Tamil Nadu Urban Infrastructure Financial Services Limited City Corporate Plan cum Business Plan for Kathivakkam Municipality Final Report March 2008 ICRA Management Consulting Services Limited Contents 1. INTRODUCTION ............................................................................................................................................ 1 1.1 BACKGROUND TO THE STUDY ..................................................................................................................... 1 1.2 OBJECTIVES, SCOPE OF WORK AND STUDY MODULES .................................................................................. 1 1.3 APPROACH AND METHODOLOGY ................................................................................................................ 2 1.4 ORGANIZATION OF THIS REPORT ................................................................................................................. 2 2. TOWN PROFILE AND CITY DEMOGRAPHICS ........................................................................................... 3 2.1 GEOGRAPHY ............................................................................................................................................ 3 2.2 KATHIVAKKAM MUNICIPALITY - ADMINISTRATIVE STATUS ................................................................................ 3 2.3 POPULATION ............................................................................................................................................ 5 2.4 POPULATION PROJECTIONS........................................................................................................................ 8 3. ECONOMIC PROFILE AND LAND USE ....................................................................................................... 9 3.1 PLANNING EFFORTS WITHIN CMA ............................................................................................................... 9 3.2 LAND-USE AND DEVELOPMENT ................................................................................................................. 10 3.3 DEVELOPMENT PATTERN AND ECONOMIC STATUS ...................................................................................... 11 3.4 STRUCTURAL LIMITATIONS AND CHALLENGES. ............................................................................................ 12 4. RAPID URBAN ASSESSMENT - SERVICES, ISSUES AND GAPS .......................................................... 13 4.1 WATER SUPPLY ..................................................................................................................................... 13 4.2 SEWERAGE AND SANITATION ................................................................................................................... 16 4.3 SOLID WASTE MANAGEMENT (SWM) ....................................................................................................... 19 4.4 ROADS, BUS STANDS AND STREET LIGHTS ................................................................................................. 20 4.5 OTHER ASSETS ...................................................................................................................................... 22 4.6 SOCIAL INFRASTRUCTURE........................................................................................................................ 22 4.7 URBAN SERVICES FOR THE POOR ............................................................................................................. 23 4.8 STATUS OF VISION PLAN PROJECTS ......................................................................................................... 24 4.9 SERVICE LEVEL INDICATORS AND DEMAND ASSESSMENT SUMMARY .............................................................. 27 5. URBAN GOVERNANCE AND MANAGEMENT .......................................................................................... 29 5.1 POLICY OVERSIGHT AND INSTITUTIONAL FRAMEWORK – STATE LEVEL ........................................................... 29 5.2 GOVERNANCE STRUCTURE OF KATHIVAKKAM MUNICIPALITY ........................................................................ 31 5.3 MANPOWER POSITION ............................................................................................................................. 33 5.4 ROLE OF OTHER AGENCIES ...................................................................................................................... 34 5.5 REFORMS UNDERTAKEN BY KATHIVAKKAM MUNICIPALITY ............................................................................ 34 6. ANALYSIS OF FINANCIALS ....................................................................................................................... 36 6.1 INCOME AND EXPENDITURE SUMMARY OF KATHIVAKKAM MUNICIPALITY ........................................................ 36 6.2 REVENUE STREAMS OF ULB IN TAMIL NADU .............................................................................................. 37 6.3 REVENUES ............................................................................................................................................. 38 6.4 ANALYSIS OF COSTS ............................................................................................................................... 41 6.5 TRENDS IN CAPITAL EXPENDITURE ........................................................................................................... 43 6.6 LOANS AND FINANCE CHARGES ................................................................................................................ 44 7. VISION & STRATEGIC PLAN, CIP AND ASSET MANAGEMENT PLAN .................................................. 45 7.1 POTENTIAL THEMES FOR ECONOMIC DEVELOPMENT .................................................................................... 45 7.2 SWOT ANALYSIS ................................................................................................................................... 45 7.3 STRATEGIC PLAN – FOCUS AREAS AND TIME HORIZON ................................................................................. 46 7.4 WATER SUPPLY ..................................................................................................................................... 46 7.5 SANITATION ........................................................................................................................................... 49 7.6 SOLID WASTE MANAGEMENT ................................................................................................................... 51 7.7 ROADS, TRANSPORTATION AND STREETLIGHTS ......................................................................................... 52 7.8 URBAN SERVICES FOR THE POOR ............................................................................................................. 54 7.9 SOCIAL INFRASTRUCTURE AND OTHER URBAN AMENITIES ............................................................................ 56 7.10 CAPITAL INVESTMENT PLAN – SUMMARY ................................................................................................... 56 7.11 ASSET MANAGEMENT ............................................................................................................................. 59 8. PROJECT PROFILES, ANALYSIS OF RISKS AND ESA CONSIDERATIONS ......................................... 65 8.1 PROJECT PROFILES OF SELECT PRIORITY PROJECTS ................................................................................... 65 CCP cum BP - Kathivakkam Municipality 9. REFORM AGENDA AND TECHNICAL ASSISTANCE ............................................................................... 69 9.1 URBAN SECTOR REFORM IN TAMIL NADU – AN OVERVIEW ............................................................................ 69 9.2 REFORM AGENDA – INTERVENTIONS REQUIRED AT THE STATE LEVEL ............................................................ 70 9.3 MEASURES FOR IMPROVING FINANCIAL PERFORMANCE ............................................................................... 73 10. SUSTAINABLE FINANCIAL AND OPERATING PLAN .......................................................................... 79 10.1 FINANCIAL AND OPERATING PLAN (FOP)– TIME HORIZON, BASIS AND ASSUMPTIONS ...................................... 79 10.2 ESTIMATION OF BORROWING CAPACITY AND INVESTMENT CAPACITY ............................................................. 81 10.3 PROJECT SPECIFIC CASH FLOWS .............................................................................................................. 82 10.4 POSSIBLE FINANCING MIX FOR ACHIEVING FULL INVESTMENTS ...................................................................... 83 10.5 FINANCIAL AND OPERATING PLAN............................................................................................................. 84 CCP cum BP - Kathivakkam Municipality List of exhibits Exhibit 1.1 IMaCS‟ approach and methodology ...................................................................................................... 1 Exhibit 2.1 Location of Kathivakkam within CMA .................................................................................................... 4 Exhibit 2.2 Population growth trend ......................................................................................................................... 5 Exhibit 2.3 Ward wise population ............................................................................................................................ 5 Exhibit 2.4 KaM vis-à-vis