India: Karnataka Integrated Urban Water Management Investment Program-Tranche 2

Sovereign Project | 43253-027

Tranche 2 will enhance urban water supply and sanitation infrastructure; and improve water resource planning, monitoring and service delivery in four coastal towns (Kundapura, Mangalore, Puttur, and Udupi). The rapid pace of economic development and urbanization of the coastal region of Karnataka has put considerable stress on the existing urban water supply and sanitation infrastructure. The groundwater table is shallow and contaminated by saltwater intrusion. The coastal towns should promote the efficient and sustainable use of water by reducing nonrevenue water, expanding water treatment capacity, improving storage facilities, and extending more connections to end-users. The sewerage system of Mangalore requires immediate rehabilitation and upgrading to enhance the capacity of the pumping main and expand coverage. To offer improved water services, urban local bodies (ULBs) must enhance their technical and financial capacity.

Project Name Karnataka Integrated Urban Water Management Investment Program-Tranche 2
Project Number 43253-027
Country India
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3726-IND: Karnataka Integrated Urban Water Management Investment Program-Tranche 2
Ordinary capital resources US$ 75.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Water and other urban infrastructure and services / Urban sewerage - Urban water supply

Gender Equity and Mainstreaming Effective gender mainstreaming
Description Tranche 2 will enhance urban water supply and sanitation infrastructure; and improve water resource planning, monitoring and service delivery in four coastal towns (Kundapura, Mangalore, Puttur, and Udupi). The rapid pace of economic development and urbanization of the coastal region of Karnataka has put considerable stress on the existing urban water supply and sanitation infrastructure. The groundwater table is shallow and contaminated by saltwater intrusion. The coastal towns should promote the efficient and sustainable use of water by reducing nonrevenue water, expanding water treatment capacity, improving storage facilities, and extending more connections to end-users. The sewerage system of Mangalore requires immediate rehabilitation and upgrading to enhance the capacity of the pumping main and expand coverage. To offer improved water services, urban local bodies (ULBs) must enhance their technical and financial capacity. Climate adaptation measures are required to protect this ecologically sensitive region from climate change impacts.
Project Rationale and Linkage to Country/Regional Strategy On 28 March 2014, the Asian Development Bank (ADB) approved the provision of a loan under a multitranche financing facility for the Karnataka Integrated Urban Water Management Investment Program, for an aggregate amount not exceeding $150 million until 15 March 2024. Karnataka is one of India's most water-stressed states, and its rapid urbanization and industrialization require effective management of available water resources. The road map of the program seeks to enhance sustainable water security in Karnataka. The policy framework will follow the principle of integrated water resources management (IWRM) to establish a process of coordinated planning, development, and management of urban water resources. The investment program (i) provides investment support to modernize and expand urban water supply and sanitation services; (ii) strengthens institutions to improve water use efficiency, productivity, and sustainability; and (iii) pursues innovative technologies and instruments such as public private partnerships and reform-oriented incentive funds. The executing agency is the State of Karnataka, acting through the Karnataka Urban Infrastructure Development and Finance Corporation Limited.
Impact Sustainable water security in selected river basins in Karnataka improved.
Project Outcome
Description of Outcome Urban water resource management in four coastal towns (Kundapura, Mangalore, Puttur, and Udupi) improved.
Progress Toward Outcome Not yet due. All four Works and Services for the O&M of 24x7 WSS contracts in four coastal towns (Kundapura, Mangalore, Puttur, and Udupi) were awarded and are in various stages of implementation. One sewerage works contract in Mangalore achieved 64% physical progress.
Implementation Progress
Description of Project Outputs

1. Urban water supply and sanitation infrastructure expanded and upgraded

2. Water resource planning, monitoring, and service delivery system of urban local bodies improved

3. Institutional capacity of executing agency and urban local bodies strengthened.

Status of Implementation Progress (Outputs, Activities, and Issues)

1. Urban water supply and sanitation infrastructure expanded and upgraded

By September 2023:

1A. Water supply systems upgraded in four towns

Not yet due. All four Works and Services for the O&M of 24x7 WSS contracts were awarded.

- Kundapura: physical progress at 79%.

- Udupi and Puttur: design validation completed and physical progress at 20% and 21% respectively.

- Mangalore: design validation ongoing.

1B. Sewerage systems rehabilitated in Mangalore

Not yet due. One works contract for the Replacement of Old Sewerage Pumping Mains and Rehab. of Sewerage System in Mangalore achieved 64% physical progress.

2. Water resource planning, monitoring, and service delivery improved

By September 2023:

2A. Operational capacity through policy and institutional reform actions strengthened

Not yet due. The recent progress includes rolling out the IT modules to P1 and P2 towns. KUIDFC has developed: (i) consumers database, procedure for availing water connections, water bill generation in both flat and volumetric modes (IT-1); and (ii) ring fenced accounting of water and wastewater services, enabling the ULBs to assess the income, revenue, and profit/loss (IT-2).

2B. Gender-responsive and inclusive service delivery systems institutionalized

Not yet due. Recruitment of NGO at final stage.

2C. Climate-resilient policy actions implemented Not yet due. An ADB expert mobilized to support KUIDFC and ULBs to implement policy actions.

3. Institutional capacity of executing agency and urban local bodies strengthened

By September 2023:

Not yet due. Administrative Staff College of India (ASCI) was appointed as capacity building consultant for Project 1 and Project 2 trainings has been initiated where 4 batches have been completed.

Geographical Location Kundapura, Mangalore, Puttur, Udupi
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The environmental assessment and review frameworks and IEEs for all subprojects have been prepared, reviewed, and disclosed in accordance with the SPS, including disclosure to affected people. The IEEs demonstrate that subproject sites are not within or adjacent to environmentally sensitive areas, and that works will likely have only small-scale, temporary, and local impacts on the environment that can be readily mitigated and minimized by applying proven measures and construction practices. The stakeholders were involved through meaningful consultations and their views were incorporated in the planning and development of the subprojects. The consultation process will be continued during project implementation. Environmental grievances will be handled according to the grievance redress mechanism developed for Project 1 and included in the PAM. The IEEs will form part of the bid and contract documents. No works can be commenced until ADB approves the final IEEs. Consultant support to the PMU is included to supervise and monitor environmental safeguards compliance. The KUIDFC will continue to report to ADB semiannually on the implementation of environmental management plans.
Involuntary Resettlement Limited involuntary resettlement impacts are envisaged. The total land requirement for Project 2 is about 5.09 ha, of which about 5.02 ha. are owned by the government, with the remaining 0.068 ha privately owned. The project will potentially have temporary impacts on people's livelihoods, including 75 shops and small business owners, of whom one is identified as vulnerable. In addition, it is anticipated that three vulnerable persons will face loss of fruit-bearing trees grown on municipal land. The project will ensure that they are compensated for their loss at the replacement cost of the trees, and will provide additional assistance to the vulnerable persons. The KUIDFC has prepared draft resettlement plans for the Kundapura and Udupi water-supply-system and Mangalore sewerage subprojects. Draft due diligence reports have been prepared for the Mangalore and Puttur water-supply-system subprojects. Safeguard documents will be finalized based on detailed measurement surveys during project implementation, and will be reviewed and approved by ADB. The resettlement plans will be disclosed to affected people and communities and posted on the KUIDFC and ADB websites. Social safeguards monitoring and reporting to ADB will continue on a semiannual basis.
Indigenous Peoples No indigenous peoples have been identified within the project areas and/or sites. If indigenous peoples' issues are identified during projectimplementation, the mitigation actions will be prepared according to the updated indigenous peoples planning framework and the SPS.
Stakeholder Communication, Participation, and Consultation
During Project Design Information flows will focus on: (i) sharing project information (scope and progress) with decision makers, responsible agencies, consultants and contractors; (ii) explaining the project and resolving concerns raised by affected persons; and (iii) involving beneficiaries in field-level monitoring activities and awareness campaign. The Community Awareness and Participation Plan provides information on: (i) who is responsible to ensure the actions and strategy are implemented, (ii) targets, (iii) means of verification, and (iv) timelines to implement the plan and strategy.
During Project Implementation Meaningful and widespread consultation will continue throughout implementation. The project will engaged a NGO who is working closely with the poor, the disadvantaged, and women to promote community participation and development. Household level disaggregated data (by ethnicity, sex, and social and economic status) are being collected to inform targeted programming and identify implementation gaps in relation to social inclusion.
Business Opportunities
Consulting Services All consultants will be financed by the State Government. KUIDFC has long standing experience recruiting and managing consultants. In line with ADB's Procurement Guidelines (2015, as amended from time to time), ADB shall satisfy itself that: (i) the procedures to be used will result in the selection of consultants who have the necessary professional qualifications, (ii) the selected consultants will carry out the assignment in accordance with the agreed schedule, and (iii) the scope of the services is consistent with the needs of the project. The consultants will be engaged using the quality- and cost-based selection (QCBS) method with a standard quality: cost ratio of 90:10.
Procurement All procurement of goods and works will follow ADB's Procurement Guidelines (2015, as amended from time to time). The KUIDFC has prior and ongoing experience in implementing procurement for projects financed by ADB and other organizations. A procurement risk assessment in 2016 recommended that the KUIDFC be given a low to moderate procurement risk rating because it lacked experience in procuring large contract packages. Another risk is that procurement packages will not ensure the participation of capable bidders. These risks will be mitigated through the prior review of evaluation by ADB of contracts worth more than $20 million, hiring of consultants with experience in procurement of large contracts, and proactive sourcing and classification of competent bidders. The KUIDFC, with support from the PMDCSC, will also implement the capacity building for ULB officials to enhance project management, procurement, and contract administration.
Responsible ADB Officer Majumder, Sourav
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
Karnataka Urban Infrastructure Development and Finance Corporation Limited
Ms. Shamim Bano
[email protected]
Silver Jubilee Block
2nd Cross, Mission Road, Bangalore-27
INDIA
Ministry of Finance (Aid Accounts & Audit Division)
[email protected]
5th Floor, B Wing, Janpath Bhawan
Janpath, New Delhi 110 001
India
Timetable
Concept Clearance -
Fact Finding -
MRM 04 Jun 2018
Approval 17 Oct 2018
Last Review Mission -
Last PDS Update 14 Apr 2020

Loan 3726-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Oct 2018 27 Nov 2018 11 Feb 2019 15 Mar 2024 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 109.80 Cumulative Contract Awards
ADB 75.00 29 Sep 2021 72.59 0.00 97%
Counterpart 34.80 Cumulative Disbursements
Cofinancing 0.00 29 Sep 2021 33.80 0.00 45%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - - - -

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.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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.

Title Document Type Document Date
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Udupi Water Supply System (Package No. 02UDP01) Initial Environmental Examination Initial Environmental Examination Jul 2021
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Social Monitoring Report (August 2020-January 2021) Social Monitoring Reports Jun 2021
Karnataka Integrated Urban Water Management Investment Program – Tranche 2: Puttur Water Supply System (Package No. 02PTR01) Updated Initial Environmental Examination Initial Environmental Examination May 2021
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Environmental Monitoring Report (July-December 2020) Environmental Monitoring Reports Mar 2021
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Environmental Monitoring Report (January-June 2020) Environmental Monitoring Reports Mar 2021
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Mangalore Water Supply System (Package No. 02MNG01) Initial Environmental Examination Initial Environmental Examination Mar 2021
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Social Monitoring Report (February-July 2020) Social Monitoring Reports Oct 2020
Karnataka Integrated Urban Water Management Investment Program – Tranche 2: Udupi Water Supply System (Package No. 02UDP01) Updated Initial Environmental Examination Initial Environmental Examination Jun 2020
Karnataka Integrated Urban Water Management Investment Program (Tranche 2): 24x7 Water Supply Distribution Network for Udupi City (Package No. 02UPD01) Resettlement Plan Resettlement Plans Apr 2020
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Social Monitoring Report (August 2019-January 2020) Social Monitoring Reports Apr 2020
Karnataka Integrated Urban Water Management Investment Program (Tranche 2): Replacement of Old Sewerage Pumping Main for Mangalore City (Package No. 02MNG02) Resettlement Plan Resettlement Plans Mar 2020
Karnataka Integrated Urban Water Management Investment Program – Tranche 2: Environmental Monitoring Report (July-December 2019) Environmental Monitoring Reports Jan 2020
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Social Monitoring Report (February-July 2019) Social Monitoring Reports Aug 2019
Karnataka Integrated Urban Water Management Investment Program – Tranche 2: Environmental Monitoring Report (February-July 2019) Environmental Monitoring Reports Jul 2019
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Puttur City Bulk Water Supply and Distribution Network (Package No. 02PTR01) Updated Land Acquisition and Resettlement Due Diligence Report Safeguards Due Diligence Reports May 2019
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Kundapura Town Bulk Water Supply and Distribution Network Resettlement Plan Resettlement Plans Mar 2019
Karnataka Integrated Urban Water Management Investment Program – Tranche 2: Puttur Water Supply System (Package No. 02PTR01) Initial Environmental Examination Initial Environmental Examination Feb 2019
Karnataka Integrated Urban Water Management Investment Program – Tranche 2: Udupi Water Supply System (Package No. 02UDP01) Initial Environmental Examination Initial Environmental Examination Feb 2019
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Kundapura Water Supply System (Package no. 02KDP01) Initial Environmental Examination Initial Environmental Examination Aug 2018
Karnataka Integrated Urban Water Management Investment Program (Tranche 2): Mangalore City Old Sewerage Pumping Mains (Package No. 02MNG02) Initial Environmental Examination Initial Environmental Examination Aug 2018
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Kundapura Water Supply System (Package no. 02KDP01) Initial Environmental Examination Initial Environmental Examination May 2018
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Mangalore City Old Sewerage Pumping Main (Package No. 02MNG02) Resettlement Plan Resettlement Plans May 2018
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Udupi Water Supply System (Package no. 02UDP01) Initial Environmental Examination Initial Environmental Examination May 2018
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Environmental Assessment and Review Framework Environmental Assessment and Review Framework May 2018
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Kundapura Town Bulk Water Supply and Distribution Network (Package No. 02KND01) Resettlement Plan Resettlement Plans May 2018
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Mangalore City Sewerage Pumping Mains (Package no. 02MNG02) Initial Environmental Examination Initial Environmental Examination May 2018
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Mangalore City Bulk Water Supply and Distribution (Package No. 02MNG01) Land Acquisition and Resettlement Due Diligence Report Safeguards Due Diligence Reports May 2018
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Indigenous Peoples Planning Framework Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks May 2018
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Mangalore City Water Supply Distribution System (Package no. 02MNG01) Initial Environmental Examination Initial Environmental Examination May 2018
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Resettlement Framework Resettlement Frameworks May 2018
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Puttur Water Supply System (Package no. 02PTR01) Initial Environmental Examination Initial Environmental Examination May 2018
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Puttur City Bulk Water Supply and Distribution Network (Package No. 02PTR01) Land Acquisition and Resettlement Due Diligence Report Safeguards Due Diligence Reports Mar 2018
Karnataka Integrated Urban Water Management Investment Program - Tranche 2: Udupi Water Supply System (Package no. 02UPD01) Resettlement Plan Resettlement Plans Mar 2018

Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

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.

Tenders

Tender Title Type Status Posting Date Deadline
Loan No. 3726-IND: Karnataka Integrated Urban Water Management Investment Program-Tranche 2 [02MNG01] Invitation for Bids Closed 19 Feb 2019 22 Apr 2019

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
IMPLEMENTING 24X7 WATER SUPPLY SYSTEM (STRENGTHENI NG DISTRIBUTION SYSTEM) INCLUDING 8 YEARSO&M FOR MANGALORE CITY Loan 3726 04 Dec 2019 SPPL-SIPL-DRS INFRA JV | UNITECH BUSS.PARK,TWR-A,2F,SOUTH CITY-1, GURGAON-122001, HARYANA, INDIA INDIA Karnataka Urban Infrast. Dev. & Finance Corp Ltd. 111,996,225.61 38,677,703.08
CONSTRUCTION OF DISTRIBUTION SYSTEM FOR 24X7 WATER SUPPLY INCLUDING SERVICES FOR OPERATION AND MANAGEMENT FOR UDUPI CITY(PACKAGE NO. 02UDP01) Loan 3726 25 Feb 2019 SUEZ PROJ PVT LTD (SPPL)- SUEZ INDIA PVT LTD | UNITECH BUSINESS PARK, TOWER-A,2ND FLOOR SOUTH CITY-1, GURGAON-122001, HARYANA INDIA Karnataka Urban Infrast. Dev. & Finance Corp Ltd. 24,262,137.82 12,987,416.16
CONSTRUCTION OF WORKS AND SERVICES FOR OPERATION AND MANAGEMENT OF 24X7 WATER SUPPLY SYSTEM FOR PUTTUR TOWN IN KARNATAKA (PACKAGE NO. 02PTR01 Loan 3726 25 Feb 2019 SUEZ PROJ PVT LTD (SPPL)-SUEZ INDIA PVT LTD | UNITECH BUSINESS PARK, TOWER-A,2ND FLOOR SOUTH CITY-1, GURGAON-122001, HARVANA INDIA Karnataka Urban Infrast. Dev. & Finance Corp Ltd. 15,861,690.25 8,918,293.30
REPLACEMENT OF OLD SEWERAGE PUMPING MAINS AND REHABILITATION OF SEWERAGW SYSTEM FOR MANGALORE CITY (PACKAGE NO. 02MNG02) Loan 3726 25 Feb 2019 DRS INFRATECH PVT LIMITED | S-1, PRIYA APARTMENTS, RAJBHAWAN ROAD SOMAJIGUDA, HYDERABAD 500082 INDIA Karnataka Urban Infrast. Dev. & Finance Corp Ltd. 13,103,521.26 10,882,914.04
CONSTRUCTION OF WORKS AND SERVICES FOR OPERATION A ND MANAGEMENT OF 24X7 WATER SUPPLY SYSTEM FOR KUND APURA TOWN IN KARNATAKA (CONTRACT PACKAGE 02KDP0 Loan 3726 25 Feb 2019 LAXMI CIVIL ENGINEERING SERVICES PVT. LTD. | 1031/K2,E WARD,3RD FLR,STERLING TOWER GAVAT MANDAI,KOLHAPUR-416001,MAHARASTRA INDIA Karnataka Urban Infrast. Dev. & Finance Corp Ltd. 4,979,171.63 2,867,498.94