India: Rajasthan Urban Sector Development Program

Sovereign Project | 42267-026 Status: Approved

Summary

The sector development program (SDP) will complement past and ongoing efforts of the Government of Rajasthan to improve water supply and wastewater services to the residents of the state of Rajasthan. The SDP comprises (i) a program, financed by a policy-based loan, to support policy reforms, including institutional development and governance improvement in the urban sector in the state; and (ii) a project, financed by a project loan, to invest in the water distribution network in five project cities and sewerage systems in the six project cities.

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 Rajasthan Urban Sector Development Program
Project Number 42267-026
Country India
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Grant 0413-IND: Rajasthan Urban Sector Development Program
Bill and Melinda Gates Foundation US$ 2.00 million
Loan 3182-IND: Rajasthan Urban Sector Development Program
Ordinary capital resources US$ 250.00 million
Loan 3183-IND: Rajasthan Urban Sector Development Program
Ordinary capital resources US$ 250.00 million
TA 8749-IND: Capacity Development of Institutions in the Urban Sector in Rajasthan
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

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

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The sector development program (SDP) will complement past and ongoing efforts of the Government of Rajasthan to improve water supply and wastewater services to the residents of the state of Rajasthan. The SDP comprises (i) a program, financed by a policy-based loan, to support policy reforms, including institutional development and governance improvement in the urban sector in the state; and (ii) a project, financed by a project loan, to invest in the water distribution network in five project cities and sewerage systems in the six project cities.

The SDP modality will support both the infrastructure needs and the reform program, which focuses on strengthening institutions and adjusting the policy, institutional, legal, financial, and regulatory framework. The policy-based loan will provide financial support to the state government to implement reforms that will unlock the potential of various stakeholders, including municipal bodies, individual households, and private sector investors. The project loan will support catalytic investments that enhance productivity and leverage finances from various other sources in the project cities. The project will also introduce innovations in water supply and wastewater management, such as continuous water supply, and long-term O&M embedded construction contracts for nonrevenue water (NRW) reduction and sustainability of operations. If implemented successfully, the SDP may play a demonstrative role for urban sector operations in India.

Project Rationale and Linkage to Country/Regional Strategy

Urban centers have been driving economic growth in India, led by services and manufacturing, placing cities at the forefront of the country's economic transformation. According to recent estimates, the urban sector contributes about 63% of India's gross domestic product (2009 -2010); this share is projected to increase to 75% by 2021. Similarly, while India's urban population currently constitutes about 31% of the total population, it is expected to grow to 43% by 2031. Increasing urbanization has aggravated the already deficient urban infrastructure and poor services. The country partnership strategy, 2013- 2017 of the Asian Development Bank (ADB) for India identifies the urban infrastructure deficit as one of the most important binding constraints to inclusive growth. The SDP fits well with the priorities identified in the strategy, and will address the country's urbanization challenge, including plans for urban renewal and development of smart cities. The proposed investment is included in ADB's country operations business plan, 2013- 2015 for India.

Rajasthan, with a population of 68.6 million and an area of 342,239 square kilometers, is the largest state in the country. About 25% of the population is urban, this percentage is increasing rapidly at 2.9% per annum. Since 2000, the state government has successfully implemented two multisector urban investment projects, which benefitted more than 5 million residents of six major cities under the first project and more than 2 million residents of 15 secondary cities under the second project. Important lessons from the projects have been incorporated in the SDP design, including (i) consultations on project design, last-mile connectivity, cost recovery, user charges, and timely induction and capacity building of counterpart staff are crucial for sustainability; (ii) contracts should be grouped into fewer packages with long-term operation and maintenance (O&M) provisions; and (iii) advance actions for procurement should be undertaken to enhance project readiness. Another important lesson, reiterated in the review of the country partnership strategy, 2009- 2012, is that investments have to be coupled with sustainable and vibrant institutions and effective governance systems to sustain and maximize their impacts.

Impact Sustainable urban development in Rajasthan

Project Outcome

Description of Outcome Improved urban service delivery in Rajasthan
Progress Toward Outcome

Consultants under the loans, grant and TA have been mobilized and are currently assisting GOR in loan, grant and TA activities. The Project Management and Design Supervision Consultants and Community Awareness and Participation Consultants are supported by the project loan while the Sanitation Consultants are supported by the Sanitation Grant from the Bill and Melinda Gates Foundation.

Contracts for water supply and sewerage improvement in Tonk and Pali have already been awarded, and the preparations have been done to start physical works soon. Procurement for other contracts in the remaining four project cities has been initiated and are planned to be completed in 2016.

For the Policy-based Loan, Government of Rajasthan complied with all the required policy actions stipulated under Tranche 1, and accordingly, ADB released $125 million Tranche 1 amount to the Government to support reforms implementation. The Government is undertaking further steps to ensure compliance with policy actions under Tranche 2, which is due in 2017.

Implementation Progress
Description of Project Outputs

Capacity building and efficient program management implemented

Urban governance improved

Water supply system rehabilitated and expanded in five project cities

Wastewater system rehabilitated and expanded in six project cities

Urban institutions strengthened

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

Consultants under the loans, grant and TA have been mobilized and are currently assisting GOR in loan, grant and TA activities. The Project Management and Design Supervision Consultants and Community Awareness and Participation Consultants are supported by the project loan while the Sanitation Consultants are supported by the Sanitation Grant from the Bill and Melinda Gates Foundation.

Contracts for water supply and sewerage improvement in Tonk and Pali have already been awarded, and the preparations have been done to start physical works soon. Procurement for other contracts in the remaining four project cities has been initiated and are planned to be completed in 2016.

For the Policy-based Loan, Government of Rajasthan complied with all the required policy actions stipulated under Tranche 1, and accordingly, ADB released $125 million Tranche 1 amount to the Government to support reforms implementation. The Government is undertaking further steps to ensure compliance with policy actions under Tranche 2, which is due in 2017.

Geographical Location

Safeguard Categories

Environment B
Involuntary Resettlement B
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects

No significant impacts are anticipated for the project. Project locations are located outside protected areas and construction impacts will be mitigated through implementation of the EMPs as part of the contract documents.

The policy-based loan is not anticipated to have environmental impacts.

Involuntary Resettlement

The project does not involve permanent land acquisition or physical displacement. This component is anticipated to have limited resettlement impacts as facilities will be constructed in marginal areas of the towns where few persons reside or do business.

The policy-based loan is not anticipated to have social safeguard impacts.

Indigenous Peoples No adverse impacts on indigenous peoples are anticipated as the SDP focuses on urban areas.
Stakeholder Communication, Participation, and Consultation
During Project Design Meaningful and widespread consultations will be carried out with communities in the project areas.
During Project Implementation The project is implementing participatory programs with the assistance of a Social Development Officer at the Regional PMU, a CAPP Consultant at central level and City Level Local NGOs.

Business Opportunities

Consulting Services Rajasthan Urban Sector Development Program (RUSDP) will recruit two consulting firms, i.e., project management, design and supervision consultant; and community awareness and participation consultant using the quality- and cost-based selection method with a quality-cost ratio of 90:10 in accordance with ADB''s Guidelines on the Use of Consultants (2013, as amended from time to time).
Procurement Procurement of civil works will be carried out in accordance with ADB''s Procurement Guidelines (2013, as amended from time to time).

Responsible Staff

Responsible ADB Officer Manoj Sharma
Responsible ADB Department South Asia Department
Responsible ADB Division Urban Development and Water Division, SARD
Executing Agencies
Government of Rajasthan
RAJFD@RAJASTHAN.GOV.IN
Main Building, Secretariat, Jaipur-302 005, India

Timetable

Concept Clearance 13 Jun 2014
Fact Finding 30 Apr 2014 to 14 May 2014
MRM 03 Sep 2014
Approval 24 Oct 2014
Last Review Mission -
Last PDS Update 22 Mar 2016

Grant 0413-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Oct 2014 11 Sep 2015 25 Nov 2015 30 Jun 2020 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 2.00 Cumulative Contract Awards
ADB 0.00 24 Oct 2014 0.00 0.65 33%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 2.00 24 Oct 2014 0.00 0.00 0%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - - - -

Loan 3182-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Oct 2014 11 Sep 2015 25 Nov 2015 30 Jun 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 250.00 Cumulative Contract Awards
ADB 250.00 24 Oct 2014 125.00 0.00 50%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 24 Oct 2014 125.00 0.00 50%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - - - -

Loan 3183-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Oct 2014 11 Sep 2015 25 Nov 2015 30 Jun 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 360.00 Cumulative Contract Awards
ADB 250.00 24 Oct 2014 111.64 0.00 45%
Counterpart 110.00 Cumulative Disbursements
Cofinancing 0.00 24 Oct 2014 7.75 0.00 3%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - - - -

TA 8749-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Oct 2014 06 Jan 2015 06 Jan 2015 31 Dec 2017 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 24 Oct 2014 237,559.51
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - - - -

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Rajasthan Urban Sector Development Program, India: Sri Ganganagar Water Supply and Sewerage Works Resettlement Plans Sep 2014
Rajasthan Urban Sector Development Program: Jhunjhunu Water Supply and Sewerage Works Resettlement Plans Sep 2014
Rajasthan Urban Sector Development Program: Pali Water Supply and Sewerage Works Resettlement Plans Sep 2014
Rajasthan Urban Sector Development Program: Resettlement Framework Resettlement Frameworks Sep 2014
Rajasthan Urban Sector Development Program: Tonk Water Supply and Sewerage Works Resettlement Plans Sep 2014
Rajasthan Urban Sector Development Program: Hanumangarh Water Supply and Sewerage Works Resettlement Plans Sep 2014
Rajasthan Urban Sector Development Program: Bhilwara Sewerage Works Resettlement Plans Sep 2014
Rajasthan Urban Sector Development Program: Jhunjhunu Water Supply and Sewerage Subproject Initial Environmental Examination Aug 2014
Rajasthan Urban Sector Development Program Environmental Assessment and Review Framework Aug 2014
Rajasthan Urban Sector Development Program: Pali Water Supply and Sewerage Subproject Initial Environmental Examination Aug 2014
Rajasthan Urban Sector Development Program: Sri Ganganagar Water Supply and Sewerage Subproject Initial Environmental Examination Aug 2014
Rajasthan Urban Sector Development Program: Bhilwara Sewerage Subproject Initial Environmental Examination Aug 2014
Rajasthan Urban Sector Development Program: Tonk Water Supply and Sewerage Subproject Initial Environmental Examination Aug 2014
Rajasthan Urban Sector Development Program: Hanumangarh Water Supply and Sewerage Subproject Initial Environmental Examination Aug 2014

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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.