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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 KOCHI 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 KOCHI 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 2 2.3.1 Sectoral Growth 2 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 8 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 10 3.2.6 Education 11 3.3 Access to Services 11 3.3.1 Water Supply 11 3.3.2 Sanitation 11 3.3.3 Urban Drainage 12 3.3.4 Solid Waste Disposal 12 3.3.5 Roads, Street Lighting & Access to Public Transport 12 4. POVERTY AND VULNERABILITY 13 4.1 Overview 13 4.1.1 Employment 14 4.1.2 Financial Capital 14 4.1.3 Poverty Alleviation in Kochi 14 5. INSTITUTIONS, MANAGEMENT AND CAPACITY 15 5.1 Decentralization 15 5.2 Service Delivery and Inter-Agency Coordination 15 5.3 Organization Structure of the Municipal Corporation 17 FR Volume 2 - City Report - Kochi PAGE i TA 4106 –IND: Kerala Sustainable Urban Development Project Project Preparation 5.3.1 Deliberative/Executive Wing 17 5.3.2 Administrative Wing 18 5.4 Capacity Building 21 6. MUNICIPAL FINANCE 24 6.1 Municipal Fund 24 6.2 Revenue Account 24 6.2.1 Revenue Receipts 26 6.2.2 Revenue Expenditures 32 6.3 Capital Account 33 6.3.1 Capital Receipts 34 6.3.2 Capital Expenditures 34 6.4 Key Financial Issues 35 6.5 Kerala Water Authority Finance 36 6.5.1 Mandate and Sources of Finance 36 6.5.2 Cost Recovery 37 6.5.3 KWA Financial Performance in Kochi 38 6.5.4 Key KWA Financial Issues 39 7. URBAN PLANNING AND LAND USE MANAGEMENT 41 7.1 Planning Efforts in the Past 41 7.2 Land Use Management 42 7.2.1 Land Use Pattern 42 7.2.2 Development Pattern 43 7.2.3 Key Issues 45 8. SUBPROJECT RATIONALE - NEED AND DEMAND 46 8.1 Approach to Subproject Selection 46 8.1.1 Municipal Corporation Priorities 46 8.1.2 Community Priorities 46 8.2 Subproject Objectives and Component Selection Criteria 46 9. URBAN INFRASTRUCTURE SERVICES 47 9.1 Water Supply 47 9.1.1 Development of Water Supply 47 9.1.2 Treatment and Transmission 47 9.1.3 Storage and Distribution System 48 9.1.4 Unaccounted for Water 50 9.1.5 Existing Water Tariff and Collection Performance 50 9.1.6 Operation and Maintenance 51 9.1.7 Proposed Water Supply Project 51 9.2 Sanitation and Sewerage 55 9.2.1 Existing Sewerage System 55 9.2.2 Existing Sanitation System 56 9.2.3 Service Adequacy and Key Issues 57 9.2.4 Design Criteria 58 9.2.5 O&M Staff Requirements 58 9.2.6 Project Identification 58 9.3 Urban Drainage 61 9.3.1 Existing Situation, Service Adequacy and Key Issues 61 9.3.2 Project Identification 62 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 74 FR Volume 2 - City Report - Kochi PAGE ii TA 4106 –IND: Kerala Sustainable Urban Development Project Project Preparation 9.5.1 Overview 74 9.5.2 Existing Roads 76 9.5.3 Urban Travel Demand and Traffic Characteristics 80 9.5.4 Road Safety 84 9.5.5 Existing Street Lighting 85 9.5.6 Existing Access to Public Transport 86 9.5.7 Roads and Transportation Scheme Selection 87 10. THE PROPOSED SUB-PROJECT 89 10.1 Project Purpose 89 10.2 Part A: Urban Infrastructure Improvement 89 10.2.1 Water Supply Component 89 10.2.2 Sewerage and Sanitation Component 90 10.2.3 Urban Drainage Component 92 10.2.4 Solid Waste Management Component 96 10.2.5 Roads and Transportation Component 98 10.3 Part B: Urban Management and Institutional Development 98 10.3.1 State Level Institutional Development 100 10.3.2 Municipal Corporation Institutional Development 100 10.3.3 Municipal Staff Training 100 10.3.4 Poverty Alleviation 101 10.4 Part C: Implementation Assistance 101 11. CITY SUB-PROJECT IMPLEMENTATION 102 11.1 Executing and Implementing Agencies 102 11.1.1 Executing Agency 102 11.1.2 Implementing Agencies 102 11.2 Project Management 103 11.2.1 Project Management Office 103 11.2.2 Project Implementation Units 103 11.2.3 Project Management and Design Consulting Services 103 11.3 Procurement and Disbursement Procedure 106 11.3.1 Procurement of Goods and Works 106 11.3.2 Disbursement Procedures 106 11.4 Procurement Packages and Implementation 107 11.4.1 Procurement Packages 107 11.4.2 Implementation Schedule 107 11.5 Reports, Accounting and Auditing Requirement 108 11.5.1 Reporting Requirement 108 11.5.2 Accounting 108 11.5.3 Auditing 108 11.6 Project Review 108 11.7 Project Performance Monitoring System 109 11.8 Long-Term Sustainability 109 12. COST ESTIMATES AND FINANCING PLAN 110 12.1 Cost Estimates 110 12.2 Financing Plan 111 13. FINANCIAL ANALYSIS 112 13.1 General 112 13.2 Assumptions Used in Financial Projections 112 13.3 Cost Recovery 114 13.4 Financial Internal Rate of Return 115 13.5 Average Incremental Financial Cost and Subsidy 117 FR Volume 2 - City Report - Kochi PAGE iii TA 4106 –IND: Kerala Sustainable Urban Development Project Project Preparation 13.6 Beneficiary Affordability 118 13.7 Project Sustainability 119 14. SUB-PROJECT RISKS AND ASSUMPTIONS 121 14.1 Physical Component Risks 121 14.2 Policy Risks 121 14.3 Institutional Risks 121 14.4 Social Risks 122 14.5 Financial Risks 122 14.6 Economic Risks 122 FR Volume 2 - City Report - Kochi 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 Action Plan Annex E Financial Analysis FR Volume 2 - City Report - Kochi PAGE v TA 4106 –IND: Kerala Sustainable Urban Development Project Project Preparation List of Tables Table 2-1: Trends in District Net Domestic Product for Ernakulam District 5 Table 2-2: Population Growth and Projections 7 Table 5-1: Staffing Pattern of Kochi Municipal Corporation 20 Table 6-1: Revenue Account (Rs. Million) 25 Table 6-2: Property Tax -Rate Schedule 29 Table 6-3: Property Tax – Demand & Collection (Rs. Million) 29 Table 6-4: Profession Tax – Demand and Collection (Rs. Million) 30 Table 6-5: Capital Account (Rs. Million) 33 Table 6-6: KWA Water Tariff Schedule 37 Table 6-7: KWA Sewerage Connection Fee 38 Table 6-8: Kochi Water and Sewerage Operations – Income and Expenditure (Rs. Million) 38 Table 7-1: Development Plan (1976) Proposals and Status 42 Table 7-2: Existing and Proposed Land Use in Kochi Corporation 43 Table 8-1: Kochi Municipal Corporation Priorities 46 Table 8-2: Kochi - Community Municipal Service Priorities 46 Table 9-1: Details of Water Production Schemes 47 Table 9-2: Water Supply Connections 48 Table 9-3: Water Supply Design Parameters 52 Table 9-4: Water Supply Demand and Source Development 52 Table 9-5: Water Supply and Consumer Projections 53 Table 9-6: Existing Pumping Station Details 55 Table 9-7: Sanitation System in Kochi 56 Table 9-8: STP Technology and Site Requirements 60 Table 9-9: Details of Drains in Kochi 61 Table 9-10: Agencies Responsible for Drainage 62 Table 9-11: Solid Waste Generation in Kochi (2001) 67 Table 9-12: Physical Composition of Waste 67 Table 9-13: Preliminary Requirement for Integrated SWM System 73 Table 9-14: Road Network in Kochi City 76 Table 9-15: Classification of Major Roads in Kochi 76 Table 9-16: Distribution of Road Network as per Right of Way (ROW) 77 Table 9-17: Speed and Delay Characteristics at Selected Links 78 Table 9-18: Traffic Growth Rate during 1991-2004 78 Table 9-19: Details of Committed Transportation Projects – Kochi 79 Table 9-20: Peak Hour Traffic Distribution at Selected Locations 80 Table 9-21: Peak-hour Traffic Volume on Selected Road Stretches - 2004 82 Table 9-22: Peak-Hour Turning Traffic at Selected Junctions 83 Table 9-23: Peak On-Street Parking Accumulation 83 FR Volume 2 - City Report - Kochi PAGE vi TA 4106 –IND: Kerala Sustainable Urban Development Project Project Preparation Table 9-24: Mid-Block Pedestrian Count at Selected Locations 84 Table 9-25: Details of Road Accidents - Ernakulam District 85 Table 9-26 Details of Street Lights Availability at Selected Road Sections 85 Table 9-27: Details of Urban Transport Proposals – Kochi City 87 Table 11-1: Proposed Contract Packages - Kochi 107 Table 12-1: Summary of Sub-Project Cost Estimate 110 Table 12-2: City ρLevel Financing Plan (Rs.
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