Preparatory Survey on Imphal Water Supply Improvement Project Final Report Chapter 6 Management, Operation and Maintenance of the Improved Imphal Water Supply System The provision of adequate, reliable and safe water supply services to the people of Imphal City requires an appropriate organisation and operating structure, as well as human resources that are ready, capable, and skilled to manage, operate and maintain and perform the required works during the construction stage and after project completion. For PHED Urban Circle, to become a self-supporting organisation that can achieve its legal mandates requires institutional development. This is basically an internal process that not only focuses on improving the physical infrastructure side, but also puts equal effort on enhancing the organisational infrastructure side. Because institutional processes are cyclical, dynamic and constantly changing, analysis should be on going, recognizing that how activities are performed is just as important as what they are meant to achieve. This chapter examines the requirements during works construction and proposes a project implementation structure and personnel system to ensure that the project is implemented as intended. It also assesses the management, operation and management system requirements after project completion. It is not enough for the project to be successfully implemented; but project gains have to be sustained through organisational development. This entails PHED Urban Circle to have the appropriate structure that clearly delineates and describes unit and individual roles, responsibility, and accountability, as well as defines authority, coordinative and communications flows, from the top to bottom (horizontally) and across (vertically) the entire organization spectrum. The chapter concludes with the formulation of institutional / organisational improvement action plans on specific operational areas of PHED water supply functions and services. On the issue of financial self-reliance, action plans are proposed to strengthen financial and asset management, streamline tariff revision, and to improve the collection system and customer service. The preparation of financial statements and the long-term annual business plan is seen to support PHED in operating in a self-sufficient manner. Since organisational improvement involves people (human resources) and developing their capacities to perform at optimum levels, an action plan on human resources / personnel management is also proposed. Lastly, institutional improvement also necessitates having codified policies and procedures (management systems) to ensure high standards of efficiency and effectiveness, thus action plans for improving the management information system, reducing non-revenue water, and water meter installation are proposed. 6.1 Project Implementation during Construction Works Ensuring the successful implementation of the Imphal Water Supply Improvement Project entails setting up a project implementation system that would take into consideration the mutual agreements between both the lender, the Government of Japan (GOJ) through the Japan International Cooperation Agency (JICA), 6-1 Preparatory Survey on Imphal Water Supply Improvement Project Final Report and the borrower, the Government of India (GOI) with the implementing agency as the Public Health Engineering Department of the State of Manipur. This section addresses how to set up the project implementation / organisation system during construction works by: (i) Examining and identifying the institutions / stakeholders that would be involved in project; (ii) Establishing the project organisations and the framework of project implementation; (iii) Defining and /or clarifying roles and responsibilities in project implementation; (iv) Setting up the project implementation unit, including personnel requirements to manage and/or support smooth project implementation and completion. 6.1.1 Experience in Project Implementation The PHED Urban Circle has had its share of implementing water supply projects under the Project Construction Division (PCD). However, for the last 10 years, there has been no new construction under the Urban Circle. That is why the PCD has moved from “project construction” to operating and maintaining the plants and schemes it had constructed.1 In this respect, it is functioning just like the Maintenance I and Maintenance II divisions, although it has kept its original division’s name of “Project Construction Division.” Of late, the PHED Urban Circle is undertaking another project implementation work. However, it is the Drainage and Sewerage Division (D&S) that is involved since the undertaking is a sewerage project. This sewerage project, which is the first for the State of Manipur and the entire Northeast region, is 60% completed, and will cover / service one-third of Imphal City when fully operational. The target completion date is by the end of 2014, but according to the Chief Engineer, Mr. Sunil Singh, the project will still see completion in two years’ time.2 (1) French-assisted Sewerage Project The French-assisted sewerage project was proposed for implementation in 2003 at a cost of 93.21 Crores. However, when it took off in 2007, the revised cost for the project came up to 292 Crores. It is a multi-funded project since it is partially funded by the French for a total of 45 Crores, although given “in kind”, in the form of machineries, equipment and technical knowhow provided by two French companies, AquaTechnique and Degremont. The remaining balance is being funded out of central government funds, at 90%, and state funds, at 10%. It was through the release of state funds that civil work on the project commenced. 1 Interview with Mr. O. Debendra Singh, Executive Engineer, Project Construction Division, PHED Urban Circle, 6 June 2014. 2 Interview with Mr. Sunil Singh, (then Additional) Chief Engineer, Public Health Engineering Department (PHED), Government of Manipur, 09 June 2014. 6-2 Preparatory Survey on Imphal Water Supply Improvement Project Final Report On the project implementation side, French engineers assist when required – two engineers from AquaTechnique who assist in supervising the construction of the pumping stations and collector networks and four engineers from Degremont who supervise the construction of the treatment plant. Construction has been contracted to an Indian firm with D&S Division providing construction supervision work. There is no formal project implementation unit or “PIU” for this project as it is the entire D&S Division that is involved. Thus, it is safe to assume, therefore, that the “PIU” is D&S Division headed by the Executive Engineer and three Assistant Engineers (AE). One AE is assigned solely for the sewerage treatment plant. Assisting the AEs are 12 section officers, with four SOs assigned to the sewerage treatment plant.3 (2) PHED-Constructed Water Supply Schemes The PHED has had numerous experiences in project implementation as demonstrated in the water supply schemes and treatment plants constructed under the purview of the Project Construction Division (PCD). These are the Porompat Water Treatment Plant, Chinga Water Supply Scheme, Moirangkhom Water Supply Scheme, Irilbung Water Treatment Plant, Singda Water Treatment Plant, and the Extension of Kangchup Treatment Plant. The experience gained from these projects by PCD technical staff is quite extensive, considering that project implementation work encompassed or ranged from survey works, to design and construction supervision. The only setback is that no new construction work has come in since the last 10 years, leaving staff with no fresh opportunity to update knowledge or skills previously practiced and honed. Considering the number of schemes and plants it has constructed, however, it can be well assumed that the technical staff of PCD does have relevant experience in project implementation, although on a smaller scale than what this project may require. 6.1.2 The Proposed Project Implementation System There are several key stakeholder-institutions with complementary interests over the successful implementation of the Imphal Water Supply Improvement Project. It is necessary, therefore, to create formal institutional linkages through the establishment of a project organisation system that would provide coordination and policy guidance, on one hand, as well as manage the activities of project implementation, on the other, with a sharing of roles and responsibilities to mitigate managerial, technical, financial and social problems may arise in the project’s implementation. (1) Key Project Stakeholders The key stakeholder institutions with interest in the project’s implementation are: the Government of 3 Interview with Mr. Ibotombi, Executive Engineer, Drainage and Sewerage Division, PHED Urban Circle, 28 June 2014. 6-3 Preparatory Survey on Imphal Water Supply Improvement Project Final Report India, represented by the Ministry of Urban Development (MoUD) and the Jawarharlal Nehru National Urban Renewal Mission (JnNURM), and the Government of Japan, represented by JICA Headquarters (Tokyo) and JICA India Office. There are also state-level stakeholder organisations, such as the Public Health Engineering Department (PHED), which is the project implementation unit, the Irrigation and Flood Control Department (IFCD), the Department of Housing and Urban Development (MAHUD). The urban local body-level stakeholder is the Imphal Municipal Council (IMC). In addition there is the Japan International