Government of Bihar Asian Development Bank Component Technical Assistance TA 4814-IND India: Bihar Urban Development Project Final Report Volume I - Main Report MAY 2008 BUDP Main Report Abbreviations ADB : Asian Development Bank AIFC : Average Incremental Financial Cost AP : Affected Persons ARV : Annual Rental Value ASI : Archeological Survey of India BHB : Bihar Housing Board BME : Benefit Monitoring Evaluation BOT : Build Operate Transfer BPL : Below Poverty Level BRJP : Bihar Rajya Jal Parshad BUSDRM : Bihar Urban Sector Development Road Map BUDP : Bihar Urban Sector Development Project CAA : Constitution Amendment Act CAG : Comptroller and Auditor General CAGR : Compounded Annual Growth Rate CAPEX : Capital Expenditure CAPP : Community Awareness and Participation Program CC : City Corporation CCF : City Challenge Fund CDP : City Development Plan CFE : Consent for Establishment CFO : Consent for Operation CLC : City Level Committee CLIP : City Level Infrastructure Plan CLIP : City Level Investment Plan CPCB : Central Pollution Control Board CPHEEO : Central Public Health and Environmental Engineering Organization DFID : Department for International Development DLAO : District Land Acquisition Officer DM : District Magistrate DPR : Detailed Project Report DSC : Design Supervision Consultants EAP : Externally Aided Projects EARF : Environmental Assessment and Review Framework EARP : Environmental Assessment and Review Procedures EC : Environmental Clearance EIA : Environment Impact Assessment EIRR : Economic Internal Rate of Return EMP : Environmental Monitoring Plan ERP : Enterprise Resource Planning EU : European Union FBAS : Fund Based Accounting System FDI : Foreign Direct Investment FFA : Financing Framework Agreement FGD : Focus Group Discussion FGIA : First Generation Imprest Account FI : Financial Institution i BUDP Main Report FIRR : Financial Internal Rate of Return FOP : Financial and Operating Plan FYP : Five Year Plan GAP : Gender Action Plan GDP : Gross Domestic Product GEM : Generators of Economic Momentum GIS : Geographic Information System GMC : Gaya Municipal Corporation GoB : Government of Bihar GoI : Government of India GSDP : Gross State Domestic Product HUDCO : Housing and Urban Development Corporation ICB : International Competitive Bidding IDSMT : Integrated Development of Small and Medium Towns IEE : Initial Environmental Examination IHSDP : Integrated Housing and Slum Development Program IP : Indigenous People IPDF : Indigenous People’s Development Framework IPDP : Indigenous People’s Development Plan IPT : Intermediate Public Transport JBIC : Japanese Bank for International Cooperation JNNURM : Jawaharlal Nehru Urban Renewal Mission KfW : Kreditanstalt fur Wiederaufbau LAA : Land Acquisition Act LCC : Life Cycle Cost M&E : Monitoring and Evaluation MFF : Multi-Tranche Financing Facility MFI : Multilateral Financial Institutions MLD : Million Litres per Day MML : Model Municipal Legislation MoEF : Ministry of Environment and Forest MoUD : Ministry of Urban Development MoUDPA : Ministry of Urban Development and Poverty Alleviation MUDPA : Ministry for Urban Development and Poverty Alleviation NCB : National Competitive Bidding NCU : National Commission on Urbanization NGO : Non Governmental Organization NH : National Highway NIC : National Informatics Centre NIUA : National Institute of Urban Affairs NMAM : National Municipal Accounting Manual NMCP : National Minimum Common Program NMT : Non Motorized Transport NOC : No Objection Certificate NPRR : National Policy for Resettlement and Rehabilitation NSSO : National Sample Statistics Organization NUIS : National Urban Information System PAC : Project Advisory Committee PAF : Project Affected Families PAH : Project Affected Households PFDS : Pooled Finance Development Scheme PHED : Public Health Engineering Department ii BUDP Main Report PIU : Project Implementing Unit PMC : Patna Municipal Corporation PMU : Project Management Unit PPMS : Project Performance Management System PPP : Public Private Partnership PRDA : Patna Regional Development Authority PSP : Private Sector Participation PUA : Patna Urban Area PWB : Patna Water Board PWD : Public Works Department R&R : Resettlement and Rehabilitation RBI : Reserve Bank India RCD : Road Construction Department RP : Resettlement Plan SEIAA : State Environment Impact Assessment Authority SFC : State Finance Commission SGIA : Second Generation Imprest Account SIA : Social Impact Assessment SIEE : Summary Initial Environmental Examination SJSRY : Swarna Jayanti Sahari Rozgar Yojana SOE : Statement of Expenditure SPV : Special Purpose Vehicle STP : Sewage Treatment Plant TAC : Tender Approval Committee TAC : Technical Assistance Cluster TCPO : Town and Country Planning Organization TP : Town Panchayat UA : Urban Agglomeration UDD : Urban Development Department UEPA : Urban Employment and Poverty Alleviation UFW : Unaccounted for Water UIDSSMT : Urban Infrastructure Development Services in Small and Medium Towns ULB : Urban Local Body UNDP : United Nations Development Program URIF : Urban Reform Incentive Fund USAID : United States Agency for International Development WTP : Willingness to Pay iii BUDP Main Report Contents I. Background..................................................................................................................................1 A. Introduction...................................................................................................................................1 B. Project Goal...................................................................................................................................1 C. Study Outputs................................................................................................................................1 D. Scope of the Report.......................................................................................................................2 E. Main Report Structure...................................................................................................................2 II. Urban Sector in India .................................................................................................................4 A. Economy and Growth ...................................................................................................................4 B. Urban Governance ........................................................................................................................6 III. Urban Sector in Bihar.................................................................................................................9 A. Urbanization Trends......................................................................................................................9 B. Overview of Existing Urban Infrastructure and Service Provision.............................................10 C. Urban Finance, Financing and Funding Sources ........................................................................17 IV. External assistance....................................................................................................................25 A. Country Assistance......................................................................................................................25 B. State Assistance...........................................................................................................................26 C. Lessons Learnt ............................................................................................................................27 V. City Socio-Economic Context...................................................................................................30 A. City Role and Function ...............................................................................................................30 B. Population and Urbanization.......................................................................................................30 C. Socio-economic Baseline ............................................................................................................31 VI. Gender Analysis and Action Plan............................................................................................35 A. Overview.....................................................................................................................................35 B. Status of Women in Bihar ...........................................................................................................35 C. Status of Women in BUDP Towns .............................................................................................37 VII. Stakeholder Consultation and Participation ..........................................................................53 A. Participation Strategy..................................................................................................................53 VIII. Project Rationale.......................................................................................................................55 A. Introduction.................................................................................................................................55 B. Policies and Programs.................................................................................................................55 C. Development Perspective............................................................................................................59 D. Project Identification and Selection ............................................................................................59