India : Kerala Urban Water Services Improvement Project

Sovereign Project | 49106-006

The proposed project will support inclusive access to safe, reliable, efficient, climate-resilient, and sustainable water supply in Kochi, the commercial capital of the state of Kerala. The project will bring transformational change in the water supply services in Kochi by introducing sound operation and preventive maintenance practices and nurturing a culture of asset management in Kerala Water Authority (KWA). An innovative performance-based contract will be introduced to improve the capacity and governance of KWA through better customer orientation, operational efficiencies, and management of the water distribution assets. The improved operational management and reduced water losses expected to be achieved by the project will contribute to building the climate resilience of the water supply services in Kochi.

Project Name
Kerala Urban Water Services Improvement Project
Project Number
49106-006
Country / Economy
  • India
Project Status
Approved
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan 4390-IND: Kerala Urban Water Services Improvement Project
Source Amount
Ordinary capital resources US$ 170.00 million
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP4: Making cities more livable
  • OP6: Strengthening governance and institutional capacity
Sector / Subsector
  • Water and other urban infrastructure and services / Other urban services - Urban water supply

Gender
Effective gender mainstreaming
Description
The proposed project will support inclusive access to safe, reliable, efficient, climate-resilient, and sustainable water supply in Kochi, the commercial capital of the state of Kerala. The project will bring transformational change in the water supply services in Kochi by introducing sound operation and preventive maintenance practices and nurturing a culture of asset management in Kerala Water Authority (KWA). An innovative performance-based contract will be introduced to improve the capacity and governance of KWA through better customer orientation, operational efficiencies, and management of the water distribution assets. The improved operational management and reduced water losses expected to be achieved by the project will contribute to building the climate resilience of the water supply services in Kochi. The project will generate knowledge solutions and provide learning opportunities for the water utilities in India and other member countries to replicate good practices, including the innovative performance-based contract.
Project Rationale and Linkage to Country/Regional Strategy
Kerala, with an estimated population of 35 million, is India's second-most urbanized state. The urban population, which stood at about 15.9 million in 2011, is expected to increase to 35.6 million by 2036. While cities are economic powerhouses and innovation hubs that improve livelihoods and trigger prosperity, rapid urbanization adds a burden to already overstretched urban infrastructure and services. The urban challenge in Kerala is further compounded by the unique settlement pattern of a rural-urban continuum necessitating the distribution of scarce resources across larger areas. As Kerala becomes increasingly urban, it needs to improve access, efficiency, and sustainability of urban services along with resilient spatial planning, infrastructure development, and institutional capacity. Kochi, the project city, is one of the fastest-growing urban areas in India. As a result of suboptimal urban services, the ranking of Kochi in the Government of India's Ease of Living Index 2020 remained low at 75th out of 111 Indian cities, down from 45th in 2018. Unreliable and intermittent water supply services and inadequate infrastructure constrain economic development, reduce the living standard of the people, increase the risk of waterborne disease, and negatively affect the financial and environmental sustainability of the services.
Impact

Living standards and well-being of citizens in Kerala improved (Rebuild Kerala Development Programme)

Water use efficiency improved for water resource sustainability (Perspective Plan 2030 Kerala)

Project Outcome

Description of Outcome

Inclusive access to safe, reliable, efficient, climate-resilient, and sustainable water supply in Kochi achieved

Progress Toward Outcome

Implementation Progress

Description of Project Outputs

Climate-resilient water supply system with sustainability mechanism established

KWA's institutional capacity and community awareness improved

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Kochi, Thiruvananthapuram

Safeguard Categories

Environment
B
Involuntary Resettlement
B
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects

The borrower and KWA as the implementing agency shall be responsible for compliance with ADB Safeguard Policy Statement (SPS) 2009.

As agreed by ADB and the KWA, the environmental management plans and resettlement plan will be updated by the KWA from time to time during project implementation, upon the availability of detailed engineering design, and to reflect adaptive management of project changes and unforeseen circumstances or in response to project performance, ensuring that standards originally planned are not lowered.

See L4390 Project Administration Manual for Institutional Arrangements for Safeguards Implementation: https://www.adb.org/projects/documents/ind-49106-006-pam.

Involuntary Resettlement

KWA has prepared two due diligence reports and one resettlement plan for Kerala Urban Water Services Improvement Project at Kochi in accordance with the ADB SPS and government laws to cover the proposed water supply project components. The KWA will ensure that the resettlement plan is implemented, resettlement and rehabilitation compensation and assistance are paid, following the agreed entitlement matrix, prior to the start of construction work. No construction work will commence until compensation has been provided to the affected persons. The draft resettlement plan will be finalized and updated based on the final design and detailed measurement survey and submitted to ADB for review and approval.

See L4390 Project Administration Manual for Institutional Arrangements for Safeguards Implementation: https://www.adb.org/projects/documents/ind-49106-006-pam.

Indigenous Peoples
No direct or indirect impacts are anticipated on the indigenous people.

Stakeholder Communication, Participation, and Consultation

During Project Design
Stakeholder communication and consultation have been done during the project design phase.
During Project Implementation

Business Opportunities

Consulting Services

Advance contracting under the project includes the following:

1) Loan Implementation Support Unit Consultancy ($4.4 million) This contract has been tendered and is waiting for contract award.

Consultant contracts expected during project implementation:

1) Capacity Development for Kerala Water Authority on Water Supply and Wastewater Services ($2 million)

2) Individual Consultants (multiple positions: financial management, gender, safeguard etc.) ($0.50 million)

Procurement

Advance contracting under the project includes the following:

1) Water distribution network improvements and NRW reduction in Kochi ($119.10 million). This package has been tendered and is waiting for contract award.

Contracts expected during project implementation:

1) Water Production Improvements in Kochi ($50.70 million)

2) Improving laboratory information management system ($0.15 million)

3) Improving asset information management system ($0.15 million)

4) Hardware for IT system ($00.40 million)

5) Equipment for training and water supply service delivery ($0.30 million)

6) Improving IT systems in billing and revenue collection ($0.70 million)

7) Emergency rehabilitation works for Aruvikkara WTP ($1.80 million)

Contact

Responsible ADB Officer
Shoji, Hikaru
Responsible ADB Department
Sectors Group
Responsible ADB Division
Water and Urban Development Sector Office (SG-WUD)
Executing Agencies
Water Resources Department,Government of Kerala

Timetable

Concept Clearance
17 Jun 2020
Fact Finding
-
MRM
-
Approval
23 Nov 2023
Last Review Mission
-
Last PDS Update
20 Mar 2024

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.


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
49106-IND: Kerala Urban Water Services Improvement Project (KUWSIP) [2A] - CORRIGENDUM Invitation for Bids Closed
49106-IND: Kerala Urban Water Services Improvement Project (KUWSIP) [2A] - ORIGINAL Invitation for Bids Closed
49106-006 IND: Kerala Urban Water Services Improvement Project Advance Notice Active
Loan Implementation Support Unit Firm - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Kerala Urban Water Services Improvement Project: Procurement Plan Procurement Plans Jun 2023