India: Kolkata Environmental Improvement Investment Program (Facility Concept)

Sovereign (Public) Project | 42266-013

Kolkata is the capital of the Indian state of West Bengal, and one of the densest megacities in the world, with 24,000 people per square kilometer. Kolkata faces multiple challenges. In 2017, Kolkata had an estimated 5.2 million people; while the total population of the city and its suburbs was 14.7 million, making it the third-most populous metropolitan area in India. KMC is mandated to provide urban services including water supply and S&D to its citizens, but services are not uniform across the city. In 2007, Kolkata was identified as a hotspot for climate change and among the top 10 cities with high exposure to flooding under climate change forecasts by the Organization for Economic Cooperation and Development. In 2011, a detailed study by the World Bank assessed Kolkata's vulnerability to climate change and recommended investments in S&D systems. In 2011, KMC prepared an investment plan to improve the urban sector, which estimated the needed physical investment at $4 billion.

Project Name Kolkata Environmental Improvement Investment Program (Facility Concept)
Project Number 42266-013
Country India
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
MFF Facility Concept 0075-IND: MFF- Kolkata Environmental Improvement Investment Program (Facility Concept)
Ordinary capital resources US$ 400.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
Sector / Subsector

Water and other urban infrastructure and services / Water supply and sanitation

Gender Equity and Mainstreaming Effective gender mainstreaming
Description Kolkata is the capital of the Indian state of West Bengal, and one of the densest megacities in the world, with 24,000 people per square kilometer. Kolkata faces multiple challenges. In 2017, Kolkata had an estimated 5.2 million people; while the total population of the city and its suburbs was 14.7 million, making it the third-most populous metropolitan area in India. KMC is mandated to provide urban services including water supply and S&D to its citizens, but services are not uniform across the city. In 2007, Kolkata was identified as a hotspot for climate change and among the top 10 cities with high exposure to flooding under climate change forecasts by the Organization for Economic Cooperation and Development. In 2011, a detailed study by the World Bank assessed Kolkata's vulnerability to climate change and recommended investments in S&D systems. In 2011, KMC prepared an investment plan to improve the urban sector, which estimated the needed physical investment at $4 billion. KMC designed KEIIP to increase its climate resilience and urban services by adopting the recommendations from the 2011 World Bank study and following the investment plan and KMC's relevant master plans and policies. The program's associated policy framework aims to create an enabling environment for improved services. Adoption of a water loss roadmap in 2016, property tax reforms in 2017, and increases in urban services through Projects 1 and 2 of KEIIP (approved in 2012 and 2016, respectively) are helping KMC address some of the challenges identified by the policy framework. Project 3, approved in August 2018 continues expanding S&D coverage, provide treatment for sewage collected under KEIIP, and strengthen KMC's capacity for resilient urban services.
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. As shown in Table 1, 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 access to water supply and sanitation in KMC
Project Outcome
Description of Outcome Improved water supply, sewerage, and drainage service quality and operational sustainability in selected areas of KMC
Progress Toward Outcome Tranche 1 implementation ongoing.
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) Under Tranche 1, five civil works packages awarded, three of which started construction in 2014.
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects B
Involuntary Resettlement B
Indigenous Peoples C
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 consultants will be recruited accroding to ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). The procurement plan indicates the threshold, mode of procurement, and consultant selection, review procedures, and contract packages.
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 bididng documents for the national competitive bidding will be used throughout the Facility period.
Responsible ADB Officer Majumder, Sourav
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Timetable
Concept Clearance -
Fact Finding 24 May 2012 to 31 May 2012
MRM 14 Aug 2012
Approval 26 Sep 2013
Last Review Mission -
Last PDS Update 18 Mar 2015

MFF Facility Concept 0075-IND

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 570.00 Cumulative Contract Awards
ADB 400.00 - 0.00 0.00 %
Counterpart 170.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

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 Access to Information Policy (AIP) 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.

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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.


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.


Evaluation Documents See also: Independent Evaluation

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Related Publications

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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.

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Tenders

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Contracts Awarded

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Procurement Plan