India: MFF - North Karnataka Urban Sector Investment Program - Tranche 2

Sovereign Project | 38254-043

Summary

The North Karnataka Urban Sector Investment Program will help GoK rehabilitate existing urban infrastructure facilities and construct new ones in ULBs of North Karnataka. The Investment Program will assist GoK in meeting its urban sector investment plan and providing water supply systems, sewerage systems, drainage, and urban road resurfacing and junction improvements. The living environment in slums will be improved with the provision of basic services. Firefighting capacity improvements, tourism infrastructure, and lake rehabilitation are also included. The Investment Program will introduce private sector participation (PSP) in selected subsectors in selected ULBs and support ongoing institutional reforms and training for ULB staff currently being conducted by GoK under the Nirmala Nagar Program (NNP).

Latest Project Documents

Consulting Notices

See also: CMS

No notices are currently available for this project.

Procurement Notices

See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents

No documents of this type are currently available for this project.


Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Name MFF - North Karnataka Urban Sector Investment Program - Tranche 2
Project Number 38254-043
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2638-IND: MFF - North Karnataka Urban Sector Investment Program - Tranche 2
Ordinary capital resources US$ 123.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Water and other urban infrastructure and services - Other urban services - Urban policy, institutional and capacity development - Urban sewerage - Urban slum development - Urban water supply

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The North Karnataka Urban Sector Investment Program will help GoK rehabilitate existing urban infrastructure facilities and construct new ones in ULBs of North Karnataka. The Investment Program will assist GoK in meeting its urban sector investment plan and providing water supply systems, sewerage systems, drainage, and urban road resurfacing and junction improvements. The living environment in slums will be improved with the provision of basic services. Firefighting capacity improvements, tourism infrastructure, and lake rehabilitation are also included. The Investment Program will introduce private sector participation (PSP) in selected subsectors in selected ULBs and support ongoing institutional reforms and training for ULB staff currently being conducted by GoK under the Nirmala Nagar Program (NNP).
Project Rationale and Linkage to Country/Regional Strategy
Impact Improved quality of life relative to the whole state.
Project Outcome
Description of Outcome Improved basic urban services for people living in program 22 ULBs.
Progress Toward Outcome Execution of civil works is still ongoing and the target outcome for sanitation and water supply infrastructures have not yet been achieved.
Implementation Progress
Description of Project Outputs

Enhance capacity of urban infrastructure - Slum Improvement

Enhance capacity of urban infrastructure - Institutional Development

Enhance capacity of urban infrastructure - Non-Municipal

Enhance capacity of urban infrastructure - Water Supply

Enhance capacity of urban infrastructure - Sanitation (Sewerage)

Status of Implementation Progress (Outputs, Activities, and Issues)

1. Slum Improvement - Physical works in progress. 3,159 slum households, including 600 women headed households, (out of 4,000) have been provided with improved water facilities and 5,323 slum households (out of 4,000) with improved sanitation. Apex NGO and appointment of Implementing NGOs were mobilized and are providing training and capacity development activities.

2. Institutional Development:

2.1 Implementation of property tax as amended in the Karnataka Municipal Act 1964 with 75% coverage - Achieved in all 25 ULBs.Self-assessment system/capital value system for property tax has been undertaken in all 25 project towns; and collection levels are improving, averaging nearly 68% (till end of Dec 2014 for financial year 2014-15). To secure further improvements, base and property mapping is underway in all towns but 5, some financed under tranche 3.

2.2 Application of the Fund-Based Accounting System (FBAS) for all ULBs - Achieved in all 25 ULBs. However, there is a need to further improve property values assessments and collection levels. For this purpose, base and property mapping is underway in all NKUSIP towns but five, which will be taken up under Project 3.

2.3 Introduction of volumetric water tariff (w/ water supply subproject before commissioning) for all 9 ULBs - GOK first directed ULBs to adopt volumetric tariffs in 1996 and has since provided both technical support (through advisory functions and preparation of relevant manuals) and community education support (through the Education and Communication campaigns under Project 2) to enhance acceptance of tariffs among citizens. Effective 20 July 2011, GOK issued a revised tariff order making metering compulsory. All ULBs receiving water subprojects have passed resolutions ahead of subproject implementation. ULBs, however, have low collection efficiencies (partly due to the poor water service being provided prior to completion of works). Project 4 considers operator contracts for watery supply and operator payments would be out of volumetric water tariff collected.

2.4 Introduction of sewerage tariff (w/ sewerage subproject before commissioning) for all 12 ULBs - For many of NKUSIP s ULBs, sewerage services are being introduced for the first time and thus few ULBs have a sewerage tariff in place. Effective 20 July 2011, GOK issued a revised tariff order requiring the introduction of sewerage tariffs. KUIDFC s O&M specialist is undertaking the preparation of manuals and various recovery models for ULBs and tariffs are to become effective immediately after commissioning.

2.5 Introduction of PPP contract - Contract awarded to successful bidder for 24x7 water supply subproject in Ilkal under PBMC. Physical progress is on schedule with most pipe laying complete, to be followed by connection provision and installation of meters. Mainstreaming activities underway in Project 4.

3. Non-Municipal Infrastructure - Improvement of Tourism Infrastructure in 2 ULBs and Construction of District Information Centers in 2 ULBs were completed. Procurement of fire-fighting equipment for 7 ULBs consisting of 4 packages has also been completed.

4. Sanitation - Physical works are still in progress: 5,300 households with sewerage facilities; 422 kms., of new sewers built; 8.05 kms., of new drains have been built; 31.00 of existing sewer rehabilitated.

5. Water Supply - Physical works are still in progress: 3,100 households with improved water facilities; 707 kms., of new pipe networks have been built and 119 kms of existing pipe networks have been rehabilitated.

Issue:

1. Slow progress in sewerage packages. KUIDFC terminated sewerage contracts and financial closing is ongoing. Two new sewerage contracts awarded in March and July 2014 respectively. While, one remaining sewerage contract expected to be awarded on or before the end of second quarter of 2015 (this package is curently under rebidding).

Geographical Location North Karnataka
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The Tranche 2 subprojects are consistent with the MFF's design which maximizes environmental and public health benefits. IEEs were conducted for Tranche 2 subprojects in accordance with the EARP for the MFF. These IEEs show that net environmental benefits are positive and large: more and better-quality drinking water from water supply subprojects; better public health, particularly fewer waterborne diseases through water supply, sewerage, and drainage investments; improved aesthetics through sewerage and drainage works; and reduced flooding through drainage improvements. Negative impact, if any, during construction and operation will not be significant because larger facilities will be built in low density and non-sensitive areas, the works will be quickly constructed, and simple technologies with low maintenance requirements will have preference. ADB approved the updated IEE reports for the sub-projects. Adverse impacts are minimized by implementing EMP measures.
Involuntary Resettlement Subprojects under the Tranche 2 are designed to minimize land acquisition and resettlement impacts. To the extent feasible, subprojects involving rehabilitation will be accommodated within the existing facilities' premises to avoid land acquisition and resettlement. Subprojects involving construction of water supply, sewerage, and drainage facilities are proposed on vacant government land wherever possible. Overall impacts will be further minimized through careful siting and alignment during detailed design and subproject implementation. The resettlement framework (RF) prepared for the MFF outlines the objectives, policy, principles, and procedures for involuntary resettlement, and related assistance measures for affected persons. It was decided that all affected persons are to be compensated and/or resettled in accordance with the RP before commencement of civil works.
Indigenous Peoples There are no indigenous people impacts in sample projects to date. In the event any impacts are seen in non-sample subprojects, these will follow the requirement of the Indigenous Peoples Development Framework (IPDF). The RF also provides specific measures made through additional entitlements accorded to vulnerable groups which include IPs.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants to assist the Government in implementing the Investment Program. One Apex NGO and national NGOs will be engaged for Information, Education and Communication (IEC) activities.
Procurement Procurement of all goods and services under the Investment Program will be undertaken in accordance with ADB's Guidelines for Procurement, and in accordance with the rules and regulations of the Government acceptable to ADB. Some of civil works (water, sanitation, and drainage) contracts have been awarded. Remaining contracts will be awarded soon.
Responsible ADB Officer Ashok Srivastava
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
Karnataka Urban Infrast. Dev. and Finance Corp.Mr. Shrivastava, IASKUIDFC.PMU@SMD.SPRINTRPG.EMS.VSNL.NET.INSilver Jubilee Block, 2nd floor, Unity B, 3rd Cross, Mission Road, Bangalore, India 560 027
Timetable
Concept Clearance 04 Sep 2004
Fact Finding -
MRM 05 Mar 2008
Approval 14 Jun 2010
Last Review Mission -
PDS Creation Date 22 Jan 2008
Last PDS Update 23 Mar 2015

Loan 2638-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Jun 2010 16 Dec 2010 01 Mar 2011 30 Jun 2016 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 123.00 Cumulative Contract Awards
ADB 123.00 14 Jun 2010 116.17 0.00 94%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 14 Jun 2010 68.72 0.00 56%

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
North Karnataka Urban Sector Investment Program - Tranches 1-4: Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Dec 2014
North Karnataka Urban Sector Investment Program - Tranche 2: Resettlement Plan for Raichur Hosur Zone STP Site Subprojects Resettlement Plans Nov 2014
North Karnataka Urban Sector Investment Program - Tranches 2, 3, and 4: Environmental Monitoring Report (September 2014) Environmental Monitoring Reports Sep 2014
North Karnataka Urban Sector Investment Program - Tranches 1-4: Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jul 2014
MFF - North Karnataka Urban Sector Investment Program - Tranche 2: Semi-Annual Social Monitoring Report (January - June 2014) Social Monitoring Reports Jul 2014
North Karnataka Urban Sector Investment Program - Tranche 2: Resettlement Plan for Hubli Dharwad Resettlement Plans Dec 2013
North Karnataka Urban Sector Investment Program - Tranche 2: Resettlement Plan for Rabakavi-Banahatti Resettlement Plans Dec 2013
North Karnataka Urban Sector Investment Program: Environmental Monitoring Report (March 2013) Environmental Monitoring Reports Mar 2013
North Karnataka Urban Sector Investment Program Tranche 2: Dharwad Subproject Compliance Report on Environmental Management Plan Environmental Monitoring Reports Apr 2012
North Karnataka Urban Sector Investment Program: Bidar Sewage Treatment Plant Resettlement Planning Documents Dec 2011
North Karnataka Urban Sector Investment Program Tranche 2: Gulbarga Subproject Compliance Report on Environmental Management Plan Environmental Monitoring Reports Dec 2011
North Karnataka Urban Sector Investment Program - Tranche 2: Rabakavi-Banahatti Sewerage Treatment Plant Sub-projects Resettlement Plans Nov 2011
North Karnataka Urban Sector Investment Program: Koppal sub projects Resettlement Plans May 2011
North Karnataka Urban Sector Investment Program: Chamarajanagar Sewerage Treatment Plant (STP) Resettlement Plans May 2011
North Karnataka Urban Sector Investment Program (Tranche 2) - Koppal Town Environmental Assessment and Measures May 2011
North Karnataka Urban Sector Investment Program (January 2011) Resettlement Plans Jan 2011
North Karnataka Urban Sector Investment Program (January 2011) Resettlement Plans Jan 2011
North Karnataka Urban Sector Investment Program (October 2010) Resettlement Plans Oct 2010
North Karnataka Urban Sector Investment Program (Tranche 2): Shahabad Jackwell cum Pump House Connective Line and WTP Resettlement Plans Oct 2010
North Karnataka Urban Sector Investment Program (Tranche 2): Basavakalyan Jackwell cum Pump House and Break Pressure Tank Resettlement Planning Documents Oct 2010
MFF - North Karnataka Urban Sector Investment Program - Tranche 2: Basavakalyan Jackwell cum Pump House Resettlement Plan Resettlement Plans Oct 2010
North Karnataka Urban Sector Investment Program (Tranche 2) - Koppal CMC Initial Environmental Examination Sep 2010
North Karnataka Urban Sector Investment Program (Tranche 2): Hubli Dharwad Resettlement Planning Documents Sep 2010
North Karnataka Urban Sector Investment Program - Tranche 2: Sub-Projects in Davangere CC Initial Environmental Examination Apr 2010
North Karnataka Urban Sector Investment Program (Tranche 2) - Bellary CMC Environmental Assessment and Measures Apr 2010
North Karnataka Urban Sector Investment Program (Tranche 2) - Gulbarga Environmental Assessment and Measures Feb 2010
North Karnataka Urban Sector Investment Program (Tranche 2) - Basavakalyan Environmental Assessment and Measures Jan 2010
North Karnataka Urban Sector Investment Program (Tranche 2) - Bidar Environmental Assessment and Measures Jan 2010
North Karnataka Urban Sector Investment Program (Tranche 2) - Shahabad Environmental Assessment and Measures Dec 2009
North Karnataka Urban Sector Investment Program (Tranche 2) - Gangavathi CMC Environmental Assessment and Measures Dec 2009
North Karnataka Urban Sector Investment Program (Tranche 2) - Yadgir Environmental Assessment and Measures Dec 2009
North Karnataka Urban Sector Investment Program (Tranche 2) - Sindhanur Town Environmental Assessment and Measures Dec 2009
North Karnataka Urban Sector Investment Program (Tranche 2) - Chamarajnagar CMC Initial Environmental Examination Initial Environmental Examination Nov 2009
North Karnataka Urban Sector Investment Program (Tranche 2) - Bijapur CMC Environmental Assessment and Measures Oct 2009
North Karnataka Urban Sector Investment Program (Tranche 2) - Ranebennur CMC Environmental Assessment and Measures Oct 2009
North Karnataka Urban Sector Investment Program (Tranche 2) - Hubli-Dharwad Environmental Assessment and Measures Oct 2009
North Karnataka Urban Sector Investment Program (Tranche 2) - Ilkal Environmental Assessment and Measures Sep 2009
North Karnataka Urban Sector Investment Program (Tranche 2) - Gokak CMC Environmental Assessment and Measures May 2009
North Karnataka Urban Sector Investment Program (Tranche 2) - Belgaum CC Initial Environmental Examination May 2009
North Karnataka Urban Sector Investment Program (Tranche 2) - Rabkavi-Banhatti CMC Environmental Assessment and Measures May 2009
North Karnataka Urban Sector Investment Program (Tranche 2) - Nippani CMC Environmental Assessment and Measures May 2009
North Karnataka Urban Sector Investment Program (Tranche 2) - Jamkhandi CMC Environmental Assessment and Measures May 2009
North Karnataka Urban Sector Investment Program (Tranche 2) - Badami TMC Initial Environmental Examination May 2009
North Karnataka Urban Sector Investment Program (Tranche 2) - Haveri CMC Initial Environmental Examination Mar 2009

Evaluation Documents

See also: Independent Evaluation

No documents found.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.