India : MFF - North Karnataka Urban Sector Investment Program - Tranche 2
The North Karnataka Urban Sector Investment Program will help GoK rehabilitate existing urban infrastructure facilities and construct new ones in ULBs of North Karnataka. The Investment Program will assist GoK in meeting its urban sector investment plan and providing water supply systems, sewerage systems, drainage, and urban road resurfacing and junction improvements. The living environment in slums will be improved with the provision of basic services. Firefighting capacity improvements, tourism infrastructure, and lake rehabilitation are also included. The Investment Program will introduce private sector participation (PSP) in selected subsectors in selected ULBs and support ongoing institutional reforms and training for ULB staff currently being conducted by GoK under the Nirmala Nagar Program (NNP).
South Asia Department
Request for information
- Water and other urban infrastructure and services
|Project Name||MFF - North Karnataka Urban Sector Investment Program - Tranche 2|
|Country / Economy||India
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
|Sector / Subsector||
Water and other urban infrastructure and services / Other urban services - Urban policy, institutional and capacity development - Urban sewerage - Urban slum development - Urban water supply
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The North Karnataka Urban Sector Investment Program will help GoK rehabilitate existing urban infrastructure facilities and construct new ones in ULBs of North Karnataka. The Investment Program will assist GoK in meeting its urban sector investment plan and providing water supply systems, sewerage systems, drainage, and urban road resurfacing and junction improvements. The living environment in slums will be improved with the provision of basic services. Firefighting capacity improvements, tourism infrastructure, and lake rehabilitation are also included. The Investment Program will introduce private sector participation (PSP) in selected subsectors in selected ULBs and support ongoing institutional reforms and training for ULB staff currently being conducted by GoK under the Nirmala Nagar Program (NNP).|
|Project Rationale and Linkage to Country/Regional Strategy|
|Impact||Improved quality of life relative to the whole state.|
|Description of Outcome||Improved basic urban services for people living in program 22 ULBs.|
|Progress Toward Outcome||Execution of civil works is still ongoing and the target outcome for sanitation and water supply infrastructures have not yet been achieved.|
|Description of Project Outputs||
Enhance capacity of urban infrastructure - Slum Improvement
Enhance capacity of urban infrastructure - Institutional Development
Enhance capacity of urban infrastructure - Non-Municipal
Enhance capacity of urban infrastructure - Water Supply
Enhance capacity of urban infrastructure - Sanitation (Sewerage)
|Status of Implementation Progress (Outputs, Activities, and Issues)||
1. Slum Improvement - Physical works in progress. 3,159 slum households, including 600 women headed households, (out of 4,000) have been provided with improved water facilities and 5,323 slum households (out of 4,000) with improved sanitation. NGOs were appointed and have provided support for training and capacity development activities.
2. Institutional Development:
2.1 Implementation of property tax as amended in the Karnataka Municipal Act 1964 with 75% coverage - Achieved in all 25 ULBs. Self-assessment system/capital value system for property tax has been undertaken in all 25 project towns; and collection levels are improving, averaging nearly 83.53% (till end of Mar 2015 for financial year 2014-15). To secure further improvements, base and property mapping is underway in all towns except for 5 towns, which are being financed under tranche 3.
2.2 Application of the Fund-Based Accounting System (FBAS) for all ULBs - Achieved in all 25 ULBs. However, there is a need to further improve property values assessments and collection levels. For this purpose, base and property mapping is underway in all NKUSIP towns except for five, which are being taken up under Project 3.
2.3 Introduction of volumetric water tariff (w/ water supply subproject before commissioning) for all 9 ULBs - GOK first directed ULBs to adopt volumetric tariffs in 1996 and has since provided both technical support (through advisory functions and preparation of relevant manuals) and community education support (through the Education and Communication campaigns under Project 2) to enhance acceptance of tariffs among citizens. Effective 20 July 2011, GOK issued a revised tariff order making metering compulsory. All ULBs receiving water subprojects have passed resolutions ahead of subproject implementation. ULBs, however, have low collection efficiencies (partly due to the poor water service being provided prior to completion of works). Project 4 considers operator contracts for watery supply and operator payments would be out of volumetric water tariff collected.
2.4 Introduction of sewerage tariff (w/ sewerage subproject before commissioning) for all 12 ULBs - For many of NKUSIP s ULBs, sewerage services are being introduced for the first time and thus few ULBs have a sewerage tariff in place. Effective 20 July 2011, GOK issued a revised tariff order requiring the introduction of sewerage tariffs.
2.5 Introduction of PPP contract - Contract awarded to successful bidder for 24x7 water supply subproject in Ilkal under PBMC. Civil works are completed and preparatory works for operations is ongoing. Mainstreaming activities underway in Project 4.
3. Non-Municipal Infrastructure - Improvement of Tourism Infrastructure in 2 ULBs and Construction of District Information Centers in 2 ULBs were completed. Procurement of fire-fighting equipment for 7 ULBs consisting of 4 packages has also been completed.
4. Sanitation - Physical works are still in progress: 5,400 households with sewerage facilities; 738 km, of new sewers built/rehabilitated; 8.05 km of new drains have been built/rehabilitated.
5. Water Supply - Physical works are still in progress: 11,850 households with improved water facilities; 868 km of pipe networks have been built/rehabilitated.
|Geographical Location||Badami, Basavakalyan, Belgaum, Bellary, Bidar, Bijapur, Gadag-Betageri, Gangawati, Gokak, Gulbarga, Haveri, Hospet, Hubli-Dharwad, Ilkal, Jamkhandi, Koppal, Nipani, Rabkavi-Banhatti, Ranibennur, Shahabad, Sindhnur, Yadgir|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The Tranche 2 subprojects are consistent with the MFF's design which maximizes environmental and public health benefits. IEEs were conducted for Tranche 2 subprojects in accordance with the EARP for the MFF. These IEEs show that net environmental benefits are positive and large: more and better-quality drinking water from water supply subprojects; better public health, particularly fewer waterborne diseases through water supply, sewerage, and drainage investments; improved aesthetics through sewerage and drainage works; and reduced flooding through drainage improvements. Negative impact, if any, during construction and operation will not be significant because larger facilities will be built in low density and non-sensitive areas, the works will be quickly constructed, and simple technologies with low maintenance requirements will have preference. ADB approved the updated IEE reports for the sub-projects. Adverse impacts are minimized by implementing EMP measures.|
|Involuntary Resettlement||Subprojects under the Tranche 2 are designed to minimize land acquisition and resettlement impacts. To the extent feasible, subprojects involving rehabilitation will be accommodated within the existing facilities' premises to avoid land acquisition and resettlement. Subprojects involving construction of water supply, sewerage, and drainage facilities are proposed on vacant government land wherever possible. Overall impacts will be further minimized through careful siting and alignment during detailed design and subproject implementation. The resettlement framework (RF) prepared for the MFF outlines the objectives, policy, principles, and procedures for involuntary resettlement, and related assistance measures for affected persons. It was decided that all affected persons are to be compensated and/or resettled in accordance with the RP before commencement of civil works.|
|Indigenous Peoples||There are no indigenous people impacts in sample projects to date. In the event any impacts are seen in non-sample subprojects, these will follow the requirement of the Indigenous Peoples Development Framework (IPDF). The RF also provides specific measures made through additional entitlements accorded to vulnerable groups which include IPs.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||Consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants to assist the Government in implementing the Investment Program. One Apex NGO and national NGOs will be engaged for Information, Education and Communication (IEC) activities.|
|Procurement||Procurement of all goods and services under the Investment Program will be undertaken in accordance with ADB's Guidelines for Procurement, and in accordance with the rules and regulations of the Government acceptable to ADB. Some of civil works (water, sanitation, and drainage) contracts have been awarded. Remaining contracts will be awarded soon.|
|Responsible ADB Officer||Liau, Charlene|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||India Resident Mission|
Karnataka Urban Infrastructure Development and Finance Corporation Limited
Mr. Shrivastava, IAS
Silver Jubilee Block, 2nd floor, Unity B, 3rd Cross, Mission Road, Bangalore, India 560 027
|Concept Clearance||04 Sep 2004|
|MRM||05 Mar 2008|
|Approval||14 Jun 2010|
|Last Review Mission||-|
|PDS Creation Date||22 Jan 2008|
|Last PDS Update||31 Mar 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|14 Jun 2010||16 Dec 2010||01 Mar 2011||30 Jun 2016||05 Dec 2016||20 Apr 2017|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||123.00||Cumulative Contract Awards|
|ADB||123.00||17 Jun 2022||116.07||0.00||100%|
|Cofinancing||0.00||17 Jun 2022||116.07||0.00||100%|
|Status of Covenants|
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.
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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.
Evaluation Documents See also: Independent Evaluation
|Title||Document Type||Document Date|
|India: North Karnataka Urban Sector Investment Program (Tranche 2)||Validations of Project Completion Reports||Nov 2022|
None currently available.
The Access to Information Policy (AIP) 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.
Karnataka Town Works with Private Sector to Become First in India with 24/7 WaterIlkal in the southern Indian state of Karnataka is the first town in the country to receive clean water 24/7 over its entire territory thanks to an innovative water supply project involving the private sector.
|Contract Title||Approval Number||Contract Date||Contractor | Address||Executing Agency||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|Slum Development Works in Jamakhandi Town, Bagalkot District under NKUSIP (Balance Amount)||Loan 2638||31 Mar 2017||Abhiram Infra Projects Pvt. Ltd. | Fortis Mount,6-3-497/1/C Venkataramana Colony,Anand Nagar Khairatabad Hyderabad India||Karnataka Urban Infrastructure Development and Finance Corporation||144,888.45||130,423.50|
|Slum Improvement Works in Chamarajanagar CMC||Loan 2638||17 Mar 2017||Sri Gururaghavendra Enterprises | 229/A Cauvery Main Road, Raghavenra Nagar Mysore - 570011 India||Karnataka Urban Infrastructure Development and Finance Corporation||412,993.28||412,993.28|
None currently available.