India : Rajasthan Urban Sector Development Program
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.
Project Details
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Project Officer
Kumar, Bhavesh
South Asia Department
Request for information -
Country/Economy
India -
Modality
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Sector
- Water and other urban infrastructure and services
Related Projects
| Project Name | Rajasthan Urban Sector Development Program | ||||||||||||||||
| Project Number | 42267-026 | ||||||||||||||||
| Country / Economy | India |
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| Project Status | Closed | ||||||||||||||||
| Project Type / Modality of Assistance | Grant Loan Technical Assistance |
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| Source of Funding / Amount |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Partnerships Private sector development |
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| Sector / Subsector | Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban sanitation - Urban sewerage - Urban water supply |
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| Gender | 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. |
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| 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. |
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| Impact | Sustainable urban development in Rajasthan |
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| Project Outcome | |
|---|---|
| Description of Outcome | Improved urban service delivery in Rajasthan |
| Progress Toward Outcome | Under the project loan, there are seven contracts which have been awarded (water supply in five project towns and sewerage improvement in six project towns), of which the Hanumangarh contract is being fully financed by the GOR with no ADB financing. Of the remaining six contracts, the balance works of terminated Tonk water supply and sewerage contract is awarded and the remaining five contracts are ongoing. For the policy-based loan, the Government of Rajasthan complied with all the required policy actions stipulated for release of the two Tranche amounts, and accordingly, $125 million was released in December 2015 and the remaining $125 million was released in November 2019. Under the Sanitation Grant from the Bill and Melinda Gates Foundation, civil works contracts for construction, operations and maintenance of fecal sludge treatment plant (FSTP) have been awarded for the towns of Sambhar-Phulera, Lalsot and Khandela and works are ongoing. |
| 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) | In progress. Output would be achieved upon completion of the ongoing works.In progress. Output would be achieved upon completion of the ongoing works.813.5 km sewer network has been laid so far.In progress. Output would be achieved upon completion of the ongoing works.In progress. Output would be achieved upon completion of the ongoing works.In progress. Output would be achieved upon completion of the ongoing works.In progress. Output would be achieved upon completion of the ongoing works.In progressIn progressLong Term Urban Development Policy for Rajasthan, State Sewerage and Waste Water Policy and HRD Plan for Urban Governance were approved by GOR. Urban Water Supply Policy has also been approved by GOR. A monitoring committee has also been established.Benchmarking of urban services has been initiated in 31 cities. Technical agency has been appointed to support benchmarking exercise over the next five years. GOR reported that the system of benchmarking of urban services is operational in 25 cities.In progressAn independent report conducted by an independent agency confirmed that water tariff has been revised to recover at least 30% of the O&M costs in the state of Rajasthan.Draft urban water supply policy, which includes system to monitor billing and collection efficiency, is approved by GOR.Water and wastewater quality monitoring system, as per national standards, established in the entire state of Rajasthan.In progress. Output would be achieved upon completion of the ongoing works.In progress. Output would be achieved upon completion of the ongoing works.In progress. Output would be achieved upon completion of the ongoing works.In progress. Output would be achieved upon completion of the ongoing works.In progress. 1410.29 Km of water pipeline has been laid so far.In progress. 100% coverage of residents targeted. 68948 Nos house service connections has been done so far.In progress. Output would be achieved upon completion of the ongoing works.In progress. Output would be achieved upon completion of the ongoing works.Rajasthan Urban Drinking Water, Sewerage and Infrastructure Corporation (RUDSICO) established and is providing direct technical support to more than 30 ULBs for project development and management. RUDSICO has prepared and approved Business Plan and Human Resource Development Policy.JWSSB Act passed. Business plan and human resource development policy documents prepared and adopted by Board. Same is endorsed by Government. Compliance document submitted to ADB.Based on tax collection efforts, 95 out of 190 ULBs in the state have collected Urban Development tax from more than 50% of the eligible properties. |
| 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 had no environmental impacts. |
| Involuntary Resettlement | The project does not involve permanent land acquisition or physical displacement. This component is anticipated to have limited resettlement impacts which are temporary and reversible in nature. The policy-based loan had no social safeguard impacts. |
| Indigenous Peoples | No adverse impacts on indigenous peoples are anticipated. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | Meaningful and widespread consultations carried out with communities in the project towns. |
| During Project Implementation | The project implemented 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) recruited 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 carried out in accordance with ADB's Procurement Guidelines (2013, as amended from time to time). |
| Responsible ADB Officer | Kumar, Bhavesh |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | India Resident Mission |
| Executing Agencies |
Government of Rajasthan |
| 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 | 03 Dec 2020 |
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 | 31 Mar 2021 | 20 Aug 2021 |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 2.00 | Cumulative Contract Awards | |||
| ADB | 0.00 | 29 Jun 2022 | 0.00 | 1.97 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 2.00 | 29 Jun 2022 | 0.00 | 1.97 | 100% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | Satisfactory | - | - | 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 | - | 07 Nov 2019 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 250.00 | Cumulative Contract Awards | |||
| ADB | 250.00 | 29 Jun 2022 | 250.00 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 29 Jun 2022 | 250.00 | 0.00 | 100% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | Satisfactory | - | - | 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 | 30 Sep 2020 | 16 Feb 2021 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 360.00 | Cumulative Contract Awards | |||
| ADB | 250.00 | 29 Jun 2022 | 109.57 | 0.00 | 100% |
| Counterpart | 110.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 29 Jun 2022 | 109.57 | 0.00 | 100% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | Satisfactory | - | - | 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 | 31 Oct 2018 | 25 Feb 2019 |
| 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 | 29 Jun 2022 | 1,063,478.90 |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Partly satisfactory | Partly satisfactory | Partly satisfactory | - | - | Partly satisfactory |
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ADB, India Sign $500 Million Loans to Improve Urban Services in Rajasthan
ADB and the Government of India have signed two loans worth $500 million to help the Government of Rajasthan better manage essential urban services and finance water supply and wastewater upgrades.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| 3183-IND: Rajasthan Urban Sector Development Program [RUSDP/Tonk/04] | Invitation for Bids | Closed | ||
| 3183-IND: Rajasthan Urban Sector Development Program (RUSDP/Tonk/03) | Invitation for Bids | Closed | ||
| National Knowledge Solutions Specialist | Individual - Consulting | Closed | ||
| Knowledge Management Expert | Individual - Consulting | Closed |
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| INCRMENTAL ADMINISTRATION EXPENSES FOR CY2019 | Loan 3183 | 09 Apr 2019 | VARIOUS | VARIOUS INDIA | Government of Rajasthan | 1,710,160.86 | 934,581.07 |
| DESIGN, CONSTRUCTION, OPERATION AND MAINTENANCE OF SEWERAGE INFRASTRUCTURE IN BHILWARA | Loan 3183 | 28 Sep 2017 | RAJKAMAL BUILDERS INFRASTRUCTURE PVT. LTD. | 54, PARK HILL SOCIETY, NEAR HEAVEN PARK SOCIETY, RAMDEVNAGAR, AHMEDABAD 380015 INDIA | Government of Rajasthan | 30,193,330.00 | 30,042,918.00 |
| Capacity Development | Technical Assistance 8749 | 17 Apr 2015 | PriceWaterhouseCoopers Pvt. Ltd., India in association with Jalakam Solutions Private Limited (India) | #8-2-293/82/A/1131A, Road No. 36, Jubile derabad, India/Andhra Pradesh 500 034, In, 17th Flr, Bldg 10, Tower C, DLF Cyber City | Rajasthan Urban Infrastructure Development Project | 1,000,000.00 | — |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Rajasthan Urban Sector Development Program: Procurement Plan | Procurement Plans | Oct 2020 |