India: Bihar Urban Development Investment Program - Tranche 1

Sovereign Project | 41603-023

Summary

The proposed Project 1 will include:

(i) Bhagalpur water supply subproject;

(ii) Hydro-geological assessment of the ground water in Gaya and Darbhanga;

(iii) Consulting services for investment program management;

(iv) Consulting services for construction supervision and subproject design;

(v) Project management and implementation units operations; and

(vi) Capacity building and reform activities outside SPUR in Bhagalpur.

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


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 Bihar Urban Development Investment Program - Tranche 1
Project Number 41603-023
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2861-IND: Bihar Urban Infrastructure Development Sector Program -Tranche 1
Ordinary capital resources US$ 57.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector Water and other urban infrastructure and services - Urban policy, institutional and capacity development - Urban sewerage
Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The proposed Project 1 will include:

(i) Bhagalpur water supply subproject;

(ii) Hydro-geological assessment of the ground water in Gaya and Darbhanga;

(iii) Consulting services for investment program management;

(iv) Consulting services for construction supervision and subproject design;

(v) Project management and implementation units operations; and

(vi) Capacity building and reform activities outside SPUR in Bhagalpur.

Project Rationale and Linkage to Country/Regional Strategy

The water supply service in Bhagalpur has poor performance, in comparison with the national average and targets:

(i) Water supply coverage: 81% of population in Bhagalpur, where as 81% for the national average, 94% to 100% for the national target.

(ii) Water supply amount: 57 liter per capita per day (lpcd) in Bhagalpur, where as 123 lpcd for the national average, 135 lpcd for the national target.

(iii) Hours of water supply: 5 hours per day (hpd) in Bhagalpur, where as 4 hpd for the national average, 25 hpd for the national target.

(iv) Metered water connections: 0% of connection in Bhagalpur, where as 25% for the national average, 100% for the national target.

Bhagalpur is not able to sustain the key urban services because of the core problem that is, the infrastructure is not adequate in terms of size and condition. This is mainly attributed to inadequate new investment, and O&M, stemmed from the four main root problems:

(i) User charges. There is no user charge, and therefore, ULBs cannot recover O&M cost. Inability to capture (a) accrued' revenues and expenditures, and (b) apportioned common expenses makes it difficult to calculate appropriate user charge levels, even if ULBs are willing to levy user charges.

(ii) Accounting practice. In the absence of a ring-fenced account specific for each urban service, ULBs cannot accumulate internal reserves for major investments. This led ULB to rely on grants from the various national and state schemes. Uncertainty in availability of financial resources made it difficult to plan the future.

(iii) Public Administration. The absence of the municipal civil servant system makes it difficult to accumulate skills within ULBs. Much of the staff is on contract with multiple assignments, hardly matching the required qualifications and rarely devoting to specialized tasks.

(iv) Human Resources. The recruited staff number is too low to sustain the water supply, sewerage and SWM services at the national goal level. Coupled with difficulties in attracting qualified personnel, it is hard to prepare a long-term plan and prepare project proposals, which attract financiers.

Impact People, especially vulnerable household, will have increased access to better quality and sustainable urban infrastructure and services in Bhagalpur, Darbhanga, Gaya and Muzaffarpur.
Project Outcome
Description of Outcome BUIDCo and ULB improve infrastructure, operations and sustainability in water supply in Bhagalpur.
Progress Toward Outcome The project implementation is progressing well.
Implementation Progress
Description of Project Outputs

1. Water supply infrastructure rehabilitated and newly constructed in Bhagalpur.

2. Staffing and skills for water supply operations improved in Bhagalpur.

3. Systems for water supply service delivery management improved in Bhagalpur.

4. Subproject implemented on time within the budget in a transparent manner.

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

Design-build-operate contract awarded and is in the design phase. Construction is expected to start in late 2015.

Both the project management consultants (PMC) and design and supervision consultants (DSC) have already been mobilized and are helping the Project Management Unit in project implementation.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Project 1 will provide safe drinking water to the residents of Bhagalpur. Most adverse environmental impacts are associated with construction and will be mitigated. The initial environmental examination, which includes an environmental management plan, was prepared following the environmental assessment and review framework.
Involuntary Resettlement Project 1 does not expect permanent land acquisition, however, rehabilitation and laying of pipe networks, while to be conducted only on road rights-of-way can result in temporary loss of income during construction.
Indigenous Peoples There are no IPs or EM groups in the subproject town of Bhagalpur. These are supported by census data and confirmed by FGDs and transect walks.
Stakeholder Communication, Participation, and Consultation
During Project Design The PPTA consultants organized five focus group discussions, involving 41 (24 men and 17 women) participants. Participants were asked about the usage of water supply, status of sanitation and willingness pay to water and sewerage services. After preparing the draft investment program, one workshop was organized to share information about the investment program with ADB, state government of Bihar, SPUR, local elected representatives, ULB officers, nongovernment organizations and community-based organizations.
During Project Implementation

The draft consultation and participation plan envisages:

1. Six one-day project orientation workshops organized by PMU for:

(i) Information sharing

(ii) Consultation

(iii) Shared responsibility

(iv) Shared decision-making

2. Six half-day project orientation seminars in each of the four towns organized by PIU in collaboration with NGO, ULB and WDC for:

(i) Information sharing

(ii) Consultation

(iii) Shared decision-making

3. Two half-day focus group discussion workshops on water supply and sewerage services organized by PMU, PIU, ULB in collaboration with NGO for:

(i) Information sharing

(ii) Consultation

4. A one-day knowledge sharing workshop organized by PMU, PIU and ULB in collaboration with NGO for:

(i) Information sharing

(ii) Consultation

(iii) Shared decision-making

5. A half-day semiannual participatory monitoring meetingsa for community watchdogs organized by PIU and ULB in collaboration with NGO and WDC for:

(i) Information sharing

(ii) Consultation

6. Four half-day focus group discussions, and eight half-day small group meetings on resettlement and entitlement organized by PMU, PIU and ULB in collaboration with NGO for:

(i) Information sharing

(ii) Consultation

7. A half-day consultation workshopa with temporarily affected persons organized by PMU, PIU and ULB in collaboration with NGO for:

(i) Information sharing

(ii) Consultation

8. A half-day consultation workshop with fishing communities in Bhagalpur organized by PIU and ULB in collaboration with NGO for:

(i) Information sharing

(ii) Consultation.

Business Opportunities
Consulting Services All consultants were already recruited and mobilized according to the ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). Both the PMC and DSC consultants were recruited through quality and cost-based selection method. Each will be carried out by the same team throughout the investment program from 2012 to 2021 to ensure continuity and consistency. The first loan will finance the consulting service contracts for the initial years while the subsequent loans will cover the remaining period of the contracts.
Procurement All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2013, as amended from time to time). The indicative procurement activities are: (i) international competitive bidding, 1 contracts, $60 million; (ii) shopping, 8 contracts, $ 0.7 million. A large international competitive bidding contract, which contractor will design, construct and operate the asset in 9-14 years (1 year for design, 3 year for construction, 5-10 years for operations). In the final year of the contract, the employer will have options to close or to continue the operations contract. ADB may finance the full design and construction periods and a part of operations period up to 3 years. The first loan will finance the contracts partially while the subsequent loans will cover the remaining balances of the contracts, mostly the operations period of contracts. In the last year of the contract, the implementing agency, the employer of the contractor, will have options to have the operational responsibility transferred to the ULB, to continue engaging the same operator or engage other operator through the state procedure.
Responsible ADB Officer Neeta Pokhrel
Responsible ADB Department South Asia Department
Responsible ADB Division Urban Development and Water Division, SARD
Executing Agencies
Urban Development Department of Gov't of BiharVikas Bhavan Patna
800 015 Bihar
Timetable
Concept Clearance -
Fact Finding -
MRM 15 Jul 2011
Approval 13 Apr 2012
Last Review Mission -
Last PDS Update 13 Mar 2015

Loan 2861-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Apr 2012 25 Mar 2013 06 Jun 2013 30 Jun 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 84.86 Cumulative Contract Awards
ADB 57.00 13 Apr 2012 43.95 0.00 77%
Counterpart 27.86 Cumulative Disbursements
Cofinancing 0.00 13 Apr 2012 7.11 0.00 12%

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.