Project Name Karnataka Urban Development and Coastal Environmental Management Project
Project Number 30303-013
Country India
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 1704-IND: Karnataka Urban Development and Coastal Environmental Management Project
Ordinary capital resources US$ 175.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector

Water and other urban infrastructure and services - Water and other urban infrastructure and services

Gender Equity and Mainstreaming No gender elements
Description The objective of the Project is to optimize social and economic development in the urban areas of west Karnataka by supporting investments in urban infrastructure and services required to meet basic human needs and facilitating policy reforms to strengthen urban management. The Project will be undertaken in six parts: Part A will provide support for capacity building of local government administrations and community participation with particular emphasis on the formation of sustainable community-based organizations to participate in the design and implementation of poverty reduction subprojects; Part B will include water supply rehabilitation and expansion; Part C will improve urban environment quality, including wastewater management, storm water drainage, solid waste management, traffic management, and municipal services and facilities, such as public markets and slaughterhouses; Part D will improve transportation by upgrading streets and bridges in urban areas; Part E will focus on coastal environment management through the preparation of a coastal resource management and conservation plan, development of a cleaner production and environment monitoring program, promotion of coastal erosion protection through mangrove reforestation, and preparation of a Mangalore urban waterfront rehabilitation plan; and Part F will provide implementation assistance.
Project Rationale and Linkage to Country/Regional Strategy

Urban growth in the coastal districts has far exceeded the capacity of existing infrastructure and services with resultant negative impacts on human welfare, economic growth, and the natural environment. In addition, the inadequate environmental management measures have contributed to significant degradation of the region's valuable natural resources. The state identified ten urban centers as priority areas for investment in basic urban infrastructure, essential municipal services, and institutional strengthening. Each of these towns prepared subproject proposals that were initially reviewed by the state and the Bank in terms of likely eligibility for Bank financing and to assure that basic human needs are met along with other social and public health objectives.

The project fell within the Indian and State five year plans, in place in 1997 when the loan was first being formulated. It was listed in ADB's 3 year rolling country plans in 1997-1999. This was the second loan to Karnataka, following Loan 1415-IND: Karnataka Urban Infrastructure Development Project approved in 1996. The project was developed in close coordination with KUIDFC and the 10 participating towns.


Project Outcome

Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Urban Centers along the West Coast of Karnataka

Safeguard Categories

Environment B
Involuntary Resettlement
Indigenous Peoples

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

Business Opportunities

Consulting Services Project Management - A total of about 442 person months (134 person-months international and 308 person-months domestic) of consulting services will be required in the fields of project management, civil engineering, community development, law, urban planning, procurement, financial analysis, and computerization/MIS/GIS. Detailed Design and Supervision - A total of about 2,171 person-months of domestic consultants (1,180 person-months for Package 1 and 991 person months for Package 2) will be required with specialization in water supply and sanitation, roads, solid waste management, drainage, municipal facilities, and slum area upgrading.
Procurement Equipment and selected materials will be acquired using international competitive bidding and international shopping procedures as appropriate. Civil works contracts that are relatively small in value will be carried out using local competitive bidding procedures.

Responsible Staff

Responsible ADB Officer Dasgupta, Saugata
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
Karnataka Urban Infrast. Dev. and Finance Corp.
Mr. Arvind Srivastava
KUIDFC, Bangalore, India


Concept Clearance 08 Mar 1999
Fact Finding 30 Nov 1998 to 16 Dec 1998
MRM 08 Feb 1999
Approval 26 Oct 1999
Last Review Mission -
PDS Creation Date 29 Jan 2007
Last PDS Update 20 Apr 2010

LoanĀ 1704-IND

Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Oct 1999 19 May 2000 21 Sep 2000 30 Jun 2005 30 Sep 2009 25 Nov 2009
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 251.40 Cumulative Contract Awards
ADB 175.00 26 Oct 1999 141.32 0.00 97%
Counterpart 76.40 Cumulative Disbursements
Cofinancing 0.00 26 Oct 1999 145.00 0.00 100%

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