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Project Domaim RUIDP-Phase-II

RUIDP Phase-II
Rajasthan Urban Sector Development Investment Programme (RUSDIP)


1. Background :
The six major towns of Rajasthan state were successfully supported by development of infrastructure facilities with the financial assistance of Asian development bank. Need for similar support in remaining towns was equally visualized and accordingly fifteen towns were selected for taking up similar works under a new program named RUSDIP, with the financial assistance from Asian Development Bank (ADB) under Multi Tranche Financing Facility (MFF). The fifteen selected towns are Alwar, Baran, Barmer, Bharatpur, Bundi, Chittorgarh, Churu, Dhaulpur, Jaisalmer, Jhalawar-Jhalarapatan, Karauli, Nagaur, Rajsamand, Sawai Madhopur and Sikar.

2. Project Objective :

Rajasthan Urban Sector Development Investment Program (RUSDIP) vision is to optimize social and economic development in urban Rajasthan. The vision will be achieved through policy reforms to strengthen urban management and support for priority investments in urban infrastructure and services required to meet basic human needs, improve quality of life, and stimulate sustainable economic development. RUSDIP will: (i) redress immediate infrastructure and service deficiencies to meet basic service delivery norms; (ii) act as a medium through which policy reforms are effectively executed; and (iii) provide maximum demonstration effect for replication in other cities of the State.

3. Investment Program Impact and Outcome :

The impact of the Investment Program is improved urban infrastructure and services in district headquarters and tourist towns to support their growth potential and reduce poverty. The expected outcomes of the Investment Program will improve urban environmental and public health, and improve living conditions for 1.6 million people (Census 2001) living in the identified 15 towns in Rajasthan, as well as for increasing number of tourists.

4. Sectors covered under RUSDIP:

The Investment Program, as per the agreed framework, is designed to addresses the urban infrastructure improvement, slum improvement, civic infrastructure, institutional strengthening and financial sustainability by supporting the infrastructure development in following sectors;


a. Water supply
b. Waste water Management
c. Solid Waste Management
d. Urban Transport and Roads
e. Social Infrastructure
f. Support Infrastructure for Cultural Heritage
g. Urban Drainage

5. Project Execution:

The Executing Agency (EA) for the Investment Program is Local Self Government Department (LSGD) under the Urban Governance Department of Government of Rajasthan. The Administrative Reform Department, GoR, has issued order vide no. F6(45) AR/ Gr. 3/99 dated 06.10.2006 to this effect.

6. Financing Facility, Facility Amount & Financing Plan :

The Facility of US$273 million from the ordinary capital resources (OCR) of ADB will be provided to the GOI. Final terms of conditions will be determined in the context of each loan, and be based on prevailing policies of ADB. Financing made available under each loan will be provided under ADB's London Inter-Bank Offered Rate (LIBOR)-based. ADB also provides flexibility in terms of repayment and interest swaps during the financing period. Repayment schedules can also be structured for each loan, in essence to match the needs of each batch of sub-projects with their cost recovery and sustainability profiles. The financing plan agreed between, ADB, GoI & GoR is as under:-

Source

Amount (US$ million)

% Share

Asian Development Bank

273.0

70

GoR and other agencies

117.0

30

Total

390.0

100

GOI will pass down the total loan amounts to the State of Rajasthan, on the same terms as stated in the ADB loans. Period of Utilization of loan amounts shall be available up to December 2016 for the last Periodic Financing Request (PFR) and the Estimated Investment Program Completion period shall be up to December 2016.

7. ADB's Board Approval

The Board of Directors of ADB in its meeting held on 31st Oct-07, discussed and approved the total loan of US$ 273 million under Multi-tranche Financing Facility (MFF) for the Investment Program with a total estimated cost of US$ 390 million over a 7-year period to finance the infrastructure investments and capacity development to support on-going urban institutional, financial and service delivery reforms
Executive Director ADB Board vide letter dated 31.10.2007 addressed to Chief Secretary, GoR, conveyed this approval.Now , total ADB loan component reduced to 248.3 M US $ from the approved 273 M $. The ratio of ADB is to State is same as 70:30.

8. RUSDIP Tranche-I Loan:

The first Tranche of US$75 Million is agreed by ADB with loan component of US$ 60 million. Loan Agreement and Project Agreement for RUSDIP Tranche-I loan(Loan No. 2366-IND), amounting to US$60 million, were signed on 17th Jan-08 at DEA-GOI, New Delhi and made effective by ADB from 28th Feb-08. The ADB loan component has been reduced to 131.3 M US $.
9. RUSDIP Tranche-II loan:

The second tranche of US$ 219 M is agreed by ADB with loan component of US$ 150 Million. Loan agreement and Project agreement for tranche-II loan (Loan no 2506-IND) amounting to Rs. 150 Million US$ were signed on 18-Feb-2009 and made effective by ADB from 20 April 2009..

10. RUSDIP Tranche-III loan under:

The IIIrd tranche of US$ 96M is agreed by ADB with loan component of US$ 63 million. Loan agreement and project agreement for tranche-III loan (loan no. 2725-IND) amounting to Rs 63 million US $ were signed on 17/03/2011 and made effective by ADB from 16 june 2011.

11. Approval by State Cabinet:

The State Cabinet in its meeting held on dated 5th March 2008 approved RUSDIP, in three tranches, with loan financing from ADB.

12. Responsibilities of Repayment & on-lending agreement:
The responsibility of repayment of the loan and own contribution is determined to the concerned line agencies on the basis of the works proposed under the project. On-lending agreement has been signed with the Urban Local Bodies for the acceptance to scheduled repayment of loan and taking up mandatory reforms, necessary for respective works. Determined responsibility for repayment of loan and payment of own contribution is as below:

Name of Sector

Responsibility for repayment of loan and own contribution

Water Supply Rehabilitation & Expansion

State Govt.

·         Urban Environmental Improvements

·         Waste Water Management

·         Solid Waste Management

·         Drainage

·         Fire Fighting Services

·         Historical Site & Environmental Management (including important individual historical monuments)

·         Slum Improvements

·         Equipments for Waste Water, Solid Waste, Fire Fighting Management

State Govt.
Municipal Body
UIT / Municipal Body
Municipal Body
State Govt./Municipal Body

UIT / Municipal Body
Municipal Body

Urban Transportation and Management

·         Roads

·         Bridges

·         Bus/ Truck Terminals and Parking

Major outside roads- State Govt.; inside roads- UIT / Municipal Body
State Govt. / UIT / Municipal Body
State Govt. / UIT / Municipal Body

Tourism - Heritage for Employment

State Govt.

Community Awareness and Participation

State Govt.

Implementation Assistance and Capacity Building

·         Incremental Administration

·         Equipment and Vehicles for Implementation

·         Design and Construction Supervision Services

·         Project Management Services

·         Interest During Construction

 

State Govt.
State Govt.
State Govt.
State Govt.
Corresponding share of State Govt. / UIT / Municipal Body

Infrastructure development in new residential/commercial schemes may also be considered for inclusion.

UIT / Municipal Body


13. Implementation Arrangements :

(a) Empowered Committee:
State-Level Empowered Committee has been formed to provide policy guidance, coordination with different implementing Departments/ULBs and taking decision on matters related to the Investment Program. All powers of the State Government have been delegated to Empowered committee in respect of the matters such as approval of the works to be taken up under the Project; approval of Sectoral and City-wise allocations; approval of the Annual Works Programme; Sanction of expenditure within the Annual Plan ceiling for the Project; award of all contracts and engagement of Consultants; sanction of temporary posts and contractual services for the duration of the project only; take any other decisions in respect of Project-implementation matters so as to ensure timely Project implementation, within the scope of the Project as approved by the State Government.
Administrative Reforms Department (Group-3) vide no F6(45)AR/Gr.-3/99 dated 6.10.2006 issued order for the constitution of State-Level Empowered Committee and further amended this vide order dated 28.10.2006.
The committee shall also monitor and review the progress of implementation of the project; issue necessary directions for ensuring that the Project is implemented according to schedule.
The decisions of the Empowered committee shall be complied with by the Project Management Unit, RUIDP and the implementing Departments as well as all agencies under the project to which they relate. Further examination, scrutiny and approval at various levels by the concerned Departments shall not be necessary.
The committee shall meet at least once quarterly or more frequently if necessary. The tenure of the committee is uptill completion of the project.
The Administrative Department for the above committee will be Local Self Government Department (as modified vide Administrative Reform Department order dated 28.10.2006).
(b) Work Finalization Committee:
Methodology for identification of works and proposal of constitution of Works Finalization Committee was approved by Empowered Committee in its 1st meeting of RUSDIP held on 07.11.2006. Further order has been issued by Administrative Reform Department no. F6 (45)AR/Gr.-3/99(i) dated 10.04.2007. The Works Finalization Committee is responsible to finalize the list of works, identified during detailed feasibility study, considering the priority of sectors and works. Further, approval of Hon'ble Minister, Urban Development & LSG is required on file before taking up of any work under RUIDP Phase-II.

(c) City Level Committees:
City Level Committee under the chairmanship of District Collector of each town has been constituted for implementation of RUSDIP (RUIDP Phase- II). Order for the constitution of CLC was issued by Administrative Reforms Department (Group-3) vide no F6(45)AR/Gr.-3/99 dated 2.1.2007. Later on Hon'ble Chief Minister instructed to involve concerned MLA's & MP's in the city level committees. In compliance RUIDP requested Parliamentary Affairs Department, GoR for inclusion of Hon'ble MLAs & MPs as member in the City Level Committee of the program towns.
The CLC is being represented by the district/region level officers/functionaries of concerned departments, chairpersons & Officers of ULBs, NGOs and CBOs of town to discharge the following duties;

·         to provide overall subproject guidance

·         to develop an effective mechanism for coordinating the local Project activities among different line agencies;

·         to assist in planning and programming of Project activities;

·         serve as a coordinating agency among different line agencies;

·         serve as a mechanism for ensuring that the public is represented in the Project activities;

·         monitor the Project progress and activities;

·         to sort out issues & remove hindrances, if any;
CLC will also act as Grievance Re-Dressal Committee for the implementation of resettlement plan by monitoring grievances re-dressal, determining merit of each grievance and taking action for resolve of each grievance with in one month of receipt.
(d) Investment Program Management Unit (IPMU):
The IPMU headed by a Project Director is assisted by competent, qualified and experienced officers from various Engineering (PWD, PHED & ULBs), Finance and other departments as agreed by the Finance Department.
The IPMU is responsible for Project execution, implementation, management and supervision of sub-projects. IPMU is also responsible for; submission of matters for decision of Empowered Committee & ensuring compliance; submission of periodic reports to the Asian Development Bank (ADB); obtaining necessary approvals from the ADB; issue of bid documents; evaluation of bids received; supervision over and release of funds to IPIUs; submission of reimbursement claims; ensuring compliance of the loan covenants and supervision over the IPIUs. IPMU functions under the supervision and control of LSGD as Administrative Department.
(e) Investment Program Management Consultant (IPMC):
IPMC is based at Jaipur and the scope of services includes; (i) to prepare detailed feasibility of remaining twelve towns; (ii) to assist Investment Program Management Unit (IPMU) and Investment Program Implementation Units (IPIUs) in project management activities in checking & review of engineering designs and procurement documents and assist in Contract Administration; (iii) issue guidelines for preparation of sub-projects and carrying out appraisal of subprojects (iv) policy framing and planning; (v) training for capacity building and (vi) to oversee the work of the three DSC's and provide necessary guidance to them in implementation of the project.
(f) Investment Program Implementation Units (IPIU):
Fifteen Investment Program Implementation Units (IPIUs) are established and a full-time representative of the IPIUs is appointed in each program towns to carry out daily implementation activities required under the Investment Program. The IPMU and IPIUs will be assisted in preparation of design documents, management of tendering for award of work contracts, construction supervision and overall management of the Investment Program by the Design and Supervision Consultants (DSCs) and IPMC as well.
IPIU's are headed by Executive Engineers in the towns.
(g) Design & Construction Supervision Consultants: The DSCs headquarters are located in three regions to assist the IPMU and IPIUs in preparing design documents, management of tendering for award of work contracts, construction supervision and overall management of the Investment Program. The 3 DSCs have following offices; (i) Headquarter office at Jaipur and sub-head quarters at Alwar, Bharatpur, Dholpur, Karauli and Sawai Madhopur; (ii) Headquarter office at Jodhpurr and sub-head quarters at Barmer, Churu, Jaisalmer, Nagaur and Sikar; and (iii) Headquarter office at Kota and sub-head quarters at Baran, Bundi, Chittaurgarh, Jhalawar-Jhalarapatan and Rajsamand.
(h) The scope of consulting services for the DSCs include (i) carrying out all detail surveys, studies and site investigations; (ii) update feasibility study findings wherever available; (iii) prepare conceptual, preliminary and detailed designs; (iv) prepare detailed technical specifications, bill of quantities, drawings and bid documents (v) to assist IPIUs in Contract supervision & administration of sub-projects etc.


14. Institutional and financial improvement action plan:
The ADB, during the signing of Framework Financing Agreement for the facility, has stipulated for the implementation of certain institutional and sectoral reforms which are to made applicable in all program towns in the given timeframe. The major reforms, as identified in different sectors/institutions, are as follows;


a. Water Supply
Water tariff revision: Tariff implementation in all the 15 ULBs shall follow the principle of the mandatory reforms under the JNNURM. By December 2014, the water tariff level should be sufficient to cover full operation and maintenance of the water operation for each ULB.
Water supply coverage: By end of year 4 of each tranche, water supply service coverage of 90% should be achieved through the water supply investment under the Investment Program.
Water tariff collection: By the end year 3 of each tranche, water tariff collection performance should be kept at no less than 85%.
b. Sewerage
Sewerage tariff revision: The current sewerage tariff level as prescribed at 20% of water bill without a treatment plant and 33% of water bill with a treatment plan should be maintained provided that the full O&M cost is recovered for sewerage operation for each of the Investment Program ULBs.
Sewerage asset transfer: If the PHED is to transfer sewerage assets to ULBs, an asset transfer plan including skills/human resource transfer, revenue sharing, and associated debt/equity transfer should be prepared within 1 year of commencement of the Investment Program implementation.
Sewerage connection: As part of and along with sewerage services, connection to sewer should be made mandatory in each of the Investment Program ULBs taking up sewerage investment.
c. Solid waste management:
SWM charges should be introduced to cover no less than 50% of operation and maintenance cost of SWM operation for each ULB within not later than one year of related subproject completion.
d. Infrastructure Development Tax:
Infrastructure Development tax shall be so maintained by the state so as to augment the financial stability of the ULBs.
e. Institutional Reform and Capacity Development:
Financial management: Implementation of double entry accrual accounting systems in each ULB within 4 years of the commencement of the Investment Program implementation.
Capacity Development Plan (CDP) Implementation: The IMPU, with assistance from the loan consultants, will prepare a comprehensive CDP, for the Investment Program ULBs and the State line agencies based on consultations with all the stakeholders by December 2008. This CDP should be acceptable to the respective City level committees, the Empowered committee, and its implementation be completed by the IPMU, through IPIUs, by 2010.

15. Safeguards:
The RUSDIP project has provisioned for mandatory compliance of the safeguard requirements as stipulated by Asian Development Bank, Govt. Of India and Govt. Of Rajasthan. For all sub projects in each program town, Environmental Management Plan, Social & Resettlement Plan and Indigenous People Development Plans have been prepared with the help of Project Consultants and all plans are duly approved by ADB.

16. Procurement:
All goods and services to be financed under the Facility will be procured in accordance with ADB's Procurement Guidelines (April 2006, as amended from time to time).

17. Advance Contracting and Retroactive Financing:
Under each loan of the Facility, advance contracting of civil works and equipment and materials, and recruitment of consulting services may be requested subject to these being eligible in accordance with agreed procedures and guidelines of ADB.
Except as otherwise agreed with ADB, the expenditures incurred for civil works, equipment and materials and consulting service eligible for advance contracting will be eligible for retroactive financing of up to 20% of the proposed amount for the loans under the Facility for eligible expenditures, including consultants, goods, and civil works, incurred prior to effectiveness of each of the loan, but no earlier than 12 months before the signing of the respective loan agreement for the loan under the Facility. India and the State have been advised that ADB's approval of advance contracting and retroactive financing does not constitute a commitment to finance relevant projects under this Facility.GoR has approved retroactive financing .

18. City Level Investment Plans:
The City Level Investment Plans (CLIP) of Baran, Barmer, Bharatpur, Bundi, Chittorgarh, Churu, Dholpur, Karauli, Nagaur, Rajsamand, Sawai Madhopur and Sikar town are prepared by Consultants (IPMC) in co-ordination with the DSCs & city in-charges after conducting visits and meetings with different stakeholders. The CLIPs are endorsed by the City Level Committees of respective town.
The infrastructure plan of the town, prepared by Consultants, mainly comments the urban infrastructure improvement, slum improvement, civic infrastructure, institutional strengthening and financial sustainability with background information, data analysis, and financial model and focus group discussions supporting the infrastructure development. Team of consultants has also studied the Initial Environmental Examinations (IEEs), providing the environmental assessment and mitigation plan for identified sub-projects, Resettlement Plan, providing details on the land acquisition and involuntary resettlement process to provide for sub-project implementation. City Level Committees approved the CLIPs for these towns.