Completion Report Project Number: 35068 Loan Number: 1826 September 2008 India: Gujarat Earthquake Rehabilitation and Reconstruction Project CURRENCY EQUIVALENTS Currency Unit – Indian Rupee/s (Re/Rs) At Appraisal At Project Completion 14 March 2001 14 June 2007 Rs1.00 = $0.021478 $0.0226398 $1.00 = Rs46.56 Rs44.17 ABBREVIATIONS ADB – Asian Development Bank ADA – Area Development Authorities AIFC – Average Incremental Financial Cost AUDA – Ahmedabad Urban Development Authority BME – Benefit Monitoring and Evaluation COS – Country Operational Strategy DMMP – Disaster Management and Mitigation Program DSC – Design Supervision Consultant EA – Executing Agency EIA – Environmental Impact Assessment EMG – Extended Mission in Gujarat FIRR – Financial internal rate of return GEB – Gujarat Electricity Board GERI – Gujarat Energy Research Institute GSDMA – Gujarat State Disaster Management Authority GSDP – Gross State Domestic Product GUDC – Gujarat Urban Development Company GWIL – Gujarat Water Infrastructure Limited GWSSB – Gujarat Water Supply and Sewerage Board IA – Implementing Agency ICB – International competitive bidding IDA – International Development Association INRM – India Resident Mission JAR – Joint assessment report NCB – National Competitive Bidding NGO – Non-government organization OCR – Ordinary capital resources O&M – Operation and maintenance PRHD – Panchayats, Rural Housing and Rural Development Department PMC – Project Management Consultant RRP – Report and Recommendation of the President SGIA – Second Generation Imprest Account TA – Technical Assistance WACC – Weighted average cost of capital WEIGHTS AND MEASURES km – kilometer m – meter m2 – square meter m3 – cubic meter ppm – parts per million NOT ES (i) The fiscal year (FY) of the Government of India, and the Gujarat government and its agencies ends on 31 March. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2000 ends on 31 March 2000. (ii) In this report, "$" refers to US dollars. Vice President Xiaoyu Zhao, Vice-President, Operations 1 Director General K. Senga, South Asia Regional Department Director T. Kondo, Country Director, India Resident Mission (INRM) Team leader S. Muramoto, Head, Project Administration Unit, INRM Team members A. Srivastava, Project Implementation officer, INRM V. Vishal, Assistant Project Analyst, INRM CONTENTS Page BASIC DATA i MAP vi I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Project Outputs 3 C. Project Costs 6 D. Disbursements 7 E. Project Schedule 7 F. Implementation Arrangements 8 G. Conditions and Covenants 8 H. Related Technical Assistance 8 I. Consultant Recruitment and Procurement 9 J. Performance of Consultants, Contractors, and Suppliers 9 K. Performance of the Borrower and the Executing Agency 9 L. Performance of the Asian Development Bank 10 III. EVALUATION OF PERFORMANCE 11 A. Relevance 11 B. Effectiveness in Achieving Outcome 11 C. Efficiency in Achieving Outcome and Outputs 11 D. Preliminary Assessment of Sustainability 11 E. Impact 12 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 12 A. Overall Assessment 12 B. Lessons 13 C. Recommendations 14 APPENDIXES 1. Project Components and Outputs 16 2. Breakup of Foreign and Local Costs of ADB Financing 21 3. Allocation and/or Reallocation and Actual Disbursement 22 of ADB Financing By Category 4. Contract Awards and Disbursements 23 5. Summary of Contract Details 24 6. Project Implementation Arrangements 45 7. Status of Major Loan Covenants 47 8. Benefit Monitoring and Evaluation 49 9. Socio-cultural, Resettlement, and Environment Impacts 51 10. Technical Assistance Completion Report 52 11. Implementation Schedule: Appraisal–Ac tual 55 12. Selected Photographs 56 i BASIC DATA A. Loan Identification 1. Country India 2. Loan Number 1826 3. Project Title Gujarat Earthquake Rehabilitation and Reconstruction Project 4. Borrower India 5. Executing Agency Gujarat State Disaster Management Authority 6. Amount of Loan US$500 million. 7. Project Completion Report Number PCR:IND 1061 B. Loan Data 1. Appraisal – Date Started 12 February 2001 – Date Completed 28 February 2001 2. Loan Negotiations – Date Started 15 March 2001 – Date Completed 16 March 2001 3. Date of Board Approval 26 March 2001 4. Date of Loan Agreement 26 April 2001 5. Date of Loan Effectiveness – In Loan Agreement 24 July 2001 – Actual 17 May 2001 – Number of Extensions Nil 6. Closing Date – In Loan Agreement 30 June 2004 – Actual 06 November 2007 – Number of Extensions three 7. Terms of Loan – Interest Rate began as pool-based single currency with variable lending rate and changed to LIBOR-based lending from 02 April 2002 – Maturity (number of years) 30 years – Grace Period (number of years) 7 years ii 8. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 17 May 2001 06 November 2007 77 months Effective Date Original Closing Date Time Interval 17 May 2001 30 June 2004 37.5 months b. Amount ($ million} Category or Last Net Sub loan Original Revised Amount Amount Amount Undisbursed Allocation Allocation Canceled Available Disbursed Balance Part A: 200 12.50 187.50 12.50 12.35 0.15 Housing Part B: 173 248.74 (75.74) 248.74 238.38 10.36 Urban & Rural Infrastructure Part C: 67 31.00 36.00 31.00 30.90 0.10 Power Part D: 20 6.49 13.51 6.49 6.41 0.08 Livelihood Restoration Part E: 15 18.75 (3.75) 18.75 17.92 0.83 Consulting Services & Incremental Administrative Support Part F: Multi- 20 5.50 14.50 5.50 4.18 1.32 hazard Disaster Preparedness & Mitigation Front -End Fee 5 5.00 0.00 5.00 5.00 0.00 Total 500 327.98 172.02 327.98 315.14 12.84 9. Local Costs (Financed) - Amount ($ million) 209.58 - Percent of Local Costs 78.92 - Percent of Total Cost 66.50 LIBOR = London Interbank Offer Rate C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 112 56.73 Local Currency Cost 513 258.41 Total 625 315.14 iii 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 125 75.48 ADB Financed 500 315.14 Other External Financing 0 0 Total 625 391.62 IDC Costs Borrower Financed ADB Financed Other External Financing Total ADB = Asian Development Bank, IDC = interest during construction. 3. Cost Breakdown by Project Component ($ million) Component Appraisal Estimate Actual A. Housing 250 16.75 B. Urban and Rural Infrastructure 217 293.30 0 1. Urban 86 147.18 a. Equipment and Materials 16 3.12 b. Civil Works 70 144.06 2. Rural (Water Supply and Sanitation) 132 146.12 a. Equipment and Materials 28 103.50 b. Civil Works 104 42.62 C. Power 98 45.62 a. Equipment and Materials 86 41.82 b. Civil Works 12 3.80 D. Livelihood Rehabilitation 20 6.32 E. Consulting Services and Incremental Administrative 15 Support 19.36 F. Multi-hazard Disaster Preparedness and Mitigation 20 4.26 Front -End Fee 5 5.00 625 Total 390.61 iv 4. Project Schedule Item Appraisal Estimate Actual Date of Contract with Consultants (18 consultancies) First consultancy contract on 17 May 2001 and the last one on 8 September 2003 Completion of Engineering Designs Civil Works Contract Date of Award Retroactive contracts First—18 Jan 2002 from 12 Feb 2001 Completion of Work Last—Dec 2003 Last—14 June 2007 Equipment and Supplies Dates First Procurement Retroactive contracts 27 June 2002 from 12 Feb 2001 Last Procurement Last—Dec 2003 14 March 2005 Completion of Equipment Installation Dec 2003 Dec 2005 Start of Operations Completion of Tests and Commissioning Jan 2006 Beginning of Start-Up Jan 2006 5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress 01 March 2002 to 31 December 2002 S S 01 January 2003 to 30 June 2003 S HS 01 July 2003 to 28 February 2004 S S 01 March 2004 to 30 November 2006 S PS 01 December 2006 to 31 January 2008 S S S= satisfactory, HS= highly satisfactory, PS= partially satisfactory D. Data on Asian Development Bank Missions Mission Type Staff Mission Start Date Mission End Date Actual Field Days Planned Days Review PS 05-02-2001 05-02-2001 1 0 Inception SC 28-05-2001 30-05-2001 6 3 Inception PS 28-05-2001 30-05-2001 6 3 Inception 29-05-2001 0 2 Review PS 21-06-2001 22-06-2001 4 2 Review SC 27-06-2001 0 0 Review PS 07-09-2001 07-09-2001 2 1 Disbursement PS 07-09-2001 07-12-2001 4 4 Review PS 09-12-2001 13-09-2001 2 2 Review PS 09-12-2001 13-09-2001 4 0 Review PS 18-10-2001 19-10-2001 2 2 Review PS 28-11-2001 29-11-2001 4 2 Review PS 15-01-2002 17-01-2002 3 3 v Mission Type Staff Mission Start Date Mission End Date Actual Field Days Planned Days Review PS 04-02-2002 04-02-2002 1 1 Review PS 13-05-2002 13-05-2002 1 1 Disbursement PS 06-10-2002 15-06-2002 6 6 Review PS 09-02-2002 09-02-2002 1 1 Review PS 10-07-2002 10-07-2002 1 1 Review PS 26-11-2002 26-11-2002 1 1 Disbursement SC 17-02-2003 27-02-2003 22 0 Disbursement NO 17-02-2003 27-02-2003 11 0 Disbursement AS 17-02-2003 27-02-2003 11 0 Review PS 14-05-2003 16-05-2003 3 0 Review SC 14-05-2003 16-05-2003 6 0 Review SC 09-01-2003 09-01-2003 2 1 Review PS 22-10-2003 22-10-2003 1 1 Review PS 15-03-2004 27-03-2004 26 13 Review SC 15-03-2004 27-03-2004 26 13 Review PS 31-03-2004 04-01-2004 4 2 Review AS 31-03-2004 04-01-2004 2 2 Disbursement NO 07-12-2004 21-07-2004 10 10 Review AS 07-12-2004 21-07-2004 10 0 Review PS 09-07-2004 09-08-2004 2 1 Review PS 11-02-2004 11-03-2004 2 1 Review SC 11-02-2004 11-03-2004 4 0 Review PS 04-04-2005 04-08-2005 5 0 Review AS 04-04-2005 04-08-2005 5 0 Disbursement NO 13-06-2005 21-06-2005 9 0 Disbursement