Project Domain Phase -III
1 Project highlights:
GoR has received a loan from ADB for implementation of water supply and sewerage systems in selected district towns in the state under Rajasthan Urban Sector Development Program (RUSDP). RUSDP will complement the past and ongoing efforts of the Government of Rajasthan (GOR) to improve water supply and wastewater services to the residents of the state of Rajasthan. It comprises (i) a program, financed by a policy-based loan of US $250 million, 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 of US$250 million (project cost 360 million including state share of US$110million), to invest in water distribution network and sewerage systems in the six project cities in the state.
The Sector Development Program 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.
1.2 Project objectives:
One of the important lessons learnt by the GOR from past project is that the investments have to be coupled with sustainable and vibrant institutions, and effective governance systems, to sustain and maximize their impacts. The institutions in water and wastewater sectors in Rajasthan are weak and the responsibilities are fragmented. Accordingly, the GOR has committed to developing a long-term urban development policy that stimulates investments in urban infrastructure, and, simultaneously, addresses institutional deficiencies, and targets major reforms in urban governance, therefore GoR has proposed to undertake a sector development program (SDP) with the loan assistance of Asian Development Bank (ADB). The proposed SDP will support the GOR’s reform agenda, and will play a demonstrative role for urban sector operations in India.
The impact of the SDP will be sustainable urban development in Rajasthan. The outcome will be improved urban service delivery in Rajasthan. The SDP will have five outputs: Outputs 1 and 2 will be supported by the policy-based loan, while Outputs 3, 4 and 5 will be supported by the project loan. The project will invest in water and wastewater sectors in six project cities, each having a population of more than 100,000 (Pali, Tonk, Hanumangarh, Sri Ganganagar, Jhunjhunu, and Bhilwara). The six project cities were selected based on consideration of the cities' lack of basic services at present and their willingness to undertake reforms and institutional restructuring. The outputs will be:
(i) Output 1: Urban institutions strengthened. This output will include (a) creation of a sustainable corporatized state-level institution for urban development; (b) corporatization of water supply and wastewater operations in the capital city of Jaipur;(c)long-term performance-based management contracts in at least six cities of the state; (d) delegation of water supply and sewerage functions, along with adequate resources and tariff-setting authority, to municipal bodies; and (e) rationalization of urban property tax for municipal bodies.
(ii) Output 2: Urban governance improved. This output will include (a) formulation and approval of a long-term urban development policy; (b) human resource development plan for urban governance, including establishment of a state-level training institute; (c) support for smart cities and economic corridors; (d) water sector reforms such as reduction of NRW,24x7 water supply, individual household connections to residents in slum areas, benchmarking of urban services, development of geographic information system (GIS) and customer databases, and water and wastewater quality monitoring systems; (e) support for total sanitation and solid waste management; (f) support for linkages between sanitation and health; and (g) rationalization of water and sewerage tariffs for O&M cost recovery, and improvement of collection efficiencies.
(iii) Output 3: Water supply system rehabilitated and expanded in six project cities. This output will include (a) distribution network improvement on district metering area basis for NRW reduction; (b) provision of individual property connections to residents, especially the poor and households headed by women; (c) provision of 24-hour water supply; and (d) efficiency improvement in water supply through reduction of NRW and energy losses in electromechanical machinery.
(iv) Output 4: Wastewater system rehabilitated and expanded in six project cities. This output will include (a) rehabilitation and expansion of the sewerage network, including separation of sanitary sewers from drains, and property connections; (b) modernization and expansion of wastewater treatment plants; (c) use of wastewater as a resource including recycling of wastewater, and energy generation through sludge digestion and gasification; and (d) septage management and decentralized wastewater treatment systems in suitable areas.
(v) Output 5: Capacity building and efficient project management. This output will include (a) capacity building of urban institutions and municipal bodies; (b) project management; (c) gender equality and social inclusion action plan; and (d) community awareness and participation plan.
1.3 Implementation Arrangements
The Local Self Government Department (LSGD) is the executing agency and Rajasthan Urban Infrastructure Development Project (RUIDP) is the implementing agency. The LSGD is responsible for overall strategic planning, guidance and management of the SDP, and for ensuring compliance with tranche release conditions and loan covenants. A policy support unit is established in RUIDP to support the government with implementation of the tranche release policy actions under the policy-based loan. RUIDP is responsible for planning, implementation, monitoring and supervision, and coordination of all activities under the SDP.
Formation of committees
As per the Loan Agreement with ADB, LSGD is the Executing Agency for the project. Following committees have been constituted:
(i) Empowered Committee(EC)
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; 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.
(ii) City Level committee
City level committee has been established to provide overall guidance to the respective PIU’s along with ensuring the required monitoring of project implementation activities. District Collector is the chairperson of City Level Committee.
(III) Work finalization Committee:
Work finalisation Committee has been constituted to finalise the scope of work in each town under chairmanship of Pr. Secretary, LSGD and representative from line agencies and city administration.
1.3.2 Formation of Project Management and Implementation units
(i) Project Management Unit
The Project Management Unit has been established at the state level with the Project Director and support key staff in place. The Project Management Unit is responsible for the coordination of all project activities ,including Project design , implementation , budgeting and financial planning , benefit monitoring and evaluation activities , socioeconomic surveys, environmental assessment and protection , institutional and policy development , community participation activities, related training and coordinating the work of all consulting services under the project.
(ii) Project Implementation Unit
Although the project Implementation Units have long since been established, they remains under resourced and operate at various degree of effectiveness in the project cities. Implementation of different infrastructure components has been taken by PIU’s who are supported by PMDSC and responsible for coordinating , supervising , implementing, monitoring and reporting on the project progress to PMU
1.3.3 Formation of Support consultants
(i) Program Management Design & Construction Supervision Consultants
RUIDP has appointed consultants M/s Shah Technical Consultants (P) Ltd (STC), in association with Grontmij A/s, Denmark and DRA Consultants Pvt Ltd for Project Management, Design and Supervision consultants (PMDSC). PMDSC has been mobilised from 22 June, 2015
(ii) Community Awareness and Participation Consultant
Community Awareness and Participation Consultant is to assist PMU and PIU in all aspect of community awareness and participation programmes which will be operational for the project cities. M/s IPE Global Pvt Ltd in association with Cogent Training Research Development consultant Jaipur has been mobilized as Community Awareness and Participation consultant on 1.1.2016
1.4. Project Financial Allocation
RUSDP comprises Project Loan of US $ 250 million & Program loan of US $ 250 million (Project cum Program Loan of US $ 500 million). A grant funding support of US$2million from the Sanitation Financing Partnership Trust Fund (SFPTF) under Bill and Melinda Gate Foundation will be available at the project. State share will be US $ 110 million. Total Program size would be US $ 612 million .
· Project Approval by ADB- 24 October 2014
· Signing of loans and grant agreement: 11 September 2015
· Loan effectiveness: 25 November 2015
· Project completion is scheduled on : 31 December 2019
Project loan (Loan No:3183 IND)
The Project Loan component will be used in water distribution network improvements and sewerage systems in the six project cities namely Sriganganagar, Hanumangarh, Jhunjhunu, Pali, Bhilwara and Tonk. Main works under the project will be related to water supply distribution network improvement; sewerage system including sewerage network and treatment plant; house service connections in water supply and sewerage sectors, recycling of waste water etc
Programme Loan (Loan: 3182–IND) :
Program loan will support policy reforms and consolidate institutional development and governance improvement in the urban sector in the state. Water Management works in Banswara and Mount Abu and sewerage works in Gangasahar area of Bikaner city, Udaipur, Sawai Madhopur, Kota and Jhalawar etc. are propose to be taken up under Program Loan component. Program loan fund is scheduled to be released in two tranches against compliance of agreed policy reforms. First tranche of US$125 million is released on 22 Dec 2015
Grant support :
ADB has provided a grant support of US$2million from the Sanitation Financing Partnership Trust Fund (SFPTF) under Bill and Melinda Gate Foundation. The fund will be used to support for innovative sanitation solutions in non-sewer areas; septage treatment facilities; decentralized wastewater treatment systems and; low-cost environment friendly toilets etc. Under this component, works will be implemented for piloting innovative sanitation solutions in some of the project cities.