URBAN INFRASTRUCTURE Analysis of Urban Infrastructure Interventions, Vijayawada City, Andhra Cost-Benefit Analysis AUTHORS: Parijat Dey O Rajesh Babu Senior Manager Assistant Vice President IL&FS APUIAML © 2018 Copenhagen Consensus Center [email protected] www.copenhagenconsensus.com This work has been produced as a part of the Andhra Pradesh Priorities project under the larger, India Consensus project. This project is undertaken in partnership with Tata Trusts. Some rights reserved This work is available under the Creative Commons Attribution 4.0 International license (CC BY 4.0). Under the Creative Commons Attribution license, you are free to copy, distribute, transmit, and adapt this work, including for commercial purposes, under the following conditions: Attribution Please cite the work as follows: #AUTHOR NAME#, #PAPER TITLE#, Andhra Pradesh Priorities, Copenhagen Consensus Center, 2017. License: Creative Commons Attribution CC BY 4.0. 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Cost Benefit Analysis of Urban Infrastructure Interventions, Vijayawada City, Andhra Pradesh Andhra Pradesh Priorities An India Consensus Prioritization Project Parijat Dey1, O Rajesh Babu2 1Senior Manager, IL&FS 2 Assistant Vice President, APUIAML IL&FS Academy of Applied Development Table of Contents ACADEMIC ABSTRACT ..................................................................................................................................................... 1 POLICY ABSTRACT ........................................................................................................................................................... 2 THE PROBLEM ....................................................................................................................................................................... 2 Infrastructure Gap in Water Supply: .............................................................................................................................. 2 Infrastructure Gap in Sewage Infrastructure: ................................................................................................................ 3 Gap in Solid Waste Management Infrastructure: .......................................................................................................... 3 INTERVENTION 1: PROVISION OF PIPED WATER SUPPLY: ............................................................................................................. 3 Overview: ......................................................................................................................................................................... 3 Implementation Considerations: .................................................................................................................................... 4 Costs and Benefits ........................................................................................................................................................... 4 INTERVENTION 2: PROVISION FOR SEWERAGE FOR ALL HOUSEHOLDS ............................................................................................ 6 Overview: ......................................................................................................................................................................... 6 Implementation Considerations: .................................................................................................................................... 6 Costs and Benefits ........................................................................................................................................................... 7 INTERVENTION 3: PROVISION FOR SOLID WASTE MANAGEMENT: ................................................................................................. 8 Overview: ......................................................................................................................................................................... 8 Implementation Considerations: .................................................................................................................................... 8 Costs and Benefits ........................................................................................................................................................... 9 INTRODUCTION ............................................................................................................................................................ 11 THEORY .............................................................................................................................................................................. 13 CBA Methodology .......................................................................................................................................................... 14 OVERVIEW: VIJAYAWADA ............................................................................................................................................. 15 GEOGRAPHY ....................................................................................................................................................................... 16 DEMOGRAPHICS .................................................................................................................................................................. 16 HOUSEHOLD SIZE ................................................................................................................................................................. 16 ECONOMY .......................................................................................................................................................................... 17 INDUSTRIAL ESTATES............................................................................................................................................................. 17 INTERVENTION 1: PROVISION FOR PIPED WATER SUPPLY ............................................................................................. 18 DESCRIPTION OF INTERVENTION ............................................................................................................................................. 18 LITERATURE REVIEW............................................................................................................................................................. 19 DATA ................................................................................................................................................................................. 21 CALCULATION OF COSTS AND BENEFITS ................................................................................................................................... 23 Estimation of Cost Elements: ........................................................................................................................................ 23 Estimation of Benefit Elements: ................................................................................................................................... 23 ASSESSMENT OF QUALITY OF EVIDENCE .................................................................................................................................. 25 SENSITIVITY ANALYSIS ........................................................................................................................................................... 25 INTERVENTION 2: PROVISION FOR SEWERAGE FOR ALL HOUSEHOLDS ......................................................................... 27 DESCRIPTION OF INTERVENTION .................................................................................................................................. 27 LITERATURE REVIEW............................................................................................................................................................. 27 DATA ................................................................................................................................................................................. 29 CALCULATION OF COSTS AND BENEFITS ................................................................................................................................... 30 Estimation of Benefit Elements ..................................................................................................................................... 30 Estimation of Benefit Elements ..................................................................................................................................... 30 ASSESSMENT OF QUALITY OF EVIDENCE .................................................................................................................................. 31 SENSITIVITY ANALYSIS ........................................................................................................................................................... 31 INTERVENTION 3: PROVISION FOR IMPROVED SOLID WASTE MANAGEMENT .............................................................. 32 OVERVIEW: ........................................................................................................................................................................