124.3) (1018.8) (710.5) (523.6) 1728.2 765.3 1087.6 1860.4 3267.8 3864.4 7511.9 B. Patna Municipal Corporation (BUDP Project Account) 457.0 308.2 322.4 440.3 483.3 596.6 629.6 Opening Balance (98.8) (683.2) (841.7) (983.8) (985.3) (1047.7) (819.7) (816.5) (638.6) 52.0 366.5 3778.9 Sources of Fund Debt Drawdown 0.0 261.1 779.8 1074.7 705.4 174.9 0.0 Govt. Grant 0.0 Subsidy - Equity 0.0 111.9 334.2 460.6 302.3 75.0 0.0 0.0 0.0 0.0 0.0 0.0 - Debt Servicing 0.0 0.0 0.0 0.0 0.0 0.0 311.6 303.1 286.0 260.4 251.9 200.7 Water Supply - Income -Existing 59.0 58.9 58.8 58.5 58.1 58.0 57.2 - Income - Incremental 345.7 356.0 372.4 484.2 533.2 641.1 689.2 -New Connection Fees 67.2 3.9 3.9 4.2 4.2 4.2 4.2 Sewerage and Sanitation - Income -Existing 34.3 33.1 33.1 30.9 30.9 30.9 32.3 - Income - Incremental 0.0 0.0 0.0 0.0 32.0 33.9 34.7 44.7 48.6 57.5 66.1 -New Connection Fees 0.0 0.0 0.0 0.0 78.3 1.2 1.2 3.4 3.4 3.4 2.0 Total- Inflow 0.0 372.9 1114.0 1535.3 1007.7 866.3 798.5 807.1 911.9 938.9 1047.0 1051.7 1/4 Particulars Actual Projections 2006-07 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2017-18 2020-21 2021-22 2027-28 Rs. Million Disposition of Funds Equity Drawdown 0.0 0.0 0.0 0.0 0.0 0.0 Project Capex 372.9 1114.0 1535.3 1007.7 249.9 Water Supply - Debt - Principal 88.5 88.5 88.5 88.5 88.5 88.5 - Debt - Interest 107.0 101.6 90.9 74.9 69.5 37.4 Sewerage and Sanitation - Debt - Principal 52.6 52.6 52.6 52.6 52.6 52.6 - Debt - Interest 63.6 60.4 54.1 44.5 41.3 22.3 Water Supply - Expenditure - Existing 199.5 264.0 273.4 292.6 323.0 333.5 401.3 - Expenditure - Incremental 0.0 0.0 0.0 0.0 0.0 24.9 32.9 34.0 36.4 40.2 41.5 50.0 Sewerage and Sanitation - Expenditure - Existing 75.2 99.5 103.0 110.3 121.7 125.7 151.3 - Expenditure - Incremental 0.0 0.0 0.0 0.0 0.0 38.7 51.2 53.0 56.8 62.7 64.7 77.8 Slum Infrastrucutre 2.0 2.5 2.6 2.6 2.7 2.9 3.2 3.3 4.0 Total- Outflow 0.0 372.9 1114.0 1537.3 1010.2 590.7 761.9 769.3 785.1 811.3 820.8 885.1 Net Cash Flow 0.0 0.0 0.0 (2.0) (2.5) 275.6 36.6 37.8 126.8 127.6 226.2 166.6 Closing Balance (98.8) (683.2) (841.7) (985.8) (987.8) (772.0) (783.1) (778.7) (511.9) 179.6 592.7 3945.5 2/4 Particulars Actual Projections 2006-07 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2017-18 2020-21 2021-22 2027-28 Rs. Million Gaya Municipal Corporation A. Gaya Municipal Corporation (Revenue Account) Opening Balance 17.7 49.7 86.7 129.0 223.9 294.3 366.5 541.1 818.9 932.6 1600.0 Revenue Income Tax Revenue 18.9 59.9 67.4 75.4 130.8 109.6 115.1 120.8 153.6 189.8 191.7 253.7 Non Tax Revenue 21.4 27.3 29.7 32.3 35.1 38.2 41.6 45.3 53.8 70.0 76.4 130.4 Grants & Contribution 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total- Revenue Income 40.3 87.3 97.1 107.7 165.9 147.9 156.7 166.2 207.5 259.7 268.1 384.1 Revenue Expenditure Salaries & Allowances 32.6 42.2 46.0 50.2 54.8 59.8 65.4 71.4 85.3 111.6 122.1 210.3 Municipal Services (Maintenance) 8.3 9.7 10.3 10.9 11.6 12.3 13.2 14.1 16.2 20.6 22.4 40.2 Administrative Expenses 2.7 3.4 3.8 4.2 4.7 5.2 5.9 6.7 8.9 13.9 16.3 44.1 Total- Revenue Expenditure 43.5 55.3 60.1 65.3 71.1 77.4 84.5 92.2 110.4 146.0 160.7 294.6 Revenue Surplus /(Deficit) (3.2) 32.0 37.0 42.4 94.8 70.4 72.3 73.9 97.0 113.7 107.4 89.5 Closing Balance (3.2) 49.7 86.7 129.0 223.9 294.3 366.5 440.5 638.1 932.6 1040.0 1689.5 53.5 108.5 224.8 267.4 602.8 B. Gaya Municipal Corporation (BUDP Project Account) 28.1 25.4 28.1 39.7 42.5 62.9 Opening Balance (3.2) 17.8 60.4 102.7 195.6 264.0 339.9 405.6 587.1 881.0 989.0 1690.6 Sources of Fund Debt Drawdown 0.0 19.7 72.7 49.1 43.0 18.5 0.0 Govt. Grant 0.0 Subsidy - Equity 0.0 8.4 31.2 21.1 18.4 7.9 0.0 0.0 0.0 0.0 0.0 0.0 - Debt Servicing 0.0 0.0 0.0 0.0 0.0 0.0 20.8 20.2 19.1 17.3 16.8 13.3 Water Supply - Income -Existing 3.6 3.6 3.6 3.6 3.6 3.6 3.6 - Income - Incremental 0.0 0.0 0.0 0.0 0.0 31.7 35.7 37.4 49.0 54.7 65.9 76.7 -New Connection Fees 5.6 0.0 0.0 0.0 4.9 0.3 0.3 0.3 0.3 0.3 0.3 Total- Inflow 0.0 33.7 103.9 70.2 61.4 66.6 60.3 61.5 71.9 75.9 86.5 93.8 3/4 Particulars Actual Projections 2006-07 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2017-18 2020-21 2021-22 2027-28 Rs. Million Disposition of Funds Equity Drawdown 0.0 0.0 0.0 0.0 0.0 0.0 Project Capex 28.1 103.9 70.2 61.4 26.5 Water Supply - Debt - Principal 9.2 9.2 9.2 9.2 9.2 9.2 - Debt - Interest 11.6 11.0 9.9 8.1 7.5 4.1 Water Supply - Expenditure - Existing 28.1 37.1 38.4 41.2 45.4 46.9 56.4 - Expenditure - Incremental 0.0 0.0 0.0 0.0 0.0 6.5 8.5 8.8 9.5 10.5 10.8 13.0 Slum Infrastructure - Expenditure - Incremental 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 Total- Outflow 0.0 28.1 103.9 72.2 63.4 63.0 68.5 69.5 71.7 75.2 76.5 84.7 Net Cash Flow 0.0 5.6 0.0 (2.0) (2.0) 3.6 (8.2) (8.0) 0.2 0.7 10.1 9.1 Closing Balance (3.2) 23.4 60.4 100.7 193.6 267.6 331.7 397.6 587.4 881.6 999.1 1,699.6 4/4 Appendix 15: Institutional and Financial Reforms Year-wise outputs Design Phase I II III IV Support from BUDP FINANCE Property tax Decision on Mapping of properties and Generation of Database, Evaluation of the Evaluation of the Consultancy for: related Property tax services such as water and Computerization – operation of assessment operation of Mapping and inventory information reforms and sewer connection using operational modules system [This is to be a assessment system Procurement of computers as system and levy of other GIS ready, and Training of continuous process] and make changes part of e-governance administration taxes as in the staff on new system. as may be Design of application Municipal necessary. software Bill Make special drive for Training of staff on proposed 100 % coverage in systems and computer respect of assessment of applications. property tax in all municipalities. Preparation of a Implementation of the Implementation of the comprehensive plan for plan and programme for plan and programme for modernization of tax modernization of tax modernization of tax administration. administration administration I User charges Policy Preparation of Rules and Introduction and decision for manuals on user charges. realization of user levy of user charges. charges and Determination of tariff of tariff to be user charges for different charged for. services. Initiation and awareness creation. Accrual based Engage Implementation of system Implementation of new Implementation of new Refresher Consultancy for accounting consultants through on the job training system in additional system in the remaining programs on Engagement of consultants system 3 years for in Patna Nagar Nigam and ULBs. ULBs accounting for design and of approval. finalization of other select ULBs implementation of new accounting Refresher programs on Refresher programs on accounting system manual and accounting accounting On the job training of staff Year-wise outputs Design Phase I II III IV Support from BUDP implementatio Generate Monthly Trail Refresher training for n. Balances and complete municipal staff during the accounts for the first year Implement project period. Approval of computerized accounting Refresher programs on accounting system Procurement of computers rules by GoB accounting for accounting and application software for staff and managers Training of staff on accounts department. Orientation of computerized Staff and accounting system. Local Fund Auditors GOVERNANCE Policy Urban Policy Drafting of Urban Policy Consultation and public Pronouncement of the debate. Policy Drafting Policy and Privatization Guidelines Consultation and public Publication of the of municipal debate. Policy and Guidelines infrastructure and services and Public- private- partnership (PPP) Planning Planning Policy decision regarding Establishing Planning Mobilization of capacity of enhancing planning Cell in each planning personnel in municipalities capacity and its municipality with the planning cells. manifestation population of 150,000 Framing of Rules for and more; zonal empowerment of planning office for municipalities to take up smaller municipalities physical planning functions Make Rules to enable the The State to create the municipalities to take part necessary conditions to in the preparation of plans facilitate a symbiotic for economic development relationship between the and social justice in municipalities and the conformity with the Art. Constitutional District Year-wise outputs Design Phase I II III IV Support from BUDP 243(a) of the CAA Planning Committee in the sphere of development planning Improved Consultancy for: management • Development of MIS • Redesigning of Reporting State System Development of MIS Training on and Training on the Forms Department improvement (software) application of MIS application of MIS at all • Training on MIS and use of (UDD) levels of the UDD, the Reporting Forms development • Study on training needs authorities, and other assessment and preparation relevant agencies. of need specific training modules, course design, and Modernization and Preparation of manual Training on the use of training materials. streamlining of reporting on modernized the modernized forms format reporting formats Skill Develop target group Engage reputed training upgradation specific training modules institutes for imparting addressed to upgradation training at all levels of of the skill for data the department this will analysis, information be a continuous process management, forward planning and policy formation. Initiation of the process Construction of training needed for establishing a institute’s building Operationally the state urban training complex training institute institute. Recruitment of staff Municipalities Capacity Training needs assessment Developing target group Organize training building in respect of elected specific training programmes (a functionaries, technical modules. continuous process) officers, administrative Year-wise outputs Design Phase I II III IV Support from BUDP officers and accounts Designing of training officers, and lower level courses. staff. Preparation of training materials (continuous process) Identification of training institute that will impart Impart training on training until a state priority areas with the training institute is help of the Centre for established. Good Governance. Appendix 16: Economic Internal Rate of Return EIRR 1 Patna Water Supply Benefit Cost Sensitivity Labor cost Overhead Non- Saved Incrementa Total Investment OM Total Net Capital O&M Over- Benefits Worst One Year saved tank cost incrementa Purification l Benefit Cost Over- run by reduced by Scenario Delay (stand post saved l benefit Cost run by 20 20% 20% (all user) % combined) 1 2009 0 0 0 0 0 0 158,394 0 158,394 -158,394 -190,072 -158,394 -158,394 -190,072 2 2010 0 0 0 0 0 0 580,718 0 580,718 -580,718 -696,862 -580,718 -580,718 -696,862 -158,394 3 2011 0 0 0 0 0 0 753,669 0 753,669 -753,669 -904,403 -753,669 -753,669 -904,403 -580,718 4 2012 0 0 0 0 0 0 397,584 0 397,584 -397,584 -477,100 -397,584 -397,584 -477,100 -753,669 5 2013 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -397,584 6 2014 62,571 940,905 -18,063 109,634 122,580 1,217,627 0 24,850 24,850 1,192,777 1,192,777 1,187,807 949,251 944,281 0 7 2015 64,113 23,215 -18,509 112,343 125,635 306,797 0 24,850 24,850 281,947 281,947 276,977 220,588 215,618 1,192,777 8 2016 65,642 23,215 -18,950 115,046 129,418 314,371 0 24,850 24,850 289,521 289,521 284,551 226,647 221,677 281,947 9 2017 67,185 23,200 -19,395 117,751 132,733 321,473 0 24,850 24,850 296,623 296,623 291,653 232,328 227,358 289,521 10 2018 68,861 25,172 -19,879 120,683 162,902 357,739 0 24,850 24,850 332,889 332,889 327,919 261,341 256,371 296,623 11 2019 70,532 25,172 -20,361 123,615 173,090 372,047 0 24,850 24,850 347,197 347,197 342,227 272,788 267,818 332,889 12 2020 72,205 25,158 -20,844 126,547 177,548 380,613 0 24,850 24,850 355,763 355,763 350,793 279,641 274,671 347,197 13 2021 73,878 25,172 -21,327 129,470 182,033 389,225 0 24,850 24,850 364,375 364,375 359,405 286,530 281,560 355,763 14 2022 75,551 25,172 -21,810 132,412 220,266 431,591 0 24,850 24,850 406,741 406,741 401,771 320,423 315,453 364,375 15 2023 77,062 22,728 -22,247 135,942 222,388 435,874 0 24,850 24,850 411,024 411,024 406,054 323,849 318,879 406,741 16 2024 78,603 23,182 -22,692 139,473 224,280 442,847 0 24,850 24,850 417,997 417,997 413,027 329,428 324,458 411,024 17 2025 80,176 23,646 -23,145 143,003 225,943 449,622 0 24,850 24,850 424,772 424,772 419,802 334,848 329,878 417,997 18 2026 81,779 24,119 -23,608 146,534 272,852 501,675 0 24,850 24,850 476,825 476,825 471,855 376,490 371,520 424,772 19 2027 83,415 24,601 -24,080 150,064 274,298 508,298 0 24,850 24,850 483,448 483,448 478,478 381,788 376,818 476,825 20 2028 85,083 25,093 -24,562 153,595 275,472 514,681 0 24,850 24,850 489,831 489,831 484,861 386,895 381,925 483,448 Total 1,106,656 1,279,748 -319,474 1,956,112 2,921,437 6,944,479 1,890,365 372,750 2,263,115 4,681,364 4,303,291 4,606,814 3,292,469 2,839,846 4,191,534 NPV @ 12% 272,530 557,624 -78,675 479,745 659,646 1,890,871 1,393,486 96,037 1,489,523 401,348 122,650 382,140 23,173 -274,731 350,568 EIRR Base EIRR 16.0% Sensitivity SI SV Capital Cost Over-run by 20% 12.0% 13.1% 1.8 54.1% O&M Cost over-run by 20% 12.0% 15.8% 0.1 1092.9% Benefits reduced by 20% 12.0% 12.2% 2.5 39.6% Worst Scenario (all three) 12.0% 9.5% One Year Delay in Implementation 15.6% EIRR 2 Patna Sewerage and Sanitation Benefit Cost Sensitivity Saved Saved Septic tank Septic tank Total Investmen OM Total Net Capital Cost O&M Over- Benefits Worst One Year disability medical cost capital cost OM cost t Over-run by run by reduced by Scenario Delay days saved saved 20 % 20% 20% (all combined) 1 2009 0 0 0 0 0 133,726 0 133,726 -133,726 -160,471 -133,726 -133,726 -160,471 2 2010 0 0 0 0 0 263,819 0 263,819 -263,819 -316,582 -263,819 -263,819 -316,582 -133,726 3 2011 0 0 0 0 0 374,266 0 374,266 -374,266 -449,119 -374,266 -374,266 -449,119 -263,819 4 2012 0 0 0 0 0 326,865 0 326,865 -326,865 -392,238 -326,865 -326,865 -392,238 -374,266 5 2013 0 0 0 0 0 36,202 0 36,202 -36,202 -43,443 -36,202 -36,202 -43,443 -326,865 6 2014 12,366 137,075 489,250 14,678 653,368 0 38,700 38,700 614,668 614,668 606,928 483,995 476,255 -36,202 7 2015 12,559 139,218 7,650 14,907 174,334 0 38,700 38,700 135,634 135,634 127,894 100,768 93,028 614,668 8 2016 12,753 141,361 7,650 15,137 176,901 0 38,700 38,700 138,201 138,201 130,461 102,821 95,081 135,634 9 2017 12,946 143,505 7,650 15,366 179,467 0 38,700 38,700 140,767 140,767 133,027 104,873 97,133 138,201 10 2018 13,477 149,388 21,000 15,996 199,861 0 38,700 38,700 161,161 161,161 153,421 121,189 113,449 140,767 11 2019 14,008 155,272 21,000 16,626 206,906 0 38,700 38,700 168,206 168,206 160,466 126,825 119,085 161,161 12 2020 14,539 161,156 21,000 17,256 213,950 0 38,700 38,700 175,250 175,250 167,510 132,460 124,720 168,206 13 2021 15,069 167,039 21,000 17,886 220,995 0 38,700 38,700 182,295 182,295 174,555 138,096 130,356 175,250 14 2022 15,600 172,923 21,000 18,516 228,039 0 38,700 38,700 189,339 189,339 181,599 143,731 135,991 182,295 15 2023 16,198 179,550 23,655 19,226 238,629 0 38,700 38,700 199,929 199,929 192,189 152,203 144,463 189,339 16 2024 16,796 186,178 23,655 19,935 246,564 0 38,700 38,700 207,864 207,864 200,124 158,551 150,811 199,929 17 2025 17,394 192,805 23,655 20,645 254,499 0 38,700 38,700 215,799 215,799 208,059 164,899 157,159 207,864 18 2026 17,992 199,433 23,655 21,355 262,434 0 38,700 38,700 223,734 223,734 215,994 171,247 163,507 215,799 19 2027 18,590 206,060 23,655 22,064 270,369 0 38,700 38,700 231,669 231,669 223,929 177,595 169,855 223,734 20 2028 18,903 209,533 12,395 22,436 263,267 0 38,700 38,700 224,567 224,567 216,827 171,914 164,174 231,669 Total 229,189 2,540,496 747,870 272,028 3,789,583 1,134,877 580,500 1,715,377 2,074,206 1,847,231 1,958,106 1,316,289 973,214 1,849,639 NPV @ 12% 55,199 611,864 303,209 65,516 1,035,789 824,378 149,563 973,941 61,848 -103,028 31,935 -145,310 -340,098 38,568 EIRR Base EIRR 13.1% Sensitivity SI SV Capital Cost Over-run by 20% 12.0% 10.4% 2.2 45.5% O&M Cost over-run by 20% 12.0% 12.6% 0.4 284.4% Benefits reduced by 20% 12.0% 9.2% 3.6 28.0% Worst Scenario (all three) 12.0% 6.1% One year del1y in implementation 12.7% EIRR 3 Gaya Water Supply Benefit Cost Sensitivity Labor cost Overhead Non- Saved Incrementa Total Investment OM Total Net Capital O&M Over- Benefits Worst One Year saved tank cost incrementa purification l Benefit Cost Over- run by reduced by Scenario Delay (stand post saved l benefit cost run by 20 20% 20% (all user) % combined) 1 2009 0 0 0 0 0 0 21,780 0 21,780 -21,780 -26,136 -21,780 -21,780 -26,136 2 2010 0 0 0 0 0 0 79,028 0 79,028 -79,028 -94,834 -79,028 -79,028 -94,834 -21780.41 3 2011 0 0 0 0 0 0 51,639 0 51,639 -51,639 -61,967 -51,639 -51,639 -61,967 -79028.22 4 2012 0 0 0 0 0 0 48,032 0 48,032 -48,032 -57,638 -48,032 -48,032 -57,638 -51638.96 5 2013 0 0 0 0 0 0 19,921 0 19,921 -19,921 -23,905 -19,921 -19,921 -23,905 -48031.88 6 2014 8,733 71,197 -2,334 38,637 5,744 121,978 0 6,458 6,458 115,519 115,519 114,227 91,124 89,832 -19920.64 7 2015 7,498 3,749 -2,004 39,493 6,310 55,046 0 6,458 6,458 48,587 48,587 47,295 37,578 36,286 115519.18 8 2016 6,263 3,749 -1,674 40,349 6,696 55,383 0 6,458 6,458 48,924 48,924 47,632 37,848 36,556 48587.149 9 2017 5,027 3,749 -1,344 41,204 7,072 55,709 0 6,458 6,458 49,251 49,251 47,959 38,109 36,817 48924.152 10 2018 3,647 3,749 -975 42,122 8,901 57,444 0 6,458 6,458 50,986 50,986 49,694 39,497 38,205 49250.658 11 2019 2,267 3,749 -606 43,039 9,297 57,747 0 6,458 6,458 51,288 51,288 49,997 39,739 38,447 50986.064 12 2020 887 3,749 -237 43,957 9,697 58,052 0 6,458 6,458 51,594 51,594 50,302 39,983 38,692 51288.236 13 2021 887 3,749 -237 44,874 10,311 59,585 0 6,458 6,458 53,126 53,126 51,834 41,209 39,918 51593.935 14 2022 887 3,749 -237 45,792 12,769 62,960 0 6,458 6,458 56,501 56,501 55,209 43,909 42,618 53126.133 15 2023 887 3,749 -237 46,894 13,158 64,451 0 6,458 6,458 57,992 57,992 56,701 45,102 43,810 56501.159 16 2024 887 3,749 -237 47,996 13,541 65,936 0 6,458 6,458 59,477 59,477 58,186 46,290 44,999 57992.306 17 2025 887 3,749 -237 49,098 13,919 67,415 0 6,458 6,458 60,957 60,957 59,665 47,474 46,182 59477.464 18 2026 887 3,749 -237 50,200 17,148 71,746 0 6,458 6,458 65,288 65,288 63,996 50,939 49,647 60956.631 19 2027 887 3,749 -237 51,301 17,586 73,286 0 6,458 6,458 66,828 66,828 65,536 52,171 50,879 65287.817 20 2028 887 3,749 -237 52,403 18,018 74,820 0 6,458 6,458 68,361 68,361 67,069 53,397 52,106 66828.061 Total 41,415 123,683 -11,070 677,359 170,169 1,001,556 220,400 96,876 317,276 684,280 640,200 664,905 483,969 420,514 615,919 NPV @ 12% 15,343 48,660 -4,101 166,930 36,803 263,634 161,032 24,960 185,991 77,643 45,436 72,651 24,916 -12,282 70,556 EIRR Base EIRR 18.0% Sensitivity SI SV Capital Cost Over-run by 20% 12.0% 15.1% 1.6 62.1% O&M Cost over-run by 20% 12.0% 17.7% 0.2 618.6% Benefits reduced by 20% 12.0% 14.1% 2.3 42.9% Worst Scenario (all three) 12.0% 11.1% One Year Delay in Implementation 17.7%