India: Kolkata Environmental Improvement Investment Program - Tranche 1

Sovereign Project | 42266-023

Summary

Kolkata is the largest city in the state of West Bengal and the seventh largest in India. It has a population of 4.5 million and contributes at least 13% of West Bengal''s gross domestic product. The city is and will remain the dominant commercial and financial hub in the state. Although its livability has improved, the quality of basic urban services remains below national standards. The gap is particularly noticeable in water supply and sewerage services in regard to coverage, continuity, and quality. This affects the city''s ability to attract investment, facilitate trade, and create jobs, as well as its productivity, its competitiveness, and, most importantly, its quality of life and welfare. Investment and policy gaps hinder how effectively and efficiently institutions deliver services, and how well the policy framework creates an enabling environment for better service delivery and sustainability.

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Project Name Kolkata Environmental Improvement Investment Program - Tranche 1
Project Number 42266-023
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3053-IND: MFF - Kolkata Environmental Improvement Investment Program - Tranche 1
Ordinary capital resources US$ 100.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Water and other urban infrastructure and services - Urban sewerage - Urban water supply

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

Kolkata is the largest city in the state of West Bengal and the seventh largest in India. It has a population of 4.5 million and contributes at least 13% of West Bengal''s gross domestic product. The city is and will remain the dominant commercial and financial hub in the state. Although its livability has improved, the quality of basic urban services remains below national standards. The gap is particularly noticeable in water supply and sewerage services in regard to coverage, continuity, and quality. This affects the city''s ability to attract investment, facilitate trade, and create jobs, as well as its productivity, its competitiveness, and, most importantly, its quality of life and welfare. Investment and policy gaps hinder how effectively and efficiently institutions deliver services, and how well the policy framework creates an enabling environment for better service delivery and sustainability. These limitations have been manageable, but Kolkata''s expanding economy and deficient investment and maintenance over the years have made narrowing the gaps more urgent. The Kolkata Municipal Corporation (KMC), created to administer the city under the KMC Act in 1980, is responsible for delivering water and sewerage services. The Asian Development Bank (ADB) has been working with KMC since 2000, but only regarding sewerage. The partnership has yielded good results. KMC has a strategy, sector road map, policy framework, and investment plan to address gaps in operational efficiency, institutional effectiveness, policy, and sustainability. The investment program combines physical and other investments. KMC wants ADB to continue its role as a key financing and advisory partner.

The Project proposed for financing under the Periodic Financing Request will deliver three outputs:

(i) Inefficient water supply assets rehabilitated;

(ii) Sewerage and extension to peripheral areas continued; and

(iii) Financial and project management capacity further developed.

Project Rationale and Linkage to Country/Regional Strategy Water supply and sewerage services in Kolkata have excelled the national average, particularly in terms of quality, continuity, and coverage. The city also has a good, low-cost sewage treatment system. However, service provision is not uniform across the city and is increasingly strained by economic expansion. Service is better in the city center than in the periphery. This is both a problem and an opportunity. The problem is that the number of vulnerable households has grown rapidly in the periphery as the population has declined in the center, which is subserviced. The opportunity arises from the KMC''s ability to generate revenues from a still-large population with higher income in the center, with which to fund investment in the periphery. The city has worked hard to narrow service disparities. Efforts started with two loans provided in 2000 and 2006 for the Kolkata Environmental Improvement Project (KEIP), which financed the renovation of 564 kilometers (km) of the sewer drain network and the rehabilitation of three sewage treatment plants, raising the percentage of the population with direct sewer connection from 31% in 2001 to 43% in 2011. The service coverage for water supply is higher than for sewerage, but disparities between central and peripheral areas remain, particularly in service continuity. Unless addressed rapidly, these disparities will widen as population shifts from the center to the periphery.
Impact Improved water supply, sewerage, and drainage service quality and operational sustainability in select areas of KMC
Project Outcome
Description of Outcome Improved operational efficiency and coverage of water supply, sewerage, drainage services in selected areas of KMC.
Progress Toward Outcome Works just started in 2014 and progress is satisfactory in achieving outcome within the loan period
Implementation Progress
Description of Project Outputs

Inefficient water supply assets rehabilitated.

Sewerage extension to peripheral areas continued.

Financial and project management capacity further developed.

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

Two water supply packages awarded; one started construction

Two sewerage packages awarded; one started construction

One combined water supply and sewerage package awarded; started construction

Two large works packages and two small works packages are yet to be awarded

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects All subprojects in Tranche 1 were appraised and IEEs with EMPs were prepared in compliance with the SPS, 2009. No significant environmental impacts are anticipated for the proposed subprojects and there are no sensitive or protected areas in or around the proposed facilities. Any foreseen impacts are readily mitigated through proper facility design, sitting, and good construction practices as documented in the EMP.
Involuntary Resettlement The proposed sub projects under Tranche 1 will avoid significant IR impacts. Impacts are limited to potential short-term temporary impacts to 6 houses and 4 commercial establishments due to the open cut method used to lay water pipes. The acquisition of 350 square meters of land, affecting two landowners, is required under Tranche 1. Both owners were consulted and are willing to sell their land. All Tranche 1 subprojects were appraised and RP prepared in accordance with SPS, 2009.
Indigenous Peoples There are no impacts to IPs anticipated.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations have been held throughout the planning and design stage with Mayor, PMU, KMC officials, and state government departments like Pollution Control Board (PCB). Walk through informal discussions have been held with the local community along the proposed transmission stretch to assess the kind of impacts.
During Project Implementation The design and technique adopted by KMC has helped address and mitigate potential social issues associated with works. However, information disclosure is an integral part of safeguards planning during project implementation. Consultations and information disclosure will be carried out at different stages of the project cycle. Consultation measures envisaged for the project are: (i) KMC will inform through its officials and contractor about the construction schedule to minimize the temporary impacts; (ii) PMU will ensure that the affected people's if any will be identified and informed about the assistance to be provided for any temporary loss of livelihood; and (iii) attempts will be made to ensure that vulnerable groups, if any, will understand the process and that their specific needs will be taken in to consideration.
Business Opportunities
Consulting Services All consulting services to be financed under the Project will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). There are four major consulting services contract packages: (i) program management consultants; (ii) design and supervision consultants; (iii) public communication and social development consultants; and (iv) GIS-based management system consultant Phase 1. The four teams of consultants will be recruited using the quality and cost-based selection method.
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 concurred standard bidding documents for the national competitive bidding will be used throughout the Facility period.
Responsible ADB Officer Neeta Pokhrel
Responsible ADB Department South Asia Department
Responsible ADB Division Urban Development and Water Division, SARD
Executing Agencies
Kolkata Municipal Corporation5, S.N. Banerjee Road
Kolkata 700 013, India
Timetable
Concept Clearance -
Fact Finding -
MRM 14 Aug 2012
Approval 22 Oct 2013
Last Review Mission -
Last PDS Update 12 Mar 2015

Loan 3053-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Oct 2013 03 Mar 2014 30 May 2014 30 Jun 2019 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 140.00 Cumulative Contract Awards
ADB 100.00 22 Oct 2013 50.31 0.00 50%
Counterpart 40.00 Cumulative Disbursements
Cofinancing 0.00 22 Oct 2013 7.38 0.00 7%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Partly satisfactory

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Kolkata Environmental Improvement Investment Program - Tranche 1: Updated Initial Environmental Examination for Sewerage and Drainage Subproject Initial Environmental Examination May 2015
Kolkata Environmental Improvement Investment Program (Tranche 1): Water Supply Subproject Initial Environmental Examination Jan 2015
Kolkata Environmental Improvement Investment Program (Tranche 1): Sewerage and Drainage Subproject Resettlement Plan Resettlement Plans Jan 2015
Kolkata Environmental Improvement Investment Program - Tranche 1: Semi-Annual Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Jan 2015
Kolkata Environmental Improvement Investment Program - Tranche 1: Sewerage and Drainage Subproject (Package - SD 05) Resettlement Plan Resettlement Plans Aug 2014
Kolkata Environmental Improvement Investment Program (Tranche 1): Water Supply Subproject Resettlement Plans Jul 2014
Kolkata Environmental Improvement Investment Program (Tranche 1): Sewerage and Drainage Subproject Resettlement Plans Jul 2014
Kolkata Environmental Improvement Investment Program (Tranche 1): Water Supply Subproject Initial Environmental Examination Jun 2014
Kolkata Environmental Improvement Investment Program (Tranche 1): Sewerage and Drainage Subproject Initial Environmental Examination Jun 2014
Kolkata Environmental Improvement Investment Program (Tranche 1): Sewerage and Drainage Subproject Resettlement Plans May 2012
Kolkata Environmental Improvement Investment Program (Tranche 1): Water Supply Subproject Initial Environmental Examination May 2012
Kolkata Environmental Improvement Investment Program (Tranche 1): Sewerage and Drainage Subproject Initial Environmental Examination May 2012
Kolkata Environmental Improvement Investment Program (Tranche 1): Water Supply Subproject Resettlement Plans May 2012

Evaluation Documents

See also: Independent Evaluation

No documents found.


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