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Raising Development Impact through Evaluation

India: Karnataka Urban Development and Coastal Environmental Management Project

Evaluation Document | 6 December 2016

Urban growth in India in the 1990s far exceeded the capacity of existing infrastructure and municipal services. Karnataka was one of the most urbanized states, and its capital, Bangalore, was one of the fastest growing metropolitan areas in the country. The state government of Karnataka identified 10 urban centers, along the west coast of the state, as priority areas for infrastructure investment. The economic growth potential of these urban centers was constrained by inadequate urban infrastructure, which negatively affected the living standards of the population and the natural environment.

The government sought ADB support to address infrastructure investment requirements. ADB approved a $175.0 million loan for the Karnataka Urban Development and Coastal Environmental Management Project on 26 October 1999. The project aims to improve improve urban infrastructure, operation and management, and resource mobilization in 10 project cities along the west coast of Karnataka, namely Ankola, Bhatkal, Dandeli, Karwar, Kundapura, Mangalore, Puttur, Sirsi, Udupi, and Ullal. The project had six components: (i) capacity building, community participation and poverty reduction; (ii) water supply systems rehabilitation and expansions; (iii) urban environmental improvement through sewage systems (iv) street and bridge improvements; (v) coastal environmental management; and (vi) implementation assistance.

This project performance evaluation report assesses the performance of project, and capture lessons for future interventions in the sector. Overall, the project is rated successful.

One of the lessons identified by the evaluation pertains to tariff setting, revenue collection, and public awareness campaigns which remain to be an essential long-term component of solutions to water and sewerage interventions.