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Kerala Sustainable Urban Development Project

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Kerala Sustainable Urban Development Project Government of Kerala Local Self Government Department Kerala Sustainable Urban Development Project (PPTA 4106 – IND) FINAL REPORT VOLUME 2 - CITY REPORT KOLLAM MAY 2005 COPYRIGHT: The concepts and information contained in this document are the property of ADB & Government of Kerala. Use or copying of this document in whole or in part without the written permission of either ADB or Government of Kerala constitutes an infringement of copyright. TA 4106 –IND: Kerala Sustainable Urban Development Project Project Preparation FINAL REPORT VOLUME 2 – CITY REPORT KOLLAM Contents 1. BACKGROUND AND SCOPE 1 1.1 Introduction 1 1.2 Project Goal and Objectives 1 1.3 Study Outputs 1 1.4 Scope of the Report 1 2. CITY CONTEXT 2 2.1 Geography and Climate 2 2.2 Population Trends and Urbanization 2 2.3 Economic Development 5 2.3.1 Sectoral Growth 5 2.3.2 Industrial Development 6 2.3.3 Tourism Growth and Potential 6 2.3.4 Growth Trends and Projections 7 3. SOCIO-ECONOMIC PROFILE 8 3.1 Introduction 8 3.2 Household Profile 9 3.2.1 Employment 9 3.2.2 Income and Expenditure 9 3.2.3 Land and Housing 10 3.2.4 Social Capital 10 3.2.5 Health 11 3.2.6 Education 11 3.3 Access to Services 12 3.3.1 Water Supply 12 3.3.2 Sanitation 12 3.3.3 Drainage 12 3.3.4 Solid Waste Disposal 13 3.3.5 Roads, Street Lighting & Access to Public Transport 13 4. POVERTY AND VULNERABILITY 14 4.1 Overview 14 4.1.1 Employment 15 4.1.2 Financial Capital 15 4.1.3 Poverty Alleviation in Kollam 15 4.1.4 Gender Development 16 5. INSTITUTIONS, MANAGEMENT AND CAPACITY 17 5.1 Decentralization 17 FR Volume 2 - City Report - Kollam PAGE i TA 4106 –IND: Kerala Sustainable Urban Development Project Project Preparation 5.2 Service Delivery and Inter-Agency Coordination 17 5.3 Organization Structure of the Municipal Corporation 19 5.3.1 Deliberative / Executive Wing 19 5.3.2 Administrative Wing 20 5.4 Capacity Building 22 6. MUNICIPAL FINANCE 27 6.1 Municipal Fund 27 6.2 Revenue Account 27 6.2.1 Revenue Receipts 29 6.2.2 Revenue Expenditures 35 6.3 Capital Account 36 6.3.1 Capital Receipts 37 6.3.2 Capital Expenditures 37 6.4 Key Financial Issues 38 6.5 Kerala Water Authority Finance 39 6.5.1 Mandate and Sources of Finance 39 6.5.2 Cost Recovery 40 6.5.3 KWA Financial Performance in Kollam 41 6.5.4 Key KWA Financial Issues 42 7. URBAN PLANNING AND LAND USE MANAGEMENT 44 7.1 Urban Planning and Land Use Management 44 7.1.1 Planning Efforts in Past 44 7.1.2 Land Use Pattern 45 7.1.3 Development Pattern 46 7.2 Key Issues 46 8. SUB-PROJECT RATIONALE - NEED AND DEMAND 49 8.1 Approach to Sub-Project Component Selection 49 8.1.1 Municipal Corporation Priorities 49 8.1.2 Community Priorities 49 8.2 Sub-Project Objectives and Component Selection Criteria 49 9. URBAN INFRASTRUCTURE SERVICES 50 9.1 Water Supply 50 9.1.1 Development of Water Supply Sources 50 9.1.2 Treatment and Transmission 51 9.1.3 Storage and Distribution 51 9.1.4 Unaccounted For Water (UFW) 53 9.1.5 Existing Water Tariff Rates and Collection Performance 53 9.1.6 Operation and Maintenance 54 9.1.7 Water Supply Component Identification 54 9.2 Sanitation and Sewerage 58 9.2.1 Existing Sewerage / Sanitation System 58 9.2.2 Key Issues / Service Adequacy 58 9.2.3 Sewage Treatment Plant Location and Discharge 59 9.2.4 Sewerage Component Identification 61 9.3 Stormwater Drainage 64 9.3.1 Existing Situation, Service Adequacy and Key Issues 64 FR Volume 2 - City Report - Kollam PAGE ii TA 4106 –IND: Kerala Sustainable Urban Development Project Project Preparation 9.3.2 Drainage Component Identification 65 9.4 Solid Waste Management 66 9.4.1 Present Situation Analysis -Municipal Solid Waste 66 9.4.2 Proposed Solid Waste Management Component 69 9.5 Roads and Transportation 72 9.5.1 Overview 72 9.5.2 Existing Roads 74 9.5.3 Urban Travel Demand and Traffic Characteristics 77 9.5.4 Road Safety 80 9.5.5 Existing Street Lighting 81 9.5.6 Existing Access to Public Transport 81 9.5.7 Roads and Transportation Scheme Selection 82 10. THE PROPOSED SUB-PROJECT 84 10.1 Project Purpose 84 10.2 Part A: Urban Infrastructure Improvement 84 10.2.1 Water Supply Component 84 10.2.2 Sewage and Sanitation Component 85 10.2.3 Urban Drainage Component 87 10.2.4 Solid Waste Management Component 90 10.2.5 Roads and Transportation Component 90 10.3 Part B: Urban Management and Institutional Development 91 10.3.1 State Level Institutional Development 93 10.3.2 Municipal Corporation Institutional Development 93 10.3.3 Municipal Staff Training 93 10.3.4 Poverty Alleviation 94 10.4 Part C: Implementation Assistance 94 11. CITY SUB-PROJECT IMPLEMENTATION 95 11.1 Executing and Implementing Agencies 95 11.1.1 Executing Agency 95 11.1.2 Implementing Agencies 95 11.2 Project Management 96 11.2.1 Project Management Office 96 11.2.2 Project Implementation Units 96 11.2.3 Project Management and Design Consulting Services 96 11.3 Procurement and Disbursement Procedure 99 11.3.1 Procurement of Goods and Works 99 11.3.2 Disbursement Procedures 99 11.4 Procurement Packages and Implementation 100 11.4.1 Procurement Packages 100 11.4.2 Implementation Schedule 100 11.5 Reports, Accounting and Auditing Requirement 101 11.5.1 Reporting Requirement 101 11.5.2 Accounting 101 11.5.3 Auditing 101 11.6 Project Review 101 11.7 Project Performance Monitoring System 102 11.8 Long-Term Sustainability 102 FR Volume 2 - City Report - Kollam PAGE iii TA 4106 –IND: Kerala Sustainable Urban Development Project Project Preparation 12. COST ESTIMATES AND FINANCING PLAN 103 12.1 Cost Estimates 103 12.2 Financing Plan 104 13. FINANCIAL ANALYSIS 105 13.1 General 105 13.2 Assumptions Used in Financial Projections 105 13.3 Cost Recovery 107 13.4 Financial Internal Rate of Return 108 13.5 Average Incremental Financial Cost and Subsidy 110 13.6 Beneficiary Affordability 111 13.7 Project Sustainability 112 14. SUB-PROJECT RISKS AND ASSUMPTIONS 114 14.1 Physical Component Risks 114 14.2 Policy Risks 114 14.3 Institutional Risks 114 14.4 Social Risks 115 14.5 Financial Risks 115 14.6 Economic Risks 115 FR Volume 2 - City Report - Kollam PAGE iv TA 4106 –IND: Kerala Sustainable Urban Development Project Project Preparation List of Annexes Annex A Proposed Procurement Packages Annex B Sub-Project Implementation Schedule Annex C Sub-Project Cost Estimates and Financing Plan Annex D Financial Improvement and Action Plan Annex E Financial Analysis FR Volume 2 - City Report - Kollam PAGE v TA 4106 –IND: Kerala Sustainable Urban Development Project Project Preparation List of Tables Table 2-1: Kollam District NDP 5 Table 2-2: Kollam - Population Growth and Projections 7 Table 5-1: Staffing Pattern of Kollam Municipal Corporation 21 Table 5-2: Staff distribution in Kollam MC Zonal Offices 25 Table 6-1: Revenue Account (Rs. Million) 28 Table 6-2: Property Tax - Rate Schedule 32 Table 6-3: Property Tax - Demand & Collection (Rs. Million) 32 Table 6-4: Profession Tax – Demand & Collection (Rs. Million) 33 Table 6-5: Capital Account (Rs. Million) 36 Table 6-6: KWA Water Tariff Schedule 40 Table 6-7: KWA Sewerage Connection Fee 41 Table 6-8: Kollam Water Operations – Income and Expenditure (Rs. Million) 41 Table 7-1: Development Plan (1986) Proposals and Status 44 Table 7-2: Existing and Proposed Land Use 45 Table 8-1: Kollam Municipal Corporation Priorities 49 Table 8-2: Kollam Community Municipal Service Priorities 49 Table 9-1: Water Supply Sources 50 Table 9-2: Water Supply Connections 51 Table 9-3: Water Supply Design Parameters 55 Table 9-4: Water Supply Demand and Source Development 55 Table 9-5: Water Supply and Consumer Projections 57 Table 9-6: Zone wise requirements for Sewage Treatment 63 Table 9-7: Agencies Responsible for Drainage O&M 64 Table 9-8: Solid Waste Generation in Kollam (2001) 66 Table 9-9: Preliminary Requirement for Integrated SWM System 71 Table 9-10: Road Network in Kollam City 74 Table 9-11: Speed and Delay Characteristics at Selected Links 76 Table 9-12: Traffic Growth Rate During 2000-04 76 Table 9-13: Estimated Peak Hour Traffic Distribution at Selected Locations 77 Table 9-14: Peak-hour Traffic Volume on Selected Road Stretches 78 Table 9-15: Peak Hour Traffic at Major Junctions 79 Table 9-16: Peak-Hour Turning Traffic at Selected Junctions - 2004 79 Table 9-17: Mid-Block Pedestrian Count at Selected Outer City locations 80 Table 9-18: Growth of Accidents in Kollam District 80 Table 9-19: Details of Street Lights Availability at Selected Road Sections 81 Table 9-20: List of Roads and Urban Transport Proposals for Kollam City 83 Table 11-1: Proposed Contract Packages - Kollam 100 Table 12-1: Summary of Sub-Project Cost Estimate 103 FR Volume 2 - City Report - Kollam PAGE vi TA 4106 –IND: Kerala Sustainable Urban Development Project Project Preparation Table 12-2: City Level Financing Plan (Rs. Million) 104 Table 13-1: Weighted Average Cost of Capital 108 Table 13-2: Summary of Financial Evaluation 109 Table 13-3: Average Incremental Financial Cost 110 Table 13-4: Subsidy Analysis 111 Table 13-5: Household Affordability Analysis 112 Table 13-6: Summary of Projected Financial Position 113 FR Volume 2 - City Report - Kollam PAGE vii TA 4106 –IND: Kerala Sustainable Urban Development Project Project Preparation List of Figures Figure 2-1 Geographical Location Pg 3 Figure 2-2 Population Density Pg 4 Figure 5-1 Organization Set-up of Kollam Municipal Corporation Pg 26 Figure 7-1 Growth Directions Pg 47 Figure 9-1 Water Transmission Map Pg 52 Figure 9-2 Solid Waste Management System Pg 68 Figure 10-1 Proposed Sewerage System Pg 86 Figure 10-2 Integrated STP and SWM Site Plan Pg 88 Figure 10-3 Urban
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