QUARTERLY PROGRESS REPORT (QPR 17) - projectuday.nic.inprojectuday.nic.in/SiteDoc/QRPDec09.pdf · Environmental Improvement Project (UWSEIP) in Madhya Pradesh, between the Government

Government of Madhya Pradesh

PROJECT UDAY

(URBAN WATER SUPPLY & ENVIRONMENTAL IMPROVEMENT IN MADHYA PRADESH)

ADB Original Loan: No. 2046-IND & ADB Additional Loan: No. 2456-IND

Project Management Unit

QQUUAARRTTEERRLLYY PPRROOGGRREESSSS RREEPPOORRTT ((QQPPRR 1177))

DDEECCEEMMBBEERR 22000099

JANUARY 2010

Government of Madhya Pradesh

PROJECT UDAY

(URBAN WATER SUPPLY & ENVIRONMENTAL IMPROVEMENT IN MADHYA PRADESH)

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Quarterly Progress Report (QPR 17) December 2009

PROJECT UDAY (Urban Water Supply and Environmental Improvement in Madhya Pradesh) Quarterly Progress Report (QPR 17) December 2009 Urban Administration & Development Department (UADD)

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Quarterly Progress Report (QPR 17) December 2009

Contents Executive Summary

1. PROJECT FINANCE ALLOCATION & DISBURSEMENT ......................................................................1 1.1 BRIEF PROJECT DESCRIPTION ..........................................................................................................................1 1.2 IMPLEMENTATION SCHEDULE ............................................................................................................................1 1.3 PROJECT INVESTMENT AND FINANCING PLAN ..................................................................................................2

1.3.1 Status of Counterpart & Co-financing of Funds............................................................................2 1.3.2 Targeted Disbursement Schedule and Monitoring.......................................................................3

1.4 DISBURSEMENTS AND FINANCIAL STATEMENTS ...............................................................................................3 1.5 PROJECT IMPLEMENTATION PROGRESS AND COSTS .......................................................................................3

1.5.1 Current Scope and Project Investment Status .............................................................................3 1.5.2 Project Implementation Progress Status .......................................................................................4

2. IMPLEMENTATION PROGRESS: CRITICAL CONTRACTS .................................................................4 2.1 URBAN WATER SUPPLY.....................................................................................................................................4

2.1.1 Bhopal Water Supply........................................................................................................................4 2.1.2 Gwalior Water Supply.......................................................................................................................7 2.1.3 Jabalpur Water Supply .....................................................................................................................8 2.1.4 Indore Water Supply .......................................................................................................................10

2.2 WASTEWATER AND SANITATION......................................................................................................................10 2.2.1 Bhopal Wastewater.........................................................................................................................10 2.2.2 Gwalior Wastewater........................................................................................................................13 2.2.3 Jabalpur Wastewater......................................................................................................................13 2.2.4 Indore Wastewater..........................................................................................................................15

2.3 SOLID WASTE MANAGEMENT ..........................................................................................................................16 2.3.1 Bhopal Solid Waste Management ................................................................................................16 2.3.2 Jabalpur Solid Waste Management .............................................................................................16 2.3.3 Indore Solid Waste Management .................................................................................................17

2.4 STORM WATER DRAINAGE ...............................................................................................................................17 3. COMMUNITY DEVELOPMENT & URBAN GOVERNANCE.................................................................25

3.1 COMMUNITY AND SOCIAL DEVELOPMENT .......................................................................................................25 3.1.1 Scope of Area Improvement Fund (AIF) Works .........................................................................25 3.1.2 Scope of Community Improvement Fund (CIF) Activities .........................................................26 3.1.3 Collaboration with UN-Habitat/Water Aid & Partner NGO’s .....................................................26 3.1.4 Preparation of the Detailed Design Reports ...............................................................................26 3.1.5 Gender Mainstreaming and Gender Action Plan .......................................................................27

3.2 ENVIRONMENTAL .............................................................................................................................................27 3.2.1 Category of Environmental Sensitivity .........................................................................................27

3.3 URBAN DEVELOPMENT AND LAND POLICY......................................................................................................27 3.3.1 Unified Municipal Law ....................................................................................................................27


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3.3.2 Urban Sanitation Mission ...............................................................................................................27 3.4 PROJECT PERFORMANCE MANAGEMENT SYSTEM (PPMS) REPORT............................................................27

4. COMPLIANCE WITH ADB MAJOR LOAN COVENANTS ....................................................................28 4.1 SECTOR COVENANTS ........................................................................................................................................28 4.2 ENVIRONMENTAL LOAN COVENANTS ..............................................................................................................29 4.3 SOCIAL LOAN COVENANTS ..............................................................................................................................30 4.4 FINANCIAL LOAN COVENANTS .........................................................................................................................31 4.5 OTHER RELATED LOAN COVENANTS ..............................................................................................................33


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List of Tables:

Table 1.1 Overall Summary of Proposed Investments Table 1.2 Revised Project Financing Plan Table 1.3 Project Total Costs Reconciliation Chart (Rs. To US$) Table 1.4 Targeted vs. Actual Expenditure (2046 & 2456 Contracts) Table 1.5 Statement of PMU Withdrawal Application vs. ADB Disbursement Table 1.6 Project Progress Overall Summary Table 1.7 Project Implementation Weighted Progress Status Table 1.8 Physical Progress Summary according to Project Contracts (2046 & 2456) Table 2.1 City-wise Project Progress Implementation Works Table 2.2 Water Supply Progress Status Table 2.3 Wastewater & Sanitation Progress Status Table 2.4 Solid waste Management Progress Status Table 2.5 Stormwater Drainage Progress Status

List of Figures:

Figure 1.1 Revised Projected Total Project Expenditure vs. Actual to Date

List of Appendices:

Appendix A-1: Implementation Schedule Progress Status: Bhopal Sheet 1 of 17 Gwalior Sheet 5 of 17 Jabalpur Sheet 9 of 17 Indore Sheet 13 of 17 Appendix A-2: AIF/CIF Implementation Schedule: Bhopal Sheet 1 of 13 Gwalior Sheet 4 of 13 Jabalpur Sheet 7 of 13 Indore Sheet 11 of 13 Appendix A-3: PIU Fund Utilization Statements Appendix B: EMP Environmental Compliance Status Bhopal Sheet 1 of 12 Gwalior Sheet 4 of 12 Jabalpur Sheet 7 of 12 Indore Sheet 10 of 12 Appendix C: Financial Statements:

Table C-1: Sources and Applications of Funds Table C-2: 2046-IND: PMU Withdrawals vs. ADB Disbursement Table C-3: 2456-IND: PMU Withdrawals vs. ADB Disbursement

Appendix D: PMC Administration and Service Status


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Abbreviations and Acronyms: ADB Asian Development Bank ADP Annual Development Plan AIF Area Improvement Fund BMC Bhopal Municipal Corporation BME Benefit Monitoring and Evaluation BOO Build Own Operate BPL Bhopal BPT Break Pressure Tank BOT Build Operate Transfer BOOT Build Own Operate Transfer CBO Community Based Organization CEO Chief Executive Officer CIF Community Initiative Fund CLSC City Level Steering Committee DFID Department for International Development DIF Directorate of Institutional Finance DSC Design and Supervision Consultant DUAD EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return FAP Financial Action Plan FGD Focus Group Discussion FIAP Financial Improvement Action Plan FIRR Financial Internal Rate of Return GIS Geographical Information System GMC Gwalior Municipal Corporation GoI Government of India GoMP Government of Madhya Pradesh GWL Gwalior ICB International Competitive Bidding IMC Indore Municipal Corporation IND Indore IR Item Rate IS International Shopping JBP Jabalpur JDA Jabalpur Development Authority JMC Jabalpur Municipal Corporation LCB Local Competitive Bidding MC Municipal Corporation M&E Mechanical and Electrical MIC Mayor-in-Council MIS Management Information System MLD Million litres per day MP Madhya Pradesh NGO Non Government Organization O&M Operation and Maintenance PAM Project Administration Memorandum PAP Project Affected People PHED Public Health Engineering Department PIU Project Implementation Unit PMC Project Management Consultant PMU Project Management Unit PPP Public/Private Partnership PPPP Public/Private People Partnership

PPTA Project Preparatory Technical Assistance PRC Public Relations Consultant PSP Private Sector Participation PWD Public Works Department QA/QC Quality Assurance/ Quality Control SLC State Level Committee SPS Sewerage Pumping Station STP Sewerage Treatment Plant SWM Solid Waste Management TA Technical Assistance ToR Terms of Reference TK Turnkey TCPO Town & Country Planning Office ULB Urban Local Body VFJ Vehicle Factory Jabalpur VGF Viability Gap Funding WAC Water for Asian Cities WACC Weighted Average Cost of Capital WPS Water Pumping Station WRD Water Resources Department (GoMP) WSOP Water Supply Optimization Programme WTP Water Treatment Plant


Executive Summary The Loan Agreement for the original contract 2046-IND, was signed on the 9th March 2005 and made effective on the 20th May 2005. The Urban Water Supply and Environmental Improvement Project (UWSEIP) in Madhya Pradesh effectively started from 21st June 2005 and was scheduled to be completed by the 31st March 2009. A second phase to the Project, for the supplementary loan provisions, under 2456-IND, for inclusion of 31 contract packages attaining the full extent of the original scope for completion by March 2011, has been approved by the GoMP and ADB and is presently under implementation. The overall budget allocation of awarded contracts for Part A and B, under contracts 2046-IND and 2456-IND, for the physical works infrastructural development component of the programme, inclusive of the Community Development and Slum Improvement components, totals Rs. 101207.06 lakh, given in Table 1.1, (to an exchange rate of Rs. = US$ of Rs.49.67 under the original contract and Rs.39.00 under the additional contract). This compares to the current total investment amount of Rs.129,379..51 lakh, equating to an overall decrease of 21.78%. Award of contract has been issued for 91 contract packages (including 18 PMU Central Procurement Packages), for a total amount of Rs. 101207.06 lakh, which is 74.23% of the overall programme. Contracts have been completed for 26 packages (including 18 PMU Central Procurement Packages), comprising 7 packages in water supply, 2 packages in wastewater and sanitation and 17 packages in solid waste management, for a total contract amount of Rs. 4,961.45 lakh, which is 3.64% of the overall programme. Refer to Table 1.6 for the overall Project progress summary. Project Costs: Total Investment: PAM Budget Allocation

Original Contract: 2046: US$ 275m

(Rs.136,592 lakh) at exchange rate Rs.49.67 to US$

Additional Contract: 2456: US$ 108m


Cost of Awarded Packages to date: (Inclusive of apportioned support costs, contingencies, and taxes)

Bhopal Gwalior Jabalpur Indore

Rs. 21,238.69 lakh (- 19.37% decrease) Rs. 18,006.80 lakh (- 42.58% decrease) Rs. 36,342.25 lakh (9.80% increase) Rs. 71,617.81 lakh (- 18.53 decrease) Rs. 147,205.55 lakh (equivalent: average – 17.63% decrease)

Urban Infrastructural Improvement Project Progress: Total Contract Packages 124 Nos. Rs. 133,791.37 lakh (Includes 4 packages for the AIF/CIF component of the project). Contracts Completed (including 18 PMU Central Procurement Packages)

26 Nos. Rs. 4,961.45 lakh 3.64%

Contracts Awarded 91 Nos. Rs. 101,207.06 lakh 74.23% Invitation for Bids (IFB) Design Report & Bid Docs 100 Nos. Rs. 113,696.06 lakh 83.39% Concept Report

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QRP Rpt Dec 2009.doc

CHAPTER 1

Project Finance Allocation & Disbursement


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1. PROJECT FINANCE ALLOCATION & DISBURSEMENT The Loan Agreement, under reference number 2046-IND, for the Urban Water Supply and Environmental Improvement Project (UWSEIP) in Madhya Pradesh, between the Government of Madhya Pradesh, India and the Asian Development Bank (ADB), was signed on the 9th March 2005 and made effective on the 20th May 2005. The overall Project is currently scheduled to be completed by the 31st March, 2011. A second phase to the Project, under supplementary loan provisions (under ADB loan 2456-IND) for inclusion of 31 contract packages attaining the full extent of the original scope for completion by March 2011, has been approved by the GoMP and ADB. This report details progress completed during the course of the Seventeenth quarterly progress reported period to 31st December 2009. 1.1 Brief Project Description The Urban Water Supply and Environmental Improvement Project (UWSEIP), in the state of Madhya Pradesh, is an integrated urban infrastructure development project inclusive of institutional strengthening requirements. The Project is designed to establish and upgrade essential urban infrastructure and services particularly in the areas of potable water supplies, waste water management, drainage and solid waste. The project is being implemented in the four major cities of Bhopal, Gwalior, Jabalpur and Indore. The primary objective of UWSEIP is to promote sustainable growth and poverty reduction in the four selected cities of Madhya Pradesh. The Project is financing infrastructural development, in the form of construction and rehabilitation, related to water supply, wastewater, solid waste management and stormwater drainage, inclusive of capacity building of existing Municipal Corporations. Social and community development is forming an important component of the Project, involving community mobilization, under well organized proactive public awareness campaigns. 1.2 Implementation Schedule The original duration of the Project was to be completed over a four year period, from the date of loan effectiveness, for a scheduled completion by 31st March 2009. However, the full scope of the project will now be completed for an extended Phase II period to March 2011, inclusive of 31 additional contract packages. Number of on-going contracts are 71 (Excluding two terminated contracts). In nut shell we can say that 91 contracts (including 18 PMU Central Procurement Packages), are awarded and under implementation, 17 contracts are deferred, 2 contracts are terminated and 13 (including JBP/WS/12) contracts are in the process of package preparation and tendering. Contracts have been physically completed for 7 contracts, comprising 7 nos. water supply packages; 1 nos. wastewater/sanitation packages and 18 PMU central procurement packages for a total investment amount of Rs. 4961.45 Lakh, equivalent to 3.64% of the overall programme. The 13 contracts, which are under process of package preparing and tendering are; GWL/WS/03, GWL/WS/09, GWL/DR/01, GWL/DR/02, GWL/DR/03, JBP/WS/12, JBP/WS/13, JBP/DR/02, IND/WS/14, IND/WS/18a, IND/WS/18b, IND/WS/19a, and IND/WS/21. Refer to Table DU-1 for deferred and the packages that removed from Project UDAY. Out of 124 packages 17 packages i.e. BPL/WS/14, BPL/WW, BPL/SWM/04, BPL/SWM/05, GWL/WS/10, GWL/WW/01, GWL/WW/02, GWL/WW/03, GWL/WW/05, GWL/WW/06, GWL/SWM, JBP/WW, JBP/WW/01, JBP/DR/01, IND/WS/19b, IND/WW/06 and IND/SWM/04 are either deferred or removed from Project UDAY. The two terminated packages are GWL/WS/08 and JBP/WS/12.



Refer to Appendix A-1, which gives comprehensive details of the implementation of the main infrastructure development component of the programme, along with the status of contract packages inclusive of the respective physical and financial progress, for all components of the project cities. Refer to Appendix A-2, which gives the implementation schedule for the AIF/CIF works, inclusive of 10 selected slums per city for main infrastructure development and 10 selected slums per city for principally reconstruction/rehabilitation of community toilets. 1.3 Project Investment and Financing Plan The overall budget allocation for Part A and B, under contracts 2046-IND and 2456-IND, for the physical works infrastructural development component of the programme, inclusive of the Community Development and Slum Improvement components, totals Rs.178,711 lakh, (to an exchange rate of INR to US$ of Rs.49.67 under the original contract and Rs.39.00 under the additional contract). This compares to the current total investment amount of Rs.147,205.55 lakh, equating to an overall decrease of 16.43%. The comparative difference of costs to that of the PAM allocated amount for the four cities, as given in Table 1.1 and the Implementation Tables in Appendix A-1, are as follows: Total Investment: PAM Budget Allocation

Original Contract: 2046: US$ 275m


Additional Contract: 2456: US$ 108m


Cost of Awarded Packages to date: (Inclusive of apportioned support costs, contingencies, and taxes)

Bhopal Gwalior Jabalpur Indore

Rs. 21,238.69 lakh (- 19.37% decrease) Rs. 18,006.80 lakh (- 42.58% decrease) Rs. 36,342.25 lakh ( 9.80% increase) Rs. 71,617.81 lakh (- 18.53 decrease) Rs. 147,205.55 lakh (equivalent: average – 16.43% decrease)

1.3.1 Status of Counterpart & Co-financing of Funds In accordance with the Financing Plan of the overall Project investment as given in Table 1.2, each Municipal Corporation has been advised to arrange their contribution whereby Asian Development Bank is to finance US$ 181 million under Loan No. 2046-IND and US$ 71 million under Loan No. 2456-IND (overall 65.86%). The balance, 34.14% amount, is to be co-financed by the Government of Madhya Pradesh for US$ 66.9 million (overall 19.30%); the Project Cities for US$ 63.6 million (overall 14.70%); and UN Habitat for US$ 0.5 million (overall 0.14%). The contribution made by the Government of Madhya Pradesh comprises front-end fees, interest during construction and commitment charges, inclusive of taxes and duties, 20% grant for Indore water supply, part consultancy costs and PMU establishment. A summary of the overall Project costs, inclusive of the original and additional contracts 2046-IND and 2456-IND respectively, is given in Table 1.3, which gives a reconciliation of cost allocations according to the sector components and the implementation elements of Part A: Urban Infrastructure; Part B: Public Participation and Awareness; and Part C: Implementation Assistance of PMU and PIU’s and consultancy services support; inclusive of procurement and civil works, price and physical contingences and associated taxes.



1.3.2 Targeted Disbursement Schedule and Monitoring The present status of investment for the various components of each of the Project Cities, in comparison to that of the budget allocation, according to the PAM documents for i) the original contract 2046-IND, dated 24th October 2005; and ii) the additional contract 2456-IND, is given in Table 1.4, giving the monthly targeted versus actual disbursement of funds. Refer to Figure 1.1, which shows the projected total project expenditure versus the actual expended to date, presented in terms of the combined cumulative accounting of the following: • Procurement and civil works, inclusive of taxes, price and physical contingences; and • PMU, PIU’s and consultancy services support, inclusive of associated taxes. A cumulative total expenditure, up to the end of the reported period to 31st December 2009, amounts to Rs. 77,486.00 lakh, which equates to 43.36% of the overall approved fund of Rs. 1,78,711.00 lakh (US$ 383 million), giving an effective shortfall of 23.80%, according to the revised targeted expenditure of Rs. 1,01,708.00 lakhs. 1.4 Disbursements and Financial Statements The cumulative record of all previous ADB disbursements against UWSEIP claims, inclusive of this Seventeenth reported quarter of October to December 2009, is according to the financial statement given in Table 1.5, which gives a total of US$ equivalent of disbursements to date of US$ 109.69m under the original ADB Loan 2046-IND; and US$ 8.44m under retroactive financing under the supplementary ADB Loan 2456-IND. As per ADB guidelines, a financial statement of accounts is given in Appendix-C, for Project UDAY separately for the period ending 31st December 2009, for the following: • Sources and applications of funds, for a closing balance of Rs. 56.59 lakhs, refer to Table C-1; and • Withdrawal of loan proceeds, under original ADB Loan 2046-IND, totals Rs. 8556051538 and

US$802,250 , amounting to US$186.328 m equivalent, refer to Table C-2; and • Withdrawal of loan proceeds, under supplementary ADB Loan 2456-IND, totals Rs. 29460204,

amounting to US$5.975 m equivalent, refer to Table C-3. 1.5 Project Implementation Progress and Costs 1.5.1 Current Scope and Project Investment Status Refer to Table 1.6, which gives an overall summary of the progress status of the project to date, for Part A, Part B and Part C of the programme, for the urban infrastructural improvement and the community development respective elements in terms of the sector components. This includes a total of 124 contract packages comprising 4 slum upgrading packages; 75 water supply packages; 17 wastewater/sanitation packages; 23 solid waste management packages; and 5 drainage packages for a total investment amount of Rs.133,791.37 Lakh, equivalent to 5.41% above that of the PAM allocated budget amount. Detailed Design Reports and invitation for bids have been completed for all the 100 and 99 contract packages respectively (excluding the 4 packages for the AIF/CIF Community Development initiatives). Award of contract has been issued for 91 contract packages; comprising 64 water supply packages, 8 wastewater/sanitation packages and 19 solid waste management packages, for a total investment amount of Rs. 101,207.06 Lakh, equivalent to 74.23% of the overall programme.



1.5.2 Project Implementation Progress Status Refer to Table 1.7, which shows an equivalent weighted average overall project progress status of 73.13%, as compared to an effective elapsed time of 78.36%, in terms of contract period from 21st June 2004 to date and a revised completion date to March 2011. The project implementation progress to date is given according to a weighting, 20% for pre-implementation stage and 80% for the implementation phase and associated activities. Progress has been assessed in terms of overall performance and an appraisal of key activities for the stated stages, as monitored against a system of assigned weighted averages. Refer to Table 1.8, which gives the overall physical progress of the civil works contracts for the original ADB contract 2046-IND at 71.21% and the additional ADB contract 2456-IND at 55.10%. Project cities physical progress during 17th Quarter is 10.07%.



CHAPTER 2

Implementation Progress: Critical Contracts



2. IMPLEMENTATION PROGRESS: CRITICAL CONTRACTS Refer to Table 2.1 for the progress status of the overall infrastructural development programme to date, which gives a city-wise distribution of cost for 124 contract packages (inclusive of the 4 packages under AIF/CIF component), comprising Bhopal with 27 contract packages at an investment amount of Rs. 15,310.27 lakh; Gwalior with 30 contract packages at an investment amount of Rs. 22,752.20 lakh; Jabalpur with 25 contract packages at an investment amount of Rs. 30,490.25 lakh; and Indore with 38 contract packages at an investment amount of Rs. 65,304.48 lakh. Contracts have been completed for 5 civil work contracts and 3 procurement contracts, comprising of 7 nos. water supply packages and 1 no. waste water /sanitation package and 18 PMU central procurement packages for a total investment amount of Rs. 4,961.45 lakh, equivalent to 3.64% of the overall programme. 2.1 Urban Water Supply Refer to Table 2.2 for the city-wise progress of the water supply component of the project. The total investment for this component amounts to Rs. 99,770.43 lakhs and comprises 75 contract packages. The overall investment of this component, according to current status of cost packages, is 16% above the PAM allocated amount. To date, the design of 70 contract packages have been completed with invitation for bids given for 69 contracts for an investment of Rs. 91,701.43 lakh, which is 91.91% of the overall water supply programme. Contracts have been awarded for 64 contract packages for an investment of Rs.81,876.43 lakh, which is 82.06% of the overall water supply programme. One contract is currently under a re-tendering process due to termination of the previously awarded turnkey contracts for the overhead service reservoirs: JBP/WS/12. Contracts have been physically completed for 4 civil works under contract package IND/WS/03 for the rehabilitation of Yashwant Sagar WTP for an investment of Rs. 111.12 lakh and IND/WS/16 for investment of Rs. 891.00 lakh, one civil work contract package JBP/WS/04 for and investment of 244.66 lakh and totaling to Rs. 1455.77 lakh for 3 contracts, 1 civil work contract package GWL/WS/02 for an investment of Rs. 864.41 Lakh. 3 Procurement contact packages, for the supply and installation of bulk meters, have been completed for BPL/WS/01, GWL/WS/01 and JBP/WS/08 for an investment of Rs.262.71 lakh. 2.1.1 Bhopal Water Supply The overall investment for the Bhopal water supply component includes 12 contract packages comprising 9 civil works contract packages and 3 International Shopping procurement packages for a total amount of Rs. 6,368.50 lakh, equating to 27% below the allocated amount. To date, 11 contracts have been awarded and one contract (BPL/WS/01) completed. Refer to Appendix A-1 for details of the contracts under implementation. Of the 11 awarded civil works contracts, the following 3 contracts are now considered at risk suffering various degrees of critical delays for which the stated mitigation measures are now being closely monitored by the PIU with the respective contractors. Package no. BPL/WS/05

Leak Detection and Rectification in Pipelines of 300mm diameters and above in Bhopal. Supply of 148 valves, supply of 8 MT of 80 to 750 mm dia CI pipe & specials. Repair of 103 valves. DI pipe of 300mm- 960m.

Name of Contractor: M/s Jamshedpur Utilities & Services Co. Ltd Cost of Contract: Rs. 219.73 lakh



Date of Award: 13.08.2007 Time of completion: 12 Months (12.08.2008) Extension of time: Contract is provisionally extended by 10 months up to 31.01.10. Financial Progress: 53% Physical Progress: 59% Elapsed Time: 28.6 Months (238 %)

Current Progress Status:

32/57 SV repaired; 77/92 SV replaced 24/41 AV repaired; 23/38 AV replaced Leak proof 5/100 km. completed. Laying of CI pipe: 146/230m. Hydrotesting & Commissioning of 300mm dia pipe is completed for 700/960m lengths.

Status of delay: Projected delay of contract is about 21 months to 15.04.10, subject to mitigation compliance.

Reasons for delay: • Delayed procurement of specials • Delayed deployment of leak detection machines. • Lack of deployment of skilled and experienced manpower

Description Action By Whom

Current Status of Mitigations

Mitigation Measures:

(i) Deployed additional teams for leak detection and repairs.

(ii) Shutdowns in Kolar pipe line to be arranged by PM, PIU.

Contractor One team operating

Revise Work Plan Contractor Original WP superseded

Remarks:

Deployment of additional teams for leak detection and repairs required. Resolution of dispute regarding leak detection and repairs pending. Shutdowns in Kolar pumping main could not be available from line agency.

Package no. BPL/WS/09

Design & Construction of 4 nos. RCC elevated service reservoirs at Nehru Nagar (2.25ML-18M staging), Kotra (2.25ML-18M staging), Ambedkar Nagar (2.25ML-18M staging) and Vijay Nagar (1.00ML-18M staging).

Name of Contractor: M/s Brij Engineering works, Kanpur Cost of Contract: Rs. 350.70 lakh Date of Award: 03.04.2007 Time of completion: 15 Months (02.07.2008) Extension of time: Contract is provisionally extended to 19.02.2010. Financial Progress: 67% Physical Progress: 76% Elapsed Time: 32.9 months (220%) Current Progress Status:

Kotra - Civil work 94% completed. Nehru Nagar- Concreting of top dome & staircase completed. Civil work 92% completed. Vijay Nagar - Concreting of Top dome completed. Civil work 84% completed. Ambedkar Nagar- Column upto bottom ring beam completed. Civil work 33% completed. No significant work during the month.

Status of delay: The projected delay is about 22 months to 20.02.2010, subject to mitigation compliance.



Reasons for delay: • Delayed in handing over of clear site for Ambedkar Nagar Tank. (Possession of site on 30.04.08: 12 months period).

• Delay in getting permission from education department for Nehru Nagar site.

Description Action By

Whom Current Status of

Mitigations Mitigation Measures:

Efficient procurement of steel, construction materials, to work simultaneously on all tanks under progress

Contractor Working on one tank at a time.


Remarks: Efficient procurement of materials required. Need to deploy at least one site

engineer on each site. Contractor should take up work on site of Ambedkar Nagar reservoir in more than one shift.

Package no. BPL/WS/10

Design & Construction of 2 nos. RCC elevated service reservoirs at Ibrahimpura (3.00ML-15M staging) & Koh-e-fiza (1.50ML-12M staging) and 1 no. ground service reservoir at Shahpura (2.00ML) in Bhopal.

Name of Contractor: M/s Gleg Engineers Pvt. Ltd., Mumbai Cost of Contract: Rs. 242.79 lakh Date of Award: 03.04.2007 Time of completion: 15 Months (02.07.2008) Extension of time : Contract is provisionally extended up to 31.01.2010. Financial Progress: 43% Physical Progress: 34% Elapsed Time: 32.9 months (220%)

Current Progress Status:

Koh-e-fiza - GLR in place of OHSR to be constructed due to NOC for OHSR not issued by Airport authority.

Shahpura- Civil Work 56% completed.

Ibrahimpura- Concreting of column in progress. 40% work completed.

Status of delay: Predicted delay by over 25 months to 25.07.10, subject to mitigation compliance.

Reasons for delay: • Site of Ibrahimpura handed over on 01.02.08 (10 months late). • Interim delays due to land dispute and objections by the forest

department on Shahpura site (approx 2 months). • Delay in Third Party Inspection of C.I. pipes and fittings for Shahpura

GSR. • The Contractor delayed in procurement of reinforcement steel, shuttering

plates due to significant surge in price of steel from Dec’07 onwards. • Lack of shuttering material, skilled personnel and labour.

Description Action By

Whom Current Status of

Mitigations

Advance procurement of steel and other construction materials required for construction of reservoirs

Contractor Delayed procurement

Mitigation Measures:

Deployment of skilled personnel and adequate labour for simultaneous work on each reservoir site

Contractor Inadequate inputs



Arrangement of separate shuttering, and form work for individual reservoirs

Contractor Separate shuttering. Not available


Remarks: Required increased procurement of materials. Need to deploy at least one site engineer at each site. Contractor to take up work simultaneously on each reservoir by arranging additional shuttering machinery and manpower.

2.1.2 Gwalior Water Supply The overall cost of the 20 water supply contract packages for Gwalior amounts to Rs. 13,481.64 lakh, equating to 16.13% above the PAM allocated amount. To date, design reports, bidding documents have been completed for 18 contract packages and invitation for bids have been completed for 17 contract packages. Award of contract has been given for the 02 International Shopping procurement contract packages and 15 civil works contract packages, for a total estimated amount of Rs.11,917.64 lakh, equating to 88% of the overall water supply programme: Refer to Appendix A-1 for details of the contracts under implementation. Of the 15 awarded civil works contracts, the following contract is now considered at risk, suffering various degrees of critical delays for which the stated mitigation measures are now being closely pursued by the PIU with the respective contractors. Package no.GWL/WS/11 Design and construction of RWPS, WTP 45 MLD & Pump house CWR &

CWPS Name of Contractor: M/s Vishwa Infrastructures & Services Pvt. Ltd, Secunderabad Cost of Contract: Rs. 1242.80 lakh

Contract amount includes O&M for Rs.12 lakh over 12 month period.

Date of Award: 29. 01. 2007 Time of completion: 18 Months (28.07.08) Extension of time Status: Contract is provisionally extended to 31.01.2010. Financial Progress: 31% Physical Progress: 61% Elapsed Time: 35.0 months (195 %)

Current Progress Status: WTP- RCC Work of cascade aerator, channel upto flash mixer, chemical

house upto plinth level and channel from FM to tube settler are completed upto 2 meter above GL. Boundary wall is almost completed. First floor slab of staff quarter is completed. RWPS- PSC pipe 625/ 640m is supplied at site and laid 135 m. Remaining works with boundary wall are in progress. Contract amount includes O&M cost 12 lac for 12 months period

Status of delay: Predicted delay of 24 months to 15.07.10, subject to mitigation compliance.

Reasons for delay: • Site of WTP changed from originally proposed location. • Delay in submission of design & drawings by the contractor • Delayed procurement of construction materials for simultaneous work

on all sites. • Inadequate deployment of skilled / unskilled labour for work on all

fronts at a time.





Additional resources of man power and machineries Contractor Inadequate inputs

Mitigation measures:

Construction materials are required to be provided Contractor Needs improvement


Remarks: Additional resources of man power and machinery required. The

contractor is required to arrange additional shuttering, manpower and machinery to work simultaneously on multiple fronts.

2.1.3 Jabalpur Water Supply The overall cost estimate of the 13 water supply contract packages for Jabalpur amounts to Rs. 16,752.52 lakh, equating to 73% of the PAM allocated amount. To date, 12 contracts have been awarded for an amount of Rs.15,442.52 lakh, equating to 92% of the overall programme. Contract JBP/WS/12 for the construction of the overhead storage reservoirs has been terminated and the balance work is under the re-tender process: Refer to Appendix A-1 for details of the contracts under implementation. Of the awarded civil works contracts (exclusive of the re-tender JBP/WS/12), the following 2 contracts are now considered at risk, suffering various degrees of critical delays for which the stated mitigation measures are now being closely pursued by the PIU with the respective contractors: Package no. JBP/WS/02 Rehabilitation of Mechanical and Electrical Equipments and Civil structures

of Water Treatment Plants at Ranjhi and Bhongadwar in Jabalpur. Name of Contractor: M/s Hydro-Tech Enterprises Pvt. Ltd, Delhi Cost of Contract: Rs. 552.80 lakhs Date of Award: 06.10.2007 Time of completion: 12 Months (05.10.08) Extension of time Status Provisional extension upto 31.03.2010 Financial Progress: 52% Physical Progress: 56% Elapsed time: 26.8 months (224%)

Current Progress Status: Ranjhi - Construction of chlorination building completed. Construction of

360m boundary wall completed. Removal of filter media & existing laterals & tiling work for four twin beds completed. U PVC pipes laid for four filter beds. Fixing of air blowers & back wash pumps completed. Bhongadwar - Laying of filter media & fixing of tiles completed in one filter bed. Casting of raft for all the eight footings of chlorination building completed. Columns are cast upto plinth level. Plastering of ceiling of filter house is completed. 4/4 footings for security house completed at Bhongadwar.No significant work during the month.

Status of delay Projected delay of 18 months to 31.03.10, subject to mitigation compliance

Reasons for delay • Delayed mobilization of staff and workmen. • Shut downs are not given in time. • Delay in carrying out NDT tests to determine the extent of rehabilitation

work required to be carried out.





Contractor to ensure sufficient inputs of labour, technical personnel to complete the work in a reasonable period of next six months.


Mitigation measure

Contractor to use adequate machinery & increase man power resources.

Contractor Inadequate


Remarks: It is to be ensured by PIU that timely shutdowns are given by the line

agency. Contractor to arrange adequate manpower and machinery.

Package no JBP/WS/17 120mld Ramnagara water treatment plant & Clear Waters

Pumping Station and sub station Name of Contractor M/S Driplex Water Engineering Ltd .Delhi Cost of Contract: Rs. 31.80 lakhs Date of award 14.12.07 Time of completion 24 Months (13.12.2009). Financial Progress: 57% Physical Progress: 61% Elapsed Time: 23.50 months (102%) Current Progress Status: Clarifloculater - Concreting for walls of 3 Clarifloculater completed.

About 50% o concrete for CWSR. CWPS - raft completed. Filter bedding 24 nos. PCC for footing and wall foundation continues. Excavation of filter beds completed 80%. Administrative Building: Boundarat wall 25/700mtr completed, Column cast upto plinth beam completed for Electrical Substation. Procurement of electrical and mechanical equipments: 5 nos VT pumps, dewatering pumps, chlorinators and accessories and 28 nos of various capacities, cable trays, HT panels is procured.

Status of delay Predicted completion 04.05.10, with a delay of 4.7 months, subject to mitigation compliance.

Reasons for delay • Delay in submission of design drawings. • Anomalous submission by the contractor making false interpretations

of the Contractor. • Deployment of insufficient skilled and semi skilled labour for execution

of the work. Mitigation measure Description Action By

Whom Current Status of Mitigations

Work is required to be taken up simultaneously on multiple fronts by deploying more labour and machinery.

Contractor Inadequate inputs.

Contractor to use advance machinery & increase man power to expedite the work progress.

Contractor Inadequate inputs.


Remarks: Work to be taken up on multiple fronts. Design engineer to be deployed by

the contractor. Adequate deployment of manpower and dedicated staff is required.



2.1.4 Indore Water Supply The overall cost estimate of the 30 water supply contract packages for Indore amounts to Rs. 63,167.77 lakh, equating to 13% above the PAM allocated amount. To date, 24 contracts have been awarded for 1 International Shopping procurement contract package and 23 civil works contract packages. Refer to Appendix A-1 for details of the contracts under implementation. 2.2 Wastewater and Sanitation Refer to Table 2.3 for the city-wise progress of the wastewater component of the project. The total investment for this component amounts to Rs. 23,336.00 lakhs and comprises 17 contract packages. The overall investment of this component, according to current status of cost estimates, is 16.55% below the PAM allocated amount. To date, all contracts have been awarded, including the award of 7 civil works contract (BPL/WW/01&02, BPL/WW/03, BPL/WW/04, BPL/WW/05, JBP/WW/02, JBP/WW/03 & JBP/WW/04). The civil works contract BPL/WW/04 has been completed for the construction of the treated effluent pipeline from Maholi to Dhamkheda for an amount of Rs. 245.40. Delivery of the below listed equipment has since been completed under packages PMU/WW/01, for Bhopal, Gwalior and Indore under central procurement through the PMU for vacuum and jetting cleaning equipment, for an investment of Rs.202.70 lakhs which is 1% of the overall wastewater and sanitation programme investment. The distribution of the equipment to the project cities has been completed as follows: • Sewer suction cum jetting machines (8,500 litre) Bhp, 2 No.; Gwl, 1 No.; Ind, 3 No.; • Suction Machine (4,500 litre) Gwl, 1 No.; • Sewer suction cum jetting machines (3,000 litre) Bhp, 4 No.; and • Jetting machines (2,000 litre) Gwl, 1 No. 2.2.1 Bhopal Wastewater The overall cost estimate of the 5 wastewater contract packages for Bhopal amounts to Rs. 8,312.45 lakh, inclusive of the sanitation programme, which is 14.80% above the PAM allocated amount. To date, all contracts have been awarded, inclusive of the central procurement package, PMU/WW/01, for an investment of Rs.98.56 lakhs, and 4 civil works package BPL/WW/01&02, BPL/WW/03, BPL/WW/04 and BPL/WW/05, are under implementation in supplementary loan 2456. The procurement package, PMU/WW/01/BPL, has been completed with the delivery of equipment of 2 nos. vacuum and jetting cleaning equipment of various capacities, to the Municipal Corporation for an investment of Rs.98.56 lakhs. The civil works package, BPL/WW/04, for the construction of the treated effluent pipeline from Maholi to Dhamkheda, has been physically completed inclusive of an additional variation of 5% for construction of WBM access roads, For an investment of Rs.258.72 lakhs. Of the contracts under implementation, the following 4 contracts (contract BPL/WW/01-02 is considered as one contract) are now considered at risk, suffering various degrees of critical delays for which the stated mitigation measures are now being closely pursued by the PIU with the respective contractors. Package no. BPL/WW/01

Providing, laying, jointing, testing and commissioning of sewerage network. Lot-1: RCC NP2 pipe 150 – 1000 mm dia – 26.5 km, DI Pipe 1.28 km, Manholes -1402 nos., uPVC 110 & 160 mm dia – 13.255 km, Road side chamber – 663 nos.

Name of Contractor: M/s Ramky Infrastructure, Hyderabad. Cost of Contract: Rs. 664.8 lakh Date of Award: 16.07.2007



Time of completion: 12 Months (15.07.08) Extension of time status: Provisionally extended upto 31.03.10 Financial Progress: 40% Physical Progress: 41% Elapsed Time: 29.5 months (246%)

Current Progress Status: RCC Pipe- 14.502/ 26.51 km procured, Laid: 12.386 km & Tested 9.612 km. PVC Pipe- 7.65/13.29 km Procured and Laid: 6.980 km DI pipe - All DI Pipe (1.28km) procured and 0.754 km laid. Manholes- 509/ 1402 nos and chamber 200/ 663 nos. are constructed. Road Restoration 8.156/ 15.211 km. completed.

Status of delay: Predicted contract delay by 21 months to 15.04.2010.

Reasons for delay: • Delay in procurement of ISI marked RCC NP2 pipes. • Inadequate inputs of skilled personnel, supervising Engineers, labour,

and materials. • BIS certification of R.C.C. pipe factory of vendors.

Description Action by whom



Contingency plan: procurement of R.C.C. pipes from BIS approved pipe manufacturer

Contractor Not procured


Remarks: The contractor to increase by more fronts to attain 3,700 m of pipe

installation per month. Sewer connection charges to be realized from households. Road restoration work and safety precautions to be ensured.

Package no. BPL/WW/02 Providing, laying, jointing, testing and commissioning of sewerage

network. RCC SP2 pipe 150 – 600 mm dia – 30 km, Manholes -1026 nos., uPVC 90 to 160 mm dia – 95.630km, Road side chamber – 3000 nos. & Gully Trap 4784 nos.

Name of Contractor: M/s Ramky Infrastructure, Hyderabad. Cost of Contract: Rs. 1490.24 lakh Date of Award: 16.07.2007 Time of completion: 18 Months (15.01.2009) Extension of time status: Provisionally extended to 31.03.2010 Financial Progress: 40% Physical Progress: 26% Elapsed Time: 29.5 months (164%)

Current Progress Status: RCC Pipe- 11.027/ 30.0 km procured, Laid: 10.094 km & Tested 6.6 km PVC Pipe- 31.163 / 95.6 km procured and 24.640 km laid. Chamber- 4163/ 7784 nos. constructed and Tested 1218 nos. Road Restoration 13.364/ 30.00 km. completed.

Status of delay: Predicted contract delay by 17.3 months, to 15.06.2010.

Reasons for delay: • Delay in procurement of ISI marked RCC NP2 pipes. • Inadequate inputs of skilled personnel, supervising Engineers, labour,

and materials. • BIS certification of R.C.C. pipe factory of vendors.

Mitigation measures: Description Action by whom




Contingency plan: procurement of R.C.C. pipes from BIS approved pipe manufacturer.

Contractor Not procured

Revise Work Plan Contractor/ Immediate

Original WP superseded


installation per month. Sewer connection charges to be realized from households. Road restoration work and safety precautions to be ensured.

Package no. BPL/WW/03 Providing, laying, jointing, testing and commissioning of sewerage

network. 200 – 1200 mm dia of 127.69 km, Manholes – 5035 nos., uPVC – 51.6 km, Road side chambers – 2600 nos.

Name of Contractor: M/s JMC Projects(I) Ltd. Cost of Contract: Rs. 3542.93 lakh Date of Award: 21.09.2007 Time of completion: 24 Months (20.09.2009) Extension of time status: Provisionally extended to 31.03.11 Financial Progress: 32% Physical Progress: 30% Elapsed Time: 27.3 months (114%) Current Progress Status: RCC Pipe- 82.496/ 127.69 km procured, 36.588 km laid and 24.021 km

tested. PVC Pipe- 25.80 / 61.0 km procured and only 2.70 km laid. Manholes- 1300/ 5034 Nos. and chambers 945/ 3130 nos. constructed. Road Restoration -26.150/ 127.000 km. completed.

Status of delay: Predicted delay of 20.3 months to 31.03.11, subject mitigation compliance.

Reasons for delay: • Left permission of ISI. So laying start from 6th March 08. • Working on minimum number of fronts by the Contractor. • Difficulty in achieving 95% density of back fill, as prescribed in the

contract. • Difficulty in laying 600mm dia. 2 km sewer in Nalla bed.



Deployment of additional labour and machinery for pipe laying on 6 fronts.


Back fill to be done in layers with watering and compaction to achieve 95% density as prescribed in the contract.

Contractor Needs improvement


Field hydro test of laid pipes to be taken up immediately after laying pipes.

Contractor To be taken up.



installation per month. Road restoration work and safety precautions to be ensured.

Package no. BPL/WW/05 Design, supply, construction of Sewage pumping stations supply, laying

and testing of 2.61 km, 1000 mm dia DI pumping main, 4.6 km, 1200 to



1600 mm dia RCC gravity main, Manholes – 66 nos. Name of Contractor: M/s Kirloskar Brothers Ltd. Cost of Contract: Rs. 2270.60 lakh Date of Award: 11.12.2007 Time of completion: 18 months (10.06.2009)

Extension of time status: Provisionally extended to 16.06.2010 Financial Progress: 50 % Physical Progress: 42% Elapsed Time: 24.6 months (102%)

Current Progress Status: RCC Pipe- 2.250/ 4.607 km procured and 1.806 km laid. DI Pipe- 2.7/ 2.810 km procured and 2.526 km laid. Sluice Valves: 6 nos. & Pumps: 4 nos. received at site. Civil work : 9 nos. thrust block for DI Pipe completed.

Status of delay: Predicted delay of about 16 months, to 10.10.2010, subject to improved output by contractor.

Reasons for delay: • Inadequate mobilization of personnel, labour materials and machinery by the Contractor.

• Delay in confirmatory survey for gravity main and pumping main by the Contractor.

• Delay in procurement of D.I. fittings, Geological investigations for SPS site, submission of designs for SPS.

• Non submission of QAP for most of the Electrical, Mechanical and instrumentation equipments.



Adequate mobilization of plant and labour. Contractor Inadequate inputs.

Finalization and submission of designs of SPS, and QAP for equipments.

Contractor Pending


Efficient procurement of D.I. fittings, and equipments and machinery required in the Contract.

Contractor Needs improvement



installation per month. Contractor is required to work simultaneously, day and night on multiple fronts.

2.2.2 Gwalior Wastewater Due to budget constraints, Gwalior MIC approved the removal of the wastewater and sanitation civil works components from the ADB programme, which are now to be implemented under UIDSSMT. One contract package GWL/WW/04 for the construction of a 60 MLD STP is proposed to be financed and implemented under the supplementary loan provisions. On site sanitation will be taken up under the AIF component of the programme, as part of an integrated development approach inclusive of water supply initiatives. The PMU central procurement contract has been completed, for the delivery of 3 nos. of vacuum and jetting cleaning equipment of various capacities, under package PMU/WW/01/GWL for an investment of Rs. 43.56 lakhs. 2.2.3 Jabalpur Wastewater



The Municipal Corporation has deferred the procurement of the suction cum jetting equipment to be implemented under JN-NURM programme. All proposals for inclusion of sanitation schemes have been deferred to the JN-NURM programme. The overall cost estimate of the 3 wastewater contract packages for Jabalpur amounts to Rs. 8,118.41 lakhs, which is above the PAM allocated amount by 19.37%. To date, all contracts have been awarded. All the contracts under implementation are now considered at risk, suffering various degrees of critical delays for which the stated mitigation measures are now being closely pursued by the PIU with the respective contractors:

Package no. JBP/WW/02 Providing, laying, jointing, testing and commissioning of Trunk Sewers and Outfall Sewers for the core area of Jabalpur. RCC Sever Pipes (200mm to 1600mm dia.) -38.61 km

Name of Contractor: M/s Ramky Infrastructure, Hyderabad. Cost of Contract: Rs. 2466.75 lakh Date of Award: 13.07.2007 Time of completion: 24 Months (12.07.2009) Financial Progress: 18% Physical Progress: 13% Elapsed Time: 29.6 months (123%) Extension of Time status: Provisionally extended upto 12.01.2010 Current Progress Status: RCC Pipe- Manufactured 10.685 km / 40.00km and 3.23 km laid. Hydro

test done for 0.415 Km Manholes - 50/1214 constructed. Mobilization of contractor remains poor. No considerable progress during the month.

Status of delay Predicted delay: 15.6 months to 30.10.2010, subject to mitigation compliance.

Reasons for delay • Non availability of RCC pipes duly ISI marked. • Non deployment of personnel having experience in similar type of job.



Mitigation measure:

Work is required to be started simultaneously on multiple fronts.


Revise Work Plan Contractor/ Immediate

Original WP superseded


installation per month. Road restoration and safety precautions to be ensured. Household connection chambers to be constructed simultaneously. To ensure connection charges.

Package no. JBP/WW/03 Providing, laying, jointing, testing and commissioning of Trunk Sewers for the core area of Jabalpur. RCC Sever Pipes (200mm to 400mm dia.) - 160.6km & uPVC Pipes - 115.574 km.

Name of Contractor: M/s Ramky Infrastructure, Hyderabad. Cost of Contract: Rs. 4853.35 lakh Date of Award: 15.10.2007 Time of completion: 24 Months (14.10.09). Contract extended to 14.04.2010. Financial Progress: 16% Physical Progress: 9% Elapsed Time: 26.5 months (111%) Current Progress Status: RCC Pipe- Procured 32.569/ 155.0 km and 16.368 km laid. Hydro test

done for 6.98 Km. uPVC Pipe- All PVC pipe (10.0km) procured and 6.38 km laid. Manholes- 625/ 5144 nos. constructed.



Extension of Time Status: Considered to 31.12.2009 Status of delay Predicted delay of 12.5 months to 30.10.2010. Reasons for delay • Delay in setting up the factory and manufacture of RCC pipes.

• Absence of skilled personnel. Mitigation measure: Description Action by

whom Current Status of

Mitigations Deployment of inputs of personnel and labour. Contractor Inadequate inputs Revise Work Plan Contractor Original WP superseded Remarks The contractor to increase by more fronts to attain 4,000 m of pipe

installation per month. Household connection chambers to be constructed simultaneously. To ensure connection charges.

Package no. JBP/WW/04 Construction of Sewerage Treatment Plant of 50 MLD by waste

stabilization pond at Kathonda, Jabalpur. Name of Contractor: M/s Rajani Construction, Bhopal JV with Makhija Const Co. Indore. Cost of Contract: Rs. 798.30 lakh Date of Award: 15.10.2007 Time of completion: 18 Months (14.04.2009).

Financial Progress: 68% Physical Progress: 65% Elapsed Time: 25.5 months (147%) Current Progress Status: Excavation for Anaerobic Pond, Facultative pond completed. Concreting

for footings for administrative building is completed. Root slab cast. Construction of security building completed upto root level. Construction for embankments of facultative pond completed. About 1,50,000 cum of excavation out of 1,55,000 completed.7 nos Sluice gate and RCC NP3 pipes of 1400mm, 1200mm and 700mm dia and two nos mechanically raked automatic medium bar screens received at site. Contractor has commenced laying of WMM from 24.11.2009

Extension of Time Status: Extended upto 31.12.2009. Status of delay ……………………………………. Reasons for delay Work commenced late (Oct’, 08) due to non availability of clear site.

Mitigation measure: Description Action by

whom Current Status of

Mitigations Deployment of inputs of personnel and labour. Contractor Inadequate inputs


Remarks: Deployment of personnel, labour and machinery. Procurement of E&M

equipment immediately. Civil works to be started simultaneously.

2.2.4 Indore Wastewater All proposals for inclusion of sanitation schemes had been deferred to the JN-NURM programme. However, it has since been proposed to include contract package IND/WW/02, for the installation of the interceptor sewer at Bhamori Nallah, under the supplementary loan provision. To date, award of contract, and subsequent delivery of 3 number 8,500 litre vacuum jetting equipment, has been completed under the central procurement contract package PMU/WW/01 for an investment of Rs. 60.58 lakhs. No clearances are required for the civil works contract.



2.3 Solid Waste Management Gwalior has arranged implementation of their solid waste management programme under other funding and so has withdrawn from this component but has diverted the allocated budget to their water supply infrastructural development programmes. Refer to Table 2.4 for the city-wise progress of the solid waste management component of the project. The total investment for this component excluding centre procurement amounts to Rs. 3,901.78 lakhs and comprises 6 civil work contract packages and 17 procurement contract packages, which is 30.88% less than allocated amount. Contracts have been completed for 17 procurement contract packages under central procurement through the PMU for purchase of equipment, under International Shopping for dumper trucks, dozers, excavators, loaders, and secondary collection and transportation equipment for an investment of Rs.1,225.16 lakhs. 2.3.1 Bhopal Solid Waste Management The overall cost estimate of the 8 procurement contract packages for Bhopal amounts to Rs.629.32 lakh, which is 47.64% below that of the PAM allocated amount. To date, all contracts have been completed with the delivery of dumper trucks, dozers, excavators, loaders, and secondary collection and transportation equipment to the BMC. 2.3.2 Jabalpur Solid Waste Management The overall cost estimate of the 5 contract packages, inclusive of 4 packages under PMU control procurement, amounts to Rs. 870.32 lakh, which is 37.43% below the PAM allocated amount. To date, all contracts have been awarded. Contracts have been completed for the 4 procurement contract packages for a total investment of Rs.120.36 lakh, equating to 14% of the overall programme. Refer to Appendix A-1 for details of the contracts under implementation. Of the awarded civil works contracts (exclusive of the re-tender JBP/WS/12), the following contract is now considered at risk, suffering various degrees of critical delays for which the stated mitigation measures are now being closely pursued by the PIU with the respective contractors

Package no. JBP/SWM/04 Construction of Sewerage Treatment Plant of 50 MLD by waste stabilization pond at Kathonda, Jabalpur.

Name of Contractor: M/s Ramky Enviro, Hyderabad.

Cost of Contract: Rs. 749.96 lakh

Date of Award: 05.05.2008

Time of completion: 12 Months (04.05.2009). Financial Progress: 17% Physical Progress: 14%

Elapsed Time: 25.5 months (166%)

Current Progress Status: Excavation for 2 nos. of ponds commenced 85% of excavation for both the ponds completed. Road work is stopped by contractor. Contract amount includes O&M cost Rs. 9.27 lakh over 24 month period.

Extension of Time Status: Extended upto 31.03.2010.

Status of delay …………………………………….



Reasons for delay Work commenced late (Oct’, 08) due to non availability of clear site.

Mitigation measure: Description Action by whom


Deployment of inputs of personnel and labour. Contractor Inadequate inputs


Remarks: Technical personnel not deployed as committed on the bid Resources of

manpower and machinery deployed by the contractor are inadequate. 2.3.3 Indore Solid Waste Management The total number of contract packages for Indore Municipal Corporation, comprise 2 civil works package and 5 contracts for PMU centrally procurement of equipment, for a total estimated investment of Rs. 1,655.13 lakhs, which is 28.19% below that of the PAM allocated amount. To date, all contracts have been awarded, out of which contracts have been completed for the 5 procurement contract packages for a total investment of Rs.475.46 lakh, equating to 56.18% of the overall programme. Award of contract has been issued for 1 civil work package IND/SWM/05 for an investment of Rs. 976.66 lakhs, refer to Appendix A-1 for current progress status. 2.4 Storm water Drainage Refer to Table 2.5 for the city-wise progress of the solid waste management component of the project. The total investment for this component amounts to Rs. 6,849.00 lakhs and comprises 5 contract packages, which is 5.3% less than the allocated amount. Bhopal and Indore have not included any stormwater drainage component in their infrastructural improvement programme under Project UDAY. Due to budget constraints, Gwalior MIC had approved the removal of the drainage component from ADB Programme and recommended for implementation under UIDSSMT. However, GMC has since included 3 contract packages, GWL/DR/01 to 03, for secondary drainage at Raipur, Gwalior and Lashkar East and Lashkar West locations, for a total estimated investment of Rs. 2,100.00 lakhs, which is 15.49% below that of the PAM allocated amount. Jabalpur MIC, during May 2007, approved the removal of their drainage component from ADB Programme and recommended for implementation under the JN-NURM programme. However, JMC has since included contract package, JBP/DR/02, for drainage at Zone III: Adhartal to Cherital, for a total estimated investment of Rs. 4,749 lakhs, which is equivalent of the PAM allocated amount.



CHAPTER 3

Community Development & Urban Governance



3. COMMUNITY DEVELOPMENT & URBAN GOVERNANCE 3.1 Community and Social Development Incorporation of Urban Governance and Institutional Development, is being is designed to increase the awareness and participation of the Project beneficiaries. 3.1.1 Scope of Area Improvement Fund (AIF) Works The DPRs submitted are mainly considering the available options for AIF/CIF water supply and wastewater/sanitation which has been considered for the selected slums depending on the needs assessment and the social/financial issues of the respective communities. AIF water supply works will provide for improved water supply and have been identified as supplementary to the main Project UDAY water supply provisions. The DPRs submitted by the various cities are as follows and the status is as stated: Bhopal

1) BPL/CD/AIF/05-Arjun Ward- Revised DPR was submitted and the comments have been complied with and forwarded for approval.

2) BPL/CD/AIF/01-Sector I- Revised DPR was submitted and the comments have been complied with and forwarded for approval.

3) BPL/CD/AIF/02-Sector II –recommended for approval. 4) BPL/CD/09- Nai Basti - Revised DPR was submitted and the comments have been complied with

and forwarded for approval. 5) BPL/CD/10-School Sector –Revised DPR was submitted and the comments have been complied

with and forwarded for approval. 6) BPL/CD/08-Shivaji Ward- Revised DPR was submitted and the comments have been complied

with and forwarded for approval. 7) BPL/CD/07- Tagore Ward- Revised DPR was submitted and the comments have been complied

with and forwarded for approval. 8) BPL/CD/05-Arjun Ward- Revised DPR was submitted and the comments have been complied

with and forwarded for approval. 9) BPL/CD/13-Rajeev Nagar (Maida Mill)- Revised DPR was submitted and the comments have

been complied with and forwarded for approval. Gwalior

1) GWL/CD/12 –Pardhi Mohalla. Revised DPR was submitted and the comments have been complied with and forwarded for approval.

2) GWL/CD/14-Ramdas Nagar Ghati. Revised DPR was submitted and the comments have been complied with and forwarded for approval.

3) GWL/CD/18-Leather Factory - Revised DPR was submitted and the comments have been complied with and forwarded for approval.

Indore

1) IND/CD/15- Comments sent by PMC. 2) IND/CD/18-Comments sent by PMC.

Jabalpur

1) JBP/CD/11-Kanch Ghar- Revised DPR was submitted and the comments have been complied with and forwarded for approval.

2) JBP/CD/12-Siddarth Nagar - Revised DPR was submitted and the comments have been complied with and forwarded for approval.



3) JBP/CD/05 – Ram Nagar- Revised DPR was submitted and the comments have been complied with and forwarded for approval.

4) JBP/CD/09 –Kumar Mohalla –CIF Proposal has been recommended for approval 5) JBP/CD/07- Purana Gwarighat-Jabalpur CIF Proposal has been recommended for approval 6) JBP/CD/10-Nai Basti-Jabalpur CIF Proposal has been recommended for approval 7) JBP/CD/01-Bhoolan Basti- Jabalpur CIF Proposal has been recommended for approval 8) JBP/CD/14-Harijan Basti-Phoota Taal Jabalpur CIF Proposal has been recommended for

approval 9) JBP/CD/02 -Badi Ukheri- Jabalpur CIF Proposal has been recommended for approval 10) JBP/CD/03 –Dhobi Mohalla- Jabalpur CIF Proposal has been recommended for approval 11) JBP/CD/19-Amkhere Jabalpur CIF proposal has been recommended for approval. 12) JBP/CD/04-Masoom Ki Wada- Jabalpur CIF proposal has been recommended for approval. 13) JBP/CD/09-Nai Basti- Jabalpur CIF proposal has been recommended for approval.

3.1.2 Scope of Community Improvement Fund (CIF) Activities There has been a recent clarity that if the community has the need and there is availability of land Multi-Purpose hall may be considered. However, efforts naturally should be made to involve the community to ascertain the up keep as well as the productive use of the Hall, so that it remains a sustainable asset. CIF activities as is known are to support identified social and community needs, in terms of short and long term impacts for enhanced opportunities in attaining improved status amongst potential beneficiaries, and hence improving the future economy of the targeted social groups. The selection of beneficiaries has involved the impartial selection of targeted social groups and/or individuals, according to needs of identified vulnerable groups with a particular emphasis on enhanced gender opportunities and empanelment. The outcome of CIF activities are as essential as core indicators can be felt and when a community is empowered it finds its own path that impacts the community as a whole. 3.1.3 Collaboration with UN-Habitat/Water Aid & Partner NGO’s Collaboration of UN-Habitat and Water Aid, has been defined and the CIF interventions according to the analyzed priority needs are likely to follow. Water Aid’s Partner NGO will be conducting WASH activities according to the action plan Water has shared with Project Uday. All activities will done which in its legal process empowers the community. To state a few, they are as follows: • CGC agreement on standard Duty Stamp paper; • Details of each CIF sub-project; • CIF implementation plan; • Identified capacity building and related training needs, inclusive of detailed training modules; • Details of Financing: using 3 quote financial propriety and single source selection, as appropriate; • Inclusive of full details of community contribution levels and financial statements regarding

sustainability as appropriate 3.1.4 Preparation of the Detailed Design Reports Topographical Survey for the main AIF/CIF slums are nearing completion. All outstanding AIF/CIF integrated DPR’s are now to be prepared through one, or a combination, of the following means: • For topographical survey utilize PIU resources and/or outsource agency engaged by CGC; • For similar scope of works edit previous DPR, as appropriate; • For entirely new scope of works, engage Local Design Agency through the CGC; and • Utilize in-house DSC/PIU design capabilities.



Refer to the Implementation Schedule given in Appendix A-2, which gives the scheduled dates of deliverables for the AIF/CIF sub-projects for the three phases of the programme. 3.1.5 Gender Mainstreaming and Gender Action Plan The Gender Action Plan (GAP), developed in accordance in with ADB’s Project Administration Memorandum (PAM), has been formally issued to the respective Municipal Corporations for formulating their specific GAP according to project interventions. Further gender sensitizing will now be directed towards the AIF/CIF activities throughout the course of the implementation programme, of the various DPRs that are coming. 3.2 Environmental

3.2.1 Category of Environmental Sensitivity

All DPRs and other contract packages, under Project UDAY, from the point of view environmental sensitivity are secondary, whereby the level of impact is deemed not to be of major consequence. Some of the sub-project sites fall under forest land use, under which clearance and development of compensatory afforestation is mandatory before contract implementation. Packages involving installation of pipelines do not require extensive environmental studies; but counter measures will occasionally be taken dependant on the prevailing sensitivity. 3.3 Urban Development and Land Policy Comprehensive Urban Development Policy document, as it stands, indicates the steps to be taken in institutional, legislative, financial, empowerment of ULB’S, urban planning, city planning, water supply, slum development, which is to be taken up for implementation. 3.3.1 Unified Municipal Law A committee, setup by the UADD, to prepare the draft in confirmation with the Model Nagar Raj Bill moved by the MoUD, Government of India subsequently exercise has been done to prepare the initial draft. The process is going through the various stages of approval by UADD, approval by Senior Secretaries Committee, approval of Law department, Cabinet approval and approval of state legislature. 3.3.2 Urban Sanitation Mission Proposals remain under preparation and review for setting up of an Urban Sanitation Mission in the state, of which components of the policy are being reviewed, inclusive of scrutiny of the incorporated structure and legal framework for implementing various measures. The draft proposal has since been presented before the Committee of senior Secretaries and was approved. The state government proposes to setup an Urban Sanitation Mission to undertake the task of improving sanitation in urban areas in a Mission Mode. 3.4 Project Performance Management System (PPMS) Report Progress has been assessed in terms of overall performance and an appraisal of key activities for the stated stages, as monitored against a system of assigned weighted averages. Refer to Table 1.7, which shows an equivalent weighted average overall project progress status of 67.03%, as compared to an effective elapsed time of 74.04% in terms of contract period from 21st June 2004 to date and completion of the revised programme, inclusive of Contracts 2046-IND and 2456-IND, by March 2011.



CHAPTER 4

Compliance with ADB Major Loan Covenants



4. COMPLIANCE WITH ADB MAJOR LOAN COVENANTS The status of compliance with the ADB Covenants as stipulated within the Loan Agreement (LA), referred in Schedule 6 of the PAM document and appropriate RRP Appendices, is detailed in accordance with progress made up to the 31st December 2009.

Project Specific Covenants:

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Respons-ibility Timeframe Status of Compliance

4.1 Sector Covenants

1 Urban Water Supply Management Improvement Plan (UWSMIP) The State shall ensure that the Project City Corporations undertake the actions to meet the long-term objective of improving water supply management in accordance with the timetable agreed among the State, the Project City Corporations and ADB and attached as Appendix 9 to the RRP for the Project, unless otherwise agreed among the State, ADB and the Project City Corporation.

Para 8.

GoMP/ UADD/ ULB

2011 Framework document, for formation of autonomous Water & Sanitation Department (WSD) in MP, under review, inclusive of: • acceptance of concept by MC’s; • agreed revision to RRP timeframe; • identify required institutional strengthening; • setup organization, staffing & training for

quality services; • fix service level standards & monitor; • WSD responsibility for billing & collection; • form accounting dept & annual audit.

2 Municipal Action Plan for Poverty Reduction The State shall ensure that each Project City Corporation prepares an initial MAPPR within one year of the Effective date and annually thereafter for submission to the PMU in accordance with the MAPPR framework agreed among the Borrower, the State and the Project Cities and attached to the RRP for the Project as Supplementary Appendix E.

Para 10.

GoMP/ UADD/ ULB

2011 Data collection and analysis has been collected, according to the MAPPR approach. Under UWSEIP, MAPPR approach adopted in identification of 40 priority order pre-selection AIF main slums and 40 slums for rehabilitation of community toilets.

Adequate AIF & CIF Allocations The State shall ensure that adequate allocations are made: (i) from the AIF to the Project City Corporations;

and

Para 11.

UADD/ Finance

2009 to 2011

AIF allocations made in compliance with the budget provisions of the PAM. Verification, according to slum selection and community needs assessment. 40 priority order pre-selection slums and 40 slums for rehabilitation of community toilets finalized for AIF works and CIF activities: August 2007.

(ii) from the CIF to the PIUs for community based activities.

In each case only for approved schemes under the MAPPR and in a manner satisfactory to ADB.

UADD/ Finance

2009 to 2011

CIF allocations made in compliance with the budget provisions of the PAM, verification, according to community development programme and needs assessment.

3

The State shall ensure that the Quarterly Reports (refer Section 5.6) prepared by the PMU include progress made and statements on use of funds under AIF and CIF.

UADD/ PMU

2008 to 2011

Quarterly AIF & CIF data, is furnished according to progressive community development programme. DPR Approved – 31 Nos. Under bidding – 07 Nos. Under Implementation – 08 Nos.

4 MAPPR Appraisal The State shall ensure that the PMU undertakes an appraisal of each MAPPR, including an appraisal of the schemes funded from the AIF and CIF, on an annual basis in the third quarter of each MAPPR

Para 12.

UADD/ PMU

2007 to 2008 2009 2010

Complied. Phase I AIF/CIF programme under progress Phase II AIF/CIF programme




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cycle. 2011 Phase II I AIF/CIF programme

4.2 Environmental Loan Covenants

Environmental Management Plan The State and the project City Corporations shall ensure that the Project is carried out in accordance with the existing environmental laws and regulations of India and ADB’s environmental guidelines, in particular the Environment Policy of the Asian Development Bank (2002):

Para 14.

GoMP/ UADD/ ULB

2008 to 2011

Under compliance in accordance with ADB Environmental Policy and Environmental Assessment Guidelines 2003.

(a) all monitoring and mitigation measures indicated in the Initial Environmental Examination and provided for under the Environmental Management Plan are undertaken for the Project

ULB 2008 to 2011

Complied: EMP’s prepared for each city and regularly monitored for compliance of stated mitigation measures. EMP Quarterly Report now prepared.

(b) Project implementation shall include consultation with local communities on environmental issues;

ULB Under compliance: which is also forming part of the undergoing public awareness campaigns.

(c) Project City Corporations shall take a proactive role in environmental planning, management and monitoring;

ULB Under compliance: Initiated as the concept and detailed design stages and being progressed.

(d) State Pollution Control Board clearance shall be obtained for all applicable Project components prior to commencement of work on those components; and

ULB 2009 Under compliance: specific clearance details are now compiled for appropriate contract packages.

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(e) Existing waste disposal sites that have reached full capacity shall be properly sealed within three months of commencement of operation of the new sanitary landfills.

ULB 2007 to 2009

Relevant clauses are placed in the Contract Document in accordance with SWM Supreme Court Guidelines.

2 Indore Narmada WS Pipeline RoW Enforcement The State shall ensure that the route of the proposed water supply transmission pipeline from Narmada River to Indore shall be within the existing right-of-way with no new acquisition of forest or other land, unless identified as necessary during detail Project design.

Para 16.

IMC 2007 to 2008

Complied by Indore Municipal Corporation: Land ownership title and right of way requirements finalized with the Highway Department (via Collector Indore) and Forestry Dept. (via Collector Khargone)

3 Wastewater Discharge Protocol The State shall ensure that Indore City Corporation is allowed to discharge and treat sewage in the sewage treatment plants constructed under the centrally sponsored schemes prior to award of sewerage network contracts under the Project.

Para 17.

IMC 2008 Complied by the Indore Municipal Corporation.

4 Operation & Maintenance The State shall ensure that each Project City Corporation undertakes operation and maintenance of Project facilities in accordance with good practice for water supply, sewerage and solid waste management, and in accordance with the regulations of India and of the State.

Para 20.

GoMP/ UADD/ ULB

2009 to 2011

Shall be ensured as required. Will form part of the training requirement in effective O&M practices.




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4.3 Social Loan Covenants

1 Public Participation & Awareness Program: WAC Program The State shall ensure that Bhopal shall implement the WAC Program in accordance with the detailed implementation strategy and plan to be agreed by the Borrower, the State, Indore, ADB and UN-HABITAT. The Borrower and the State shall have entered into an agreement with UN-HABITAT to implement the WAC Program in Indore within six months of the Effective Date.

Para 9.

GoMP/ UADD/ ULB

2005 to 2006 2006

Complied: Water Demand Management study in Indore conducted by UN-HABITAT, in accordance with the recommended implementing strategies. WDM Report issued February 2006. Complied

2 Gender Action Plan The State shall ensure that the Gender Action Plan as agreed among the Borrower, the State and ADB and set out in supplementary Appendix J to the RRP for the Project is implemented. The PMU has prepared a gender checklist which is being checked against the DPRs submitted for approval.

Para 13.

GoMP/ UADD/ ULB

2007 to 2011

Gender Action Plan, incorporating Project Implementation and Urban Governance areas of focus has been circulated to city corporations. Gender Field Manual is being developed keeping in mind the socio cultural and ethnic backgrounds and status in the various cities and communities as is being documented by the DSCs / PMC and the CGCs while implementing the AIF-CIF Programmes.

3 Land Acquisition and Resettlement a) The State shall cause the Short Resettlement Plan (attached to the RRP for the Project as Supplementary Appendix G) relating to the sewage treatment plant in Jabalpur, including the provision of all required counterpart funds for agreed compensation to affected persons to be implemented in a manner satisfactory to ADB prior to award of the civil works contracts.

Para 15a)

GoMP/ UADD/ JMC

2007 2008 to 2009 2008 to 2009

SRP approved by ADB. Contract Packages: JBP/WW/04 for 50 MLD STP & JBP/SWM/03 for sanitary landfill sites at Khathonda: A total of 25 affected households, comprising 17 titled landowners (99 APs) and 8 untitled families (54 APs) Implementation ongoing in compliance with Short Resettlement Plan and Quarterly Report being issued.

Resettlement Plan b) The State shall ensure that: (i) Project components are designed so as to

minimize resettlement; and

Para 15b)

GoMP/ UADD/ ULB

2007 Complied: general policy adopted for all designs.

4

(ii) If, during detailed design of Project components, involuntary resettlement arises from land acquisition or temporary disruption of income generation, a resettlement plan (the Resettlement Plan) shall be prepared and implemented in accordance with:

• Government laws and procedures; • ADB’s Policy on Involuntary

Resettlement; and • the Project’s agreed Land Acquisition

and Resettlement Framework (attached to the RRP for the Project as Supplementary Appendix F).

UADD/ ULB

2009 To date involuntary resettlement has not been required, but shall comply if requirement identified during design stage.




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5 Involuntary Resettlement c) If any Involuntary Resettlement is required as described in paragraph 3.4(ii) above, based on the final engineering designs for the Project, the State shall prepare the Resettlement Plan, submit this for ADB’s approval and ensure the provision of all required counterpart funds for agreed compensation to affected persons prior to award of civil works contracts in the affected area. ADB’s approval of the Resettlement Plan and disbursement of agreed compensation shall be a condition for award of civil works contracts in the affected area.

Para 15c)

GoMP/ UADD/ ULB

Complied as applicable. Currently there is no issue.

6 Land Acquisition d) All land required for a Project component, including any that may entail involuntary resettlement, shall be acquired no later than twelve months after loan effectiveness, failing which the component shall be eliminated from the Project unless ADB agree otherwise.

Para 15d)

UADD/ ULB

2009 The timeframe planning for completion of all land issues is being managed, for which LA issues are being addressed according to project location and implicated agency. Advance action being taken to ensure full compliance.

4.4 Financial Loan Covenants

1 Financial Improvement Action Plan (FIAP) The State shall cause each Project City Corporation to prepare and submit a resolution to its Municipal Council to execute the Financial Improvement Action Plan in accordance with the timetable agreed with ADB within one month from the Effective Date.

Para 6.

GoMP/ UADD/ ULB

2005 to 2011

In compliance with the rescheduled FIAP Appendix 5: Bhopal Municipal Corporation: the proposal for FIAP is approved by the MIC. The proposal for revision of rates is approved by the Parisad. Gwalior Municipal Corporation: the proposal for FIAP has been approved by the MIC of GMC in principle with some modifications, and has since been approved by the Parishad. Jabalpur Municipal Corporation: the proposal for FIAP has been approved by the MIC of JMC and ratified by Parisad members. The collection of water rates at revised rates continues. Indore Municipal Corporation: the proposal for FIAP has been approved by the MIC of IMC and ratified by the Parisad members. The collection of water rates at revised rates continues.

2 Agreed Timetable for FIAP The State shall ensure that the Project City Corporations execute the Financial Management Improvement Action Plan, in accordance with the timetable agreed among the Borrower, the State, the Project City Corporations and ADB and attached as Appendix 12 to the RRP for the Project, including:

Para 7.

GoMP/ UADD/ ULB

2005 to 2011

In compliance with the rescheduled FIAP Appendix 5: The timeframe and scheduled dates of the FIAP has been revised allowing for the late signing of the Loan Agreement.




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(a) revision in water charges and introduction of progressive block rate water tariff;

Para 7a).

UADD/ ULB

2005 to 2011

In compliance with the rescheduled FIAP Appendix 5: the water tariff revision status is as follows: • Bhopal: water tariff revision proposal

from previous Rs.60/ mth to Rs.150/mth and annual increments of Rs.10/mth: approved by MIC, approved in principle by Parisad.

• Gwalior: proposed increase in tariff from current Rs.60/ mth approved by MIC and ratified by the Parisad.

• Jabalpur: tariff revision dated 06.07.06, retroactive from 01.04.06: Domestic metered: rate increase from Rs.3 to 3.5/kl; Bulk & non-domestic metered: rate increase from Rs.9 to 13.5/kl; Domestic non-metered: from 60 to 70 Rs./mth (½” dia); from 120 to 180 Rs./mth (¾” dia). Commercial: increased by 50% for all bulk consumption categories

• Indore: tariff revision dated 11.09.06, active from 01.10.06: Domestic metered: rate increase from Rs.10 to 11/kl, & annual increments of Rs.1/kl thereafter; Domestic non-metered (½” dia): from 60 to 150 Rs./mth & annual increments thereafter. Commercial and Industrial: increased for all size of connections, and further increased annually up to 2015.

(b) reassessment of properties and revision in taxes;

Para 7b).

ULB 2005 to 2011

Being examined by the City Corporations in compliance with the rescheduled FIAP Appendix 5: • Reassessment/ revaluation of

properties • revision in taxes

(c) introduction of sewerage surcharge; and

Para 7c)

ULB 2010 Included as part FIAP commitment.

(d) improved collection efficiency. There shall be no amendments to the timetable without the prior consent of the ADB.

Para 7d)

ULB 2005 to 2011

Included as part FIAP commitment: the timeframe and scheduled dates of the FIAP has been revised allowing for the late signing of the Loan Agreement.

3 Allocation of Resources The State shall allocate, and shall ensure that the Project City Corporations allocate, adequate amounts in their annual budgets to meet their respective investment requirements in accordance with the disbursement schedule in each Project City.

Para 21.

GoMP/ UADD/ ULB

2005 to 2011

The Financing Plan for each of the Project Cities has been finalized. The Cities have been informed of the total Project cost and their required financial commitment under annual phasing.

4 PMU & PIU’s Accounts, Records & Audit The State shall ensure that the PMU and PIUs

Para 22.

GoMP/ UADD/

2005 to 2011

PMU and PIU’s are maintaining separate accounts and records adequate to identify




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establish and maintain separate accounts and records adequate to identify the incomes and expenditures related to the Project. Detailed consolidated annual Project accounts, as maintained by the PMU, shall be audited by independent auditors acceptable to ADB and shall be submitted to ADB within nine months of the close of the fiscal year. The annual audit shall include the audit of the SGIA and SOE procedure, and a separate audit opinion on the use of the SGIA and SOE procedure shall be included in the annual audit report.

Finance/ ULB

Annually Annually

the incomes and expenditures related to the project. Independent Auditor, Mishra Tiwari & Associates, Bhopal, appointed. Audit Report for FY 2008-08 sent to ADB. The audit of accounts conducted in accordance with the scheduled period.

5 Audit of Accounts of Project Cities The State shall ensure that a system of audit of accounts by externally appointed auditors is introduced for the Project Cities. The External auditors shall complete the audit of accounts of the Project City Corporations within nine months of each year-end.

Para 23.

GoMP/ UADD/ Finance/ ULB

Annually

External auditors have been appointed and audit is being done regularly by auditor.

6 Financial Assistance to Low-Income Groups The State shall ensure that Project City Corporations maintain a facility for providing financial assistance to the low-income group households (Income limit shall be fixed in consultation with ADB) to ensure connection to the water and sewer systems.

Para 18.


2009 to 2011

Under AIF/CIF activities, to be taken up by Municipal Corporations, as required.

7 Regular Payment of Electricity Bills The State shall endeavor that the Project City Corporations are regular in payment of their electricity bills to the Madhya Pradesh State Electricity Board and shall not accumulate any new arrears starting in the Borrower’s fiscal year beginning April 2005.

Para 19.


2005 to 2011

MC arrear data has been reconciled with MP State Electricity Board and recovery of arrears shall be made in regular monthly installments.

4.5 Other Related Loan Covenants

1 Established, Staffed and Operating PMU/PIU As the Project Executing Agency, UADD shall be responsible for the execution of the Project.

Para 1.

UADD 2005 Complied.

2 Fielding of Consultants: UADD shall maintain the Project Management Unit (PMU), which shall be responsible for coordination and management of the Project and which shall report to the Principal Secretary/Secretary, UADD. The PMU shall be led by a fulltime Project Director who shall be charged exclusively with the execution of the Project and who shall have no other duties within UADD. There shall be at least one deputy project director (DPD) to be responsible for management and implementation of the urban infrastructure and services, overseeing and guiding the urban governance and institutional development by qualified and compliance with Loan covenants.

Para 2.

UADD 2005

Complied PMU is led by Project Director Complied




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UADD shall ensure that the PMU is staffed by qualified and experienced staff who shall be appointed as required throughout the period of Project implementation.

Complied

3 Project Implementation Units (PIU’s) The State shall ensure that a PIU is maintained in each Project City and the respective PIUs are headed by the Municipal Commissioner concerned and supported by full-time senior technical personal experienced in public health and environmental engineering. Each PIU shall comprise 3 sections:

(i) urban infrastructure and services; (ii) community awareness and

participation; and (iii) finance and administration.

Each PIU shall be staffed by qualified and experienced staff who shall be appointed as required throughout the period of Project implementation.

Para 3.

GoMP/ UADD/ ULB

2005 UADD has established PIU’s in each city to implement the project. PIU’s are working under the concerned Municipal Commissioner. PIU’s are headed by senior Engineers experienced in Public Health and Environmental Engineering. PIU’s staff consists of Water Supply, Waste Water and Civil Engs, Procurement Officer, Community Development Officer, Accounts Officer, Administrative Officer, supporting staff. The Total strength sanctioned is 70 officials in four PIU’s. In accordance with programme requirements, PIU’s are to be strengthened.

4 Empowered Committee The State shall cause an Empowered Committee to be established and shall delegate, or cause to be delegated, to the Empowered Committee appropriate authority to take decisions on matters related to the Project. The Empowered Committee shall consist of the Project Director as Member Secretary, the Chief Secretary (chair person), UADD, Public Health Engineering Department (PHED) and Finance Department of the State, and Commissioner of UADD. Other relevant officials may be invited as necessary. The State shall ensure that the Empowered Committee shall hold its first meeting within three months of the Effective Date and at least once every three months thereafter to review Project performance and take decisions on major issues including counterpart funding, implementation bottlenecks, land disputes, procurement and policy reforms.

Para 4.

GoMP/ UADD

2008 Empowered committee has been delegated powers of UADD, Finance Department and Public Health Engineering for the implementation of project. The issues requiring approval of State Cabinet will be referred there and for all other matters, the Empowered Committee has been delegated authority. Complied: EC convened on a regular basis. The EC is chaired by the Chief Secretary and consists of Principal Secretary UADD, Principal Secretary Finance, Principal Secretary Public Health Engineering, Commissioner Urban Administration and Development Department. Project director, UWSEIMP is the Member Secretary of Empowered Committee.

5 City Steering Committees The State shall ensure that each Project City Corporation establishes a City Steering Committees to monitor and guide the performance of the PIU. For each City Steering Committee, the Mayor of the Project City shall be the chair. The committee, under the chairmanship of the Mayor, shall comprise the Collector of the relevant District or his/her nominee,

Para 5.

GoMP/ UADD

2004 UADD vide order dated 8.06.04 has constituted Steering Committee in each town under Chairmanship of Divisional Commissioner. The Committee consists of Mayor, Collector, Commissioner Municipal Corporation, Leader of opposition in Municipal Corporation, Project Director UWSEIMP,




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representatives from PHED, the State Pollution Control Board, the State Electricity Board and four elected municipal counselors (including one women and one from a Scheduled Caste of Scheduled Tribe) of the respective ULBs. The State shall ensure that each City Steering Committee shall hold its first meeting within three months of the Effective Date, and at least once every three months thereafter.

Member Secretary Pollution Control Board, Member Secretary Chamber of Commerce MP, Active Social Woman worker nominated by chairman. The Steering Committees hold regular meetings.

6 Quarterly Progress Reports a) The State shall provide ADB with Quarterly Progress Reports on Project implementation. The PMU shall be responsible for obtaining and consolidating relevant information from the respective PIUs for the progress reports which shall provide: (i) a description of physical progress; (ii) details of any modification required to the Project

implementation schedule; (iii) problems encountered; (iv) use of AIF and CIF; (v) an outline of the work in the ensuring quarter; and (vi) summary financial accounts of the Project,

consisting of expenditure during the quarter, year-to-date expenditure during the quarter, year-to-date expenditure and expenditure to date.

Para 24a)

UADD 2005 to 2011

Complied: The Quarterly Progress Report is issued to ADB on a regular basis.

7 Project Completion Report b) The State shall ensure that the PMU shall submit to ADB within three months of the physical completion of the Project, a Project Completion Report that shall cover the details of Project implementation, costs, monitoring and evaluation activities and other information requested by ADB.

Para 24b)

GoMP/ UADD/ ULB

2011 Shall comply at the appropriate time.

Project Performance Three-Tier Reviews The State shall ensure that Project Performance shall be reviewed in a three-tier system comprising the reviews set out below.

Para 25.

GoMP/ UADD

Project review shall be according to the 3 tier system as suggested.

(a) The PMU shall review the progress on each component and the performance of each PIU in the first ten days of the month for the previous month’s performance. Based on this review and in consultation with the relevant DSC, the PMU shall suggest changes in the Project design and implementation or refer the issues to the Empowered Committee. The review report shall be sent to ADB, the Empowered Committee and the city-level Steering Committees for necessary action.

Para 25a)

UADD/ ULB

As per schedule

Monthly review being conducted.

8

(b) The Empowered Committee shall conduct the second tier review during each quarterly meeting. The proceedings of the review shall be circulated to ADB, UADD and Project City Corporations;

Para 25b)

UADD/ ULB

As per schedule

Scheduled quarterly meetings underway.




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(c) The State shall ensure that each Project City Corporation shall participate in the third tier review by ADB approximately every six months during Project implementation.

Para 25c)

UADD/ ULB

As per schedule

Project progress reviews being conducted by ADB.

9 Mid-Term Review In addition to reviews undertaken during Project Implementation, the Borrower and the State shall carry out a comprehensive Mid-Term Review approximately 24 months after the Effective Date to critically evaluate actual Project progress, implementation procedures, procurement methodology, public relations and community awareness, BME activities and the performance of the design and supervision consultants. The Borrower and the State shall ensure that ADB shall have the right to participate in the Mid-Term Review. Following the review, the Borrower and the State shall ensure that appropriate corrective action is taken.

Para 26.

UADD/ ULB

2008 Complied Review conducted by ADB: Gwalior 1st June 2009 Jabalpur – 2nd and 3rd June 2009 Indore – 4th and 5th June 2009 Bhopal – 6th to 8th June 2009 Complied

Project Performance Monitoring System (PPMS) The State shall ensure that the PMU shall establish a PPMS acceptable to ADB that monitors indicators including: (i) physical progress for infrastructure works; (ii) institutional development and capacity building;

impact assessment indicators.

Para 27.

UADD/ ULB

2008 According to revised Project Implementation Schedule: Appendix-3: Complied for Project Performance Monitoring System prepared in regular QPR and integrated in MIS. BME Consultant to monitor according to baseline indicators against programme sector deliverables and impact parameters.

The State shall ensure that the PMU shall conduct initial baseline physical and socio-economic surveys and submit a detailed implementation plan for monitoring performance and for preparing benchmark information for ADB’s review and concurrence within six months of the effective date.

UADD/ ULB

2008 Initial baseline physical and socio-economic surveys conducted by BME Consultant, according to the BME Plan, for which BME Reports submitted.

10

Thereafter, the PMU shall submit annual monitoring and evaluation reports to ADB throughout the Project implementation.

UADD/ ULB

2009 2011

Mid term monitoring is in process by BME Consultant. BME Consultant scheduled to conduct final monitoring



List of Appendices:

Appendix A-1: Implementation Schedule Progress Status: Bhopal Sheet 1 of 17 Gwalior Sheet 5 of 17 Jabalpur Sheet 9 of 17 Indore Sheet 13 of 17 Appendix A-2: AIF/CIF Implementation Schedule: Bhopal Sheet 1 of 13 Gwalior Sheet 4 of 13 Jabalpur Sheet 7 of 13 Indore Sheet 11 of 13 Appendix A-3: PIU Fund Utilization Statements Appendix B: EMP Environmental Compliance Status Bhopal Sheet 1 of 12 Gwalior Sheet 4 of 12 Jabalpur Sheet 7 of 12 Indore Sheet 10 of 12 Appendix C: Financial Statements:




APPENDIX A-1:

Implementation Schedule Progress Status

Bhopal ...................................................................Sheet 1 of 17 Gwalior ...................................................................Sheet 5 of 17 Jabalpur .................................................................Sheet 9 of 17 Indore ..................................................................Sheet 13 of 17



APPENDIX A-2:

AIF/CIF Implementation Schedule

Bhopal ...................................................................Sheet 1 of 13 Gwalior ...................................................................Sheet 4 of 13 Jabalpur .................................................................Sheet 7 of 13 Indore ..................................................................Sheet 11 of 13



APPENDIX-A-3:

PIU Fund Utilization Statements



APPENDIX-B:

EMP Environmental Compliance Status Bhopal .................................................Sheet 1 of 12 Gwalior.................................................Sheet 4 of 12 Jabalpur ...............................................Sheet 7 of 12 Indore.................................................Sheet 10 of 12



APPENDIX-C:

Financial Statements:




APPENDIX-D:

PMC Administration and Services Status



APPENDIX D PMC Administration and Finance Project Staff The PMU is being assisted by the Project Management Consultant (PMC), by Louis Berger Group Inc, effectively appointed on the 21st June 2005. Mobilization of the compliment of experts and support staff has been conducted according to the requirements of the programme and in compliance with their agreed mobilization schedule. To date, the PMC has completed 54.33 months of services, equivalent to 78.74% of elapsed time of the revised contracted period to Mar 2011, in assisting the PMU in all project related activities, including management, supervisory roles, monitoring and coordinating the works of the PIU’s and DSC’s, attached to the respective Municipal Corporations. In completion of the consultancy services, the PMC has expended a total of 601.48 person-months, inclusive of 373.42 person-months of support staff, which equates to an overall 77.61% of the total utilized contracted man-month output; refer to Table D-1. Consultant Staff Deployment Refer to Figure D-1, for the staff mobilization schedule, showing the staged introduction of staff during the elapsed time of the project to date. A summary of the person-months for the mobilization of the PMC staff, up to 31st December 2009, is given according to the individual international and domestic professional staff and the domestic support staff, as compared with the contracted person-month totals.

Documents

QUARTERLY PROGRESS REPORT (QPR 17) - projectuday.nic.inprojectuday.nic.in/SiteDoc/QRPDec09.pdf · Environmental Improvement Project (UWSEIP) in Madhya Pradesh, between the Government