Tamil Nadu Urban Infrastructure Financial Services Limited City Corporate Plan cum Business Plan for Ambattur 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 AMBATTUR MUNICIPALITY - ADMINISTRATIVE STATUS ..................................................................................... 3 2.3 POPULATION ............................................................................................................................................ 5 2.4 POPULATION PROJECTIONS........................................................................................................................ 7 3. ECONOMIC PROFILE AND LAND USE ....................................................................................................... 8 3.1 PLANNING EFFORTS WITHIN CMA ............................................................................................................... 8 3.2 ECONOMIC STATUS ................................................................................................................................... 9 3.3 LAND-USE AND DEVELOPMENT ................................................................................................................. 11 4. RAPID URBAN ASSESSMENT - SERVICES, ISSUES AND GAPS .......................................................... 14 4.1 WATER SUPPLY – EXISTING STATUS ......................................................................................................... 14 4.2 CMWSSB NETWORK - ANNA NAGAR EXTENSION AND MOGAPPAIR AREA - 11 WARDS ................................... 15 4.3 WATER SUPPLY IN OTHER WARDS – MAINTAINED BY AMB-M ........................................................................ 15 4.4 SEWERAGE AND SANITATION ................................................................................................................... 19 4.5 SOLID WASTE MANAGEMENT (SWM) ....................................................................................................... 21 4.6 TRANSPORTATION, BUS STANDS AND STREET LIGHTS ................................................................................. 24 4.7 URBAN SERVICES FOR POOR ................................................................................................................... 26 4.8 MARKETS AND OTHER ASSETS.................................................................................................................. 27 4.9 SOCIAL INFRASTRUCTURE........................................................................................................................ 28 4.10 STATUS OF VISION PLAN PROJECTS ......................................................................................................... 29 4.11 SERVICE LEVEL INDICATORS AND DEMAND ASSESSMENT SUMMARY .............................................................. 30 5. URBAN GOVERNANCE AND MANAGEMENT .......................................................................................... 32 5.1 POLICY OVERSIGHT AND INSTITUTIONAL FRAMEWORK – STATE LEVEL ........................................................... 32 5.2 GOVERNANCE STRUCTURE OF AMBATTUR MUNICIPALITY ............................................................................. 34 5.3 MANPOWER POSITION ............................................................................................................................. 36 5.4 ROLE OF OTHER AGENCIES ...................................................................................................................... 37 5.5 REFORMS UNDERTAKEN BY AMBATTUR MUNICIPALITY ................................................................................. 38 6. ANALYSIS OF FINANCIALS ....................................................................................................................... 39 6.1 INCOME AND EXPENDITURE SUMMARY OF AMBATTUR MUNICIPALITY ............................................................ 39 6.2 REVENUE STREAMS OF ULB IN TAMIL NADU .............................................................................................. 40 6.3 ANALYSIS OF COSTS ............................................................................................................................... 45 6.4 TRENDS IN CAPITAL EXPENDITURE ........................................................................................................... 46 6.5 LOANS AND FINANCE CHARGES ................................................................................................................ 47 7. VISION & STRATEGIC PLAN, CIP AND ASSET MANAGEMENT PLAN .................................................. 48 7.1 POTENTIAL THEMES FOR ECONOMIC DEVELOPMENT .................................................................................... 48 7.2 SWOT ANALYSIS ................................................................................................................................... 50 7.3 STRATEGIC PLAN – FOCUS AREAS AND TIME HORIZON ................................................................................. 50 7.4 POPULATION PROJECTIONS UNDERLYING THE STRATEGIC PLAN ................................................................... 51 7.5 WATER SUPPLY ..................................................................................................................................... 51 7.6 SANITATION ........................................................................................................................................... 53 7.7 SOLID WASTE MANAGEMENT ................................................................................................................... 57 7.8 ROADS, TRANSPORTATION AND STREETLIGHTS ......................................................................................... 59 7.9 URBAN SERVICES FOR THE POOR ............................................................................................................. 61 7.10 SOCIAL INFRASTRUCTURE AND OTHER URBAN AMENITIES ............................................................................ 63 7.11 CAPITAL INVESTMENT PLAN ..................................................................................................................... 63 7.12 ASSET MANAGEMENT PLAN ..................................................................................................................... 66 CCP cum BP - Ambattur Municipality 8. PROJECT PROFILES, ANALYSIS OF RISKS AND ESA CONSIDERATIONS ......................................... 74 8.1 WATER SUPPLY ...................................................................................................................................... 74 8.2 SANITATION ........................................................................................................................................... 75 8.3 SOLID WASTE MANAGEMENT .................................................................................................................... 77 8.4 TRANSPORTATION .................................................................................................................................. 77 9. REFORM AGENDA AND TECHNICAL ASSISTANCE ............................................................................... 79 9.1 URBAN SECTOR REFORM IN TAMIL NADU – AN OVERVIEW ............................................................................ 79 9.2 REFORM AGENDA – INTERVENTIONS REQUIRED AT THE STATE LEVEL ............................................................ 80 9.3 SUGGESTIONS FOR IMPROVING FINANCIAL PERFORMANCE AND COLLECTION EFFICIENCY ................................ 83 10. SUSTAINABLE FINANCIAL AND OPERATING PLAN .......................................................................... 89 10.1 FINANCIAL AND OPERATING PLAN (FOP)– TIME HORIZON, BASIS AND ASSUMPTIONS ...................................... 89 10.2 ESTIMATION OF BORROWING CAPACITY AND INVESTMENT CAPACITY ............................................................. 91 10.3 PROJECT SPECIFIC CASH FLOWS .............................................................................................................. 92 10.4 POSSIBLE FINANCING MIX FOR ACHIEVING FULL INVESTMENTS ...................................................................... 93 10.5 FINANCIAL AND OPERATING PLAN............................................................................................................. 94 CCP cum BP - Ambattur Municipality List of exhibits Exhibit 1.1 IMaCS’ approach and methodology .....................................................................................................